Republic of the Philippines

Department of Education
SHS
Region V
SCHOOLS DIVISION OF SORSOGON
CASTILLA CLUSTER

ORGANIZATION AND
LEARNING ACTIVITYMANAGEMENT
SHEET NUMBER 1, QUARTER 1
Definition and Functions of Management and the Different Types of
Management Theories

Name of Student: Parent’s Signature:

Grade and Section:

I. INTRODUCTORY CONCEPT
This learner’s packet explains the meaning of management and the different
functions that a manager and an employee observe and exercise in the
organization. Further, it discusses the different theories that evolves and still used
by companies even to the present days.

II. LEARNING COMPETENCY FROM MELC

Explain the meaning, functions, types and theories of management.

ABM_AOMII-Ia-b1-2

1. Discuss the meaning and functions of management and

2. Explain the various types of management theories.

III. ACTIVITIES

A. Let Us Review

Let us dig in to your prior knowledge about management and see what you already
know by answering the questions below.

Directions: Choose your answer from the options given below. Write the letter of
your answer on your answer sheet.

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 a. Staffing
b. Neo Classical Theory c. Controlling
d. Directing e. Planning f. Organizing
g. Management
h. Modern Management Theory

1. This deals with the monitoring of the company’s progress and using
corrective measures if necessary.

2. It involves mapping out how to realize a specific goal.

3. It involves manning in the organization.

4. Focuses on handling of people tactfully.

5. This determines what, who and how task is to be done.

6. This deals with the complexity and the relationship of organizations,

workers, and environment.

7. Believes that the best way toward gaining maximum productivity

is through motivation, structure and supporting employers.

Now check your answers using the Answer Key.

B. Let Us Study

Consider the following terms below…

Management – is handling of people tactfully and the consolidation of their efforts

and activities in the organization.

Organization – is a group of people who work together in an organized way for a

shared purpose/common good.

Planning – involves mapping out of exactly how to realize a specific goal.

Organizing – determines what tasks have to be done, who needs to do the task
and how the tasks are to be performed.

Staffing – involves thorough recruitment, selection, and hiring of potential

personnel in the organization.
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Directing – involves the supervision and motivation of manager towards his/her
employees to be more productive and efficient.

Controlling – deals with monitoring the company’s progress and ensuring that all
other functions are operating efficiently.

Classical Theory – is the oldest theory which gives emphasis on the economic
rationality of people that through their efforts yield greatest monetary benefits or
income.

Neo-Classical Theory – believes that the best way toward gaining maximum
productivity from workers is through motivation, structure and supporting
employers, workers intrinsic values in their job and positive social relationship.

Modern Management Theory – focus on the interaction between organization,

workers, and the environment. The application of management knowledge is
extended to non-business areas like Education, government, health care and
others.

WHAT IS MANAGEMENT?

MANAGEMENT comes from Italian word MANEGGIARE, which means “to

handle (tool or equipment). Mannegiare derives from Latin words Manus which
means “hand” and Agere which is “to act”

Management of people has already been observed and has long existed as
there were already groups of people in every community even before. This setup gives
different perspectives or ideas on how management is defined. Management is
defined as handling of people tactfully and consolidating their efforts and activity in
the organization. But according to Theo Heimann management can be defined in
three ways:

1. Management as a noun, is used as singular collective noun (like group) which

refers to a discrete nature of grouping of managers or people in charge of running a
company or organization.

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2. Management as a process, it refers to organizational process that includes
strategic planning, setting objectives, managing resources, deploying labor force,
financial assets and measuring results.

3. Management as a discipline, this refers to that branch of knowledge which is

connected to study of principles & practices of basic administration. It specifies
certain code of conduct to be followed by the manager and indicates various
methods of managing enterprise.

FUNCTIONS OF MANAGEMENT

1. PLANNING
This includes defining goals, establishing strategy, and developing plans to
coordinate activities. It involves mapping out exactly how to realize a specific goal. It
also requires knowledge to create, develop and analyze opportunities which is known
as strategic planning. There are two types of planning;
a.) Long range planning
b.) short range planning

2. ORGANIZING
This is also known as the backbone of management. It is the structure of the
organization which help determines what task to be done, who needs to do the task
and how the task is to be performed and for whom to report to after the task is
achieved.

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3. STAFFING
This involves manning in the organization. This requires recruitment,
thorough selection of applicants and hiring of potential employees for the
organization. It is also responsible for training and development of the employee to
be promoted, transferred, demoted or even be fired from the organization.

4. DIRECTING
This involves the supervision and motivation of manager towards his/her
employees to be more productive and efficient. When there is a high morale in the
organization, it usually has a significant impact on the performance and
productivity of the employees. Therefore, there is a need for the manager to
motivate employees, supervise, and direct them to be more effective and efficient at
work. Good communication is essential since this builds positive interpersonal
relationship from and among employees. Thus this can resolve conflicts that might
arise in the organization.

5. CONTROLLING
This deals with monitoring the company’s progress and ensuring that all
other functions are operating efficiently. Since this is the last stage, uncertain
situation usually arises that might disrupt the operation of the business. Therefore,
there is a need for the management to exercise corrective actions after thorough
assessment and evaluation.

C. Let Us Practice

Guide questions: (Write your answer in the space provided for.)

1. What do you understand about the term “management”?

2. As a student, how are you going to apply the concept of management

in the classroom?

1.

2.

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 Refer to the Answer Key. What is your score?

D. Let Us Remember

DIFFERENT THEORIES OF MANAGEMENT

A. The Classical Theories of Management

Classical Theory (1900 – 1920’s) is the oldest theory. This theory evolved in
response to the shift from handicraft to industrial production. The emphasis is on
the economic rationality of people and organizations, motivated by economic
incentives that through their efforts yield greatest monetary benefits or income.

Classical management theories come in the likes of:

Theorist Theory
Max Weber (1905) The Theory of Social and Economic Organization -
follows the principles of bureaucracy such as;
management by rules, employment are based on
technical qualification and other principles.
Frederick Taylor Principles of Scientific Management
(1911)
-proposed an objective and systematic method to identify
“the one best way” to do a job using scientific selection
and training methods; cooperation and clear division of
responsibility between managers and workers; pay for
performance.
Frederick Taylor Time and Motion Studies
(1912-1924) -The expected results are employee satisfaction,
productivity and efficiency.
Henry Gantt (1910- Project Scheduling or the Gantt Chart
1915) - a project scheduling model for increasing the efficiency
of project execution and completion.

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 Henry Fayol (1916) The Administrative School of Management -
emphasize that managers need specific roles in order to
manage work and workers. He enumerated 6
functions/roles of management the forecasting,
planning, organizing, commanding, coordinating and
controlling.

B. The Neo-Classical Theories of Management

Neo-classical theories believe that the best way toward gaining maximum
productivity from workers is through motivation, structure and supporting
employees, consider the worker’s intrinsic value in their jobs and having emphasis
in the positive impact of social relationship of worker productivity.

Under neo-classical theories, theorist focuses on human relations and behavior

of the employees.

Theorist Theory
Participative Leadership
- Workers and managers equally share power and
Mary Parker Follett
responsibility for decision making and therefore, their
outcomes.
The Hawthrone effect
Workers care about self-fulfillment, autonomy,
Hawthrone Studies empowerment, social status and personal relationaship
with co-workers and managers

Human Relation Theory of Management - People are

Elton Mayo / Fritz social being, motivated by social needs. The psychological
Roethlisberger needs of individual significantly impact group
performance.
The Function of the Executive
-proposed the acceptance theory of authority which

Chester Barbard organizational goals will be achieved and managerial

authority will be accepted if workers believe that their
individual needs are being meet.

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 Hierarchy of Needs Theory
-If motivation is driven by the existence of unsatisfied

Abraham Maslow needs, then it is worthwhile for a manager to understand

which needs are more important for individual
employees.
The Theory X and Theory Y
- Theory X states that workers inherently lazy, lack of
ambition and prefer to be directed rather than take
Douglas McGregor
responsibilities. While Theory Y workers seek out and
fulfil responsibilities of their own. They apply
ingenuity,
creativity and hard work to meet organizational goals.

C. The Modern Theories of Management

Dealing with complexity is the core of modern management theory. Focus is

on the interaction between Organizations, Workers, and Environment.

It is a synthesis of several theories such as, behavioral science, Mathematics,

statistics, operations / quantitative research and computing technologies.

Application of management knowledge is extended to non-business areas like

education, government, health care and others.

Theory Theorist
Ludwig Von Bertalanffy (1937)
General System
Theory - each part has a role to perform so the whole can
accomplish its purpose
Joan Woodward (1965)
- argued that technology and production system are
critical aspects of organizational design; advanced a
contingency approach to organizing
P. Lawrence / J.W. Lorsch (1967)
Contingency Theory
- suggested that successful organizations match their
structure to the nature of the environment
Daniel Katz / Robert Kahn (1966)

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 - present a unified, open systems approach extending
organizational theory beyond the boundaries of a
single organization.

Fred Edward Fiedler (1967)

-argued that leadership effectiveness is contingent
upon two interacting factors. Leadership style and
situational favourableness.

E. Let Us Practice More

Direction: Write True if you believe that the statement is correct and FALSE if
the statement is incorrect.

1. Management is on tactfully handling the machineries.

2. Management is process refers to discrete nature of groups of people
3. Controlling exercises corrective measures after thorough
monitoring and evaluation
4. Positive interpersonal relationship from the manager and
among employees is significant in the organization.
5. Planning creates and develop strategies and analyzes business.
6. Classical theory percieves that maximum productivity of
employees can be obtained through motivation, structure and supporting
employers.
7. The Oldest theory is the Neo-Classical theory where it involves
in response to the shift of handicraft to industrial production.

Refer to the Answer Key. What is your score?

E. Evaluation

Show that you learned something by doing this activity

Answer the question below on a WHOLE SHEET OF PAPER. This is your week
1 output.

1. How are you going to manage your time at home being productive even in this time
of pandemic? Specify the activities that you can do and how are you going to carry
on the tasks?

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IV. RUBRIC FOR SCORING

Rubric for Checking the Activity Output

Criteria Description Points
Content The content was well-thought of; the 20
question was thoroughly answered.
Organization The OUTPUT was well-written with 20
ideas easily conveyed to readers.
Development Points are thoroughly develop 10
Total 50

V. ANSWER KEY

Let Us Review

1. Controlling
2. Planning
3. Staffing
4. Management
5. Organizing
6. Modern Management Theory
7. Neo-Classical Theory

Let Us Practice

Teacher Check

Criteria for Rubric

Points Description
5 point Brief with clear and complete thoughts/idea
4 points Brief with clear thoughts/idea
3 points With ideas but not direct to its main point
2 points No concise idea

Let Us Practice More

1. False
2. False
3. True

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 4. True
5. True
6. False
7. False

Evaluation

Teacher’s Check

VI. REFERENCES

Organization and Management. Quarter 1 Module 1: Definition and Functions

of Management and the Different Types of Management Theories. Department
of Education, Region V Bicol Module Development Team.

Learner’s Packet Writer:

DON VELASCO PESONILA

Master Teacher I
San Rafael National High School-Castilla

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