ORGANIZATION AND MANAGEMENT

1ST QUARTER
Lesson 1: Nature and Concepts of Management

I. INTRODUCTION

In this Chapter, you will discover that all organizations – public or private, large, medium-size, or
small, profit or nonprofit - need good managers in order to accomplish their goals; that organizational
management is, definitely, not an easy task; and that coordination, efficiency, and effectiveness are required
to carry it out.

At the end of this lesson, the learners shall be able to:

1. Understand and explain the functions, types and theories of management.; and
2. Apply management theories and concepts in solving business cases.

The following e-learning platforms will be used as per teacher advice:

1. Edmodo;
2. Zoom;
3. Google meet; and
4. Messenger/messenger chat room.

“Good management is the art of making problems so interesting and their solutions so constructive that
everyone wants to get to work and deal with them.”
-Paul Hawken-

IV. ABSTRACTION

Management has always been attributed to the activities of an organization, specifically its day-to-
day operations. It consists of administrative job functions that require critical thinking and decision making. It
also entails responsibilities concerned not only with the people, resources, and processes within the
organization but also with outside factors such as the environment where the organization operates.

To further continue with our discussion, kindly look for the following articles and videos:

1. Meaning of management: https://www.youtube.com/watch?v=_OBqwhYLEJo

2. Functions of management:
3. Types of management:
4. Theories of management
https://www.youtube.com/watch?v=Cl4GhjSALsI
https://www.youtube.com/watch?v=6pVMERgxj84
https://www.youtube.com/watch?v=fK4tyKvrj04
https://www.youtube.com/watch?v=jAb9tABM9VE
https://www.youtube.com/watch?v=F2k018hctZQ
https://www.youtube.com/watch?v=CqWXxC1Xcj4
https://www.youtube.com/watch?v=uHL-l_Iz_sA
https://www.youtube.com/watch?v=lCbDRM1IvZY

Meaning of Management

Management may be defined as the achievement of organizational objectives through people and
its resources. Management is a science as well as an art. It is a body of knowledge whose ideas and principles
have become the basis of organizational frameworks employed by many businesses. It is considered as
science because it evolved from a number theory that involved extensive studies and experiments. However,
many management experts point out that management is not an exact science like mathematics. Despite the
accuracy of data from statistics, the use of mathematical tools is only one aspects of management. A good
manager must be able to look at situations and use creativity and imagination in coming up with solutions to
problem. It is in this aspect that one can consider management as an art. Creativity and ingenuity are
important traits of managers that enable them to effectively and efficiently use business strategies, make
innovations that results in new product or services, and processes.

Effectiveness and Efficiency

Efficiency and effectiveness are closely related concepts that managers apply to render excellent
performance. A skillful balance between two defines the success or failure of a manager. Effectiveness is the
capacity to attain objective or result. It is often called “doing the right thing.” Meanwhile, efficiency is the ability
to maximize output with minimum input. It is often referred to as “doing things right,” and seeks to limit the
wasted input which is costly for a business.

Functions of Management

1. Planning is the process of establishing objectives and suitable courses of action before taking action.
2. Organizing is the process of arranging an organization’s structure and coordinating its managerial practices
and use of resources to achieve its goals.
3. Staffing refers to the recruiting, placing, training, and developing personnel.
4. Leading is the process of directing and influencing task-related activities of organization members.
5. Controlling is the process of monitoring actual organizational activities to see that they conform to planned
activities and correcting deviations or flaws.

Types of Management

1. Top Manager/ Senior Manager/ Upper Manager are responsible for the overall performance of the
organization. They formulate strategies, provides leadership, evaluate and shape the method of organizing,
and control direction of the organization in the effort to accomplish goals. Ex. Chief Executive Officer,
President, Chairman or Senior Vice President
2. Middle Manager are assigned to supervise specific units or departments and are highly-specialized in
managing the tasks and operations of their assigned units. They work with top managers and coordinate with
peers to develop and implement action plans to accomplish objectives. Ex. Dean of the University, Plant
Manager in Manufacturing firm, Branch Manager of a Trading firm.
3. Lower Level Manager/ Frontline Manager/ Supervisors are responsible for leading employees in the day-
to-day tasks and handle routine administrative tasks, which contribute to the organization’s goal. Ex.
Supervisor, Coordinator, and Office Manager.

Theories of Management

1. Scientific Management Theory by Frederick Winslow Taylor which studies the application of scientific
methods and principles for the purpose of redesigning the work process to increase efficiency. It emphasizes
the importance of labor in the production process and focuses on improving the efficiency of workers. Taylor
also introduces “The Four Principles of Scientific Management” as follows:

1. Replace rule-of-thumb methods with those that are scientifically proven.

2. Select, train and develop each worker based on scientific methods.

3. Cooperate with workers to ensure that scientific methods are being observed and implemented.

4. Divide work between managers and workers to ensure that managers apply the scientific

management principles in planning the tasks and workers apply the principles while performing the
tasks.

2. Administrative Management Theory by Henry Fayol 20th century which focuses on the overall management
of an organization, emphasizing the role of managers as administrators. He also identified Fourteen
Principles of Management.
 1. Division of work into specialized tasks, with specific duties and responsibilities given to individuals.

2. Authority of managers to delegate work and tasks to the employees. The employers, in turn, are

expected to comply and exercise their tasks responsibly.

3. Discipline where expectations should be clearly set and violators of rules must be punished.

4. Unity of command where an employee should only report to one supervisor.

5. Unity of direction which means that the efforts of the employees are guided toward the attainment
of organizational objectives.

6. Predominance of the General Interest of the organization over the individual interests of
employees.

7. Remuneration of the efforts of the employees which should be systematically.

8. Centralization where the roles of all employees are clarified, with emphasis on the distinction
between superior and subordinate roles.

9. Scalar Chain which means that communication should be open within the chain of command.

10. Order where the organization of jobs and materials must be practiced to maintain employee
commitment.

11. Equity which means that fairness and order must be practiced to maintain employee commitment.

12. Stability of Tenure of personnel to actively promote employee loyalty to the organization.

13. Initiative to encourage employees to act on their own in support of the organization’s objectives.

14. Esprit de Corps to promote teamwork and the unity of interest between the employees and the
management.

3. Human Relations Theory by Elton Mayo 1920s which focuses on the social element in the workplace and
considers the influence of interpersonal relationships, social conditioning, and group norms in determining
the performance of workers.

4. Quantitative Management Theory uses quantitative approach such as statistical analyses and computer
simulations to arrive at a management decision. The two main branches of quantitative management are
management science and operations management. Management science uses mathematics in problem
solving and decision making. It seeks to create ideal models that will be the basis for improved business
operation and processes. On the other hand, operations management seeks to apply ideas and models from
management science to the actual workplace in dealing with managerial situations.

5. Systems Theory explains how interrelated parts operate together to achieve a common purpose. It defines
an organization as a system which is composed of four elements: Inputs (materials and human resources),
Transformation process (technology/ managerial operations), Outputs (products/services), and Feedback
(reactions from the environment).

6. Contingency Theory by Fred Fiedler 1967 argues that universal theories cannot be applied to organizations
because each organization has unique characteristics and is confronted by varied problems and challenges.
Also, he states that performance is affected by internal and external factors. He also studied the relationship
between leadership and group effectiveness. Also, this theory states that the personality of a leader
determines how well he or she addresses situations in the workplace.

7. Quality Management Theory by William Edwards Deming 1950s emphasizes consistency in an

organization and minimal to no errors or defects in production. This ensures quality products and services
that results to high customer satisfaction and increased revenue. Managers and employees are both closely
involved in quality management.

VI. REFERENCES

Organization and Management by Cabrera, Altarejos and Riaz published by Vibal

Organization and Management for Senior High School by Cynthia A. Zarate published by C & E Publishing,
Inc.
Business Organization and management by Medina 2015 published by REX Book Store
Organization and Management 2016 by Payos, Espinoza, Zorilla published by REX Book Store