DEFINITION, FUNCTIONS, TYPESand

THEORIES of MANAGEMENT

LESSON 1
DEFINITIONS OF MANAGEMENT
● Management is a process of planning, decision making, organizing,
leading, motivating, and controlling the human resources, financial,
physical, and information resources of an organization to reach its
goals efficiently and effectively. (iEduNote, n.d.)
● Management is a non-stop process of ensuring continuity and growth
within an organization.

FUNCTIONS OF MANAGEMENT

a. Planning- Involves determining the organization’s goals or performance

objectives, defining strategic actions that must be done to accomplish
them, and developing coordination and integration activities.
b. Organizing-Demands assigning tasks, setting aside funds, and bringing
harmonious relations among the individual and workgroup or teams in
the organization.
c. Staffing- Indicates filling in the different job positions in the organization’s
structure; the factors that influence this function include the size of the
organization, types of jobs, number of individuals to be recruited, and
some internal or external pressures.
d. Leading/Directing- Entails influencing or motivating subordinates to do
their best so that they would be able to help the organization’s
endeavor to attain their set goals.
e. Controlling-Involves evaluating and, if necessary, correcting the
performance of the individuals or workgroups or teams to ensure that
 they are all working toward the previously set goals and plans of the
organization.

Business environments are battlefields and business organizations are

engaged in combat. Due to rising competition, changes in the economic
environment, the Labor Union movement, improved productivity, and
implementations of new Business Laws, the business organization should
know how to handle this type of conflict. In order to adapt to the changing
times, we have to understand the beginnings of present-day management
practices.

MANAGEMENT FUNCTIONS

Activity: Given the diagram below supply 2 keywords you have understood
from each of the functions:
TYPES OF MANAGEMENT
Web references and other books present different management types
but what they have in common are four common categories which are
discussed below.

1. Autocratic
This management type is a one-way leadership where there is a single
authority. Team members are only there to follow orders.

The employees are given rewards for a job well done but are given
punishment if they fail.

This management style is beneficial in times of crisis that need immediate

attention. On the other hand, it causes the staff to fear. They need to be
closely supervised and a poor relationship would be evident among the team.

2. Persuasive
The manager has a strong and centralized controlling business decisions
like the autocratic type of management. What differs is that in a persuasive
type, the manager convenes with his colleagues before he decides.
Employees are motivated not anymore by rewards and punishment but by
persuasive techniques.

3. Consultative
In a consultative style, leaders and workers have two-way
communication. Team members share their opinion in solving issues of the
company. Consequently, the practice is costly, slow in decision making and
important changes are delayed.

4. Participative
There is a distribution of authority and power in participative
management. The company’s project is a shared responsibility and each
member has self-direction.
THEORIES OF MANAGEMENT
A. Scientific Management Theory
This management theory makes use of the step-by-step, scientific
methods for finding the single best way for doing a job. Frederic W.
Taylor, the Father of Scientific Management, is the proponent of this
theory.

Taylor’s Scientific Management Principles are as follows:

1. Develop a science for each element of an individual’s work to
replace the old rule of thumb method.
2. Scientifically select then train, teach and develop the workers.
3. Heartily cooperate with the workers to ensure that all work is done
following the principles of the science that has been developed; and
4. Divide work and responsibility almost equally between management
and workers.
B. Henri Fayol’s General Administrative Theory
This theory concentrates on the manager’s functions and what makes
up good practice or implementation. Henri Fayol is the contributor of this
theory who believes that management is an activity that all organizations must
practice and view it as separate from all other organizational activities such as
marketing, finance, research and development, and others.

Principles of Fayol’s Management Theory

1. Work division or specialization- according to this principle, the whole
work is divided into small tasks. The specialization of the workforce
according to the skills of a person, creating specific personal and
professional development within the labor force, and therefore
increasing productivity, leads to specialization which increases the
efficiency of labor. By separating a small part of work, the worker’s
speed and accuracy in his/her performance increases. This principle
applies to both technical as well as managerial work.
2. Authority and Responsibility- This refers to the issue of commands
followed by responsibility for their consequences. Authority means the
right of a superior to give enhanced order to his subordinates;
responsibility means an obligation for performance. This principle
suggests that there must be parity between authority and responsibility.
They are co-existent and go together, and are two sides of the same
coin, and the authority must be commensurate with responsibility.
3. Discipline- Refers to obedience, proper conduct in relation to others,
respect of authority etc. It is essential for the smooth functioning of all
organizations. This will also help shape the culture inside the organization.
4. Unity of command- States that each subordinate should receive orders
and be accountable to one superior. If an employee receives orders
from more than one superior, it is likely to create confusion and conflict.
Unity of Command also makes it easier to fix responsibility for mistakes.
5. Unity of Direction- All those working in the same line of activity must
understand and pursue the same objectives. All related activities should
be put under one group, there should be one plan of action for them,
and they should be under the control of one manager.
6. Subordination of individual interest to general interest- The management
must put aside personal considerations and put company objectives
first. Therefore the interests of goals of the organization must prevail over
the personal interests of individuals.
7. Remuneration/Pay – Workers must be paid sufficiently as this is a chief
motivation of employees and therefore greatly influence productivity.
The quantum and methods of remuneration payable should be fair,
reasonable, and rewarding of effort. Remuneration is paid to worker as
per their capacity and productivity. The main objective of an
organization is to maximize net profit and wealth of the company.
8. Centralization- The amount of power wielded with the central
management depends on company size. Centralization implies the
concentration of decision-making authority at the top management.
Sharing of authority with lower levels is called decentralization.
9. Scalar chain of authority- Refers to the chain of superiors ranging from
top management to the lowest rank. The principle that there should be
a clear line of authority from top to bottom linking all mangers at all
levels. It is considered a chain of command. However, there is a concept
called a “gang plank” in which a subordinate may contact a superior in
case of an emergency, defying the hierarchy of control. In this event,
the immediate superiors must be informed about the matter.
10. Maintenance of order- Social order ensures the fluid operation of a
company through authoritative procedure. Material order ensures
safety and efficiency in the workplace. Orders should be acceptable
and under the rules of the company.
11. Equity/Fairness- employees must be treated kindly, and justice must be
enacted to ensure a just workplace. Managers should be fair and
impartial when dealing with employees, giving equal attention toward
all employees.
12. Stability/security of tenure of workers- The period of service should not
be too short and employees should not be moved from positions
frequently. An employee cannot render useful service if he or she is
removed before he/she becomes accustomed to the work assigned to
him/her.
 13. Employee Initiative- Using the initiative of employees can add strength
and new ideas to an organization. Initiative on the part of employees is
a source of strength for an organization because it provides new and
better ideas. Employees are likely to take greater interest in the functions
of the organization.
14. Promotion of team spirit or esprit de corps- Refers to the need of mangers
to ensure and develop morale in the workplace individually and as a
group. Team spirit helps develop an atmosphere of mutual trust and
understanding. Team spirit helps finish the task on time.
C. Weber’s Bureaucracy
Max Weber, A German Sociologist wrote in the early 1900s that ideal
organizations specially the large ones, must have authority structures and
coordination with others based on what he referred to as bureaucracy.
According to Weber, bureaucracy is an organizational form distinguished
by the following components:
1. Division of labor
2. Hierarchical identification of job positions
3. Detailed rules and regulations
4. Impersonal connections with one another

D. Organizational Behavior (OB) Approach

This involves the study of the conduct, demeanor, or action of people at
work. Research on behavior helps managers carry out their functions- leading,
team building, resolving conflict, and others. Robert Owen, Mary Parker Follett,
Hugo Munsterberg, and Chester Barnard were the early supporters of the OB
Approach. During the late 1700s, Owen noticed lamentable conditions in
workplaces and proposed ideal ways to improve the said conditions. Follett,
in the early 1900s, introduced the idea that individual or group behavior must
be considered in organization management. Likewise, in the early 1900s,
Munsterberg proposed the administration of psychological tests for the
selection of would be employee in companies. Barnard, in the 1930s,
suggested that cooperation is required in organizations since it is, mainly, a
social system.
I. What Have I Learned
The success of the company is the direct result of good management.
In order to do so, it is the manager’s responsibility to ensure that his/her actions
should be geared toward business growth and sustainability. Managers must
constantly review if he was able to follow the 5 functions that he/she is
expected or make necessary adjustments to correct immediately conflicts or
problems that arise in the business.

POST TEST:
A. Multiple Choice

Instructions: Write the letter of the correct answer in your activity notebook.

1. This is a management function which includes assigning tasks to various

individuals.

a. Planning b. Leading c. Staffing d. Controlling

2. This is a management function that involves choosing tasks that must be

performed to attain organizational goals, outlining how the tasks must be
performed and indicating when they should be performed.

a. Planning b. Leading c. Organizing d. Controlling

3. This is a management function which is also referred to as motivating and

directing.

a. Planning b. Leading c. Organizing d. Controlling

4. This is a management function where a manager’s role is to gather information

that measures performance of his subordinates and compare present
performance to pre-established norms.

a. Planning b. Leading c. Organizing d. Controlling

5. This is a one of the category of management style which leaders and workers
have a two-way communication and team members share their opinion in solving
issues of the company.

a. Autocratic b. Persuasive c. Consultative d. Participative

6. Who is the Father of Scientific Management?.

a. Hugo Munsterberg b. Henri Fayol c. Frederick Taylor d. Max Weber

7. What is the guiding principle of scientific management found among the
choices below?

a. Rule of thumb

b. Freedom of association

c. Fluid working relationships

d. Scientifically select then train, teach and develop the workers

8. Which feature does not form one of Fayol's 14 principles of management?

a. Esprit de corps b. Initiative c. Order d. individualism

9. What management theory which involves the study of the conduct, demeanor,
or action of people at work?

a. General Administrative Theory

b. Organizational Behavior (OB) Approach

c. Scientific Management Theory

d. Henri Fayol’s General Administrative Theory

10. What management theory believes that each organization is unique as to

marketing, finance, and others?

a. General Administrative Theory

b. Organizational Behavior (OB) Approach

c. Scientific Management Theory

d. Henri Fayol’s General Administrative Theory

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