Understanding Management

Functions and the Firm’s

Environment
MODULE 1
 Linda has been working with Axiom Merchandise Inc. for the
past five years as a market researcher. Mr. Reyes, the vice
president for Marketing Department, carefully noted her
exemplary work performance over the past years. Mr. Reyes
thinks that he should promote Linda as marketing manager for
their department. He told Linda of his plans to nominate her as
manager. He also asked her if she would be willing to accept it.
Linda became agitated and anxious about the news. While
she has performed well in her current job, deep inside, Linda feels
that she is not prepared to handle the role and responsibilities of a
manager. She had no prior experience being a manger She found
herself pondering hard over these questions, “Shall I accept the
managerial position? What do I know about being a manager?”

• Question: Is Linda’s career dilemma justified?

 THE MANAGER

• What is the role of the manager?

• What are the different managerial levels?
• What are the skills required of managers?
• What are the three types of roles managers
play in an organization?
 DIFFERENT MANAGERIAL LEVELS &
SKILLS REQUIRED

TOP CONCEPTUAL
MANAGERS SKILLS
INTERPERSONAL
MIDDLE SKILLS
MANAGERS
TECHNICAL
LOWER-LEVEL SKILLS
MANAGERS
 ROLES THAT MANAGERS PLAY

INTERPERSONAL INFORMATIONAL DECISIONAL

Figurehead Monitor Entrepreneur

Leader Disseminator Disturbance

handler
Liaison Spokesperson Resource allocator

Negotiator
. . .is the process of planning, organizing,
leading, and controlling resources to achieve
specific objectives.
 PLANNING

• Setting of goals
• Establishing strategies
• Developing plans to coordinate activities
• . . .the process of identifying the objectives of a
task, assignment, or cause and the corresponding
activities to achieve those objectives
 S.M.A.R.T. OBJECTIVES

Specific – The objectives should be in a form of sufficient

details such as in terms of quantity and quality
Measurable – The objectives can be assessed and verified
through objective performance indicators
Attainable – The objectives can be achieved by finding your
own ways or strategies
Realistic – The objectives can be accomplished given the
current and planned level of resources that you have.
Time-bound – The objectives can be accomplished within a
definite period of time.
 EXAMPLE – SMART OBJECTIVES

To achieve sales of Php 85,470,000 by end of 2017

with a 17% increase thereafter from 2018 to 2019.
To achieve a net profit rate of at least 12% by end
of 2017, 20% in 2018, and 30% in 2019.
To reduce Direct Costs, Administrative Expenses,
and Operating Expenses each by at least 5% by end
of 2017.
 A WORK PLAN

• A work plan is a visual planning tool in a form

of a summary table which usually contains the
following information:
• (1) The objectives
• (2) The corresponding activities to accomplish
the given objectives
• (3) the persons responsible for doing the
identified activities
• (4) the time frame to accomplish each of
the activities, and
• (5) the resources needed
 ORGANIZING

• Determining what needs to be done

• Determining the resources required
• Determining how it will be done
• . . .gathering the resources required to
carry out the activities and allocating the
effective and efficient use of those
resources.
 LEADING

• Motivating, leading, and any other actions

involved in dealing with people.
 LEADING

Influencing other people to perform the way you

wish them to;
Directing other people to achieve the desired
objectives;
Coordinating the proper implementation of
activities;
Communicating effectively across various groups;
Motivating individuals to perform their best
 CONTROLLING

• Monitoring activities to ensure that they

are accomplished as planned.
 MANAGERS ARE CONCERNED WITH
EFFECTIVENESS & EFFICIENCY
EFFICIENCY EFFECTIVENESS
(MEANS) (MEANS)

RESOURCE GOAL
USAGE ATTAINMENT

LOW WASTE HIGH ATTAINMENT

MANAGEMENT STRIVES FOR:

LOW RESOURCE WASTE (HIGH EFFICIENCY)
HIGH GOAL ATTAINMENT (HIGH EFFECTIVENESS)