MABINI COLLEGES, INC.

Daet, Camarines Norte

COLLEGE OF BUSINESS ADMINISTRATION AND ACCOUNTANCY

1st Sem., S.Y.2022-2023

MNGT1 - PRINCIPLES OF MANAGEMENT

MODULE 2
Title: Nature and Concept of Management

Name of Student:
Course/ year: BSBA FM – 1St Year
Class Schedule: TTH – 2:30-4:00
Date Received:

Module Overview:

The study of management begins with presenting the basic principles and concepts
which give a common reference outline within which management is normally applied.
This module will help us learn the importance of studying management, its historical
development in the country, the influence of the manager’s philosophy and values, and the
effect of both internal and external factors.

Learning Outcomes

After completing this module, students must have:

 Understand the significance of studying management; and
 Knowledge of managers goals in the business.

LECTURE NOTES
READ THIS…

Significance of Studying Management

 it will develop 3 skills innate in you

o technical skills – expertise in a particular area (marketing, accounting, finance,
human resources)
o human skills – abilities in getting along with people, leadership, helping others to be
motivated, proper communication and giving conflict resolution.
o conceptual skills – ability to think about complex issues (distinguish who will be
promoted, who will be given high raise, who will be transferred to other divisions, etc)
 it may improve your job satisfaction
o helps you better understand your own manager
o makes your work less stressful and more enjoyable
 it is needed in all types of organizations
 o helps you better understand how various level of organizations are managed
 first line supervisors – manage the work of members involved in the actual
productions or creation of products and services
 middle managers – manage the work of first line supervisors and others
 top managers – these are the CEO’s, COO’s, VP’s, board’s, etc
 it enables self-understanding
o helps us understand the organizational and social forces that influence who we are;
o who shape us as persons and as member of societies
o because management is dealing with people, their values and personal development
and moral concerns

What is Management?
Management
 The process of achieving company goals effectively and efficiently by engaging in the five
major functions of planning, organizing, staffing, directing and controlling of company’s
resources.
o There are different activities that make up a management process;
o And these are performed to accomplish organizational goals;

o And they are performed by men with the help of other resources
 The 6 m's (men, money, materials, machines, methods, market) will undergo
the fundamental functions / activities of management that will give us result
profit with social responsibility
 Universally Accepted Functions of Management

 Planning
o Why do we need to plan? We plan because we have objectives and goals to reach
o Formulation of objectives, programs, policies, procedures, rules and regulations, in
order to achieve the goals of the business
o Related to decision-making
o It involves forecasting (making decisions in advance)
o it also means identifying organizational goals and strategies and allocating
appropriate organizational resources required to achieve them
 Organizing
o Grouping together of people, establishing relationship among them, defining the
authority and responsibility to determine predetermined goals and objectives
o Identification or grouping of work to be done, delegation of authority and
responsibility
o Involves establishing an intentional structure of roles for men to fill in an enterprise
 o Making sure that all the tasks necessary to accomplish goals are assigned to men
who can do them best
 Staffing
o means filling and keeping filled with positions provided in the organizational
structures
o It outlines manpower requirements for the job to be done
o It includes recruiting, selecting candidates for the position, compensation and training
o Or developing current job holders to accomplish their tasks effectively
 Directing
o Has to do with the predominantly interpersonal aspect of managing
o Means relating with others so that their work efforts result in the achievement of
organizational goals
o This area of management function involves motivation, leadership styles and
approaches and communication
 Controlling
o Ensuring that the actions of members are consistent with the organizations’ values
and standards
o The process of measuring and correcting the activities of subordinates to assure it is
in line to plans
o It measures performance against goals and plans
o It shows where negative deviations exist and by actions to correct deviations and
help assure the success of plans
o If abnormal deviations persist, correction is indicated (locating the person who is
responsible for negative deviations from planned actions and then taking the
necessary steps to improve performance)

NOTE:
 Proper Coordination is the core of being a manager to achieve a harmonious working
environment among individual toward the accomplishment of goals
 Coordination as separate function of management;
o it is regard as the essence of being a manager (the achievement of harmony of
individual efforts toward the accomplishment of goals is the purpose of managing);
o each function is an exercise of contributing to coordination

Management At Different Level Of Organization

 All managers, executives, administrators, supervisors have no basic distinction in
performing the functions of management; all of them plan, organize, staff, direct, and
control.
 All of them want results
 All of them carry out managerial functions whether they are first-line supervisors, middle or
top managers of an enterprise

 To reiterate; All managers, executives, administrators, supervisors has no basic

distinction in performing the functions of management; all of them plan, organize, staff,
direct, and control EXCEPT the TIME SPENT in performing those functions.
o top managers spend more time in planning and organizing than lower managers;
o leading on the other hand takes more time in first line supervisors
o there’s no slight difference in time spent in staffing and controlling at all levels

Objectives Of Management
  Getting maximum results with minimum efforts – The main objectives of the
management is to secure maximum outputs with minimum efforts and resources.
Management is basically concerned with thinking and utilizing human, materials and
financial resources in such a manner that would result in best combination. This
combination results in reduction of various costs.
 Increasing the efficiency of factors of production – Through proper utilization of
various factors of production, their efficiency can be increased to a great extent which
can be obtained by reducing spoilage, wastages and breakage of all kinds, this in turn
leads to saving of time, effort and money which is essential for the growth and prosperity
of the enterprise.
 Maximum prosperity for employer and employees – Management ensures smooth and
coordinated functioning of the enterprise. This in turn helps in providing maximum
benefits to the employee in the shape of good working condition, suitable wage system,
incentive plans on the one hand and higher profits to the employer on the other hand.
 Human betterment and social justice – Management serves as a toll for the upliftment
as well as betterment of the society. Through increased productivity and employment,
management ensures better standards of living for the society. It provides justice
through its uniform policies.

Goals Of All Managers

 Surplus
o It is something that remains above what is used or needed
o the logical and desirable aim of all managers in all kinds of organization;
o must establish an environment in which people can accomplish goals with the least
amount of time, money, materials which they can achieve as much as possible of a
desired goal with available resources
 Productive
o means effectively performing the basic managerial and non-managerial activities
o as the output-input ratio within a period with due consideration for quality
 increasing outputs with the same input,
 decreasing inputs but maintaining same output,
 increasing output with decreasing input
 Effective and Efficient
o Effectiveness
 is achievement of objectives
 means choosing the right overarching (all embracing, comprehensive,
complete) organizational goals to pursue and draws attention to the fact that
as a manager, like anyone who makes decisions has also moral obligations
 doing the right things
 deals with the issue of which goals an organization should pursue
o Efficiency
 is the achievement of the objectives with the least amount of resources?
 means maximizing outputs while minimizing inputs
 doing the things right
 focuses on how to achieve those goals with the minimum expenditure of
resources
o Examples:
 ensuring that these functions are performed effectively and efficiently
 business
 o maximizing profitability – making profit with least expenses
incurred
o maximizing shareholder’s wealth – increasing the value of
company as a whole in the interest of stockholder (e.g a stock
@ P10; making it @ P55 in 5 years)
 government - may mean serving the public timely