Management- process of planning, organizing,
leading, and controlling resources to achieve
specific objectives.
Four functions
> Planning- formal and well documented
-determining organizational goals and means for
achieving them
Work plan- visual planning tool in a form of
summary table
> Organizing- dealing where decisions will be
made
Effectiveness- doing the right things
Efficiency- doing things right
Effective- when you achieved your goal and have
produced the intended results
Efficient- when you achieved your goal and
minimized the cost of waste or used resources
>Leading- inspiring and motivating workers to
work hard
>Controlling- centers at monitoring progress
toward goal achievement and taking corrective
action when needed.
>Resources- people, time, money, material, etc.
SMART Objectives
> Specific – objectives should provide sufficient
details in terms of quality and quantity.
> Measurable – objectives can be assessed and
verified through objective performance
indicators.
> Attainable - objectives can be fulfilled by finding
effective ways and strategies.
> Realistic – objectives can be achieved given the
current level of available resources at hand.
> Time-Bound – objectives can be accomplished
within a specific time period.
Perspectives of Management
> Investment Perspective – deriving an expected
economic return or material benefit
> Ethical Perspective – examining whether a
desired objective is morally right or wrong
> Individual Fulfillment Perspective – looks on
how an organization seeks to satisfy the needs of
employees and develop their full capabilities
> Mainstream Perspective – focuses on the
traditional, materialist, and individualistic view of
management; emphasis is maximizing
profitability, productivity, and competitiveness.
> Multistream Perspective – focuses on balanced
view of management by taking into account the
multiple forms of well-being for multiple
stakeholders; emphasizes corporate social
responsibility, dignification of work, fairness in
dealings, and people’s participation.
Management Theory
Classical Management Theories
> Scientific Management
- Frederick W. Taylor “Father of Principles of
Scientific Management”
- studying and testing different work methods to
identify most efficient wat to complete a job.
- First Principle: develop a scientific management
of a man’s work.
- Second Principle: right workers at the right job.
- Third Principle: concentrates on cooperation.
- Fourth Principle: equal distribution and division
of work and responsibility
> The 14th Principles of Management or
Administrative Principle
- Henri Fayol “Father of Administrative Principles”
- believes that success of an enterprise generally
depends much more on the administrative ability
of its leaders than on their technical ability.
1. Division of work – increase production by
dividing work.
2. Authority – right to give orders; have the
power and control but don’t abuse it; big
responsibility.
3. Discipline – clearly defined rules and
procedures to ensure order and proper behavior
4. Unity of Command – to avoid confusion and
conflict, each employee should report and
receive orders from just one boss.
5. Centralization - Strike a balance depending on
the circumstances and employees involved; a
place for everyone and everyone on its place.
6. Unity of Direction - One person and one plan
should be used in deciding the activities to be
used to accomplish each organizational objective
7. Subordination of Individual Interest -
Employees must put the organization’s interests
and goals before their own.
8. Scalar Chain - each position is part of a vertical
chain of authority in which each worker reports
to just one boss
9. Remuneration - Compensation should be fair
and satisfactory to both the employees and the
organization.
10. Order - there should be no overlapping
responsibilities
11. Initiative - great source of strength for
business; the ability to develop and implement a
plan.
12. Stability of Tenure of Personnel - Low
turnover, meaning a stable work force with high
tenure.
13. Equity - Kind, fair and just treatment for all
will develop devotion and loyalty.
14. Esprit de Corps - strong sense of morale and
unity among workers.
> Bureaucracy
- Max Weber “Father of Principle of Bureaucracy”
- reiterates the exercise of control, to avoid
corruption.
Behavioral Management Theories
> Hawthorne Studies
- Elton Mayo “Forerunner of the Behavioral
Movement in Management”
- focuses on the social nature of works groups;
believes that if the employees are being watched
they tend to be more productive.
> The Cooperative Systems
- Chester Bernard “Forerunner of the Cooperative
Systems Theory”
- people’s needs must be met, encourage workers
to perform their best
> Theory X and Theory Y
- Douglas Mcgregor “Developer of the Theory X
and Theory Y for Managing People”
Theory X – authoritarian management style
Theory Y – participative management style
> Hierarchy of Human Needs
- Abraham Maslow
“Father of the Theory on the Hierarchy of Human
Needs
Progression Of Five Human Needs
1. Physiological needs – most basic survival
needs.
2. Safety needs – protection from violence and
theft; emotional stability; health and financial
security.
3. Love and belonging needs – friendship and
family bonds.
4. Esteem needs – self-respect and self-esteem.
5. Self-actualization needs – education, skill
development, caring for others.
> Theory of Adult Personality
- Chris Argyris
“Developer of the Theory of Adult Personality”
- Maturation of an immature person.
1. Passive to Active
2. Dependent to Independent
3. Being Adaptable
4. Informal and Shallow Interests to Deeper and
Stronger Interests
5. Perspective of Time
6. Subordinate Positions to Control or Superior
Positions
7. More Aware in the Control of “Me”
Modern Management Theories
> Quantitative Analysis and Tools
- Analyze if its measurable and verifiable.
> Total Quality Management
- William Edwards Deming “Father of the Quality
Management”
- continuous improvement; improve the quality
of management; holistic quality.
> Plan-Control-Improve
- Joseph Juran “Father of the Quality Principle of
Plan-Control-Improve”
Juran Trilogy
- Quality planning– creation of something new
- Quality control – assess the disadvantages and
advantages.
- Quality Improvement – revise, reanalyze
> Knowledge Management
- Peter Drucker “Father of Modern Management”
- importance of intellectual capital to competitive
advantage; knowledge workers are in charged of
innovation and can manipulate ideas.
> The Learning Organization
- Peter Senge
- The capacity to learn, continuous learning and
improvement of organizational members.
> Evidence-Based Management
- Jeffrey Pfeffer “Developer of the Evidence-Based
Management”
- Robert Sutton
- Based on latest information; focuses on the
latest and best knowledge; focus on meaningful
research management insights and report of case
studies.
> Competitive Strategy
- Michael Porter “Father of Competitive Strategy”
1. Cost Leadership – maximum no. of outputs
using minimum resources.
2. Differentiation – create unique products or
services that makes you stand out.
3. Market Segmentation – targeted audience or
consumers.
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Managerial Roles
>TOP MANAGERS (CEO, COO, CFO, CIO)
- executives responsible for the overall direction
of the organization.
CEO- Chief Executive Officer
COO- Chief Operating Officer
CFO- Chief Financial Officer
CIO- Chief Information Officer
1. Change – thinking and working innovatively.
2.Commitment – earn the loyalty and
commitment of employees for them to work
responsibly.
3. Culture and Environment – must create a
positive environment; be transparent to
employees.
> MIDDLE MANAGERS
(General, Plant, Regional, Divisional Managers)
- managers responsible for setting objectives
consistent with top management’s goals and for
planning and implementing subunit strategies for
achieving these objectives.
1. Resources – to plan and allocate resources
2. Coordination – duty to link groups; to ensure
smooth transaction between organizations.
3. Subunit Performance – monitor and manage
the performance of subunits.
4. Strategy Implementation – implementation of
technical works of employees.
> First-Level Supervisors
(Office manager, shift supervisor, department
manager)
- managers who train and supervise the
performance of non-managerial employees who
are directly responsible for producing the
company’s products or services.
1. Non-Managerial Worker Supervision – they
encourage, monitor, and recognize works of
employees.
2. Teaching and Training – guides first entry
employees.
3. Scheduling – make detailed schedules.
Different Roles of Managers
> Interpersonal Roles
1. Figurehead Role – to pioneer or present the
company.
2. Leader Role – motivate and encourage
workers.
3. Liaison Role – deal with people outside their
units.
> Informational Roles
1. Monitor Role – gather/scan information for the
company.
2. Disseminator Role – spread/share information
with others inside the company.
3. Spokesperson Role – share information outside
the company.
> Decisional Roles
1. Entrepreneur Role – think innovatively and
adheres adaptation.
2. Disturbance Handler Role – respond to
problems that demands immediate action.
3. Resource Allocator Role – decides how many
resources are needed and who gets what
resources.
4. Negotiator Role – negotiate schedules; talking
it out and compromising.
What does it take to be a manager
> Technical Skills – concentrates on the
knowledge or expertise and techniques of a
worker.
> Human Skills – ability to work well with others
inside or outside the organization.
> Conceptual Skills - ability to see the
organization as a whole; must be smart in
handling problems.
Steps in Doing PEST:
1. Know the History of the product
2. Finding Political Information
3. Finding Economic Information
4. Finding Social Information
5. Finding Technological Information
Steps in Doing SWOT:
1. Determine and Set Objectives
2. Gather Resources
3. Compile Ideas
4. Analyze Internal and External Factors
5. Refine Finding or cleaning up of ideas
6. Develop Strategies
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Porter’s Five Forces Model (Michael E.
Porter, 1979):
> Competitors – focuses on the rivalry among
existing firms.
Higher the no. of competitors, lower the power
that they acquire.
> Suppliers (Producers) – focuses on the
bargaining power of suppliers.
Lower the no. of suppliers, higher the level of
dependence of buyers.
> Buyers (Consumers) - focuses on the bargaining
power of buyers.
Higher the no. of clients, lower the power of
supplier to negotiate.
> Potential Entrants – threat of new entrants.
> Substitutes – threat of new substitute product
or services.
Nature, Level, and Types of Planning
Types of Plans:
> Long-Range Plans vs. Short-Range Plans
Long-Range Plans – look at 3 or more years into
the future.
Short-Range Plans – cover a period of 1 year or
less.
> Standing Plans vs. Single-Use Plans
Standing Plans – used for situations that occur
repeatedly.
Single-Use Plans – used to achieve a unique one-
time business goal.
Standing Plans Form:
a. Policy – general or broad guidelines from top
management to lower management.
Operational Plans Form:
a. Rule – more specific guide to actions.
b. SOP (Standard Operating System) – series of
actions to be followed.
Planning at Different Levels:
> Strategic Planning – developed by the top
management, defining strategy or direction.

STEPS:
1. Determine Strategic Position
2. Prioritize Objectives
3. Develop a Plan
4. Execute and manage the plan
5. Review and revise the plan

- Vision: compelling future scenario desired for

the company. It should be BHAG.
BOLD – sets high standard for what is ideal
HAIRY – compels highest level of imagination and
creativity.
AUDACIOUS – exudes utmost courage.
GOAL-ORIENTED – sets a clear direction.
- Mission: guiding purpose of the company.
- Values: strong character and ideal qualities of
the organizational members. Character as a
whole.

> Functional Planning – also called tactical plans,

over-all strategy, detailed version of strategic
plan. developed at the middle and supervisory
levels.