DEFINITIONS OF MANAGEMENT
Management is a process of
planning, decision making,
organizingp, 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
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
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, andimplementations 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.
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
2. Authority and Responsibility-
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
3. Discipline- Refers to obedience,
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
ppersonal and professional
development within the labor
4. Unity of command-States that
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.
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
coexistent and go together, and
are two sides of the same coin,
and the authority must be
commensurate with
responsibility.
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.
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 1 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.
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:

13. Employee Initiative Using the 1. Division of labor

initiative of employees can add
strength and new ideas to an 2. Hierarchical identification of job
organization. Initiative on the positions
part of employees is a source of
strength for an organization
because it provides new and 3. Detailed rules and regulations
better ideas. Employees are
likely to take greater interest in
4. Impersonal connections with one
the functions of the
another
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
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.
 Manager Top-level Managers

- An individual engaged in - general or strategic

management activities is managers who focus on
called a manager long term organizational
concerns and emphasize
- Managers supervise,
the organization’s stability,
sustain, uphol, and assume
development, progress,
responsibility for the work
and overall efficiency and
of others in his or her
effectiveness.
workgroup , team,
department or that - They are also concerned
organization in general with the organization’s
- organizational success inter-relationships with
depend upon managers their external environment.
who practice optimal - Chief executive officers
utilization of their human (CEOs), chief operating
and material resources, and
officers (COOS), presidents,
who encourage high levels
and vice presidents are
of performance,
examples of top- level
effectiveness and efficiency
managers in big
among the individuals
corporations; they have
under their care.
authority over all other
Managerial Levels human resources of their
Solution/Way organization.
Maker
Top - Traditionally, top-level
– Level executives set the
Goal Setter (Strategic) company's general direction
Action by designing strategies and
Maker Middle Level by controlling various
resources.
(Tactical)
Middle Level Managers
Low Level
(Frontline) - Middle-level managers lead
frontline or lower-level
managers and are
accountable to top-level
management
- tactical managers in charge
of the organization's middle
levels or departments. They
formulate specific
objectives and activities
based on the strategic or
general goals and objectives
developed by top-level
managers.
- Their traditional role is to
act as go-betweens
between higher and lower
levels of the organization;
they announce and
interpret top management
priorities to human
resources in the middle
hierarchical level of the
company.
- It has been observed that
middle-level managers are
more aware of the
company's problems
compared to managers in
the higher level because of
their closer contacts with
customers, frontline
Categories Of Managerial Roles
managers, and other
According to Mintzberg
subordinates.
- To be an ideal middle-level
manager, one must be
creative so that they could
provide sound ideas
regarding operational skills
as well as problem-solving
skills that will help keep the
organization afloat.
Lower-Level Managers
- Lower-level managers are
also known as operational
managers and are
responsible for supervising
the organization's day-to-
day activities; they are the
bridges between
management and non-
management employees.
- Traditionally, they are
controlled and instructed by
top and middle-level
managers to follow their
orders in support of the
organization's major
strategy.
- Lately, however, their role
has been expanded in some
large companies, as they
are now encouraged to be
more creative and intuitive
in the exercise of their
functions, so that they, too,
could contribute to their
company's progress
A. INTERPERSONAL
1. Figurehead
- As head of a department or
an organization, a manager
is expected to carry out
ceremonial and/or symbolic
duties.
- A manager represents the
company both internally
and externally in all matters
of formality (Mulder 2016).
2. Leader
- In this role, the manager
motivates his/her workers.
Managers communicate
with them, guide and
support them to develop a
positive work environment.
3. Liaison
- A manager serves as an
intermediary and a linking
pin between the high and
low levels.
- In addition, he develops and
maintains an external
network. As a networker, he
has external contacts and
he brings the right parties
together.
- This will ultimately result in
a positive contribution to
the organization (Mulder
2016).
B. INFORMATIONAL
1. Monitor
- As a monitor, the manager
gathers all internal and
external information that is
relevant to the organization.
- He is also responsible for
arranging, analyzing, and
assessing this information
so that he can easily identify
problems and opportunities
and identify changes.
2. Disseminator
- As a disseminator, the
manager transmits factual
information to his
subordinates and to other
people within the
organization (Mulder 2016).
Memorandums and other
important information are
well disseminated from top-
level up to the managerial
lower levels and vice versa.
3. Spokesperson
- In this role, managers
represent and speak for
their organization, as he or
she communicates and
transmit relevant
information about their
organization to external
parties.
C. DECISIONAL
1. Entrepreneur
- As an entrepreneur, the
manager designs and
initiates changes and
strategies to enhance
productivity and generate
more income.

2. Disturbance handler
- In this role, the manager
always responds to
employees' disputes,
operational breakdowns,
and other issues whether
internal or external and
uses solutions to resolve the
problems.
3. Resource allocator
- This role of the manager
describes his control and
the allocation of
organizational resources
which will be put in use in
all organization's
operations.
4. Negotiator
- As a negotiator, the
manager participates in
negotiations with other
organizations and
individuals and he
represents the interests of
the organization (Mulder
2016).
Managerial Skills
- Managerial skills may be
classified into three:
conceptual skills, human
skills, and technical skills.
1. Conceptual Skills.
- Enable managers to think of
possible solutions to
complex problems.
- Through their ability to
visualize abstract situations,
they develop a holistic view
of their organization and its
relation to the wider
external environment
surrounding it.
- Top-level managers must
have these conceptual skills
to be successful in their
work.
2. Human Skills.
- Enable managers in all
levels to relate well with
people.
- Communicating, leading,
inspiring. and motivating
them to become easy with
the help of human skills.
- Dealing with people, both in
the organization's internal
and external environment,
is inevitable, so managers
must develop these human
skills.
3. Technical Skills
- important for managers
for them to perform
their tasks with
proficiency with the use
of their expertise.
 - Lower-level managers
find these skills very
Managerial Roles – the various roles
important because they
played by managers, such as
are the ones who
interpersonal, informational, and
manage the non-
decision-making roles
management workers
who employ varied Managerial Skills – the various skill
techniques and tools to that managers must posses, such as
be able to yield good conceptual human and technical
quality products and skills.
services for their
company (Cabrera,
Altarejos, and Riaz
2016, 11).

Definition of Terms

Manager an individual engaged in

management activities such as
supervising, sustaining, upholding,
and assuring responsibilities for the
work of others in his/her work

group, team, department, on the

organization in general Micro-environment includes those
players whose decisions and actions
have a direct impact on the
company.
Macro-environment is the condition
that exist in the economy as a whole,
rather than in a particular sector or
region.
Constituents of Micro-Environment
- Suppliers of inputs
- Customers
- Marketing Intermediaries
- Competitors
- Publics
External Macro Environment
- Apart from micro-
environment, business firms
face large external
environmental forces. An
important fact about
external macro
environmental forces is that
they are uncontrollable by
the management. Because
of the uncontrollable nature
of macro forces a firm must
adjust or adapt it to these
external forces.
These factors are:
1. Economic Environment:
- includes all those forces
which have an economic
impact on business.
- Accordingly, total economic
environment consists of
agriculture, industrial
production, infrastructure,
and planning, basic
economic philosophy,
stages of economic
development, trade cycles,
national income, per capita
income, savings, money
supply, price level and
population.
2. Political-legal Environment:
- Business firms are closely
related to the government.
- The political- legal
environment includes the
activities of three political
institutions, namely,
legislature, executive and
judiciary which usually play
a useful role in shaping,
directing, developing and
controlling business
activities.
3. Technological Environment
- Technological environment
is exercising considerable
influence on business.
- Technology implies
systematic application of
scientific or other organized
 knowledge to practical tasks
or activities.
- Business makes it possible
for technology to reach the
people in proper format.
4. Global Or International
Environment:
- Global environment plays
an important role in shaping
business activity.
- With the liberalization and
globalization of the
economy, business
environment of an economy
has become totally different
wherein it has to bear all
shocks and benefits arising
out of global environment.
5. Socio-cultural Environment:
- Social and cultural
environment also influences
the business environment
indirectly. These include
people's attitude to work
and wealth, ethical issues,
role of family, marriage,
religion and education and
also social responsiveness
of business.
6. Demographic Environment:
- The demographic
environment includes the
size and growth of
population, life expectancy
of the people, rural- urban
distribution of population,
the technological skills and
educational levels of labor
force.
- All these demographic
features have an important
bearing on the functioning
of business firms.
7. Natural Environment:
- Natural environment
influences business in
diverse ways.
- Business in modern times is
dictated by nature.
- The natural environment is
the ultimate source of many
inputs such as raw materials
and energy, which firms use
in their productive activity.
- The natural environment
which includes geographical
and ecological factors such
as minerals and oil reserves,
water and forest resources,
weather and climatic
conditions are all highly
significant for various
business activities.
8. Ecological Environment:
 - Due to the efforts of
environmentalists and
international organizations
such as the World Bank the
people have now become
conscious of the adverse
effects of depletion of
exhaustible natural
resources and pollution of
environment by business
activity.
- Accordingly, laws have been
passed for conservation of
natural resources and
prevention of environment
pollution.
- These laws have imposed
additional responsibilities
and costs for business firms.
Internal Environment
- The factors in internal
environment of business are
to a certain extent
controllable because the
firm can change or modify
these factors to improve its
efficiency. However, the
firm may not be able to
change all the factors.
The various internal factors are:
1. Value system:
- The value system of an
organization means the
ethical beliefs that guide
the organization in
achieving its mission and
objectives.
- It is a widely acknowledged
fact that the extent to
which the value system is
shared by all in the
organization is an important
factor contributing to its
success.
2. Mission and objectives:
- The business domain of the
company, direction of
development, business
philosophy, business policy
etc. are guided by the
mission and objectives of
the company.
- The objective of all firms is
assumed to be
maximization of profit.
- Mission is defined as the
overall purpose or reason
for its existence which
guides and influences its
business decision and
economic activities.
3. Organization structure:
- The organizational
structure, the composition
of the board of directors,
the professionalism of
management etc. are
important factors
influencing business
decisions.
- The nature of the
organizational structure has
a significant influence over
the decision-making process
in an organization.
- An efficient working of a
business organization
requires that the
organization structure
should be conducive for
quick decision-making.
4. Corporate culture:
- Corporate culture is an
important factor for
determining the internal
environment of any
company.
- In a closed and threatening
type of corporate culture
the business decisions are
taken by top level managers
while the middle level and
lower level managers have
no say in business decision
making.
- This leads to lack of trust
and confidence among
subordinate officials of the
company and secrecy
pervades throughout the
organization.
5. Quality of human
resources:
- Quality of employees that is
of human resources of a
firm is an important factor
of internal environment of a
firm.
- The characteristics of the
human resources like skill,
quality, capability, attitude
and commitment of its
employees etc. could
contribute to the strength
and weaknesses of an
organization.
6. Labor unions:
- Labor unions collectively
bargains with the managers
for better wages and better
working conditions of the
different categories of
workers.
- For the smooth working of a
business firm good relations
between management and
labor unions is required.
7. Physical resources and
technological capabilities:
- Physical resources such as,
plant and equipment and
technological capabilities of
a firm determine its
competitive strength which
is an important factor for
determining its efficiency
and unit cost of production.
 - Research and development
capabilities of a company
determine its ability to
introduce innovations which
enhances productivity of
workers.

Environmental Scanning

Components of Environmental
Scanning:

1. Developing a competitive mindset

2. Considering future business

scenarios

3. Business prediction (also known as

business forecasting)

4. Benchmarking

5. SWOT or TOWS Analysis