Management Reporting

Module 1 – Management
Principles
MAE 2 - Professional Elective II
Prepared by:
Prof. Leonides F. Sarilla
Learning Objectives 2

• Explain the value of studying management;

• Explain the importance of management in organizations;
• Classify the four functions of management;
• Compare efficiency and effectiveness;
• Differentiate between mainstream and multi-stream
approaches;
Importance of studying management 3

• It creates job opportunities for you by allowing you to

develop the conceptual skills that you will need if you
ever want to be a manager.
• It may improve your job satisfaction because it helps you
understand your own managers better and thereby
increases the likelihood you’ll get along with them.
Importance of studying management 4

• It enables self-knowledge by better understanding the

organizational and social forces that influence who we
are.
• It helps you to better understand how the various
organizations you come into contact with are managed.
Important managerial skills 5

• Technical Skills
• Expertise in a particular area—marketing, accounting,
finance or human resources
• Human Skills
• Abilities in getting along with people, leadership,
helping others to be motivated, communication and
conflict resolution
• Conceptual Skills
• The ability to think about complex and broad
organization issues
Types of Managers 6

• First-Line Supervisors
• Manage the work of employees who are involved in
the actual production or creation of an organization’s
products or services.
• Middle Managers
• Manage first-line managers and others.
• Top Managers
• Have organization-wide managerial responsibilities—
Chief Executive Officers (CEOs), Vice-Presidents, and
Board Chairs
What Is Management? 7

• The process of planning, organizing, leading and

controlling human and other organizational resources
towards the effective achievement of organizational
goals.
Organization - A goal-directed (planning), deliberately-
structured (organizing) group of people working together
(leading) to achieve results (controlling).
Effective and efficient management 8

Effectiveness - Choosing the “right” organizational goals

to pursue.
Being effective is to achieve organizational goals.

Efficiency - The level of output that is achieved with a

given level of inputs.
Being efficient is to achieve goals with minimal resources.
 COMBINATIONS OF MANAGERIAL
EFFECTIVENESS AND EFFICIENCY 9

Efficient NOT REACHING GOALS REACHING GOALS AND

(more resources AND NOT WASTING NOT WASTING
RESOURCE USE

contribute to
production) RESOURCES RESOURCES

Inefficient NOT REACHING GOALS REACHING GOALS AND

(few resources AND WASTING WASTING RESOURCES
contribute to
production) RESOURCES

Ineffective Effective
(little progress (substantial progress
toward toward
organizational goals) organizational goals)

GOAL ACCOMPLISHMENT
Functions of Management 10

• Planning - Identifying an organization’s goals and

strategies, and the appropriate organizational
resources required to achieve them.

• Organizing - Ensuring the tasks have been assigned

and a structure of organizational relationships
created that facilitates meeting organizational goals.
Functions of Management 11

• Leading - Relating with others so that their work

efforts lead to the achievement of organizational
goals.

• Controlling - Ensuring that the actions of

organizational members are consistent with the
organization’s values and standards.
Managerial Roles 12

• Interpersonal Roles
• Leader, Liaison and Figurehead
• Decisional Roles
• Resource Allocator, Negotiator, Entrepreneur, Crisis
Handler
• Informational Roles
• Monitor, Disseminator, and Spokesperson
Fayol’s Functions
and Mintzberg’s Roles 13

Fayol Mintzberg
Planning Entrepreneur, Negotiator,
Spokesperson
Organizing Resource Allocator
Leading Leader, Liaison, Disseminator
Controlling Monitor, Crisis Handler,
Figurehead
Mainstream to Multi-stream 14

• Mainstream Management
• Emphasizes materialism and individualism
• Effective management is about maximizing
productivity, profitability and competitiveness.
• Self-interest serves organizational needs.
• Multi-stream Management
• Emphasizes multiple forms of well-being for multiple
stakeholders
• Effective management is about working with
stakeholders towards creating a balance among
multiple forms of well-being.
Two Basic Approaches
To Define Effective Management
15
Why Study Two Approaches
to Management? 16

• Studying two different approaches offers four

distinct advantages:
• It nurtures self-understanding.
• It improves understanding of management.
• It develops critical thinking skills.
• It reduces bias.
Comparing Mainstream and Multi-
stream Management Definitions 17
Comparing Mainstream and Multi-
stream Management Definitions 18

TWO APPROACHES TO PLANNING

a) MAINSTREAM: MEASURABLE GOALS, BOTTOM-
LINE MONETARY FOCUS, TOP-DOWN LINEAR
ANALYSIS
b) MULTI-STREAM: PRACTICAL WISDOM,
PARTICIPATION, GOALS OTHER THAN MONETARY
Comparing Mainstream and Multi-
19
stream Management Definitions
TWO APPROACHES TO ORGANIZING
a) MAINSTREAM: CENTRALIZATION,
STANDARDIZATION, SPECIALIZATION
b) MULTI-STREAM: COURAGE, EXPERIMENTATION

COURAGE = IMPLEMENTING INITIATIVES THAT HAVE

POTENTIAL TO IMPROVE OVERALL HAPPINESS EVEN
IF IT MIGHT THREATEN ONE’S OWN STATUS.
 Comparing Mainstream and Multi-
stream Management Definitions 20

TWO APPROACHES TO LEADING

a) MAINSTREAM: INSTRUMENTAL MOTIVATION, EXTRINSIC
REWARDS, OUTPUT-ORIENTED
INSTRUMENTAL SKILLS = GETTING PEOPLE TO ACT IN WAYS THAT
FULFILL OUR OWN NEEDS
b) MULTI-STREAM: RELATIONAL SELF-CONTROL, DIGNITY,
FACILITATE INTRINSIC MOTIVATION
RELATIONSHIP SKILLS = USED TO CREATE AND DEEPEN
RELATIONSHIPS BECAUSE RELATIONSHIPS ARE VIEWED AS ENDS
RATHER THAN AS MEANS TO ACHIEVE ONE’S PERSONAL
OBJECTIVES
 Comparing Mainstream and Multi- 21
stream Management Definitions
TWO APPROACHES TO CONTROLLING
a) MAINSTREAM: VIGILANCE, MONITORING, ENSURING THAT
MEMBERS DO WHAT THEY ARE SUPPOSED TO BE DOING
1. VALUE CHAIN = SEQUENCE OF ACTIVITIES NEEDED TO
CONVERT ORGANIZATIONAL INPUTS INTO OUTPUTS
2. INFORMATION SYSTEMS = HELP TO IDENTIFY, COLLECT,
ORGANIZE, AND DISSEMINATE INFORMATION
3. BUREAUCRATIC CONTROL = EMPHASIS ON RULES,
REGULATIONS, POLICIES, AND STANDARD OPERATING
PROCEDURES TO CONTROL ORGANIZATIONAL MEMBERS
Comparing Mainstream and Multi-
stream Management Definitions 22
TWO APPROACHES TO CONTROLLING
4. MARKET CONTROL = USING COMPETITION
AMONG ORGANIZATIONAL MEMBERS TO
CONTROL THEIR BEHAVIOR
5. CLAN CONTROL = USING VALUES, NORMS, AND
EXPECTATIONS TO CONTROL ORGANIZATIONAL
MEMBERS
B. MULTI-STREAM: JUSTICE, FAIRNESS,
SENSITIZATION, COMPASSION
Summary 23

• Why the Study Of Management Is Important:

• It provides skills to help you become a
manager.
• It improves the working relationships you
will have with your own bosses.
• It allows you to better understand how
organizations operate.
• It facilitates a better understanding of who
you are and of your life ambitions.
Summary (cont’d) 24

• The Four Management Functions:

• Planning: deciding on an organization’s goals
and strategies.
• Organizing: ensuring that tasks have been
assigned and the structure of organizational
relationships facilitates meeting goals.
• Leading: relating with others so that their
work efforts achieve organizational goals.
• Controlling: ensuring actions are consistent
the organization’s values and standards.
Summary (cont’d) 25

• Effective Management
• Mainstream management: effectiveness
comes from maximizing materialist-
individualist outcomes.
• Multi-stream management: effectiveness is
finding a balance among multiple forms of
well-being for multiple stakeholders.
Summary (cont’d) 26
• Mainstream Managers
• Perform effectively when organizational
efficiency, productivity and competitiveness
are maximized.
• Planning via measurable goals and
rationally-designed strategies
• Organizing via standardization,
specialization, and centralization
• Leading via motivating others to achieve
organizational goals
• Controlling via vigilant monitoring of
performance
Summary (cont’d) 27
• Multi-stream Managers
• Perform effectively when virtues are
practiced in community and happiness is
achieved.
• Planning via practical wisdom,
participation and higher-order goals
• Organizing via courage and
experimentation
• Leading via relational self-control and
treating members with dignity
• Controlling via fairness and being sensitive
to sub-optimal conditions.