BASIC CONCEPTS OF MANAGEMENT
INTRODUCTION
• MANAGEMENT IS AN IMPORTANT ELEMENT IN
EVERY ORGANIZATION. IT IS THE ELEMENT THAT
COORDINATES CURRENTS ORGANIZATIONAL
ACTIVITIES AND PLANS FOR THE FUTURE.
• THE MANAGEMENT ADAPTS THE ORGANIZATION
TO ITS ENVIRONMENT AND SHAPES THE
ORGANIZATION TO MAKE IT MORE SUITABLE TO
THE ORGANIZATION.
DEFINITION
• “MANAGEMENT IS THE ART OF “KNOWING WHAT
YOU WANT TO DO” AND THEN SEEING THAT IT IS
DONE IN THE BEST AND CHEAPEST WAY.
……F.W.TAYLOR
• MANAGEMENT AS A PROCESS “CONSISTING OF
PLANNING, ORGANIZING, ACTUATING AND
CONTROLLING, PERFORMED TO DETERMINE AND
ACCOMPLISH THE OBJECTIVE BY THE USE OF
PEOPLE AND RESOURCES.” ……GEORGE R. TERRY
IN THIS DEFINITION,
PLANNING MEANS PLAN IN ADVANCE.
ORGANIZING MEANS COORDINATION BETWEEN HUMAN
RESOURCES AND MATERIAL RESOURCES.
ACTUATING MEANS MOTIVATION AND GIVING DIRECTION
TO SUBORDINATE.
CONTROLLING MEANS TO ENSURE ABOUT
IMPLEMENTATION OF PLAN WITHOUT DEVIATION.
THUS, THIS DEFINITION TELLS THAT MANAGEMENT IS ACT OF
ACHIEVING THE ORGANIZATION OBJECTIVES.
MANAGEMENT FUNCTIONS OR THE PROCESS OF
MANAGEMENT
• PLANNING, ORGANIZING, LEADING &
CONTROLLING (NEWMAN & SUMMER)
• PLANNING, ORGANIZING, COMMANDING,
COORDINATING AND CONTROLLING (HENRI
FAYOL)
• ‘POSDCORB’: PLANNING, ORGANIZING,
STAFFING, DIRECTING, COORDINATING,
REPORTING & BUDGETING (LUTHER GULICK)
• DECISION MAKING, ORGANIZING, STAFFING,
PLANNING, CONTROLLING, COMMUNICATING &
DIRECTING (WARREN HAYNES & JOSEPH MASSIE)
• PLANNING, ORGANIZING, STAFFING, DIRECTING &
CONTROLLING (KOONTZ O’DONNELL)
FUNCTIONS OF MANAGEMENT
• PLANNING: IT IS A PROCESS OF DECIDING THE
BUSINESS OBJECTIVES AND CHARTING OUT THE
PLAN/ METHOD FOR ACHIEVING THE SAME. THIS
INCLUDES DETERMINATION OF WHAT IS TO BE
DONE, HOW, AND WHERE IT IS TO BE DONE, WHO
WILL DO IT AND HOW RESULT IS TO BE EVALUATED.
THIS FUNCTION EXPECTED TO BE CARRIED OUT
THROUGHOUT THE ORGANIZATION. IT SHOULD BE
PERFORMED BY THE MANAGER AT ALL LEVELS.
ORGANIZING
• ACCORDING TO ALLEN, THE ORGANIZING REFERS
TO “ THE STRUCTURED WHICH RESULTS FROM
IDENTIFYING AND GROUPING THE WORK,
DEFINING AND DELEGATING RESPONSIBILITY AND
AUTHORITY AND ESTABLISHING RELATIONSHIPS.”
• TO ORGANIZE A BUSINESS IS TO PROVIDE IT WITH
EVERYTHING USEFUL TO ITS FUNCTIONING I.E.
PERSONNEL, RAW MATERIALS, MACHINERIES,
CAPITAL ETC.
• ONCE OBJECTIVES ARE ESTABLISHED, MANAGER
HAS TO DEVELOP PLAN TO ACHIEVE THEM WITH
HELP OF HUMAN RESOURCES AS WELL AS
MATERIAL RESOURCES.
DIRECTING
• DIRECTING INVOLVES COMMUNICATION,
LEADERSHIP AND MOTIVATION.
COMMUNICATION IS THE PROCESS OF PASSING THE
INFORMATION AND UNDERSTANDING IT FROM ONE
PERSON TO ANOTHER PERSON.
LEADERSHIP IS THE FUNCTION WHEREBY THE PERSON
OR MANAGER GUIDES AND INFLUENCES THE WORK
OF HIS SUBORDINATES.
MOTIVATION IS TO MOTIVATE THE EMPLOYEE TO GIVE
THEIR BEST TO THE ORGANIZATION.
CONTROLLING
THE CONTROLLING INVOLVES:
1. ESTABLISHING STANDARDS OF PERFORMANCE.
2. MEASURING CURRENT PERFORMANCE AND
COMPARING IT AGAINST THE ESTABLISHED STANDARD.
3. TAKING CORRECTIVE ACTION THAT DOES NOT MEET THE
STANDARD.
CONTROL COMPELS THE EVENTS TO CONFIRM TO PLANS.
INNOVATION AND REPRESENTATION
• THESE ARE ALSO TWO IMPORTANT ADDITIONAL
MANAGERIAL FUNCTIONS.
• INNOVATION MEANS CRATING NEW IDEAS WHICH
MAY EITHER RESULT IN THE DEVELOPMENT OF NEW
PRODUCTS OR FINDING NEW USES FOR OLDER
ONES. IT IS NECESSARY TO GROW BETTER.
• THE MANGER HAS TO REPRESENT HIMSELF FOR THE
ORGANIZATION. A MANGER MUST WIN SUPPORT
EFFECTIVELY FROM DIFFERENT GROUPS (EITHER
INTERNAL OR EXTERNAL).
IMPORTANCE OF MANGEMENT
• MANAGEMENT IS CRITICAL ELEMENT IN THE
CRITICAL GROWTH OF THE COUNTRY.
• MANAGEMENT IS ESSENTIAL IN ALL ORGANIZED
EFFORT, BE IT BUSINESS ACTIVITY OR ANY OTHER
ACTIVITY.
• MANAGEMENT IS THE DYNAMIC, LIFE-GIVING
ELEMENT IN EVERY ORGANIZATION.
LEVELS OF MANAGEMENT
• LOWER LEVEL (FIRST LINE): FOREMEN & WHITE-
COLLAR SUPERVISOR
• MIDDLE MANAGEMENT: SALES MANAGERS,
PERSONNEL MANAGERS, OTHER DEPARTMENTAL
HEADS
• TOP MANAGEMENT: COMPANY PRESIDENTS,
EXECUTIVES, VICE PRESIDENTS
MANAGERIAL SKILLS
EVOLUTION OF MANAGEMENT THOUGHT
• THE NEED TO STUDY MANAGEMENT AROSE WITH
THE INDUSTRIAL REVOLUTION IN EUROPE (MORE
SPECIFICALLY, ENGLAND).
• THE INDUSTRIAL REVOLUTION AND THE SYSTEMATIC
STUDY OF MANAGEMENT ARE THE RESULT OF A
REMARKABLE CONFLUENCE OF IDEAS AND
EVENTS.
• MANAGEMENT AND ORGANIZATIONS ARE
PRODUCTS OF THEIR HISTORICAL AND SOCIAL
TIMES AND PLACES.
SCIENTIFIC MANAGEMENT THEORY
• FREDERICK W. TAYLOR, HENRY L. GANTT, AND
FRANK AND LILLIAN GILBRETH DEVISED THE BODY
OF PRINCIPLES KNOWN AS SCIENTIFIC
MANAGEMENT THEORY.
• TAYLOR BASED HIS MANAGEMENT SYSTEM ON
PRODUCTION-LINE TIME STUDIES. USING TIME
STUDY AS HIS BASE, HE BROKE EACH JOB DOWN
INTO ITS COMPONENTS AND DESIGNED THE
QUICKEST AND BEST METHODS OF PERFORMING
EACH COMPONENT.
• HE ALSO ENCOURAGED EMPLOYERS TO PAY
MORE PRODUCTIVE WORKERS AT A HIGHER RATE
THAN OTHERS, USING A "SCIENTIFICALLY
CORRECT" RATE THAT WOULD BENEFIT BOTH
COMPANY AND WORKER.
• THIS SYSTEM IS CALLED DIFFERENTIAL RATE SYSTEM
• GANTT ORIGINATED A CHARTING SYSTEM FOR
PRODUCTION SCHEDULING.
• EVERY WORKER'S PROGRESS WAS RATED PUBLICLY
AND RECORDED ON INDIVIDUAL BAR CHARTS, --IN
BLACK ON DAYS THE WORKER MADE THE
STANDARD, IN RED WHEN HE OR SHE FELL BELOW
IT. GOING BEYOND THIS.
• FRANK B. AND LILLIAN M. GILBRETH
COLLABORATED ON FATIGUE AND MOTION
STUDIES AND FOCUSED ON WAYS OF PROMOTING
THE INDIVIDUAL WORKER'S WELFARE. TO THEM, THE
ULTIMATE AIM OF SCIENTIFIC MANAGEMENT WAS
TO HELP WORKERS REACH THEIR FULL POTENTIAL
AS HUMAN BEINGS.
CONTRIBUTIONS OF SCIENTIFIC MANAGEMENT THEORY
• THE MODEM ASSEMBLY LINE POURS OUT FINISHED
PRODUCTS FASTER THAN TAYLOR COULD EVER
HAVE IMAGINED. THIS PRODUCTION "MIRACLE" IS
THE GIFT OF SCIENTIFIC MANAGEMENT.
• IN ADDITION, ITS EFFICIENCY TECHNIQUES HAVE
BEEN APPLIED TO MANY TASKS IN NON-INDUSTRIAL
ORGANIZATIONS, RANGING FROM FAST-FOOD
SERVICE TO THE TRAINING OF SURGEONS.
LIMITATIONS OF SCIENTIFIC MANAGEMENT THEORY
• TAYLOR'S SYSTEM CLEARLY MEANT THAT TIME WAS
OF THE ESSENCE. HIS CRITICS OBJECTED TO THE
"SPEED UP" CONDITIONS THAT PLACED UNDUE
PRESSURES ON EMPLOYEES TO PERFORM AT
FASTER AND FASTER LEVELS.
• THE EMPHASIS ON PRODUCTIVITY—AND, BY
EXTENSION, PROFITABILITY—LED SOME MANAGERS
TO EXPLOIT BOTH WORKERS AND CUSTOMERS.
THIS CONDITION CREATED MISTRUST / SUSPICIOUS
RELATIONSHIP BETWEEN LABOR AND SUPERVISOR
OR MANAGEMENT.
CLASSICAL ORGANIZATION THEORY
• CLASSICAL ORGANIZATION THEORY CONCERNED
ABOUT THE NEED TO FIND GUIDELINES FOR
MANAGING COMPLEX ORGANIZATIONS SUCH AS
FACTORIES.
• HENRI FAYOL IS THE FOUNDER OF THE CLASSICAL
MANAGEMENT THEORY.
• FAYOL BELIEVED THAT SOUND MANAGEMENT
PRACTICE FALLS INTO CERTAIN PATTERS THAT CAN
BE IDENTIFIED AND ANALYZED.
 • FAYOL WAS INTERESTED IN THE TOTAL
ORGANIZATION AND FOCUSED ON
MANAGEMENT, WHICH HE FELT HAD BEEN THE
MOST NEGLECTED OF BUSINESS OPERATIONS.
FAYOL’S 14 PRINCIPLES OF MANAGEMENT
1. DIVISION OF LABOR
2. AUTHORITY
3. DISCIPLINE
4.UNITY OF COMMAND
5. UNITY OF DIRECTION
6. REMUNERATION
7.SUBORDINATION OF INDIVIDUAL INTEREST TO THE
COMMON GOOD
8. CENTRALIZATION
9. THE HIERARCHY
10.ORDER
11. EQUITY
12. STABILITY OF STAFF
13. INITIATIVE
14. ESPIRIT DE CORPS
CONTRIBUTION OF CLASSICAL MANAGEMENT THEORY
• BEFORE FAYOL, IT WAS GENERALLY BELIEVED THAT
"MANAGERS ARE BORN, NOT MADE."
• FAYOL HOWEVER, SAID THAT MANAGEMENT WAS
A SKILL LIKE ANY OTHER--ONE THAT COULD BE
TAUGHT ONCE ITS UNDERLYING PRINCIPLES WERE
UNDERSTOOD.
• IT IDENTIFIED KEY MANAGEMENT PROCESSES,
FUNCTIONS AND SKILLS.
• IT FOCUSED ATTENTION ON MANAGEMENT AS A
VALID SUBJECT OF SCIENTIFIC STUDY.
• IT LED FOUNDATION FOR LATTER DEVELOPMENTS
IN MANAGEMENT THEORY.
LIMITATIONS OF CLASSICAL THEORY
• THIS THEORY IS MORE APPLICABLE FOR
STABLE AND SIMPLE ORGANIZATIONS THAN
TODAY’S COMPLEX AND DYNAMIC
ORGANIZATIONS.
• THIS THEORY TREATS EMPLOYEES AS A
ELEMENT RATHER THAN RESOURCES.
• THE PROCEDURE GOVERNED BY THIS THEORY
MAY NOT BE APPLICABLE IN CERTAIN
SITUATION.
BEHAVIOURAL MANAGEMENT THEORY NEO CLASSICAL
THEORY
• THIS THEORY PUTS MORE EMPHASIS ON
INDIVIDUAL’S ATTITUDES, BEHAVIOURS AND ON
THE GROUP PROCESSES. IN THIS APPROACH OF
MANAGEMENT HUMAN FACTOR REMAIN
CENTRAL FOCUS.
• THIS APPROACH CAN BE STUDIED INTO TWO
PHASES –
A. HUMAN RELATION MOVEMENT
B. BEHAVIOURAL SCIENCE APPROACH
• MAJOR CONTRIBUTORS TO THIS APPROACH WERE
ELTON MAYO, ABRAHAM MASLOW AND
DUGULAS MCGREGOR
HUMAN RELATION MOVEMENT
• HUMAN RELATIONS IS FREQUENTLY USED AS A
GENERAL TERM TO DESCRIBE THE WAYS IN WHICH
MANAGERS INTERACT WITH THEIR EMPLOYEES.
• WHEN "EMPLOYEE MANAGEMENT" STIMULATES
MORE AND BETTER WORK, THE ORGANIZATION
HAS EFFECTIVE HUMAN RELATIONS; WHEN
MORALE AND EFFICIENCY DETERIORATE, ITS
HUMAN RELATIONS ARE SAID TO BE INEFFECTIVE.
• THE HUMAN RELATIONS MOVEMENT AROSE FROM
EARLY ATTEMPTS TO SYSTEMATICALLY DISCOVER
THE SOCIAL AND PSYCHOLOGICAL FACTORS
THAT WOULD CREATE EFFECTIVE HUMAN
RELATIONS.
• THIS APPROACH AIMS AT PROVIDING HIGH
DEGREE OF SATISFACTION AND MOTIVATION
THROUGH IMPROVED WORKING CONDITIONS,
STYLE OF SUPERVISION AND SENSE OF SECURITY.
CONTRIBUTION OF HUMAN RELATION MOVEMENT
• THIS MOVEMENT THROWN LIGHT ON, AN
EMPLOYEE DOESN’T WORK ALWAYS FOR MONEY
ONLY. NON-FINANCIAL REWARDS ALSO
SIGNIFICANTLY AFFECTS THE BEHAVIOR OF THE
EMPLOYEE.
• THERE IS NO CORRELATION BETWEEN IMPROVED
WORKING CONDITIONS AND HIGH PRODUCTION.
• THE INFORMAL GROUP AND NOT THE INDIVIDUAL
IS THE DOMINANT UNIT OF ANALYSIS IN
ORGANIZATIONS.
LIMITATION OF THE HUMAN RELATIONS MOVEMENT
• THIS APPROACH OVER-EMPHASIZES ON SYMBOLIC
REWARDS AND UNDERPLAYS THE ROLE OF
MATERIAL REWARDS.
• THIS APPROACH GIVES MORE IMPORTANCE TO
INFORMAL GROUPS BY DESCRIBING THEM AS A
MAJOR SOURCE OF SATISFACTION FOR
INDIVIDUAL WORKERS.
 • THIS APPROACH IS BASED ON THE ASSUMPTION
THAT SATISFIED WORKERS ARE MORE PRODUCTIVE
WORKERS. ATTEMPTS TO INCREASE OUTPUT BY
IMPROVING WORKING CONDITIONS AND THE
HUMAN RELATION SKILLS OF MANAGER.
BEHAVIOURIAL SCIENCE APPROACH
• THIS APPROACH IS AN IMPROVED VERSION OF THE
HUMAN RELATIONS APPROACH TO
MANAGEMENT.
• DOUGLAS MCGREGOR, ABRAHAM MASLOW,
KURT LEWIN, CHESTER BARNARD, MERRY FOLLETT
ETC. ARE SOME OF THE FOREMOST BEHAVIOURIAL
SCIENTISTS WHO MADE SIGNIFICANT
CONTRIBUTIONS TO THE DEVELOPMENT OF THE
BEHAVIOURIAL APPROACH TO THE
MANAGEMENT.
• THIS APPROACH RECOGNIZES THE PRACTICAL
AND SITUATIONAL CONSTRAINTS ON HUMAN
RATIONALITY FOR MAKING OPTIMAL DECISIONS.
CONTD…
• TO BEHEVIOURAL SCIENTISTS, THE REALISTIC
MODEL OF HUMAN MOTIVATION IS COMPLEX
MAN. IT SUGGEST THAT DIFFERENT PEOPLE REACT
DIFFERENTLY TO SAME SITUATION OR REACT SAME
WAY TO DIFFERENT SITUATIONS.
• THE ORGANIZATION CONSIDERED AS A GROUPS
OF INDIVIDUALS WITH CERTAIN GOALS.
• IT RECOGNIZES THAT CONFLICT IS INEVITABLE AND
EVEN SOMETIMES DESIRABLE AND SHOULD BE
FACED WITH UNDERSTANDING AND
DETERMINATION.
CONTRIBUTION OF BEHAVIOURAL MANAGEMENT THEORY
• IT PROVIDES IMPORTANT INSIGHTS INTO
MOTIVATION, LEADERSHIP, GROUP DYNAMICS
AND OTHER INTERPERSONAL PROCESS IN
ORGANIZATIONS.
• THIS THEORY CHALLENGED THE VIEW THAT
EMPLOYEES ARE TOOLS INSTEAD EMPLOYEES ARE
VALUABLE RESOURCES.
• FOCUSED MANAGERIAL ATTENTION ON
EMPLOYEE RELATED PROCESS.
LIMITATIONS OF BEHAVIOURAL MANAGEMENT THEORY
• MANY BEVIOURAL CONCEPT COULDN’T BE
APPLIED IN ORGANIZATIONAL PROCESSES
BECAUSE OF MANAGER RELUCTANCE.
• THE COMPLEX HUMAN NATURE CANN’T BE
PREDICTED.
• THE FINDINGS OF BEHVIUORAL SCIENCE OFTEN
COULD NOT BE COMMUNICATED TO THE
PRACTICING MANAGER IN AN UNDERSTANDABLE
MANNER.
MODERN APPROACHES – QUANTITATIVE APPROACH
• THIS APPROACH HAS BEEN CALLED AS THE
MANAGEMENT SCIENCE APPROACH.
• THE FOCUS OF THE QUANTITATIVE APPROACH IS
ON DECISION MAKING – TO PROVIDE
QUANTITATIVE TOOLS AND TECHNIQUES FOR
MAKING OBJECTIVELY RATIONAL DECISIONS. IT
MEANS AS ABILITY OR WILLINGNESS TO FOLLOW A
REASONED, UNEMOTIONAL, ORDERLY AND
SCIENTIFIC APPROACH IN VISUALIZING THE
TOTALITY OF THE DECISION ENVIRONMENT.
CONTD…
• THIS APPROACH GAINED MOVEMENT DURING
WORLD WAR II WHEN UK AND USA TRYING TO
SEEK SOLUTIONS FOR A NUMBER OF NEW
COMPLEX PROBLEMS OCCURRED DURING THE
WAR. THE GROUP OF SCIENTISTS ENGAGED FOR
THIS PURPOSE WERE KNOWN AS OPERATIONS
RESEARCH (OR) TEAM.
• THE MANAGEMENT APPROACH GAINED
POPULARITY THROUGH TWO POSTWAR
PHENOMENA. THE DEVELOPMENT OF HIGHSPEED
COMPUTERS AND OF COMMUNICATIONS
AMONG COMPUTERS PROVIDED THE MEANS FOR
TACKLING COMPLEX AND LARGE-SCALE
ORGANIZATIONAL PROBLEMS.
CONTRIBUTIONS OF QUANTITATIVE MANAGEMENT THEORY
• THE KEYNOTE OF THIS APPROACH IS PRECISION
AND PERFECTION WHICH IS ACHIEVED BY
EXPRESSING RELATIONSHIPS AND FACTS IN
QUANTITATIVE TERMS.
• IT IS WIDELY USED IN PLANNING AND CONTROL
ACTIVITIES WHERE PROBLEMS CAN BE PRECISELY
IDENTIFIED AND DEFINED IN QUANTITATIVE TERMS.
• IT HAS LED TO INCREASING USE OF INFORMATION
TECHNOLOGY, ELECTRONIC DATA PROCESSING
SYSTEM AND OTHER SOPHISTICATED QUANTITATIVE
DEVICES FOR MAKING DECISIONS.
LIMITATIONS OF QUANTITATIVE MANAGEMENT THEORY
• THIS APPROACH HAS VERY LIMITED APPLICATION
BECAUSE OF ONLY ATTENTION TOWARDS
PROBLEM SOLVING AND DECISION-MAKING.
• IT FAILS TO EXPLAIN OR PREDICT ABOUT
BEHAVIOUR OF THE PEOPLE OF THE
ORGANIZATION.
• MANAGEMENT MAY BE ABLE TO ACHIEVE
MATHEMATICAL SOPHISTICATION AT THE EXPENSE
OF OTHER IMPORTANT MANAGERIAL SKILLS.
SYSTEM APPROACH
 • THIS APPROACH IS AIMED AT IDENTIFYING THE
NATURE OF RELATIONSHIP AMONG VARIOUS
COMPONENTS OF THE ORGANIZATION WHICH IS
CONSIDERED AS LARGER SYSTEM.
• CHESTER BARNARD, GEORGE HOMANS, HERBERT
SIMON ETC. ARE THE CONTRIBUTORS IN SYSTEM
APPROACH.
• THIS APPROACH GIVES MANAGERS A WAY OF
LOOKING AT THE ORGANIZATION AS A WHOLE
AND AS A PART OF THE LARGER, EXTERNAL
ENVIRONMENT.
CONTD…
• SYSTEMS THEORY TELLS US THAT THE ACTIVITY OF
ANY SEGMENT OF AN ORGANIZATION AFFECTS,
IN VARYING DEGREES, THE ACTIVITY OF EVERY
OTHER SEGMENT.
• IT CALLS ATTENTION TO THE DYNAMIC AND
INTERRELATED NATURE OF ORGANIZATIONS AND
THE MANAGEMENT TASK.
• IT PROVIDES A FRAMEWORK WITHIN WHICH WE
CAN PLAN ACTIONS AND ANTICIPATE BOTH
IMMEDIATE AND FAR-REACHING
CONSEQUENCES WHILE ALLOWING US TO
UNDERSTAND UNANTICIPATED CONSEQUENCES
AS THEY DEVELOP.
KEY CONCEPTS OF SYSTEM APPROACH
• A SYSTEM IS A SET OF INTERDEPENDENT PARTS – AN
ORGANIZATION IS A SYSTEM COMPOSED OF FOUR
INTERDEPENDENT PARTS I.E. TASK, STRUCTURE,
PEOPLE AND TECHNOLOGY.
• CENTRAL TO THE SYSTEM APPROACH IS THE
CONCEPT OF “HOLISM” – MEANS NO PART OF THE
SYSTEM CAN BE ACCURATELY ANALYZED AND
UNDERSTOOD APART FROM WHOLE SYSTEM.
CONVERSELY THE WHOLE SYSTEM CANNOT BE
ACCURATELY PERCEIVED WITHOUT
UNDERSTANDING ALL ITS PARTS.
CONTD…
• SYNERGY – IT MEANS THAT AS SEPARATE
DEPARTMENTS WITHIN AN ORGANIZATION
COOPERATE AND INTERACT, THEY BECOME MORE
PRODUCTIVE THAN IF EACH WERE TO ACT IN
ISOLATION.
• A SYSTEM CAN BE EITHER OPEN OR CLOSED – AN
OPEN SYSTEM INTERACT WITH ITS ENVIRONMENT. A
CLOSED SYSTEM IS INDEPENDENT OF THE
ENVIRONMENT.
• EVERY SYSTEM HAS A BOUNDARY - EACH SYSTEM
HAS A BOUNDARY THAT SEPARATES IT FROM ITS
ENVIRONMENT. IN A CLOSED SYSTEM, THE SYSTEM
BOUNDARY IS RIGID; IN AN OPEN SYSTEM, THE
BOUNDARY IS MORE FLEXIBLE.
CONTD…
• FLOW - A SYSTEM HAS FLOWS OF INFORMATION,
MATERIALS, AND ENERGY (INCLUDING HUMAN
ENERGY). THESE ENTER THE SYSTEM FROM THE
ENVIRONMENT AS INPUTS (RAW MATERIALS, FOR
EXAMPLE), UNDERGO TRANSFORMATION
PROCESSES WITHIN THE SYSTEM (OPERATIONS THAT
ALTER THEM), AND EXIT THE SYSTEM AS OUTPUTS
(GOODS AND SERVICES).
• FEEDBACK - FEEDBACK IS THE KEY TO SYSTEM
CONTROLS. AS OPERATIONS OF THE SYSTEM
PROCEED, INFORMATION IS FED BACK TO THE
APPROPRIATE PEOPLE, AND PERHAPS TO A
COMPUTER, SO THAT THE WORK CAN BE ASSESSED
AND, IF NECESSARY, CORRECTED.
CONTRIBUTION OF SYSTEM APPROACH
• SYSTEM THEORY CALLS ATTENTION TO THE
DYNAMIC AND INTERRELATED NATURE OF
ORGANIZATIONS AND THE MANAGEMENT TASK.
THUS, IT PROVIDES A FRAMEWORK WITHIN WHICH
WE CAN PLAN ACTIONS AND ANTICIPATE BOTH
IMMEDIATE AND FAR-REACHING CONSEQUENCES
WHILE ALLOWING US TO UNDERSTAND
UNANTICIPATED CONSEQUENCES AS THEY
DEVELOP.
• WITH A SYSTEMS PERSPECTIVE, GENERAL
MANAGERS CAN MORE EASILY MAINTAIN A
BALANCE BETWEEN THE NEEDS OF THE VARIOUS
PARTS OF THE ENTERPRISE AND THE NEEDS AND
GOALS THE WHOLE FIRM.
LIMITATIONS OF SYSTEM APPROACH
• ACCORDING TO SOME EXPERTS, SYSTEM
APPROACH IS PURELY THEORETICAL,
CONCEPTUAL AND ABSTRACT. IT CAN CAN’T BE
APPLIED SUCCESSFULLY TO PRACTICAL SITUATION.
• THE SYSTEM APPROACH NEITHER OFFERS ANY
TOOLS OR TECHNIQUE FOR ANALYSIS NOR IT
RECOGNIZES THE DIFFERENCES WHICH EXISTS
BETWEEN THE SYSTEMS.
CONTINGENCY APPROACH
• ACCORDING TO THE CONTINGENCY APPROACH
THE MANAGER'S TASK IS TO IDENTIFY WHICH
TECHNIQUE WILL, IN A PARTICULAR SITUATION,
UNDER PARTICULAR CIRCUMSTANCES, AND AT
PARTICULAR TIME, BEST CONTRIBUTE TO THE
ATTAINMENT OF MANAGEMENT GOALS.
• METHODS AND TECHNIQUES WHICH ARE HIGHLY
EFFECTIVE IN ONE SITUATION MAY NOT WORK IN
OTHER SITUATIONS. RESULTS DIFFERS WITH
SITUATIONAL DIFFERENCE.
CONTRIBUTION OF CONTINGENCY APPROACH

• CONTINGENCY VIEWS ARE APPLICABLE IN

DESIGNING ORGANIZATIONAL STRUCTURE, IN
DECIDING THE DEGREE OF CENTRALIZATION AND
DECENTRALIZATION, IN PLANNING INFORMATION
DECISION SYSTEM, IN MOTIVATIONAL AND
LEADERSHIP APPROACHES, IN ESTABLISHING
COMMUNICATION AND CONTROL SYSTEMS, IN
RESOLVING CONFLICTS AND MANAGING
CHANGE, IN EMPLOYEE DEVELOPMENT AND
TRAINING PROGRAMMES ETC.

LIMITATION OF CONTINGENCY APPROACH

• IT COMPROMISES BETWEEN SYSTEM APPROACH

AND SITUATIONAL FACTORS.
• IT IS TOTALLY PRACTICAL APPROACH WITHOUT
SUPPORT OF THEORETICAL AND CONCEPTUAL
FRAMEWORK.
• SOMETIME MANAGER FINDS DIFFICULTIES IN
ANALYZING THE SITUATION AND DISCOVERING
APPROPRIATE MANAGEMENT TECHNIQUE IN
ABSENCE OF PROPER RESEARCH AND
UNDERSTANDING BEHAVIOUR OF THE SITUATION.
PROJECT MANAGEMENT
WHAT IS A PROJECT
A PROJECT IS A TEMPORARY ENDEAVOR DESIGNED TO
PRODUCE A UNIQUE PRODUCT, SERVICE OR RESULT WITH A
DEFINED BEGINNING AND END (USUALLY TIMECONSTRAINED,
AND OFTEN CONSTRAINED BY FUNDING OR DELIVERABLES)
UNDERTAKEN TO MEET UNIQUE GOALS AND OBJECTIVES,
TYPICALLY TO BRING ABOUT BENEFICIAL CHANGE OR ADDED
VALUE
• THE BEGINNING PHASE OF EVERY PROJECT WHERE A
PROJECT MANAGER IS SELECTED.
• THE PROJECT MANAGER WILL MEET WITH THE
PROJECT SPONSOR AND KEY STAKEHOLDERS TO
DETERMINE THE BUSINESS OR TECHNICAL
OBJECTIVES OF THE PROJECT.
• DETERMINE ANY HISTORICAL INFORMATION
REGARDING THE PROJECT. BEGIN TO IDENTIFY WHO
IS NEEDED ON A PROJECT TEAM.
• KEY OUTPUTS OF THIS PHASE ARE:
- DEVELOP PROJECT CHARTER
- DEVELOP PRELIMINARY SCOPE STATEMENT
- IDENTIFICATION OF ALL STAKEHOLDERS
- DIVIDE THE PROJECT INTO PHASES

PLANNING PHASE
WHAT IS PROJECT MANAGEMENT
• ONE OF THE LARGEST AND MOST IMPORTANT
PROJECT MANAGEMENT IS THE DISCIPLINE OF INITIATING, PHASES OF EVERY PROJECT. THE PROJECT MANAGER
PLANNING, EXECUTING, CONTROLLING, AND CLOSING THE WILL DETERMINE THE TEAM, IDENTIFY ROLES AND
WORK OF A TEAM TO ACHIEVE SPECIFIC GOALS AND MEET RESPONSIBILITIES AND SOLIDIFY A SCOPE
SPECIFIC SUCCESS CRITERIA. STATEMENT.
• AT THIS PHASE THE PROJECT MANAGER WILL BEGIN
PROJECT LIFE CYCLE TO DEVELOP DIFFERENT PROJECT PLANS.
• TO PROVIDE THE BASIC FRAMEWORK FOR MANAGING A • THEY CONSIST OF: –
PROJECT. - COMMUNICATION PLAN (HOW WILL YOU
COMMUNICATE TO YOUR TEAM, TO YOUR
• THIS IS COMPOSED OF 4 OR 5 PHASES BASED ON THE STAKEHOLDERS?) RISK PLAN (HOW WILL
STANDARDS OF THE PROJECT MANAGEMENT INSTITUTE RISKS BE DOCUMENTED HOW WILL THEY
BE ESCALATED?)
PROJECT LIFE CYCLE - TESTING PLAN; PROJECT SCHEDULE
THE 5 PHASES OF PROJECT MANAGEMENT IS ALSO CALLED THE (TIMELINE)
PROJECT LIFECYCLE. THE 5 PHASES OF PROJECT MANAGEMENT - DEVELOP A WBS – WORK BREAK DOWN
CONSIST OF: STRUCTURE A WORK BREAK DOWN
STRUCTURE IS KEY BECAUSE IT BREAKS
• PROJECT INITIATION PHASE DOWN THE WORK INTO MANAGEABLE
• PROJECT PLANNING PHASE WORK ACTIVITIES AND/OR TASKS.
• EXECUTION PHASE
• MONITORING AND CONTROL PHASE
PLANNING PHASE
• PROJECT CLOSEOUT PHASE
THE NUMBER OF OUTPUTS FOR THE PLANNING PHASE IS
LARGE AND THAT IS WHY THE PLANNING PHASE SHOULD BE
GIVEN ADEQUATE TIME FOR PLANNING.

*PLEASE KEEP IN MIND THAT THIS PHASE WILL HAVE IS AN

ITERATIVE PROCESS. EVERYTHING WILL BE REVISED UNTIL
ALL PARTIES AGREE ON THE OUTPUTS AND FORMAL APPROVAL
IS GIVEN.

TRIPLE CONSTRAINT IS THE METHODOLOGY THAT IF THERE IS

A CHANGE IN COST, THEN THE CHANGE WILL IMPACT
SCHEDULE OR THE SCOPE AND VICE VERSA.

INITIATION PHASE

TRIPLE CONSTRAINT
• THE TRIPLE CONSTRAINT IS THE COMBINATION OF
THREE MOST SIGNIFICANT ATTRIBUTES OF SCOPE,
COST AND TIME OF PROJECT MANAGEMENT.
• THE FURTHER REFINEMENT HAS ADDED THE
ADDITIONAL CONSTRAINT OF QUALITY IN THE PM
TRIANGLE.
• THESE PARAMETERS ARE OFTEN USED TO MEASURE
THE PERFORMANCE OF THE PROJECT AND ALSO
DECIDE SUCCESS OR FAILURE OF THE PROJECT.
• CHANGE IN ANY SIDE OF THE TRIANGLE AFFECTS THE
OTHER SIDES OF THE TRIANGLE.
• THE PRIORITY IN THE TRIPLE CONSTRAINT IS
DECIDED BY THE PROJECT SPONSOR.
PLANNING PHASE
KEY OUTPUTS OF THIS PHASE ARE:
- CREATE WBS AND WBS DICTIONARY
- DEVELOP SCHEDULE
- DEVELOP BUDGET. DETERMINE ROLES AND
RESPONSIBILITIES
- DEVELOP COMMUNICATION PLAN
- DEVELOP RISK PLAN
- CREATE PERFORMANCE MEASUREMENT BASELINES
- DEVELOP PRELIMINARY SCOPE STATEMENT
- TEST PLAN. DETERMINE THE CRITICAL PATH
- PREPARE PROCUREMENT DOCUMENTS
- CREATE PROCESS IMPROVEMENT PLAN
- GAIN FORMAL APPROVAL OF ALL PLANS AND KEY
DELIVERABLES
EXECUTION PHASE
• THIS PHASE IS WHERE YOU DO THE “WORK” OR
EXECUTE THE PLAN. THIS PHASE TYPICALLY
REQUIRES THE MOST AMOUNT OF TIME SINCE THE
MAJORITY OF THE WORK IS DONE IN THIS
TIMEFRAME.
• YOU WILL SOLIDIFY THE TEAM; CONDUCT
TEAMBUILDING EXERCISES. HOLD PROGRESS AND
STATUS MEETINGS
• FOLLOW THE PROCESSES IN YOUR PROJECT PLANS.
• RECOMMEND CHANGES AND CORRECTIVE ACTIONS.
• CONTINUOUS IMPROVEMENT
• KEY OUTPUTS OF THIS PHASE ARE:
- SIGNOFF THAT KEY MILESTONES
ARE COMPLETE.
- DOCUMENTED PERFORMANCE
REPORTS
MONITOR AND CONTROLLING PHASE
• THE PHASE WHERE RESULTS DERIVED FROM YOUR
NEW PROCESS OR PRODUCT ARE COMPARED TO THE
METRICS YOU OUTLINED IN YOUR PERFORMANCE
PLAN.
• IMPLEMENT YOUR CHANGE CONTROL PROCESS
• DETERMINE VARIANCES AND IDENTIFY IF THEY
WARRANT CORRECTIVE ACTION OR CHANGE
• FACILITATE CONFLICT RESOLUTION
• USE ISSUE LOGS
• KEY OUTPUTS OF THIS PHASE ARE:
- RECEIVE ALL SIGNOFFS THAT
WORK IS COMPLETED AS PER
REQUIREMENTS. –
- ARCHIVE ALL PROJECT ASSETS
- CREATE AND DOCUMENT LESSONS
LEARNED
-
PROJECT CLOSURE PHASE
• THIS IS THE FINAL PHASE OF THE PROJECT LIFE
CYCLE.
• DEVELOP CLOSURE PROCEDURES. DOCUMENT FINAL
PERFORMANCE REPORTING
• HANDOFF COMPLETED PRODUCT. RELEASE
RESOURCES.
• COMPLETE CONTRACT CLOSURES.
• KEY OUTPUTS OF THIS PHASE ARE:
- RECEIVE ALL SIGNOFFS THAT WORK
IS COMPLETED AS PER
REQUIREMENTS.
- INDEX AND ARCHIVE ALL PROJECT
ASSETS
- CREATE AND DOCUMENT LESSONS
LEARNED
CELEBRATE PROJECT SUCCESS!
 PRECEDENCE DIAGRAMMING METHOD (PDM) IS A STRATEGY
FOR DEVELOPING A PROJECT SCHEDULE NETWORK DIAGRAM
THAT UTILIZES NODES TO REPRESENT ACTIVITIES AND
ASSOCIATES THEM WITH PROJECTILES THAT ILLUSTRATE THE
DEPENDENCIES. NB. DPWH D.O. 133, S. 2015

USE OF SOFTWARE

• THERE ARE SEVERAL PROJECT MANAGEMENT

SOFTWARES IN THE MARKET.
• COMMON PAID SOFTWARE IS MS PROJECT. THE CRITICAL PATH (OR PATHS) IS THE LONGEST PATH (IN
• FREE PROJECT MANAGEMENT SOFTWARE TIME) FROM START TO FINISH; IT INDICATES THE MINIMUM
TIME NECESSARY TO COMPLETE THE ENTIRE PROJECT.

• PROJECTLIBRE IS AN OPEN SOURCE, FREELY

AVAILABLE PROJECT MANAGEMENT SOFTWARE
SYSTEM INTENDED ULTIMATELY AS A STANDALONE
REPLACEMENT FOR MICROSOFT PROJECT.
• CURRENTLY, PROJECTLIBRE IS CERTIFIED TO RUN ON
LINUX, MACOS AND MS WINDOWS.IT IS RELEASED
UNDER THE COMMON PUBLIC ATTRIBUTION LICENSE
(CPAL) AND QUALIFIES AS FREE SOFTWARE
ACCORDING TO THE FREE SOFTWARE FOUNDATION.

COMMON TERMS

BRAINSTORMING- THE GATHERING OF IDEAS RELATED TO

PROJECT AND PRODUCT REQUIREMENTS.

WORK BREAKDOWN STRUCTURE -A HIERARCHICAL

GANTT CHART- A VISUAL VIEW OF TASKS SCHEDULED OVER
DECOMPOSITION OF THE TOTAL SCOPE OF WORK TO BE
TIME.
CARRIED OUT BY THE PROJECT TEAM TO ACCOMPLISH THE
PROJECT OBJECTIVES AND CREATE THE REQUIRED
DELIVERABLES.

S-CURVE - AN S-CURVE IS A MATHEMATICAL GRAPH THAT
DEPICTS RELEVANT CUMULATIVE DATA FOR A PROJECT—SUCH
AS COST OR MANHOURS—PLOTTED AGAINST TIME.
------------------------------------------------------------------------------------
GEORGE TERRY- POSDCON
PLANNING
ORGANIZING
STAFFING
DIRECTING
CONTROLLING
1. ILANG PERCENT ANG NAKALAAN FOR CONTINGENCY PLAN?
ANS: 5-10%
2. ANONG TAWAG SA PAGLILIPAT NG EQUIPMENT, SUPPLIES SA
SITE?
ANS: MOBILIZATION
3. ANONG IBIGSABIHIN NG PERFORMANCE BOND OR
CONSTRUCTION BOND?
A FINANCIAL GUARANTEE THAT THE TERMS OF A CONTRACT
WILL BE HONORED. IF ONE PARTY TO A CONTRACT CANNOT
COMPLETE THEIR OBLIGATIONS, THE BOND IS PAID OUT TO
THE OTHER PARTY TO COMPENSATE FOR THEIR DAMAGES OR
COSTS.
WHAT IS A VARIATION ORDER? A VARIATION ORDER REFERS
TO ANY INCREASE/DECREASE IN QUANTITIES WITHIN THE
GENERAL SCOPE OF THE PROJECT AS BID AND AWARDED, IN
ANY OF THE FOLLOWING ASPECTS: INTRODUCTION OF NEW
WORK ITEMS THAT ARE NOT INCLUDED IN THE ORIGINAL
CONTRACT; OR.
A SHALLOW WELL IS A HOLE WHICH HAS BEEN DUG, BORED,
DRIVEN OR DRILLED INTO THE GROUND FOR THE PURPOSE OF
EXTRACTING WATER IS A WELL. A WELL IS CONSIDERED TO BE
SHALLOW IF IT IS LESS THAN 50 FEET DEEP. THE SOURCE OF A
WELL IS AN AQUIFER.
DEEP WELL MAY REFER TO: A WATER WELL, AN EXCAVATION
OR STRUCTURE CREATED TO ACCESS GROUNDWATER IN
UNDERGROUND AQUIFERS. DEEP WELL DRILLING, THE
PROCESS OF DRILLING AN OIL OR GAS WELL TO A DEPTH OF
10,000 FEET OR MORE.
OCMP - OVERHEAD, CONTINGENCY , MISCELLANEOUS
(OPTIONAL), PROFT
WHAT TEMPORARY FACILITIES DO YOU NEED ON
CONSTRUCTION SITES?
TEMPORARY FACILITIES. E.G. A SITE OFFICE, TOILETS, AND
OTHER WELFARE FACILITIES.
TEMPORARY FACILITIES AND THE NECESSARY CONTROLS FOR
THE PROJECT INCLUDING UTILITIES, TELEPHONE, SANITARY
FACILITIES, FIELD OFFICE, STORAGE SHEDS AND BUILDING,
SAFETY REQUIREMENTS
PROJECT CHARTER- PROJECT CHARTER IS A FORMAL SHORT
DOCUMENT THAT STATES A PROJECT EXISTS AND PROVIDES
PROJECT MANAGERS WITH WRITTEN AUTHORITY TO BEGIN
WORK. A PROJECT CHARTER DOCUMENT DESCRIBES A PROJECT
TO CREATE A SHARED UNDERSTANDING OF ITS GOALS,
OBJECTIVES AND RESOURCE REQUIREMENTS BEFORE THE
PROJECT IS SCOPED OUT IN DETAIL.
-PUNCHLIST- AFTER MAGAWA NG CONSTRUCTION MERON
PANG FINAL INSPECTION
EXAMPLE: KUNG NA FURNISH N ABA LAHAT NG WALLS? ETC…
-STAKEHOLDERS- LAHAT NG TAONG INVOLVE SA
CONSTRUCTION
-OCCUPANCY PERMIT - BUILDING OFFICIAL
- PAG DI NA MEET YUNG EXACT TIME SISINGILIN KA NG
LIQUEDATED DAMAGE
-YUNG MGA WALA NA SA CONTRACT NA ADDITIONAL WORKS,
DYAN PINAPASOK SA SCOPE CREEP
GROUP 1

1. IS IT POSSIBLE NOT TO DO PRE-CONSTRUCTION IN A

PROJECT?

ANS. (YES. IT DEPENDS ON THE SIZE OF A PROJECT. IT IS

USUALLY NOT APPLIED IN SMALL SCALE PROJECTS E.G.
RESIDENTIALS)

2. IN WHAT STEPS OF PRE-CONSTRUCTION DOES THE

CONTRACTOR INVOLVED IN A PROJECT?

ANS.
- PROCUREMENT/BIDDING
- CONSTRUCTION

3. WHAT ARE THE STEPS OF A BIDDING PROCESS?

ANS.
1. INVITATION TO BID
2. PRE-BID
3. SUBMISSION AND RECEIPTS OF BIDS
4. BID EVALUATION AND RATING
5. POST-QUALIFICATION
(CHECKING THE FINISHED PROJECTS MADE BY THE
CONTRACTOR AS WELL AS THE AVAILABILITY OF EQUIPMENTS,
TOOLS, ETC.)

6. BID SELECTION
NOTE: THE SELECTED BIDDER WILL THEN RECEIVE (NOA -
NOTICE OF AWARD) AND WILL WAIT FOR THE (NTP - NOTICE
TO PROCEED) TO BE RELEASED BEFORE STARTING THE
CONSTRUCTION.

GROUP 4: SITE LAYOUT PLAN

1. IT IS THE TRANSPORT OF CONSTRUCTION MATERIALS FROM

ONE PLACE TO ANOTHER OR TO CONSTRUCTION SITE.
-MOBILIZATION

2. IS IT ALLOWED TO USE THE ZONING SETBACK FOR

TEMPORARY FACILITIES DURING CONSTRUCTION?
-YES, BECAUSE TEMPORARY FACILITIES ARE UTILIZED AND
BUILT DURING CONSTRUCTION ONLY. IT WILL BE PERMISSIBLE
AS LONG AS IT WILL NOT POSE HAZARD OR NUISANCE TO
NEIGHBORING PROPERTIES.

3. IT IS A TYPE OF WATER SOURCE THAT PROVIDES WATER

SUPPLY FOR CONSTRUCTION ACTIVITIES.
-DEEP WELL