Lesson 1: Fundamentals of Management

Can you imagine an army without a

captain or a colonel?
A basketball team without a
coach?
An orchestra without a conductor?
Can a business organization
operate without a manager?
Management
A company cannot achieve its
business targets without
managers planning, leading,
organizing and controlling its
people.
Management:Definition and
Function
Definitions of Management
Management comes from the Italian word maneggiare,
which means “to handle”
According to Mary Parker Follet, an American Social
worker, management consultant and philosopher, who
is known as the “Mother of Modern Management”.

"Management is the art of getting things done

through people."
Definitions of Management
According to Frederick Taylor, who is known as the
“Father of Scientific Management”, he define
management as:
“An art of knowing what to do, when to do and see
that it is done in the best and cheapest way.”
Theories of Management
Frederick W. Taylor’s Principles of
Scientific Management
Henri Fayol’s Administrative
Principles (14 Principles of
Management)
Elton Mayo’s Hawthorne Studies
Frederick W. Taylor (father of Principles of
Scientific Management)
Main Ideas contributed;
Scientific Management
 Determination in finding the “one best way”
 Job motion study
 Careful selection and training of workers
 Aimed for worker’s productivity
PIG IRON EXPERIMENT
A well known example of the scientific management
theory is the pig iron experiment. Iron was loaded
onto rail cars by workers each lot weighing 92
pounds and known as a "pig". On average 12.5 tons
were loaded onto the rail cars but Taylor believed
that scientific management could be used to
increase this to 47/48 tons per day. Through
experimenting with various procedures and tools
Taylor achieved this. This is how he did it:
PIG IRON EXPERIMENT
Taylor ensured that he matched
each of the jobs to each of the
workers skills and abilities.
Taylor ensured that he provided
the workers with the correct tools.
Taylor ensured that he provided
workers with clear instructions
about how to do each job. Taylor
ensured that the workers
understood the instructions and
then Taylor ensured that the
workers followed the instructions
exactly as he had explained.
Taylor then created worker
motivation by providing a
significantly higher daily wage.
It is believed that through the use of scientific
management Taylor increased productivity on the
shop floor by 200 percent. Taylor's ideas and
thoughts were adopted throughout the world
including in France, Russia and Japan. In today's
world scientific management has been merged
with other ideas and is used by managers in the
form of time and motion studies to eradicate
wasted motions, incentive schemes based on
performance and hiring the best qualified workers
for each job.
Henri Fayol (Father of Administrative
Principles)
14 principles of Management are statements that
are based on a fundamental truth. These
principles of management serve as a guideline
for decision-making and management actions.
They are drawn up by means of observations
and analyses of events that managers
encounter in practice. Henri Fayol was able to
synthesize 14 principles of management after
years of study.
14 Principles of Management
Elton Mayo (Forerunner of the behavioral
movement in management)
Competitive Advantage
Findings show that business sustainability includes
management of the competitive advantage concepts.

COMPETITIVE ADVANTAGE – pertains to

distinguishing features or characteristics of a business
organization that enable it to perform better than rival
organizations.
Aspects of Competitive Advantage
1. COST - the amount or equivalent paid or charged for
something.

COMPETITIVE
Aspects of Competitive Advantage
2. INNOVATION – introduction of new products or
services.
Aspects of Competitive Advantage
3. QUALITY – ability of a product or service to meet
customer needs.

•Department of Trade and Industry

(Bureau of Product Standards)
•Department of Health (Food and
Drug Administration)
•Department of Transportation and
Communication
Aspects of Competitive Advantage
4. SERVICE – a requirement for all customers
which translates to “having what they want
when they need it”.
5. SPEED – how fast something moves or
operates.
RULES OF ENGAGEMENT