Nature and Concept of

Management

Prepared by: Ronald C. Catapang, RMP, MBA, CFMP

 That’s Not My Job
This is a story about four people named Everybody,
Somebody, Anybody and Nobody. There was an important
job to be done and Everybody was sure that Somebody
would do it. Anybody could have done it, but Nobody did it.
Somebody got angry about that, because it was Everybody’s
job. Everybody thought Anybody could do it, but Nobody
realized that Everybody wouldn’t do it. It ended up that
Everybody blamed Somebody when Nobody did what
Anybody could have.
 HENRY FAYOL (1841-
1925)
Was a frenchindustrialist

Given:

Elements ofManagement-

 Planning, Organizing, Commanding, Coordination & Control

Qualities ofManager:

 Physical, Mental, Moral, General

 Education, Special Knowledge & Experience

Principles ofManagement
Fayol’s 14 Principle of Management

Division of work
Authority & responsibility
Discipline
Unity of command
Unity of direction

Subordinate of individual interest to group interest

Remuneration of personnel
Centralization
Scalar Chain
Fayol’s 14 Principle of Management

Order

Equity

Stability of tenure of personnel

Initiative

Espirit De Corps
 Division of Work
 The whole work is divided into small tasks.
 Authority and Responsibility
 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 obligation for performance
 Discipline
 Refers to obedience, proper conduct in relation to others,
respect authority etc.
 Unity of Command
 Each subordinates should receive orders and be accountable
to one superior
 Unity of Direction
 All those working in the same line of activity must understand
and pursue the same objectives.
 Subordination of Individual Interest
 Management should put aside personal considerations and put
company objectives first.
 Remuneration
 Workers must be paid sufficiently as this is a chief motivation of
employees and therefore greatly influences productivity.
 The degree of Centralization
 The amount of power wielded with the central management
depends on the company size.
 Centralization implies concentration of decision making
authority at the top management.
 Scalar Chain
 Refers to chain of superiors ranging from top management the
lowest rank.
 There should be clear line of authority from top to bottom
linking all managers at all levels.
 Order
 Ensures the fluid operation of a company through authoritative
procedure.
 Equity
 Employees must be treated kindly, and justice must be enacted to
ensure a just workplace.
 Stability of Tenure of Personnel
 The period of service should not be too short and employees
should not be moved from positions frequently.
 Initiative
 Initiative on the part of employees is a source of
strength for an organization because it provides new
ideas.
 Employees are likely to take greater interest in the
functioning of the organization.
 Esprit de Corps
 Refers to the need of managers to ensure and
develop morale in the workplace; individually and
communally.
 Key Roles
 Fayol also divided the management function into
five key roles:
 To organize
 To plan and forecast
 To command
 To control
 To coordinate
 Definition and Functions of
Management
Definition of Management

 According to Koontz,
"Management is the art of getting things done through and
with people in formally organized groups.

 According to Henri Fayol,

"To manage is to forecast and to plan, to organize, to
command, to coordinate and to control.“
In order to achieve the targeted objectives, management
must bring together all resources of the firm known as Six
M’s
Six M’s which are:
 manpower,
 money,
 machines,
 materials,
 methods
 markets
 Management is the process of utilizing the resources of
the organization in an effective and efficient manner to
attain targeted objectives through planning, organizing,
staffing, leading and controlling.

 Effectiveness is doing the right things.

 Efficiency is doing things right to avoid waste of input

resources like labor, raw materials and component parts.
 Main Characteristics of Management
 Continuous and never ending process
 Management is considered as a process because a manager plans.
organizes, directs and controls all activities of the organization
continuously
 Getting things done through people
 The activities of the firm are being done by the workers not just the
manager himself.
 Result Oriented
 Management gives importance to the best “outcomes” of its activities
 Multidisciplinary in Nature
 Management deals with people of different emotions, feelings and
aspirations
 Management uses knowledge many different subjects such as Economics,
IT, Psychology and other related fields.
 Main Characteristics of Management
 A group and not an individual activity

 Follows established principles or rules

 Management follows recognized principles like division of
work, discipline, unity of command and other roles.
 Aided but not replaced by computers

 Situational in Nature
 Managers create plans, policies and decisions based on
situations.
 Need not to be an ownership
 Main Characteristics of Management
 Both art and Science

 The practice of management is an art but it requires creativity and

ingenuity in the practical application of skills and techniques to
successfully meet advantageous results.
 since management uses body of facts and truths in its systematic
operation, so it could be also considered as science
 Management is intangible

 Uses a professional approach in work

 Dynamic in nature

 In the world of business, nothing is permanent. Almost everything

changes. Hence, management must be creative and innovative.
 Management can be defined in the following categories :

1. Management as a Process

2. Management as an Activity

3. Management as a Discipline

4. Management as a Group

5. Management as a Science

6. Management as an Art

7. Management as a Profession
 Basic Functions of Management

1. Planning
 involves selecting a course of action and specifying
how the action will be implemented to attain the
organization’s objectives.
 The outcome of planning is a strategy. Strategy is a
bunch of decisions that focuses on the
organizational goals to pursue, the actions to take
and the managing of resources towards goal
accomplishments.
 How to plan?
 Gain Knowledge of the issues

 Look into the future

 Determine the objectives

 Create flexible structures

Basic Functions of Management
2. Organizing
 is designing a formal structure of tasks and authority
in which personnel and material resources are
arranged to carry out plans and objectives.
 Organizing involves developing the organizational
structure and chain of command of the company.
 Organizational structure is a formal system visualizing
the task and reporting connections that harmonize
and inspire the members to work together for a goal
and objective achievement.
 How to Organize
 Identify activities and classify them

 Assign the duties and resources

 Delegate authority and create responsibility

 Co-ordinate authority and responsibility

Basic Functions of Management
3. Staffing
 The main purpose of staffing is to employ the
right people for the right jobs to realize the
objectives of the organization.
 Staffing includes recruitment, training and
development, performance appraisals,
promotions and transfers.
Basic Functions of Management
4. Leading
 This requires the ability to motivate and effectively
direct people. Managers assign tasks to employees,
arbitrate disputes, answer questions, solve on-the-
spot problems, and make many small decisions that
affect customers and employees.
 The trend now is empowering employees to become
self directed and self motivated.
 How to Lead
 Supervision

 Communication

 Motivation

 Leadership
Basic Functions of Management
5. Controlling
 is evaluating performance to see whether
objectives are being met and the application of
corrective actions if they are not.
 Controlling function of management is valuable
for guaranteeing all other functions of the
organization are in place and are operating
efficiently.