Chapter 05:

Fundamentals of Management
 What is Management?
“Management is the art of getting
things done through people.”
-Mary Parker Follett
Management Scholar & Theorist
The application of planning, organizing, staffing,
directing, and controlling functions in the most
efficient and effective manner possible to accomplish
objectives.
 Key Management Functions
Management Theorists have identified five primary functions
of managers. These functions are:
 Key Management Functions

1. Planning: The management function of establishing

objectives and developing plans to accomplish them.

Planning essentially means deciding in advance what is to

be done. Of course, plans alone do not bring about desired
results; but without a plan and a set of objectives,
managerial actions are likely to produce confusion.

2. Organizing: The management function of grouping

people and assignments to carryout job tasks and the
mission.
 Key Management Functions

3. Staffing: The management function of selecting, placing,

training, developing, and compensating subordinates. A
manager’s staffing activities also include the evaluation and
appraisal of performance.

4. Directing: The management function of initiating action –

issuing directives, assignments and instruction. Directing also
means building an effective group of subordinates who are
motivated to perform. It means getting subordinates to work to
accomplish objectives. Directing can be accomplished through
leadership.
 Key Management Functions

5. Controlling: The managerial function of checking to

determine whether employees are following plans and progress
is being made, and of taking action to reduce discrepancies.
The core idea of control is to modify behavior and performance
when deviations from plans are discovered. Controlling is
concerned with making certain that plans are correctly
implemented.
The process of controlling has four steps:
Set standards for time, quality, quantity and so on.
Measure performance (results).
Compare performance to standards.
Make necessary modifications.
 Concept of Leadership

Leadership: The process of influencing the activities of

an individual or group toward the accomplishing
objectives.
 Types of leadership
1. Autocratic:
Close suppression.
Manager delegates as little authority as possible.
Manager provides detailed instruction.

2. Democratic:
General suppression.
Manager consults with subordinates about job-related
issues.
 Types of leadership

3. Laissez Faire:
Free-rein (complete freedom); Manager exists as a contact
person who provides information and guidance.
Manager avoids power and responsibility by giving
assignments and support but staying out of the group’s way
(may be appropriate when the manager have little
knowledge of that certain field; e.g. business graduate
managing a team of engineers).
 Levels of Management
Three (3) distinct levels of management:
 Levels of Management
1. Top Level/Executive Level: (What to do): Engaged
in charting overall mission, strategy, objectives of the
business; e.g. President, CEO, Partner, Vice-President,
Director, Chancellor/ Vice-Chancellor.
2. Middle Level (How to do): Receive the mission,
Strategy, objectives from top executive level and
translate them into specific action plans (for the first-
line managers). They are a link between the Executive
level and the first-line level managers; e.g. Plant
Manager, Dean, Project Director, Regional Manager.
 Levels of Management
3. Operational/First Line level (Just to do): Directly
responsible for coordinating the work of employees/
non-managers. They must work with non-managers or
employees and motivate them. They are link between
the Middle-level management and non-managers; e.g.
First-line supervisor, Product Manager, Chairperson
of Department.
 Managerial Roles
Role: A set of expected behaviors. (E.g. Student,
Teacher, Father, Bother, etc. The person who has
the role of a father, is expected to be kind,
understanding, helpful, and a good example to his
child etc)
A manager has three (3) major roles to perform:
(I.) Interpersonal.
(II.) Informational.
(III.) Decisional.
 Managerial Roles
 Interpersonal Roles: The manager must be in
frequent contact with others to fulfill the
organization’s objectives.
 Informational Roles: The manager is the nerve
center, or focal point of a group. Manager process
information flowing to and from the group.
 Decision Roles: Managers must accept responsibility
for decision making.
 Core Management Skills

Management skill is the ability to use knowledge,

behaviors, and aptitudes to perform a task.
According to Robert Katz, any manager who wants to
become a successful manager in managing his/her
organization must possess the following three (3) core
management skills:
1. Conceptual Skills
2. Human Relations Skills
3. Technical Skills
Core Management Skills
1. Technical Skills: Skills involved in making a product
or providing a service.
2. Human Relations Skills: The ability to relate and
interact with subordinates, peers, superiors and
customers or clients.
3. Conceptual Skills: The ability to organize and
integrate information to better understand the
organization as a whole.
Core Management Skills