Dear Lord and Father of all,

Thank you for today.

Thank you for ways in which you provide for us all. For Your protection and love we thank you.
Help us to focus our hearts and minds now on what we are about to learn.
Inspire us by Your Holy Spirit as we listen and write.
Guide us by your eternal light as we discover more about the world around us.
We ask all this in the name of Jesus.
Amen.
MRS ELLEN GRACE L. ESTREMOS
TEACHER
Chapter 1 :
Fundamentals of
Management
At the end of this chapter, students are expected to:

 Understand and differentiate the fundamentals of

business organizations and management.
 Discuss and integrate the planning, organizing,
staffing, directing, and controlling functions of
management to current issues.
 NRYHE YS

NOYT NAT TONAKICG

HOJN IML EKOIOGWN

NAYNM IARLLV

IUOLC TNA
 NRYHE YS HENRY SY

NOYT NAT TONAKICG

TONY TAN CAKTIONG
HOJN IML EKOIOGWN
JOHN LIM GOKONGWEI
NAYNM IARLLV MANNY VILLAR
IUOLC TNA LUCIO TAN
 ________ _ – F o u n d e r o f S M
Investment C o r p o ra t io n , SM
s , B D O U n ib a n k
Prime Holding
I n c ., C h in a B a n k in g
Corporation
________ _ - F o u n d e r o f
Fortune T o b a c c o C o rp .,
Asia B r e w e r y , I n c ., a n d
Philippi n e A ir l in e s , I n c .
 _______ _ _ _ - F o u n de r o f
d C o rp o r a t ion a n d
Jollibee Foo
D o u b le D r a g o n
co-chairman of
properties.
 ________ _ _ - F o u n d e r o f J G
Summit Hol d i n g s , R o b in s o n s
Retail H o l d i ng s , I n c . a n d
Robinsons L a n d C o rp o r a tio n ,
Cebu Pacific.
 F o u n d e r o f
_____________-
I n c ., A ll H o m e
AllDay Marts
n M V H o l d in gs ,
Corp., Golde
& L i f e s c a p e s
Vista Land
Inc. and V is ta m a l ls I n c .
 Henry Sy – SM Investment Corporation, SM Prime
Holdings, BDO Unibank Inc., China Banking
Corporation
 Lucio Tan - Fortune Tobacco Corp., Asia Brewery,
Inc., and Philippine Airlines, Inc.
 Tony Tan Caktiong - Jollibee Food Corporation
 John Lim Gokongwei - JG Summit Holdings, Robinsons
Retail Holdings, Inc. and Robinsons Land Corporation,
Cebu Pacific
 Manny Villar- AllDay Marts Inc., AllHome Corp.,
Golden MV Holdings, Vista Land & Lifescapes
Inc. and Vistamalls Inc.
What do you think are behind the
success of
these entrepreneurs?
WHAT IS MANAGEMENT?
“Management is the art of getting things done
through and with people in formally organized
groups”.
----Harold Koontz

“Multi-purpose organ that manages business and

manages managers and manages workers and work”.
----Peter Drucker
To manage is to forecast and to
plan, to organize, to command, to
coordinate and to control”
---Henry Fayol
 Functions
(Planning, Leading, Organizing,
Controlling)

Decision
Process Making

Management
Four Functions of Management (Henry Fayol)

Leading
Organizing

Controlling
Planning
 Planning
A process of deciding in advance what has to be
done.
Deciding how to achieve your desired goals and
objectives.
This may answer the following:
•What to do?
•How to do?
•Who will do?
•When will do?
•Where you will do?
“ If you fail to Plan, you are
planning to fail”.

----Benjamin Franklin
 Organizing
 Determining what task to
be done.
 Actions to meet the goals
and objectives in a
harmonious manner.
 Organizational Structure
 Leading
 Setting up direction and
influencing others to
pursue that direction.
 Leadership is linked to
goal accomplishment in
the organization.
 Controlling
 the process of assessing
the organization's
progress toward
accomplishing its goals.
 Different Theories of Management

 Classical Theory - Traditional

 Behavioral Theory – People- Oriented
 Modern Theory – uses systematic ways
 1. Classical Management Theory
 Classical management theory is based on the belief that
workers only have physical and economic needs and
prescribes specialization of labor. Classical theories
recommend centralized leadership and decision-making
 and focus on profit maximization. Three streams of
classical management theory are - Bureaucracy (Weber)
, Administrative Theory (Fayol), and 
Scientific Management (Taylor).
 2. Behavioral Management Theory
 The behavioral management theory is focused on
the human aspects of work. They are also often
referred to as the human relations movement. These
theories aspire to gain a better understanding of
human behavior at work to improve productivity. It
focuses on behavioral aspects like motivation,
conflict, expectations, and group dynamics.
3. Modern Management Theory
 Modern management theory emphasizes the use of
systematic mathematical techniques to analyze and
understand the inter-relationship of management
and workers in all aspects. Three streams of
modern management theories are - 
Quantitative Approach, System Approach, and 
Contingency Approach.
Important Terms in Management

Cost - expenditures
Innovation - New/Unique

Quality - standard

Service - speed/quality