INTRODUCTION TO

ORGANIZATION
MANAGEMENT
LEARNING OBJECTIVES

• Define management and discuss its key features

• Conclude management is an art, a science, a
profession and a universal activity
• Comment on management v/s administration
• Outline classification of managerial functions and
suggest suitable functions
LEARNING OBJECTIVES

• Understand managerial role and skills

• Overview functional areas of management
• Comment on professionalization of management in the
Philippines
• Analyze relationship between management theory and
practice.
 INTRODUCTION
• Management relates to three aspects, such as
FUNCTIONS, RESOURCES (both physical and
human), and SITUATION.
• Management functions (PLANNING, ORGANISING,
STAFFING, DIRECTING, AND CONTROLLING)
create a system of coordinating and using the resources
to deal with the situation (ex. To exploit emerging
opportunities and to face challenges, threats or
adversities)
 INTRODUCTION

• Closely related to managing people within the

organization.
• Management involves the way the managing body ( the
government, people, business environment, different
stakeholders) takes decisions, deals with employees,
and interacts with the business environment.
IN NUTSHELL, MANAGEMENT IS
COMPOSITE OF: 

• the CONCEPTS the managing body formulate.

• The BUSINESS PHILOSOPHY, it pursues in
their daily life
• The FUNCTIONS it performs
• The PROCESSES it follows
IN NUTSHELL, MANAGEMENT IS
COMPOSITE OF: 
• The THEORIES it generates
• The PRINCIPLES it observes
• The DECISIONS it makes
• The ACTIONS it takes
 MANAGEMENT

• ECONOMIC PERFORMANCE – achieving a high

operational efficiency
• DIRECTING PEOPLE – making the people work
•  DECISION-MAKING – taking and implementing
decisions on various aspects
• FUNCTIONS – various functions like planning,
organizing, staffing, directing and controlling that a
manager has to perform
MANAGEMENT

• Koontz and O’Donnel: “Management is art of

getting things done through and with the people in
a formally organized group”.
• Peter F. Drucker: “is a multi-purpose organ that
manages business, manages managers, and
manages workers and work”.
MANAGEMENT

• Louis Allen: “ is what a manager does”.

• John F. Mee: “ Management is the art of securing
maximum results with a minimum of efforts so as
to secure maximum prosperity for the employer
and employee, and give the public the best possible
service”.
MANAGEMENT

• Koontz and Weihrich: “Is the process of designing

and maintaining an environment in which
individuals, working together in group, efficiently
accomplish selected goals”.
 NATURE / CHARACTERISTICS OF
MANAGEMENT
• Management is a Process • Integrated Activity
• Abstract Phenomenon • Management as an Art and a
• Goal Oriented Science
• Management as a Profession
• Decision-making • Management as a Universal
• Working with and through Activity
People • Multi-disciplinary Subject
• Factor of Production • Other characteristics
MANAGEMENT AS ART / OR A SCIENCE

• Art means practical know—how or skills in getting

the desired with fewer efforts, less cost and less time.
• An art consists of practical use or application of
personal skills and knowledge to achieve results
effectively and efficiently.
CONDITIONS OR CHARACTERISTICS

• Practical Know-how
• Need of Practice or Experience
• Element of creativity
• Results Orientation
• Personal Element (Personal Skills)
• Qualities and Qualifications
A) MANAGEMENT AS A SCIENCE

• A science is a fact-based and critically tested systematized

body of knowledge pertaining to a specific field. The
knowledge is accumulated through study, experience, and
experimentation. The scientific knowledge produces
impersonal results, and it can be empirically tested and
universally applied.
CONDITIONS OR CHARACTERISTICS

• Impersonal Results
• Clarity of Concepts
• Empirical Confirmation or Empirically tested knowledge
• Universal Applicability
• Cause and Effect Relationship
• Internal Consistency among Concepts, Hypotheses, Principles and
Theories
B) MANAGEMENT AS A PROFESSION

• Profession means an occupation based on

specialized knowledge, skills, and training. The use
of such knowledge is not for self-satisfaction, but for
a larger interest of society for a free, and success of
which cannot be measured by money alone.
CONDITIONS OR CHARACTERISTICS

• Existence of Specialized Knowledge

• Service Motive
• Need of Formal Education and Training
• Personal Factor
• Codes of Conduct/ Ethical Practice
• Continuous Development
C.) UNIVERSALITY OF MANAGEMENT

• The basic question: is management universal?

Universality of management indicates that
managerial knowledge and skills can be equally
applied and/or transferred from one company to
another, from one person to another, and from
one country to another.
 ARGUMENTS FOR AND AGAINST UNIVERSALITY OF MANAGEMENT

For Against
1. Management as a Process is 1. Difference in Objectives
universal
2. Management fundamentals 2. Difference in Resource Ability
and techniques
3. Need of Group efforts and 3. Difference in Managerial
Objectives Philosophies
  4. Difference in Culture
  5. Difference in Situations
D.) MANAGEMENT & ADMINISTRATION

• Both terms are similar and can be used

interchangeably;
the difference lies in their use with reference
to different fields of human activities.
D.) MANAGEMENT & ADMINISTRATION

• Administration with decision making; and

management with execution function. (Oliver Sheldon)
At present, there are three viewpoints on the subject:
• Administration is above management
• Administration is a part of management
• Administration and management are the same
E.) LEVELS OF MANAGEMENT

• Levels in management refer to the classification of

managerial functions on the basis of their relative
importance.
• The Philippine Government Structure
 F.) MANAGEMENT PROCESS OR FUNCTIONS OF MANAGEMENT

Names of Contributors Functions or steps in the Management Process

Henry Fayol Planning, organizing, commanding, coordinating and

controlling
Luther Gulick POSDCORB Formula- planning, organizing, staffing,
directing, coordinating, reporting and budgeting.
R.C. Davis Planning, organizing and controlling
E.F.L. Brech Planning, organizing, motivating, coordinating and
controlling
Koontz and o’Donnel Planning, organizing, staffing, leading, and controlling
 F.) MANAGEMENT PROCESS OR FUNCTIONS OF MANAGEMENT

Names of Contributors Functions or steps in the Management Process

Dr. Geaorge R. Terry Planning, organizing, actuating, and controlling

Lyndall Urwick Planning, organizing, commanding, coordinating,
communicating, forecasting, and investigating
Peter F. Drucker Objective Setting, decision-making, organizing and
motivating
Modern Views Planning, organizing, staffing, directing and controlling
PLANNING

Primary functions of management

• Determines the future course of action by deciding
what to do (type of work), why to do (objectives), when
to do (time), where to do (place or location, how to do
(methods and procedures) and who are going to do
(people).
ORGANIZING

Second function of management

• The process of organizing includes the ff. steps:
• Specifying obj.
• Enumerating the activities
• Classifying or grouping the activities
ORGANIZING

• Assigning the responsibility

• Delegating the authority
• Establishing interrelationships
• Preparing organization chart and manuals
 STAFFING

• Concerned w/ manning the positions created by

organizing.
•Involves the ff. activities:
•Manpower planning, determining the need for people
•Recruitment, selection and induction of ees
•Training and development of ees
STAFFING

•Wage and salary administration

•Promotion and transfer
•Performance appraisal
•Grievance handling and maintaining good
relations.
•Security and welfare activities
DIRECTING

• Also known as commanding or executing function

• Main directing tools or techniques include:
• Leadership
• Motivation
• Communication
• Supervision
 CONTROLLING

• Last but the critical function of management.

The process of controlling involves the ff. steps:
• Setting standards
• Measuring actual results
• Comparing actual results with expected results
• Identifying deviation bet. Actual results and expected results
• Taking corrective actions so that actual results match with
expected results.
SIGNIFICANCE OF MANAGEMENT

• Achieving goals and objectives

• Optimum utilization of resources
• Efficient running of business organization
• Sound organizational structure
• Smooth functioning of organization
• Image, reputation and goodwill 
SIGNIFICANCE OF MANAGEMENT

• Successful implementing change

• Management role for conflict and stress
• Better industrial relations others
 OBJECTIVES OF MANAGEMENT

Economic
• To earn adequate profit/fair rate of ROI
• To survive and grow continuously
• To achieve high operational efficiency
• To use up to date technology
• To strengthen competitive edge of the company
• To protect company’s economic interest in all possible
ways
 OBJECTIVES OF MANAGEMENT

Social
• To satisfy customers in view of their long-term
interests
• To improve living standards of people
• To ensure fair dealing with employees and other
stakeholders
• To contribute liberally in activities of social
significance
 OBJECTIVES OF MANAGEMENT

Social
• To refrain from any activities, contracts, or
commitments that affect the society adversely
• To undertake necessary steps for the well-being of the
society
• To create and maintain firm’s image and reputation in
the society
 OBJECTIVES OF MANAGEMENT

Human
• To employ qualified, capable and experienced employees
in the org.
• To undertake necessary steps for training and
development of the HR
• To utilize creative & innovative capabilities of ees
• To maintain staff stability over time
• To support ees in all possible ways for the job satisfaction
 OBJECTIVES OF MANAGEMENT

Human
• To build and maintain healthy human relations with
people in the org.
• To ensure provision for sufficient ees’ welfare
activities
• To formulate & implement attractive motivation
policies to boost their morale
 OBJECTIVES OF MANAGEMENT

National
• To pay levies honestly & regularly to help the nation
undertake developmental activities.
• To support govt. in implementing policies in the
interest of the nation
• To extend all possible cooperation for national unity
and integrity
 OBJECTIVES OF MANAGEMENT

National
• To help the nation during natural calamities and man-
made calamities
• To use influence w/ international level agencies in
favour of the nation
• To help nation achieve global recognition, fame and
credibility
 OBJECTIVES OF MANAGEMENT

National
• To refrain from any act that affects national interest
adversely
• To ensure careful use of natural resources and
conservation of ecological balance
• To donate liberally for the activities aimed at overall
development of the nation.
 OBJECTIVES OF MANAGEMENT

Other
• To win/achieve national and international awards,
certs and prizes
• To create a suitable structure for the org.
• To represent the nation achieve global significance
 MANAGERIAL ROLES (VIEWS OF MINTZBERG)

Responsible in carrying out all the function necessary

to ensure a better performance of the entire
organization.

Performing functions indicates managerial role.

 MANAGERIAL ROLES (VIEWS OF MINTZBERG)

Henry Mintzberg has identified ten roles in three sets

of functions that a manager has to perform. These are:
• Interpersonal roles
• Informational roles
• Decisional Roles
 HENRY MINTZBERG’S MANAGERIAL ROLES

Interpersonal Informational Decisional

Roles Roles Roles
• Figurehead • Monitor • Entrepreneur
• Leader • Disseminator • Disturbance
• Liaison • Spokesman Handler
• Resources
Allocator
• Negotiator
 PRODUCTION MANAGEMENT

• Constitutes one of the key activities of business as the

goal can be achieved only when something is
manufactured.
• Also called manufacturing management.
• The purpose of production management is to carry out all
the necessary activities to manufacture a desired product
that can easily be sold to the customers.
 PRODUCTION MANAGEMENT

Deals with the ff. aspects:

• Product planning and design
• Plant location and layout
• Material handling/management
• Plant maintenance
• Production control
• Establishing a suitable structure of organization for
production department
• Maintaining healthy relations within and outside the org.
 MARKETING MANAGEMENT

• Deals with selling the products.

• It can be defined as the process of achieving the desired
exchange with target market.
• Deals with the following:
• Analyzing business environment and selecting marketing
opportunities.
• Defining and selecting target market
 MARKETING MANAGEMENT

• Preparing a broad marketing program, including 4Ps

(product, price, promotion and place of distribution)
• Preparing strategies to respond to competitors effectively
• Designing an appropriate organization structure of the
marketing dept.
• Maintaining a good relations within and outside the
organization
 FINANCIAL MANAGEMENT

• Considered as the life blood of business

• All business start and end with finance
• Deals with the following aspects:
• Determining needs of finance and raising
• Capital budgeting or utilization of funds effectively and
efficiently
• Management of fixed assets
 FINANCIAL MANAGEMENT

• Working capital management, including of cash,

inventory and receivables and payables
• Profits management
• Systematic recording of transactions, or book keeping and
accounting
• Preparing a suitable organization structure for financial
department
• Maintaining good relations within and outside the
organization
 PROFESSIONALIZATION OF MANAGEMENT

• Restoring Trust and Building Integrity in Government:

Issues and Concerns in the Philippines and Areas for
Reform by Alex B. Brillantes Jr. and Maricel T. Fernandez
• Unresponsive governance has been responsible for the
continuing decline of trust in government.
• The article introduces a framework of areas or reform
imperatives with general objective of restoring trust in the
government.
 PROFESSIONALISATION OF MANAGEMENT

These areas include the ff:

• Reforms in institutions and structures, including reforms
in organizations, processes and procedures
• Reforms in mindsets, paradigms and behavior
• Reforms in leadership at various levels
• Reforms among citizens
 MANAGEMENT THEORY AND MANAGEMENT PRACTICE

In elation to management theory and practice, there are

four issues:
• Failure of Management Theory
• Relevance of Managerial Knowledge
• Role of experience
• Role of Management Principles
FAILURE OF MANAGEMENT THEORY

• Time gap
• Drastic Change
• Lack of Proper Understanding
• Individual and Group Applicability
• Lack of Universal Applicability
• Irrelevant Theory
• Isolated Approach
FAILURE OF MANAGEMENT THEORY

• Time gap
• Drastic Change
• Lack of Proper Understanding
• Individual and Group Applicability
• Lack of Universal Applicability
• Irrelevant Theory
• Isolated Approach
ROLE OF MANAGEMENT PRINCIPLES

Management principles can contribute to

management practice in following ways:
• To understand exact nature of management
• To increase or improve efficiency
• To materialize other’s experience
• To promote researches and search for better
principles
ROLE OF MANAGEMENT PRINCIPLES

Management principles can contribute to

management practice in following ways:
• To attain social objectives
• To train managers
• To globalize management practices
EFFECTIVE MANAGEMENT

What does make the manager an effective one?

Who can be an effective manager?
Factually, effectiveness is a multi-dimensional
concept. Mostly, managerial effectiveness is defined
in terms of an organization’s ability to achieve goals.
EFFECTIVENESS DEFINED

The degree to which the organization is able to

achieve its stated goals successfully within given
resources.
NATURE OF EFFECTIVENESS

• Effectiveness is a confused term as people have

different own viewpoints and expectations
• Effectiveness implies an organization’s goal-
achieving behavior
• It is the ability of the organization to achieve its
goal-achieving behavior
• Effectiveness and efficiency are different
NATURE OF EFFECTIVENESS

• Overall effectiveness can be measured in terms of

three levels: individual, group, effectiveness
• Technology, strategic choice, structure, culture,
and process carry significant influence on
effectiveness
• Several criteria are used to judge how far the
organization is effective.
• Effectiveness can be measured absolutely.
EFFECTIVENESS AND EFFECIENCY

• Efficiency is the ability to do things right while

effectiveness is doing the right things.
• Efficiency implies producing more outputs with
given inputs or reducing inputs to produce the
same level of outputs.
• In short, to achieve stated objectives in time with
given resources and with minimum wastage is
EFFICIENCY
EFFECTIVENESS AND EFFECIENCY

• EFFECTIVENESS is a comprehensive term. It

refers to the achievement of goals by performing
various functions and using resources efficiently.
DETERMINANTS OF EFFECTIVE MANAGER

• Quality of manager
• The management process
• Environmental process
• Resulting outcomes
ASSIGNMENT: TO BE SUBMITTED NEXT MEETING

1. What is management? Discuss its main

characteristics?
2. “Management is both a science and an art” do you
agree? Why?
3. Write a descriptive note on management process.
4. Explain views of Mintzberg on managerial roles
5. Differentiate effectiveness from efficiency.