Lesson 1.

1
Definition and
Functions of
Management
Understanding The Nature And Concept
Of Management
This is a little
story about four
people named
EVERYBODY,
SOMEBODY,
ANYBODY, and
NOBODY.
 The scenario isn’t new.
The tendency of people to
assume, procrastinate,
e was an important job to be done, and wait for directives and rely
RYBODY was sure that SOMEBODY would do on others often lead to
NYBODY could have done it, but NOBODY did failure in acheiving the
OMEBODY got angry about that because it was
RYBODY's job. EVERYBODY thought that
goal of an organization.
YBODY could do it, but NOBODY realized that The facts remains that the
RYBODY wouldn’t do it. It ended up that success of any
RYBODY blamed SOMEBODY when organization depends on
BODY did what ANYBODY could have done.
its people, as it is
considered to be the
companys greatest
assest.
The Nature of Organization and Management

Organization Management is a twin terms

Etymology of ‘organization’
Online Etymology Dictionary:
English language in the mid-fifteenth century -In mid-15c

‘act of organizing’

Middle French Organisaton - from

Medieval Latin Organizationem - ‘system,
establishment.’

from the Greek Organon, which means

‘organ’
Etymology of MANAGEMENT:
from the Italian word “Maneggiare”
which mean “To handle”(tools or
equipment)
It derives from the Latin word “Manus”
which mean “hand” and “ agere” which
is “To act”
Definitions of Managements
Organization
⮚is a group of people who work together in
an organized way for a shared
purpose/common good.
Management
⮚is the process of coordinating and overseeing the
work performance of individuals working together
in organizations, so they could efficiently and
effectively accomplish their chosen aims or goals.
“Management is a multipurpose organ that manage
a business and manages managers and manages
workers and work.” - Peter Drucker
 What Management is.

According to Theo Heimann management can

be defined in three ways:
1. Management as a noun
2. Management as a process
3. Management as a discipline
 Management:
Arts Or Science?
 ar t.
a n d
ce
s ci en
th
i s bo
e nt
ge m
a n a
M
Planning
Involves mapping out of exactly how to
realize a specific goal.
There are two types of planning;
a.) Long range planning
b.) Short range planning
Staffing
involves thorough recruitment, selection, and
hiring of potential personnel in the
organization.
Organizing

determines what tasks must be done,

who needs to do the task and
how the tasks are to be performed.
 Leading/Directing
Involves the supervision and motivation of manager towards
his/her employees to be more productive and efficient.
Elements of Directions

• Supervision
• Motivation
• Leadership
• Communications
 Controlling
deals with monitoring the
company’s progress and ensuring
that all other functions are
operating efficiently.
Controlling has the following steps:
• Establishment of standard performance
• Measurement of actual performance
• Comparison of actual performance with the
standards
• Corrective action.
Intrinsic to the Nature of Management
Coordination,
Efficiency, and Effectiveness:

1. Coordination
2. Efficiency
3. Effectiveness
Lesson 1.2 the Different Types of Management Theories
Evolutions of Management Theories
Evolution is usually defined
as low stages of growth and
development, starting from simple
forms to more complex forms.
A. Classical Theories of Management
Classical Theory (1900 – 1920’s) is the oldest
theory. This theory evolved in response to the shift
from handicraft to industrial production.

The emphasis is on the

economic rationality of people and
organizations, motivated by economic
incentives that through their efforts
yield greatest monetary benefits or
income.
 Theorist Theory

Max Weber (1905) The Theory of Social and Economic Organization

Frederick Taylor (1911) Principles of Scientific Management

Frederick Taylor (1912-1924) Project Scheduling or the Gantt Chart

Henry Gantt (1910-1915) Project Scheduling or the Gantt Chart

Henry Fayol (1916) The Administrative School of Management

B. The Neo-Classical Theories of
Management
Under neo-classical theories, theorist
focuses on human relations and behavior
of the employees.
 Theorist Theory

Mary Parker Follett Participative Leadership

Hawthrone Studies The Hawthrone effect

Elton Mayo / Fritz Roethlisberger Human Relation Theory of Management

Chester Barbard The Function of the Executive

Abraham Maslow Hierarchy of Needs Theory

Douglas McGregor The Theory X and Theory Y

C. The Modern Theories of
Management
Dealing with complexity is the core of
modern management theory. Focus is
on the interaction between
Organizations, Workers, and
Environment.
 Theorist Theory

Ludwig Von Bertalanffy (1937) General System Theory

Joan Woodward (1965)

Contingency Theory
P. Lawrence / J.W. Lorsch (1967)

Daniel Katz / Robert Kahn (1966)

Fred Edward Fiedler (1967)

Evolution of Management

Management Theories For

Organization:
 Scientific Management
Is defined as the use of scientific method to determine the
”one best way” for a job to be done.
 Frederick W. Taylor (1856-1915)
Father of Scientific Management
He made a scientific study of workers, machine, and the
workplace by using the method of standardization of parts,
uniformity of work structure and the assembly line.
Taylor’s Scientific Management Principles
• Develop a science for each element of an individual’s
work to replace the old rule of thumb method.
• Scientifically select and then train, teach, and
develop the worker.
• Heartily cooperate with the workers so as to ensure
that all work is done in accordance with the principle
of science that has been developed.
• Divide work and responsibility almost equally
between management and workers.
General Administrative Theory
concentrate on the manager’s
functions and what makes up good
management practice or
implementation.
Henri Fayol’s 14 Management Principle
Fayol emphasized how different a manager’s
role was from other usual business function.
• Work division and specialization
• Authority
• Discipline
• Unity of command
• Unity of direction
• Subordination of individual interest to general interest
• Remuneration/pay
• Centralization
• Scalar chain of authority
• Maintenance of order
• Equity/fairness
• Stability/security of tenure of workers
• Employee initiative
• Promotion of team spirit or spirit de corps
Bureaucracy according to Max Weber
• According to Max Weber(1864-1920), a German
Sociologist and considered to be the “Father of
Bureaucracy”.
• Bureaucracy is an organizational form distinguished
by the following components:
• Division of labor
• Hierarchical identification of job positions
• Detailed rules and regulations
• Impersonal connections with one another
Organizational Environment Theory
by late 1960’s, recognized that human factor alone is not a
consideration to achieve organizational effectiveness.
There are two basic types of systems
Organizational Behavior (OB) Approach
involves the study of the conduct, demeanor, or action of people at
work.
• Robert Owen notice lamentable(deserving to criticized) conditions in
workplaces and proposed ideal ways to improve the said conditions
• Mary Parker Follett, introduced the idea that individual or group
behavior must be considered in organizational management.
• Hugo Munsterberg, proposed the administering of psychological tests
for the selection of would-be employees in companies.
• Chester Barnard, in the 1930’, suggested that cooperation is required
in organizations since it is, mainly, a social system.
Total Quality Management (TQM)
is a management philosophy
that focuses on the satisfaction of
customers, their needs, and
expectations.
 W. Edward Deming’s 14 Points for Top Management

1. Create constancy of purpose for improvement of products and

services
2. Adopt the new TQM philosophy
3. Cease dependence on mass inspection by doing things right and doing
it right the first time
4. End the practice of awarding business on the basis of price tag alone
5. Constantly improve the system of production and services
6. Institute training
7. Adopt and institute leadership
 Deming’s 14 Points for Top Management

8. Drive out fear

9. Break down barriers between staff areas
10. Eliminate slogans, focus on connection of defects in the
system
11. Eliminate numerical quota for one work force
12. Remove barriers that rob people of “pride of
workmanship”
13. Encourage education and self-improvement for
everyone
14. Take action to accomplish the transformation
 Fitness of Quality According to Joseph M Juran

1. Quality of design- through market research, product and

concept
2. Quality of conformance- through management,
manpower, and technology.
3. Availability- through reliability, maintainability, and
logistic support.
4. Full service- through promptness, competence, and
integrity.
 Joseph M. Juran’s Quality Planning
Roadmap
1. Identify your customers
2. Determine their needs
3. Translate them into one’s language
4. Develop a product that can respond to needs
5. Develop processes which are able to produce those
products features
6. Prove that the process can produce the product
7. Transfer the resulting plans to the operating forces.