Chapter 1

Nature and
Concept of
Management
Objective:
– Discuss the meaning and functions of management
Definition and Functions of
Management
Its Etymology
– Management comes from the Italian word maneggiare,
– which means “to handle (tools or equipment).”

– Maneggiare derives from the Latin words manus

– which mean “hand” and agere which is “to act”.
Definitions of Management
– The simplest definition of Management is given by Mary Parker
Follet (1863-1933), an American social worker, managenement
consultant and philosopher who is known as the “Mother of
Modern Management.”

– According to Follet, Management is However, most “the art of

getting things done through people.” critics and find this definition
too constricted, as they believe Management has a wider scope
about our daily life.
– Another definition of Management comes from Henri Fayol (1841-1925)
with whom Fayolism is derived.

– He defines management as, “to manage is to forecast and to plan, to

organize, to command, to coordinate and to control.”

– Fayol focuses on the leaders, managers or the chief executives of the

organization and works downward to its subordinates.

– He believes that managers must learn how to analyze deviations and make
necessary adjustments to come up with a much feasible process.

– Fayol is considered to be the “Father of Principles of Management.”

– One of the pillars of management during the 19th century is Frederick Taylor
(1856-1915), who is known as the “Father of Scientific Management” and
the founder of Taylorism”, he defines management as “an art of knowing
what to do, when to do and see that it is done in the best and cheapest
way”.

– Taylorism introduced the scientific method of enhancing the productivity of

labor and eliminate wastages.
– The modern definition of Management comes from Peter Ferdinand
Drucker (1909-2005). He is management consultant, educator and author
of about 39 books on management.
– According to Drucker, management is “a multi-purpose organ that
manages the business and manages managers and manages workers and
work.”
– Drucker introduced the concept of Knowledge Worker, capitalizing on the
knowledge-based workers as thinkers in an organization.
– He also introduced decentralization and simplification, outsourcing and use
of management by objectives.
Management: Arts or Science?
– Science is defined by Merriam-Webster as “knowledge about or study of the
natural world based on facts learned through experiments and observations”
while Arts is “skill acquired by experience, study, or observation.”

– Management is both or science and art. It is considered as a Science because

managers need facts and information based on gathered data to come up with
a sound solution. It is considered art because managers need specific skills
which are innate in a manager. Science deals with knowledge while art deals
with the application of the knowledge through the use of skills.
Functions of Management
1. Planning
2. Organizing
3. Staffing
4. Leading
5. Controlling
Quiz No. 1

1. Management come from the Italian word __________________.

2. Maneggiare derives from the Latin words manus which mean “ _______________”.

3. According to _______________, Management is the art of getting things done

through people.

4. According to ________________, he defines management as, to manage is to

forecast and to plan, to organize, to command, to coordinate and to control.

5. According to ____________, he defines management as “an art of knowing what to

do, when to do and see that it is done in the best and cheapest way.
Objective:
– Explain the various types of Management Theories
 Evolution of
Management Theories
The Evolution of Management Theories for Organization
There are five management theories for organization:

1. Scientific Management
2. Administrative Management Theory
3. Behavioral Management Theory
4. Management Science Theory
5. Organizational Environment Theory
 – Defined as the use of scientific method to determine
1. Scientific the “one best way” for a job to be done.
Management – The most significant contributor in this field was
Frederick W. Taylor (1856-1915), who is known as the
“Father of Scientific Management.”
– Using his principles of scientific management, Taylor
was able to define the “one best way” for doing each
job.
– He made a scientific study of workers, machines, and
the workplace by using the method of
standardization of parts, uniformity of work structure
and the assembly line.
– The Gilbreth’s, Frank (1868-1924) and Lillian
(1878-1972), one of the great husband and wife
tandem of science and engineering, were inspired
by Taylor’s work and proceeded to study and
develop their methods of scientific management.

– They devised a classification scheme to label 17

basic hand motions called THERBLIGS (derived
from Gilbreth spelled backward) to eliminate
wasteful motions, thereby increasing productivity.
2. Administrative – The theorist who emerged in this group
Management focused more on the entire organization
Theory by developing general theories of what
managers do and what comprised well
management practice.
– One of the most famous personalities
during this era was Henri Fayol (1841-
1925).
– Fayol emphasized how different a
manager’s role was from other usual
business functions.
He stated the 14 principles of management as follows:

1. Division of work 8. Centralization

2. Authority 9. Scalar Chain
3. Discipline 10. Order
4. Unity of command 11. Equity
5. Unity of Direction 12. Stability
6. Subordination of individual interest to 13. Initiative
group of interest 14. Esprit de Corps
7. Remuneration
– Another proponent of General Administrative
Theory is Max Weber (1864-1920), a German
Sociologist and considered to be the “Father of
Bureaucracy.”

– His ideal form of an organization focused on what

is known as a bureaucracy which emphasized on
the division of labor, clearly defined hierarchy,
career advancement based on merit, rules and
decisions based on written format and impersonal
relationships.
3. Behavioral Management Theory
– Often called human relations movement.
– The behavioral management theory focuses on the human aspect of
work.
– Theorists then believed that a better understanding of human behavior
– Abraham Maslow (1908 – 1970), an
American psychologist, created the
Maslow’s Hierarchy of Needs, this is the
theory based on his assumption of the
human needs:
– Human needs are never completely satisfied
– Human behavior is purposeful and is motivated
by the need for satisfaction
– Needs can be classified according to hierarchical
structures of importance from the lowest to
highest.
Maslow’s hierarchy of needs theory helped managers to understand,
visualize and create employee motivation.
• Physiological needs. This pertains to all physical needs necessary for the
maintenance of human well-being, such as food, clothing and shelter.
• Safety needs. These requirements include the need for basic security,
stability, and protection. Once these needs are satisfied, they can
accomplish more.
• Belonging and love need. These needs follow after the physical needs have
been satisfied. The need for friendship, family, belongingness became a
primary motivator.
• Esteem needs. Self-esteem, confidence, achievement, respect, fame and
glory.
• Self-actualization needs. After all the needs have been satisfied, an
individual feels the need of finding himself.
 Morality,
creativity,
spontaneity,
problem solving,
lack of prejudice,
Self – actualization acceptance of facts

Self-esteem, confidence,
achievement, respect of others,
Esteem respect by others

Friendship, family, sexual intimacy

Love/Belonging
Security of: body, employment, resources,
Safety morality, the family, health, property

Breathing, food, water, sex, sleep, homeostasis,

Physiological excretion
4. Management Science Theory
– According to the Principles of Management Notes, Management Science Theory is
known as the quantitative approach to management.
– This uses quantitative techniques in decision making.
– This approach includes applications of statistics, optimization models, information
models and computer simulations.
– The Management Science Theory originated during World War II as mathematical,
and statistical solutions to military problems were developed for wartime use.
– Management Science Theory contributes to managerial decision making, particularly
in planning and controlling.
5. Organizational Environment Theory
– An organization is a part of a larger environment outside its boundaries
and is affected by social, technical and economic factors which are in a
form of a systems perspective based on physical sciences.
– There are two basic types of systems, the Open, and Closed.
– A closed system has no interaction with its environment while an Open System
interacts with its environment.
– Knowing and using these systems approach will help managers visualize
the organization as a whole and would help in coordinating the work
activities as one.
Quiz No. 2

1. The ____________________ focuses on the human aspect to work.

2. __________________ is defined as the use of scientific method to determine the “one best way” for
a job to be done.

3. ________________________________ is known as the quantitative approach to management.

4. ______________________, an American Psychologist, created the Maslow’s Hierarchy of Needs.

5. ______________________, known the Father of Scientific Management.

Objectives:

1. Explain the functions, roles, and skills of a manager

Functions, Roles, and
Skills of a Manager
Manager’s Job: Functions, Roles, and Skills
– A “Manager” is an individual who is in charge of a certain group of tasks,
or a certain subset of a company. A manager often has a staff of people
who report to him.
– Manager’s job is to lead the staff he is heading towards the achievement
of a common goal.
– He makes sure that the organization’s goal are carried out by his
department based on the plans set by the organization.
Functions of a Manager
There are five basic functions of a manager:
1. Planning
2. Organizing
3. Staffing
4. Leading
5. Controlling
1. Planning
– Is the basic function of management. It deals with plotting and jotting
down of action plans and decisions in advance to achieve the pre-
determined goals of the organization.
– The Manager plans the future course of actions, systematically thinking
about ways and means to accomplish the set goal.
2. Organizing
– It is the process of bringing together physical, financial and human
resources and developing productive relationship among to them for the
achievement of organizational goals.
– Managers must figure out the number of manpower needed to get tasks
and the jobs were done. Organizing involves delegation and coordination
among the staffs.
3. Staffing
– Is the determination of personnel needs and the selection, orientation,
training and continuing evaluation of the individuals who hold the
required positions identified in the organizing process.
– The purpose of staffing is to put the right people on the right job. It
involves man-power planning, recruitment, training and development,
performance appraisal and promotion.
4. Leading
– Managers must supervise, lead, motivate, coach, train, guide and direct his
subordinate to work efficiently.
Direction has the following elements:
Supervision – implies overseeing the work of subordinates by their superiors. It is the act of watching &
directing work and workers.
Motivation – means inspiring, stimulating or encouraging the subordinates with zeal to work. Positive,
negative, monetary, non-monetary incentives may be used for this purpose.
Leadership – may be defined as a process by which manager guides and influences the work of
subordinates in the desired direction.
Communications – is the process of passing information, experience, opinion, etc. from one person to
another. It is bridge of understanding.
5. Controlling
– According to Koontz & O’Donell, “ Controlling is the measurement and correction of
performance activities of subordinates to make sure that the enterprise objectives and
plans desired to obtain them are being accomplished.”
Controlling has the following steps:
a) Establishment of standard performance
b) Measurement of actual performance
c) Comparison of actual performance with the standards
d) Corrective action.
Management Roles
– One of the most significant research as to the role of the manager in an
organization comes from Henry Mintzberg, a Canadian researcher who
believes that a manager’s work is never really done!
 Mintzberg’s 10 Managerial Roles
Performs Ceremonial and symbolic duties such as greeting visitors, signing legal
Figure Head
documents
Direct and motivate subordinates, training, counseling and communicating with
Interpersonal Leader
subordinates
Maintain information links both inside and outside organization, use mail, phone
Liason
calls, meetings
Seek and receive information links both inside and outside organization, use mail,
Recipient
phone calls, meetings
Informational Forward information to other organization members; send memos and reports and
Disseminator
make phone calls
Spokesperson Transmit information to outsiders through speeches, reports, and memos
Initiate improvement projects, identify new ideas, delegate idea responsibility to
Entrepreneur
others
Take corrective action during disputes or crisis, resolve conflicts among
Disturbance
Decisional subordinates, adapt to environment crisis
Resource allocator Decide who gets resources, scheduling, budgeting, setting priorities
Represent department during negotiation of union contracts, sales, purchases,
Negotiator
budgets; represent department interest.
Management Skills
Conceptual
- A manager must have the knowledge or the ability to see the “Big picture” of any given
situation to be able to create ideas and visualize plans for the future.
Technical
- A manager must possess specific knowledge and the ability to use different techniques
to achieve what they want to achieve.
Human
- This skill pertains to interpersonal relationship and the ability to work well with other
people.
Quiz No. 3

1. It is the basic functions of management.

2. A _______________ is an individual who is in charge of a certain group of tasks, or a certain

subset of a company.

3. The purpose of _________________ is to put the right people on the right job.

4. It is the process of bringing together physical, financial and human resources and developing
productive relationship amongst them for the achievement of organizational goals.

5. It means inspiring, stimulating or encouraging the subordinates with zeal to work.