Principles of Management

Chapter 1
MANAGEMENT:
Science, Theory and Practices
Prepared by:
MARWENA M. DIAZ, DBA
CABA Instructor
Management Definition

 “Management as a process or form of work

that involves the guidance and direction of a
group of people toward organizational goals or
objectives.”

 Terry and Rue (1982)

Management Definition
 “Management as a process of planning,
organizing, leading and controlling the efforts of
organization members and of using all other
organizational resources to achieve stated
organizational goals.”

 Stoner (1993)
Management Definition
 “Management is the establishment of an
environment for group efforts in such a way that
individuals will contribute for group objectives
with the least amount of such inputs as money,
time, effort, discomfort and materials.”

 Koontz, O’ Donnel, and Weihrich (1980)

Management Definition
 “Management is a process of working with and
through other people to accomplish
organizational goals.”
 Johnson and Stenson (1978)
Management Definition
 “Management is a process of coordinating
and integrating work activities so that they
are completed efficiently and effectively
with and through other people.”

 Robbins & Coulter (2001)

Efficiently and Effectively
Efficiency:
Is a vital part of management
Refers to the relationship between input and output
 Ifyou can get more output from the given input, you have
increase efficiency.
 Similarly, if you can get same output from less input, you have
increase efficiency.
 Becausemanagers deal with scarce input resources – people, money and
equipment – they are concern with efficient use of resources.
 Management is concern with efficient use of minimizing resource costs.

Management therefore is “doing things

right”
Efficiently and Effectively
Effectiveness:
 When managers achieve their organizational goals, we say
they are effective.
 Effectivenessis often described as “doing the right
things” – that is those work activities that help the
organization reach its goals.
 Whereas efficiency is concerned with the means of getting
things done, effectiveness is concerned with the ends, or
attainment of organizational goals.
Conclusion
 Management is a process by which a manager
of an organization efficiently utilizes resources to
achieve its overall goals at minimum cost and
maximum profit.
 According to Lorenzana, Carlos (2003)
 Management - refers to the group of people who
are responsible and accountable for directing the
workforce and seeing to it that the organization
meets its organizational goals and objectives.
Conclusion
 Based
from the above definitions of
Management, certain features emerge:
Management is a process (a systematic way
of doing things)
It utilizes resources efficiently
It gets things done through and with others
It achieves a stated goals
Management: Art and Science
 An Art:
Because it involves the “proficiency in the practical
application of knowledge acquired through study,
experience and observation”.
 A Science:
Because it is a body of knowledge dealing with a body of
facts or truths systematically arranged and showing the
operation of acceptable standards of law.
 Therefore:
Management as practice is an art, organized
knowledge about management is a science
Management: Function & Process
 Function of management or referred to us “Process
Approach to Management”
 By: Koontz O'Donnel
 According to this View, managers perform the
following five essentials functions:
Planning
Organizing
Staffing
Directing
Controlling
Function of Management
 Planning
It is the process of setting the objectives to be
accomplished by an organization during a future tine
period and deciding on the methods of reaching them.
 Organizing
It is the process of identifying, subdividing, grouping,
assigning and coordinating activities and providing the
necessary authority to carry out the activities.
 Staffing
It is the process of recruitment, selection, assignment
and development of the various kinds of human
resources required by the organization.
Function of Management
 Directing
Itis the process of communicating with and influencing
subordinate towards the achievement of organizational
goals.
 Controlling
It is the process of monitoring performance and
undertaking corrective actions to ensure the attainment
of predetermined goals and objectives of the
organization.
Manager
 Refers to a persons who are responsible for directing activities of other people
 Manager’s Description:
 First-line
manager
 Are the lowest level of management and are often called supervisors
 Middle manager
 Includeall level of management between supervisory level and the top level of the
organization. They have titles such as department or agency head, project leader, plant
manager, unit chief, dean, bishop, or division manager
 Top managers
 Responsible for making organizations wide decisions and establishing the policies and
strategies that affects the entire organizations. They have titles such as: Executive Vice
president, President, Managing Director, Chief Operating Officer or Chairman of the
Board.
Types of Roles of Managers By Henry Mintzberg
 Interpersonal Roles:
This classification is subdivided into three types:
Figurehead Role
 The role which is assumed by managers when they
represent their respective units in the outside world in
ceremonial and civic activities.
Leadership Role
 The role played by managers when they initiate and
coordinate activities in their units.
Liaison Role
 They are needed by unit’s heads when they interact with
persons in other units within and outside the
organization.
Types of Roles of Managers By Henry Mintzberg
Informational Roles:
 This
is divided into the following sub-types:
Monitor Role
 Since information flow from various parts of the organization, both in upper
and lower levels, converge in a managers office and this allows him to
monitor activities occurring outside his office.
Disseminator Role
 The managers have a key role in transmitting and disseminating such
information to other parts of the organization.
Spokesperson Role
 The managers’ position in the organization requires them to represent and
speak for their units, and other units of the organization.
Types of Roles of Managers By Henry Mintzberg
 Decisional Roles:
This consists of the following four types:
Entrepreneurial Role
 As a manger, he plays a key role in the identification of
new opportunities and the development of those into new
products, services, methods or activities within
organization.
Problem Solver
 Managers are called upon to identify solutions and to take
action to overcome the continuous stream of problems
which crop up in the operation of the institution.
Types of Roles of Managers By Henry Mintzberg
 Decisional Roles: cont.
This consists of the following four types:
Resources Allocator
 Managers exercise a key role in the distribution of funds,
personnel, materials and other organizational resources
among competing users in the organization.
Negotiator
 Managers are frequently involved in negotiation activities
which have a key impact on the performance of their units.
Drucker’s Five Basic Operations in the Work of the Managers

 A manager sets objective: (1)

He determines what the objectives should be
He determines what the goals in each area of objectives
should be.
He decides what has to be done to reach this objectives
He makes objectives effective by communicating them
to the people whose performance is needed to attain
them
 Setting objectives requires analytical and synthesizing
ability
Drucker’s Five Basic Operations in the Work of the Managers

 A manager Organizes: (2)

He analyzes the activities, decisions, and relations needed
He classifies the work
He divides it into manageable activities and further
divides activities into manageable jobs
He groups these units and jobs into an organization
structure
He selects people for the management of every units and
for every jobs to be done
Organizing requires analytical ability
Drucker’s Five Basic Operations in the Work of the Managers
 A manager Motivates and Communicates: (3)
He makes a team out of the people that are responsible for
various jobs
He does it through the practices with which he works
He does it in his own relations to the men with whom he
works
He does it through his “people decisions” on pay placement,
and promotions
And he does it through constant communication, to and
from his subordinates, to and from his superior, and to and
from his colleagues.
 Skills
needed in motivating and communicating is
primarily social
Drucker’s Five Basic Operations in the Work of the Managers

 Measurement is the fourth basic element in the work of

the manager: (4)
He establishes a yardsticks, benchmarks.
He sees to it that each man has measurements available
to him which are focused on the performance of the
whole organization and which, at the same time, focus
on the work of the individual and help him do it.
He analyzes, appraises, and interprets performance
 Measuring requires analytical ability
 Measurement should be done with self control
 It should not be abused to control or dominate people
Drucker’s Five Basic Operations in the Work of the Managers

A manager develops people,

including himself (5)
The Skills of Manager
Conceptual Skills
 The cognitive ability to see the organization
as a whole and the relationship among its
parts
 Conceptual skills are needed to perceived
significant elements in a situation and broad
conceptual patterns
Need to fashion the organizational vision and
mission or the corporate purpose and set overall
goals and strategies.
Conceptual Skills
 Conceptualskills involves the manager’s thinking,
information processing, and planning abilities
It involves knowing where one’s department fits into
the entire organization and how the organizations fits
into the industry, the community, and the broader
business and social environment.
Itmeans the ability to think strategically – to take the
broad and long term view.
Top management needs more conceptual skill.
Human Skills
 The ability to work with and through other people and
to work effectively as a group member and as a leader
who gets things done through other.
 This skills is demonstrated in the way a manger relates to other
people, including ability to motivate, facilitate, communicate,
coordinate, lead, and resolve conflicts.
 A manager with human skills allows subordinates to express
themselves without fear of ridicule and encourages participation.
Middle management needs more human
skills
Technical Skills
 The understanding of and proficiency in the performance of
specific tasks.
 Technical skill includes mastery of the methods,
techniques, and equipment involved in specific
functions such as engineering, manufacturing, or
finance.
 Technical skills also includes specialized knowledge, analytical
ability, and the competent use of tools and techniques to solve
problems in that specific discipline.
Technical Skills
 Many managers got promoted to their management job
by having excellent technical skills.
However, technical skills become less important than
human and conceptual skills as managers move up the
hierarchy.
 First-lineor supervisory management needs more
technical skills.
Management Vertical Levels
Top Managers
 A manager who is at the top of the organizational
hierarchy and is responsible for the whole
organization
 Responsible for formulating and communicating a shared vision and
mission of the organization
 Shaping corporate culture
 Setting organizational goals
 Definingstrategies, monitoring and interpreting the external
environment
 Nurturing an entrepreneurial spirit that help the organization.
Top Managers
 They look at the long-term future, scan the
environmental trends,
And take responsibility for the overall success of the
organization
 They have such title as chairman-CEO, President-
CEO, managing directors, and executive vice-
president.
Middle Manager
 A manager who works at the middle level of the
organization and is responsible for major
departments
 Middle managers are responsible for implementing the strategies and
policies set by top management.
 They are concerned with tomorrow or the near future:
 Expected to establish good relationships with peers around the organization;
 Encourage teamwork; and
 Avoid conflicts.
Middle Manager
 Examples of middle management are department
head, division head and carry such title as marketing
managers, production managers, quality control
manager.
Also project manager – a manager responsible for a
temporary work project that involves the participation
of other people at a similar level in the organization.
First-Line Manager
 A manager who is at the first-line level and is
directly responsible for the production of goods
and services.
 They are responsible for groups of non-management people, the rank and file
employees.
 Their primary concern is the application of rules and procedures
to achieve efficient production or delivery of services, provides
technical assistance, and motivate subordinates.
 Their time horizon is short, with emphasis on accomplishing
day-to-day objectives.
 They carry such titles as supervisor, line manager, section chief,
office manager.
Management in Horizontal Level
 Functional Manager
A manager who is responsible for a department that
performs a single functional task and has employees
with similar training skills.
 General Manager
A manager who is responsible for several
departments that perform different functions.
 End of
Discussion
Questions to Answer (Activity)
 The President of a medium-sized manufacturing company
is due for retirement in three months.
 The board of Directors of the company is considering the
next highest ranking manager, the Senior Vice President is
a corporate lawyer who joined the company ten years
previously and assisted the president in the external affairs
area, e.g. dealing with government tariff and regulatory
bodies, suppliers, and some government accounts.
 What are the advantage and disadvantages of appointing
this person as president?
Questions to Answer (Activity)
 Is it necessary for a person to start at the
lowest levels of an organization and
gradually move upwards to become an
effective chief executive in that
organization?
Justify your answer and give example