2. OBJECTIVES
• At the end of this lesson, the students will be able to:
• Discuss the nature of management
• Explain the importance and meaning of management
• Differentiate efficiency from effectiveness
• Identify factors that influence management practices and trends,
and
• Appreciate the importance of management in the success of
organizations.
3. NATURE AND CONCEPT OF MANAGEMENT
• TRUE OR FALSE
• Question: Management has always been attributed to the activities of an organization,
specifically its day-to-day operations.
• Answer: TRUE!
4. • Management has always been attributed to the activities of
an organization, specifically its day-to-day operations.
• Management consists of administrative job functions that
require critical thinking and decision-making.
5. • TRUE or FALSE
• Question: Management entails responsibilities concerned not only with
the people, resources, and processes within the organization but also
with outside factors such as the environment where the organization
operates.
• Answer:TRUE
7. Behavior/Trait Strongly
Disagree
Somewhat
Disagree
Somewhat Agree Strongly Agree
1. I often take
chances even if I
am not certain of
the outcome
2 4 6 8
2. I enjoy working
with others to
achieve a
common goal
2 4 6 8
3. I often tend to
have an influence
on others
2 4 6 8
4. I have strong
views about what
is right and
wrong and can
easily convince
people to share
my views
2 4 6 8
8. Behavior/Trait Strongly
Disagree
Somewhat
Disagree
Somewhat Agree Strongly Agree
5. I inspire confidence
in other people 2 4 6 8
6. I provide
constructive criticism
to people who need
them
2 4 6 8
7. I make myself
available to others
2 4 6 8
8. I exude confidence
and determination 2 4 6 8
9. I express genuine
concern for the well-
being and interest of
others
2 4 6 8
10. I often tell people
when they perform
poorly or do not meet
my expectations
2 4 6 8
9. • Add your scores for all the statements and then check the table below
for an interpretation of your total score.
68 – 80 points You will be an excellent manager. Keep up the good performance and you can become
one of the best managers in the future
55 – 67 points You are a good managerial candidate.You have most of the qualities of a good
manager.With consistent improvement, you can become one of the best in the future.
41 – 54 points You are an average managerial candidate.You have some of the qualities of a manager
but still have traits and skills that you need to improve on.With determination and
practice, you can take the next step to become a good manager.
40 points and
below
You are a below-average managerial candidate.You have one or two traits of a good
manager but still need improvement in many aspects.Take time to gain new
knowledge and practice your skills. Improvement is a reward gained only by a
persistent learner.
10. NATURE OF MANAGEMENT
• Management is a science as well as an art. It is a body of
knowledge whose ideas and principles have become the basis of
organizational frameworks employed by many businesses and
organizations.
• It is considered a science because it evolved from a number of
theories that involved extensive studies and experiments.
• The management principles practiced by business people and
professionals are based on scientific principles, scholarly studies,
and statistical data.
12. • Agree or disagree?
• A good manager must be able to look at situations and use creativity
and imagination in coming up with solutions to problems.
13. MANAGEMENT AS ART
• Creativity and ingenuity are important traits of managers that
enable them to effectively use business strategies in any
situation, and make innovations that result in new products,
services, and processes.
• This ingenuity can be drawn from the effective application of
knowledge and skills of decision-makers.
14. MANAGEMENT
• Management is the process of planning, organizing, leading, and
controlling the activities of an organization effectively and efficiently to
achieve its goals.
• It plays a crucial role in every organization, especially in today’s world
that is much more complex and where constant change is the norm.
• Organizations, therefore, need to keep abreast of all these changes and
managers need to be dynamic and flexible to address the challenges
that changes bring.
15. MANAGEMENT
• Management also provides the means to maintain a firm’s
competitive advantage. It lays out the foundation of
successful operations that lead to efficiency and profitability,
and establishes the link between the development of
strategies and their implementation and control.
• The effective application of plans require skilled managers
who are able to combine resources and capital in executing
strategies and sustaining the operations of their
organizations .
16. EFFICIENCY AND EFFECTIVENESS
• Efficiency / Effectiveness is the ability to maximize out put with minimum
input. It is often referred to as “doing things right”, and seeks to limit the
wasted input which is costly for a business.
17. EFFICIENCY AND EFFECTIVENESS
• Efficiency / Effectiveness is the capacity to attain an intended objective
or result. It is often called “doing the right thing”.The intention is to meet
the desired goals regardless of the amount of input required. If there is a
goal that needs to be achieved, the things that need to be done are
prioritized to achieve that goal
18. EFFICIENCY AND EFFECTIVENESS
• Efficiency: is the ability to maximize out put with minimum input. It is often
referred to as “doing things right”, and seeks to limit the wasted input
which is costly for a business.
• Effectiveness is the capacity to attain an intended objective or result. It is
often called “doing the right thing”.The intention is to meet the desired
goals regardless of the amount of input required. If there is a goal that
needs to be achieved, the things that need to be done are prioritized to
achieve that goal
19. FACTORS INFLUENCING MANAGEMENT
•5 factors:
• Globalization
• Technology
• Sustainability and Corporate social responsibility
• Psychology
• Ecosystems
20. GLOBALIZATION
• Refers to the phenomenon of growing interconnectivity and
interdependent relations between nations.This growth has
been greatly influenced by the advancements in technology,
transportation, communication, and education, as well as the
gradual deregulation of trade.
21. TECHNOLOGY
• Technology is one of the main driving forces of business.
Advancements in this area have immensely improved
business trends. New technologies have rendered business
functions and related tasks easier to accomplish, bringing
about increased levels of productivity.
22. OUTSOURCING
• A significant phenomenon brought about by technology.
• Outsourcing is defined as the transfer of an organizational function to a
third party.
• When the third party is located in another country, the transfer is called
offshore outsourcing or simply “offshoring”
• Outsourcing transfers management control and decision making of
certain business functions to the external supplier or third party.
• The relationship between the business and the external supplier now
involves information exchange,close coordination, and mutual trust that
each party will fulfill their respective functions.
23. SUSTAINABILITY AND CORPORATE
SOCIAL RESPONSIBILITY
• Sustainability in business means that companies should plan
and conduct long-term business operations to ensure
minimal negative impact on the social, cultural, and
economic aspects of their external environment or
community.
• Corporate social responsibility (CSR) is defined as the
willingness of companies to run their business operations in
a sustainable and responsible manner.
24. • Example of sustainability:
• Implementation of cost-saving mechanisms such as recycling,
reduction of energy consumption in the workplace, and the use
and production of environmentally friendly products.
• Example of CSR:
• Expressed through social outreach programs, support of
significant causes, and other forms of philanthropic activities.
25. PSYCHOLOGY
• The study of psychology is an important facet in management since it
focuses on developing people management skills and analyzing
customer satisfaction. A better understanding of psychological
concepts such as motivation, behavior, attitude, and personality is vital
for effective management.
26. PSYCHOLOGY
• Psychology can help managers foster closer relations and better
communication with employees.Improved communication, in
turn, enables managers to better assess their employees,
determine their strengths and weaknesses, and guide them
toward personal and professional development.
• Psychology also aids managers in gauging and analyzing
customer satisfaction and the external business environment,
enabling them to carry out sound decisions
27. ECOSYSTEMS
• A business ecosystem consists of a group of firms that provide related
products and services.The emergence of business ecosystems has
resulted in improvements and innovations in industries.
• A good example is the collaboration between telecommunication
firms, media, and technology to disseminate information to the public.
