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1. CHAPTER 1. NATURE AND
CONCEPT OF MANAGEMENT

2. LESSON 1
DEFINITION AND
FUNCTIONS OF
MANAGEMENT

3. What is Management?
⦿ Management is the attainment of organizational
goals in an effective and efficient manner through
planning, organizing, staffing, directing and
controlling organizational resources.

4. ⦿ Louis E Boone & David L Kurtz- The use
of people and other resources to
accomplish objectives.
⦿ Mary Parker Follet- the act of getting
things done through people.
⦿ Frederick Taylor defines Management as
the art of knowing what you want to do in
the best and cheapest way.
Definitions

5. ⦿ Management covers the whole organization and
is present in every area in the organization. For
management to be successful- coordination,
efficiency and effectiveness are required to
carry it out.
⦿ Similarly, a manager is a significant person
whose role is different from other employees in
the organization. The managerial functions are
performed by the manager. Thus, it can be
summarized that all organizations—no matter
the kind, size, or location—need good
managers in order to successfully achieve their
organizational goals and objectives.

6. FEATURES
⦿ Management involves five functions
⦿ These functions are organised to achieve
organisational goals.
⦿ Management involves effective and
efficient use of resources

7. Efficiency
and
Effectiveness
Efficiency
Effectiveness
⦿ Efficiency = getting the most output from the
least amount of inputs
⦿ “doing things right”
⦿ concern with means(ways) of getting things
done
⦿ Effectiveness = do those work activities that
will help the organization reach its goals
⦿ “doing the right things”
⦿ concern with ends(result) of organizational
goal achievement

8. Or…

9. Efficiency
and
Effectiveness
Efficiency
Effectiveness
⦿ Efficiency = getting work done with a
minimum effort, expense, or waste
⦿ (use resources – people, money, raw
materials– wisely and cost-effectively)
⦿ Effectiveness = accomplish tasks that help
fulfill organizational objectives
⦿ (make the right decisions and successfully
carry them out to accomplish the org. goal)

10. Efficiency and Effectiveness
in Management
Resource
Usage
Goal
Attainment
Management Strives for:
Low Resource Waste (high efficiency)
High Goal Attainment (high effectiveness)
Low Waste High Attainment
Efficiency (Means) Effectiveness
(Ends)

11. Management Functions
according to todays management
textbooks, are:
⦿ PLANNING
⦿ ORGANIZING
⦿ LEADING
⦿ STAFFING
⦿ CONTROLLING

12. 1. PLANNING
⦿ Define goals
⦿ Establish strategies for achieving those goals
⦿ Develop plans to integrate and coordinate
activities
It is the basic function of management. It deals with
chalking out a future course of action & deciding in advance the
most appropriate course of actions for achievement of pre-
determined goals.
According to KOONTZ, “Planning is deciding in
advance - what to do, when to do & how to do. It bridges the
gap from where we are & where we want to be”

13. 2. ORGANIZING
Demands assigning tasks, setting aside
funds, and bringing harmonious relations
among the individuals and work groups or
teams in the organization
It is the process of bringing together physical, financial
and human resources and developing productive relationship
amongst them for achievement of organizational goals.
According to Henry Fayol, “To organize a business is to
provide it with everything useful or its functioning i.e. raw
material, tools, capital and personnel’s”.

14. 3. STAFFING
⦿ Indicates filling in the different job positions in the
organization’s structure.
⦿ It is the function of manning the organization
structure
⦿ The main purpose of staffing is to put right
man/woman on right job it manned.

15. 4. LEADING
⦿ Motivate subordinates(lower positions)
⦿ Help resolve group conflicts
⦿ Influence individuals or teams as they work
⦿ Select the most effective communication
channel
⦿ Provides proper motivation of personnel
⦿ Ability to command people
Entails influencing or motivating subordinates to
do their best so that they would be able to help the
organization’s endeavor to attain their set goals.

16. 5. CONTROLLING
⦿ After the goals are set and plans formulated
(planning) the structural arrangements determined
(organizing) and the people hired, trained(staffing),
and motivated (leading) there has to be some
evaluation of whether things are going as
planned.
⦿ Involves evaluating and, if necessary, correcting
the performance of the individuals or work groups
or teams to ensure that they are all working toward
the previously set goals and plans of the
organization.

17. LESSON 2. THEORIES OF
MANAGEMENT

18. Types and theories of
Management
The development of the concepts of
management today is a by-product of the various
contributions of major key players of management.

19. A. Scientific Management
Theory
- Frederick W. Taylor (1856-1915) –
(Father of Scientific Management)
- It uses scientific methods to analyze
the most efficient production
process in order to increase
productivity.
- Focuses on worker efficiency
- Work efficiency would lead to
greater managerial efficiency
- Follows down-top approach

20. Giving emphasis on improving the worker’s
efficiency and minimizing the task time

21. B. General Administrative
Theory
Henry Fayol's administrative
management theory can be described as an
approach to management and increasing
productivity by emphasizing organizational
structure and human behavior.
- (follows top-down approach)
Effective organizational management would
ultimately have an effect on the productivity of
operational-level workers.
-main focus is on how the management of the
organization is structured and how well the individuals therein
are organized to accomplish the tasks given to them.

22. C. Total Quality
Management (TQM)
-focuses on the satisfaction of
customers, their needs, and
expectations.
Total Quality Management (TQM) is a
management framework based on the belief that an
organization can build long-term success by having all
its members -- from low-level workers to its highest-
ranking executives -- focus on improving quality and,
thus, delivering customer satisfaction.

23. Management theories are theories that help
improve the management process; and
management process is the coordinating and
overseeing of the work performance of individuals
working together in organizations so that they
could efficiently and effectively accomplish their
chosen goals.

24. LESSON 3. THE FUNCTIONS,
ROLES AND SKILLS OF A
MANAGER

25. Who are managers?
⦿ Someone who coordinates and oversees the
work of other people in order to accomplish
organizational goals.
⦿ A manager gets things done through other
people
⦿ A managers job is not about personal
achievement its simply about helping others
do
their work and achieve!

26. MANAGERIAL LEVELS
⦿ In traditional structured organizations (often
pictured like a pyramid), managers are often
described as first-line middle or top.

27. How many level of
managers can we classify?

28. How to classify managers in
organizations?
Traditional Pyramid Form of Management Level
Top
Managers
Middle Managers
Lower/First-Line Managers
Non-Managerial
Employees

29. MANAGERIAL VS.
NON -MANAGERIAL EMPLOYEES
⦿ Managerial employees are responsible for
overseeing a group of employees to ensure
their efficient functioning. They are thus
responsible for not only their work but also
for how their reporting team performs. Non-
managerial employees are only responsible
for their own work and have no overseeing
function.

30. I. Lowest Level of Management
⦿ Lowe/First-line managers: (operative
level) manage the work of non-managerial
employees who typically are involve with
producing the organization’s products or
servicing the organization’s customer
⦿ They are often called: supervisor, shift
manager, district manager, headnurse,
superintendent

31. II. Middle Level of Management
⦿ Middle managersperform executory functions as
dictated by top management. They facilitate the
changes needed in the organization or company on
orders of top management and creating an effective
working environment. They manage the day-to-day
activity of the business, monitors performance and
make sure everything is done in compliance with
organization's needs.
⦿ They are often called: regional manager, project
leader, store manager, division manager, general
manager, branch manager

32. III. Upper Level of Management
⦿ Top managers:
- perform administrative functions
- are responsible for making organization,
wide decisions and establishing the plans and
goals that affect the entire organization.
⦿ They are often called: executive vice
president, president, managing director, chief
operating officer, chief executive officer, Board
of directors

33. WHAT DO MANAGERS DO?
⦿ Early 20th Century A French Industrialist,
Henri Fayol, first proposed that all managers
perform five functions - planning, organizing,
commanding, coordinating, and controlling.
⦿ Mid 1950s Management textbooks, first used the
function of planning, organizing, staffing,
directing, and controlling as a framework.
⦿

34. The 5 functions of a Manager :

35. 1. PLANNING
- As a managerial function this involves
identifying the goals of the organization, and the best
way(s) to accomplish these goals.
- According to KOONTZ, “Planning is deciding
in advance - what to do, when to do & how to do. It
bridges the gap from where we are & where we want
to be”.
- A plan is a future course of actions. Planning
is determination of courses of action to achieve
desired goals.

36. 2. ORGANIZING
As a managerial function this involves assigning
responsibilities to employees who have the competence and
ability to complete the task.
According to Henri Fayol, “To organize a business is to
provide it with everything useful or its functioning i.e. raw
material, tools, capital and personnel’s”.
Organizing involves:
1. Identification of activities.
2. Classification of grouping of activities.
3. Assignment of duties.
4. Delegation of authority and creation of responsibility.
5. Coordinating authority and responsibility relationships.

37. 3. STAFFING
As a managerial function it involves hiring the right
employee for the job. It is the function of manning the
organization structure and keeping it manned. The main
purpose of staffing is to put the right person on right job.
Staffing involves:
1. Manpower Planning (estimating man power in terms of searching,
choose the person and giving the right place).
2. Recruitment, Selection & Placement.
3. Training & Development.
4. Remuneration.
5. Performance Appraisal.
6. Promotions & Transfer.

38. 4. DIRECTING
As a managerial function it involves coordinating the
entire organization so it performs efficiently to achieve its
goals. This takes up most of the time of an organizational
leader.
Directing deals with influencing, guiding, supervising
and motivating the entire organization in order that it
performs and achieves according to its goals.
Directing has following elements:
1. Supervision – overseeing the work of subordinates
2. Motivation – inspiring or encouraging the sub-ordinates with zeal
to work
3. Leadership - manager guides and influences the work of
subordinates in desired direction.
4. Communication - passing information, experience, opinion etc from one
person to another.

39. 5. CONTROLLING
This function involves with monitoring or checking the
performance of employees, comparing it with organizational
goals, and taking corrective actions
According to Theo Haimann, “Controlling is the process
of checking whether or not proper progress is being made
towards the objectives and goals and acting if necessary, to
correct any deviation”.
According to Koontz & O’Donell “Controlling is the
measurement & correction of performance activities of
subordinates in order to make sure that the enterprise objectives
and plans desired to obtain them as being accomplished”. when
necessary

40. MANAGEMENT ROLES
⦿ Specific actions or behaviors expected of
a manager
⦿ 3 types of managerial roles:
› Interpersonal
› Informational
› decisional

41. Mintzberg’s Managerial Roles
1. Interpersonal Roles (building relationships):
involve people (subordinates and person outside
the organization) and other duties that are
ceremonial and symbolic in nature
2. Informational Roles (center of
communication): involve collecting, receiving,
and disseminating information
3. Decisional Roles: entail making decisions or
choices

42. Mintzberg groups managerial
activities and roles as involving:

43. 1. Interpersonal Roles
⦿ Figurehead: (being with people)
› The manager performs ceremonial duties as
head of the organization like greeting VIPs that
visit the organization, handing out awards to
employees, cutting the ribbon of business
openings, and leading in the activities, projects
and programs of the organization.
the roles that the manager is expected to do as highest ranking member of
the organization. It also involve building harmonious relationship among members of
the organization.

44. 1. Interpersonal Roles (Cont.)
⦿ Leader: motivate and encourage workers to
accomplish organizational objectives
⦿ Liaison-Acts as the main contact from the
organization to the rest of the world. This
allows the creation of opportunities for
business partnerships and collaborative
projects and ventures.

45. 2. Informational Roles
⦿ Monitor: scan environment for information,
actively contact others for information, continually
update news/ stories related to their business
(inside and outside org.)
Being at the the center of the flow of information, it is the role of the
manager to harness this information to relevant decision making. In the business
community the manager has a role of developing contacts and linkages to further the
reach and influence of the business.

46. Disseminator: share the information they have
collected with their subordinates and others in the
company
2. Informational Roles (Cont.)
The Manager provides relevant information to the
organization.
⦿ Spokeperson: share information with people
outside their departments and companies.

47. 3. Decisional Roles
⦿ Entrepreneur: adapt themselves, their
subordinates, and their units to change/
innovation
PURPOSE:
• To Expand And Diversify Business
• Design And Develop New Business Process And
Management Systems, Strategies

48. Disturbance Handler: respond to pressures and
problems demand immediate attention and action
The manager must act to protect the entire
organization from internal or external pressures that
would compromise its integrity. As manager he
strives to contain dissent by promoting fair labor
practices.

49. 3. Decisional Roles (Cont)
⦿ Resource Allocator: The manager is the
central authority in organizational decisions
to allocate the scarce resources to the
various departments. He authorizes
decisions within departments prior to
implementation.
Negotiator: The manager leads the organization in the
contracts and agreements it makes in behalf of the
organization.

51. 1. TECHNICAL SKILLS
Technical business skills allow Managers to understand
how things work in the various departments within the
company. Such as understanding financial statements and
its implications or investment analysis.
The manager must possesses technical business skills in the
various areas of management in his organization like financial
management, production processes, supply chain, marketing and sales.
Management Skills:

52. 2. HUMAN SKILLS
Management Skills:
The manager must also posses to the skills to
interact with people both from within and outside the
organization. These people skills allow the manager to
positively influence organizational members into
pursuing his vision, mission and goals for the
organization.
Human skills allow managers to comfortably mingle
with employees and inspire them to work with
effectively.

53. 3. CONCEPTUAL SKILLS
Ability of an individual to analyze complex situations and to
rationally process and interpret available information.
For eg: Idea generation and analytical process of
information.
Management Skills:
The manager needs
conceptual skills to plan, strategize,
and think way ahead into the future
given constraints and opportunities
in the market

54. Skills Needed at Different
Managerial Levels
Human
Skills
Conceptual
Skills
Technical
Skills
Top Managers
Middle Managers
Low-Level Managers
*Dark color = necessary to have