OrgMngt-Q1W1-Presentation+Without+Assessment.pptx

Our Lady of the Holy Rosary School
Member, Association of LASSSAI Accredited Superschools
(Our Lady of the Holy Rosary Educational Foundation, Inc.)
Quarter 1 Week 2
NATURE AND CONCEPT OF
MANAGEMENT
ORGANIZATION AND MANAGEMENT

TOPICS
Chapter 1
NATURE AND CONCEPT OF MANAGEMENT
I. Definition and functions of management
II. Evolution of management theories
III. Functions, roles, and skills of a manager

I. Definition and Functions of Management

PRE-TEST
Management may be new but pretty sure there are a lot of things
you knew about it in the past. You may be new to the word and what it
means but you have practiced the skill before like getting a task done
together with your younger siblings, with your cousins, or even with your
classmates before. See what you have learned by completing the
crossword puzzle in the next page.

1. This word is a type of management that is a one-
way leadership where there is a single authority.
2. This word involves evaluating and, if necessary,
correcting the performance of the individuals or
workgroups, or teams to ensure that they are all
working toward the previously set goals and plans of
the organization.
3. This word is the process of making plans for
something.
4. This word is the fourth function of management.
5. This word is a non-stop process of ensuring
continuity and growth within an organization.
6. This word is described as the practice of training
people to obey rules.
7. This word demands assigning tasks, setting aside
funds, and bringing harmonious relations among the
individual and workgroup or teams in the organization.
8. This word indicates filling in the different job
positions in the organization’s structure.

Basic Concepts and Theories of Management
Have you ever been in a group, school club or school organization?
If yes, even in your previous classes or school organizations whether that
is from a small group or either school club, there is always a leader who
will manage the group. Did you ever thought what where the functions
of the leader in your group or organization?
Actually there are different functions that are being performed by
every leader in your group or organization. All those functions will be
carefully discussed as we go along with the lesson. Let us start by
defining the term “management”.

DEFINITION OF MANAGEMENT
 Management is a process of planning, decision making, organizing,
leading, motivating, and controlling the human resources, financial,
physical, and information resources of an organization to reach its
goals efficiently and effectively.
 Management is a non-stop process of ensuring continuity and growth
within an organization.

FUNCTIONS OF MANAGEMENT
1. Planning - Involves determining the organization’s goals or performance
objectives, defining strategic actions that must be done to accomplish them,
and developing coordination and integration activities.
2. Organizing - Demands assigning tasks, setting aside funds, and bringing
harmonious relations among the individual and workgroup or teams in the
organization.

3. Staffing - Indicates filling in the different job positions in the organization’s
structure; the factors that influence this function include the size of the
organization, types of jobs, number of individuals to be recruited, and some
internal or external pressures.
4. Leading/Directing - 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.
5. Controlling - Involves evaluating and, if necessary, correcting the
performance of the individuals or workgroups or teams to ensure that they are all
working toward the previously set goals and plans of the organization.

Business environments are battlefields and business organizations
are engaged in combat. Due to rising competition, changes in the
economic environment, the Labor Union movement, improved
productivity, and implementations of new Business Laws, the business
organization should know how to handle this type of conflict. In order to
adapt to the changing times, we have to understand the beginnings of
present-day management practices.

ACTIVITY 1
Given the diagram below supply 2 keywords you have understood
from each of the functions:

TYPES OF MANAGEMENT
Web references and other books present different management types but
what they have in common are four common categories which are discussed
below.
1. Autocratic
 This management type is a one-way leadership where there is a single
authority.
 Team members are only there to follow orders.
 The employees are given rewards for a job well done but are given
punishment if they fail.
 This management style is beneficial in times of crisis that need immediate
attention. On the other hand, it causes the staff to fear. They need to be
closely supervised and a poor relationship would be evident among the team.

TYPES OF MANAGEMENT
2. Persuasive
The manager has a strong and centralized controlling business decisions like
the autocratic type of management. What differs is that in a persuasive type, the
manager convenes with his colleagues before he decides. Employees are
motivated not anymore by rewards and punishment but by persuasive
techniques.
3. Consultative
In a consultative style, leaders and workers have two-way communication.
Team members share their opinion in solving issues of the company.
Consequently, the practice is costly, slow in decision making and important
changes are delayed.

TYPES OF MANAGEMENT
4. Participative
There is a distribution of authority and power in participative management.
The company’s project is a shared responsibility and each member has self-
direction.

II. Evolution of Management Theories

THEORIES OF MANAGEMENT
A. Scientific Management Theory
This management theory makes use of the step-by-step, scientific methods for
finding the single best way for doing a job. Frederic W. Taylor, the Father of
Scientific Management, is the proponent of this theory.
Taylor’s Scientific Management Principles are as follows:
1. Develop a science for each element of an individual’s work to replace the old
rule of thumb method.
2. Scientifically select then train, teach and develop the workers.
3. Heartily cooperate with the workers to ensure that all work is done following
the principles of the science that has been developed; and
4. Divide work and responsibility almost equally between management and
workers.

B. Henri Fayol’s General Administrative Theory
This theory concentrates on the manager’s functions and what makes up
good practice or implementation. Henri Fayol is the contributor of this theory who
believes that management is an activity that all organizations must practice and
view it as separate from all other organizational activities such as marketing,
finance, research and development, and others.

Principles of Fayol’s Management Theory
1. Work division or specialization- according to this principle, the whole work is divided into
small tasks. The specialization of the workforce according to the skills of a person, creating
specific personal and professional development within the labor force, and therefore
increasing productivity, leads to specialization which increases the efficiency of labor. By
separating a small part of work, the worker’s speed and accuracy in his/her performance
increases. This principle applies to both technical as well as managerial work.
2. Authority and Responsibility- This refers to the issue of commands followed by responsibility
for their consequences. Authority means the right of a superior to give enhanced order to his
subordinates; responsibility means an obligation for performance. This principle suggests that
there must be parity between authority and responsibility. They are co-existent and go
together, and are two sides of the same coin, and the authority must be commensurate with
responsibility.

3. Discipline- Refers to obedience, proper conduct in relation to others, respect of authority
etc. It is essential for the smooth functioning of all organizations. This will also help shape the
culture inside the organization.
4. Unity of command- States that each subordinate should receive orders and be
accountable to one superior. If an employee receives orders from more than one superior, it
is likely to create confusion and conflict. Unity of Command also makes it easier to fix
responsibility for mistakes.
5. Unity of Direction- All those working in the same line of activity must understand and
pursue the same objectives. All related activities should be put under one group, there
should be one plan of action for them, and they should be under the control of one
manager.
6. Subordination of individual interest to general interest- The management must put aside
personal considerations and put company objectives first. Therefore the interests of goals of
the organization must prevail over the personal interests of individuals.

7. Remuneration/Pay – Workers must be paid sufficiently as this is a chief motivation of
employees and therefore greatly influence productivity. The quantum and methods of
remuneration payable should be fair, reasonable, and rewarding of effort. Remuneration is
paid to worker as per their capacity and productivity. The main objective of an organization
is to maximize net profit and wealth of the company.
8. Centralization- The amount of power wielded with the central management depends on
company size. Centralization implies the concentration of decision-making authority at the
top management. Sharing of authority with lower levels is called decentralization.
9. Scalar chain of authority- Refers to the chain of superiors ranging from top management
to the lowest rank. The principle that there should be a clear line of authority from top to
bottom linking all mangers at all levels. It is considered a chain of command. However, there
is a concept called a “gang plank” in which a subordinate may contact a superior in case
of an emergency, defying the hierarchy of control. In this event, the immediate superiors
must be informed about the matter.

10. Maintenance of order- Social order ensures the fluid operation of a company through
authoritative procedure. Material order ensures safety and efficiency in the workplace.
Orders should be acceptable and under the rules of the company.
11. Equity/Fairness- employees must be treated kindly, and justice must be enacted to
ensure a just workplace. Managers should be fair and impartial when dealing with
employees, giving equal attention toward all employees.
12. Stability/security of tenure of workers- The period of service should not be too short and
employees should not be moved from positions frequently. An employee cannot render
useful service if he or she is removed before he/she becomes accustomed to the work
assigned to him/her.

13. Employee Initiative- Using the initiative of employees can add strength and
new ideas to an organization. Initiative on the part of employees is a source of
strength for an organization because it provides new and better ideas.
Employees are likely to take greater interest in the functions of the organization.
14. Promotion of team spirit or esprit de corps- Refers to the need of mangers to
ensure and develop morale in the workplace individually and as a group. Team
spirit helps develop an atmosphere of mutual

C. Weber’s Bureaucracy
Max Weber, A German Sociologist wrote in the early 1900s that ideal
organizations specially the large ones, must have authority structures and
coordination with others based on what he referred to as bureaucracy.
According to Weber, bureaucracy is an organizational form distinguished by
the following components:
1. Division of labor
2. Hierarchical identification of job positions
3. Detailed rules and regulations
4. Impersonal connections with one another

D. Organizational Behavior (OB) Approach
 This involves the study of the conduct, demeanor, or action of people at work.
Research on behavior helps managers carry out their functions- leading, team
building, resolving conflict, and others.
 Robert Owen, Mary Parker Follett, Hugo Munsterberg, and Chester Barnard
were the early supporters of the OB Approach. During the late 1700s, Owen
noticed lamentable conditions in workplaces and proposed ideal ways to
improve the said conditions.
 Follett, in the early 1900s, introduced the idea that individual or group behavior
must be considered in organization management.
 Likewise, in the early 1900s, Munsterberg proposed the administration of
psychological tests for the selection of would be employee in companies.
 Barnard, in the 1930s, suggested that cooperation is required in organizations
since it is, mainly, a social system.

III. Functions, Roles and Skills of a Manager

WHAT IS A MANAGER?
A manager is one of the most important person who influences the
productivity and success of any business organization. Before we dig down
deeper as to what are the roles and skills do managers have let us define first
what is a manager.
 An individual engaged in management activities is called a manager.
 Managers supervise, sustain, uphold, and assume responsibility for the work of
others in his or her workgroup, team, department, or the organization, in
general.
 Therefore, it is safe to assume that organizational success depends upon
managers who practice optimal utilization of their human and material
resources, and who encourage high levels of performance, effectiveness, and
efficiency among the individuals under their care (Cabrera, Altarejos, and Riaz
2016, 9).

MANAGERIAL LEVELS
Organizations typically have three levels of management in which they are
classified according to their respective functions. These are top-level managers,
middle-level managers, and frontline or lower-level managers.

MANAGERIAL LEVELS
Top-level Managers
 Top-level managers are the general or strategic managers who focus on long-
term organizational concerns and emphasize the organization’s stability,
development, progress, and overall efficiency and effectiveness.
 They are also concerned with the organization’s inter-relationships with their
external environment.
 Chief executive officers (CEOs), chief operating officers (COOS), presidents,
and vice presidents are examples of top-level managers in big corporations;
they have authority over all other human resources of their organization.
 Traditionally, top-level executives set the company’s general direction by
designing strategies and by controlling various resources.

MANAGERIAL LEVELS
Middle-level Managers
• Middle-level managers are the tactical managers in charge of the organization’s
middle levels or departments.
• They formulate specific objectives and activities based on the strategic or general
goals and objectives developed by top-level managers.
• Their traditional role is to act as go-betweens between higher and lower levels of
the organization; they announce and interpret top management priorities to human
resources in the middle hierarchical level of the company.
• It has been observed that middle-level managers are more aware of the
company’s problems compared to managers in the higher level because of their
closer contacts with customers, frontline managers, and other subordinates.
• To be an ideal middle-level manager, one must be creative so that they could
provide sound ideas regarding operational skills as well as problem-solving skills that
will help keep the organization afloat.

MANAGERIAL LEVELS
Frontline or Lower-level Managers
 Lower-level managers are also known as operational managers and are
responsible for supervising the organization’s day-to-day activities; they are the
bridges between management and non-management employees.
 Traditionally, they are controlled and instructed by top and middle-level
managers to follow their orders in support of the organization’s major strategy.
 Lately, however, their role has been expanded in some large companies, as
they are now encouraged to be more creative and intuitive in the exercise of
their functions, so that they, too, could contribute to their company’s progress
and the development of new projects (Cabrera, Altarejos, and Riaz 2016, 9-
10).

MANAGERIAL ROLES
Managerial roles are
classified into three types:
interpersonal, informational, and
decision-making. Henry
Mintzberg, a professor at McGill
University, researched what real
managers do. See Table 1.3 for
the managerial roles by Mintzberg
(Cabrera, Altarejos, and Riaz 2016,
10).

CATEGORIES OF MANAGERIAL ROLES
ACCORDING TO MINTZBERG
1. INTERPERSONAL
Figurehead - As head of a department or an organization, a manager is expected to carry
out ceremonial and/or symbolic duties. A manager represents the company both internally
and externally in all matters of formality (Mulder 2016).
Leader - In this role, the manager motivates his/her workers. Managers communicate with
them, guide and support them to develop a positive work environment.
Liaison - A manager serves as an intermediary and a linking pin between the high and low
levels. In addition, he develops and maintains an external network. As a networker, he has
external contacts and he brings the right parties together. This will ultimately result in a
positive contribution to the organization (Mulder 2016).

2. INFORMATIONAL
Monitor - As a monitor, the manager gathers all internal and external information
that is relevant to the organization.
He is also responsible for arranging, analyzing, and assessing this information so
that he can easily identify problems and opportunities and identify changes.
Disseminator - As a disseminator, the manager transmits factual information to his
subordinates and to other people within the organization (Mulder 2016).
Memorandums and other important information are well disseminated from top-
level up to the managerial lower levels and vice versa.
Spokesperson - In this role, managers represent and speak for their organization,
as he or she communicates and transmit relevant information about their
organization to external parties.

3. DECISIONAL
Entrepreneur - As an entrepreneur, the manager designs and initiates changes and
strategies to enhance productivity and generate more income.
Disturbance handler - In this role, the manager always responds to employees’ disputes,
operational breakdowns, and other issues whether internal or external and uses solutions to
resolve the problems.
Resource allocator - This role of the manager describes his control and the allocation of
organizational resources which will be put in use in all organization’s operations.
Negotiator - As a negotiator, the manager participates in negotiations with other
organizations and individuals and he represents the interests of the organization (Mulder
2016).

MANAGERIAL SKILLS
Managerial skills may be classified into three: conceptual skills, human skills,
and technical skills.
 Conceptual Skills. Conceptual skills enable managers to think of possible
solutions to complex problems. Through their ability to visualize abstract
situations, they develop a holistic view of their organization and its relation to
the wider external environment surrounding it. Top-level managers must have
these conceptual skills to be successful in their work.
 Human Skills. Human skills enable managers in all levels to relate well with
people. Communicating, leading, inspiring, and motivating them to become
easy with the help of human skills. Dealing with people, both in the
organization’s internal and external environment, is inevitable, so managers
must develop these human skills.

MANAGERIAL SKILLS
 Technical Skills. Technical skills are also important for managers for them to
perform their tasks with proficiency with the use of their expertise. Lower-level
managers find these skills very important because they are the ones who
manage the non-management workers who employ varied techniques and
tools to be able to yield good quality products and services for their company
(Cabrera, Altarejos, and Riaz 2016, 11).

DEFINITION OF TERMS
Manager - an individual engaged in management activities such as supervising,
sustaining, upholding, and assuring responsibilities for the work of others in his/her
work group, team, department, on the organization in general.
Managerial Roles - the various roles played by managers, such as interpersonal,
informational, and decision-making roles
Managerial Skills - the various skill that managers must posses, such as
conceptual human and technical skills

ACTIVITY 2
A. Identify which of the management roles does each of the following belong?
ROLES
Entrepreneur Spokesperson
Disseminator Resource allocator
Leader Liaison
Monitor Disturbance handler
Negotiator Figurehead
ROLES
Interpersonal
Informational
Decisional

ACTIVITY 2
B. Identify which of the management skills does each of the following belong?
SKILLS
Critical thinker Imaginative
Motivator Problem solver
Good Leadership Expertise in the field
Perform with proficiency Creative Inspiring
Good communicator Multi tasking
SKILLS
Conceptual
Skills
Human
Skills
Technical
Skills

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