CHAPTER 1 –CONCEPTS, THEORIES AND FUNCTIONS, ROLES, AND SKILLS OF MANAGERS

A. DEFINITION OF MANAGEMENT

HAROLD KOONTZ
 Management is an art of getting things done through and with people in formally organized group.
FREDERICK W. TAYLOR
• An art of knowing what to do, when to do and to see that it is done in the best and the cheapest way
HENRY FAYOL
• To manage is to forecast and plan, to organized, to command and control.

B. MANAGEMENT FUNCTIONS

1. PLANNING
Is deciding in advance, what to do, whent to do and how to do it. It is the determination of courses of action
to achieve desired goals.
2. ORGANIZING
It is the process of bringing together physical, financial and human resources and develoing productive
relationships amongst them for achievement of organizational goals.
To organize a business is to provide it with everything useful or its functioning ex. Raw materials, tools,,
capital and personnel.
3. STAFFING
It is the function of manning the organization structure and keeping it manned.
The main purpose of staffing is to put the right man on the right job.
It is the managerial function of staffing involves manning the organization structure through proper and
effective selection, appraisal and development of personnel to fill the roles designed in the structure.
4. DIRECTING
It is the managerial function which actuates the organizational methods to work efficiently for achievement
of organizational purposes.
5. CONTROLLING
It is measurement and correction of performance activities of subordinates in order to make sure that the
enterprise objectives and plans desired to obtain them as being accomplished.

WHY study management?

The better you can work with people, the more successful you will be in both your personal and your professional
lives.
- Employers want to hire employees who can participate in managing the firm.
- Even nonmanagers are being trained to perform management functions.

3. What is a manager
A manager achieves objectives through efficient and effective use of resources.
• Efficient – doing things right
• Effective – doing the right thing
Functions of managers
1. Planning
2. Organizing
3. Leading
4. Controlling
Planning
1. Setting objectives
2. Determining how they’ll be met
Organizing
1. Delegating and coordinating tasks
2. Allocating resources
Leading
1. Influencing employees to achieve objectives
Controlling
 1. Establishing mechanisms to make sure objectives are met.
2. Implementing mechanisms to make sure objectives are met

Roles
1. Interpersonal 2. Informational 3. Decisional
 The “figurehead”  The monitor  The entrepreneur
 The leader  The disseminator  The disturbance handler
 The liaison  The spokesperson  The resource allocator
 The negotiator

SKILLS
1. TECHNICAL SKILLS
This is the knowledge of and proficiency in activities involving methods, procedures, and processes techniques to
achieve the desired results.
a. “Business skills”
b. Using methods and techniques to perform a task.
c. Keeping up with the latest technology in your job.

2. Human(Interpersonal )
This is the ability to work with people;
• it is cooperative effort.
• It is the creation of work environment in which people feel secure and free to express their opinions.
a. “People skills”
b. Your relationship with all individuals and groups
c. Understanding
d. Communicating
e. Motivating
f. Resolving conflict
g. Working as a team member
h. Ethics
i. “It’s not what you know, it’s who you know.”

3. Design (Decision-making)
a. Select alternatives to solve problems

b. Take advantage of opportunities

c. Be able to conceptualize, diagnose and analyze
d. Use math skills
e. Manage time
4. Conceptual
 This is the ability to see the over-all picture, to identify important elements in a situation and to
understand the relationships among the elements.

What resources does a manager use?

 Human Resources- the people. Your most valuable resources
 Financial Resources the money, the budget
 Physical Resources the buildings, the equipment, supplies
 information-computers, reports

Differences among managers

The three levels of management

1. Top managers

 CEO, president, or vice president

 Manage the entire organization or major parts
  Develop the purpose, the goals, strategies, long-term plans
 Report to board of directors or other executives
 Supervise middle managers
 Develops and reviews long-range plans and strategies
 Evaluates overall performance of various departments and ensures cooperation.
 Consults subordinates, manages on subjects or problems of general scope.
2. Middle Managers
 Sales manager, branch manager, or department head
 Implement top manager’s strategies by developing short-term plans
 Report to executives
 Supervise first-line managers
 Makes plans of intermediate range and prepare long-range plans for review by top management.
 Analyzes managerial performance to determine capability and readiness for promotion.

3. Supervisory Management (First-line managers)

 Crew leaders, supervisors, head nurse or office manager
 Implement middle manager’s plans
 Report to middle managers
 Supervise operative employees
 Makes detailed, short range operating plans
 Reviews performance of subordinates
 Supervise day-to-day operations
 Makes specific task assignment
 Maintain close contact with operative employees

Non management operative employees

 Worker in the organization who are supervised by first-line managers

Theories of management
A. Classical approach
• It emphasized rationality and making organizations and workers as efficient as possible.
1. Scientific Management Theory
• Started the era of modern management during the late 19th and early 20th centuries.
a. Developed by Frederick W. Taylor-Father of Scientific Management
 He advocated the systematic training of workers in “the one best” practice rather than allowing them
personal discretion in their tasks.
 He believed that the workload would be evenly shared between the workers and management with
performing the science and instruction and the workers performing the labor, each group doing “the work for which
it was best suited”
 His strongest positive legacywas the concept of breaking a complex task down into a number of subtasks,
and optimizing the performance of the subtasks.
 It espoused careful specification and measurement of all organizational tasks.
 Tasks were standardized as much as possible.
 Workers were rewarded and punished.
 This approach appeared to work well for organizations with assembly lines and other mechanistic,
routinized activities.
 Taylor developed the guidelines for improving production efficiency.
 To find the one best way to do those jobs.
How Today’s Managers use scientific management
• When managers analyze the basic work tasks that must be performed
• Use time-and-motion study to eliminate wasted motions
• Hire the best qualified workers for a job
• Design incentive systems based on output

b. Frank and Lillian Gilbreth Also developed scientific management

 • Primary contribution was finding efficient hand-and-body motions and designing proper tools and equipment
for optimizing work performance.

2. General Administrative Theory

• Developed by Henri Fayol
• Focused more on what managers do and what constituted good management practice.
• Fayol’s attention was directed at the activities of all managers.
• His belief that management was an activity common to all business endeavors.
• Fayol’s 14 Principles of Management
1. DIVISION OF WORK
 Specialization increases output by making employees more efficient.
2. AUTHORITY
 Managers must be able to give orders, and authority gives them this right
3. DISCIPLINE
 Employees must obey and rspect the rules that govern the organization
4. Unity of Command
 Every employee should receive orders from only one superior
5. Unity of Direction
 The organization should have a single plan of action to guide managers and workers.
6. Subordination of individual interests to the general interest
 The interests of any one employee or group of employees should not take precedence over the interests
of the organization as a whole.
7. Remuneration
 Workers must be paid a fair wage for their services.
8. Centralization
 It refers to the degree to which subordinates are involved in decision making
9. Scalar Chain
 The line of authority from top management to the lowest ranks is the scalar chain.
10. Order
 People and materials should be in the right place at the right time.
11. Equity
 Managers should be kind and fair to their subordinates.
12. Stability of tenure of personnel
 Management should provide orderly personnel planning and ensure that replacements are available
to fill vacancies.
13. Initiative
 Employees who are allowed to originate and carry out plans will exert high levels of effort.
14. Esprit de Corps
 Promoting team spirit will build harmony and unity within the organization
Bureaucratic Management Theory
• (1930-1950)
Max Weber embellished the scientific management theory with his bureaucratic theory.
• He developed a theory of authority structures and relations based on an ideal type of organization he called
a bureaucracy
BUREAUCRACY
• A form of organization characterized by division of labor, a clearyl defined hierarchy, detailed rules and
regulations, and impersonal relationships.
• Weber focused on dividing organizations into hierarchies, establishing strong lines of authority and control.
B. BEHAVIORAL APPROACH
 Robert Owen, Hugo Musterberg, Mary Parker Follett, and Chester Barnard are the early advocates of
OB.
 They believed that the people were the most important asset of the organization that should be
managed accordingly.
C. QUANTITATIVE APPROACH
 It involves applications of statistics, optimization models, information models and computer
simulations to management activities.
 Today’s managers use the quantitative approach especially when making decisions as they plan and
control work activities such as allocating resources, improving quality, scheduling work, or
determining optimum inventory levels.
 TOTAL QUALITY MANAGEMENT is a management philosophy devoted to continual improvement and
responding to customer needs and expectations-also make use of quantitative methods to meet its
goals.
D. CONTEMPORARY APPROACH
a. SYSTEMS APPROACH
 says that an organization takes in inputs (resources) from the environment and transforms or
processes these resources into outputs that are distributed into the environment.
 It provides a framework to help managers understand how all the interdependent units work
together in order to achieve the organizations goals and that decisions and actions taken in
organizational area will affect others.
b. CONTINGENCY APPROACH
 It says that organizations are different, face different situations, and require different ways of
managing.
 It helps us understand management because it stresses there are no simplistic or universal
rules for managers to follow.
 Managers must look at their situation and determine that if this is the way my situation is,
then this is the best way for me to manage.