ISABELA STATE UNIVERSITY

Echague, Isabela
COLLEGE OF AGRICULTURE
DEPARTMENT OF AGRIBUSINESS & AGRICULTURAL ECONOMICS

ABM 211
(Concepts and Dynamics of Management)

MODULE 1
MANAGEMENT

1. Introduction
Module 1 deals with the introductory part of this subject. It discusses
the meaning and importance of management in the organization. It
also discuss the comparison of the management before and with
present management practices. The role of manager in the
organization that usually carry out the function of management is
likewise be tackled in this part of the module.

2. Learning Outcome
 The student can fully define and understand the meaning and
importance of management.
 Can differentiate the difference of management for today and
the fast.
 Know the roles of manager and other officers in the
organization.
3. Learning Content
a. Meaning and importance of management.
What Is Management?

Management is the process where a person plans, organizes,

directs and controls the activities and resources of the

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organization or company to achieve its goal in an effective and
efficient manner in an ever-changing environment. It is the
process of supervising and controlling the business affairs of the
organization.

Management also involves establishing a business environment

for the employees and employers so that they can work
together to achieve the organization’s goal successfully and
competently. It guides a group of people to combine their works
in a planned manner so as to attain the goal of the organization.

According to Paul Hawken,

Good management is the art of making problems so

interesting and their solutions so constructive that
everyone wants to get to work and deal with them.

Management is the administration of business concerns of public

undertaking. It is decision making process through which
purposes and objectives of business firms or organizations or
human groups are determined, clarified and effectuated. 

MANAGEMENT is the whole activities by means of which the

business units direct their desired actions towards achieving their
set goals. It is accomplishment of desired objectives through
establishing an environment favourable to performance by
people operating in organized groups.

Management is unifying and coordinating action, which

combines different activities of individual personnel into
meaningful and purposeful group endeavour.

Hence, management in brief is the efficient use of men, material

and resources towards achieving specific objectives.

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In order to achieve the desired objectives of an organization
through group action, “MANAGEMENT” is a must to direct,
coordinate and integrate the activities and affairs of the
organization.

James Stonner et. al (2003) defined the management as “The

process of planning, organizing, leading and controlling the work
of organization members and of using all available resources to
reach stated organizational goals”. All organizations have
people who are responsible for helping them to achieve their
goals. These people are called managers. Managers are
responsible for directing the efforts made by all in the
organization aimed at helping organizations achieving goals. All
managers in all organizations have the same basic responsibility
without considering type of organization. Manager who
manages work, leads people and achieves results through their
efforts.

The Importance Of Management

The importance of management can never be underestimated

or ignored as it’s a proven fact that the success of a company
entirely depends on how well it is managed.

Here’s why management is important for any business:

1. Aligning Goals

A company consists of employers and several employees who

work together. Everybody has their own goals. Management
gives them a common direction to achieve their goal together.

For example:

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The goal of a company is to maximize their output and profit. The
goal of an employee is to get the most out of the company in
terms of both salary and recognition. Management helps in
aligning these two goals by using effective employee motivation
strategies which makes him give his best to the organization.

2. Best Utilization Of Resources

The proper utilization of resources is really important for an

organization which operates in a competitive environment.
Management helps in the division of work and prevents the
employees from under-performing or getting overburdened with
work.

Every employee has their own field where they expertise.

Through management, the employees are given work related to
their field of knowledge. It increases the speed and accuracy of
work.

Moreover, management also makes that the work is

standardized so as to reduce wastage when it comes to other
resources.

For example:

Management makes sure that the person who is good in sales is

given work in the sales department only and not in any other
department. Also, it provides him with proper training to make
sure that not much time isn’t wasted on making him learn during
actual sales visits.

3. Reducing Cost

Management helps to combine all the factors of productivity

and organize them. It involves the best utilization of resources
which prevents wastage of time and efforts, which eventually

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reduces the wastage of money. Therefore management gives
better ROI (Return on investment).

Reduction in cost helps in getting a good position in the market

and keeps the company ahead in the competition.

4. Increasing Efficiency

The main aim of the company is to get the most efficient result i.e.
to achieve maximum profit by maximizing the output and
minimizing the input.

Management involves the optimal utilization of resources and

helps in cost reduction. These two factors consequently increase
the efficiency of the company.

5. Surviving In A Dynamic Environment

A company operates in a dynamic environment where a

number of external factors like political, social, economical etc.
affect its functioning. This makes it almost obligatory for the
company to be flexible and change its short term goals and
working styles according to the changing environment.

Management helps the company to adapt to the changing

environment in order to remain successful.

For example:

The leader in fast food, McDonald’s, had to make many

changes in its menu to survive in the Indian market which was
dominated by vegetarians.

6. Tackling Competition

Proper management always aims at sound functioning of the

organization and reduces the failure rates. Thus, helping to

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overcome tough situations and keeps the organization ahead of
competitors.

In the modern business environment, one can pursue their

organization in large markets through proper management.

7. Essential For The Welfare Of The Society

Good management not only reduces difficulty of the task but

also prevents the wastage of costly and rarely available
resources.

Management helps in providing good quality of services and

products which increases the living standard. It also leads to
more profit of the organization and thus providing fair wages
and generating more employment opportunities.

Examples Of Business Failure Due To Ineffective Management

1. Enron Management Failure

Enron, at the starting of 2001, earned $100 billion in revenue and

had 29,000 employees. But the company went bankrupt on
December 2, 2001. The shares of Enron worth $90.75 during its
peak time but were trading at $0.26 when the firm declared
bankruptcy on December 2, 2001.

Why?

Because Enron’s executives used accounting loopholes and

false report to hide billions of dollar debt due to failing projects
and deals. They mislead the entire company and forced the
auditors to delete and hide the evidence from the directors.

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Because of poor management, leaders failed to recognize all
these loopholes and the company finally went bankrupt.

2. Compaq Management Failure

Compaq was the largest supplier of PC systems and was one of

the most successful companies in the 80s and 90s.

In 1991 Eckhard Pfeiffer became CEO and planned to expand

the business and focused away from the audience and market.
Compaq acquired a service business, Digital Equipment
Corporation, for $9.6 billion 1998. The problem here was that
even though the merger looked good on the outside, the
management didn’t consider that DEC developed many
products that were of no use to Compaq and would have
added extra burden to the company.

Even though the company was successful in divesting some

parts of DEC and other not-profit making investments like
Altavista, the company lacked direction and honesty. The top
executives including the CFO Earl Mason and CEO Eckhard
Pfeiffer became a part of several scandals and were forced to

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 quit. As a result, the company lost to Dell first and then to other
competitors.

Thus, due to poor management of the CEO, the company was

ousted in 1998 and was purchased by Hewlett-Packard in 2002.

3. Bottom-line?

To conclude, management is important for every business as it

can make or break it. Good management can give the business
a boost and take it ahead in the competition. So, turning a blind
eye to it is not an option.

Management skills are required in every industry and every walk

of life. So, it is very important to know what role management
plays and how great an impact it can have on business.

b. Management in today and yesterdays

Ancient/ Early Management

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There are numerous examples that illustrate how management
has been practiced for years.

Firstly, the Egyptian Pyramids are nothing but a true example of

efficient management. Secondly, the Great Wall of China is yet
another exemplary which exhibits how well things were managed
that result in something worth appreciation.

Other examples of early management include assembly line,

accounting systems, and numerous personnel functions.

In addition, Adam Smith the Father of Economics and author

of The Wealth of Nations published in 1776, has brilliantly stated
the economic advantages of the Division of Labour. Division of
Labour refers to the breakdown of complex tasks into simpler,
repetitive tasks.

Lastly, the introduction of the industrial revolution came in

increased dependency on machinery combined with the division
of labor. Moreover, following the different management functions
became a mandate.

Pre-classical Contributors of Management Theory

The ideas given by the below-mentioned contributors date back
to the late 1800s. Considering the ideas in a sequential manner
we have:-

1771-1858, Robert Owen: He was a British Factory owner and

showed concern with respect to the living and working conditions
of the workers.

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1792-1871, Charles Babbage (Father of modern Computing): He
laid emphasis on the concept of profit sharing.

1844-1924, Henry Towne: He proposed the idea to develop

management principles that could be applied across different
management situations.

The Genesis of Early Management Idea

The ultimate goal of an organization is to work in the most
efficient manner by judiciously utilizing its resources, getting others
to work hard in achieving the organizational objectives. Moreover,
keeping a tab of whether the tasks are being accomplished well
in time or not.

Modern Management
Modern Management comprises different systematic and
analytical methods that aid in the decision-making process and
improvement of overall efficacy in an organization. It focuses on
the development of different parameters and factors affecting
the workers.
In the words of Mary Parker Follett or the Mother of Modern
Management, “Management is the art of getting things done
through people.”

System Theory

It is observed as one of the most dominant organizational theory.

This theory considers the organization as either open or close. A
closed organization is the one that is not affected by the changes
in the business environment while an open organization is.

Contingency Theory

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It is based on the fact that management effectiveness is
dependent on the application of different management
behaviors. In short, the way things are managed is subject to
change depending on the circumstances.
This theory gives the managers an array of ways to react to
problems and unexpected situations.

Quantitative Approach

This approach uses different quantitative techniques such as

statistics, computer simulations that improve the overall
decision-making process. In today’s time wherein we observe an
exponential increase in the use of data, the quantitative
approach encourages managers to make decisions with the help
of mathematics and statistics.

Modern Theory

The modern theory considers the organization as an open system.

This implies the continuous interaction of the organization with its
environment for sustainable growth. There are different micro and
macro factors that affect the growth of an organization. An
organization comprises of several elements such as input,
transformation, output, and feedback.
As per the modern theory, the organization is dynamic in nature
and is probabilistic in nature. By probabilistic it means the results
are uncertain and purely dependent on the chances of
occurrence.

Total Quality Management/TQM

It is a continuous and structured process that helps in overall

organizational management. The major emphasis of TQM is
reducing errors, continual improvement of internal practices and
the organization’s output.

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c. Role of Manager in the organization
A manager’s job is very crucial in an organization. He is a planner,
coordinator, producer and a marketer. The success of an
organization will depend upon the caliber of the manager in
utilizing the resources for achieving business goals. A manger is a
pivotal figure in the task of creating wealth. There are rapid
changes in technology, methods of production, marketing
techniques, financial set up and the manager should be
competent enough to cope with the changes.

Manager is defined as a person, who provides the organization

with leadership and who acts as a catalyst for change. Good
managers are most effective and permit desirable changes.

Ordinarily there are the two main functions of each manager:

Decision Making and Implementation.

A manager is a person in the organization who directs the

activities of others. The managers perform their work at different
levels and they are called by different names. The first line
managers are usually called supervisors or in a manufacturing
they may be called foremen. Middle level mangers include all
levels of management between the supervisory level and the
top level of the organization.

These managers may be called functional managers, plant

heads, and project managers. Near the top of hierarchy, there
may be top managers who are responsible for making
organizational decisions and setting policies and strategies that
affect all the aspects of the organization. These persons may be

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called vice-president, managing director, chief executive officer
or chairman of the board etc.

Managerial Functions:

A manager has to perform functions like planning, organizing,

staffing, directing and controlling. All these functions are
essential for running an organization smoothly and achieving
enterprise objectives. Planning is required for setting goals and
establishing strategies for coordinating activities.

Organization helps in determining what tasks are to be done,

how to do them, how to group the tasks and where decisions are
to be made. Staffing function is essential for employing various
types of persons and performing various activities like training,
development, appraisal, compensation, welfare etc.

The directing function requires giving instructions and motivating

sub-ordinates to accomplish their goals. A manager has to
perform the controlling function for monitoring activities to
ensure that they are being accomplished as planned and
correcting any significant deviations.

Managerial Skills:

A manager has to perform a number of jobs. It necessitates that

a manager should have proper skills to perform different jobs.

Henry Fayol put the qualities required by managers into the

following categories:

a. Physical – health, vigour, address.

b. Mental – ability to understand and learn; judgement,

mental vigour and adaptability.

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 c. Moral – energy, firmness, willingness to accept
responsibility, initiative, loyalty, tact, dignity.

d. Educational – general acquaintance with matters not

belonging exclusively to the function performed.

e. Technical – peculiar to the function.

f. Experience – arising from the work proper.

Robert L. Katz conducted research during early 1970’s and found

that managers need three essential skills or competencies ;
technical, human and conceptual. He also found that the
relative importance of these skills varied according to the
manager’s level within the organization.

Technical Skills:

A manager must have the necessary technical skills or the ability

to work with the resources, tools, techniques, procedures etc.
First line managers as well as many middle managers have
involved in technical aspects of the organization’s operations.
Technical skills include knowledge of and proficiency in certain
specialized such as engineering, computers, finance or
manufacturing. Even though the need for technical skills is less
when a manager moves higher in hierarchy but still technical
proficiency helps in taking decisions.

Human Skills:

It is the ability to work well with other people both individually

and in a group. Managers with human skills can get best out of
the people working with them. They know how to communicate,
motivate, lead and inspire enthusiasm and trust. These skills are

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needed by managers at every level but top managers need
them the most.

Conceptual Skills:

Conceptual skills are the ability to integrate and coordinate

various activities. Managers must have the ability to think and to
conceptualize about abstract solutions. They must be able to
see the organization as a whole and the relationships among its
various subunits and to visualize how the organization fits into its
broader environment. Conceptual skills are helpful in
decision-making. Since all managers have to take decisions so
these skills are essential for all managers but these become more
important as they make up the organizational hierarchy.

These skills can be depicted in a diagram:

Qualities of a Manager:

A manager has to undertake a number of functions from

planning to controlling. He has to take decisions for every type of
activity. The decisions of the manager influence the working of
an organization.

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He should have the following qualities so for performing his work
properly:

1. Education:

A manager must have proper educational background. These

days managers are supposed to have management education,
besides other educational qualifications. Education not only
widens mental horizon but also helps in understanding the things
and interpreting them properly. The knowledge of business
environment is also important for dealing with various problems
the organization may face.

2. Intelligence:

A manager has to perform more responsibilities than other

persons in the organization. He should have higher level of
intelligence as compared to other persons. Intelligence will help
a manager in assessing the present and future possibilities for the
business. He will be able to foresee the things in advance and
take necessary decisions at appropriate time.

3. Leadership:

A manager has to direct and motivate persons working in the

organization. He will provide leadership to subordinate. The
energies of the subordinates will have to be channelize of
properly for achieving organizational goals. If a manager has the
leadership qualities then he can motivate subordinates in
improving their performance and working to their full capacity
for the benefit of the organization.

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4. Training:

A manager has to acquire managerial skills. These skills consist of

technical skills, human skills and conceptual skills. These skills have
to be acquired through education, guidance, experience etc.
These skills are needed for all levels of managers.

5. Technical Knowledge:

A manager should have technical knowledge of production

processes and other activities undertaken in the enterprise. He
will be in a better position to inspect and guide if he himself has a
knowledge of those activities.

6. Maturity:

A manager should have mental maturity for dealing with

different situations. He should be patient, good listener and quick
to react to situations. He has to take many awkward decisions
which may adversely affect the working if not taken properly. He
should keep calm when dealing with subordinates. All these
qualities will come with mental maturity.

7. Positive Attitude:

Positive attitude is an asset for a manager. A manager has to

deal with many people from inside as well as from outside the
organization. He should be sympathetic and positive to various
suggestions and taken humane decisions. He should not
pre-judge the things and take sides. He should try to develop
good relations with various persons dealing with him. He should
understand their problems and try to extend a helping hand.

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8. Self-confidence:

A manager should have self- confidence. He has to take many

decisions daily, he may analyze the things systematically before
taking decisions. Once he takes decisions then he should stick to
them and try to implement them. A person who lacks
self-confidence will always be unsure of his decisions. This type of
attitude will create more problems than solving them.

9. Foresight:

A manager has to decide not only for present but for future also.
There are rapid changes in technology, marketing, consumer
behaviour, financial set up etc. The changes in economic
policies will have repercussions in the future. A manager should
visualize what is going to happen in future and prepare the
organization for facing the situations. The quality of foresight will
help in taking right decisions and face the coming things in right
perspective. In case the things are not rightly assessed then the
organization may face adverse situations.

Role of the Manager:

A role is concerned with the behaviour pattern of a manager

within an organization. Henry Mintzberg did a careful study of
five chief executives at work in the late 1960’s. He discovered
that the role of a manager is quite different from the notions held
at that time. For instance, the prominent view at that time was
that managers were reflective thinkers who carefully and
systematically processed information before taking decisions.

Mintzberg found that his managers were engaged in a large

number of varied, un-patterned, and short-duration activities.
There was little time for reflective thinking because managers

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encountered constant interruptions. Mintzberg provided a
categorization scheme for defining what managers do based on
actual managers on the job. He concluded that managers
perform ten different but highly interrelated roles. The term
management roles refers to specific categories of managerial
behaviour. Table gives the ten different roles of the manager.

Interpersonal Roles:

A manager has to perform some duties as a figurehead. He may

receive the guests from outside or preside over a social function
of employees. He may have to sign some legal documents as
head of the organization. These are the roles played as
figurehead. He has also to act as leader when he has to sort out
the activities of subordinates. He has not only to motivate the
employees but is also involved in hiring, firing and discipline
employees. The third role in interpersonal roles is of liaisoning. He
has to contract outside agencies for collecting business related
information. The outside information providers may be individuals
or groups.

Table. Mintzberg’s Different Managerial Roles

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Informational Roles:

All managers are required to perform informational roles. They

have to collect information from organizations and institutions

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outside their own. Managers also play the role of disseminators
when they supply information to subordinates in the organization.
This information is factual as well as with interpretations for the
benefit of users. A manager acts as a spokesperson when he
represents the organization to outsiders.

Decisional Roles:

According to Mintzberg, a manager performs four decisional

roles. He initiates and oversees new projects for the improvement
of organizational performance, this is the entrepreneurial role
played by him. As disturbance handler, manager takes
corrective actions in response to previously unforeseen problems.
He also acts as resource allocation when he assigns and
monitors the allocation of human, physical, and monetary
resources. He acts as a negotiator when he discusses and
bargains with other groups to gain advantage for his own unit.

Environment and Managers Roles:

The word environment is a collectivity of all factors within the

control of business and beyond the control of the individual
business. Environment is a macro concept and a business unit is a
macro business. A business operates within the given
environmental factors. The environment may be external as well
internal.

The external and internal environments have been explained

below:

External Environment:

External environment greatly influences the working of every

business.

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External environment may have the following components:

1. Economic Environment:

Economic environment constitutes of factors like capital, labour,

suppliers, customers and consumers.

(a) Capital:

Capital consists of owners funds and borrowed funds. Borrowed

funds are supplied by investors and creditors. Business needs for
funds arise for purchaser of plant and machinery, land and
building, equipment, materials, payments to labour and other
day to day expenses. These needs are met both from internal
sources and external sources. A manager has to remain in touch
with investors and creditors for meeting financial needs of the
business at the time of need.

(b) Labor:

The labour normally comes from nearby surroundings. Labour

unions try to regulate labour supply. A manager has to assess his
labour requirement, its quality and price etc. He has to maintain
contacts with trade unions and see that the unit is not adversely
affected by labour supply.

(c) Suppliers:

The suppliers are an important element of external environment.

The supplier include those of raw materials, equipment’s,
machinery etc. There is a need to have regular liaison with
suppliers to know the latest quality of goods available in the
market and to ensure supplies as per requirements.

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(d) Customers and Consumers:

The customers and consumers are the backbone of a business.

Manager should know the needs and preferences of these
people through market segment. The goods and services are
produced as per the likings of customers and consumers. New
products and services are also brought out to keep the tempo of
marketing efforts. While keeping inter-personal relations with
customers, the manager keep himself abreast about the
competitors also.

2. Technology:

The state of technology greatly influences the operations of an

enterprise. It is concerned with inventions and techniques. The
technological changes may give birth to new products as well
as new industries. One has to keep a watch on the developing
situation of technology and think of the ways for making its use.
The manager has to keep himself abreast of the technological
developments particularly in product improvement and new
opportunities.

3. Social Environment:

A business is directly influenced and affected by prevalent social

environment. Society provides labour force to the business and
has consumers for the products and services. In a democratic set
up, as at present, a manager comes in contact more than often
with the people in all walks of life, various social organizations,
educational institutions etc. All these contacts are useful and
essential for the business because it depends upon the society
for various inputs as well as outputs. The very survival of business
depends upon society.

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4. Political Environment:

The political system prevailing in a country influences business

decisions. In a democratic set up, the ideology of the ruling party
influences economic and business policies. A business manager
has to cope with the thinking of the ruling party in following
economic policies. The rules, regulations and laws of the country
affect the day to day activities of the enterprise. A business has
to comply with sales and excise laws, labour laws, taxation laws
etc. A manager should be well conversant with prevailing
political environment and try to benefit from various schemes
and programmes of the government.

5. Ethical Environment:

A manager has to keep in mind the ethical environment

prevailing in business while running his unit. Ethics are generally
accepted and practiced standards expected from business
managers. These ethics are influenced by the expectations of
society, employees, government etc. from the business. A
manager should aim at fair dealings with everyone coming in
contact with business. There should be a clear perception about
what is to be done and what is not to be done. A manager
should not only be aware of business ethics but should ensure
their proper implementation also. This will create confidence in
employees and public about the fair dealings of the business.

Internal Environment:

Internal environment is concerned with the day to day working

of the organization. A manager plays a vital role in the
organization. He provides leadership to others, coordinates the
activities of employees, delegates authority to subordinates,
takes important decisions, looks after human relation activities,

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acts as a spokesman for the organization etc. All these roles
make the job of a manager very important for harmonious
working. Important roles of a manager are as follows:

As a Leader:

An organization comprises of a number of persons working for

different jobs. These persons need the guidance and direction
for working towards a common goal. A manager plays the role
of a leader while defining the activities and objectives of various
persons in the organization. He helps in creating right type of
atmosphere and homogeneity within the work-group. The
quality of leadership will influence the actions and performance
of the group led by him.

As a Coordinator:

As a coordinator, a manager puts various resources, physical as

well as human, together for achieving organizational goals. He
mobilizes various resources, brings about intelligent
understanding and goodwill among employers for completing
enterprise work. Proper coordination will be possible with the
help of effective communication. A manager should create
good communication system so that various activities are
properly coordinated.

Delegator of Authority:

Delegation of authority means giving important work to the

subordinates. A manager cannot undertake every work himself.
He will have to rely on subordinates by assigning them
responsibilities and by delegating requisite authority to can them
out. The subordinates will gain confidence when they undertake
some work independently and will be readied for higher

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responsibilities. A manager has an important role in encouraging
subordinates to take up suitable work as per their capabilities
and expertise and prepare the next line of executives. He will
have to create proper communication system so that
subordinates are able to get regular guidance and response for
the activities taken up by them.

As a Decision-Maker:

Decision-making is one of the important functions of a manager.

He has to take decisions for various activities. Decision-making
requires broad vision, imagination, experience and knowledge.
A decision has to be taken after discussing various aspects of the
problem, analyzing them, developing possible alternatives and
selecting the appropriate one. The timing is also an important
element of decision-making.

A decision made at a right time will bring good results. A

manager has to develop consistency, firmness and conviction in
his decisions. A manager changing his decisions frequently may
leave his subordinates in doubt. A decision-making skill and
ability to take correct decision at appropriate time will become
a guideline for the subordinates.

Human Relations Practitioner:

A manager has to handle personnel problems of the employees.

Management tries to get maximum out of the employees and
efforts are made to improve productivity in the organization. The
employees also face problems and have grievances against
their superiors or the management.

A manager should have an insight into the problems and

grievances of employees and redress them in such a way that

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they feel satisfied and motivated. He should encourage
participation of subordinates in decision-making process. Human
relations problems can also be tackled timely if proper
communication system is maintained with all the employees
working in the organization.

As a Spokesman of Organization:

A manager acts as a spokesman for the organization. He deals

with outsiders and provides them with requisite information
required by them. He also maintains proper relations with all
interest groups including shareholders, employers, customers,
suppliers, government etc. For performing the role of a
spokesman, a manager should have an understanding of
principles of creating public understanding and the benefits of
keeping the public informed A spokesman helps in creating a
good image of the organization not only among employers but
also among outsiders.

Modern Challenges for Managers:

Every business has to cope with the external environment

prevailing at different times. This environment provides a set of
outside challenges that is difficult to control. These factors may
have an important impact on how well a manager performs. To
ensure survival, organizations must respond to environmental
developments with speed and effectiveness. We are discussing
here some key challenges such as information technology,
globalization and intellectual capital which have an impact on
the job of managing.

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Information Technology (IT):

There is a revolution in information technology. There are

computers, internet, intranets, telecommunications, and infinite
range of software applications available to get for getting the
things done in a better way. A manager has to make a choice
for using the best technology available. Many concerns have
employed specialists for making a proper selection of hardware
and software available at that time.

Managers must use technology to perform their work and

achieve desired results. The selection of IT must be made by
keeping in view the end user and work to be completed.
Managers must learn how to work with IT specialists to determine
the most effective technologies for the work to be achieved and
then consider the best way to implement those technologies.
Managers have to determine the best way to network an
organization’s system, also deciding about what network
information will be available to whom and what types of security
are necessary to protect the network.

Information technology will be successfully implemented only if

the employees are properly trained to use it. Effective managers
ensure that employees are associated at the time of selection
and implementation of technology. The IT challenge that
modern managers face is likely to continue unabated. Personal
computers (PC) started about 26 years earlier and internet was
started about 10 years back. All these developments have
greatly influenced the work place.

The use of this technology have improved the work performance

of employees. IT adept managers will have a bright future. Some
may start working for more than one organization without

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leaving their home office. Managers must remain aware of the
opportunities and threats posed to the organizations by the
unabated technology revolution.

Globalization:

The communication revolution has brought the whole world

closer. The use of satellites for information communication has
improved the things fast. The major component of globalization
of business, culture and economics is the ability and freedom to
connect to almost anyone, anytime, anywhere. The
communication revolution has helped the development of
global trading blocks and world trade agreements.

The trading blocks such as North American Free Trade

Agreement (NAFTA), Latin America’s MERCOSUR, Asia’s ASEAN
and European Union (EU) have originated in the past twenty
years. It does not look strange that European countries which
were fighting the wars during World Wars have now joined hands
for economic interests. The creation of World Trade Organization
(WTO) has facilitated the opening of markets for world trade.

The multinational companies have started shifting their

manufacturing activities to those countries where cheap and
trained labour is available. This has helped these companies in
reducing the costs of the products. The opening up of Indian
markets to multinational companies has changed the
complexion of markets. The Indian producers are now trying to
improve the quality of products and supplying goods at
competitive rates. The consumers are the happiest lot in
globalized marketing.

A manager has to plan his business strategies by keeping in view

the world economy. He has to prepare the organization for

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facing the new competition. Managers must find ways to beat
foreign competition on price and quality as consumer choices
widen. The globalization trend is not likely to change in future;
the best thing is to face it. Modern managers should be mentally
prepared to face the global competition in the future.

Intellectual Capital:

Intellectual capital is relatively recent term that has been coined

to reflect that principal assets of modern organizations lie in the
minds of their workers rather than in machinery, bricks and
mortar. Thomas Stewart has defined intellectual capital as the
“intellectual material-knowledge information, intellectual
property, experience-that can be put to use to create wealth. It
is the sum of everything everybody in a company knows that
gives it a competitive edge.” During 19th century and early part
of 20th century the main profession used to be agriculture. Most
of the people were directly or indirectly engaged in agriculture.

During the second and third decades of 20th century people

started shifting from agriculture to manufacturing. The World War
II gave Phillip to manufacturing industries because of war
requirements of the countries. In the second half of 20th century
information revolution was felt. During 1970’s manager began to
discover that they could gain efficiencies and competitiveness
by making use of information technology. The service sector
expanded rapidly during this period.

The application of information technology put additional burden

on workers. They had to first learn the use of this technology and
then constantly make efforts for improving their work. The highly
educated workers were required to make full use of information
technology. The Knowledge Worker is quite different from the

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worker of F.W. Taylor. The knowledge worker is expected to think
of new and better things for improving his work and performing
the job in a best possible way.

In Taylor’s system, ‘one best way of doing the things’ was

suggested by the supervisor but the knowledge worker is
supposed to determine his own best way of doing the things.
Today’s workers are also supposed to keep abreast with the new
changes in the technology and make use of it. They are
expected help in improving the overall productivity of the
organization. Such workers are the intellectual capital that is the
most important asset of the modern organization.

Modern managers have to use techniques for capturing and

using the knowledge generated in the organization. In order to
stay competition managers have to use the knowledge of
workers which has been stored in their minds. They have to use
techniques which can help the best possible use of knowledge
of workers for the betterment of the organization.

Elements of good management:

1. There are two dimensions of it. Human dimension: It is related
to skill and ability of people. Technical dimension: It is related to
intellectual capacity of people thereby efficient execution of
activities. Among these two, human dimension is very important.
2. Management is an art but not science. But every manager
should use the Management principles, knowledge, skill and
past experience as guidance to successfully operate the firm.
3. Good management is the key to success of firm
4. Successful managers stimulate highest potential returns from
the given resources by recognizing the optimality of input use,
enterprise combination and by minimizing the risk through plans
and programs.

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4. Teaching and Learning Activities
 Conduct web-research and discuss the different meaning and
importance of management.
 Compare the management of today with the previous
management practices in the organization. How its principles
and concepts of management different in each other?
 Enumerate and discuss the role of manager in the organization.
What are the do and don’t that the manager must be observed
to management the organization effectively.
 Determine the factors that contribute to become a successful
and failure of manager in the organization.

5. Recommended learning materials and resources for supplementary

reading.
 Lecture handouts and power point presentation be given for the
given topics.
 Actual documentary cases on organization’s management will
be provided as an actual exercises for the students.

6. Flexible Teaching Learning Modality (FTLM) adopted

Online (synchronous):
 Lecture will be delivered through this module and conduct
classes in the Google Meet.
 All instructions, assignments, online reading materials, quizzes,
exams will be facilitated through Google Classroom.
Remote (asynchronous):
 Provision of module, case study, exercises, problems sets,
etc…

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 The BSAB students who officially enrolled in this class can access my
on line lectures at i.e. “https://meet.google.com/qyv-urbw-cht” (this
will be posted in my group facebook page messenger as soon as
the class will start, in my personal website at
https://sites.google.com/site/djcnonoy/, or it will be texted an hour
before the start of online classes. They will be asked permission to
join and access the class. The access code will be provided to the
students to join the online class.

The reading materials, assignment, quizzes, and exams will be

posted in the Google classroom. The officially enrolled students can
register the Google classroom and enter the access code at
27cma2c and ask to join the class.

7. Assessment Task
a. Define management in the context on agribusiness operation.
b. Is the management an art or a science? Why?
c. What make the management significant for the success of the
organization?
d. What makes different the management for today as compared
to the past?
e. How important the manager in the organization?
f. What are the roles of the manager to effectively manage the
organization?
g. What are the qualities of a good manager that must be
possessed to effectively and efficiently defray his/her functions to
ran the organization?
h. Is a manager in “Born” or not? Why?

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8. References
Roderigues, Rafael A. and Erlinda S. Echemio. Fundamentals of
Management; Text and Philippine Cases 3rd Edition
Diwata Publishing, Inc. Metro Manila, 1997.
Robbins, S.P. and Censo, D.A., Fundamentals of Management, 2nd
edition, 1998.
Lussier, R.N. Management (Concepts, Applications, Skills
Development). 1997
Zulueta, De Lara, and Nebres, Management Theory and Practice.
Academic Publishing, 1999.
Puta, Gutierrez and Garcia, Business Organization and
Management, 6th edition, 1995.
Franco, Pinoy Management
Fajardo, F.R. Management, 1997
Franco E.A. Management in the Philippine Setting, National Book
Store Inc., 1988.

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