Module Lesson 1

Nature and Concept of Management

I. Introduction
In this chapter, you will discover that all organizations – public or private, large, medium-size,
or small, profit or non-profit – need good managers in order to accomplish their goals; that
organizational management is, definitely, not an easy task; and that coordination, efficiency, and
effectiveness are required to carry it out.

Management is the process of coordinating and overseeing the work performance of

individuals working together in organizations, so that they could efficiently and effectively accomplish
their chosen aims or goals. It also defined as the process of designing and maintaining an
environment for efficiently accomplishing selected aims. Management functions include the following:

Management definition
 is the co-ordination of all resources through the process of planning, organizing, directing, and
controlling in order to attain stated objectives
 is the art of knowing what you want to do and then seeing that it is done in the best and
cheapest way
 is concerned with seeing that the job gets done; its tasks all centre on planning and guiding the
operations that are going on in the enterprise
 is a multipurpose organ that manages a business and manages managers and manages
workers and work
 consists in guiding human and physical resources into dynamic, hard-hitting organization unit
that attains its objectives to the satisfaction of those served and with a high degree of morale
and sense of attainment on the part of those rendering the service
 is an aspect of the business that doesn’t have the same specific duties some of the other parts
of the business have
 is a process with a social element. It requires the efficient use of resources combined with the
guidance of people in order to reach a specific organizational objective. It involves
responsibility to achieve the objectives and to fulfil specific organizational purposes through
economical and effective planning and regulation. It’s about taking charge and ensuring focus
is placed on the things and aspects of the business that help achieve the vision and the goals.

II. Learning Objectives

The learners shall be able to:
1. Explain the functions, roles, and skills of a manager
2. Understand the basic concepts and theories of management

III. Knowledge Enrichment

A. Pre-Assessment

Directions: Read the questions carefully. Encircle the letter of your answer.
1. Who is the Father of Scientific Management?
a. Henri Fayol c. Frederick W. Taylor
b. Joseph M. Juran d. W. Edwards Deming

2. Which of the following theory use the step by step scientific methods for finding the single best way
for doing a job?
 a. General Administrative Theory c. Scientific Management Theory
b. Evolution of Management Theories d. None of the above

3. Daniel manages a team that has missed their production goals for the past three months. After
reviewing each employee’s performance record. Daniel adjusted the sales goal to take additional
quality control measures into consideration. Why is this an example of controlling?
a. Because somebody will likely get fired as a result of this analysis.
b. Because Daniel acted as a leader and took responsibility for the project.
c. Because Daniel at team results and took appropriate corrective action.
d. Because Daniel is micromanaging his employees

4. Called the fifth functions of management. It involves the evaluation, recruitment, selection, training
and placement of individuals in specific job roles.
a. Staffing c. Controlling
b. Leading d. Organizing

5. Which theory that concentrates on the manager’s functions and what makes up good management
practice or implementation.
a. General Administrative Theory c. Scientific Management Theory
b. Evolution of Management Theories d. None of the above

Review

Semantic Web Map

What comes to your mind when you hear the word “Management” in the space provided
below, write down all your ideas.

Write a brief definition or description of management using the words from the semantic web map.
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C. Lesson Proper

To finally start our lesson you need first to understand the basic concepts and theories of
management.

What is the five functions of MANAGEMENT?

The major functions of management are discussed below:

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.

Organization demands assigning tasks, setting aside funds, and

bringing harmonious relations among the individuals and work
groups and teams in the organization.

Staffing indicates filling in the different job positions in the organization’s

structure; the factors that influence this function include: size of the organizations,
types of jobs, number of individuals to recruited, and some internal or external pressures.

Leading entails influencing or motivating subordinates to do their best so that they would be able to
help the organization’s endeavour to attain their goals.

Controlling 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.

Evolution of Management Theories

Evolution is usually defined as low stages of growth and development, starting from simple forms to
more complex forms. This, too, could be applied to management theories which have evolved from
simple improvement of work methods to more complex ones which focus not only on work method
improvement but also on customer satisfaction and the conduct of people at work.

Studying the evolution of management theories will help you understand the beginnings of
present-day management practices; why some are still popular and why others are no longer in use;
and why the expansion and development of these theories are necessary in order to adapt to the
changing times. Management theories include the following:

Scientific Management Theory

This management theory makes use of step by step, scientific methods for
finding thesingle best way for doing a job.

Who is Frederick W. Taylor?

Frederick W. Taylor (1856-1915)
is known as the Father of Scientific Management. While working in a steel
company in Pennsylvania in the United States (US) as a mechanical engineer,
he could not help but notice the workers mistakes and inefficiencies in doing
their routine jobs, their lack of enthusiasm, and the discrepancy between their
abilities and aptitudes and their job assignments; thus resulting in low output.
Because of these observations, he tried to identify clear guidelines for the improvement of their
Figure 1.2 Frederick W. Taylor
productivity.

Taylor’s Scientific Management Principles developed by Frederick W. Taylor 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 and then train, teach, and develop the worker.

3. Heartily cooperate with the workers so as to ensure that all work is done in accordance with the
principles of the science that has been developed.
4. Divide work and responsibility almost equally between management and workers.

General Administrative Theory

The General Administrative Theory concentrates on the manager’s functions and
what makes up good management practice or implementation.
Henri Fayol (1841-1925) and Max Weber (18-1920) are the personalities most
commonly associated with it. Fayol’s 19th century writings were concerned with
managerial activities which he based on his actual experience as a managing
director. He believed that management is an activity that all organizations must
practice and viewed it as separate from all other organizational activities such
as marketing, finance,research and development, and others. Weber, a German
sociologist wrote in the early 1900s that ideal organizations especially large
ones, must have authority structures and coordination with others based on
what he referred to as bureaucracy. Present-day organizations still make use
of Weber’s structural design.
Figure 1.3 Henryi Fayol

Table 1.1 Fayol’s and Weber’s contributions to General Administrative Theory

W. Edwards Deming Joseph M. Juran

Total Quality Management (TQM)

Total Quality Management is management philosophy

that focuses on the satisfaction of customers, their needs,
and expectation. Quality experts W. Edwards Deming
(1900-1993) and Joseph M. Juran (1904-2008) introduced
this customer –oriented idea in the 1950s; however, the
concept had few supporters.
The Americans did not immediately take to the idea since
the US was enjoying supremacy in the global market at the
time. Japanese manufacturers, on the other hand, took
notice of it and enthusiastically experimented on its application.
When Japanese firms began to be recognized for their products, Western
managers were forced to give a more serious consideration of Deming’s
and Juran’s modern management philosophy that eventually became the
foundation of today’s quality management practices.

DEMING’S 14 POINT FOR TOP MANAGEMENT

What is Fitness Quality According to Juran?

1. Quality of Design – Through market research, product, and concept.

2. Quality of Conformance – through management, manpower, and technology.
3. Availability – Through reliability, maintainability, and logistics support.
4. Full Service – Through promptness, competence, and integrity.

Functions, Roles, and Skills of 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 work group, team,
department, or the organization, in general.

Managerial Roles and Functions

 Organizations typically have three levels of management with their respective managers, top
level managers, middle level managers and frontline or lower managers.

1. Top-Level Management is also referred to as the administrative level. They coordinate services
and are keen on planning. The top-level management is made up of the Board of Directors, the Chief
Executive Officer (CEO), the Chief Financial Officer (CFO) and the Chief Operating Officer (COO) or
the President and the Vice President.
The Top-level management controls the management of goals and policies and the ultimate
source of authority of the organization. They apply control and coordination of all the activities of the
firm as they organize the several departments of the enterprise which would include their budget,
techniques, and agendas.

2. Middle-level Management is also referred to as the executory level, they are subordinates of the
top-level management and are responsible for the organization and direction of the low-level
management.
They account for the top-level management for the activities of their departments.
The middle-level managers are semi- executives and are made up of the departmental managers and
branch manager. They could be divided into senior and junior middle-level management if the
organization is big. They coordinate the responsibilities of the sub-unit of the firm and access the
efficiency of lower-level managers.

3. The Lower-level Management are the first line of managers as they feature at the base of
operations, so they are essential personnel that communicates the fundamental problems of the firm
to the higher levels. This management level is made up of the foreman, the line boss, the shift boss,
the section chief, the head nurse, superintendents, and sergeants.
They are the intermediary, they solve issues amidst the workers and are responsible for the
maintenance of appropriate relationships within the organization. They are also responsible for
training, supervising, and directing the operative employees.

Managerial Skills

1. Conceptual Skills - A manager’s ability to view the organization as a whole, understand how the various
parts are interdependent, and assess how the organization relates to its external environment.

2. Human Relations Skills - A manager’s interpersonal skills that are used to accomplish goals through the
use of human resources.

3. Technical Skills - A manager’s specialized areas of knowledge and expertise, as well as the ability to apply
that knowledge.

IV. Skills Development

 Activity:

Direction: Using the Venn diagram below, choose two of the five functions of management that
you think have a common characteristics and write in the middle of diagram, and next you will need
to compare and contrast this two functions on the left and right spaces provided.

B. Practice Exercise

Matching type: Match column A with column B. Write the letter of your answer on the space provided.

Column A Column B

______1. Leading A. Through market research, product, and concept

______2. Controlling
______3. Taylor’s Scientific Management Principles
______4. Simple forms to more complex forms
______5. General Administrative Theory
______6. Henri Fayol
______7. Management
______8. Total Quality Management
______9. Deming’s 14 Point
B. Focuses on the satisfaction of the customers and
their needs
C. Defined as the process of designing and
maintaining an environment for efficiency
accomplishing selected aims
D. Process of coordinating and overseeing the work
performance
E. Leadership
F. Subordination of individual interest to general
interest
G. Through management, manpower, and technology
H. To influence or motivate the subordinates to their
best.
I. Concentrates on the manager’s functions and what
makes up good management practice implementation
J. Develop a science for each element of an
 individual’s work to replace the old rule thumb
______10. Quality of conformance method
K. Evolution of Management Theories

C. Application

Think of difficult task which you, as a student, must accomplish. What are the steps needed to
complete the said task. Will the management theories discussed or you read earlier help you to be
more efficient in completing the task? Explain your answer.

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D. Post-Assessment

True or False: Read the statements carefully. Write ORGANIZATION if the statement is
correct and MANAGEMENT if it is incorrect. Write your answer on the space provided.

___________1. Top level managers are the general or strategic managers who focus on short-term
organizational concerns and emphasize the organization’s stability, development, progress, and
overall efficiency and effectiveness.
___________ 2. Frontline or Lower- level Managers are also known as operational managers and
responsible for supervising the organizations day-to-day activities.
____________3. Technical skills enable managers to think of possible solutions to complex
problems.
____________4. Human skills enable managers in all levels to relate well in people.
____________5. Chief Executive Officer, President and Board of Directors are part of top level
managers.

V. Character Enrichment

Reflection: Among the different types of managers discussed in this lesson, which type of
managers are more aware of their organization’s problems. Explain your answer.
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