Definition and

Function of
Management
 “management is an art of
knowing what to do, when to do
and see that it is done in the best
and cheapest way.”

- FREDERICK WINSLOW TAYLOR

(MARCH 20, 1985 – MARCH 21, 1915
“an art of getting things done through
and with the people in formally
organized groups. It is an art of
creating an environment in which
people can perform and individuals
can cooperate towards attainment of
group goals”
- HAROLD KOONTZ
MANAGEMENT
- is an activity fueled with intention of
accomplishing desired results.

- management involves creating an

internal environment by putting into use
the various inputs of production.
Functions of Management
✓Planning
✓Organizing
✓Staffing
✓Directing
✓Controlling
- it is the basic function of management.
It deals with chalking out a future course
of action and deciding in advance the
most appropriate course of action for the
achievement of pre-determined goals.

Planning
- Refers to the process of putting together
physical, financial and human resources
for the achievement of organizational
goals.

Organizing
- According to Henry Fayol, “to organize a
business is to provide it with everything
useful for its functioning”

- raw material
- tools
- capital and personnel

Organizing
Organizing as a process involves:

- assignment of duties and accountabilities

- classification of grouping of activities
- coordinating authority and responsibility
relationships
- delegation of authority and creation of
responsibility
-identification of activities

Organizing
- refers to the management function of managing
the organization structure and keeping it
manned.

- putting the right person into the job is the main

purpose of staffing.

Staffing
Staffing involves:

- manpower planning
- recruitment, selection, and placement
- remuneration
- performance appraisal
- promotions and transfer
- training and development

Staffing
- Directing is one of the managerial functions that
is concerned with the organizational methods to
work efficiently for the achievement of
organizational purposes.

Directing
Directing has the following elements:

- communication
- leadership
- motivation
- supervision

Directing
 COMMUNICATION

- Is the process of passing information,

experience, opinion, intention, etc. from one
person to another.

Directing
 LEADERSHIP

- May be defined as a process by which manager

guides and influences the work of subordinates
in the desired direction.

Directing
 MOTIVATION

- Means inspiring, stimulating or encouraging the

subordinates to be passionate on their jobs.

Directing
 SUPERVISION

- Implies overseeing the work of subordinates by

their superiors.

Directing
- It implies measurement of accomplishment
against the standards and correction of
deviation, if any, to ensure the achievement of
organizational goals.

Controlling
- According to Theo Hainman, “controlling is the
process of checking whether or not proper
progress is being made towards the objectives
and goals and acting, if necessary, to correct
any deviation.”

Controlling
- On the hand, Koontz and O’Donnell said that
“controlling is the measurement and correction of
performance activities of subordinates in order to
make sure that the enterprise’s objectives and
plan desired to obtain them is being
accomplished.

Controlling
Planning:
this step involves mapping out exactly how to
achieve a particular goal

Organizing:
after the plan is in place, manager needs to
organize his/her team and materials according to
the plan.

Functions of Manager
Staffing:
he may decide to beef up his staffing by
recruiting, selecting, training, and developing
employees.

Leading:
a manager needs to do more than just a plan,
organize, and staff the team to achieve the goal.

Functions of Manager
Controlling:
after the elements are in place, manager’s job
is not finished. He needs to continuously check
results against goals and take any corrective
actions necessary to make sure that the plans
remain on the track.

Functions of Manager
THE FIRM AND
ITS
ENVIRONMENT
Business refers to any economic activity being
carried in by persons, natural or juridical which
involves buying, selling, transporting, financing
or rendering of service in pursuit of profit.

Business Environment
Environment in the context of business to the
surrounding circumstances in which the business
is operating.

Business Environment
Circumstances is classified in two factors

1. Internal Environment (Institutional)

2. External Environment

Business Environment
It includes 5Ms, Man, Management, Machinery,
Material, and Money usually within the control of
business.

Internal Environment
Are the factors that is beyond the control of business
enterprise such as:
a. Political Factor
b. Economic Factor
c. Socio-cultural Factor
d. Technological Factor

External Environment
1. Micro Environment
2. Macro Environment

Types of External Environment

-the environment which is close to business
and affects its capacity.
-it consist of
suppliers
customers
market intermediaries
competitors
public

Micro Environment
 SUPPLIERS

-they are the persons who supply raw

materials and required components to
the company

Micro Environment
 CUSTOMERS

-regarded as the king of the market.

Micro Environment
 CUSTOMERS

Types of Customers
a. Foreigners
b. Government and other Institution
c. Industries
d. Retailers
e. Wholesalers

Micro Environment
 MARKET INTERMEDIARIES

-they work as the link between business and

final customers

a. Financial Intermediaries
b. Marketing Agencies
c. Middleman
d. Physical Intermediaries

Micro Environment
 COMPETITORS

-every move of the competitors affects the

business.
-business has to adjust itself according to the
moves and strategies of the competitors.

Micro Environment
 PUBLIC

-every move of the competitors affects the

business.
-business has to adjust itself according to the
moves and strategies of the competitors.

Micro Environment
-it includes factors that create opportunities
and threats to business units.

Macro/General Environment
Elements of macro environment

a. Political Environment – it affects different business

units extensively.
-defense and military
-political belief of government
-political party orientation with business community
-political stability of the country
-relation with other country

Macro/General Environment
b. Socio-cultural Environment – influenced exercise by
social and cultural factors, not within the control of
business.

These factors includes:

attitude of people to work
family system
religion
education
marriage

Macro/General Environment
c. Technological Environment– A systematic application
of scientific knowledge to practical task.

Everyday there has been vast changes in products, services,

lifestyle and living conditions.

Macro/General Environment