Reference:

https://www.youtube.com/watch?v=_OBqwhYLEJo
 Definition and Functions
of Management
and The Different Theories of
 Explain the meaning,
functions, types and theories
of Management.
 Would you believe
that even in your personal life
you are practicing
management ?
How? In what instances?
• Management of people has already been observed
and has long existed as there were already groups of
people in every community even before. This setup gives
different perspectives or ideas on how management is
defined. Management is defined as handling of people
tactfully and consolidating their efforts and activity in the
organization. But according to Theo Heimann management
can be defined in three ways:
1. Management as a noun, is used as singular collective noun (like group) which refers
to a discrete nature of grouping of managers or people in charge of running a company
or organization.
2. Management as a process, it refers to organizational process that includes strategic
planning, setting objectives, managing resources, deploying labor force, financial assets
and measuring results.
3. Management as a discipline, this refers to that branch of knowledge which is
connected to study of principles & practices of basic administration. It specifies certain
code of conduct to be followed by the manager and indicates various methods of managing
enterprise.
THE FOLLOWING ARE
THE DIFFERENT
MANAGERIAL
FUNCTIONS THAT A
MANAGER EXERCISE.
• This includes defining goals, establishing
strategy, and developing plans to coordinate
activities. It involves mapping out exactly
how to realize a specific goal. It also
requires knowledge to create, develop and
analyze opportunities which is known as
strategic planning. There are two types of
planning;

a.) Long range planning

b.) short range planning
• This is also known as the
backbone of management. It is the
structure of the organization which
help determines what task to be
done, who needs to do the task and
how the task is to be performed and
for whom to report to after the task
is achieved.
• This involves manning in the
organization. This requires
recruitment, thorough selection of
applicants and hiring of potential
employees for the organization. It is
also responsible for training and
development of the employee to be
promoted, transferred, demoted or
even be fired from the organization.
• This involves the supervision and motivation
of manager towards his/her employees to be
more productive and efficient. When there is a
high morale in the organization, it usually has a
significant impact on the performance and
productivity of the employees. Therefore, there
is a need for the manager to motivate
employees, supervise, and direct them to be
more effective and efficient at work. Good
communication is essential since this builds
positive interpersonal relationship from and
among employees. Thus this can resolve
conflicts that might arise in the organization.
• This deals with monitoring the
company’s progress and ensuring that
all other functions are operating
efficiently. Since this is the last stage,
uncertain situation usually arises that
might disrupt the operation of the
business. Therefore, there is a need for
the management to exercise corrective
actions after thorough assessment and
evaluation.
 The following are the different Theories of Management:

1. The Classical Theories of Management

2. The Neo-Classical Theories of Management
3. The Modern Theories of Management
 A. The Classical Theories of Management

Classical Theory (1900 – 1920’s) is the oldest theory.

This theory evolved in response to the shift from
handicraft to industrial production. The emphasis is
on the economic rationality of people and
organizations, motivated by economic incentives that
through their efforts yield greatest monetary benefits
or income.
 Classical management theories come in the likes of:
Theorist
Max Weber (1905)
Frederick Taylor (1911)
Frederick Taylor (1912-1924)
Henry Gantt (1910-1915)
Henry Fayol (1916)
Theory
The Theory of Social and Economic Organization - follows the principles of
bureaucracy such as; management by rules, employment are based on technical
qualification and other principles.
Principles of Scientific Management -proposed an objective and systematic
method to identify “the one best way” to do a job using scientific selection and
training methods; cooperation and clear division of responsibility between managers
and workers; pay for performance.
Time and Motion Studies -The expected results are employee satisfaction,
productivity and efficiency.
Project Scheduling or the Gantt Chart - a project scheduling model for
increasing the efficiency of project execution and completion.
The Administrative School of Management - emphasize that managers need
specific roles in order to manage work and workers. He enumerated 6
functions/roles of management the forecasting, planning, organizing, commanding,
coordinating and controlling.
B. The Neo-Classical Theories of Management
Classical Theories of Management

The Neo-classical theories believe that the best way toward

gaining maximum productivity from workers is through
motivation, structure and supporting employees, consider the
worker’s intrinsic value in their jobs and having emphasis in the
positive impact of social relationship of worker productivity.
Under neo-classical theories, theorist focuses on human relations and behavior of the employees.
 B. The Modern Theories of Management
Dealing with complexity is the core of modern management theory.
Focus is on the interaction between Organizations, Workers, and
Environment.

It is a synthesis of several theories such as, behavioral science,

Mathematics, statistics, operations / quantitative research and computing
technologies.

Application of management knowledge is extended to non-business

areas like education, government, health care and others.
 Theorist Theory
General System Theory Ludwig Von Bertalanffy (1937) - each part has a role to perform so the whole
can accomplish its purpose

Contingency Theory Joan Woodward (1965) - argued that technology and production system are
critical aspects of organizational design; advanced a contingency approach to
organizing

P. Lawrence / J.W. Lorsch (1967) - suggested that successful organizations match

their structure to the nature of the environment
Daniel Katz / Robert Kahn (1966) - present a unified, open systems approach
extending organizational theory beyond the boundaries of a single organization.
Fred Edward Fiedler (1967) - argued that leadership effectiveness is contingent
upon two interacting factors. Leadership style and situational favourableness.
 Management functions will all go to waste if
coordination, efficiency and effectiveness are not
practiced by an organization’s appointed managers. In
other words, top level managers, middle-level managers
and team leaders or supervisors must all be conscious of
the said practices of successful organizations as they
perform their management functions.
ACTIVITY:
Interview two (2) managers from different
organizations. Ask them if they really make use of all the
five management functions. Compare their answers and
try to explain why there are similarities or differences.
Write your output on a separate sheet of paper.