NATURE AND CONCEPT OF MANAGEMENT

 
MANAGEMENT
-It refers to the act of bringing together the work activities to achieve the organization's
goals and objectives. Basically, it means teamwork. The manager should be able to work
with his subordinates.
-It is essential that in any organization, the leader-manager must realize the importance of
people working harmoniously with the aim of effectively reaching the target goals of the
company.
 
5 FUNCTIONS OF MANAGEMENT: (ACRONYM: POSDICON)
 
PLANNING - includes identifying the aims & purposes of the business, its tactics and
developing plans to incorporate and synchronize activities.
ORGANIZING - a function that ensures that each job or position is not duplicated and
the corresponding authority is properly identified with the responsibilities assigned to the
person concerned.
STAFFING - identifies the qualified potential employees.
DIRECTING (or leading / motivating) - refers to encouraging people to work towards the
attainment of the company's goals and objectives.
CONTROLLING - involves evaluating the actual performance, compare it with the
standards and take the action needed.
 
Managers are expected to execute the above management functions whether he works for
his own company or employed by any existing firms. The challenges that a manager will
face includes managing people who comes from different culture. In addition, it also
includes handling workforce who has been with the organization for the last two to ten
years. It takes guts for a newly appointed manager to earn the respect from his colleagues.
Hence, there are skills that all managers must be able to acquire.
 
WHO ARE MANAGERS?
-Robbins (2005) stated in his book that "a manager is someone who works with and
through other people by coordinating their works with and through other people by
coordinating their work activities in order to accomplish goals." Hence, we may conclude
that a manager's mission is not about personal accomplishment. It's more on assisting
other people succeed in their respective jobs. In addition, it may also mean that a manager
has to ensure that the people he manages will work together for the achievement of the
company's objectives.
-Robbins (2005) further identified the different kinds of managers as well as the skills, to
wit:
 
CLASSIFICATION OF MANAGERS:
 
FIRST-LINE MANAGERS (Supervisors) - administers the work of operating employees.
MIDDLE-MANAGERS - administers the task of the supervisors and in his absence, the
activities of the operating employees.
TOP MANAGERS - they are in-charge for making company wide decision and setting
purposes, objectives and plans that affect the whole firm.

3 MANAGEMENT SKILLS
 
TECHNICAL SKILL - refers to the expertise of the person in his area of specialization.
HUMAN SKILL - refers to how one can blend with other people.
CONCEPTUAL SKILL - refers to the capability of the manager to conceptualize ideas for
the entire organization.
 
ROLES OF THE MANAGER
The managers is expected to execute different roles as he performs his various task.
FIGUREHEAD ROLE - managers perform traditional responsibilities.
LIAISON ROLE - communicates with his head, peers and people outside his organization.
MONITORING ROLE - he seeks important information that will be relevant in decision
making. The quality of the information will enable him to deliver sound decisions.
DISSEMINATION ROLE - managers convey the messages received from the
subordinates to members of the organization.
SPOKESMAN ROLE - managers convey the information or speaks on behalf of the whole
organization to outsiders.
RESOURCE ALLOCATION ROLE - he decides who gets the resources.
ENTREPRENEURIAL ROLE - he initiates improvement changes.
LEADER ROLE - he motivates people to perform better.
DISTURBANCE HANDLER ROLE - he reconciles and put harmony in the workplace.
NEGOTIATOR ROLE - he ensures to get the best bargain in any negotiation.
 
EVOLUTION OF MANAGEMENT THEORIES
Management existed many years ago although during those times the term "manager"
doesn't exist.
Industrial revolution came in when machineries were introduced during the pre-twentieth
century. This resulted to mass production and expansions of factories. In effect, these
developments demanded formal management guidelines in order to guide managers. Thus
the emergence of Management Theories. Some of these theories are discussed below:
SCIENTIFIC MANAGEMENT THEORY
-Frederick Taylor introduced this management theory at the time that there were
shortages in skilled labor at the start of the 20th century.
-Taylor emphasized the importance of using the " one best method" in order to
systematize the process of creating a product. E also initiated the "Differential Rate
System" wherein he encouraged the owner of the company to increase the wages of
workers who are considered to be productive.
-Taylor's followers- the husband and wife team named frank and Lillian Gilbreth devised
the scientific management theory later on.
Contributions of scientific management theory:
o Production miracle
 o Efficiency techniques
o Encouraged the managers to seek the "one best method" of getting a job
done.
o Limitations of scientific management theory:
o Poor performers were laid off as well as the increased production
resulted from terminating the services of some workers.
o Changes in piece rate left the workers producing more output for same
income.
o Stress and tension among the workers speed up with their work.
o Social needs of the workers were overlooked.
o Unionism emerged due to exploitation of the workers. There was also
exploitation of customers in terms of product quality.
 
HENRY GANTT - an associate of Taylor; he abandoned the "differential rate system"
due to its small incentive effect on production; he also initiated the carting system for
production scheduling known today as the Gantt chart. It refers to a table or diagram that
reflects the status of the stages of production.
FRANK & LILLIAN GIBRETH - this husband and wife team made a devise called
MICROCHRONOMETER. It is intended to identify the hand-and-body motions of a
laborer primarily to determine the length of time spent doing each motion.

GENERAL ADMINISTRATIVE THEORY

o This was developed by Henri Fayol to address the issue as to how a
complex company such as factories can be managed efficiently and
effectively.
o Fayol developed the 14 basic principles of management:
o Division of work - it involves specialization of the workforce by dividing a
small part of work. It promotes mastery among the workers.
o Authority & Responsibility - authority means the power or the right
entrusted to make the work possible; Responsibility means the duty of
work assigned to a particular position. The two terms are inseparable.
o Unity of command - there must only be one superior that gives
directives/orders to employees to avoid confusion.
o Discipline - giving respect and comply with the policies of the
organization.
o Unity of direction - an organization should have a single plan of action to
guide its manager and workers.
o Subordination of individual interest over general interest - the welfare of
the organization should come first over that of the interest an individual.
o Remuneration - compensation must be fair.
o Centralization - authority are concentrated at the top hierarchy of an
organization.
o Scalar chain - refers to the sequence of positions from the highest to the
lowest rank.
o Order - people and materials should be in the right place at the right
time.
o Equity - respect, fairness, impartiality.
o Stability of tenure - organization should promote long term employment.
o Initiative - subordinates exercising creativity without directives from
subordinates. Managers should encourage them to propose and execute
their ideas or plans.
o Esprit de Corps - French word which means "Unity is strength".
Managers should promote team spirit and each employee should be a
team player.
o MAX WEBER - A German theorist who introduced BUREAUCRACY a
form of organization that emphasized division of work; the rules and
regulations, chain of command and impersonal work relationship.
 o MARY PARKER FOLLET - she stressed the significance of belonging to
a group as a way for people to grow in the organization.
 
ORGANIZATIONAL BEHAVIOR THEORY
-A theory that refers to the behavior of people at work.
-Contributors to this theory include Chester Barnard, Mary Parker Follet, Robert Owen
and Hugo Munsterberg.
-The best approach to work and productivity is through understanding of the worker.
Hence, the manager is expected to be good in human skills.
 
THE HAWTHORNE STUDIES
An experiment conducted by the Western Electric Company in Cicero, Illinois. The
engineers of the said firm wanted to test the effect of different illumination levels on
worker's efficiency. The results were confusing and so they referred the matter to a
Harvard Professor - Mr. Elton Mayo. After series of tests, Mayo concluded that the
experiments proved that behavior and attitudes are closely relevant; that group influences
greatly affect individual's behavior; that group principles create worker's output, and that
money is not an issue in determining the output. Further, Mayo also concluded that
friendship and associations have the strongest positive influence on productivity.