What is Management?

- The art of knowing what to do and doing it in the cheapest possible way (F.W. Taylor)

- It coordinates the activities of the organization, and plans for the future, as well as lead the organization in achieving
those plans

- Achieving objectives by the use of people and resources (George R. Terry)

TERMS AND DEFINITIONS

1. PLANNING – to plan in advance

2. ORGANIZING – coordination between human resources and material resources

3. ACTUATING – motivation and giving directions to subordinates

4. CONTROLLING – to ensure about the implementation of plan without deviation

Management Functions or Processes of Management

1. Newman & Summer – POLCon – Planning, Organizing, Leading, CONtrolling (4)

2. Henri Fayol – POCommaCOCon – Planning, Organizing, Commanding, Coordinating, Controlling (5)

3. Luther Gulick – POSDCoRB – Planning, Organizing, Directing, Coordinating, Reporting, Budgeting (6)

4. Warren Haynes & Joseph Massie – DmOSPlaConCommDi – Decision Making, Organizing, Staffing Planning, Controlling,
Communicating, Directing (7)

5. Koontz O’Donnell – POSDCon – Planning, Organizing, Staffing, Directing, Controlling (5)

6 FUNCTIONS OF MANAGEMENT (PODCIR)

1. Planning – planning ahead the objectives and how to achieve them

2. Organizing – delegation of responsibilities and authority, and establishing relationships. Assigning certain tasks

3. Directing – communication, leadership and motivation. Direct the progress and function of the organization

 Communication – the process of passing information and understanding it from person to person

 Leadership – the function whereby the person or manager guides and influences the work of his subordinates

 Motivation – to motivate the employee to give their best to the organization

4. Controlling – making sure that the work standards are met by workers and products/services offered. CONTROL
compels the events to conform to plans

Three Things involves in Controlling

1. Establishing standards of performance

2. Measuring current performance and comparing it against the established standard

3. Taking corrective action for performance that does not meet the standard

5. Innovation and Representation – creation of something new; Manager represents the organization he works for

 Two important ADDITIONAL MANAGERIAL FUNCTIONS

3 IMPORTANCE OF MANAGEMENT (Growth, Organized Effort, Dynamic and life giving)

1. Critical element in GROWTH of Country – the management of all the resources of the country dictates the growth of it

2. Essential in all Organized Effort – in achieving a common goal of a team, management is important

3. DYNAMIC, life giving element in every organization – there are many ways to practice management (dynamic) and it is
changing depending on situation

3 LEVELS OF MANAGEMENT

1. Lower Level – Foremen and White-Collar Supervisor; Manager must have Technical Skills

2. Middle Management – Sales, Personnel, and other Department Managers; Must have Human Relations Skill

3. Top Management – CEO, Executives etc.; Must have Conceptual Skills

Concepts and Terms

- Industrial revolution in Europe gave rise to the need to study Management

POCA

- Planning means planning in advance

- Organizing means coordination between human and material resources

- Controlling means ensure implementation without deviation

- Actuating means giving motivation

3 DIFFERENT THEORIES ON MANAGEMENT

1. Scientific Management Theory – by F.W. Taylor

- pay workers based on quality of work - Valued Time

- Differential Rate System was used - Opened for Exploitation of workers

2. Classical Organization Theory

- by Henri Fayol - focused on total organization management

- to find Guidelines for management that falls into patterns that can be analyzed

- Management is a Skill that can be enhanced

14 Principles of Management by Fayol A,C,D2,E2,I,O,R,S2,T,U2

1. Authority 4. Discipline 7. Initiative 10. Stability of Staff 13. Unity of command

2. Centralization 5. Equity 8. Order 11. Subordination for common good 14. Unity of

3. Division of Labor 6. Espirit de corps 9. Remuneration 12. The Hierarchy direction

3. Behavioral Management Theory (neo classical theory) – by Abraham Maslow, Elton Mayo, Dugulas Mcgregor

- emphasis on attitude of workers - human factor is the focus

- STUDIED into 2 phases a) Human Relation Movement b) Behavioral Science Approach

Human Relation Movement – how managers interact with workers

 Behavioral Science Approach – recognizes that people react differently

3 MODERN APPROACHES – aside from Human Relations Movement and Behavioral Science App

1. Quantitative App. – aka Management Science App.

- focused on quantitative tools to make decisions for the organization - focused on Precision

- rational, and scientific approach to management - gained popularity during WW2

2. System Approach – aimed at identifying nature of relationships of the larger system

- all branches affect other branches - the system cannot be analyzed without parts and vice versa

- System is Closed or Open – closed doesn’t interact with envi; Open interact with envi

- Synergy – departments become more productive if they cooperate w each other

- FLOW – flow of information, materials and energy to all parts of the system

- FEEDBACK – helps assess the performance, to be corrected if necessary

3. Contingency Approach – manager identifies which technique is most appropriate for different situations

- different approaches are not applicable to all situations