Lesson 2: Management

MANAGEMENT
According to Frederick Winslov Taylor (March 20,1856 - March 21, 1915), “Management
is an art of knowing what to do, when to do and see that it is done in the best and cheapest
way”.

Good management includes both being effective and efficient. Being effective means doing
the appropriate task, while being efficient means doing the same task correctly at least possible
space, time and effort.

EVOLUTION OF MANAGEMENT PRINCIPLES AND THEORIES

1. Classical School of Management (1860-1910)

- To find the “best way” to perform and manage tasks. It arose because of the need to
increase productivity and efficiency.

Contributors to the Classical School of Management

a. Frederick Taylor – Father of Scientific Management. He believed that

organizations should study tasks and develop precise procedures. He also
developed an incentive system that paid workers more money for meeting the new
standard.

b. Henry Gantt – He developed the Gantt Chart, a bar graph that measures planned
and completed work along each stage of production.

c. Henri Fayol – developed the 14 principles of management-

Division of work, Authority and responsibility, Discipline, Unity of command,
Unity of direction, Subordination of individual interest to general interest,
Remuneration of personnel, Centralization, Scalar chain, Order, Equity, Stability
of Tenure of Personnel, Initiative, Esprit de Corps
 2. Behavioral Management Theory (1910-1970)
- Believed that a better understanding of human behavior at work, such as motivation,
conflict, expectations and group dynamics, improved productivity.

Contributors to the Classical School of Management

a. Elton Mayo and F.J. Roethlisberger – contributed the Hawthorn experiments

b. Abraham Maslow – developed the need theory based on human needs, The
Maslow’s Hierarchy of Needs

3. Quantitative School of Management (1940-1960)

- Involves the use of quantitative techniques such as statistics, information models, and
computer simulations, to improve decision making.

4. The Systems Management Theory (1930-1980)

- A system is an interrelated set of elements functioning as a whole. An organization as
a system is composed of four elements:

a. Inputs. Material or human resources

b. Transformation processes. Technological and managerial processes
c. Outputs. Products or services
d. Feedback. Reactions from the environment

5. Contingency School of Management (1930-1980)

- Summarized as “IT ALL DEPENDS” approach. Contingency management
recognizes that there is no one best way to manage. It is viewed as a flexible
approach.

AREAS OF MANAGEMENT

1. Financial Management
- Covers the sourcing and using of funds and maximizing the wealth of the
organization. Headed by finance manager.
2. Human Resource Management
- Assures the organization with the right person for the right job. Headed by human
resource manager.
3. Marketing Management
- Deals with how to retain and attract more customers. Headed by marketing manager.
4. Production / Operations Management
- Concerned with the quality and quantity of production. Headed by
production/operations manager.
5. General Management
- Other areas which are not covered by the four areas of management mentioned above
is handled by the general management. In some cases, the general manager oversees
the work of the four area managers.
FUNCTIONS OF A MANAGER

1. Planning
- The process of forecasting the what, why, how, where and how much of what is
needed in the future.
2. Organizing
- The process of determining the work to be done, grouping related work together.
3. Staffing
- A series of step that managers perform to provide the organization with the right
people in the right positions.
4. Directing / Leading
- The process of motivating and leading workers to achieve the organizations goals.
5. Controlling
- Checking on how the plan is accomplished as tasks are performed.
6. Communicating
- Transmitting information within and outside the organization.
7. Problem Identification
- A way of checking if there is any hindrance or deviation in achieving the goals of the
organization.
8. Decision Making
- A way of choosing the best course of action in achieving the desired result.

SKILLS OF A MANAGER

1. TECHNICAL
- The ability to use expertise to perform particular tasks. Managers acquire these skills
initially through education, emersion and exposure activities and then further develop
them through training and job experience. Technical skills are needed most
importantly at lower levels of management.
Examples of are construction foremen in construction site, mechanic for mining,
heavy equipment operators in port operations, programmers for information
technology, teachers for education and etc.

2. HUMAN
- This skill demonstrates the ability to work well in with others. A manager with good
human skills has a high degree of self-awareness and a capacity to understand or
empathize with the feelings of others. Human skills are critical for all managers at all
levels because of the highly interpersonal nature of managerial work.

3. CONCEPTUAL
- The particular skill calls for the ability to think analytically. As managers assume
higher responsibilities in the organization, they must deal with more complicated
problems that have long term consequences. The higher the management level, the
more important the conceptual skills become.
MANAGEMENT SKILLS SCOPE

TOP
MANAGEMENT CONCEPTUAL
SKILLS

MIDDLE HUMAN
MANAGEMENT SKILLS

SUPERVISORY/
TECHNICAL
FIRST LEVEL
SKILLS
MANAGEMENT

The figure shows that as one goes higher in a management, the technical will not be
needed that much. Conceptual skills are needed as the manager goes higher into the management
level. No matter what level the manager is in, human skills is equally needed.
In a real workplace set up, technical skills will be less of a requirement as one goes
higher. Technical issues are frontline things that lower managers are trained to do while
conceptual concerns which by nature are higher issues.
Top managers are assumed to have enough experience and skills in dealing with
technicalities. Back in the days when they did not make any shortcuts, they also work their way
up, unless the position was given due to close familial relationship.

At this point, you have already possessed a glimpse of business organization and management.
Your understanding will be your basis to establishing your foundation in business studies.

As a jumpstart, take the concept-based assessment (Quiz 2) for this topic so you can be guided as
to the progress of your learning. Since the teacher will not be around to check on you, remember
to ALWAYS MAKE HONESTY YOUR PRIORITY.

“Do your best to present yourself to God as one approved,

a worker who does not need to be ashamed
and who correctly handles the word of truth.”
2 Timothy 2:15, NIV