LESSON 1

Fayol’s 14 Principles of Management:

 Division of Work. Managers should divide work among individuals and groups. This ensures that effort and attention will be focused on special portions of the
work.
 Authority. “the right to give orders and the power to exact obedience.”
 Discipline. It is essential to maintain discipline. You can apply penalties to inspire this common effort.
 Unity of Command. It is best if employees have only one direct supervisor
 Unity of Direction. Teams, which have the same goal, should work under one manager’s-direction.
 Subordination of Individual Interests to the General Interest. The interests of any employee should never be given more importance than the group's interest.
 Remuneration. Fair remuneration should be given to everyone. This ensures employee satisfaction. This includes both financial and non-financial compensation.
o Cost of living
o Supply of qualified personnel
o General business conditions
o Success of the business
 Centralization. refers to how involved employees are in the decision-making process. “lowering the importance of the subordinate role.”
 Scalar Chain. Employees should know their position in the organization’s hierarchy.
 Order. The workplace should be clean and safe for all employees.
 Equity. Managers must always be fair to staff.
 Stability of Tenure of Personnel. Managers must make an effort to reduce employee turnover.
 Initiative. Employees should have the necessary level of freedom they need to make and conduct plans.
 Esprit de Corps. Organizations should always attempt to promote team spirit and unity.

Fayol’s 6 primary/major functions of management:

 FORECASTING. examining the future and then making a plan of action.
 PLANNING. making plans of action.
 ORGANISING. This entails providing capital, personnel, and raw materials for running the business.
 COMMANDING. This is about optimizing returns from all employees.
 COORDINATING. This function means to unify and harmonize activities and efforts.
 CONTROLLING. This is about monitoring organizational progress toward goal attainment.

Business in General
 Business. Is where goods and services are exchanged for one another or money
o Goods
o Services
o Investment
o Output
o Privately
o Profit
o Not-for-profit organizations
o State-owned

Abraham W. Maslow’s" Hierarchy of Needs"

o Physiological needs, essential needs for survival
o Safety needs, security, stability, or protection
o Social need, group of belongingness, affection, love, and friendship.
o Ego or Self-esteem, self-recognition, or group satisfaction.
o Self-fulfillment, goal, or ambition.

Industry. Group of business firms offering similar goods and services.

2 General Types of Industry
o Extractive Industries: farming, fishing, and mining.
o Manufacturing Industries: Nokia, Honda, Shell, Purefoods, etc.

Elements of Business System

o Labor (MANPOWER)
o Land (MATERIALS)
o Capital (MONEY)
o Entrepreneur (MANAGEMENT SKILL)

LESSON 2
The Nature of Management
 Management. Both Science and Art.
 Multidisciplinary. it includes knowledge/information from various disciplines such as economics, statistics, math, psychology, sociology, ecology, operations
research, history, etc.
 Dynamic. Management has framed certain principles, which are flexible in nature and change with the changes in the environment.
 Relative, Not Absolute Principles. they should be applied according to the need of the organization.

Important Characteristics of Management

 Goal-oriented. Management is not an end in itself. It is a means to achieve certain goals.
 Integrative Force. The significance of management lies in the coordination of individual efforts into a team.
 Social Process. Management is performed by people, through people, and for people.
 Multidisciplinary. Management has to deal with human behavior in dynamic conditions.
  Continuous Process. Management is a fast-changing and ongoing process.
 Intangible. Management is an invisible force. It cannot be seen but its presence can be felt in the form of results.
 Art as well as Science. It contains a systematic body of theoretical knowledge and it also involves the practical application of such knowledge.

Key Management Concepts

 Plan. There must be some sort of plan implemented to achieve specified goals and objectives.
 Organize. Once the overall goals, objectives, and operational strategy have been set forth, the next function of management is to organize all the resources to
implement the organizational plan.
 Direction. Any organization is comprised of people, and this staff needs direction, a third management concept.
 Control. All the staff and workers of a company, at all levels of job function, need to have a clear understanding of the performance standards required of them.

LESSON 3

Characteristics of Planning
 Managerial function. Planning is the first and foremost managerial function and provides the base for other functions of the management
 Goal oriented. It focuses on defining the goals of the organization, identifying alternative courses of action, and deciding the appropriate action plan,
which is to be undertaken for reaching the goals.
 Pervasive. It is pervasive in the sense that it is present in all segments and is required at all levels of the organization.
 Continuous Process. Plans are made for a specific term, say for a month, quarter, year, and so on. Therefore, it is an ongoing process, as the plans are
framed, executed, and followed by another plan.
 Intellectual Process. It is a mental exercise at it involves the application of the mind, to think, forecast, imagine intelligently and innovate, etc.
 Futuristic. It encompasses looking into the future, to analyze and predict it so that the organization can face future challenges effectively.
 Decision making. Decisions are made regarding the choice of alternative courses of action that can be undertaken to reach the goal.

Steps Involved in Planning

 Analyzing Opportunities
 Setting Objectives
 Developing Premises
 Identification of Alternatives
 Evaluating Alternatives
 Selecting Alternative Plans
 Implementing an Action Plan and Establishing a Sequence of Activities
 Reviewing

Types of Planning
 Planning to Plan
o Operational. sit at the bottom of the totem pole; they are the plans that are made by frontline, or low-level, managers.
o Tactical. support strategic plans by translating them into specific plans relevant to a distinct area of the organization.
o Strategic is designed with the entire organization in mind and begins with an organization’s mission.