CHAPTER 1: NATURE AND CONCEPTS OF MANAGEMENT

INTENDED LEARNING OUTCOMES

1. Define Management
2. Identify the Scope of Management
3. Discuss the Difference between Effectiveness and Efficiency in Management
4. Examine the Managerial Levels
5. Compare the Types and Roles of Managers
6. Explain the Managerial Skills

MANAGEMENT DEFINITION

Management is a science as well as an art. It is a body of knowledge whose ideas

and principles have become the basis of organizational frameworks employed by many
businesses and organizations. It is considered a science because it evolved from a
number of theories that involved extensive studies and experiments. The management
principles practiced by businesspeople and professionals are based are based on a
scientific principles, scholarly studies, and statistical data. The problem-solving nature of
management benefits greatly from methods and practices adopted from scientific
principles.

However, many management experts point out the management is not an exact
science like mathematics. Despite the accuracy of data from statistics, the use of
mathematical tools is only one aspect of management. A good manager must be able to
look at situations and use creativity and imagination in coming up solutions to problems.
It is in this aspect that one can consider management as an art. Creativity and ingenuity
are important traits of managers that enable to effectively use business strategies in any
situation, and make innovations that result in new products, services, and processes this
ingenuity can be drawn from the effective application of knowledge and skills of decision-
makers.

5 MS OF MANAGEMENT
1. Man: human resources, both inside and connected with an organization
2. Materials: goods and services required to create
3. Machines: technology and expertise deployed towards the transformation
process
4. Methods: systems, procedures and processes
5. Money: required for generating all these Ms

EFFECTIVENESS VS EFFICIENCY

Efficiency and effectiveness are closely related concepts that managers apply to
render excellent performance. A skillful balance between the two defines the success or
failure of a manager. Some people interchange the concept of efficiency and
effectiveness, believing that they have the same meaning. However, these two concepts
are different from each other.
EFFICIENCY is the ability to maximize the output with minimum input. It is often
referred to as “doing things right”, and seeks to limit the wasted wich is costly for business.
There is an element of speed in efficiency since it requires things to be done quickly to
avoid wasting time and effort.
EFFECTIVENESS, meanwhile, is the capacity to attain an intended objective or
result. It is often called “doing the right thing”. The intention is to meet the desired goal
regardless of the amount of input required. Careful analysis and critical thinking are
present in effectiveness. If there is a goal that need to be achieved, the things that need
to be done are prioritized to achieve that goal.

WHY STUDY MANAGEMENT?

MANAGEMENT is the process of planning, organizing, leading, and controlling the

activities of an organization effectively and efficiently to achieve it goals. It plays a crucial
role in every organization, specially in today’s world that is much more complex and where
constant change is the norm. organizations, therefore, need to keep abreast of all these
changes and managers need to be dynamic and flexible to address the challenges that
changes bring.

Management also provides the means to maintain a firm’s competitive advantage.

It lays out the foundation of successful operations that lead to efficiency and profitability,
and establishes the kink between the development of strategies and their implementation
and control. The effective application of plans requires skilled manager who are able to
combine resources and capital in executing strategies and sustaining the operations of
their organizations.

SCOPE OF MANAGEMENT

a. Economic Resource (as viewed by the economist) 0 management is one of the

factors of production together with land, labor, capital. It determines in large measures
its productivity and profitability

b. A System of Authority (as viewed by the specialist in administration and

supervision) – hat managers have the right to command obedience

c. It is a class and status (as viewed by the sociologist) – that managers become elite
of brain and education. Entrance is based more and more on education/knowledge
instead of family and political connections
TYPE OF MANAGERS

Every manager should strive to become a proactive manager who embodies the true
traits of an outstanding manager.

1. The PROBLEM-SOLVING MANAGER focuses on providing solutions to every

problem of the company. This manager also concentrates on achieving the company’s
goals. However, managers of this type sometimes tend to overdo the task of solving every
problem which effects of his/her overall performance.

2. The PITCHFORK MANAGER threatens employee to work toward a goal. This

manager employs fear tactics and use an ‘’iron hand’’ to push employees for result to
avoid consequences. He/she is characterized as tough and rude.

3. The PONTIFICATING MANAGER neither follows any strategies nor prepares for any
situation or task and usually ends up with inconsistent results. The strength of this
manager is his or her ability to make people feel at ease when he or she is around since
listening to others is second nature to him or her. However, this overfriendliness usually
hinders his or her leadership decision and result in a less systematic approach to
problems therefore affecting his or her overall performance.

4. The PRESUMPTUOUS MANAGER neither follows only herself or himself. This type of
manager is not a team player and usually works for personal gain or interest. He or she
breeds unhealthy competition instead of cooperation and teamwork. This type of manager
characterized as being to proud and overconfident and has the tendency to compete
members of the team. More often than not, members of the team resign or leave the
company because of poor management.

5. The PERFECT MANAGER is open to change and personal growth. However, he or

she can be very mechanical and may lack the intrapersonal skills to interact more closely
with his or her team members. He or she just concentrates on fact and figures, for
example, about the product or service being offered.

6. The PASSIVE MANAGER wants to please everyone and make the team members
happy. However, being a crowd pleaser becomes a hindrance because of his or her lack
of drive assertiveness to manage the team. This type of manager is described as very
timid in his or her approach to avoid any confrontation with anyone specially from the
member of his or her team.

7. The PROACTIVE MANAGER possesses the good qualities of the other types of
managers. He or she has the drive of the problem-solving manager to spearhead
solutions, the persistence of his pitchfork manager, the enthusiasm of the pontification
manager, the confidence of the presumptuous manager, the passion of the perfect
manager for continued growth, and the desire of the passive manager to serve.

LEVELS OF MANAGEMENT

1. Top Level
- Also known as executive level. They are responsible for overall direction of the
organization. They are often called strategic managers

2. Middle Level
- They often called tactical managers. They are responsible for translating the general
goals and plans that are developed by strategic managers into specific objectives

3. Low Level
- They are also called first line or operational managers. They are responsible in training
and motivating employees

MANAGERIAL SKILL (KATZ & OTHERS)

A. Technical Skills
Application of specialized knowledge or expertise acquired through formal training and
its use
Mostly acquired in Low level of Management

B. Human Skills
Ability to work with people, understand and motivate group and individuals
This skill is important in all level of management

C. Conceptual Skills
Mental ability to recognize, analyze, diagnose and think through complex situations
This skill mostly required in top level of management

MANAGERIAL ROLES

A. Informational Roles
- Involves managing information from receiving, collecting and analyzing
information
- Three informational roles include:
• monitor (nerve center and interpretation),
• disseminator (networking within the organization)
• spokesperson (represent a company in media, conferences & convention)
B. Interpersonal Roles
- Involve interacting within and outside the organization
- Three interpersonal roles include:
• Figurehead (symbolic head, required to show face in social and legal conditions)
• Leader (motivating and directing subordinates)
• Liaison (networking outside for information and favors)

C. Decisional Roles
- Involve in making use of the information in arriving to a better solution to the
problem or opportunity
- Four Decisional roles include:
• Entrepreneur (opportunity finding and reacting)
• Trouble shooter (handling unexpected disturbance)
• Resource Allocator (initiating/approving changes)
• Negotiator (getting best deal of organization)