Lesson 1.

1 | Managements and Its Functions

• All of us have our own experiences with different managers. They may be personal encounters or
those we have seen in movies and books. Surely, we have an idea of who managers are.
• Managers need to ensure the multifaceted welfare of the unit assigned to them. They are the link
between a company and its consumers.

Learning Objectives:
• Define the meaning of management.
• Explain the five core principles of management (planning, organizing, staffing, leading, and
controlling) and its functions.

Observing Managers
• Recall any experience you have had with a manager. It may be while you were in a commercial
establishment, eating in a food stall, watching a movie, shopping for some food items at the grocery,
or any activity where you had an encounter with a manager.

Questions.
What was your experience with a manager?

From this experience, what are your impressions of a manager and management?

How does an ideal manager manage a team?

Managers
Managers as Bridge between the Company and Employees
• Managers connect the employees to the employers on a large scale.
• They are the ones who bring up the concerns of every individual or subordinate under their
department or team.

Managers as Decision-Makers
Managers see the company from the top-level perspective and the perspective of every employee.

Managers are role models and motivators

• Managers uphold standards that subordinates look up to.
• They are also responsible, as leaders, to provide necessary motivation.

Effectiveness
• Doing the right thing.
• Staying focused on the
task assigned.
Efficiency
• Doing things right.
• Minimum input for
maximum output.
• Not necessarily cost
cutting.

Do managers need to have both effectiveness and efficiency?

Functions of Management
There are five main functions of management, namely planning, organizing, staffing, leading, and
controlling.

1. Planning ~ is usually done at the start of any task or venture.

• It is preparing for what is going to happen, looking at all possible scenarios.
• Planning is done not only at the beginning of a venture. When a firm has to do any move,
especially one with major implications, they undergo planning.

2. Organizing
• This is where they design the organizational structure.
• It also highlights the forming of the company’s chain-of-command and reporting relationships.

3. Staffing ~ is concerned with the hiring, selection, and training of individuals.

• Selection ~ is the process of administering examinations and conducting interviews of applicants.
• Hiring ~ is where applicants are already given job offers and asked for pre-employment
requirements.

4. Leading ~ is the most obvious and eminent managerial function.

• It is also concerned with how managers motivate their subordinates.

How important is leadership and motivation in management?

5. Controlling
• Controlling doesn’t necessarily mean that managers should control the actions of their
subordinates. It is more of being a mediator when problems arise.

• Management is getting work done through others.

• Management requires skilful and competent managers who:
o Bridge the head (executives) to the body (employees);
o Become the primary decision makers; and
o Act as role models and motivators.

• Managers require a wide array of skill set, but the two most common are effectiveness and
efficiency.
o Effectiveness ~ is doing the right thing.
o Efficiency ~ is doing things right.

• Managers have five main functions, namely planning, organizing, staffing, leading, and
controlling.

Questions.
True or False. Write true if the statement is correct. Otherwise, write false.
_____1. Management is manipulation only.
_____2. The process of management is the responsibility of the managers.
_____3. Minimum output with maximum input is the core principle of efficiency.
_____4. Not going beyond the boundaries of the task required talks a lot about effectiveness.
_____5. All managers should be both effective and efficient.

Management is getting work done through others.” With this in mind, how will you personally
define management?

Lesson 1.2 | Evolution of Management Theories

Organizations are composed of people.
The management is responsible for coordinating the skills and efforts of the employees for them to
achieve a common goal.
“Management is the art of getting things done through people.” ~ Mary Parker Follet, 2013

Learning Objectives:
• Explain the various types of management theories.
• Apply the concepts in solving a business case.

Share it, Sketch it!

Instructions:
1. Recall your experience of observing an organization.
2. Illustrate or sketch your observation of the manager and the working environment in the
organization.
3. Be ready to share your sketch and its interpretation in class.

Guide Questions:
1. What is the personality of the manager?
2. How did he or she respond to problems, conflicts, or complaints by customers?
3. How did he or she treat his or her subordinates?
4. What is your impression of the overall working environment in the organization?

Essential Question.
Which among the different management theories are applicable to specific business problems?

Evolution of Management Theories

The Four Main Theories
 Classical Management Theory
 Behavioral Management Theory
 Quantitative Management Theory
 Modern Management Theory

1) Classical Management Theory

• Developed during the 19th century
• Introduced as a result of the industrial revolution
• Focuses on managing work efficiently through systematic work processes and division of labor

Scientific Management Theory ~ Created within the 1880s to the 1890s

• Frederick Taylor was the most well-known proponent of this theory.
• He emphasized the need for a financial rewards system to motivate the workers.

Four Principles of Management

a. Conduct a scientific study of the task to replace the rule-of-thumb method.
b. Conduct a Scientific selection, training, and development of workers.
c. Cultivate a culture of positive cooperation between the management and the workers.
d. Create an equal sharing of work between the management and the workers.

Frank and Lilian Gilbreths

The Gilbreths suggested that workers should have definite days of work, scheduled breaks and
conducive working conditions.

Henry Gantt
He created the “Gantt Chart” which is a visual scheduling of tasks to be done to complete a project
or work.
Charles Bedaux
Bedaux introduced the rating system to measure the productivity of workers. He also suggested to
give workers a rest allowance.

Evolution of Management Theories

Bureaucratic Management Theory
• An approach developed by Max Weber in 1905
• Focused on a hierarchical system
• Was deemed effective with organizations that operate on a large scale.

Five Characteristics
1. Task Specialization ~ each of the employees has a responsibility to fulfil.
2. Hierarchical Structure ~ those with lower positions are subject to the orders of those with
higher positions.
3. Formal Selection ~ skills and credentials are necessary in deciding who is up for the
position.
4. Rules and Requirements ~ ensures uniformity and unity.
5. Impersonality ~ creates detached relationships which promotes objective decision making

Administrative Management Theory

• Henry Fayol created this theory in 1916.
• This theory is concerned with how the management effectively organizes and directs the
employees.

Henry Fayol’s 14 Principles:

1. Division of Work ~ specialization of workers can increase the output.
2. Authority ~ superiors have the right to give orders, but they must also be responsible for the
consequences.
3. Discipline ~ individuals must display proper conduct.
4. Unity of Command ~ an employee must receive orders from one supervisor only to avoid
conflict.
5. Unity of Direction ~ employees must follow a common objective.
6. Subordination of Individual Interests ~ common interest first before personal interest
7. Remuneration ~ compensation must be fair and proper.
8. Degree of Centralization ~ refers to the balance on who should be making decision in
terms of company size.
9. Scalar Chain ~ there must be a clear chain of command.
10. Order ~ a workplace must be clean and tidy.
11. Equity ~ all employees must be treated fairly.
12. Stability of Tenure of Personnel ~ employee replacement must be limited and should
instead keep their employees longer.
13. Initiative ~ superiors must encourage subordinates to take initiative.
14. Esprit de Corps ~ managers must boost employees’ morale to and promote team spirit.

2) Behavioral Management Theories

• Focused on the interests and needs of employees
• Gives importance to human behavioral factors to strengthen unity and teamwork

Human Relations Theory

• Elton Mayo developed this theory between 1924 and 1933.
• This theory states that individuals perform better when they feel that they are valued and belong to
the group.

Hawthorne Effect
• This states that workers collaborate with their colleagues and perform their tasks better when they
are given special attention.

Theory X and Y
• Proposed by Douglas McGregor in the 1950s
• Theory X perceives workers as lazy and needs to be controlled.
• Theory Y perceives workers as having a natural drive to work and do not need to be ordered
around.

3) Quantitative Theory
• Was introduced to improve management’s decision-making during the World War II
• Makes use of computers, mathematical models, and statistical tools

4) Modern Management Theories

• Takes advantage of technology and incorporates it with classical approaches
Utilizes statistical techniques to analyze, understand, and compare the relationship between the
management and the workers

Systems Theory
• Proposed by Ludwig von Bertalanffy
• An idea that all departments are parts of an open system which needs to interact with each other

Contingency Theory
• Developed by Fred Fiedler
• Managers must be able to adapt to the changing environments of the organization and must make
better decisions depending on the given situation.

Questions.
What management theory introduced the use of hierarchy in an organization?

True or False. Read each statement carefully. Write true if the statement is correct. Otherwise, write
false.
_____1. The industrial revolution led to the evolution of the management theories.
_____2. The systems and processes used by the organizations before the industrial revolution were
also used after this period.
_____3. The welfare of the workers was promoted in classical management theory.
_____4. The bureaucratic management theory focused on an authoritative system.
_____5. The behavioral management theory is more focused on the interest of the organization.

The evolution of the Management Theories started during the industrial revolution.
Four major categories:
 Classical Management Theory
 Behavioral Management Theory
 Quantitative Management Theory
 Modern Management Theory.

• The Classical Management Theories

o Scientific Management Theory ~ emphasized the scientific study of work methods to
make the worker more efficient.
o Bureaucratic Management Theory ~ focused on an authoritative system.
o Administrative Management Theory ~ concerned with how the management organizes
and directs the employees.

• The Behavioral Management Theories

o Human Relations Theory ~ highlighted the idea that individuals perform better when they
feel that they belong to and are valued in the team.
o Theory X and Y ~ assumed that there are two distinct types of workers in an organization.
One is the lazy type who needs to be controlled while the other does his or her work willingly.

• The Quantitative Management Theory ~ promotes the use of sophisticated mathematical

models and statistical tools in enhancing management skills.

• The Modern Management Theory ~ integrates technology with management techniques.

o Systems Theory ~ promotes management as an interrelated component of an organization.
o Contingency Theory ~ asserts that the management must be adaptable and must make
decisions according to the given situation.

Question.
Read the business case found in study guide and answer the question concisely.

What is the theory implemented by the management? Explain your answer.

Lesson 1.3 | Roles and Skills of a Manager

A manager is an important part of an organization as he or she is the one who performs the five vital
functions of management for the organization to achieve its goals.

Learning Objectives:
• Identify the functions roles, and skills of a manager.
• Explain the functions, roles, and skills of a manager.
• Differentiate the functions, roles, and skills of a manager.
• Apply concepts on the functions, roles, and skills of a manager.

Let’s Connect! ~ Act it Out!

1. Form yourselves into five groups with two to five members each.
2. Each group must list ten words that describe what a manager does and act each of them out
for the other groups to guess.
3. Each group will take turns in acting out each word.
4. The class will decide which group acts out first.
5. The group that will correctly guess the word shall be the next to act out, and so on.
6. The groups that will guess the greatest number of words will be the winner.
7. You have two minutes to form your groups, three minutes to list your words that describe
what a manager does, and five minutes to take turns in acting out, and guessing the words.
8. Refer to the guide questions below in brainstorming for the words.

Let’s Connect!
1. What does a manager do in planning? Based on what you have heard or experiences, what
are some common descriptions or impressions of a manager?
2. What description of a manager stood out the most to you?
3. Among the descriptions presented, what do you think are the roles and skills of a manager?

Essential Question.
What are the roles a modern manager plays and the skills he or she must possess to effectively
perform his or her functions in today’s complex business environment?

Types of a Manager
 Top Management
 Middle Management
 First-Line Management

Levels of Management and Their Responsibilities

1. Top managers ~ responsible for the overall direction of the organization
2. Middle managers ~ responsible for specific business units or department
3. First-line managers ~ responsible for production of goods and delivery of products and
services to customers

What is the importance of knowing the different levels of management and their responsibilities?

Roles of a Manager
The three categories of the roles of a manager by Henry Mintzberg (1973):
 Interpersonal
 Informational
 Decisional

1. Interpersonal ~ Indicates that it is a part of a manager’s duty to interact with different

people. Roles under this category are:
a. Figurehead ~ the manager acts as a representative in doing symbolic duties.
b. Leader ~ this role ensures that the manager motivates his or her employees in achieving the
company’s goal.
c. Liaison ~ the liaison role requires managers to establish a network of contacts.

2. Informational ~ Indicates that a manager collects information and transmit this to and from
different sources. The informational category includes:
a. Monitor – obtaining data from different sources and using it as a basis for decision-making
is the focus of this role.
b. Disseminator – this requires the manager to relay the information to his or her employees.
c. Spokesperson – being a spokesperson requires the manager to relay the information to
individuals outside the organization.

3. Decisional ~ This requires a manager to make company-related decisions.

a. Entrepreneur ~ this requires the manager to seek the improvement of products by being
innovative.
b. Disturbance Handler ~ a manager must know how to address problems and conflicts.
c. Resource Allocator ~ the resource allocator role requires the manager to allocate resources
efficiently.
d. Negotiator ~ the manager must participate in negotiating with other organizations or
individuals.

Skills of a Manager
Robert Katz ~ identified three skills managers need to possess:
 Human Skills
 Conceptual Skills
 Technical Skills

• Human Skills ~ It is the ability of a manager to communicate and work with people.
• Conceptual Skills ~ It is the ability of a manager to focus on ideas and create concepts.
• Technical Skills ~ It is the ability of a manager to be proficient in handling specialized tools and
techniques.

Questions.
Why should managers be aware of the roles and skills their positions require?

Fill in the blanks. Complete the term by filling in the blanks.

1. D _ _ s e _ i n a _ _ r (Disseminator)
2. _ p o _ _ e s p _ _ s o n (Spokesperson)
3. R _ s _ _ _ c e _ _ l o _ _ t o r (Resource Allocator)
4. L _ a _ _ _ n (Liaison)
5. D _ _ t u _ _ _ n _ e H _ _ d _ e r (Disturbance Handler)

Levels of Management
• Top Management is responsible for the overall direction of the organization.
• Middle Management is responsible for specific business units or departments.
• First-Line Management is responsible for the production of goods and the delivery of products and
services to customers.

The three types of managers are the top managers, middle managers, and first-line managers.

Roles of a Manager
• Interpersonal ~ Figurehead, Leader, Liaison
• Informational ~ Monitor, Disseminator, Spokesperson
• Decisional ~ Entrepreneur, Disturbance Handler, Resource Allocator, Negotiator

Skills of a Manager
• Human Skills
• Conceptual Skills
• Technical Skills

Read and analyze the case and answer the questions that follow concisely.

Katrina is the CEO and founder of K Cosmetics. She started the company out of her love for make-
up and has managed to make it grow into one of the top players in the industry by formulating
effective strategies. From only two employees when it was newly-founded, the company now has
1,000 employees, not including the part-time resellers.
Currently, the company is facing challenges that need immediate attention. First, there is an issue
about the composition of the company’s products, which some groups claim to have an ingredient
that is harmful to people.
Second, the employees have staged a protest and are planning to go on strike by not reporting for
work and barricading all the entrances of the company’s main office, production plants, and
distribution centers because the company refused to approve their request for a salary increase and
better benefits during the collective bargaining agreement (CBA) negotiation
You were hired by Katrina as the business consultant. Your job is to analyze the root cause of the
problem and provide a recommendation to Katrina on how to address the challenges. Read and
answer the questions that follow:
What management roles should Katrina play? What management skills should she apply in
effectively performing those roles? Explain your answer.