ORGANIZATION AND

MANAGEMENT
Chapter 1. NATURE AND CONCEPT OF MANAGEMENT
 
 • This course is designed to
familiarize the students with
the basic concepts, principles,
and processes related to
business organization, and the
functional areas of
management. Particular
emphasis will be given to the
Course study of management
Description functions
organizing,
like planning,
leading, and
controlling, and orient the
students on the importance of
these functions and the role of
each area in entrepreneurship.
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Learning Objectives:
The learners…
1. discuss the meaning and functions
of management
2. explain the various types of
management theories
3. explain the functions, roles, and
skills of a manager
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Learning Objectives:
The learners…
1. discuss the meaning and functions
of management
2. explain the various types of
management theories
3. explain the functions, roles, and
skills of a manager
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Definition
and
Functions of
Management
  Lesson 1
DAY 1

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What is …
• is the process of coordinating and
overseeing the work performance
of individuals working together in
organizations, so that they could
efficiently and effectively
accomplish their chosen aims or
goals.
• It is also defined as the process of
designing and maintaining an
environment for efficiently
accomplishing selected aims
(Weihrich and Koontz 2005).
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 PLANNING

ORGANIZING
FUNCTIONS
OF STAFFING
MANAGEMEN
T LEADING

CONTROLLING
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 FUNCTIONS PLANNING
OF
MANAGEMENT
Involves determining the
organization's goals or
performance objectives,
defining strategic actions that
must be done to accomplish
them, and developing
coordination and integration
activities.

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 FUNCTIONS ORGANIZING
OF
MANAGEMENT
Demands assigning tasks,
setting aside funds, and
bringing harmonious
relations among the
individuals and work groups
or teams in the organization.
 

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 FUNCTIONS STAFFING
OF
MANAGEMENT Indicates filling in the different
job positions in the
organization's structure; the
factors that influence this
function include: size of the
organization, types of jobs,
number of individuals to be
recruited, and some internal or
external pressures.
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 FUNCTIONS LEADING
OF
MANAGEMENT
Entails influencing or
motivating subordinates to
do their best so that they
would be able to help the
organizations endeavor to
attain their set goals.

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 FUNCTIONS CONTROLLING
OF
MANAGEMENT Involves evaluating and, if
necessary, correcting the
performance of the
individuals or work groups
or teams to ensure that they
are all working toward the
previously set goals and
plans of the organization.
 
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 FUNCTIONS CONTROLLING
OF
MANAGEMENT Involves evaluating and, if
necessary, correcting the
performance of the
individuals or work groups
or teams to ensure that they
are all working toward the
previously set goals and
plans of the organization.
 
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Three Essential Factors in Management:
***Based from Webster Dictionary:
Coordination is the harmonious,
integrated action of the various parts
and processes of an organization.
Efficiency is the character of being
efficient or being able to yield the
maximum output from a minimum
amount of input.
Effectiveness is defined as being
adapted to produce an effect, or being
able to do things correctly.
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Three Essential Factors in Management:
***When applied to management functions:
Coordination ensures that all individuals,
groups, or teams are harmoniously working
together and moving toward the
accomplishment of the organization's vision,
mission, goals, and objectives.
Efficiency refers to the optimal use of scarce
resources-human, financial, physical, and
mechanical-in order to bring about maximum
productivity.
Effectiveness means doing things correctly"
when engaged in activities that will help the
organization attain its aims.
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Three Essential Factors in Management:
***Based from Webster Dictionary:
Coordination is the
harmonious, integrated
action of the various parts
and processes of an
organization.
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***When applied to management functions:
Coordination ensures that
all individuals, groups, or
teams are harmoniously
working together and
moving toward the
accomplishment of the
organization's vision,
mission, goals, and
objectives. TREY research
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Three Essential Factors in Management:

***Based from Webster Dictionary: ***When applied to management functions:

Efficiency is the Efficiency refers to the

character of being optimal use of scarce
efficient or being able to resources-human,
yield the maximum financial, physical, and
output from a minimum mechanical-in order to
amount of input. bring about maximum
productivity.
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Three Essential Factors in Management:

***Based from Webster Dictionary: ***When applied to management functions:

Effectiveness is Effectiveness means

defined as being doing things correctly"
adapted to produce an when engaged in
effect, or being able to activities that will help
do things correctly. the organization attain
its aims.
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EFFICIENCY VS EFFECTIVENESS

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Evolution of
Management
Theories
 
Lesson 2
  DAY 2

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 • It is usually defined as slow stages of growth and
What is … development, starting from simple forms to more
complex forms. This, too, could be applied to
management theories which have evolved from
simple improvement of work methods to more
complex ones which focus not only on work method
improvement but also on customer satisfaction and
Evolution the conduct of people at work.
• Studying the evolution of management theories will
help you understand the beginnings of present day
management practices why some are still popular and
why others are no longer in use, and why the
expansion and development of these theories are
necessary in order to adapt to the changing times.
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 Scientific
Management
Theory
Frederick W Taylor (1856-1915) is
known as the Father of
Frederick W. Taylor Scientific Management.
(1856-1915)
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 Scientific Management Theory
• This management theory makes
use of the step by step, scientific
methods for finding the single
best way for doing a job.

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Taylor's Scientific Management Principles are as follows:

1. Develop a science for

each element of an
individual's work to replace
the old rule of thumb
method.

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Taylor's Scientific Management Principles are as follows:

2. Scientifically select and then train

teach and develop the worker.

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Taylor's Scientific Management Principles are as follows:

3. Heartily cooperate with the workers

so as to ensure that all work is done in
accordance with the principles of the
science that has been developed.

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Taylor's Scientific Management Principles are as follows:
4. Divide work and
responsibility
almost equally
between
management and
workers.
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 General
Administrative
Theory

Henri Fayol Max Weber

1841-1925 1864 - 1920
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 General Administrative Theory
• This theory concentrates on the manager's
functions and what makes up good
management practice or implementation.
• Henri Fayol (1841-1925) and Max Weber
(1864-1920) are the personalities most
commonly associated with it.
• Fayol's 19th century writings were
concerned with managerial activities
which he based on his actual experience as
a managing director in a big coal mining
company.
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 General Administrative Theory
• Weber, a German sociologist
wrote in the early 1900s that
ideal organization especially
large ones, must have authority
structures and coordination
with others based on what he
referred to as bureaucracy.

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 Henri Fayol's Management Principles
Work division or specialization
Authority
Discipline
Unity of command
Unity of direction
Subordination of individual interest to general
interest
Remuneration/pay
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 Henri Fayol's Management Principles
Centralization
Scalar chain of authority
Maintenance of order
Equity/fairness
Stability/security of tenure of workers
Employee initiative
Promotion of team spirit or esprit de corps

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 Total Quality Management (TQM)

• This is a management philosophy that

focuses on the satisfaction of customers,
Joseph M. Juran
their needs, and expectations.
1904-2008 • Quality experts W. Edwards Deming
(1900-1993) and Joseph M. Juran (1904-
2008) introduced this customer-oriented
idea in the 1950s; however, the concept
had few supporters.
W. Edwards Deming
1900 - 1993
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• The Americans did not immediately take to
the idea since the US was enjoying
supremacy in the global market at the time.
• Japanese manufacturers, on the other hand,
took notice of it and enthusiastically
experimented on its application.
• When Japanese firms began to be
recognized for their quality products,
Western managers were forced to give a
more serious consideration of Deming and
Juran's modern management philosophy
that eventually became the foundation of
today's quality management practices.
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 Fitness of Quality According to Juran

• Quality of Design - through market

research, product, and concept
• Quality of Conformance - through
management, manpower, and
technology
• Availability - through ability,
maintainability, and logistic support
• Full Service - through promptness,
competence, and integrity
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 Juran's Quality Planning Roadmap

• Identify your customers.

• Determine their needs.
• Translate them into one's language
• Develop a product that can respond to needs.
• Develop processes which are able to produce those product
features.
• Prove that the process can produce the product
• Transfer the resulting plans to the operating forces.

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 Organizational Behavior (OB) Approach
• The Organizational Behavior (OB)
approach involves the study of the
conduct, demeanor, or action of
people at work.
• Research on behavior helps managers
carry out their functions-leading, team
building, resolving conflict, and others.
• Robert Owen, Mary Parker Follett,
Hugo Munsterberg and Chester
Barnard were the early supporters of
the OB approach.
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 • During the late 1700s, Owen noticed
lamentable condition in workplaces and
Organizational proposed ideal ways to improve the said
Behavior (OB) conditions.
Approach • Follett, in the early 1900s, introduced the idea
that individual or group behavior must be
considered in organizational management.
• Likewise, in the early 1900s, Munsterberg
proposed the administering of psychological
tests for the selection of would be employees
in companies.
• Barnard, the 1930s, suggested that
cooperation is required in organizations since
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Functions, Roles, and
Skills of a Manager

Lesson 3
DAY 3

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 Functions, Roles, and Skills of a Manager

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 Functions, Roles, and Skills of a Manager
• An individual engaged in management
activities is called a manager:
• Managers supervise, sustain uphold, and
assume responsibility for the work of
others in his or her work group, team,
department or the organization, in general.
• It is therefore, safe to assume that
organizational success is dependent on
managers who practice optimal utilization
of their human and material resources, and
who encourage high levels of performance,
effectiveness, and efficiency among the
individuals under their care. TREY
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Managerial Roles and Functions  - Top-level Managers
• They are the general or strategic
managers who focus on long-term
organizational concerns and emphasize
the organizations stability, development
progress, and overall efficiency and
effectiveness.
• They are concerned with the
organization's inter relationships with
their external environment.
• Chief executive officers (CEOS), chief
operating officers (COOS), presidents,
and vice presidents are examples of top-
level managers in big corporations, they
have authority over all other human
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resources of their organization.
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Managerial Roles and Functions  - Top-level Managers
• They are the general or strategic
managers who focus on long-term
organizational concerns and emphasize
the organizations stability, development
progress, and overall efficiency and
effectiveness.
• They are concerned with the
organization's inter relationships with
their external environment.
• Chief executive officers (CEOS), chief
operating officers (COOS), presidents,
and vice presidents are examples of top-
level managers in big corporations, they
have authority over all other human
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resources of their organization.
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 Managerial Roles and Functions  - Top-level Managers
• Traditionally, top-level executives
set the company's general
direction by designing strategies
and by controlling various
resources.
• At present, however, they too,
must act as organizational guides
who must elaborate on the wider
purpose of their organizational
existence, so that their
subordinates could identify and
be committed to its success.
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 Managerial Roles and Functions - Middle-level Managers
• They are the tactical managers in charge
of the organizations middle levels or
departments.
• They formulate specific objectives and
activities based on the strategic or general
goals and objectives developed by top-
level managers.
• Their traditional role is to act as go-
betweens between higher and lower
levels of the organization; they announce
and interpret top management priorities
to human resources in the middle
hierarchical level of the company.
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Managerial Roles and Functions - Middle-level Managers
• It has been observed that the
middle-level managers are more
aware of the company's problems
compared to managers in the
higher level because of their closer
contacts with customers, frontline
managers, and other subordinates.
• To be an ideal middle-level manager,
one must be creative so that they
could provide sound ideas
regarding operational skills as well
as problem-solving skills that will
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 Managerial Roles and Functions - Frontline or Lower-level Managers

• They are also known as operational managers and are responsible

for supervising the organizations day-to-day activities: they are the
bridges between management and non-management employees.
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Managerial Roles and Functions - Frontline or Lower-level Managers

• Traditionally, they are controlled and instructed by top- and

middle-level managers to follow their orders in support of the
organization's major strategy.

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Managerial Roles and Functions - Frontline or Lower-level Managers
• Lately, however, their role
has been expanded in some
large companies, as they
are now encouraged to be
more creative and intuitive
in the exercise of their
functions, so that they, too,
could contribute to their
company's progress and
the development of new
projects.
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Managerial roles are classified into three types: interpersonal,
informational, and decision-making.  

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Managerial Skills:
Conceptual Skills.
• Conceptual skills enable managers to
think of possible solutions to complex
problems.
• Through their ability to visualize
abstract situations, they develop a
holistic view of their organization and
its relation to the wider external
environment surrounding it.
• Top-level managers must have these
conceptual skills in order to be
successful in their work.
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Managerial Skills:
Human Skills.
• Human skills enable managers in all
levels to relate well with people.
• Communicating, leading, inspiring,
and motivating them become easy
with the help of human skills.
• Dealing with people, both in the
organization’s internal and external
environment, is inevitable, so it is
necessary for managers to develop
these human skills.
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Managerial Skills:
Technical Skills.
• Technical skills are also important
for managers for them to perform
their tasks with proficiency with
the use of their expertise.
• Lower-level managers find these
skills very important because they
are the ones who manage the
non-management workers who
employ varied techniques and
tools to be able to yield good
quality products and services for
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