Concepts, Theories and Principles

 MANAGEMENT 

DEFINITION OF MANAGEMENT
 (Maloney, 1961) is unifying and coordinating activity, which combines the actions of
individuals into meaningful and purposeful group endeavour.

 (Petersen et. Al., 1962) is a technique by means of which the purposes and objectives
of a particular human group are determined, clarified and effectuated

 (Joseph Massie, 1964) is a process by which a cooperative group directs action

towards common goals. It is getting things done through other people.

 (Peter Drucker, 1977) denotes a function and the people who discharge it. It denotes
not only the social position and authority, but also a discipline and field of study.
“Management is task. Management is discipline. But management is also people.”
  MANAGEMENT 
 It is the process of coordinating and supervising personnel and resources to
accomplish organizational goals.

 (Terry, 1982) is a distinct process consisting of planning, organizing,

actuating and controlling, performed to determine and accomplish the
objectives by use of people and resources.
 It is the process of achieving organizational objectives by identifying and
utilizing human and material resources with efficiency, effectiveness and
efficacy.
a. EFFICIENCY – refers to the effort required to do the right thing.
b. EFFECTIVENESS – going the right thing. It is the attainment of goals, which
have impact on the clientele, beneficiary or community.
c. EFFICACY – strong esprit de corps, morale or appropriate leadership in a
given culture and environment.
 MANAGEMENT IS BOTH AN ART AND A SCIENCE

ART
 Management requires skills and techniques in dealing with people
in order to get things done or to achieve organizational goals. In
relation to time dimension, things get done at the right time and
proper decision making.

SCIENCE
 Management uses an organized, clear and pertinent knowledge –
that is knowing how things are done through the help and
cooperation of others.
 MANAGEMENT AND PRACTICE

 (Drucker, 1977) “Management is a practice rather than a science

or a profession, though containing the elements of both. The
ultimate test of management is achievement and performance.”

 Management becomes a practice in a sense that is founded in

performance – it is its achievements that counts. Every
achievement of the management is the achievement of the
manager and every failure is a failure of management.

 Even if it contains its own set of theories, principles and scientific

techniques, it is its practice that determines results.
 MANAGEMENT AND PEOPLE

 MANAGEMENT IS ABOUT MAN, about people and not alone about things,
system, resources and skills. It refers to the elite, group of people in the
organization that has the legal authority to direct and control the
organization.
 MANAGEMENT IS EXPERIENCE
It is practice, more than an art and science. Practice makes it an art and a
science. The more one practices, the more experience one gets.
 MANAGEMENT IS MENTAL
Management is also theory. It has a set of universal proposition, valid with
appropriate revisions according to the particular environment in which it will
operate.
It is not an exact science – it is ECLECTIC (choosing or accepting from various
sources that deemed necessary to solve those problems at hand)
 MANAGE / MEN / To (act)
 Management is about managing
= It is a process by which resources are identified and utilized efficiently
and effectively to achieve stated goals and objectives. It is a science of
decision-making and problem solving.

 Management is about managing men

= People are its primary business., and not profits, resources, systems or
outputs. It allows people to develop to their fullest potential.

 Management is about managing men with act

= Treat people with respect and courtesy. Treating people with dignity
and human worth.
 Harbizon and Myers
Offers 3 folds concepts to emphasize the broader scope of management.
They observe that management is:
1. An economic resource.
• management is one of the factor of production together with land,
labor and capital.
• Production and profit is determined by the management resources of
the firm.
• As industrialization increases, management is substituted for labor
and capital.

2. A system of authority
• Management first develop with top individual determining the course
of action for the rank and file.
3. An elite class
• from the socialist part of view management is a class and status
system.
• managers have become an elite group of brain and education.
Entrance to this class is based on education and knowledge.
 TEN ROLES OF A MANAGER

 Mintsberge group the basic rules performed by managers.

A. Interpersonal Roles
Roles that primarily require a manager to deal with people. It shows the
manager as a:

1. Figure head or a symbol

• Manager becomes a figure head because of the position he/ or she
occupies. His/her duties consists of signing of papers or documents
required by the organization.
• Managers engages in symbolic events. He/she may have to appear at
an award’s ceremony or make a public presentation.

2. Leader
• Managers directs the activities of certain employees and coordinates
the woks of others.
• As a leader he/she hire, encourages, fires, remunerates subordinates,
evaluate performance and recommends employees for promotion.

3. Liaison
• Manager serves as a communication link between people and groups
such as community, suppliers and the organization.
B. Informational Roles
 Roles that reacquire a manager to gather and communicate information
within the hierarchy and outside the organization.
 Present the manager as, the one who:
4. Monitors information
• A manager who gathers information, he or she reports important
changes, problems, and opportunities to higher levels in the hierarchy.
5. Disseminator
• a person who spreads information, and delivers information to
subordinates.

6. Spokesperson or representatives of the organization

• He / She represent the subordinate to superior and upper management to
subordinate.
• Manager speaks for the organization, explaining its stand on certain issues,
policies and practice that affect its constituency or stakeholders
C. Decisional Roles

 These roles center on solving problems and making choices.

 This makes the manager as:
7. Entrepreneur or an innovator – a manager looks for and implements
new ideas to make his or her group more effective.

8. Disturbance handler – a manager makes decisions to keep his or her

group operations in the face of circumstances that are out of the
ordinary.

9. Resource allocator – a manager decides how a group will use all the
available resources.

10. Negotiator – manager acts as a company representative either in

dealings externally with outside organizations or government agencies
or internally in resolving dispute between subordinate, or to convince
other departments to provide support that his or her group needs for
a project.
 SCHOOL OF MANAGEMENT THORIES
CLASSICAL

Bureaucracy Administrative
Scientific (Organizational
Management Management)
(Management of • Max Weber
Work) (1864 – 1920)
• Henry Fayol (1841 -
1925)
• F.W. Taylor
(1856 – 1917)
• Henry L. Gantt
(1861 – 1919)
• Frank Gibreth BEHAVIORAL
(1886 – 1924) and
•Lillian Gilbreth
(1878 – 1972)

Human Relation Movement Motivation

• Elton Mayo (1880 – 1949) • Douglas McGregor

• Chester Bernard (1886 – 1961) (1906 – 1964)
• Mary Parker Follet (1868 – 1933)

CONTEMPORARY
APPROACHES

Management System Approach Contingency Approach

Science / Operations
Research
 MANAGEMENT HISTORY AND CONCEPT 

1. Classical Schools of Management Theory

A. Scientific Management (Management of Work)
A1. Frederick W. Taylor (1856 – 1915)
 An American mechanical engineer who created a mental revolution
about how to get things done in an organization.
 He postulated that one way to increase productivity is to teach the
workers the “one best way to accomplish a task.”
 Proposed a set of techniques to increase the efficiency and productivity
of each worker – he timed and analyzed the movement of each worker
performing a series of job and designed the quickest and best method to
make a task easier
 “FATHER OF SCIENTIFIC MANAGEMENT”
 proposed higher wages to each worker with high productivity
 Concluded that productivity will increase through careful, systematic, design
of workplace conditions, work methods and proper training and instructions of
workers.
 Wrote the Fundamental Principles of Scientific Management:
 Development of a true science of management, so the best method for
performing each task could be determined. This is necessary to find the “one
best way” of doing each task.
1. Scientific selection of the worker, so that each worker would be given
responsibility for the task, which he or she is best suited.
2. The scientific education and development of the worker.
 Workers should be able to view how they “fit” into the organization and how
they contribute to overall organizational productivity. This provides common
goal and a sharing of the organizational mission.
 This could be accomplished by the use of financial incentives as a reward for
work accomplished. Taylor viewed humans as “economical animal” motivated
solely by money. Workers were reimbursed according to their level of
production, rather than by an hourly wage.
4. The intimate, friendly cooperation between management and labor.
 The relationship between managers and workers should be cooperative
and interdependent and the work should be shared equally.
 The role of the managers or “functional foreman” was to plan, prepare and
supervise. The worker was to do the work.

A2. Frank Gilbreth (1868 – 1924) and Lilian M. Gilbreth (1878 – 1972)
 “Innovators on Motion Studies”
 Motion Study – is the study of physical action required to complete a task in
the most efficient manner possible.
 Frank Gilbreth devised a classification scheme of 17 motions used in jobs
and used this classification to analyze worker actions. He coined the term
“herbligs” to describe the 17 actions.
 Lilian Gilbreth focused on the psychology of management – the effects on
the workers of efficient efforts and fatigue.
A3. Henry L. Gantt (1861 – 1919)
 “ Innovator in Scheduling and Rewarding Employees”
 He developed a tool known as the “Gantt Chart” – which depicts the schedule
on how many weeks or the length of time a worker can accomplish his-her
individual task.
 Maintain productivity of workers in giving incentives “gain sharing” or
“production bonus” – if they exceed the normal levels of production.

WEEKS
TASK
1 2 3 4 5 6 7 8 9 10
Order parts
Inspect parts
Assembly of shell
Subassembly of core
Put core in shell

Inspection of unit

Affix labels

Packaging
Shipping
2. Bureaucratic Organizational Theory
A. Max Weber (1864 – 1920)
 “A German sociologist, social historian and philosopher who contributed to the
development of a classical approach to organizational design.
 Father of organizational Theory”
 Believed that organizations with a hierarchical structure are most efficient and effective
– thus the structure was named Bureaucracy.
 Bureaucracy – is an ideal pure form of organization based on define positions, formal
authority and regulated environment.
 Characteristic of this organization include:
1. Task are specialized
2. People are appointed by merit or position or promotion because of their ability and not
because of favoritism and whim.
3. Career opportunities for the members are provided
4. Authority and responsibility are clearly specified
5. Activities are routinized
6. A rational and impersonal climate exists
3. The Management of Organization
A. Henri Fayol (1841 – 1925)
 “Father of Modern Management”
 “Developer of Administrative Theory”
 Trained as an engineer, his concern was the entire efficiency and effectiveness of
an organization. He applied scientific principles to the management of the total
organization – this focus has come to be known as the “Administrative Theory”
 He characterized the activity of management into 5 specific functions – thus define
the “Functions of Management”
a. Planning – consists of forecasting events and determining the most effective future
activities for the company.
b. Organizing – consist of ways in which the organizational structure is established
and how authority and responsibility are given to the manager, a task is called
delegation.
c. Command and directing – concern how the manager directs employees.
d. Coordinating – concerns with the activities design to create a relationship between
all the organization’s efforts (individual task) to accomplish a goal.
e. Controlling – concerns how the managers evaluate performance with the organization
in relationship to its plans and goals.
 Fayol also developed the “14 Principles of Management” to guide a manager in
resolving real work problems.
1. Division of Labor
= Work is separated into its basic task and divided between individual worker or work
groups that can specialized in a specific task – this lead to work specialization.
2. Authority
= Managers need to be able to give orders so they can get things done.
3. Discipline
= Members in an organization need to respect the rules and agreements that govern the
organization.
4. Unity of Command
= Each employee must receive his or her instructions about a particular operation from
only one person.
5. Unity of Direction
= The whole organization should have one common goal and seek to accomplish that goal
in all its activities.
6. Subordination of individual Interest to the Common Good
= In any undertaking, the interests of employees should take precedence over the interest
of the organization as a whole.
7. Remuneration
= Compensation for work done should be fair to both employees and employers.
8. Centralization / Decentralization
Centralization – is decreasing the role of subordinates in decision-making.
Decentralization – is increasing the role of subordinate in decision making.
Managers, although retaining final responsibility, need to give their subordinates
enough authority to do their jobs properly.
9. The Hierarchy / Scalar Chain
= The line of authority in organization runs in order to rank from top management to the
lowest of the enterprise.
10. Order
= Material and people should be in the right place at the right time.
11. Equity
= Managers should be both friendly and fair to their subordinates.
12. Stability of Staff
= A high employee turnover rate is not good for the efficient functioning of an
organization
13. Initiative
= Subordinates should be given the freedom to conceive and carry out their plans,
even when some mistakes results.
14. Espirit de Corps
= Promoting team spirit will give the organization a sense of unity.
B. Behavioral School of Management Theory
 This approach stresses the effectiveness of management will come from an
understanding of the worker.
B1. Elton Mayo (1880 – 1949)
 “Father of Human Relations Movement”
 an Australian social scientist together with a researcher team from Harvard
University – conducted series of experiments at the Hawthorne Experiments.
 the original objective of the experiment was to determine the effect of
environment on productivity but it was found out that psychological and
social factors in the work situation exert more influence instead, known as
the “Hawthorne Effect” – means that some unidentified psychological and
social factors has influence work output.
B2. Chester Barnard
 The Acceptance Theory of Authority
 Writer and president of New Jersey Bell, he advocated conciliatory
management relations that enhanced cooperation between employees and
supervisors.
B3. Mary Parker Follet (1868 – 1933)
 “Pioneer in conflict Resolution”
 advocated a collaborated approach to problem solving
 noted individual group motivating factor apart from those satisfying only
physical needs. She underscored the significance of psychology and
sociology advocated group thinking and the group process approach to
management.
 She believed that organizational success was linked to human relations,
with particular emphasis on the education and development of employees.
B4. Douglas McGregor (1906 – 1964)
 “Father of Motivation Theory”
 he expressed two sets of assumptions of human nature – Theory X and
Theory Y.
Theory X
Most human beings dislike work and avoid it when
ever possible. He works to survive
They must be forced, threatened, manipulated,
directed and controlled.
The average person desires security, has little
ambition, and will avoid assuming responsibility. Prefer
to be directed rather than to act independently. Has
little or no ambitions, is not too intelligent and above
all wants security.
Few people are truly creative.
• Managers task – strict control over his
subordinates or use of fear tactics to ensure that
work is carried out properly.
Theory Y
Workers do not inherently dislike work , but rather
regard work as a source of satisfaction and will
respond to good working conditions and attitudes.
Work itself can be motivating and rewarding.
People will exercise self-motivation and direction to
accomplish organizational goals to which they are
personally committed.
The average person can learn to accept responsibility.
Most people are capable of being creative, exercising
ingenuity and being imaginative.
• Managers task – provide opportunities for the
subordinates to be creative, productive,
encourage growth and provide guidance.
C. Contemporary Approaches
C1. Management Science Approach
 Began when a mixed team of specialist from relevant disciplines is called to
analyze a problem and propose a course of action to management.

Management Science and Operations Research – is an approach to

management that maintains that productivity can be improved and
organizational effectiveness increased by means of scientific method
and use of mathematical models

C2, System Approach

 The main premise of the theory is to understand fully the operation of
an entity, the entity must be viewed as a system. To understand the
system as a whole requires understanding the interdependence of the
parts.
 The system’s approach is an approach in solving problems by
diagnosing them within a framework of what are called the system’s
inputs, transformational process and outputs in the light of feedback.
 Inputs Outputs
(Human, physical, Transformation Process
(Products &
financial & services)
informational
resources)

External
Environment

• Inputs are human, physical, material, financial & information

resources that enter the transformation process & leave it as outputs.
• Transformation processes are the technologies used to convert
inputs to outputs.
• Outputs are the original inputs now in a changed condition.
• Feedback is any form of information about the system’s status and
performance.
Co-ordination – unifying and harmonizing all activities and effort of the
organization to facilitate its working and success.
Control – verifying that everything occurs in accordance with plans, instruction,
established principles and expressed command.
Input ------------------ Management Process ------------------- Output

Manpower
Machine Efficiency

Materials Client satisfaction

Money
Moment Planning Organizing Directing Controlling
(Command &
Coordination)

Feedback
Survey
Business satisfaction
Interview
Reading Owner satisfaction
Research
Education
C3. Contingency Approach
 This approach asserts that there is no universally applicable approach to a
management problem, but that the needs of the particular situation determine
the best approach to the organization problem.
 This approach is ECLECTIC – in that the manager can make use of the
techniques of other approaches – classical, behavioral, operations – the
applications of these various techniques is the best solution to the specific
problem.
Other Theories:
1. Need Theory
A. Abraham Maslow
 Described human as “wanting” organism that satisfy their basic needs in a
specific sequence. Higher level needs do not emerge as motivators until
lower level needs are satisfied. ( a satisfied need no longer motivates
behavior)
B. Frederick Herzberg
 Proposed a two – factor motivational need theory
 Believed that workers are motivated by 2 types of needs
a. Hygiene factors – needs associated with working conditions. Such
factor include pay, working conditions, quality of supervision, job
security, and agency policy
= He claimed that though satisfying the worker's hygiene needs will not
provide job satisfaction, lack of hygiene factors would cause job
dissatisfaction – hence hygiene factors are termed – “dissatisfiers”
b. Motivating Factor – needs associated with work itself.
= Includes:
• Challenging aspects of the work itself as
a. Added responsibility
b. Opportunities for personal growth
c. Opportunities for advancement
• Absence of motivation factors causes lack of job satisfaction rather that job
dissatisfaction – so motivating factors are termed “satisfiers”
2. Operant Theory
B.F. Skinner

 Suggest that an employee’s work motivation is controlled by conditions in

the external environment rather than by internal needs and desires.
 He exhibits 2 types of behavior – respondent and operant
 Respondent behavior - occurs as a result of direct simulation
 When operant behavior is followed by consequences – is considered a
reinforcer.
 A negative reinforcer is a consequence that, if removed would increase the
probability that the behavior would be repeated.