?

Management is the process of

designing and maintaining an
environment in which individuals,
working together in groups, efficiently
accomplish selected aims.
•As managers, people carry out the managerial
functions of planning, organizing, staffing, leading, and
controlling.

•Management applies to any kind of organization.

•It applies to managers at all organizational levels.

•The aim of all managers is the same: to create a

surplus.

•Managing is concerned with productivity; this implies

effectiveness and efficiency.
 MANAGERIAL HIERARCHY

TOP-LEVEL MANAGEMENT is relatively small group of executives who control

the organization. Title found in this group include “Chairman”, “Vice-chairman”,
“Managing Director”, “Director”, “Chief Executive Officer”, etc.
Top management establishes the organization’s goals, overall strategy, and
operating policies.

MID-LEVEL MANAGEMENT is primarily responsible for implementing the

policies and plans developed by top management. Common mid-level
management titles include “Plant Manager”, “Operations Manager”, and division
head.
Major responsibility of many middle managers is to supervise and coordinate the
activities of first-line managers.

FIRST-LINE MANAGERS supervise and coordinate the activities of operating

employees. Common titles of first-line managers include “Foreman”,
“Supervisor”, and “Office Manager”.
 MANAGERIAL SKILL
(Identified by Robert L. Katz)

1. Technical Skill is knowledge of and proficiency in activities

involving methods, processes, and procedures. Thus, it
involves working with tools and techniques.

2. Human Skill is the ability to work with people; it is

cooperative effort; it is teamwork; it is the creation of an
environment in which people feel secure and free to express
their opinions.

3. Conceptual Skill is the ability to see the “big picture,” to

recognize significant elements in a situation, and to
understand the relationships among the elements.
 MANAGERIAL SKILLS &
ORGANIZATIONAL HIERARCHY

CONCEPTUAL
&
DESIGN
TOP-LEVEL SKILLS
MANAGEMENT

MID-LEVEL HUMAN
SKILLS
MANAGEMENT

FIRST-LINE
MANAGERS/SUPERVISORS

TECHNICAL
SKILLS
 PROPORTION OF MANAGEMENT SKILLS NEEDED AT DIFFERENT
LEVELS OF MANAGEMENT

Top
Management CONCEPTUAL HUMAN TECHNICAL

Middle
Management CONCEPTUAL HUMAN TECHNICAL

First-line CONCEPTUAL HUMAN TECHNICAL

Management

ROBERT L. KATZ
 THE FUNCTIONS OF MANAGERS
1. PLANNING involves selecting missions and objectives and the actions to
achieve them; it requires decision making, that choosing future courses of
action from among alternatives.

2. ORGANIZING involves establishing an intentional structure of roles for people

to fill in an organization. It is intentional in the sense of making sure that all the
tasks necessary to accomplish goals are assigned and, it is hoped, assigned to
people who can do them best.

3. STAFFING involves filling, and keeping filled, the position in the organization
structure. This is done by identifying work-force requirements; and recruiting,
selecting, placing, promoting, appraising and training or otherwise developing
both candidates and current job holders.

4. LEADING is influencing people so that they will contribute to organization and

group goals; it has to do predominantly with the interpersonal aspect of
managing.

5. CONTROLLING is measuring and correcting individual and organizational

performance to ensure that events conform to plans. It involves measuring
performance against goals and plans, showing where deviations from
standards exist, and helping to correct them.
 TIME SPENT IN CARRYING OUT
L MANAGERIAL FUNCTIONS

TOP-
NA

LEVEL
IO

CONTROLLING
HY

ORGANIZING
HIE IZAT

PLANNING
RC

LEADING
RA
AN

MID-LEVEL
G
OR

FIRST-LINE
 THE TEN MANAGERIAL ROALS
1. The Figurehead Role (performing ceremonial and social duties as the
INTERPERSONAL

organization’s representative).
ROLES

2. The Leader Role (directing and coordinating the activities-hiring,

training and motivating employees).
3. The Liaison Role (particularly with outsiders).
INFORMATIONAL

4. The Recipient Role (receiving information about the operation of an

enterprise).
ROLES

5. The Disseminator Role (passing information to subordinates).

6. The Spokesman Role (transmitting information to those outside the
organization).

7. The Entrepreneur Role (bringing about changes for the better in the unit).
8. The Disturbance-handler Role (making decisions or taking corrective
DECISION
ROLES

action in response to pressure that is beyond their control).

9. The Resource-allocator Role (deciding who in the unit will be given
various parts of the unit’s resources).
10. The Negotiator Role (dealing with various persons and groups of
persons).
 FAYOLS PRINCIPLES
1. Replacing rules of thumb with science
(organized knowledge).
2. Obtaining harmony in group action, rather than
discord.
3. Achieving cooperation of human being, rather
than chaotic individualism.
4. Working for maximum output, rather than
restricted output.
5. Developing all workers to the fullest extent
possible for their own and their company’s
highest prosperity.
 GENERAL PRINCIPLES OF MANAGEMENT
 
1. Division of Work: This is the specialization that economists consider necessary for
efficiency in the use of labor. Fayol applies the principle to all kinds of work,
managerial as well as technical.
2. Authority and responsibility: Here Fayol finds authority and responsibility to be
related, with the latter arising from the former. He sees authority as a combination of
official factors, deriving from the manager’s position, and personal factors,”
compounded of intelligence, experience, moral worth, past service, etc.”
3. Discipline: Seeing discipline as “ respect for agreements which are directed at
achieving obedience, application, energy, and the outward marks of respect, “Fayol
declares that discipline requires good superiors at all levels.
4. Unity of command: This means that employees should receive orders from one
superior only.
5. Unity of direction: According to this principle, each group of activities with the same
objective must have one head and one plan. As distinguished from the fourth
principles, it relates to the organization of the “ body corporate” rather than to
personnel. (Fayol did not in any sense mean that all decisions should be made at the
top.)
6. Subordination of individual to general interest: This is self-explanatory; when the
two are found to differ, management must reconcile them.
7. Remuneration: Remuneration and methods of payment should be fair and afford the
maximum possible satisfaction to employees and employer.
8. Centralization: Without using the term “ centralization of authority,” Fayol refers to
the extent to which authority is concentrated or dispersed. Individual circumstances
will determine the degree that will “ give the best overall yield.”
9. Scalar chain: Fayol thinks of this as a “chain of superiors” from the highest to the
lowest ranks, while not to be departed from needlessly, should be short-circuited
when to follow it scrupulously would be detrimental.
10. Order: Breaking this into “ material” and “social” order, Fayol follows the simple
adage of “ a place for everything (everyone), and everything (everyone) in its (his or
her) place.” This is essentially a principle of organization in the arrangement of things
and people. 
11. Equity: Loyalty and devotion should be elicited from personnel by a combination of
kindliness and justice on the part of managers when dealing with subordinates.
12. Stability of tenure: Finding unnecessary turnover to be both the cause and the effect
of bad management, Fayol points out its dangers and costs.
13. Initiative: Initiative is conceived of as the thinking out and execution of a plan. Since
it is one of the “keenest satisfactions for an intelligent man to experience,” Fayol
exhorts managers to “sacrifice personal vanity” in order to permit subordinates to
exercise it.
14. Esprit de crops: This is the principle that “ in union there is strength,” as well as an
extension of the principle of unity of command, emphasizing the need for teamwork
and the importance of communication in obtaining it.
 CHARACTERISTICS OF LIKERT”S

FOUR MANAGEMENT SYSTEM

System 1: System 2: System 3: System 4:

Exploitive Benevolent Consultative/ Participative
Characteristic Authoritative Authoritative Supportive Group

 Basis of model Power Economic Leadership Partnership

resources

Managerial Authority Money Support Teamwork

orientation

Leadership

▪ Trust in
None None Substantial Complete
subordinates

▪ Subordinates Seldom used Sometimes Usually Always used

ideas used Used
 Exploitive Benevolent Consultative/ Participative
Authoritative Authoritative Supportive Group
Motivational Forces
 ▪ Motives tapped Security, Status Economic, ego Substantial Complete

▪ Level of Overall Some moderate Moderate High

Satisfaction dissatisfaction satisfaction satisfaction satisfaction

Communication

▪ Amount Very little Little Moderate Much

▪ Direction Downward Mostly Down up Down, up,

downward lateral

Interaction- Influence

 ▪ Amount None None Substantial Complete

▪ Cooperative
None Virtually none Moderate Substantial
teamwork

 
 Exploitive Benevolent Consultative/ Participative
Authoritative Authoritative Supportive Group
Decision Making

▪ Locus Top Policy decided Broad policy All levels

at top decided at top

▪ Subordinates Not at all Sometimes Usually Fully involved

involved consulted consulted

Goal Setting

▪ Manner Orders Orders with Set after Group

comments discussion participation

▪ Acceptance Covertly resisted Frequently Sometimes Fully accepted

resisted resisted

Control Processes

▪ Level Top None Some below All levels

top

▪ Information Incomplete, Often incomplete, Moderately Complete

Inaccurate inaccurate complete, accurate accurate

 
 Exploitive Benevolent Consultative/ Participative
Authoritative Authoritative Supportive Group
Employee Obedience Security & Job Responsible
orientation benefit performance behavior
Employee
Dependence Dependence on Participation Self discipline
psychological
on boss organization
result

Employee Subsistence Security Status and Self-

needs met recognition actualization

Performance Mediocre Fair to good Good Excellent

 JAPANESE AND UNITED STATES MANAGEMENT APPROACHES
Japanese Management U.S. Management
Planning

1. Long-term orientation. 1. Primarily short-term orientation

2. Collective decision making 2. Individual decision making.
3. Decision flow from bottom to top 3. Decisions initiated at the top,
and back. flowing down
4. Slow decision making fast 4. Fast decision making slow
implementation of the decision. implementation requiring
compromise
Organizing
1. Collective responsibility and 1. Individual responsibility and
accountability. accountability.
2. Ambiguity of decision 2. Clear and specific decision
responsibility responsibility.
3. Informal org. structure 3. Formal bureaucratic org. structure.
4. Well-known common org. 4. Lack of common organization
culture and philosophy; culture identification with
competitive spirit toward other profession rather than with
enterprises. company.
 Japanese management U.S. management
Staffing

1.  Young people hired out of 1. People hired out of schools and

school; hardly any mobility of from other companies; frequent
people among companies. company changes.
2. Slow promotion through the 2. Rapid advancement desired and
ranks. demanded.
3. Loyalty to the company. 3. Loyalty to the profession.
4. Very infrequent performance 4. Frequent performance
evaluation for young employees. evaluation.
5. Appraisal of long-term 5. Appraisal of short-term results.
performance.
6. Promotions based on multiple 6. Promotions based primarily on
criteria. individual performance.
7. Training and development 7. Training and development
considered a long-term undertaken with hesitation ( for
investment. fear of turnover).
8. Lifetime employment common in 8. Job insecurity prevailing.
large companies.
 Japanese management U.S. management
Leading

1. Leader acting as a social 1. Leader acting as decision maker

facilitator group member.
2. Paternalistic style.
3. Common values facilitating
cooperation.
4. Avoidance of confrontation,
sometimes leading to ambiguities;
emphasis on harmony.
5. Bottom-up communication.
and head of the group.
2. Directive style.
3. Often divergent value individualism
sometimes hindering cooperation.
4. Face-to-face confrontation
common; emphasis on clarity.
5. Communication primarily top-down.

Controlling

1. Control by peers. 1. Control by superior.

2. Control focus on group 2. Control focus on individual
performance. performance.
3. Saving face. 3. Fixing blame.
4. Extensive use of quality 4. Limited use of quality control
control circles. circles.
 EVOLUTION OF MANAGEMENT

•  Hunter, Gatherer
• People/Human being started living by side of the river
bank, valley
Management basically evolved

• Usually elders took the lead of the family.

from Personal Leadership

• Agricultural activity started

• Surplus production
• Exchange of produced item (Barter Trade)
• Gradually social elite takes the control
• Development of Cottage Industries
• Guild system started
• To avoid the problem of Barter Trade, money-
exchanging system started
• Domestic production system
• End of the eighteenth century industrial revolution
took place and Modern technology adopted
 Management Practices during the ancient period
                • Mesopotemia (Ufretish-Summer & Erech)
  (Record keeping & Report making)
• Egyptian Civilization (in B.C. 5000-525: Cheops Pyramids)
(Planning, Organizing, Coordinating & Controlling)
               • Babylonian Civilization (The Code of Hammurabi)
(Annual least wage & supervision & responsibility)
  • Chinese Civilization (Before 15000 years ago)
-Lao-Tzu of Taoism doctrin
-Proper Selection, performance appraisal,
promotion & punishment, job-status
-Staff advice (Tai Chai: B.C. 1753-1721)
  • Grecian Civilization (Democratic System)
-Specialization & Division of labor (Ref, “The Republic-Plato)
-Xenophone (desciple of Socrates:Management is universaral)
                • Indian Civilization (Coutillo-Arthoshastro: B.C. 321)
  Management Practices during Midlevel period (20-1749)
 
               • Imam Gazzali (Nasihat al Mooluk-1100)
                • Luca Pacioli (1494)
                • Thomas Moor (1500: UTOPIA )
(Mismanagement in the context of state)
                • Niccolo Machiavelli (Florence, Italy-1469)
                • Adam Smith (Wealth of nations-1776)
 

The 19th and the 20th Century

                • FW Taylor (1856-1915)
                • Henry Fayol (1841-1925)
                • Henry L. Gantt (GANTT chart)
               • Frank Bunker Gilberth (1868-1924)
                • Lillian Moller Gilberth (1853-1972)
                • George Elton Mayo (1880-1940)
                Hawthorne studies (1924-32)