THE JOB

Chapter I
Learning Objectives:

1. To understand the meaning of management and

the evolution of management theories
2. To appreciate the importance of the application
of the GEMS cycle for the success and growth of
the business
3. To be aware of the critical role of a Manager and
his/her duties and responsibilities
 Management is the function that co-
ordinates the efforts of people to accomplish
goals and objectives by using available
resources efficiently and effectively.
It includes planning, organizing, staffing,
leading, or directing and controlling to
accomplish the organization’s goals.
 The concern of business to improve
employee’s productivity and efficiency
triggered the development of
management theories.
It began in the late 19th century after
the Industrial Revolution but saw more
definitive form in the 20th century.
EVOLUTION OF MANAGEMENT THEORIES
1910s–1940s: Management as Science
Management as Science was developed in the early 20th century
and focused on increasing productivity and efficiency through
standardization, division of labor, centralization, and hierarchy. A
very ‘top down’ management with strict control over people and
processes dominated across industries.
1950s–1960s: Functional Organizations
Due to growing and more complex organizations, the 1950s and
1960s saw the emergence of functional organizations and the
Human Resource (HR) movement. Managers began to understand
the human factor in production and productivity and tools such as
goal setting, performance reviews, and job descriptions were born.
EVOLUTION OF MANAGEMENT THEORIES
 1970s: Strategic Planning
The focus is from measuring function to resource allocation and tools like
Strategic Planning, Growth Share Matrix, and SWOT (identification and
analysis of the company’s Strengths, Weaknesses, Opportunities, and Threats)
were used to formalize strategic planning processes. After several decades of
‘best practice’ and ‘one size fits all’ solutions, academics began to develop
contingency theories.
 1980s: Competitive Advantage
As the business environment grew increasingly competitive and connected, and
with a blooming management consultancy industry, Competitive Advantage
became a priority for organizations in the 1980s. Tools like Total Quality
Management (TQM), Six Sigma, and Lean Management were used to measure
processes and improve productivity. Employees were more involved by
collecting data, but decisions were still made at the top, and goals were used to
manage people and maintain control.
EVOLUTION OF MANAGEMENT THEORIES
 1990s: Process Optimization
Benchmarking and business process reengineering became popular in the
1990s, and by the middle of the decade, 60% of Fortune 500 companies
claimed to have plans for or have already initiated such projects. TQM, Six
Sigma, and Lean remained popular and a more holistic, organization-wide
approach and strategy implementation took the stage with tools such as
Strategy Maps and Balance Scorecards.
 2000s: Big Data
Largely driven by the consulting industry under the banner of Big Data,
organizations in the 2000s started to focus on using technology for growth
and value creation. Big data is a broad term for data sets so large or complex
that traditional data processing applications are inadequate. Accuracy in big
data may lead to more confident decision-making. And better decisions can
mean greater operational efficiency, cost-reductions, and reduced risk.
 Henri Fayol (1841–1925) ––
French management theorist who
developed the fundamental notion of
principles of management.
 FAYOL’S 14 PRINCIPLES OF
MANAGEMENT
 The Degree of Centralization
 Division of Work  Scalar Chain
 Authority and Responsibility  Order
 Discipline  Equity
 Unity of Command  Stability of Tenure of Personnel
 Unity of Direction  Initiative
 Subordination of Individual  Esprit de Corps
Interest
 Remuneration
Division of Work – According to this
principle, the whole work is divided into
small tasks.
The specialization of the workforce
according to the skills of a person, creating
specific personal and professional
development within the labor force and
therefore increasing productivity; leads to
specialization which increases the efficiency
of labor.
Authority and Responsibility – refers to the
issue of commands followed by
responsibility for their consequences.
Authority means the right of a superior
to give enhanced order to his subordinates;
Responsibility means obligation for
performance.
Discipline – refers to obedience, proper
conduct in relation to others, respect of
authority, etc.

Unity of Command – states that each

subordinate should receive orders and be
accountable to one and one superior.
Unity of Direction – all those working in the
same line of activity must understand and
pursue the same objectives.

Subordination of Individual Interest – the

management must put aside personal
considerations and put company objectives
firstly.
Remuneration – workers must be paid
sufficiently as this is a chief motivation of
employees and therefore greatly influences
productivity.
Degree of Centralization – the amount of
power wielded with the central management
depends on company size.
Scalar Chain – refers to the chain of
superiors ranging from top management to
the lowest rank.
Order – social order ensures the fluid
operation of a company through authoritative
procedure.
Equity – employees must be treated kindly,
and justice must be enacted to ensure a just
workplace.
Stability of Tenure of Personnel – the
period of service should not be too short and
employees should not be moved from
positions frequently.
Initiative – using it can add strength and
new ideas to an organization.
Esprit de Corps – refers to the need of
managers to ensure and develop morale in
the workplace; individually and communally.
FAYOL’S MANAGEMENT FUNCTION
 To organize
 To plan and forecast (Prevoyance)
 To command
To control
To coordinate
 THE FOUR GEMS OF
MANAGEMENT:
Goal
Execution
Measurement
Sustenance
 THE MANAGEMENT PROCESS

Management is a process, a non-stop

process of ensuring continuity and
growth within an organization. It
involves Goal setting, Executing the
plan, Measuring results, and Sustaining
operations, the 4 GEMS of
Management.
THE GEMS MANAGEMENT CYCLE
THE GEMS MANAGEMENT WHEEL
 THE GEMS MANAGEMENT CYCLE
Stage 1: Goal Setting

1. Synthesizing Information
2. Formulating Alternatives
3. Deciding on Courses of Action
4. Establishing Goals
 THE GEMS MANAGEMENT CYCLE
Stage 2: Executing the Plan
5. Organizing
6. Communicating
7. Guiding
Stage 3: Measuring Results
Stage 4: Sustaining Growth
8. Promoting Change
 ROLES AND RESPONSIBILITIES
OF A MANAGER
a. Staffing
b. Communication
c. Training
d. Administrative Investigation and
Discipline
e. Employee Relations
f. Business Growth and Sustainability