OPENING PRAYER

Dear Heavenly Father,

We give you thanks for giving us the opportunity to
make a fresh start, to learn a new set of wisdom,
and to discover a new experience.
As we go through our lessons for today, guide us to
become beacons of your good will. Instill honesty,
modesty, and obedience within our minds so that
we may value the mission of our learning. Kindly
bless our teachers, staff, and fellow students so we
may glorify your holy name.

We ask this through Christ, our Lord, Amen.

ATTENDANCE
Class Rules and
Guidelines
1. Be prepared for
each lesson.

2. Be on time for the

class schedule.
3. Speak only when permitted to.
Mute your microphone upon
entering the Zoom meeting.

4. For Zoom students, you are

encouraged to open you camera,
especially during recitation.
5. You are encouraged to raise
your hand for any question or
should you wish to answer a
question.

6. Practice respect toward the

teacher and fellow classmates.

7. Maintain attentiveness and

focus while in class. Avoid any
unnecessary distractions.
THE Nature and Concept
of Management
Chapter I
Organizational
Management
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
Activity
Describe the picture using the clues below:

___
Activity
Describe the picture using the clues below:

JOB
Activity
Describe the picture using the clues below:

_______
Activity
Describe the picture using the clues below:

MANAGER
Activity
(Bonus) What does the manager do?

__________
Activity
(Bonus) What does the manager do?

MANAGEMENT
 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.
 EVOLUTION OF MANAGEMENT
THEORIES
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.
 EVOLUTION OF MANAGEMENT
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.
 EVOLUTION OF MANAGEMENT
THEORIES
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 Interest  Esprit de Corps
 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
CYCLE
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

quantitative aspect
qualitative aspect

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