ORGMAN

ORGANIZATIONAL MANAGEMENT
(PRINCIPLES OF MANAGEMENT)
Organizational Management

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The process of organizing, planning, leading and

controlling resources within an entity with the
overall aim of achieving its objectives. The
organizational management of a business needs to
be able to make decisions and resolve issues in
order to be both effective and beneficial.
UNIT 1 Nature and Concept of Management (WEEK 1-2)

MANAGEMENT, Defined:

It refers to the act of bringing together the work

activities to achieve the organization’s goals and
objectives. Basically, it means teamwork. The manager
should be able to work with his subordinates.

It is essential that in any organization, the

leader-manager must realize the importance of people
working harmoniously with the aim of effectively
reaching the target goals of the company.
5 Functions of Management: (ACRONYM: POSDICON)

•PLANNING – includes identifying the aims and purposes of the business, its
tactics and developing plans to incorporate and synchronize activities.

•ORGANIZING - a function that ensures that each job or position is not

duplicated and the corresponding authority is properly identified with the
responsibilities assigned to the person concerned.

•STAFFING – identifies the qualified potential employees.

•DIRECTING (or LEADING/MOTIVATING) – refers to encouraging people to work

towards the attainment of the company’s goals and objectives.

•CONTROLLING – involves evaluating the actual performance, compare it with

the standards and take the action needed.
Managers are expected to execute the above
management functions whether he works for his own
company or employed by any existing firms.

The challenges that a manger will face includes

managing people who comes from different culture. In
addition, it also includes handling workforce who has
been with the organization for the last two to ten years.

It takes guts for a newly appointed manager to earn the

respect from his colleagues. Hence, there are skills that
all managers must be able to acquire.
WHO ARE THE MANAGERS?

Robbins (2005) stated in his book that a “manager is someone who works with
and through other people by coordinating their work activities in order to accomplish
goals.” Hence, we may conclude that a manager’s mission is not about personal
accomplishment – it’s more on assisting other people succeed in their respective jobs. In
addition, it may also mean that a manager has to ensure that the people he manages will
work together for the achievement of the company’s objectives.

Robbins (2205) further identified the different kinds of managers as well as the
skills, to wit:

CLASSIFICATION OF MANAGERS

•First Line Managers (Supervisors) – administers the work of operating employees.

•Middle Managers – administers the task of the supervisors and in his absence, the
activities of the operating employees.
•Top Managers – they are in-charge for making company-wide decisions and setting
purpose, objectives and plans that affect the whole firm.
 3 MANAGEMENT SKILLS
(Robert Katz)

•Technical Skills – refers to the expertise of the person

in his area of specialization.

•Human Skills – refers to how one can blend with other

people.

•Conceptual Skills – refers to the capability of the

manager to conceptualize ideas for the entire
organization.
 ROLES OF THE MANAGER
(Henry Mintzberg)

The manager is expected to execute different roles as he performs his

various tasks, to wit: DUTY

•Figurehead Role – managers perform traditional responsibilities.

•Liaison Role – communicates with his head, peers, and people outside his
organization.

•Monitoring Role – he seeks important information that will be relevant in

decision making. The quality of the information will enable him to deliver sound
decisions.

•Dissemination Role – managers convey the messages received from the

subordinates to members of the organization.

•Spokesman Role – managers convey the information or speaks on behalf of the

whole organization to outsiders.
•Resource Allocation Role – he decides to who gets the resources.

•Entrepreneurial Role – he initiates improvement changes.

•Leader Role – he motivates people to perform better.

•Disturbance Handler Role – he reconciles and put harmony in the

workplace.

•Negotiator Role – he ensures to get the best bargain in any

negotiation.
EVOLUTION OF MANAGEMENT THEORIES

•Management existed many years ago although during those times the term
“manager” doesn’t exist.

•INDUSTRIAL REVOLUTION came in when machineries were introduced during

the pre-twentieth century. This resulted to mass production and expansions of
factories. In effect, these developments demanded formal management
guidelines. In order to guide managers, thus, the emergence of management
theories. Some of these theories are discussed below:
1. SCIENTIFIC MANAGEMENT THEORY

•Frederick Taylor introduced this management theory at the time that there
were shortages in skilled labour at the start of the 20th

•Taylor emphasized the importance of using the “One Best Method” in order to
systematize the process of creating a product. He also initiated the “Differential
Rate System” wherein he encouraged the owner of the company to increase the
wages of workers who are considered to be productive.

•Taylor’s followers – the husband and wife team named Frank and Lilian
Gilbreth devised the Scientific Management Theory later on.

•Contributions of Scientific Management Theory:

•Production miracle
•Efficiency techniques
•Encouraged the managers to seek the “one best method” of getting a job done
 Limitations of Scientific Management Theory:

•Poor performers were laid off as well as the increased production

resulted from terminating the services of some workers.

•Changes in piece rate left the workers producing more output for
same income.

•Stress and tensions among the workers speed up with their work.

•Social needs of the workers were overlooked.

•Unionism emerged due to exploitation of the workers. There were

also exploitation of customers in terms of product quality.
•HENRY GANTT – an associate of Taylor; he
abandoned the “Differential Rate System” due
to its small incentive effect on production; he
also initiated the charting system for
production scheduling known today as the
GANTT CHART. It refers to a table or diagram
that reflects the status of the stages of
production.
•FRANK and LILIAN GILBRETH – this husband and
wife team made a devise called
MICROCHRONOMETER. It is intended to identify
the hand and body motions of a labourer
primarily to determine the length of time spend
doing each motion.
2. GENERAL ADMINISTRATIVE THEORY

•This was developed by Henri Fayol to address the issue as to how a complex company such as factories can be
managed efficiently and effectively.

Fayol developed the 14 Basic Principles of Management:

•Division of work – it involves specialization of the workforce by dividing a small part of work. It promotes mastery
among the workers.
•Authority and Responsibility – authority means the power or the right entrusted to make the work possible;
Responsibility means the duty of work assigned to a particular position. The two terms are inseparable.
•Unity of Command – there must only be one superior that gives directives/orders to employees to avoid confusion.
•Discipline – giving respect and comply with the policies of the organization.
•Unity of Direction – an organization should have a single plan of action to guide its manager and workers.
•Subordination of Individual Interest Over General Interest – the welfare of the organization should come first over
that of the interest of an individual.
•Remuneration – compensation must be fair.
•Centralization – authority are concentrated at the top hierarchy of an organization.
•Scalar Chain – refers to the sequence of positions from the highest to the lowest rank.
•Order – people and materials should be in the right place at the right time.
•Equity – respect, fairness, impartiality.
•Stability of Tenure – organization should promote long term employment.
•Initiative – subordinates exercising creativity without directives from subordinates. Managers should encourage
them to propose and execute their ideas or plans.
•Esprit de Corps – French word which means “Unity is Strength”. Managers should promote team spirit and each
employee should be a team player.
Fayol developed the 14 Basic Principles of
Management

Henry Fayol, also known as the 'father of

modern management theory' gave a new
perception of the concept of management. He
introduced a general theory that can be
applied to all levels of management and every
department.

The first henry fayol principle of management

is based on the theory that if an employee is
given a specific task to do, they will become
more efficient and skilled in it. This is opposed
to a multi-tasking culture where an employee
is given so many tasks to do at once.Nov 22,
2022
•MAX WEBER – a German theorist
who introduced BUREAUCRACY – a
form of organization that
emphasized division of work, the
rules and regulations, chain of
command and impersonal work
relationship.
More substantively, Weber's two most
celebrated contributions were the
“rationalization thesis,” a grand meta-
historical analysis of the dominance of the
west in modern times, and the
“Protestant Ethic thesis,” a non-Marxist
genealogy of modern capitalism.Aug 24,
2007
•MARY PARKET FOLLET – she
stressed the significance of
belonging to a group as a way for
people to grow in the organization.

Mary Parker Follett was an early 20th

century social worker who became one
of the world's first management gurus.
Her idea of organizations operating as
networks of self-managing teams
anticipated the work of other
management pioneers like Elton Mayo,
Rensis Likert and Douglas McGregor by
several decades. Nov 18, 2020
3. ORGANIZATIONAL BEHAVIOR THEORY

•A theory that refers to the behaviour of

people at work.

•Contributors to this theory include

Chester Barnard, Mary Parker Follet,
Robert Owen, and Hugo Munsterberg.

•The best approach to work and

productivity is through understanding of
the worker. Hence, the manager is
expected to be good in human skills.

Organizational behaviour theories refer

to the study of human behaviour in a
business environment. It attempts to
find answers to how and why humans
behave in certain ways within different
professional settings and groups. Jun 22,
2021
Barnard may be the first architect of a general theory of
collective action and was an influence on Roethlisberger and
Dickson's Hawthorne studies (Organ, Podasakoff, & MacKenzie,
2006). Barnard (1938) argued that “willingness of persons to
contribute efforts to the cooperative system is indispensable”
Aug 8, 2017
Unlike other mill owners of the time,
Owen kept his employees on full pay just
to maintain the factory machinery in a
clean, working condition. This approach of
fair management proved to be successful,
and as returns from the business grew
Owen began to alter the working
environment.
Münsterberg was a pioneer of industrial
psychology. He wrote the book Psychology
and Industrial Efficiency (1913) which
looked at problems of monotony,
attention, and fatigue, physical and social
influences on working power, the effects
of advertising, and the future
development of economic psychology. Jan
17, 2018

Münsterberg believed in psychological

parallelism, a theory that views the body
and mind as an inextricable unit, with
physical processes always occurring in
tandem with brain processes.
4. THE HAWTHORNE STUDIES

•An experiment conducted by the Western Electric Company in

Cicero, Illinois. The engineers of the said firm wanted to test the
effect of different illumination levels on worker’s efficiency. The
results were confusing and so they referred the matter to a
technology; legal, laws and government activities; and market,
economic and social trends.

•The Hawthorne Effect is when subjects of an experimental study

attempt to change or improve their behavior simply because it is
being evaluated or studied. The term was coined during
experiments that took place at Western Electric's factory in the
Hawthorne suburb of Chicago in the late 1920s and early 1930s.
The father of Hawthorne studies

George Elton Mayo

George Elton Mayo: The Father

of Human Resource
Management & His Hawthorne
Studies. Aug 26, 2020
Peter Drucker (1909-2005) was one of the
most widely-known and influential thinkers on
management, whose work continues to be
used by managers worldwide.

Father of Modern Management. Aug 2, 2018

Peter Drucker (1909-2005) was one of the

most widely-known and influential
thinkers on management, whose work
continues to be used by managers
worldwide.

He was a prolific author, and among the

first (after Taylor and Fayol) to depict
management as a distinct function and
being a manager as a distinct
responsibility.
Philip Kotler is known around the world
as the “father of modern marketing.” For
over 50 years he has taught at the Kellogg
School of Management at Northwestern
University. Kotler's book Marketing
Management is the most widely used
textbook in marketing around the world.

Kotler helped create the field of social

marketing that focuses on helping
individuals and groups modify their
behaviors toward healthier and safer
living styles. He also created the concept
of "demarketing" to aid in the task of
reducing the level of demand.