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9Ms of Management

Presented by: Marianne M. Custodio


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Management
Terry &
Rue

A process or form of work that involves the guidance and


direction of a group of people toward organizational goals or
objectives.

The process of working with & thru people to accomplish


Johnson & organizational goals
Stinson

Stoner

The process of planning, organizing, leading and controlling the


efforts of organization members & of using all other
organizational resources to achieve stated organizational goals.

9 Basic Resources:
Nine Ms of Management
1. Man/Manpower
2. Money
3. Materials
4. Machines
5. Methods/Procedures
6. Markets
7. Minutes/Time Management
8. Motivation/Morale
9. Measurement
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1. Men/ Manpower
The most important resource
People who work in business
enterprises.
The success or failure of any
business
depends on them.
The 8Ms are useless if man does not
know how to use them properly.

1. Men/ Manpower
The most important resource
Men are activating resource of the organization
and categorized into two groups such as:
Employees
Managers
Man is important in an organization and emerges
as:
As an economic unit
As a productive unit
As a worker

1. Men/ Manpower
The most important resource
Without manpower, companies are unable to get
work done.
Untrained man can cause damage to goods and
services.
Human Resource Management is different from
Personnel Management

1. Men/ Manpower
The most important resource
HRM vs PM
Factors

HRM

PM

People Involved

All; from top


management to
rank & file

Mostly rank &


file

Hours of Work

Full-time, parttime; flexitime

Full-time

Place of Work

Formal &
Informal
Setting

Formal setting:
office, factory,
plant

1. Men/ Manpower
The most important resource
HRM vs PM

1. Men/ Manpower
The most important resource
HRM vs PM

1. Men/ Manpower
The most important resource
HRM vs PM
Factors

HRM

PM

Strategies

Objective &
Scientific; Total
Systems
Approach

Subjective based on
managements needs & values
Compartmentalized Approach

Philosophy

Humane;
People: an
investment & a
resource

Traditional, mainly for profit;


People: an expense & a factor
of production

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2. Money
The driving force of business
Generally accepted as payment for goods &
services and repayment of debts
A medium of exchange, a unit of account and a store
of value.
From Juno
Moneta, the
Goddess of
ancient Rome

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2. Money
The driving force of business
Our present economic system: Money Economy
Money is important to an individual person,
equally it so to business organizations & the
government.
Every business enterprise of any nature & size
needs capital

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2. Money
The driving force of business
Capital is wealth used in further
production & stresses physical
facilities without regard to their
money values.
Capital is money or values used
in business regardless of source.

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2. Money
The driving force of business

Administration & maintenance of financial assets.


Identifying and & trying to work around the various risks to
which a particular project may be exposed.
closely monitoring the cash flow
Inflow money coming into a company
Outflow record of the expenditure being made by
the company in various resources.

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3. Materials
The inputs to production
Basically, pieces required to make something else.
Can be anything: a finished product in its own right or an
unprocessed raw material.
Things needed in the creation of products.

Materials that are first extracted or


harvested from the earth & divided
into a form that can easily be
transported
&
stored,
then
processed to produce semi-finished
materials
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3. Materials
The inputs to production
field of management that deals with materials
Important principles
governing raw materials:

1. Proper Determination of amount of


raw materials needed.
2. Raw materials should be available
to ensure continuous production.
3. Raw materials should be procurable
not only from one source but from a
no. of different sources.
4. There must be periodic inventory of
stocks.

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3. Materials
The inputs to production
field of management that deals with materials
Important principles
governing raw materials:

5. The transportation of raw materials


from the source must be fast as
well as economical.
6. The raw materials must always be
of the desired quality.

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4. Machines
The aide to work simplification
Any device that uses energy to perform
some activity.
A device having parts that perform or assist
in performing any type of
work.
Derived from machina
Prior to the birth of the Industrial
Revolution, manufacturing was done
largely thru the use of human hands
aided by simple hand tools.

Simple
Machine
Transforms the
direction or
magnitude of a
force without
consuming
energy.

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4. Machines
The aide to work simplification
Industrial Revolution & Machinery
A Watt steam engine,
the steam engine that
propelled the Industrial
Revolution in Britain and
the world.

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4. Machines
The aide to work simplification

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4. Machines
The aide to work simplification
are technology & expertise deployed towards the
transformation process of input (resources) to output (endpoint objectives/products)

required by modern productionmore efficient &


economical

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4. Machines
The aide to work simplification

greatly reduces the need for human


sensory and mental requirements to
create complex systems for a rapidly
expanding range of applications and
human activities.

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5. Methods/Procedures
The technology/techniques of production
There are 3 types of technology:
primitive, intermediate & modern
technologies E. F. Schumacher, 1973
Can also be systems, procedures &
processes seamlessly put together
for the transformation of a raw
material to goods & services.

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5. Methods/Procedures
The technology/techniques of production
theoretical knowledge of industry and the
industrial art
Human innovation in action that involves the generation
of knowledge & processes to develop systems that solve
problems & extend human capabilities.
It is the total accumulation of tools, systems
& work methods used collectively to
transform inputs into outputs

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6. Markets
The transaction in motion
Any of a variety of different systems, institutions, procedures, social
relations & infrastructures whereby persons
trade, goods &
services are exchanged, forming part of the economy.
Transaction is the exchange of goods or services for money.
Markets allow any tradable item to be evaluated & priced.

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6. Markets
The transaction in motion
a.
b.
c.
d.
e.
f.
g.

Financial markets
Futures markets
Currency markets
Money markets
Prediction markets
Stock markets
Bond market (credit, debt or fixed income market)

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6. Markets
The transaction in motion
Requirements of a market:
People must need the product
People must have the ability to purchase the
product
People must be willing to use their buying power
Individuals must have authority to buy the
specific products.

Categories of a market:
Consumer Market
Organizational or Industrial Market

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6. Markets
The transaction in motion

field of management that deals with markets

An example of money market


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7. Minutes/Time Management
Optimum time, with highest quality
A set of principles, practices, skills, tools and systems that work
together to have more value out of time with the aim of
improving the quality of work.
Skills associated are: planning, prioritizing, goal setting,
scheduling
and managing workload.
Various means by which people effectively use their time & other closely
related resources in order to make the most out
of it.

Efficiency is doing better what is already


being done. Peter F. Drucker

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7. Minutes/Time Management
Optimum time, with highest quality
POSEC Method
Inherent in the acronym
is Abraham Maslows
Hierarchy of Needs which
suggests that by attending
to ones personal
responsibilities first, an
individual is better
positioned to shoulder
collective responsibilities.

Prioritize your time.

Organizing things you have to


accomplish regularly.

Streamlining things you may not like to


do but must do.

Economizing things you should/like to


do, but not pressingly urgent.

Contributing by paying attention to few


remaining things that make a difference.

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7. Minutes/Time Management
Optimum time, with highest quality
The BEST time is usually but not always the SHORTEST time

In individual careers, increased job performance


promotions may result.
All types of organizations- business, civic, school,
political and religious- may receive
productive, competitive & financial benefits.

&

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7. Minutes/Time Management
Optimum time, with highest quality

A Gantt chart is helpful in laying


out the tasks associated with a
given project. It helps ensure that
the project schedule is maintained
at a reasonable pace.
Henry Laurence Gantt, 1921

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Pioneer Clinical Laboratory Inc.


& Medical Clinic
All Rights Reserved 2008

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8. Motivation/Morale
The secret weapon of management
Change equals Challenge which is the source of motivation,
workplace efficiency & job security.
Derived from motivate meaning to move, impel or induce to act
to satisfy a need or want. Pefecto Sison, M.A.
Willingness to exert effort to achieve a goal or objective.
Getting people to contribute their maximum effort toward
the
attainment of organizational objectives
Carlos Lorenzana

Intrinsic inducement that propels an individual


to think, feel and perform in certain ways.
It is internalized & the most important yet
elusive determinant of work behavior.
Dr. Concepcion Martires

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8. Motivation/Morale
The secret weapon of management
Efficiency under worker responsibility
Managements priority: GET THE JOB DONE!
Efficiency under command and control leadership
Managements priority: CONTROL!

Decision-making responsibility &


learning opportunity work together.

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9. Measurement
The gauge of effectiveness
The score-keeping & in-process monitoring continuously with due
feedback to keep on-course on time.
Encompasses the assessment of performance and results
achieved
by individual employees, groups of employees and entire organizations.
Determining the level of performance by judging the quality,
quantity,
timeliness and /or cost-effectiveness of the work against a set of standards.

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9. Measurement
The gauge of effectiveness
Two basic parts of ICS:

1. Operational Procedures
2. Controls

CHALLENGE TO
MANAGEMENT:

Decide how much resource to


deploy to create just sufficient
controls to limit the possibility
of bad events occurring & to
limit the damage when they do
occur.

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9. Measurement
The gauge of effectiveness

A large volume of laws & regulations now exist, specifying


standards of conduct & controls that must be complied with
by organizations.

Types of Controls:
1. Preventive Control
2. Detective Control
3. Reactive Control
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Theoretical Approaches
to Management

Presented by:
Amor M. Loisaga
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There are no universally applied techniques &


principles to make management successful.
There are general approaches that enable managers
to effectively achieve their objectives.
Evolution of managerial thought is traditionally represented
by a number of schools & approaches that contributed the
development of managerial theory & practice.

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Evolution of Managerial Thought

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A group of people or scientists who


share common characteristics of
opinion or outlook of a discipline.
A set of methods, ideas or actions
intended to deal with a problem or
solution.
Approaches tend to cover a more practical
aspect enabling managers to effectively run
their business & achieve organizational goals.

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The CLASSICAL SCHOOL associated with the scientific


trends which
emerged during the 19th & early 20th
centuries. This school includes:
First-line management analysis
(Scientific Management School), and
Comprehensive analysis of management (Administrative
School)

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1.1 Scientific Management School


Frederick W. Taylor

Frank B. Gilbreth

Lilian E. Gilbreth

Harrington C. Emerson

Henry Laurence Gantt


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1.1 Scientific Management School

Father of Scientific Management


Made systematic study of
relationships between people & tasks.
Optimized task = Reduced time a
worker spents on each task.
The Principles to Increase Efficiency

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1.1 Scientific Management School

Each element of a workers job is to be treated


scientifically.
Job specialization should be introduced to each job.
Workers should be properly selected, trained &
developed.
The pillars of work are planning & scheduling.
Determined time & method standards should be
considered for each task.
Wage incentives have to be provided for all jobs.

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1.1 Scientific Management School

1. Managers often implemented only the increased


output side of Taylors plan:
They didnt allow workers to share in
increased output.
Specialized jobs became very boring & dull.
Workers ended up distrusting scientific
management.
2. Workers could purposely under-perform;
3. Management responded with increased use of
machine.

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1.1 Scientific Management School

Developed Time & Motion Studies


Used motion picture cameras to find
the most efficient & economical
motions for each task.
Time & Motion Studies:
1. Break down each action into components.
2. Find better ways to perform each action.
3. Recognize each action to be more efficient.

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1.1 Scientific Management School

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1.1 Scientific Management School

Developed the GANTT Chart


The Gantt chart shows the start &
finish dates of the terminal
elements & summary elements of
a project.
Gantt charts also serve as visuals to
estimate the degree of project
completion.
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1.1 Scientific Management School

Setting organizational objectives


Proceeded with Taylors efficiency
principles.
Idea of strict distinction between
line & staff roles in management.

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1.1 Scientific Management School


KEY POINTS:

The School focused on production control, where


observation, logic & analysis are the
tools to improve
manual operations.
Scientific Management School Methodology
concentrated on the analysis of work
content,
job specialization & systematic use
of incentives to
increase the production volume & perfect employees
performance.

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1.2 Administrative School

Henry Fayol

Max Weber

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1.2 Administrative School

Fourteen Principles of Management


Division of Labor
Authority & Responsibility
Discipline
Unity of Command
Unity of Direction
General Interests Over Individual Interests
Remuneration
Centralization/ Decentralization
Scalar Chain (Line of Authority)
Order
Equity
Stability of Tenure
Initiative
Esprit de Corps

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1.2 Administrative School


Introduced rational authority
Rational authority : When an
organization w/ a formal structure
is managed on a rational basis, it
would be more efficient &
adaptable to changes.
Rational authority = Bureaucracy

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1.2 Administrative School


Bureaucratic Organizations key points:
1. Clear division & specialization of labor.
2. Hierarchy of authority & responsibility.
People know what is expected of them &
who reports to who.
3. Fair evaluation & reward of the staff.
4. Written rules, standard operating
procedures & norms are provided to
regulate all the processes within the
company.
5. Management & the ownership of the
organization are separated.
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1.2 Administrative School


KEY POINTS:

Administrative School aimed to find the tools to


improve the total organizational performance.
The idea of Universal Principles of Management
(Fayols 14 Principles of Management) & Webers
Bureaucracy had a strong impact on the contemporary
organizational theory development.
Both Scientific & Administrative Management Schools
appeared when the study of Psychology was at its early
stages. The schools discussions were restricted by fair
payment, economical incentives & formal functional
relations.
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1.3 Behavioral School


George Elton Mayo

Abraham Maslow

Frederick Herzberg

Douglas McGregor
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1.3 Behavioral School


The incompetence of the Classical School in questions of
human relations & behavior gave birth to the Behavioral School.

Two Branches:

a. George Elton Mayo


b. Abraham Maslow

a. Frederick Herzberg
b. Douglas McGregor
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1.3 Behavioral School

Famous for his Hawthorne Experiments


which showed that scheduling, planning &
fair payments were not enough to provide
stable increase of organizational
productiveness.
Concluded that individuals are motivated by
social needs & good on the job
relationships & respond better to workgroup pressure than to management
control activities.
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1.3 Behavioral School

Famous for his Hierarchy of Needs


Expanded Mayos ideas of social needs;
observed that his patients were motivated
by a sequence of needs.

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1.3 Behavioral School

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1.3 Behavioral School


KEY POINTS:

The theorists believed that managers should take


care of their employees. Providing high level
of care, managers get high level of staff
satisfaction.
Mayo & Maslow recommended the human
relations management which includes more
effective actions of managers, consulting
the staff & enabling the workers to have
broad on-the-job relationships.

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1.3 Behavioral School

Worked on different aspects of social


cooperation, motivation,
organizational communication,
changes in job specification &
quality of industrious life.
Their approach intended to help an
employee realize personal
potential.

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1.3 Behavioral School


KEY POINT:

The general target of the school was to prove that


increase in staff performance provides an increase in
organizational effectiveness.

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1.4 Management Science School


Developed after World War II from the operational research
teams in Great Britain & US.
Advocated that mathematics, statistics, cybernetics &
operations research models should be used to decide
operation problems.
Model - an idea of real situation; in order to solve operation
problems:
1. Define the problem;
2. Develop a model of the situation
3. Specify the quantitative characteristics to the model
substitution of verbal discussions for models, symbols &
quantitative values.
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1.4 Management Science School

The optimal decision making algorithm based on


statistical decisions theory, game theory etc.
Quantitative abstract and applied models of
economic phenomena
Management Science
School provides
managers with a
scientific basis for
solving problems &
making decisions.

The most recent subfield of Management Science


is Management Information System (MIS) which
provides managers with information in a timely &
cost-efficient manner
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Pioneered by the Administrative School Theorists in their attempts


to describe managerial functions.
Sees managerial functions as a set of interrelated actions.

Management as a process.
Objectives are met by a series of continuous & interrelated actions.
These actions are called managerial functions.
Management is a unity of 5 managerial functions. To manage
means:
1. To forecast & plan.
2. To Organize.
3. To Command
4. To Coordinate
5. To Control
-Henry Fayol
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Five Functions of Management

Planning
Organizing
Staffing
Directing
Controlling

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Introduced to management after 1950s by the Management Science

School.
Organization is a system and considered relations inside & outside
the organization.

System

A number of interdependent parts functioning as


a whole for some purpose.

Subsystem

A system within a system.

An Organization is an
OPEN SYSTEM
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ENVIRONMENT

input

Transformation
process

output

Feedback (Reenergizing the system)

System Boundary
Organization as a System: receives Input, transforms
it through a Process for Output and Operates in an
Environment (economic, regulatory and other forces)
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9 Ms of
management

Controlling

Leading

Staffing

Organizing

(Goal
Oriented)

Planning

Inputs

Product/Services,
Profits, Customer &
Societal satisfaction,
Other Long-term Goals

Stakeholders
Shareholders;
Society; Customers;
Employees; Suppliers

Outputs

(External
To
Orgnzn.)

Stake holder Feedback (reenergizing the system)

EXTERNAL ENVIRONMENT(Opportunities, Constraints)

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Believes that it is impossible to select one combination of


management techniques for all situations.
Organizations differ in structures, spans of control, chains of
command, degrees of centralization, corporate culture, and so on. Thus,
each organization is tailored by some particular circumstances.

Applies ideas drawn from various schools of management thought to


real life situations.
Contingency theorists denote such elements of a management
situation as the conditions of a task (like the Scientific Management
School), managerial job (borrowed from the Administrative School) &
person (Human Relations Movement).
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This approach points out the need for managers to examine


the relationship between the internal & external environment of an
organization.

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Good management is the art of


making problems so interesting and
their solutions so constructive that
everyone wants to get to work and
deal with them.
--Anonymous--

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