NATURE AND CONCEPT OF

MANAGEMENT
MANAGEMENT
⚫The force that runs the enterprise and is
responsible for its success and failure.
⚫Is the performance of conceiving and
achieving desired results by means of
group effort consisting of utilizing human
talents and resources.
⚫Getting things done through people.
⚫Satisfying the economic and social needs
by being productive for the human being,
for the economy, and for society.
⚫(generally accepted definition) is a
distinct process of planning, organizing,
staffing, directing and controlling
(POSDICON) or the (Fundamental
functions and process of management),
performed to determine and accomplish
stated objectives by the use of human
being and other business resources.
BASIC RESOURCES 6 M’S
⚫Men
⚫Money
⚫Materials
⚫Machines
⚫Methods
⚫market
UNIVERSAL ACCEPTED
FUNCTIONS OF MANAGEMENT
⚫ Planning
⚫ Organizing
It involves:
a. Identification or grouping of work to be
done.
b. Delegation of authority and responsibility
c. Establishment of relationships.
⚫ Staffing
⚫ Directing
⚫ Controlling
MANAGEMENT IS AN ART
⚫Because it results in the accomplishment
of objectives through the use of human
efforts. It requires skill and careful study
in the management of any endeavor.
MANAGEMENT IS A SCIENCE
⚫Because it is a systematic body of
knowledge. It gathers and analyzes facts
and formulates general laws of principles
from these facts.
FOUR SCHOOLS OF THOUGHT
OR THEORIES:
1. CLASSICAL OR
TRADITIONA SCHOOL –
believed and prescribed
certain principles that would
aid in setting up and managing
organization.
HENRI FAYOL
⚫ Born of relative well-to-do parents.
⚫ Graduated as a mining engineer.
⚫ 1860 – he started as janitor then rose to
become the executive of a coal mining and
iron foundry company.
⚫ 1888 – company was near bankruptcy. He
took over as managing director and rapidly
turned the company into a financially sound
organization.
⚫ His greatest contribution was his discussion
of management principles and elements.
14 PRINCIPLES OF
MANAGEMENT
A, 1. DIVISION OF WORK – this is the
assignment of specialized jobs to various
departments/positions.
- When work is specialized, people learn
the task more easily and perform them
more effectively.
14 PRINCIPLES OF
MANAGEMENT
2. AUTHORITY AND RESPONSIBILITY

AUTHORITY – the power or the right

entrusted to make the work possible.

RESPONSIBILITY – the duty or work

assigned to a particular position.
14 PRINCIPLES OF
MANAGEMENT
3. UNITY OF COMMAND – this means
that employees should receive orders
from one superior/manager only.
4. SUBORDINATION OF INDIVIDUAL
INTEREST TO GENERAL INTEREST –
the interest of one employee or group
of employees should not prevail over
the interest of the business.
14 PRINCIPLES OF
MANAGEMENT
5. REMUNERATION – remuneration and
method of payment should be fair and
afford the maximum possible satisfaction
to employees and employer. Sometimes
called Compensation. This principle is
based on equal pay for equal work.
6. CENTRALIZATION – it is a system of
management wherein major policies are
made only by the top management.
Opposite of decentralization.
14 PRINCIPLES OF
MANAGEMENT
7. SCALAR CHAIN – thinks of it as chain of
superiors from the highest to the lowest
ranks. This can be properly described by
the use of the pyramid of organization
consisting of top management, middle
management, lower level or rank and file.
8. STABILITY OF TENURE – this is
unnecessary labor turnover. It could be a
cause and effect of bad management.
Employees should be given enough time
and period to provide his worth to the
company.
14 PRINCIPLES OF
MANAGEMENT
9. ESPRIT DE CORPS – this principle
explains that in union there is strength.
It emphasizes the need for teamwork
and the importance of communication in
obtaining it.
10. SPAN OF CONTROL – refers to the
specific and limited number of
subordinates that a manager can
effectively handle and control
14 PRINCIPLES OF
MANAGEMENT
11. SIMPLICITY – unnecessary elements
should be eliminated from all activities
as well as from the process and
procedures established for carrying
them.
12. UNITY OF DIRECTION – one boss and
one plan for a group of activities having
the same objectives.
14 PRINCIPLES OF
MANAGEMENT
13. ORDER – ensures a place for
everything.
14. EQUITY – results from kindness
and justice.
FOUR SCHOLLOS OF THOUGHT
OR THEORIES:
B.SCIENTIFIC
MANAGEMENT BY
FREDERICK TAYLOR
FREDERICK TAYLOR
⚫Father of time study.
⚫His 1st job was an apprentice with the
Enterprise Hydraulic Works.
⚫1878 – he finished his apprenticeship and
joined Midvale Steel Co. as common
laborer.
⚫After six years he rose through eight
positions to chief engineer.
⚫ It did not take him long to figure out that many
workers put forth less than 100% effort. He
referred to this behavior of Taylor’s Quaker-
Puritan background, it was hard for him to
understand and accept this situation.
⚫ Taylor quickly saw that workers had little or no
reason to produce more because most wage
systems of that time was based on attendance
and position.
⚫ Taylor believed that a piece-rate system would
work if the workers believed that the standard
had been fairly set and the management would
stick to it rather than to tradition and custom for
setting work standards.
TAYLOR’S FOUR PRINCIPLES OF
SCIENTIFIC MANAGEMENT
⚫Develop a science for each element of a
man’s work, to replace the old rule-of-
thumb method.
⚫Scientifically select and then train the
worker.
⚫Heartily cooperate with the men to
ensure that all work is done in
accordance with the principles of the
science develop for the work.
TAYLOR’S FOUR PRINCIPLES OF
SCIENTIFIC MANAGEMENT
⚫Divide the work and the responsibility
equally between management and
workers.
FOUR SCHOLLOS OF THOUGHT
OR THEORIES:
THE GILBRETHS AND
⚫C.

MOTION STUDY
Frank and Lilian Gilbreth (1912)
⚫ emphasized the ideal motions required to perform a
job in an optional fashion.
⚫ Concept of THERBLIG (spelled backward except for
the transposition of the H and T for ease of
pronunciation).
⚫ The Gilbreths photographed the worker in action and
then observed the film in slow motion. The Gilbreths
used motion study successfully in many different
situation. The Gilbreths noticed that each stonemason
soon get tired because he had to bend continually to
pick up bricks which were arranged in a small pile
before him. To eliminate wasted motions, the
Gilbreths constructed a special adjustable stand for
the bricks. Productivity rose to 200%.
FOUR SCHOLLOS OF THOUGHT
OR THEORIES:
⚫HUMAN RELATION
SCHOOL
HUMAN RELATION SCHOOL
⚫ these studies were conducted by Elton Mayo
and his associates from Harvard University.
⚫ The human relations theorists contend that
an employee must be treated as a human
being and not as a mere factor of production.
⚫ The practitioners in the field of management
learned how to overcome resistance to
change; how to motivate employees with
long-range effects; how to improve
communication techniques and methods;
how to provide good leadership and so on.
FOUR SCHOLLOS OF THOUGHT
OR THEORIES:
3. MANAGEMENT SCIENCE
OR QUANTITATIVE
SCHOOL OF THOUGHT
MANAGEMENT SCIENCE OR
QUANTITATIVE SCHOOL OF
THOUGHT
⚫initiated during the 1940’s
⚫Advocates a logical sequence of problem
formulation, gathering information and
data, constructing mathematical models,
exploring tentative solutions, testing the
suggested solutions, and executing them.
⚫Stresses the use of quantitative
techniques and methods in decision
making.
FOUR SCHOLLOS OF THOUGHT
OR THEORIES:
4. MODERN
MANAGEMENT
modern management can be
classified into three different levels:
1. TOP MANAGEMENT
• Develops and reviews long-range plans
and strategies.
• Evaluates overall performance of various
departments and ensures cooperation.
• Involves in the selection of key
personnel.
• Consults subordinate, manages on
subjects or problems of general scope.
MIDDLE MANAGEMENT
⚫Make plans of intermediate range and
prepares long-range plans for review by
top management.
⚫Analyzes managerial performance to
determine capability and readiness for
promotion.
⚫Establishes departmental policies.
⚫Counsels subordinated on production,
personnel or other problems.
⚫Selects and recruits personnel.
SUPERVISORY MANAGEMENT
⚫Make detailed, short-range
operating plans.
⚫Reviews performance of
subordinates.
⚫Supervises day-to-day
operations.
⚫Makes specific task assignments.
⚫Maintains close contact with
operative employees.