SH1710

Nature and Concept of Management

I. Definition and Functions of Management

Management is the process of coordinating and overseeing the work performance of
individuals working together in organizations so that they could efficiently and effectively
accomplish their chosen aims or goals.
It is also defined as the process of designing and maintaining an environment for efficiently
accomplishing selected items. Management functions include the following:
 Planning involves determining the organization’s goals or performance objectives,
defining strategic actions that must be done to accomplish them and developing
coordination and integration activities.
 Organizing demands assigning tasks, setting aside funds, and bringing harmonious
relations among the individuals and work groups or teams in the organization.
 Staffing indicates filling in the different job positions in the organization’s structure; the
factors that influence this function include the size of the organization, types of jobs, the
number of individuals to be recruited, and some internal or external pressures.
 Leading entails influencing or motivating subordinates to do their best so that they would
be able to help the organization’s endeavor to attain their set goals.
 Controlling involves evaluating and, if necessary, correcting the performance of the
individuals or work groups or teams to ensure that they are all working toward the
previously set goals and plans of the organization.
Management functions will all go to waste if coordination (the harmonious, integrated action
of various parts and processes of an organization), efficiency (the character of being able to
yield the maximum output from a minimum amount of input), and effectiveness (being
adapted to produce an effect to be able to do things correctly) are not practiced by an
organization’s appointed managers. In other words, top-level managers, middle-level
managers, and team leaders or supervisors must all be conscious of the said practices of
successful organizations as they perform their management functions. When applied to
management functions, these practices ensure that all individuals, groups, or teams are
harmoniously working together and moving toward the accomplishment of the organization’s
vision, mission, goals, and objectives.
II. Scientific Management Theory
This management theory makes use of the step-by-step, scientific methods for finding the
single best way for doing a job. Frederick W. Taylor (1856-1915) is known as the proponent
of this theory and the Father of Scientific Management. While working in a steel company in
Pennsylvania in the United States as a mechanical engineer, he could not help but notice the
workers’ mistakes and inefficiencies in doping their routine jobs, their lack of enthusiasm,
and the discrepancy between their abilities and aptitudes and their job assignments; thus
resulting in low output. Because of these observations, he tried to identify clear guidelines for
the improvement of their productivity.
Taylor’s Scientific Management Principles are as follows:
1. Develop a science for each element of an individual’s work to replace the old rule of
thumb method.
2. Scientifically select and then train, teach and develop the worker.

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3. Heartily cooperate with the workers to ensure that all work is done in accordance with the
principles of the science that has been developed.
4. Divide the work and responsibility almost equally between management and workers.
III.General Administrative Theory
This theory concentrates on the manager’s functions and what makes up good management
practice or implementation. Henri Fayol (1841-1925) and Max Weber (1864-1920) are the
personalities most commonly associated with it. Fayol’s 19 th-century writings were
concerned with managerial activities, which he based on his actual experience as a managing
director in a big mining company. He believed that management is an activity that all
organizations must practice and view it separately from all other organizational activities
such as marketing, finance, research and development, and others. Weber, a German
sociologist, wrote in the early 1900s that ideal organizations, especially large ones, must have
authority structures and coordination with others based on what he referred to as
bureaucracy. Present-day organizations still make use of Weber’s structural design.
Bureaucracy according to
Henri Fayol’s Management Principles
Max Weber
1. Work division or specialization
2. Authority According to Weber,
3. Discipline bureaucracy is an
4. Unity of command organizational form
5. Unity of direction distinguished by the
6. Subordination of individual interest to general interest following components:
7. Remuneration or pay  division of labor
8. Centralization  hierarchical identification
9. Scalar chain of authority of job positions
10. Maintenance of order  detailed rules and
11. Equity or fairness regulations
12. Stability or security of tenure of workers
 impersonal connections
13. Employee initiative
with one another
14. Promotion of team spirit or esprit de corps
IV. Total Quality Management (TQM) Theory
Total Quality Management (TQM) is a management philosophy that focuses on the
satisfaction of customers, their needs, and expectations. Quality experts W. Edwards Deming
(1900-1993) and Joseph M. Juran (1904-2008) introduced this customer-oriented idea in the
1950s; however, the concept had few supporters. The Americans did not immediately take to
the idea since the United States was enjoying supremacy in the global market at the time.
Japanese manufacturers, on the other hand, took notice of it and enthusiastically
experimented on its application. When Japanese firms began to be recognized for their
quality products, Western managers were forced to give a more serious consideration of
Deming’s and Juran’s modern management philosophy that eventually became the
foundation of today’s quality management practices.
Deming’s 14 Points for Top Management Fitness of Quality according to Juran
1. Create constancy of purpose for 1. Quality of design – through market
improvement of products and services. research, product, and concept

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