ORGANIZATION AND MANAGEMENT

MEANING OF MANAGEMENT FROM

DIFFERENT PERSPECTIVE

• Management is the art of getting things done through people. – Mary Parker Follet

• Management is a distinct process consisting of planning, organizing, actuating and

controlling; utilizing in each both science and art, and followed in order to accomplish
pre-determined objectives. --George R. Terry

• Management is the art of knowing what you want to do and then seeing that they do it in
the best and the cheapest way. -- F.W. Taylor

• Management is the art of getting things done through others and with formally organized
groups. -- Harold Koontz
THE FIVE FUNCTIONS OF MANAGEMENT
MA NAG EMEN T C AN B E USED IN D IFFEREN T ASPECTS O F L IFE. FO R TH E PAST
D E C A D E S , A O F M A N A G E M E N T A P P R O A C H I S D E V E L O PE D . S O M E O F T H E M E V E N
O R I GI N AT E D FR O M AN OT H E R MA NAG E ME N T AP P R O ACH . I N T H I S MO D UL E , W E W I L L
J UST D ISCUSS TH E IMPO RTANT EV ENTS O F SO ME SPECIF IC MA NAG EMEN T.
I T B E G A N I N T H E L A T E 1 9 T H C E N T U R Y A F TE R T H E I N D U S T R I A L R E V O L U T I O N B U T
S A W M O R E D E F I N I TI V E F O R M I N T H E 2 0 T H C E N T U R Y . I N D U S T R IA L R E V O L U T I ON
R E F E R S T O T H E T R A N SI T I O N F R O M H A N D P R O D U C T I O N M E T H O D S T O M A C H I N E S ,
N E W C HE M I CAL MA NUF ACT U R I NG P R O CE S S E S , I R O N P R O DU CT I O N P R O CE S S E S ,
I N C R E A S I N G U S E O F S T E A M P O W E R , A N D T H E D E V E L O PM E N T O F M A C H I N E T O O L S .
 EVOLU TION OF MANAGEMENT THEORIES

• 1. Scientific Management Theory

• Frederick W. Taylor (1856-1915) known as the “Father of Scientific Management” is the most
significant contributor of this approach. He defines management as “the one best way” for a
job to be done. He made a study of his worker why they have a low output. The result came
out that the workers have lack of enthusiasm, and discrepancy in their job assignments with
their skills. And so he came up with the Scientific Management Principles.
• Four Principles of Scientific Management:
• 1. Develop a new method in performing a job base in science to replace the old one.
• 2. Teach, train and develop the workers.
• 3. Interest of employer & employees should be fully harmonized
• 4. Establish fair division of work and responsibility between management and workers.

• Another contributor of this approach is the husband and wife tandem of Frank Gilbreth
(1868-1924) and Lillian Gilbreth (1878-1972). They devised a classification of scheme to label
17 basic hand motions to increase productivity and remove wasteful motion which is called
the “THERBLIGS”.
2. Administrative Management Theory
This theory focused on manager’s role and what management practices are best to
apply. The most famous personalities in this approach are Henri Fayol (1841-1925)
known as the “Father of Principles of Management” and Max Weber (1864-1920).
Fayol believed that management activities should be practiced and viewed separately
from other organization activities such as marketing, finance and research. While
Weber wrote that organizations must have authority structures and coordination with
others based on what he referred to as bureaucracy.
M A N A GE M E N T F U NC TI O N S A R E N E E D E D I N OR D E R TO A C CO M PL I S H
T HE MA N A G E ME N T PR O C E SS O F C OO R D I NA T I NG A N D O VE R S E E I NG
T HE WO R K PE R F O R M A NC E O F I ND I V ID U A L S W O R K I NG T O G E TH E R I N
O R G A NI Z A T IO N S.

• Management functions include the following:

• (a) Planning involves determining the organization’s goals, listing down action plan that
must be done and the resources to be used to accomplish them.
• (b) Organizing includes assigning tasks, setting aside funds for future use, and developing
harmonious relationship among them for the achievement of organizational goal.
• (c) Staffing indicates filling in the different job positions in the organization’s structure which
includes recruiting individuals depending on the type of jobs and number of manpower
needed. Its purpose is to put the right person on the right job.
• (d) Leading/directing involves influencing, supervising, training, guiding and motivating
subordinates to do their best so that they would be able to help the organization’s endeavor
to attain their set goals.
• (e) Controlling involves evaluating and, if necessary, correcting the performance of the
individuals 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, efficiency, and
effectiveness are not practiced by an organization’s managers.
• Coordination ensures that all individuals or teams are harmoniously working
together to achieve their goal while
• efficiency refers to the optimal use of scarce resources (human, financial, physical,
and mechanical) in order to bring maximum productivity; and
• effectiveness means “doing things correctly” when engaged in activities that will
help the organization attain its aim.
• Henri Fayol’s Management Principles:
• 1. Work division or specialization
• 2. Authority and Responsibility
• 3. Discipline
• 4. Unity of Command
• 5. Unity of Direction
• 6. Subordination of individual interest to general interest
• 7. Remuneration/pay
• 8. Centralization
• 9. Scalar chain of authority
• 10. Maintenance of Order
• 11. Equity/fairness
• 12. Stability of tenure of workers
• 13. Employee Initiative
• 14. Espirit de corps/Promotion of team spirit
Division of Work – Work is divided according to the specialization or skill of the worker to increase their efficiency
• Authority and Responsibility – refers to the issue of commands followed by responsibility for their
consequences.
• 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 only
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.
• Bureaucratic Characteristic:
• 1. Division of Labor
• 2. Formal Hierarchical Structure
• 3. Selection based on Technical Expertise
• 4. Management by Rules
• 5. Written Documents
• 6. Only Legal Power is Important
• 7. Formal and Impersonal relations
• 3. Behavioral Management Theory
• This is also known as Human Relations Management Theory. This theory focused on the human
aspect of work. Elton Mayo (1880-1949) and Abraham Maslow (1908-1970) are the most
commonly associated personalities in this era.
• Mayo did a study known as the “Hawthorne”, the lighting experiment and the bank wiring room
supervision experiment to know what affects the productivity of a worker. From this
experiment, he concluded that the supervisory tasks given to the worker (giving privileges and
special attention) boost their productivity and the lighting has nothing to do with it. In addition,
he emphasized that the human relations and social needs of workers are important aspects of
management.
• On the other hand, Maslow created a theory based on his assumption of the human needs
known as Maslow’s Hierarchy of Needs. Needs are classified according to hierarchical structure
of importance from lowest to highest.
• (a) Physiological needs include food, clothing, shelter, air, sex, and all other physical
needs necessary for a human being to live well.
• (b) Safety needs includes the basic security, stability and protection such as body,
employment, resources, family, property, and health security.
• (c) Belonging and Love needs includes friendship, family and sexual intimacy.
• (d) Esteem needs includes self-esteem, confidence, achievement, respect, fame, and
glory.
• (e) Self-actualization needs is the last need to be satisfied where in an individual feels
the need of finding himself. This may include acceptance of facts, morality, spontaneity,
and others.
4. Management Science Theory

• This is also known as the Quantitative approach to management. This theory originated
during World War II as mathematical and statistical solutions to military problems were
developed for war time used.

• 5. Organizational Environment Theory

• This theory focused on understanding the external factors in the environment that might
have an effect on achieving organization’s goal. They’ve recognized that human factor
alone is not the only reason to achieve their aim. Factors such as social, technical and
economic can be in the form of system (Open or Closed) might as well affect their
organization. Open system interacts with its environment (trends and interest of people,
etc.) while Closed system has no interaction with its environment (machines and
materials, etc.).
• Understanding which system might affect the organization either good or bad will lead
managers to plan, decide and take actions for the benefit of the whole organization.
 D IF F E R E NT T Y P E S OF M AN AG E ME NT S T Y L E S

• 1. Autocratic
• An autocratic style of management, is when, a manager makes a decision unilaterally. The manager
conveys the decision to staff, and they have to work, within the scope of that decision.
• 2. Consultative

• In consultative style, the manager engages the subordinates efficaciously, in the decision making and
problem solving process. Consultative style endorses the concept of empowerment. Communication is
generally downward, but feedback to the management, is encouraged to maintain morale.
• 3. Persuasive

• Persuasive style of management is somewhat similar to the autocratic style of management. The major
difference is that, despite holding the entire power of decision making, the persuasive manager spends
more time, working with his subordinates, in order to try to convince them, of the benefits of the decision
that have been made.
• 4. Democratic
• Democratic style is a multilateral approach, where the manager allows the employees,
to take part in decision-making, and therefore everything is agreed upon by the
majority. This type of management style is mostly found in businesses, where efficiency
is a joint operation.
• 5. Laissez Faire

• Laissez Faire by definition means refusal to interfere. In Laissez Faire style, the role of
the manager is more like a mentor and stimulator, and the employees manage their
respective areas of business. This type of management works only, if the people
involved are self-motivated and task oriented.