❖ What is Management?

➔ Management is a process of coordinating and overseeing the work performance of

individuals working together in organizations, so that they could efficiently
accomplish their chosen aims or goals.
➔ Italian word “Maneggiare’ which means “to handle”.
➔ Maneggiare derives from the Latin words “manus” (hand) and “agere” (to act).
➔ “The art of getting things done through people” - Mary Parker Follet
➔ “To manage is to forecast and to plan, to organize, to command, to coordinate, and
to control.”- Henri Fayol
➔ Management is the process of working with and through others to achieve
organization objectives in a changing environment. - Kreitner, 2010
❖ Organization’s Resources
1. Employees
2. Equipment
3. Money
❖ 5 components of Kreitner’s Definition
1. Working with and through others
➔ Management is a social process
➔ Managers are responsible for gettings things done by working with and
through others
★ Changing Environment - Managers who anticipate and adjust to
changing circumstances rather than being caught unprepared are
the successful ones.
2. Achieving organizational objectives
➔ Objectives ≠ Goal
➔ Objective is a target to be striven for and to attain one’s hope.
➔ Objectives must be challenging yet achievable.
3. Balancing effectiveness and efficiency
➢ Efficiency
➔ Refers to the relationship between inputs and outputs
➔ If u can get more outputs from the given input, u have increased
efficiency.
➔ Management is concerned with minimizing resource costs.
➔ “Doing things right” - Process
➢ Effectiveness
➔ When managers achieve their organizational goals, they are effective.
➔ “Doing the right things.” - Result
 4. Making the most of limited resources
➔ Basic factors of production; land, labor, and capital.
➔ Managers are the trustees of limited resources.
➔ Management could be called “applied economics.”
➔ Management is art because - application of skills and techniques to
achieve desired results. (creativeness)
➔ Management is science because - involves scientific methods.
5. Coping with a changing environment
➔ The world is constantly changing.

❖ Manager’s Job: Functions, Roles, and Skills.

➔ A manager is an individual who is in charge of a certain group of tasks, or a
certain subset of a company.
➔ “ has a staff of people who report to him.
➔ A manager’s job is to lead the staff; he makes sure that the organization’s
goals are carried out by his department.
❖ 5 functions of a manager
1. Planning
➔ Basic function of Management.
➔ Plotting and jotting down of actions plans and decisions (brainstorming)
➔ Manager plans the future course of actions
2. Organizing
➔ Process of bringing together physical, financial, and human resources and
developing productive relationships amongst them.
➔ Managers must figure out the number of manpower needed to get the tasks
and jobs done.
3. Staffing
➔ Selection, orientation, training, and continuing evaluation of the
individuals who hold the required positions.
➔ Put the right people on the right job.
4. Leading
➔ Managers must supervise, lead, motivate, coach, train, guide, and
direct his subordinates.
5. Controlling
➔ Controlling has the following steps;
a. Establishment of standard performance
b. Measurement of actual performance
c. Comparison of actual performance with the standards.
d. Corrective action
❖ Types of roles of Managers
1. Interpersonal Roles
a. Figurehead Role - represent their respective units in the outside
world
b. Leadership role - initiate and coordinate activities in their units.
c. Liaison role - interact w/ persons in other units within and outside
the organization.
2. Informational Roles
a. Monitor role - monitors activities occurring outside the office.
b. Disseminator role - transmit and disseminate information.
c. Spokesperson role - represent and speak for their units.
3. Decisional Roles
a. Entrepreneurial role - identifies new opportunities and develop those
into new products, services, methods, or activities within their
organization.
b. Problem solver - identifies solutions and takes action to overcome
them
c. Resource Allocator - distributes funds, personnel, materials, and
other organizational resources.
d. Negotiator - frequently involved in negotiation activities.
❖ Management Skills
1. Conceptual
➔ “Big picture”
➔ Be able to create ideas and visualize for the future.
2. Technical
➔ Ability to use different techniques to achieve what they want to
achieve
3. Human
➔ interpersonal relationships
➔ Ability to work well with others.

❖ Evolution of management theories

1. Scientific Management
➔ The use of scientific method to determine the “one best way”
➔ Standard established by facts or truths gained through systematic
observation and experimentation.
➔ Frederick W. Taylor - Father of scientific management.
2. Administrative Management Theory
➔ Involves using people to manage and design information and
structure within the organization.
➔ Information and people.
➔ Max Weber - Father of Bereaucracy
➔ Bureaucracy emphasized division of labor, clearly defined hierarchy,
career advancement based on merit, rules, and decisions based one
ritten format and impersonal relationships.
➔ Henri Fayol - Father of Modern Management.
➢ Fayol’s 14 principles of management
1. Division of work - specialization of labor
2. Authority - right to give orders
3. Discipline - obedience and respect
4. Unity of command - employees should follow only
one authority
5. Unity of direcition - everyone should be coordinated
and focused in the same direction.
6. Subordination of individual interest to the general
interest - Resolving the tug of way b/w personal and
organizational interest.
7. Remuneration - employees should be paid fairly
8. Centralization - authority is concentrated “one
authority only)
9. Scalar chain - chain of superiors from the highest to
the lowest ranks
10. Order - material things and people should be in their
proper places
11. Equity
12. Stability and tenure of personnel - people need time to
learn their job
13. Initiative - sacrifice personal vanity
14. Esprit de Corps. This is the principle that “in unity,
there is strength.”
3. Behavioral Management Theory
➔ Often called human relations movement
➔ Focuses on the human aspect of work
 ➔ Better understanding of human behavior while at work = improved
productivity

★ Supported by 3 very different historical influences

a. The threat of unionization
- Satisfied employee would be less inclined to
join unions
b. The hawthorne studies
- Employees tend to improve no matter how the
physical environment were manipulated
- Relationships between the members of a work
group and between workers and their
supervisors were found to be more significant.
c. The philosophy of industrial humanism
1. Elton Mayo - urged managers to provide work
that fostered personal and subjective
satisfaction.
2. Mary Parker Follet - motivate performance
rather than simply demanding it
3. Dougla McGregor - employees are creative and
energetic individuals who could achieve great
things if given the opportunity.
4. Management Science Theory
➔ Quantitive approach to management
➔ “Quantitive techniques”; applications of statistics, optimization
models, information models, and computer simulations.
➔ Orginated during WW2 as mathematical and statistical solutions to
military problems
➔ Contributeds to manegerial decision making
5. Organizational Environment Theory
➔ Human factor alone is not a consideration to achieve organizational
effectiveness.
➔ Organizations are part of a larger environment outside its boundaries
and if affected by social, technical, and economic factors.
★ 2 basic organizational environment theory
1. Closed System - no interaction with its environment
2. Open System - interacts with its environment
❖ Business Environment
➔ Set of external factors; economic factors, social factors, political, and legal
factors, demographic factors, technical facotrs, etc.
➔ Outside factors affecting the business operations that are beyond the control
of the business.
★ Changes in the business environment are constantly changing,
unpredictable, and dynamic.
★ Differs from place to place, region to region, and country to country.
❖ Environmental forces (S.P.E.E.T.L.C)
1. Socio-cultural
➔ Structure and dynamics of individuals and groups
2. Political
➔ Political form, the government policies, and attitude towards the
business community.
3. Economic
➔ Economic growth
➔ “Rates”
4. Environment
5. Technological
➔ A business has to adapt to technological changes from time to time.
6. Legal
➔ Every business organization has to follow and obey within the
framework and requirements of the law.
7. Competitive
➔ “Know thy competitors”
➔ Deisgn effective strategies using the firm’s controllable variables.

❖ SWOT Analysis
➔ Efficient during the planning stage
➔ A good way to introduce relevant internal and external factors of the
analysis as the team goes on a
brainstorming.
➔ Was first tested by Albert Humprey
(1926 - 2005)
● Strengths - advantages or the
internal attributes that support a
positive result.
 ● Weaknesses - Internal factors that work against a successful
outcome compared to the competitors
● Opportunities - current external factors that can be used to be taken
advantage of.
● Threats - current external factors which may cause a problem to
cause a negative impact and can jeopardize the business.
❖ PEST Analysis
➔ Created by Francis Aguilar as a scanning tool.
➔ Helps the business spot the opportunities and red flags on significant threats
➔ Guides the direction of change within the organization and contributes to
avoid starting projects that are likely to fail for reasons beyond the control
of the business firm.
● Political - laws, global issues, legislations, regulations, which may
have a direct impact on the business.
● Economic - taxes, interest rates, inflation, the stock market, and
consumer confidence have to be taken into account.
● Social - changes in lifestyle and buying trends, media, major events,
ethics, advertising, and publicity factors.
● Technological - Innovations, access to technology, liscensing,
manufacturing, research funding, global communications.

❖ Forms of business organizations

➔ Sole proprietorship
- Only one owner
- Easy to set-up and is the least expensive
- Unlimited liability
- Adopted by small business entities.

➔ Advantages
- Ease and cost of formation - easiest and least costly to
establish.
- Secrecy - keeping his intentions secret
- Distributions and use of profits - not required to
consult anybody
- Control of the business - vested solely to the single
proprietor.
 -Government regulation - proprietor is spared from
various government rules
- Taxation - the net income is regarded as the personal
income and is taxed accordingly
- Closing the Business - does not need to seek approval
of co-owners
➔ Disadvantages
- Owners lack of ability and experience - he will depend
largely on the management and entrepreneurial skill of
the proprietor.
- Difficulty in raising more capital - depends on the
financial resources available of the sole owner.
- Limited life of the firm - depends ont eh physical
well-being of the owner (if the owner dies, the
business also dies)
- Unlimited liability of the owner - any liability extends
to the owners personal assets

➔ Partnership
- Owned by two or more persons
- Partners divide the profits of the business among themselves
➔ Advantages
- Ease of formation - the only requirement for
partnership to work is for them to agree on bic aspects
of business like the nature of the business, locations,
etc. (Partnership Agreement)
- Pooling of knowledge and skills - combined
knowledge and skills of the partners provide the
partnership with a distinct advantage.
- More sources of capital - combined resources of the
partners
- Ability to attract and retain employees
- Tax Advantages - profits derived by the partners are
taxed as their individual incomes.
➔ Disadvantages
- unlimited liability - any liability incurred by the
partnership extends to the owners’ personal assets
 - Limited life - when a partner dies or withdraws =
partnership is terminated
- Potential conflict between parties
- Difficulty in dissolving the business - it may not be
easy to divide whatever assets are left for distribution
★ 2 types of Partnership
1. General Partnership - unlimited liability and are actively
involved in the business.
2. Limited Partnership - liability of one or more partners are
limited to the amount of assets they invested in the business.
➔ Corporations
- Seperate legal personality from its owners
- Owners (stockholders) enjoy limited liability but have limited
involvement in the company’s operations.
- Board of directors, an elected group from the stockholders controls
the activities of the corporation.
- Eg. AdNU’s suspension of classes depends on the decision of the
principal/president.
➔ Advantages
- Limited liability - the liability of a stockholder is
limited to his shareholdings
- Ease of expansion
- Ease of transferring ownership - shares may be sold or
donated to another person
- Relatively long life - corporations are established to
have a life of up to 50 years and is extendivle for
longer periods
- Greater ability to hire specialized management -
corporations make it possible to subdivide the overall
task in to smaller specialized positions
➔ Disadvantages
- More expensive and complicated to organize - the SEC
will only issue the certificate of incorporation after
reviewing the articles of incorporation previously
submitted by the initial set of corporate officers
- Double taxation - profits are taxed twice by the
government
 - More extensive government restrictions and reporting
requirements - corporations cannot distribute stock
dividends without prior approval from the SEC.
- Employees lack personal identification and
commitment - relationship between the corporation
and the employees are too impersonal.
➔ Cooperative
- Business organization owned by a group of individuals and is
operated for their mutual benefit
- Persons making up the group are called members.