Fundamentals of Management

Isabelita R. Robles, MPM

Special Lecturer
 What is Management

Management is often included as a factor of

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production along with machines, materials and

money.
 Significance of Studying
Management
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It helps in Achieving Group Goals –
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It arranges the factors of production, assembles
and organizes the resources, integrates the
resources in effective manner to achieve goals.
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It directs group efforts towards achievement of
pre-determined goals.
 Importance of studying
management
People who create management theories rely
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upon observation and mathematics in order to

construct a model for business activities.
Management practice relies upon case studies
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and the individual experiences of managers

when dealing with workplace situations.
Since both schools of management have flaws
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and benefits, a business owner should study

both styles of management in order to improve
 Planning
According to Koontz: Planning is deciding in
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advance – what to do, when to do and how to

do.
It bridges the gap from where we are and where
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we want to be
Planning is necessary to ensure proper
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utilization of human and non-human resources

It is pervasive – it is an intellectual activity and it
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also helps in avoiding confusion, uncertainties,

risks, wastage, etc.
 Organizing
According to Henry Fayol, “To organize a business is to
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provide it with everything useful or its functioning i.e.

raw material, tools, capital and personnel’s
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Organizing as a process involves:
–Identification of activities
–Classification of grouping activities
–Assignment of duties
–Delegation of authority and creation of responsibility
–Coordinating activity and responsibility relationship
 Staffing
According to Koontz and O’Donnell,
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“Managerial functions of staffing involves

manning the organization structure through
proper and effective selection, appraisal and
development of personnel to fill the roles
designed in the structure.
It is the function of manning the organization
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structure and keeping it manned.

Staffing involves:
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–Manpower planning

–Recruitment, selection and placement

–Training and development
–Remuneration

–Performance appraisal
–Promotions and transfer
 Directing
It is the part of managerial function which actuates the
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organizational methods to work efficiently for

achievement of organizational process.
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Direction has the following elements:
–Supervision

–Motivation

–Leadership

–Communication
 Controlling
According to Koontz and O’Donnell, “Controlling is the
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measurement and correction of performance activities

of subordinates in order to make sure that everything
occurs in conformities with the standards
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Therefore, controlling has the following steps:
–Establishment of standard performance
–Measurement of actual performance

–Comparison of actual performance with the standards and

finding out deviation if any
–Corrective action
 Management as an Art
According to Mary Parker Follet, Harold Koontz and several
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management authors, called management – as an art of getting

things done through people
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Management is an art due to the ff. reasons
–Intelligence

–Initiative

–Innovative

–Individual approach

–Application and dedication

–Goal oriented
 Management as Science
Science is a systematic body of knowledge which is
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universally accepted.
Frederick Taylor, father of scientific management was
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perhaps the first person to consider management as a

science.
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Sciences can be divided into 2 groups:
–Physical sciences

–Social sciences

Management is a social science because it deals with human

beings
Management as an Art & as Science

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SCIENCE
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ART
Based on practice and
• Based on
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creativity experimentation
It is a theoretical body
• Is a systematized body
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of knowledge of knowledge
Has personalized
• Has universal
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application application
 Management is both, art and
science
Management is the art and the science of
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preparing, organizing and directing human

efforts to control the forces and utilizes the
material nature for the benefit of men.
 Evolution of management theories

The driving force behind the evolution of

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management theory is the search for better

wages to utilize organizational resources.

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Evolution of modern management began in the
late 19th century after the Industrial Revolution.
 Classical Management Theory
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Classical management theory involves creating employees at the
lowest levels find their tasks overseen by supervisors who, in
turn, are overseen by managers.

At every level, employees are expected to perform tasks

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according to specific procedures designed to maximize

productivity.

In addition, this theory focuses on an impersonal side of

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business.

Employees and managers should not allow friendliness and

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personal interactions to become involved with the organization.

Rules must be followed exactly, and the hiring and firing of

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employees must relate only to the skills they possess.

 Henry Fayol
French mining engineer Henri Fayol is the father of business
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management theories.

Fayol published his theory in a French text that defines six roles
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of managers -- forecasting, planning, organizing, commanding,

coordinating and controlling -- and applies them to 14 principles
that mandate how managers should interact with staff.

Fayol believed in a top-down hierarchy, with managers serving

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as benevolent leaders who are responsible for supervising and

disciplining subordinates, while treating them fairly and with
kindness and paying a fair wage to discourage turnover.
Principle of Management by Henry Fayol
 14 principles of administration by Fayol
1. Division of labor – work is distributed.
2. Authority – formal authority gives superiors right
to command.
3. Discipline – respect the policies of the
organization.
4. Unity of command – receive instructions only from
superior to prevent conflict and confusion.
5. Unity of direction – same objective should be
directed by only one supervisor.
6. Subordination of individual interest to general
interest – interest of the organization should prevail
over individual interest
7. Remuneration of employees – payment should be
fair to both employers and employees
8. Centralization – management should have the
ultimate say in the organization.
9. Hierarchy –organization structured along a line of
authority.
10. Order – people and materials should be in right
places and at the right time.
11. Equity – supervisors should be fair to their
subordinates
12. Security of tenure –
13. Initiative - subordinates should be given certain
amount of freedom to devise plans and carry them out
14. Esprit de corps (team spirit) – promotes
organizational unity
 Scientific management
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American mechanical engineer Frederick Winslow Taylor based
his scientific management theory on the results of his research
that examined how people work.
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He concluded that working efficiently is more productive than
working hard. His 1909 publication of "The Principles of Scientific
Management" coincided with Fayol’s work.

In addition to calling for an increase in efficiency, Taylor's four

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principles stressed a cooperative work environment in which

managers instruct, supervise and assess employees' work -- a
departure from the hands-off management style typical in early
20th-century manufacturing.
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Taylor advised managers to hire the employees who
are most capable for their specific jobs and who
perform them most efficiently and to pay employees in
relation to the amount of work they produce as an
incentive for optimal productivity.
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Scientific management's critics note that its one-size-
fits-all approach often falls short. It also fails to
recognize that workers are motivated by things other
than money.
 Gilbreths Motion study
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Husband and wife team made their contribution to the
scientific management movement.
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They collaborated on fatigue and motion studies and focus on
ways of promoting the individual’s welfare.
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To them the ultimate aim of scientific management was to help
workers reach their full potential as human being.
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Contribution:
–fatigue and motion study
–Individual worker’s welfare
–Raise worker’s morale
 Classical theory
Administrative Management
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Focused on the overall management of
organization.
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Concerned with developing a set of
management principles which managers can
apply as they perform the task of planning,
organizing, commanding, coordinating and
controlling.
 Neo-classical theory
What is Human Relations Theory
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Human relations theory, also known as behavioral management theory,
focuses more on the individuals in a workplace than the rules, procedures
and processes.
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Instead of directives coming directly from management, a human relations
theory provides communication between employees and managers, allowing
them to interact with one another to help make decisions.
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Instead of giving workers quotas and requiring certain procedures, workers
are exposed to motivational and emotional tactics to get them to increase
productivity.
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The focus of this style is creating fulfilled, productive workers and helping
workers invest in a company.
Modern Management
 Scientific Management Theory
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Management approach, formulated by Taylor
and others between 1890 and 1930 that sought
to determine scientifically the best method for
performing any task and for selecting, training
and motivating workers.
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The theory said that the only way to expand
productivity was to raise the efficiency of
workers.
 Scientific Management
The fundamental principles that Taylor saw underlying the
scientific approach to management may be summarized as
follows:

1. Replace rule-of-thumb work methods with methods

based on a scientific study of the tasks.

2. Scientifically select, train, and develop each worker

rather than passively leaving them to train themselves.

3. Cooperate with the workers to ensure that the

scientifically developed methods are being followed.
 4. Divide work nearly equally between managers and
workers, so that the managers apply scientific management
principles to planning the work and the workers actually perform
the tasks.
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Taylor concentrated more on productivity and productivity
based wages.
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He stressed on time and motion study and other techniques for
measuring work.
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Apart from this, in Taylor’s work, there also runs a strongly
humanistic theme.
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He had an idealist’s notion that the interests of workers,
managers and owners should be harmonized.
 4 Important Components of a
Management Development Programme
1. Ascertaining development needs:

These needs call for an evaluation of the future growth.

This will include the expansion policies of the organisation as
well as the competitive situation the organisation is in, as far as
the managerial techniques are concerned.

2. An appraisal of present management talent:

This would include a complete and comprehensive file on

each manager with his talents, his potential for growth. An
objective analysis of his personal traits is also made.
3. Planning of individual development programmes:
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Individual attention is paid and each development programme
is tailor made to meet the needs of different individuals, keeping
in view their differences in their attitudes and behaviour and in
their physical, emotional and intellectual qualities.
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In general, some comprehensive development programmes are
prepared in the form of concentrated brief courses and these
courses may be in the field of human relations, creative thinking,
time and motion studies, memory training decision making,
leadership development etc.
4. Evaluation of development programmes:

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The evaluation of the effects of these training programmes is
an attempt to obtain feedback on the effects of the training
programme and to assess the value of the training in the light of
this feedback. This evaluation is helpful because:

(i) It discloses the relevance of the programmes to an

organisation's needs.

(ii) It reveals whether the programmes have contributed

to the effectiveness of an organisation.

(iii) It ascertains whether the programmes be continued,

modified or placed.
 Advanced Management Program in the
Philippines
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The significant event transpired when a management
convention of the Advance Management Program (AMP) in the
far east was convened in August 1950 in the Philippines.
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This program became possible when some Filipinos business
managers attended AMP at Harvard. The Filipinos who attended
the various sessions of the program realize the program was
jointly sponsored by Ateneo De Manila, De La Salle, and the
University of the Philippines. A management institution was
establish in the country whose objective is to develop the
managerial skills of the Filipino entrepreneur as well as his Asian
brothers.
 References:
–Malu Chandra

–Zohra Rubab

–Internet

–Management websites