LESSON 6:

MANAGING THE ENTERPRISE

Presented by: Group 1

Overview
01 What is Management?

02 List of the function in Management

• Summarize the Basic Roles of a Manager
• Enumerate the Guides to becoming an Effective and Successful Manager

03 Theories of Management
What is Management?

Management is the accomplishment of goals

through the collection of people together and
using available resources efficiently and
effectively. Management is also viewed as
human action, including design, facilitating the
production of useful outcomes from a system.
This thus serves as a pre-requisite to also
manage other people
 BASIC FUNCTIONS OF MANAGEMENT
1. Establish goals of the enterprise and develop
plans to attain goals.

2. Organize people and other resources to

achieve goals.
3. Lead and motivate people towards the goals of
the enterprise.

4. Maintain sufficient control system to ensure

that the enterprise is moving well towards its
goals.
The Role of Management
The main role of managers is to develop and
carry out the management process to meet the
needs and constraints in the internal and
external organizational environment. This
process includes the four key functional areas of
the organization such as planning, organizing,
leading, and controlling
Function of Management
• Planning
• Organizing
• Leading
• Controlling
Function of Management:
Planning
Organizational goals are set, and a plan of action is
developed to achieve them. Managers make
strategic decisions to guide the organization toward
these objectives. During the planning stage,
managers typically conduct a thorough analysis of
the organization's current situation to determine
which resources are available to help accomplish the
objectives.
.
 Function of Management:
Planning
THREE APPROACHES TO PLANNING:
1.STRATEGIC PLANNING - which is executed by an
organization’s top management creating goals for the
entire organization
2.TACTICAL PLANNING - which is the shorter version of
planning which takes a year or less to accomplish.
3.OPERATIONAL PLANNING - which is the tactical version
of achieving a strategic plan and goals creating a
timeframe for the operation of the strategic goal
 Function of Management:
Organizing
This involves allocating resources and assigning tasks
to team members to accomplish the goals set during
the planning stage. In the organizing phase,
managers often collaborate with various departments
to foster a productive work environment, taking into
account employees’ motivation and abilities to ensure
roles are appropriately assigned.
 Function of Management:
Leading
This process centers on managing people by
motivating and influencing their behavior to achieve
the organization’s objectives. It involves building
positive relationships with team members and
offering encouragement to inspire them toward
success.
 Function of Management:
Leading
LEADERSHIP STYLES:

1.DIRECTING - wherein the manager is leading with just a little feedback or input from
the employee

2.COACHING - wherein the manager and employee work cooperatively, and build trust
with team members making the manager more receptive to input from the employees

3.SUPPORTING - wherein the manager focuses more on relationship-building because

the employees have already fully developed skills while sometimes the performance of
the employees are still inconsistent;

4.DELEGATING - wherein the leader mi minimally guides his or her employees and is
more concerned with the project’s vision rather than the day-to-day operations.
 Function of Management:
Controlling
This stage focuses on leading people by motivating
and guiding their actions to meet the organization’s
goals. It includes fostering strong relationships with
team members and providing support to encourage
their best performance.
Factors to be a Successful-
Effective Manager
01 Lead your employees efficiently. 06 Prioritize time management.

Gain professional and leading

experience through volunteering 07 Be a reliable manager.
02 and asking for help to manage and
produce events for an organization.
08 Do not be afraid in delegating tasks
to your employees.
Learn to communicate with your
03 team by listening to them.
09 Be an inspiration to your team.
Gain knowledge through project
04 management, entrepreneurship,
ethics, or human resource
management. 10 Respect your employees.

05 Be organized.
 MANAGEMENT BY OBJECTIVES
This uses the top company goals in determining employee objectives
and allowing everyone in the company to see their accomplishments

Management by objectives (MBO) is a process that helps employees

clearly understand their roles and responsibilities in the workplace,
making it evident what level of performance is expected from them.
This clarity helps prevent job mismatches and reduces confusion.
Additionally, MBO encourages effective communication among
employees, contributing to a positive and productive work
environment.
Theories of Management
• Scientific Management of Taylor

• Hawthorne Studies of Elton Mayo

• Theory of X and Theory of Y

• Hierarchy of Needs by Maslow

• Theory of Herzberg

• Theory of Z
 Scientific Management of
Taylor
Scientific management is a management theory
focused on evaluating and streamlining workflow
processes to increase labor efficiency. Also known
as Taylorism, the Taylor system, or the Classical
Perspective, it was developed by Frederick Winslow
Taylor.
Taylor believed that relying on tradition should be
replaced by processes based on careful research
and analysis of individual jobs. The core ideas of
this theory involve using systematic methods to
improve productivity and implementing these
methods in the workplace.
 Theories of Management:
Scientific Management of Taylor
Taylor’s scientific methods are set out under 4 principles
which are as follows:

1. The ‘gathering in’ shows the guidelines on how to do

each job as it is also developed into rules.

2. The ‘scientifically selecting’ is the process of selecting

the right employees for the activity and skill fit for them.

3. The ‘joint gathered in’ and ‘scientifically selected’

ensures that the person is best suited for the job as it is
also utilized by the scientific method.

4. The ‘expansion of the size of the management’ through

the process of observing, recording, and planning the work
function.
 Hawthorne Studies of Elton
Mayo
The Hawthorne studies, led by Elton Mayo, aimed to
highlight the importance of social and psychological
factors in the workplace and their impact on
management strategies. These studies
demonstrated that employees responded more
positively to social influences-such as teamwork
and managerial attention-than to financial
incentives alone. The findings also revealed that
while financial rewards are important, social factors
play an equally significant role in driving worker
productivity.
 Theory of X & Y

Assumptions of Theory X Assumptions of Theory Y

This perspective takes a negative view This more optimistic viewpoint suggests
of employees, assuming that the that employees can find their work
average worker dislikes their job and enjoyable and natural, rather than
something they are forced to do. With
will try to avoid it whenever possible. opportunities for self-direction and self-
As a result, management must use control, employees can be highly
persuasion, force, or threats to ensure committed and productive, and their
that organizational objectives are met. loyalty to the organization grows when
their jobs are fulfilling and rewarding.
 Hierarchy of Needs by Maslow
1. Physiological Needs – this includes the basic needs of a person such as
air, water, food, clothes, and shelter, the basic amenities for life.
2. Safety Needs – These include job security, financial security, protection
from animals, family security, and health security which are the physical,
environmental, and emotional safety and protection.
3. Social Needs – this includes the need for love, affection, care,
belongingness, and friendship
4. Esteem Needs – this includes the internal esteem needs such as self-
respect, confidence, competence, achievement, and freedom while external
esteem needs are recognition, power, status, attention, and admiration.
5. Self-actualization Needs - this is the urge to become what you are
capable of or become the potential in you. This tackles the need for growth,
self-contentment, knowledge, service, creativity, and being aesthetic.
 Theory of Herzberg
This is also called Motivation-Hygiene Theory or the
dual-factor theory which was suggested by Frederick
Herzberg. This theory claims that the good and bad
experiences function on the same plane, showing that
both satisfaction and dissatisfaction are not total
opposites.
Theory of Herzberg
 Theory of Z
This theory, invented by William Ouchie, promotes
stable employment, high productivity, and high
morality and employee satisfaction suggesting that
the loyalty of employees is increased through the act
of offering them a job that focuses on their well-
being. This theory assumes that the employees have
a desire of entering into partnerships with their
employer and colleagues, giving them a form of a
safe working environment and possible development
and training.
 Business Risk
This refers to the factors that threaten the company’s
ability in achieving its financial goals. This is an
indication that a company’s plans may not turn out as
originally planned, meeting its target, or achieving its
goals.
How to Identify Business Risks
1. Identify the sources or triggers that can cause a problem, may
it be internal or external.
2. Start doing something for potential problems and do not wait
for them to become actual problems.

3. Involve employees in identifying risks for it is not the sole

responsibility of the managers.

4. Prepare a list of solutions or steps to address the business

risks.
5. Detect patterns that may threaten the company by keeping a
record of such
 Types of Risks in Business
1) Strategic risk which needs to be prevented through
implementing real-time feedback from the customers.
2) Compliance risk which comes from instances wherein
companies have to follow new rules set by the government.

3) Financial risk refers to the capability of the company to offer

installment payments for its customers and all other factors
concerning the financial health of the company.
4) Operational risk refers the threats within the system or
processes of the business.
Causes of Business Risks

• NATURAL CAUSE
• HUMAN CAUSE
• ECONOMIC CAUSE
HOW TO MANAGE BUSINESS RISKS
• To avoid the risk when
possible and think of
alternatives not to face
the risk.
• To Prevent the risk by
checking up on other
external factors and doing
rounds of monitoring to
such and Contain the risk
while putting up safety
nets.
CONTINUATION OF LESSON
6:
MANAGING ENTERPRISE
HOW TO MANAGE BUSINESS RISKS
►These and many more
can made more can made
possible through good and
just management.
► Without efficient and
effective management, a
business organization
cannot survive.
PETER DRUCKER
►a world-class management consultant.
►He said that the first function of a
business enterprise is economic
performance.
►This is measured in terms of profit. Such
economic success means development
and growth for the enterprise. Without
profit a business organization cannot
sustain its existence.
 MANAGEMENT DEFINED
►Joseph Massie -author of Essentials of Management.

- he defines management as a process by which a

cooperative group directs action towards common goals.

►For economist point of view :.

Management is one of the factors of production, together
with land, labor and capital.
►By sociologist point of view :
Management is a class and status system which requires an
elite of intelligence and education.
Robert Hughes
• Author of Business Management as the process of
coordinating the resources of the organization in
order to achieve primary goals.
• MANAGEMENT is both an art and science
• Is systematic and uses scientific methods of
solving business problems.
PRODUCTION RESOURCES
►Material Resources
►Financial Resources
► Human Resources
► Informational Resources
Function of Management

Technical Skills
Conceptual Skills
Interpersonal Skills
Diagnostic Skills
Analytic Skills
 TECHNICAL SKILLS
►Sets of abilities or knowledge used to
perform practical tasks in the areas of
science, the arts, technology, engineering,
and math.
►Technical skills typically require the use of
certain tools and the technologies required
to use those tools.
 CONCEPTUAL SKILLS
►It include the ability to view the
organization as a whole, understand how
the various parts are interdependent, and
assess how the organization relates to its
external environment.
►These skills allow managers to evaluate
situations and develop alternative courses
of action.
 CONCEPTUAL SKILLS
►It include the ability to view the
organization as a whole, understand how
the various parts are interdependent, and
assess how the organization relates to its
external environment.
►These skills allow managers to evaluate
situations and develop alternative courses
of action.
 INTERPERSONAL SKILLS
►Interpersonal skills are the behaviors and
tactics a person uses to interact with
others effectively.
►In the business world, the term refers to
an employee's ability to work well with
others.
► Interpersonal skills range from
communication and listening to attitude
and deportment.
 DIAGNOSTIC SKILLS
►Refer to an individual's ability to identify
a particular problem and define it.
►These skills are acquired through formal
training, practice, and experimentation.
 ANALYTIC SKILLS
►Analytical skills are a wide-ranging set of
professional qualities that include the
ability to think critically, analyze data,
make difficult decisions, and solve complex
problems.
►These important skill sets all involve
taking in new information and mentally
processing it in a productive manner
Mc Gregor Theory X and Y
 Contemporary Theory

Theory Z. This is the best

combination of the features of
Japanese enterprise and
American firms
 Thank You!
Presented by : Group 1 (2RG1)
Domingo,Francesca Elena ( Leader)
Abad, Miguel
Aguirre, Ken
Agustin, Wilfredo
Baez, Jhiro
Bautista, Gerald
Borromeo, Marc
Cabrera, JM
Caparas, Shan
Dumlao, Israel
Eugenio, Mark Lester
Eusebio, Raniel