CHAPTER 1

Nature & Concept of

MANAGEMENT
What is Management?
- a distinct process of planning, organizing,
staffing, directing, and controlling
(POSDICON), performed to determine and
accomplish stated objectives by the use of
human being and other business resources.

6 M’s (Basic Resources)

- Men - Machines
- Money - Methods
- Materials - Market
 Management

• Functions
* Planning
* Organizing
* Staffing
* Directing
* Controlling
 Universally Accepted Functions of
Management

•Planning- formulation of objectives, programs,

policies, procedures, rules & regulations in
order to achieve the goals of the business.

•Organizing-the grouping together of people,

establishing relationship among them to attain
the organizational goals & objectives through
its resources.

•Staffing – maintaining workforce of the

organization.
 Universally Accepted Functions of
Management

•Directing- managing & leading the

organization

•Controlling-monitoring the activities of

the organization to assure conformity
to plans.
 Management
Art:
- It is the result of the accomplishment of
objectives through the use of human efforts.
- It requires skill and careful study in the mgt. of any
endeavour.

Science
- A systematic body of knowledge
- It gathers & analyzes facts and formulates general
laws/principles from facts
 Management

•4 School of thoughts or Theories

1. The Classical or Traditional

2. The Human Relations
3. The Management Science or
Quantitative School
4. Modern Management
ADMINISTRATIVE MANAGEMENT

The administrative management

approach emphasized the perspective of
senior managers within the organization.
It also argues that management is a
profession and could be taught
(Bateman & Snell, 2008).
HENRY FAYOL

Is a French mining engineer. He also

known as the Father of Modern
Management. He published a book
summarizing his management
experiences wherein he identified 5
(five) management functions: planning,
organizing, commanding, coordinating
and controlling. He also developed 14
principles of management.
 Management

• 4 School of thoughts or Theories

1. The Classical or Traditional

2. The Human Relations
3. The Management Science or Quantitative School
4. Modern Management
DIVISION OF WORK

Divide work into specialized tasks and

assign responsibilities to specific
individuals.
AUTHORITY AND RESPONSIBILITY

Delegate authority along with

responsibility.
DISCIPLINE

Make expectations clear and punish

violations.
UNITY OF COMMAND

Each employee should be assigned to

only one supervisor.
UNITY OF DIRECTION

Employee’s effort should be focused on

achieving organizational objectives.
SUBORDINATION OF INDIVIDUAL

Interest to the general interest the

general interest must predominate.
REMUNERATION

Systematically rewards efforts that

support the organization’s direction.
CENTRALIZATION

Determines the relative importance of

superior and subordinates roles.
SCALAR CHAIN

Keep communication within the chain of

command.
ORDER

Order jobs and material so they support

the organization’s direction.
EQUITY

Fair discipline and order enhance

employee commitment.
STABILITY OF STAFF

Promote employee loyalty and longevity.

INITIATIVE

Encourage employees to act on their

own in support of the organization’s
direction.
ESPIRIT DE CORPS

Promote a unity of interest between

employees and management
 Scientific Management

•Frederick Taylor

- author of the book entitled “Principle

of Scientific Management”

- father of time study

 Scientific Management
• Taylor’s 4 Principles
- Develop a science for each element of a
man’s work, to replace the old rule – of – thumb
method.
- Scientifically select and train the worker.
- Heartily Cooperate with the men to ensure
that all the work is in accordance with the
principles of the science develop for the work.
- Divide the work and the responsibility
equally between management and the worker.
The Gilbreths & Motion Study

-Frank and Lilian Gilbreths emphasized

the ideal motions required to perform a
job in an optional fashion.

-Gilbreths developed the concept of

therblig (gilbreth spelled backward-
transposition of H & T); therblig - an
elemental hand or arm motion.
Human Relations School – Elton Mayo

It emphasizes the importance of human

element in the workplace.

Hawthorne Studies – illumination factor

and productivity

It put too much emphasis on the human

aspect in the organization.
 Management Science or Quantitative School
of thought

The use of quantitative techniques and

methods in decision making.

Quantitative tools: Waiting line/queuing

theory, linear programming, program
evaluation review technique (PERT),
critical path method (CPM), Monte Carlo
method, decision theory, simulation
theory, probability theory etc.
 Modern Management

Levels of Modern Management:

1. Top management
2. Middle management
3. Supervisory management
Advance Management Program in the Philippines

• Dr. Lilian Gilbreth

• - a well – known authority on scientific management and
human relations.
• - was organized in September 1953, Association of
Management and Industrial Engineers(AMIEP)

• Some objectives
• - to give professional assistance to practitioners
and students of management and industrial
engineering;
Advance Management Program in the Philippines

* Some objectives
• - to introduce the concept Taylor’s
scientific management;
• - to develop continuously study and
research in the field of management
and engineers; and
• - to install professionalism among its
members.