G O O D D A Y!

Nature
and
Concepts
of
Management

What is Management?
The verb manage comes from the
Italian maneggiare (to handle
especially a horse), which in turn
derives from the Latin manus (hand).
The French word mesnagement (later
mnagement) influenced the
development in meaning of the
English word management in the 17th
and 18th centuries.

 A process or form of work that

involves the guidance and direction of
a group of people toward a goal.
(Terry and Rue, 1982)
The process of Planning, organizing,
leading and controlling the efforts of
organization members and of using all
resources to achieve goals. (Stoner,
1993)

 The establishment of an
environment for group effort that
each individuals will contribute for
group objectives with the least
amount of such inputs as money,
time, effort, discomfort and
materials. (ODonnel and
Weihrich, 1980)

 The process of working with people

and other people to accomplish a goal
(Johnson and Stenson, 1978)
Coordinating and over-seeing the
work activities of others so that their
activities are completed efficiently and
effectively. (Robbins and Coulter,
2007)

Based on the definitions given,

management has emerged some features:
It is a systematic process
It utilizes resources efficiently
It gets things done through and with
others.
It achieves a stated goal

Based on the emerged features

of management, we can say
the it is a process by which a
manager of an organization
efficiently utilizes resources as
he/she works with others to
achieve a goal.

Management:
an Art or
Science?

Management as Science
Supported by the Scientific
Management Movement
pioneered by Frederick W. Taylor
and Frank and Lillian Gilbreth
There are ideal managerial
practices for certain situations

 If there are managerial

dilemmas, there is a rational
and objective way to determine
the correct course of action by
following general principles and
theories and also by creating
and testing hypotheses about
the action.

Management as an Art
Managers rely on the social
and political environment
surrounding the managerial
issue, using their own
knowledge of a situation, rather
than generic rules, to determine
a course of action.

 As viewed by Henry Mintzberg, managers

did not necessarily have routine behaviors
throughout their days, but instead used
their own social and political skills to solve
problems that arose throughout the course
of work.
It involves the proficiency in the practical
application of knowledge acquired through
experience and observation.

Managing as practice
is an art, the
organized body of
knowledge about
management is
science Flores, et.al,
2006

Basic
Concepts in
Management

EFFICIENT
The means of attaining
organizational goals through
using resources wisely to
produce a given output of
goods or services.
Doing things right

EFFECTIVE
It means to achieve results, to
make right decisions and
successfully carry them out so that
they achieve the organizations
goals.
Doing the right things

Are you a
Manager or a
Leader?

Managers

coordinate with others for work so that

organizational goals can be
accomplished
The job is not about personal
achievement, but its helping others to
do their works

Leaders

influence other people to work to

achieve certain goals.

Subject
Essence
Focus
Have

Manager

Leader

Stability

Change

Managing work Leading people

Subordinates

Followers

Horizon

Short-term

Long-term

Seeks

Objectives

Vision

Approach

Plans detail

Sets direction

Subject
Decision
Power
Appeal to
Energy
Dynamic
Persuasion

Manager

Leader

Makes
Formal
authority
Head
Control
Reactive
Tell

Facilitates
Personal charisma
Heart
Passion
Proactive
Sell

Subject
Style
Exchange
Likes
Wants
Risk
Rules

Manager

Leader

Transactional Transformational
Money for
Excitement for
work
work
Action
Striving
Results
Achievement
Minimizes
Takes
Makes
Breaks

Subject
Conflict
Direction
Truth
Concern
Credit
Blame

Manager
Avoids
Existing
roads
Establishes
Being right
Takes
Blames

Leader
Uses
New roads
Seeks
What is right
Gives
Takes

Managerial Levels
First/Front-line Managers
Lowest level of management.
Manages the work of non-managerial employees
who are typically involved with producing the
organizations products or servicing the customers.
They are people who have direct supervision over
the working force in office factory, sales field or
other workgroup or areas of activity.
They are often titled as supervisors, district
managers, department managers or office
managers.

 Middle Managers
Between the lowest and the top level of an
organization.
They are responsible for carrying out the
decisions made by top-level management.
They manage the work with the first-line
managers.
They are called as regional manager, project
leader or division manager.

 Top-Level Managers
They are responsible for making organization-wide
decisions and establishing plans and goals that affects
the entire organization.
Require an extensive knowledge of management roles
and skills.
They have to be very aware of external factors such as
markets.
Their decisions are generally of a long-term nature
Their decisions are made using analytic, directive,
conceptual and/or behavioral/participative processes
They are responsible for strategic decisions.
They have to analyze the plan and see that plan may be
effective in the future.

top
managers

Middle managers

First-line managers
Non-managerial employees

The
Managerial
Level
Pyramid

What do
Manager
s do?

Schemes
used to
describe
what
managers
should do or
expected to
be

Functions
Roles
Skills

Managerial
Functions

 Devised by Henry Fayol (Five

Functions of Management)
Fayols Functions of Management has
evolved (Robbins and Coulter; 2007)
and was organized into four (4)
The Four Functions of Management
are:
Planning
Organizing
Leading
Controlling

Managerial Functions
Planning Managers should define or set
goals, establish strategies for achieving the
goals and create plans to integrate and
coordinate activities.
Organizing Managers arrange and
structure work though identifying,
subdividing, grouping, assigning and
coordinating activities in order to
accomplish the created plan.

 Leading Managers works with and

through their people to achieve the desired
goal. They are they one to choose, train and
motivate people for their work.
Controlling - Managers should evaluate and
monitor work performance and take
necessary corrective action to ensure
whether things are going as planned.

Managerial
Roles

 Henry Mintzberg studied actual managers at

work to identify managers roles
He concluded that what managers should
do is by referring to the ten (10) different but
interrelated management roles which
specify their managerial behaviors.
Roles are divided into three (3) categories:
Interpersonal, Informational and Decisional

 Interpersonal Roles it involves people and

other duties that are symbolic in nature.
Figurehead They represent their units which
they are obliged to perform a number of routine
duties of a legal or social in nature.
Leader They initiate, motivate and coordinate
their subordinates to perform work.
Liaison They interact with persons in other units
and outside the unit. They maintain self
developed networks of outside contacts and
informers.

 Informational Roles it involves collecting,

receiving and disseminating information.
Monitor They seeks and receives internal and
external information.
Disseminator They transmit information
received from outsiders or from subordinates to
the members of the organization.
Spokesperson They represent and speak for
their units. They transmit information to
outsiders about the organizations plans,
policies, actions and results.

 Decisional Roles it involves in making the

right choice and decision.
Entrepreneur They identify opportunities and
development for the organization which initiates
change.
Problem Solver/Disturbance handler They identify
solutions and take corrective actions when the
organization faces streams of problems.
Resource Allocator They distribute funds,
personnel, materials and other resources wisely.
Negotiator they are involved or represent their
units in some negotiating activities.

Managerial
Skills

 Created by Robert L. Katz

According to him, managers need three
(3) essential skills for them to work
efficiently.
The Three (3) Essential Skills are:
Technical Skills
Human Skills
Conceptual Skills

 Technical Skills (Doing)

Skills that are job specific in nature since it
needs knowledge and techniques to proficiently
perform a task.
It involves knowledge in methods, processes,
procedures and techniques.
It also includes the understanding in the use of
the tools for a given task.
It is important for First-line managers since they
manage non-managerial employees who are
using the tools and techniques to produce the
organizations product or service.
Vocational and on-the-job training programs
develop this skill.

 Human Skills (Interacting)

Skills that deal with the ability to work well with other
people both individually and in a group.
It includes sensitivity to the needs and motivation of
people in an organization.
This skill is essential and equally important to all levels
of management.
Managers with good human skills are able to get to get
the best out of their people since they know how to
communicate, motivate, lead and inspire.
This skill can be effectively aided by a skilled instructor
through use of case problems coupled with impromptu
role playing.

 Conceptual Skills (Thinking)

Skills use to think and conceptualize about
abstract and complex situations.
Using these skills, managers look at the
organization as a whole, understand the
relationship among various subunits and
visualize how the organization fits into its
broader environment.
It is very important for the Top-level managers
Coaching of subordinates and job-trading can
help managers to develop this skill.

Significance of Managerial
Skills
Conceptual
Human
Technical
First-Line
Managers

Conceptual

Conceptual

Human
Human
Technical
Middle
Managers

Technical
Top Managers

Also, the American

Management Association
identified different
managerial skills based on
a survey of practicing
managers.

 Conceptual Skills
Ability to use information to solve problems
Identification of opportunities for innovation
Recognizing problem areas and
implementing solutions
Selecting critical information from masses of
data
Understanding of business uses of
technology
Understanding the organizations business
model

 Communication Skills
Ability to transform ideas into words
and actions
Credibility among colleagues, peers
and subordinates
Listening and asking questions
Presentation skill; orally or in written

 Effectiveness Skills
Contributing to the mission/objectives
Customer focus
Multi-tasking
Negotiating skills
Project management
Reviewing operation and implementing
improvements
Setting and maintaining performance
standards
Setting priorities for attention and activity
Time management

 Interpersonal Skills
Coaching and mentoring skills
Diversity skills: working with diverse
people and cultures
Networking within and outside the
organization
Working in teams; cooperation and
commitment

Areas of
Management

Functional Areas of Management

Human Resources Management

Operations Management
Marketing Management
Financial Management
Information and Communication
Technology Management

Human Resources
It deals with the formal system for the
management of people within an
organization. (Bateman and Snell, 2008)
The most important asset of all
organizations.
It performs the recruitment and dismissal of
employees.
It declares the salaries, wages and benefits
of personnel.

Operations
It includes the ff.:
Design of goods and services
Quality management
Process strategy
Locations strategies
Layout strategies
Human Resources
Supply chain management
Inventory management
Scheduling
Maintenance

Operations
It also include transaction
processing, crew scheduling,
communications and
dispatching and efficient use
of machines, space and
personnel.

Marketing
The area which is closest to customers.
Its activities relate to identifying customers
needs and interpret these back to the
enterprise for its business reaction.
It includes the ff.:
Product and Service Planning
Pricing
Distribution
Promotions
Market Research
Customer Service

Financial
The finance person is in charge of:
the investments of the stockholders
the use of funds in the operation
The distribution of income of the business
owners

The finance person is also known as Chief

Financial Officer.
It consist the management of the current
assets and liabilities.
The goal is profit maximization.

Information and
Communication Technology

The most intimidating area of management

due to its dizzying pace and scope of
influence.
Chief Technology Officer (CTO) is the one
who managed this area.
CTOs directly get in touch with the external
partners of an enterprise.
They are also tasked to integrate these
external information to the internal goals of
the organization.

Thank
You!