Nature and Concept of

Management
 What is
Management?

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Management
Can be defined as the
achievement of
organizational objectives
through people and other
resources.

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Functions of
Management

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Functions of Management
1. Decision Making
2. Planning
3. Organizing
4. Staffing
5. Communicating
6. Motivating
7. Leading
8. Controlling
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Various Types
of
Management
Theories
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 Management Theories

1. Scientific Theory
2. Administrative Theory
3. Bureaucratic Theory
4. Human Relations Theory
5. Systems Theory
6. X & Y Theory

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 1. Scientific Theory

Frederick W. Taylor

Broke the work process down

into the smallest possible
units, or sub-tasks, in an
effort to determine the most
efficient method.
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 This theory assets that
organizations should identify
the best way to do a job, train
workers to handle each
element in a pre-determined
manner and set up an equitable
system of rewards for improved
productivity.
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 Scientific Theory by Frederick
W. Taylor

Definition: Simplify tasks, divide

work equally, and use monetary
incentives.

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2. Administrative Theory

Henri Fayol

Also known as “Classical

Management Theory”. This theory
concludes that management should
interact with personnel in order to
control and plan production.
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Administrative Theory by Henri
Fayol

Definition: Upper management

commands and controls.

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3. Bureaucratic Theory

Max Weber

Built on principles outlined by

Frederick Taylor in his scientific
management theory. Like Taylor,
Weber advocated a system based
on standardized procedures and a
clear chain of command.
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Key elements of in Bureaucratic
Theory

1. Clearly defined roles

2. A hierarchy of authority
3. Standardized procedures
4. Meticulous record-keeping
5. Hiring employees only if they
meet the specific
qualifications for job

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 Beaucratic Theory by Max
Weber

Definition: A hierarchical
structure adhering to strict
rules.

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 4. Human Relations
Management Theory

Elton Mayo

It is a researched belief that

people desire to be part of a
supportive team that facilitates
development and growth.
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Therefore, if employees receive
special attention and are
encouraged to participate, they
perceive their work has
significance, and they are
motivated to be more
productive, resulting in high
quality work.
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 Human Relations Theory by
Elton Mayo

Definition: The promotion of

social interactions within an
organization.

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 5. Systems Theory

Ludwig Von Bertalanffy

This theory recognizes how

different systems affect a worker
and how a worker affects the
systems around them.
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 Systems theory is a broad
perspective that allows
managers to examine patterns
and events in the workplace.
This helps managers to
coordinate programs to work as
a collective whole for the overall
goal or mission of the
organization rather than for
isolated departments.
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Systems Theory by Ludwig Von
Bertalanffy

Definition: System-wide
coordination between every
department.

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 6. X & Y Theory

Douglas McGregor

Remains a cutting-edge
management model though
more than 50 years old.
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Theory X

• Managers tend to take a pessimistic

view of their people, and assume that
they are naturally unmotivated and
dislike work. As a result, they think
that team members need to be
prompted, rewarded or punished
constantly to make sure that they
complete their tasks
• Managers are more authoritarian and
actively intervene to get things done.

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Theory Y

• Managers have an optimistic, positive

opinion of their people, and they use a
decentralized, participative management
style. This encourages a more collaborative,
trust-based relationship between managers
and their team members.
• People have greater responsibility, and
managers encourage them to develop their
skills and suggest improvements. Appraisals
are regular but, unlike in Theory X
organizations, they are used to encourage
open communication rather than control
staff.

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 X & Y Theory by Douglas
McGregor

Definition: System-wide
coordination between every
department.

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Sources:
https://www.business.com/articles/management-theory-of-
douglas-mcgregor/
http://smallbusiness.chron.com/management-theories-
concepts-workplace-17693.html
https://www.mindtools.com/pages/article/newLDR_74.htm
Business Organization & Management by Robert G. Medina
DIRECTION: Write the advantages and
disadvantages of the following management
theories in a whole sheet of paper.
MANAGEMENT
ADVANTAGES DISADVANTAGES
THEORIES
Scientific Theory

Administrative Theory

Bureaucratic Theory

Human Relations Theory

Systems Theory

X & Y Theory
DIRECTION: Construct an essay answering
the question below in a ½ crosswise.
What is a
Manager?

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Manager

The one who plans,

organizes, leads, and
controls other individuals
in the process of pursuing
organizational goals.

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Manager
The one responsible for
accomplishing the
objectives of his particular
unit, which could be a
whole organization, a
particular department, or
a workgroup.
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Manager
The one responsible for
accomplishing the
objectives of his particular
unit, which could be a
whole organization, a
particular department, or
a workgroup.
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 Five Basic
Functions of a
Manager
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“A goal without
a plan is just a
wish.”
Antoine de Saint-Exupery

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Functions of a Manager
1. Planning

This step involves

mapping out exactly
how to achieve a
particular goal.

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 “Organizing is what
you do before you do
something, so that
when you do it, it is
not all mixed up.”
A. A. Milne

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Functions of a Manager
2. Organizing

After a plan is in place, a

manager needs to organize
the team and materials
according to the plan.

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Functions of a Manager
2. Organizing

Two Important Elements in

Organizing

1. Assigning work
2. Granting authority

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 Functions of a Manager
3. Staffing

After a manager discerns the

area's needs, one may decide to
his staffing by recruiting,
selecting, training, and
developing employees to achieve
their goals.

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Functions of a Manager
4. Leading

Leading involves motivating,

communicating, guiding, and
encouraging. It requires the
manager to coach, assist, and
problem solve with employees.

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 Functions of a Manager
5. Controlling
After the other elements are in
place, a manager's job is not
finished. One needs to
continuously check results against
goals and take any corrective
actions necessary to make sure
that the area's plans remain on
track.
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Roles of a
Manager

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 The manager is expected to lead
his unit or department in achieving
its objectives. A manager wears
many hats. Not only is a manager
a team leader, but he or she is
also a planner, organizer,
cheerleader, coach, problem
solver, and decision maker — all
rolled into one.
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 The Three Categories of
Managerial Roles
Interpersonal
• Involves human interaction
Roles

• Involves the sharing and

Informational
Roles analyzing of information

Decisional
• Involves decision making
Roles
Interpersonal Roles 1. Figurehead
Perform ceremonial and symbolic
duties, such as greeting visitors, and
signing legal documents.
2. Leader
Direct & motivate subordinates;
counsel and communicate with
subordinates.
3. Liaison
Maintain information links both inside
and outside organization via mail,
phone calls, and meetings.
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Informational Roles 1. Monitor
Seek and receive information; scan
periodicals and reports; maintain
personal contact with stakeholders.
2. Disseminator
Forward information to organization
members via memos, reports, and
phone calls.
3. Spokesperson
Transmit information to outsiders via
reports, memos, and phone calls.

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Decisional Roles
1. Entrepreneur
Indicate improvement projects;
identify new ideas and delegate idea
responsibility to others.
2. Disturbance Handler
Take corrective action during disputes
or crises; resolve conflicts among
subordinates; adapt to environments.

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Decisional Roles
3. Resource Allocator
Decide who gets resources; prepare
budgets; set schedules and
determine priorities.
4. Negotiator
Represent department during
negotiations of union contracts,
sales, purchases, and budgets.

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Management
Skills

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“Leaders aren’t
born, they are
made.”
-Anonymous
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The Three Management Skills
1. Technical Skills

• Refer to the abilities to use

special proficiencies or
expertise in performing
specific tasks. They refer to
the use of tools, techniques,
and specialized knowledge.
The Three Management Skills
2. Human Skills

• Refer to the abilities to work well in

cooperation with other persons;
whether they are subordinates, peers,
or superiors.
• A person with good human skills will
have a high degree of self-awareness
and a capacity for understanding or
empathizing with the feelings of
others.
The Three Management Skills
3. Conceptual Skills

• Refer to the ability of the manager to see the

organization as a whole and to solve problems
in ways that benefit the total system.
• The manager who possesses these skills is
expected to analyze and solve complex
problems.
• Identify problems and opportunities
• Gather and interpret relevant information
• Execute problem-solving decisions that
serve the organization’s purpose.