UNIT 1: UNDERSTANDING THE

NATURE AND CONCEPT OF

MANAGEMENT
INTRODUCTION:
There is a little story about four people named Everybody,
Somebody, Anybody, and Nobody. There was an important
job to do, and Everybody was sure that Somebody would do
it. Anybody could have done it, but Nobody did it. Somebody
got angry about that because it was Everybody’s job.
Everybody thought that Anybody could do it, but Nobody
realized that Everybody would not do it. It ended up that
Everybody blamed Somebody when Nobody did what
Anybody could have done.
What do you think is the root of the problem?
INTRODUCTION:

People's tendency to assume, procrastinate, wait for

directives, and rely on others often leads to failure in
achieving the goal of an organization. The fact remains that
any organization's success depends on its people, as it considers
to be the company's greatest asset. The challenging world of
management begins with its workforce.
As we all experience now, we live in a crucial time where the
application of best management practices should take place
because this will be our deciding factor in building for our better
future.
INTRODUCTION:

We can say that management practice is fundamental for

all to know because everybody is under a management
structure. Starting from the basic unit of society,
which is family, there is management. In the school
where you are attending, there is also management.
Even to future employment, you will be under
supervision. So no one can escape from it. The
universe itself, all living creatures, and human life are
under the Management of God.
INTRODUCTION:

In unit 1, we will learn the Nature and Concepts of Management,

its definition, theories, and types. We will discuss why
management is considered an Art or Science and its relation to
the five essential functions. The evolution of management
theories tackles for us to apply it in solving simple business
cases. Lastly, we will classify the types of managers and their
role in the success of the organization. We need to know the
fundamental concept of management because it will serve as our
foundation for learning the five pillars and different factors that
make management work effectively.
Lesson 1: Definitions of Management

Before we lay out the definitions of

management, let us first learn its etymology.
Management comes from the Italian world
maggiore, which means "to handle (tools or
equipment)." Maneggiare derives from the
Latin word manus, which means "hand" and
agere, which is "to act."
Lesson 1: Definitions of Management
• The simplest definition of management gives by Mary Parker Follet (1868-1933),
an American social worker, management consultant, and philosopher who is known
as the "Mother of Modern Management." According to Follet, Management is "the
art of getting things done through people." However, most critics find this definition
too constricted, as they believe management has a broader scope about our daily
life.
• Another definition of management comes from Henri Fayol (1841-1925), with
whom Fayolism derives. He defines management as "to manage is to forecast and
plan, organize, command, coordinate, and control.” Fayol focuses on the leaders,
managers, or the chief executives of the organization and works downward to its
subordinates. He believes that managers must learn how to analyze deviations and
make necessary adjustments to develop a much feasible process. Fayol considers
being the "Father of Principles of Management."
Lesson 1: Definitions of Management
• One of the pillars of management during the 19th century is Frederick Taylor
(1856-1915), who is known as the "Father of Scientific Management" and the
founder of "Taylorism" he defines management as "an art of knowing what to do
when to do and see that it does in the best and cheapest way." Taylorism
introduced the scientific method of enhancing the productivity of labor and
eliminates wastages.
• The modern definition of management comes from Peter Ferdinand Drucker
(1909-2005). He is a management consultant, educator, and author of about 39
books on management. According to Drucker, Management is “a multi-purpose
organ that manages the business and manages managers and manages workers
and work." Drucker introduced the concept of Knowledge Worker, capitalizing on
the knowledge-based workers as thinkers in an organization. He also introduced
decentralization and simplification, outsourcing, and the use of management by
objectives.
Lesson 2: Management: Arts or Science?
• Based on management's nature, there is a debatable issue
of whether management is considered an art or science.
Since the management concept is universal and very old, its
dynamism and scope complement it is both a Science and
an Art.
• Merriam-Webster defines science as "knowledge about or
study of the natural world based on facts learned through
experiments and observation." At the same time, Arts is “skill
acquired by experience, study, or observation.”
Lesson 2: Management: Arts or Science?
• According to Today’s Concept of Organizational Management –
Management is considered a Science in the sense that management's
scientific aspects emphasize during the turn of the 20th century. The
scientific nature of management reflects that it bases on a more or less
codified body of knowledge consisting of theories and principles subject to
study and further experimentation. As a result, the number of views and
models used then and now bases on research, data gathering, and analysis.
On the other hand, management considers art as it deals with human
elements. The personalized application of skills and talents regarding
decision making, the interpersonal relationship among the employees, and
the use of creativity and application of various principles to achieve desired
results attribute management as an Art.
Lesson 2: Management: Arts or Science?
• Management is both science and art. It considers science
because managers need facts and information based on
gathered data to develop a sound solution. It feels art
because managers need specific skills that are innate in a
manager. Science deals with knowledge, while art deals with
the application of knowledge through the use of skills.
• Though there has no perfect formula for being a successful
manager, one must still acquire the knowledge of science
and the art of applying it in running an organization.
Evolution of Management Theories

• Organization and management have existed

thousands of years ago. During ancient
times, the earliest forms of civilization were
able to build structures, shelters, bridges, and
tools by a group of people out of available
resources and led by good management.
Evolution of Management Theories

• Organization and management have existed

thousands of years ago. During ancient
times, the earliest forms of civilization were
able to build structures, shelters, bridges, and
tools by a group of people out of available
resources and led by good management.
There are five management theories for the Organization:

1. Scientific Management – is defined as the use of the scientific method to determine the
"one best way" for a job to do. The most significant contributor in this field was Frederick W.
Taylor (1856-1915), who is known as the “Father of Scientific Management.” Using his
principles of Scientific Management, Taylor defined the "one best way" for doing each job.
He made a scientific study of workers, machines, and the workplace by using
standardization of parts, uniformity of work structure, and the assembly line.
• The Gilbreth’s, Frank (1868-1924), and Lillian (1878-1972), one of the great husband and
wife tandem of science and engineering, were inspired by Taylor's work proceeded to study
and develop their methods of scientific management. They devised a classification scheme
to label 17 basic hand motions called THERBLIGS (derived from Gilbreth spelled backward)
to eliminate wasteful actions, thereby increasing productivity.
• To date, scientific management continues to be the foundation and basis for continuous
improvement in productivity and efficiency regarding quality and cost.
There are five management theories for the Organization:

2. Administrative Management Theory – The theorists who emerged in this group focused more on the entire
organization by developing general theories of what managers do and what comprised well management practice.
• One of the most famous personalities during this era was Henri Fayol (1841-1925). Fayol emphasized how
different a manager’s role was from other usual business functions. He stated the 14 principles of management as
follows:

1. Division of work
2. Authority
3. Discipline
4. Unity of command
5. Unity of direction
6. Subordination of individual interest to a group of interest
7. Remuneration
8. Centralization
9. Scalar Chain
10. Order
11. Equity
12. Stability
13. Initiative
14. Esprit de Corps
There are five management theories for the Organization:

• Another proponent of General Administrative Theory is Max Weber

(1864-1920), a German Sociologist and considered the "Father of
Bureaucracy." His ideal form of an organization focused on what is
known as a bureaucracy who emphasized the division of labor, clearly
defined hierarchy, career advancement based on merit, rules, and
decisions based on written format and impersonal relationships.
• To date, many prominent organizations are still being used by the
General Administrative Theory as the basis for running their respective
companies and employing talented professionals. It is also a suitable
mechanism for running the business effectively and efficiently.
There are five management theories for the Organization:

3. Behavioral Management Theory – often called the human relations movement.

The behavioral management theory focuses on the human aspect of work. During
the 20th century, management principles could not address many management
situations, specifically those deals with human behavior. Theorists then believed
that a better understanding of human behavior while at work improved productivity.
Employees are not machines but are considered valuable assets in the
organization.
• Elton Mayo (1880-1949), a Harvard researcher, followed Hawthorne studies by
some of his colleagues on the productivity of the employees working at the
Western Electric Company in Chicago from 1924 to 1932. The first experiment
tested the relationship of lighting levels to worker productivity. The result showed
that lighting does not affect the increase or decrease of effort an employee exerts.
Whether there is adequate lighting condition or not, employees' productivity
remains the same as they know that they observe.
There are five management theories for the Organization:

• A few years later, Mayo and his team conducted another experiment, and this
time they supervised five groups of women in a bank wiring room. They gave these
women special attention and privileges such as take rest intervals, leave the
workplace without asking permission and give incentives such as free lunches and
day-offs on special occasions. This experiment notably increased production rates.
• Mayo concluded out of this experiment that change of lighting does not have
anything to do with productivity, but rather the supervisory tasks are given to these
five women empowered them to work harder. As pioneers of the experiment, they
became primary supervisors as they set an example and influenced the employees'
work attitude under their supervision. This experiment became known as the
Hawthorne effect. It stresses the human relations and social needs of workers as
crucial aspects of management.
There are five management theories for the Organization:

Abraham Maslow (1908-1970), an American psychologist, created Maslow's Hierarchy of Needs. It is a

theory based on his assumption of human needs:
● Human needs are never completely satisfied.
● Human behavior is purposeful and is motivated by the need for satisfaction.
● Needs can be classified according to hierarchical structures of importance from the lowest to highest.

Maslow’s hierarchy of needs theory helped managers to understand, visualize, and create employee
motivation.
● Physiological needs. It pertains to all physical needs necessary for maintaining human well-being, such
as food, clothing, and shelter.
● Safety needs. These requirements include the need for basic security, stability, and protection. Once
these needs are satisfied, they can accomplish more.
● Belonging and love need. These needs follow after the physical needs have been satisfied. The need for
friendship, family, belongingness became a primary motivator.
● Esteem needs. Self-esteem, confidence, achievement, respect, fame, and glory.
● Self-actualization needs. After all the conditions have been satisfied, an individual feels the need to find
himself.
 Figure 1. Maslow’s Hierarchy of Needs

There are five management theories for the Organization:

Self
Actualization

Esteem

Social Belongingness

Safety and Security

Physiological
There are five management theories for the Organization:

4. Management Science Theory – according to the Principles of

Management Notes, Management Science Theory is known as
the quantitative approach to management. It uses quantitative
techniques in decision making. This approach includes
applications of statistics, optimization models, information
models, and computer simulations. The Management Science
theory originated during World War II as mathematical and
statistical solutions to military problems develop for wartime use.
Management Science Theory contributes to managerial decision
making, particularly in planning and controlling.
There are five management theories for the Organization:

5. Organizational Environment Theory – by the late 1960s, theorists recognized

that human factor alone considers achieving organizational effectiveness. They
understood that an organization is a part of a broader environment outside its
boundaries and is affected by social, technical, and economic factors, which form a
systems perspective based on physical sciences.
There are two basic types of systems, the Open and Closed. A closed system has
no interaction with its environment while an Open system interacts with its
environment.
Knowing and using these systems approach will help managers visualize the
organization as a whole and help coordinate the work activities. Realizing that
decisions, actions, and plans taken; will affect the entire organization.
Manager’s Job: Functions, Roles, and Skills
A “Manager" is an individual in charge of a particular group of tasks or
a company's specific subset. A manager often has a staff of people
who report to him. (Business Dictionary.com)
• Manager's job is to lead the staff he is heading towards the
achievement of a common goal. He makes sure that his department
carries out the organization's goals based on the organization's plans.
Although a manager's job is so hard to describe, and there is no
specific job description that would fit for a particular managerial
position. Different industries have different job descriptions of how
they envisioned their managers to be.
Functions of a Manager
There are five primary functions of a manager:

1. Planning – is the primary function of

management. It deals with plotting and jotting
down action plans and decisions in advance
to achieve the organization's pre-determined
goals. The manager plans the future course
of action, systematically thinking about ways
and means to accomplish the set goal.
Functions of a Manager
There are five primary functions of a manager:

2. Organizing – it is the process of bringing together

physical, financial, and human resources and
developing productive relationships amongst them to
achieve organizational goals. (Management Study
Guide)
• Managers must figure out the workforce needed to
get the tasks and the jobs do. Organizing involves
delegation and coordination among the staff.
Functions of a Manager
There are five primary functions of a manager:

3. Staffing – is the determination of personnel needs and

the selection, orientation, training, and continuing
evaluation of the individuals who hold the required
positions identified in the organizing process. (Today's
Concept of Organizational Management)
• The purpose of staffing is to put the right people on the
right job. It involves human resources planning,
recruitment, training and development, performance
appraisal, and promotion.
Functions of a Manager
There are five primary functions of a manager:

4. Leading – managers must supervise, lead, motivate, coach, train, guide,

and direct their subordinates to work efficiently and efficiently. Direction has
the following elements: (Management Study Guide)
● Supervision – implies overseeing the work of assistants by their
superiors. It is the act of watching and directing work and workers.
● Motivation – means inspiring, stimulating, or encouraging the
subordinates with zeal to work. Positive, malicious, monetary, non-monetary
incentives may use for this purpose.
● Leadership – may be defined as a process by which a manager guides
and influences subordinates' work in the desired direction.
● Communications – is the process of passing information, experience,
opinion, etc. from one person to another. It is a bridge of understanding.
Functions of a Manager
There are five primary functions of a manager:

5. Controlling – according to Koontz & O’Donell, “Controlling is

the measurement and correction of performance activities of
subordinates to make sure that the enterprise objectives and
plans desired to obtain them accomplish.
Controlling has the following steps:
a. Establishment of standard performance
b. Measurement of actual performance
c. Comparison of actual performance with the standards
d. Corrective action
Functions of a Manager
There are five primary functions of a manager:

Management Roles. One of the most

significant researches s to the role of a
manager in an organization comes from
Henry Mintzberg, a Canadian researcher.
He believes that a manager’s work is never
really done.
Functions of a Manager
There are five primary functions of a manager:

Mintzberg’s 10 Managerial Roles

Figure Head Performs ceremonial and symbolic duties such as greetings visitors, signing legal documents

Interpersonal Leader Direct and motivate subordinates, training, counseling and communicating with subordinates

Liaison Maintain information links both inside and outside the organization, use mail, phone calls, meetings

Recipient Seek and receive information links both inside and outside the organization, use mail, phone calls,
meetings
Informational Dissemination Forward information to other organization members; send memos and reports, and make phone calls.

Spokesperson Transmit information to outsiders through speeches, reports, and memos

Entrepreneur Initiate improvement projects, identify new ideas, delegate idea responsibility to others

Disturbance Handler Take corrective action during disputes or crises; resolve conflicts among subordinates, adapt to
environmental concerns.
Decisional Resource allocator Decide who gets resources, scheduling, budgeting, setting priorities.

Negotiator Represent department during negotiation of union contracts, sales, purchases, budgets; represent
department interest.
Functions of a Manager
There are five primary functions of a manager:

Management Skills. Most management books identify three

types of skills that are essential for a successful management
process:
■ Conceptual – a manager must have the knowledge or the
ability to see the "big picture" of any given situation to create
ideas and visualize plans for the future.
■ Technical – a manager must possess specific knowledge and
use different techniques to achieve what they want to achieve.
■ Human – this skill is to interpersonal relationships and the
ability to work well with other people.
REFLECTION/LEARNING INSIGHTS:

Someday you might become a leader. How are you going to lead others? To
become a good leader is to become a good follower. As a student, how can you be
a good follower? Everyone is under management. There will be consequences if
someone does not follow the rules. You might tell yourself, what if the persons I
depend on do not give me the things I deserve? You have to take only the good
stuff from them and take away the bad things that can harm you. That's how it is.
For now, you have to equip yourself with proper knowledge in management so that
it may serve as your shining armor in your future endeavor. The school is your
training ground in honing yourself to become a better individual. Do not take all
learning for granted. Not every student is allowed to attend college. I tell you this is
not going to be an easy road. Be patient enough to receive challenges. There
would come a time you will reap what you plant.