LESSON 2

AUGUST 07, 2021

THE JOB
TODAY YOUR TASK IS:
 To understand the meaning of management and
the evolution of management theories’
 To appreciate the importance of the application of
the GEMS cycle for the success and growth of
the business’
 To be aware of the critical role of a manager and
his/ her duties and responsibilities.
EVOLUTION OF MANAGEMENT THEORIES

 Management is the function that

directs and coordinates the efforts
of the people to accomplish goals
and objectives by using available
resources efficiently and effectively.
INDUSTRIAL REVOLUTION

 Beginning in the late 19th century

after the Industrial Revolution but
saw more definitive form in the 20th
century.
HISTORICAL ORDER OF THE INDUSTRIAL
EVOLUTION ACCORDING TO
WWW.MAGAZINE.CO.UK/IN-
BUSINESS/ADVICE/THE-EVOLUTION-OF
MANAGEMENT/
1910S -1940S: MANAGEMENT AS SCIENCE
 It was developed in the early 20th century and
focused on increasing productivity and efficiency
through standardization, division of labor,
centralization and hierarchy. A very ‘top down’
management with strict control over people and
processes dominated across industries.
1950S-1960S: FUNCTIONAL ORGANIZATIONS

 Due to growing and more complex organizations,

the 1950’s and 1960’s saw the emergence of
functional organizations and the Human Resource
(HR) movement. Managers began to understand
the human factor in production and productivity
and tools such as goal setting, performance
reviews and job descriptions were born.
1970S: STRATEGIC PLANNING
 The focus is from measuring function to resource
allocation and tools like Strategic Planning,
Growth Share Matrix and Swot (identification
and analysis nof the company’s strengths,
weaknesses, oppurtunities and threats) were used
to formalize strategic planning processes. After
several decades of the “best practice” and “one
size fits all” solutions, academics began to
develop contingency theories.
1980S: COMPETITIVE ADVANTAGE
 As the business grew increasingly competitive and
connected and with a blooming management
consultancy industry, Competitive advance became a
priority for organizations in the 1980’s. tools like Total
Quality Management(TQM), Six Sigma and Learn
management were used to measure processes and
improve productivity. Employees were more involved
by collecting data, but decisions were still made at the
top, and goals were used to manage people and
maintain control.
1990S: PROCESS OPTIMIZATION
 Benchmarking and business process
reengineering became popular in this year and by
the middle of the decade, 60% of the fortune 500
companies claime3d to have plans for or have
already initiated such projects. TQM, Six Sigma
and Lean remained popular and a more holistic
organization-wide approach and strategy
implementation took the stage with tools such as
Strategy maps and Balance scorecards.
2000S: BIG DATA
 Largely driven by the consulting industry under
the banner of Big Data, organization s in the
2000’s started to focus on using technology for
growth and value creation. It shows that
traditional data traditional data processing
applications are inadequate. Accuracy in big data
may lead to more confident decision-making .
And better decisions can mean greater operational
efficiency, cost-reductions and reduced risk.
PRINCIPLES OF MANAGEMENT
 Henri Fayol (1841-1925)-
 He developed the fundamental notion of principles of
management. His 14 Principle of Management are the
following:
FAYOL’S 14 PRINCIPLES OF MANAGEMENT
 Division to work  The degree of
 Authority and centralization
responsibility  Scalar chain
 Discipline  Order
 Unity of command  Equity
 Unity of direction  Stability of tenure of
 Subordination of personnel
individual interest  Initiative
 Remuneration  Espirit de corps
DIVISION TO WORK

 According to this principle the whole work is

divided into small tasks. By separating a small
part of work; the workers speed and accuracy in
its performance increases. This principle is
applicable to both technical as well as the
managerial work. This can be made useful in case
of project works too. Planning is to decide before
what to do.
AUTHORITY AND RESPONSIBILITY

 This refers to the issue of commands followed by

responsibility for their consequences. Authority
means the right of a superior to give enhanced order
to his subordinates; responsibility means obligation
for performance. This principle suggest that there
must be parity between authority and responsibility.
They are co-existent and they go together, and are
two sides of the same coin, and the authority must
be commensurate with responsibility.
DISCIPLINE

 It refers to obedience, proper conduct in relation

to others, respect to authority, etc. it is essential
for the smooth functioning of all organizations.
This will also help shape the culture inside the
organization. Discipline is absolutely necessary
for enterprises
UNITY OF COMMAND

 This principle states that each subordinate should

receive orders from more than one superior , it is
likely to create confusion and conflict. It also
makes easier to fix responsibility for mistakes.
UNITY OF DIRECTION

 All those working in the same line of activity

must understand and pursue the same all
objectives. All related activities should be put
under one group, there should be one plan of
action for them,. And they should be under the
control of one manager.
SUBORDINATION OF INDIVIDUAL INTEREST

 The management must put aside personal

considerations and put company objectives
firstly. Therefore the interests of goals of the
organization must prevail over the personal
interests of individuals.
REMUNERATION
 Workers must be paid sufficiently as this is a chief
motivation of employees and therefore greatly influences
productivity. The quantum and methods of remuneration
payable should be fair, reasonable and rewarding of
efforts. It is paid to worker as per their capacity and
productivity. The main objective of an organization is to
maximize the wealth and the net profit as well. For this
purpose, the organization has paid wages,salary, and
benefit to their staff properly and scientifically so that
organizational efficiency can be ensured.
THE DEGREE OF CENTRALIZATION
 The amount of power wielded with the central
management depends on the company size.
Centralization implies the concentration of
decision making authority at the top
management. Sharing of authority with lower
levels is called decentralization. The organization
should strive to achieve a proper balance.
SCALAR CHAIN

 It refers to the chain of superiors ranging from

the top management to the top management to the
lowest rank. There should be a clear line of
authority fro0 top to bottom linking all managers
at all levels. It involves a concept called a ”gang
plank” using which subordinate may contact a
superior in case of emergency, defying the
hierarchy of control. However the immediate
superiors must be informed about the matter.
ORDER
 Social order endures the flui9d operation of a
company through authoritative procedure.
Material order ensures safety and efficiency in
the work place. Order should be acceptable and
under the rules of the company.
EQUITY

 Employees must be treated kindly and justice

must be enacted to ensure a just workplace.
Managers should be fair and impartial when
dealing with employees, giving equal attention
towards all employees.
STABILITY OF TENURE OF PERSONNEL
 The period of service should not be too short and
employees should not be moved from positions
frequently. An employee cannot render useful
service if he is removed before he becomes
accustomed to the work assigned to him.
INITIATIVE
 Using this to the employees it may add the
strength and new ideas to the organization. This
is going to be the strength of the organization
because the employees are likely to take greater
interest in the functioning of the organization
ESPIRIT DE CORPS
 This refers to the need of managers to ensures the
develop morale in the workplace individually and
communally. Team spirit helps develop an
atmosphere of mutual trust and understanding.
Team spirit helps to finish the task on time.
FAYOL’S MANAGEMENT FUNCTION:

 To organize
 To plan and forecast
 To command
 To control
 To coordinate
QUALITIES OF A GEM
 The word GEM commonly refers to a mineral or
organic substance cut and polished and used as an
ornaments, as seals and as talismans good-luck
charms. Words that is associated with GEMS are
also the following: beauty, rare, durable.
4 GEMS OF MANAGEMENT
 Goal
 Execution
 Measurement
 sustenance
 The four GEMS of management are the four
pillars that propel organizations to survive,grow
and reach greater heights. They are the tools that
the leaders use to galvanize a work force into
action. They are solid anchors that ensure the
organization’s staying power when crisis looms.
THE MANAGEMENT PROCESS

Sustaining
growth

Measuring Goal
results setting

Executing
the plan
ROLES AND RESPONSIBILITIES OF A MANAGER

 Most of the manager are supervisory in nature.in

small business like carenderia the manager is
often a jack-of-all-trades. Tough he/she may
oversee aspects of the business, his
responsibilities may be hands on as well. In
medium-size an large corporations, you might
find layers of management levels, each with
specific duties.
RESPONSIBILITIES OF A MANAGER:
 Staffing
 Communication
 Training
 Administrative investigation and discipline
 Employee relations
 Business growth and sustainability
STAFFING

 In a small business, this includes writing job

descriptions , putting ads for open positions,
reviewing resumes and interviewing applicants,
interviewing prospective applicants, hiring and
firing.
 The manager oversees his/her employees. He
ensures that they are trained properly, follow
company guidelines and policies, perform the jobs
satisfactorily and receives feedback regularly.
 Depending on the size of the company, the
manager may also be responsible for the payroll
function including tallying work hours,
calculating pay, processing checks and the
tracking vacation days and other time off.
COMMUNICATION

 It is one of the most important responsibility of

the manager to keep the work place running
efficiently. employees need to know the mission
and the goals of the business and what is expected
of them to achieve those results. Inmedium and
large companies, a manager should understand the
directives coming from upper management and
must be able to translate them to the staff so that
they will be all on the right track.
TRAINING

 He/she includes orientation of new employees and

subsequent training to perform better in their jobs.
He must evaluate their progress on a regular basis
to determine whether or not additional training is
required.
 It is also the responsibility of a manager to
identify who are candidates for promotions/
advanced positions in the company and should
create career goals and plans to attain them.
ADMINISTRATIVE INVESTIGATION AND DISCIPLINE

 It is the job of a manager to investigate any

employee who violates company rules and
discipline them when proven guilty. Discipline
may include termination from employment.
He/she may also terminate an employee, after due
process, who habitually fails to perform under the
known and agreed standards established by the
company.
EMPLOYEE RELATIONS

 The maintenance of good employer-employee

relations is a very important duty of a mnaager.
Poor relationsaffect morale of the employees,
productivity, efficiency, triggers hostility towards
management. It is, therefore, bad for the business.
Happy employees are proven to be motivated and
more productive in the workplace.
BUSINESS GROWTH AND SUSTAINABILITY

 To completre the GEMS cycle, it is a manager’s

primary responsibility to ensure the success of
the company. His actions should all be geared
towards business growth and sustainability.
Managers are hired to run daily operations, coach
employees, maintain quality standards and ensure
that its products or services are fullfilling
customer needs.
 Managers must constantly review the company’s
financial, budgetary and production goals. If the
company falls short of its goal upon review
through the application of the measurement
yardsticks, the manager has to make the
necessary adjustments to get back on track.
HOMEWORK (AUGUST 10,2021)
 You are assisting in the small restaurant business of your father. As it is located
in the university belt, sales was brisk and pretty good. Your 10 employees
consisting of a cook, dishwasher, waiters,/ waitress were paid properly in
accordance with the minimum wage Law. You complied with all the labor
standards such as SSS, Philhealth, Pag-ibig, medicare, etc. your business
permit was renewed yearly. As they were handling foods, your employees
were duly certified as healthy by the Department of Health. One day, 10 of
your customers suffered nausea, vomited and were hospitalized. Suddenly,
health inspectors swooped down on your restaurant. Knocking the inside
portions of your refrigerators, a swarm of cockroaches jumped out of them.
Rats were found running in your kitchen. Your restaurant was instantly closed.
You are wondering what function of management did you fail to comply and
what characteristic of management did you fail to apply. Cite the possible
solution for the case above.