Principles of Management and OrganizationLecture on Management Concepts

Prof. Ron Untivero

Sources: Principles and Practices of Management and Organization by Samuel Salvador, Estelito Bagunas, and Ellinor GeronimaManagement by Michael Hitt, Stewart Black and Lyman Porter

MANAGEMENTThree aspects of ManagementA field of study or a subject: principles and practices of managementAs a team or class of people: group of managerial personnel of a company As a process: different processes or steps of management, from planning to organizing, staffing, leading and controlling; it is getting things done by and in cooperation with others

Definitions of ManagementKoontz: Management is the art of getting things done with people and through informally organized groups. It is the art of creating an environment in which people can perform as individuals and yet cooperate towards attainment of group goals.

Definitions of ManagementDalton E. MacFarland: Management is the fundamental integrating and operating mechanism underlying organized effort George R. Terry: Management is a distinct process performed to determine and accomplish stated objectives by the use of human beings and other resources

Definitions of ManagementW. Jack Duncan: Management consists of all organizational activities that involve goal formation and accomplishment, performance, appraisal, and the development of an operating philosophy that ensures the organizations survival within the social system

Definitions of ManagementAmerican Management Association: Management is guiding human and physical resources into dynamic organization units which attain their objectives to the satisfaction of those served and with a high degree of morale and sense of attainment on the part of those rendering the services.

Definitions of ManagementMost widely accepted definition: Management is a process by which responsible persons (managers or executives) in an organization get things done through the efforts of other people in group activities

Salient features of ManagementOrganizational ActivityObjective and Goal FormationObjective and Goal Attainment and EvaluationOrganizational SurvivalImplementation

Characteristics of ManagementUniversal ProcessAn Integrative ProcessDynamic FunctionSocial ProcessIt Makes Things HappenMulti-faceted DisciplineIntangible Force

Management: Science or Art?It is a science it has an organized body of knowledge (concepts, theories and principles) which is based on facts and universal truths.Management is a behavioral science. Its theories and principles are situation-bound; their applicability does not necessarily have the same results every time.

Management: Science or Art?It is an art --- it brings out the desired results through the application of skills. It is concerned with the application of knowledge and skills.It involves the use of know-how and skillsIt is directed towards the accomplishment of concrete resultsIt is creative it creates new situations needed for further improvementIt is personalized people have individual approaches and techniques in solving problems

Management: Science AND ArtManagement seeks to integrate into a unified, coordinated whole all the essential factors that make-up the organization.It is a broad field of knowledge with its own areas of specialization: human resources, finance, production, sales and marketing, purchasing, administrative services, research and development, engineering, management systems and control

Management: Science AND ArtThose who wish to assume managerial roles must possess sufficient knowledge in economics, sociology, psychology, political science and government, anthropology, natural science, statistics, marketing, finance, accounting, taxation, human resources, production, sales, public relations, business law, etc.

FUNCTIONS OF MANAGEMENT (POSDICON / POLC)PLANNINGORGANIZINGSTAFFINGDIRECTINGCONTROLLING

PLANNINGORGANIZINGLEADINGCONTROLLING

PLANNINGDetermining the objectives to be achieved as well as the course of action to be allowed to achieve themSystematic technique of looking aheadPlanning acitivities:Determining objectivesForecastingSearch for alternative courses of action and their evaluationDrawing policies and proceduresBudgeting

ORGANIZINGThe grouping together of men and establishing relationships among them, defining the authority and responsibility that personnel have in the use of the organizations material resources to attain predetermined goals.1. Determination of objectives2. Division of Activities3. Fitting individuals to specific jobs4. Developing relationships in terms of authorities and responsibilities

STAFFINGIncludes manning and keeping manned, the positions created by the organizational structureDefine manpower requirements for the job to be doneInventory, appraisal and selection of applicants Compensation and training of personnel

DIRECTING (LEADING)Involves guiding and leading subordinatesIncludes 4 sub-functions:CommunicationLeadershipMotivationSupervision

CONTROLLINGInvolves checking the work accomplished against plans or standards and making adjustments or corrections when new developments or unforeseen events necessitates it.Involves the following tasks:Fixing standardsMeasurement of actual performanceComparing actual and planned performanceFinding variances between the two and the reasons for suchTaking corrective actions

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