Governor Julio V.

Macuja Memorial Comprehensive High

Accountancy, Business and Management
Grade 11
June 4, 2018
Subject: Organization and Management
Topic: Definition and Functions of Management
Reference/s: https://study.com/academy/lesson; Organization and Management
Objectives:
At the end of the lesson the students will be able to:
a.       define management
b.       enumerate functions of management
c.       explain the important factors in performing manage
d.      participate actively in the class discussion

Description of Course/Subject Matter

“This course is designed for you to familiarize the basic concepts, principles, and
business organization, and the functional areas of management. Particular empha
study of management functions like planning, organizing, leading, and controlling
oriented with the importance of these functions and the role of each area in entre
prepare you to become an ideal managers someday.

Different definitions of management

• According to Harold Koontz (1909-1984), Management is the art of getting thi

and with formally organized groups.

• According to Frederick Taylor (1856-1915), Management is the art of knowing

then seeing that they do it in the best and the cheapest way.

• According to Mary Parker Follett (1868-1933), Management is the art of getti

• According to Peter Drucker (1909-2005), Management is a multipurpose orga

and manages managers and manages workers and work..

Management is the act of engaging with an organization’s human talent and us

at a manager’s disposal to accomplish desired goals and objectives efficiently and
comprises planning, organizing, staffing, leading, directing, and controlling an org
or more people or entities) or effort for the purpose of accomplishing a goal.

Five Main Functions of Management

1. Planning- Setting performance objectives and deciding how to achieve them.

- It is also a management process, concerned with defining goals for a company's

determining the missions and resources to achieve those targets. To meet objecti
develop plans, such as a business plan or a marketing plan.
- Planning is the first and most important function of management. It is needed a
management. In the absence of planning all the business activities of the organis
meaningless."

2. Organizing- It involves developing an organizational structure and allocating

ensure the accomplishment of objectives.

- An organization can only function well if it is well-organized. This means that the
capital, staff and raw materials so that the organization can run smoothly and tha
working structure. The organizational structure with a good division of functions a
importance. When the number of functions increases, the organization will expan
vertically. This requires a different type of leadership. Organizing is an important
functions of management.

3. Staffing- part of the process of management which is concerned with acquirin

appraising, remunerating and retaining people so that right type of people are av
positions and at the right time in the organization. In the simplest terms, staffing
people to jobs’.

4. Leading- a process in which the managers instruct, guide and oversee the pe
to achieve predetermined goals.

- Manage them effectively. When given orders and clear working instructions, em
what is required of them. Return from all employees will be optimized if they are
with respect to the activities that must be carried out by them. Successful manag
communicate clearly and base their decisions on regular audits. They are capable
encouraging employees to take initiative.
5. Controlling- Involves evaluating and, if necessary, correcting the performanc
groups or teams to ensure that they are all working toward the previously set goa
organization.

- Follow certain steps; (1)establishing performance standards, (2) comparing actu

standards, and (3) taking corrective action when necessary.

Factors to consider in performing management funct

Management functions will not be wasted if the managers should practice the fol
Efficiency and Effectiveness
1. Coordination- It is the unification, integration, synchronization of the efforts o
provide unity of action in the pursuit of common goals. It is a hidden force which b
functions of management.
- It is a harmonious, integrated action of the various parts and processes of an org

2. Efficiency- Efficiency indicates using fewer inputs, but producing more outpu

3. Effectiveness- being adapted to produce an effect that will help the organiza
be measured by results.
or Julio V. Macuja Memorial Comprehensive High School
Accountancy, Business and Management
Grade 11
June 4, 2018

.com/academy/lesson; Organization and Management Textbook

     enumerate functions of management

    explain the important factors in performing management functions
    participate actively in the class discussion

Description of Course/Subject Matter

r you to familiarize the basic concepts, principles, and processes related to

the functional areas of management. Particular emphasis will be given to the
tions like planning, organizing, leading, and controlling, and for you to be
ce of these functions and the role of each area in entrepreneurship and this will
deal managers someday.

Different definitions of management

ntz (1909-1984), Management is the art of getting things done through others
d groups.

aylor (1856-1915), Management is the art of knowing what you want to do and
in the best and the cheapest way.

r Follett (1868-1933), Management is the art of getting things through people.

ker (1909-2005), Management is a multipurpose organ that manage a business

d manages workers and work..

engaging with an organization’s human talent and using the physical resources
accomplish desired goals and objectives efficiently and effectively. Management
zing, staffing, leading, directing, and controlling an organization (a group of one
or effort for the purpose of accomplishing a goal.

Five Main Functions of Management

rmance objectives and deciding how to achieve them.

rocess, concerned with defining goals for a company's future direction and
nd resources to achieve those targets. To meet objectives, managers may
usiness plan or a marketing plan.
ost important function of management. It is needed at every level of
ce of planning all the business activities of the organisation will become

developing an organizational structure and allocating human resources to

t of objectives.

unction well if it is well-organized. This means that there must be sufficient

ials so that the organization can run smoothly and that it can build a good
nizational structure with a good division of functions and tasks is of crucial
ber of functions increases, the organization will expand both horizontally and
fferent type of leadership. Organizing is an important function of the five

cess of management which is concerned with acquiring, developing, employing,

nd retaining people so that right type of people are available at the right
me in the organization. In the simplest terms, staffing in management is ‘putting

hich the managers instruct, guide and oversee the performance of the workers
goals.

When given orders and clear working instructions, employees will know exactly
eturn from all employees will be optimized if they are given concrete instructions
s that must be carried out by them. Successful managers have integrity,
ase their decisions on regular audits. They are capable of motivating a team and
take initiative.
valuating and, if necessary, correcting the performance of the individuals or work
that they are all working toward the previously set goals and plans of the

tablishing performance standards, (2) comparing actual performance against

orrective action when necessary.

ors to consider in performing management functions:

not be wasted if the managers should practice the following; Coordination,

ess
unification, integration, synchronization of the efforts of group members so as to
e pursuit of common goals. It is a hidden force which binds all the other

ted action of the various parts and processes of an organization

ndicates using fewer inputs, but producing more outputs.

dapted to produce an effect that will help the organization attain its aims. It can
 Governor Julio V. Macuja Memorial Comprehensive High School
Accountancy, Business and Management
Grade 11
June 5, 2018
Subject: Organization and Management
Topic: Evolution of Management Theory
Reference/s: http://distance.nmims.edu/uploads/docs/samples/management-theory-and-
practice-eBook.pdf; Organization and Management Textbook
Objectives:
At the end of the lesson the students will be able to:
a.       enumerate the various types of management theories
b.       explain the various types of management theories
c.       know the major contributors of each management theories
d.      participate actively in the class discussion

What is Management Theory?

- are collections of ideas that provide the framework for effective management strategy, are
implemented in modern workplaces to motivate and bring the best out of employees.
- These are theories that help improves the management process

The Evolution of Management Theory

APPROACHES TO MANAGEMENT
CLASSICAL APROACH
•Scientific Management
•Administrative Management
•Bureaucratic Management

CLASSICAL APPROACH
1. Scientific Management Theory
- The systematic study of the relationships between people and tasks for the purpose of
redesigning the work process for higher efficiency.

- Defined by Frederick W. Taylor in the late 1800’s- (Father of Scientific Management)

- This is also called Taylorism

Taylor’s Scientific Management Principles

1. develop a science for each element of an individual’s work to replace old rule of thumb method;
2. scientifically select and train, teach and develop workers;
3. select workers whose skills match the rules;
4. divide work and responsibility almost equally between management and workers

2. Administrative Management Theory

- The theory concentrates on the manager’s functions and what makes up a good management
practice or implementation.
- The study of how to create an organizational structure that leads to high efficiency and
effectiveness.
- Henri Fayol (Father of Modern Management) and Max Weber are the personalities associated with
it.

Henri Fayol’s 14 Principles of Management

1.) Division of Labor
- According to this principle, work should be divided among individuals and groups according to
their skills and knowledge. This helps in completing the work with greater efficiency.

2.) Authority and Responsibility

- Managers have the right to give orders and the power to exhort subordinates for obedience.
3.) Unity of Command
According to this principle, employees associated with a particular type of work should report to
one superior only. This helps in avoiding confusions in the role of the employees.

4.) Scalar chain

- refers to the hierarchy followed in an organization from top managers to employees working at
lower levels. According to the principle of scalar chain, all communication should pass through
proper channels of hierarchy. However in case there are any delays in communication due to
hierarchy, there must be provision of cross communication.

5.) Centralization
- According to Fayol, the degree of centralization should be decided to make the optimum
utilization of employees’ skills .

6.) Unity of Direction

- It means that there should be one direction in which employees must move to achieve a
particular objective. If employees get pulled into different directions, it may be difficult for them to
achieve the objective..
7.) Equity
The principle of equity means fair treatment of all employees. Management must treat all
employees equally and should be free from biases and prejudices.
 8.) Order
The arrangement of organizational positions should maximize organizational efficiency and provide
employees with satisfying career opportunities

9.) Initiative
Managers should allow employees to be innovative and creative.
10.) Discipline
refers to the obedience to authority. Employees must obey and respect the governing policies and
rules of the organization. In order to maintain good discipline in an organization, there is a need for
good supervision at all levels; clear understanding between management and workers; and
rational use of penalties.
11.) Remuneration of Personnel
There should be provision of fair wages for workers. The calculation of wages should be done by
considering various factors, such as business environment, cost of living, capacity of organization
to pay, and productivity of employees.

12.) Stability of Tenure of Personnel

Management must strive to stabilize the tenure of employees by providing them job security.
Increased turnover always results in inefficient production; therefore, organizations must attempt
to reduce it by improving.

13.) Subordination of Individual Interests to the Common Interest

Employees should understand how their performance affects the performance of the whole
organization.
14.) Esprit de corps
It refers to team spirit. Management must adopt new ways to improve team spirit among
employees. This helps employees to work in harmony.

3. Bureaucratic Management

Bureaucratic management was promoted by Max Webber (1864-1920), who was a German
sociologist. According to Webber, bureaucratic management is the most appropriate
administration. He believed bureaucracy was the most efficient way to set up an organisation,
administration and organizations. Max Weber believed it was a better than traditional structures. In
a bureaucracy, everyone is treated equal and the division of labour is clearly described for each
employee.

Bureaucracy is an organisational structure that is characterised by many rules, standardised

processes, procedures and requirements, number of desks, meticulous division of labour and
responsibility, clear hierarchies and professional, almost impersonal interactions between
employees.

Characteristics of Bureaucratic Management

1. Management by standard rules:

According to Webber, an organization must be governed by a set of rules. Upper level managers
must follow these rules while controlling lower level workers.
2. Division of labor:
Webber promoted the principle of division of labor while assigning the work to all employees.
According to him, the division of labor results in saving a lot of time consumed during changing
over from one job to another.

3. Selection of personnel having technical skills:

Employees having required technical skills must be hired in order to perform their jobs efficiently.
4. Hierarchical organizational structure:
In order to be successful, an organization must adopt a hierarchical structure wherein lower level
employees must be under the supervision of higher level managers.

5. Record of all administrative acts, decisions, and rules:

An organization must keep a record of all its administrative activities including policies, rules, and
decisions. The record can be used in the future for studying the nature of activities and people in
the organization.

MODERN APPROACH
1. Quantitative Approach
- focused on managerial decision making. This approach is also known as management science
approach. It was developed during World War II to find the problems of warfare. The quantitative
approach can be studied under three areas, which are:

Operations research: It is a discipline that lays emphasis on improving the effectiveness of

management decisions by using advanced analytical techniques. It is sometimes considered to be
a subfield of mathematics as it involves extensive calculations. Some of the commonly used
operations research techniques are linear programming, querying, waiting line, routing and
distribution models, etc.
Operations management: It is an area of management that involves supervising and controlling
the production process. For this, various techniques are used, such as inventory analysis, statistica
quality control, and networking.

Management information system (MIS): This is a computerized management system used to

provide information required by organizations for their effective management. MIS facilitates the
decision making process of an organization by providing meaningful information about its business
processes.

2. System Approach
- It was developed in the late1960s with an aim to provide an integrated approach to solve
management problems. According to this approach, a system can be defined as a set of
components that are interacting regularly or are interdependent, thus making a single unit.

- Systems approach is based on the generalization that everything is inter-related and inter
dependent. A system is composed of related and dependent element which when in interaction,
forms a unitary whole. A system is simply an assemblage or combination of things or parts forming
a complex whole.

Contingency Approach
- This approach is also known as situational approach wherein an organization determines
problems by analyzing its conditions and environment. According to this approach, there is no
single set of rules that is applicable in solving all types of problems in organizations. Therefore,
managers need to analyze every problem and various aspects associated with it, and define
different ways to solve the problem
 MAJOR CONTRIBUTORS IN THE EVOLUTION OF MANAGEMENT THEORY
1. CHARLES BABBAGE
ØCharles Babbage (1792-1891) was a mathematician, philosopher, and a mechanical engineer.
ØHe is known as the father of computers.
ØIn his view, the human factor plays a significant role in the success of an organization; therefore, employees
should be associated with the management in a manner that benefits both.
ØHe also developed the concept of profit sharing and participative decision making.
ØHe introduced the use of science and math in the field of manufacturing operations.
ØHe advocated the use of division of labor to assign work in organizations.
He suggested that all management decisions must be based on accurate knowledge

2. FREDERICK W. TAYLOR
ØFredrick Winslow Taylor is well known for developing the concept of scientific management; therefore, is
known as the father of scientific management.
ØHe developed the theory of scientific management (also known as scientific school of thought) that involves the
application of scientific methods of study and analysis of various management problems.
ØHe developed the principles of scientific management with an aim of improving the productivity at the
manufacturing plant.

3. HENRY LAURENCE GANTT

ØGantt has been known for developing ‘Task and Bonus Plan.’ According to the plan, bonus must be paid to
those managers who teach their employees to finish tasks efficiently in the given time period.
ØHe also promoted the concept of social responsibility of business.
ØHis best contribution emerged in the form of Gantt charts, which are visual-diagrammatic tools used for creating
production schedules.

4. HENRI FAYOL
ØHenri Fayol was a French mining engineer and an industrialist.

ØHis main focus was on improving the efficiency of operations management in organisations.
ØHe developed the concept of administrative management, wherein he formulated several management principles
that could be applied to all types of organisations.
ØConsidered as the father of modern management.

5. ROBERT OWEN
ØSir Robert Owen (1771-1858) was a Welsh social reformer and a proponent of human resource management.
ØAccording to him, investing in human resource is better than investing in other assets.
ØHe advocated that employees should be working because they are interested in it rather than being forced.
ØHe also propounded that there should be a harmonious relationship between managers and employees in order
to improve the efficacy of production.
ØManagers must make workers aware of the organisation’s expectations and support them in meeting those
expectations.
ØHis philosophy and ideas are considered as a forerunner to the development of behavioral approach of
management.
6. MAX WEBER
ØMax Weber is famous for developing the bureaucratic management theory in which he emphasised the requirement of a
hierarchy in organisations.
ØHe also advocated that there should be well-defined regulations and authority in organisations.

ØWeber perceived three types of administration, namely traditional, charismatic, and bureaucratic. In traditional
organisations, managerial positions are handed down from one generation to the other irrespective of intelligence,
knowledge, and experience. In charismatic organisations, management functions are not delegated and all the employees
are considered to be the loyal subjects of a leader. In bureaucratic organisations, a person is given a managerial
responsibility as per his/ her capability.

7. GEORGE E. MAYO
ØGeorge E. Mayo, also known as Elton Mayo (1880-1949), was an Australian psychologist.

ØHe is famous for his contribution in Hawthorne studies. Hawthorne studies Hawthorne which refers to the fact that people
will change their behavior simply because they are being observed.

ØHe concluded that workers become more productive if they receive attention from the management. The outcome of his
findings in Hawthorne studies later gave way to the human relations movement. The movement focuses on the concept of
job satisfaction, group norms, and leadership quality and their significance in the improvement of productivity
acuja Memorial Comprehensive High School
ancy, Business and Management
Grade 11
June 5, 2018

s.edu/uploads/docs/samples/management-theory-and-
d Management Textbook

s will be able to:

erate the various types of management theories
n the various types of management theories
the major contributors of each management theories
ipate actively in the class discussion

hat is Management Theory?

This Management theories is only base

e the framework for effective management strategy, are
aton pagmanage kng business. Innova
to motivate and bring the best out of employees. styles inline sa kon ano rn ang gina
ves the management process specifically busin

olution of Management Theory

we need to study these mana
experiences of the contibutor
manageme

ROACHES TO MANAGEMENT
MODERN APROACH
•Quantitative Approach
•Operations Research
•Operations Management
•Management Information System (MIS)
•Systems approach
•Contingency approach

CLASSICAL APPROACH
y
Scientific management was concerned with individ
 nships between people and tasks for the purpose of Scientific management was concerned with individ
her efficiency.

he late 1800’s- (Father of Scientific Management)

Scientific Management Principles

nt of an individual’s work to replace old rule of thumb method;
ch and develop workers;
the rules;
most equally between management and workers

Theory
anager’s functions and what makes up a good management

nizational structure that leads to high efficiency and

agement) and Max Weber are the personalities associated with

ol’s 14 Principles of Management

ould be divided among individuals and groups according to

ps in completing the work with greater efficiency.

ders and the power to exhort subordinates for obedience.

es associated with a particular type of work should report to

ding confusions in the role of the employees.

an organization from top managers to employees working at

ple of scalar chain, all communication should pass through
er in case there are any delays in communication due to
f cross communication.

entralization should be decided to make the optimum

direction in which employees must move to achieve a

et pulled into different directions, it may be difficult for them to

eatment of all employees. Management must treat all

ee from biases and prejudices.
positions should maximize organizational efficiency and provide
portunities

o be innovative and creative.

Employees must obey and respect the governing policies and

maintain good discipline in an organization, there is a need for
understanding between management and workers; and

ges for workers. The calculation of wages should be done by

business environment, cost of living, capacity of organization
es.

nnel
e the tenure of employees by providing them job security.
inefficient production; therefore, organizations must attempt

Interests to the Common Interest

heir performance affects the performance of the whole

must adopt new ways to improve team spirit among

work in harmony.

romoted by Max Webber (1864-1920), who was a German

reaucratic management is the most appropriate
racy was the most efficient way to set up an organisation,
ax Weber believed it was a better than traditional structures. In nonelectiv
equal and the division of labour is clearly described for each
a government that is administered primari

any organization in which action is obstru

tructure that is characterised by many rules, standardised

A system of carrying on the business of go
ents, number of desks, meticulous division of labour and under the control of a chief, in contradictio
professional, almost impersonal interactions between an associated authority and responsib

stics of Bureaucratic Management

es:
on must be governed by a set of rules. Upper level managers
lling lower level workers.
ivision of labor while assigning the work to all employees.
or results in saving a lot of time consumed during changing

technical skills:
l skills must be hired in order to perform their jobs efficiently.
ructure:
zation must adopt a hierarchical structure wherein lower level
vision of higher level managers.

cts, decisions, and rules:

of all its administrative activities including policies, rules, and
the future for studying the nature of activities and people in

MODERN APPROACH

aking. This approach is also known as management science

World War II to find the problems of warfare. The quantitative
e areas, which are:

line that lays emphasis on improving the effectiveness of

vanced analytical techniques. It is sometimes considered to be
ves extensive calculations. Some of the commonly used
inear programming, querying, waiting line, routing and

area of management that involves supervising and controlling

ious techniques are used, such as inventory analysis, statistical

m (MIS): This is a computerized management system used to

anizations for their effective management. MIS facilitates the
nization by providing meaningful information about its business

with an aim to provide an integrated approach to solve

o this approach, a system can be defined as a set of
ularly or are interdependent, thus making a single unit.

generalization that everything is inter-related and inter

f related and dependent element which when in interaction,
imply an assemblage or combination of things or parts forming

uational approach wherein an organization determines

and environment. According to this approach, there is no
in solving all types of problems in organizations. Therefore,
oblem and various aspects associated with it, and define
S IN THE EVOLUTION OF MANAGEMENT THEORY

athematician, philosopher, and a mechanical engineer.

gnificant role in the success of an organization; therefore, employees

t in a manner that benefits both.
sharing and participative decision making.
ath in the field of manufacturing operations.
or to assign work in organizations.
ns must be based on accurate knowledge

for developing the concept of scientific management; therefore, is

ment.
anagement (also known as scientific school of thought) that involves the
and analysis of various management problems.
c management with an aim of improving the productivity at the

Task and Bonus Plan.’ According to the plan, bonus must be paid to
s to finish tasks efficiently in the given time period.
responsibility of business.
m of Gantt charts, which are visual-diagrammatic tools used for creating

eer and an industrialist.

fficiency of operations management in organisations.

tive management, wherein he formulated several management principles
isations.
nagement.

elsh social reformer and a proponent of human resource management.

esource is better than investing in other assets.
working because they are interested in it rather than being forced.
e a harmonious relationship between managers and employees in order

the organisation’s expectations and support them in meeting those

d as a forerunner to the development of behavioral approach of

ureaucratic management theory in which he emphasised the requirement of a

-defined regulations and authority in organisations.

on, namely traditional, charismatic, and bureaucratic. In traditional

d down from one generation to the other irrespective of intelligence,
ganisations, management functions are not delegated and all the employees
ader. In bureaucratic organisations, a person is given a managerial

o (1880-1949), was an Australian psychologist.

orne studies. Hawthorne studies Hawthorne which refers to the fact that people kon man-an nga gina-obserbaran,
ey are being observed. wra gani, g

roductive if they receive attention from the management. The outcome of his
to the human relations movement. The movement focuses on the concept of
quality and their significance in the improvement of productivity
 agement theories is only basehan naton sa para mangin effective ang
gmanage kng business. Innovations or changes sa aton management
s inline sa kon ano rn ang ginademand or trends kang aton society
specifically business organizations.

need to study these management theories because it the

periences of the contibutors can serve as the basis of our
management practices

nagement was concerned with individual tasks and how workers could do those tasks most efficiently.
 nonelective government officials

ment that is administered primarily by bureaus that are staffed with nonelective officials

nization in which action is obstructed by insistence on unnecessary procedures and red

tape

m of carrying on the business of government by means of departments or bureaus, each

control of a chief, in contradiction to a system in which the officers of government have
ssociated authority and responsibility; also, government conducted on this system.
n-an nga gina-obserbaran, ginapanami na gid ana performance, pero kn
wra gani, gapinagusto lng man.