Principles of

Management
Management: A Competency Base Approach
Managing in a Dynamic
Environment
 Learning Objectives

 Define Managers And Management.

 Explain What Managers Do.
 Describe The Competencies Used In
Managerial Work And Assess Your Current
Competency Levels.
 Introductory Concepts: What Are
Managerial Competencies?

 Competency – a combination of knowledge,

skills, behaviors, and attitudes that contribute to
personal effectiveness

 Managerial Competencies – sets of knowledge,

skill, behaviors, and attitudes that a person
needs to be effective in a wide range of positions
and various types of organizations
 Why are Managerial Competencies
Important?

 You need to use your strengths to do your best

 You need to know your weaknesses
 You need developmental experiences at work to become
successful leaders and address your weakness
 You probably like to be challenged with new learning
opportunities
 Organizations do not want to waste human resources
 Globalization deregulation, restructuring, and new
competitors add to the complexity of running a business
 A Model of Managerial
Competencies
Communication
Competency
Planning and
Teamwork
Administration
Competency
Competency

Global Strategic
Awareness Action
Competency Self-Management Competency
Competency
 A Model of Managerial
Competencies
(adapted from Figure 1.1)
Communication
Competency
Planning and
Teamwork
Administration
Competency
Managerial Competency
Effectiveness
Global Strategic
Awareness Action
Competency Self-Management Competency
Competency
 What Is An Organization?
 A formal and coordinated group of people who
function to achieve particular goals
 These goals cannot be achieved by individuals
acting alone
 An organization has a structure, discussed in depth
in Chapter 11
 Characteristics of an
Organization
 An organization has a structure.

 An organization consists of a group of

people striving to reach goals that
individuals acting alone could not achieve.
 Management
Organization
Two or more people who work together in a structured
way to achieve a specific goal or set of goals.

Goals
Purpose that an organization strives to achieve;
organizations often have more than one goals, goals are
fundamental elements of organization.

The Role of Management

To guide the organizations towards goal
accomplishment
- People responsible for
directing the efforts aimed
at helping organizations
achieve their goals.
- A person who plans,
organizes, directs and
controls the allocation of
human, material, financial,
and information resources
in pursuit of the
organization’s goals.
 Management
 Management refers to the tasks and activities
involved in directing an organization or one of
its units: planning, organizing, leading, and
controlling.
 The process of reaching organizational goals by
working with and through people and other
organizational resources.
Function: A classification referring to a group of
similar activities in an organization like marketing or
operations.
Functional Managers: A manager responsible for
just one organizational activity such as accounting,
human resources, sales, finance, marketing, or
production
 Focus on technical areas of expertise

 Use communication, planning and

administration, teamwork and self-
management competencies to get work
done
 (cont’d)

General Managers: responsible for the operations

of more complex units—for example, a company or
division

 Oversee work of functional managers

 Responsible for all the activities of the unit
 Need to acquire strategic and multicultural
competencies to guide organization

Many Other types of managers

Basic Managerial Functions

Organizing

Leading
Planning

Controlling
Management Process and Goal Attainment
Management and Organizational
Resources
Planning involves tasks
that must be performed to
attain organizational goals,
outlining how the tasks
must be performed, and
indicating when they
should be performed.
 What is planning?

 is the process of determining objectives

and organizational goals, establishing
strategies and integrating coordinated
activities in the organization to achieve the
goals and objectives.
Types of Planning

Single-Use Plan

Standing Plan

Contingency Plan
 Single Use Plans
 are plan used once to meet the needs of
well defined situations in a timely manner.
 Budgets are single-use plans that commit
resources to activities, projects, or
programs.
 University of Santo Tomas prepares a
plan for its upcoming 400 years
celebration. These plans involve the
activities that will be used during the
celebration like the parades, fireworks and
 Standing Plans
 it is an ongoing plan designed without a
determined time period.
 are usually policies, rules, procedures and
program developed to serve as guidelines
or methods to be followed in
accomplishing particular objectives.
 Example: Schools have a standing plan
for students who failed in a particular
course subject. The school will offer a
remedial class or summer class for the
concerned students
 Contingency Plans
 managers must able to detect changes
before they happen. It is about thinking
ahead and preparing for the worst-case
scenario.
 Examples: Contingency plans are
important for most common situations
especially when an unexpected problem
occurs like a machine stops working in the
middle of the production process.
 Benefits of Planning
 Planning reduces uncertainty. Managers
cannot accurately predict the demand of
the products and services in advance
given this scenario.
 Planning create goals that is used in
controlling. Every time a manager try to
control his subordinates without any plan
is pointless.

 Planning gives direction. All managers
should take a preliminary look at possible
future opportunities and see them clearly
and completely, know where they stand in
light of their strengths and weaknesses,
understanding what problems they wish to
solve and why and know what they expect
to gain.
 Planning improves performance of the
people within an organization (managers
and employees) because planning
provides a sense of direction.
 Planning improves coordination of work.
It helps synchronizing the process or
activities which reduces overlapping
activities (redundancies). Poor planning of
activities can lead to greater expenses
that directly affect the budget and the
efficiency of the organization.
 Levels of Planning
LEVEL OF TIME HORIZON
MANAGEMENT
STRATEGIC PLANNING TOP 3-7 years
TACTIC PLANNING MIDDLE 1-3 years or less

OPERATIONAL FRONTLINE Less than 1 year

PLANNING
 STRATEGIC PLANNING
 involves analyzing and determining
objectives and deciding what actions are
needed to be taken to achieve them.
 the top level managers are responsible
for the development of the plan.
 The length of the planning horizon will
cover 3-7 years that is why strategic
planning is also called long range
planning.
 TACTICAL PLANNING

 is a set of procedures for translating

broad strategic goals and plans into
specific goals and plans that is relevant to
a distinct portion of the organization, such
as functional area like marketing.
 OPERATIONAL PLANNING
 it deals with limited scope and focus on
specific areas. It process of setting short
range objectives and determining in
advance how they will be accomplished.
Frontline or operational managers are the
one responsible in developing this plan.
The length of the planning horizon usually
cover less than one year. Operational
planning must be updated time to time to
address the changing needs of the
organization.
 CHARACTERISTICS OF GOAL

 A goal should be: S.M.A.R.T

 Specific, it means that goal must be
accurate and well defined.
 Measurable, it pertains that goal have to
be quantifiable
 Attainable, it refer that goal need to be
achievable and manageable
 Relevant, it means that goal be important
and significant.
 Time-bound, it means that goal should
have a target date or date of completion.
 TYPES OF GOALS

 Short-Term Goals, is a type of goal that

needs to be achieved in a short period of
time.
 One may achieve this goal in a day,
week, month or year.
 LONG TERM GOAL
 is a type of goal that details in the future
because it need to be achieve over a
longer period of time and typically not
achievable in one simple step.
 often times goals set in this period is more
meaningful but achieving this goal
requires greater effort and focus that is
why it is important to manage and
maintain a positive attitude and outlook.
THE IMPORTANCE OF DECISION
MAKING

Decision

Programmed Decision

Non Programmed Decision

 What is Decision Making
 is a process of choosing and selecting
best possible alternatives; A decision is
useless unless they are not acted on or
implemented.
 all managers in different level perform
different functions and possess various
skills, one of the important skills all
managers need to acquire is the
conceptual and decisional skills.
 TYPES OF DECISION
 PROGRAMMED DECISIONS, is a type of
decision that is highly structured wherein
procedures in a decision are provided with
predetermined decision ruled.
 are made in response to repetitive
situation.
 Example: Miguel is an employee of the
bank. He always arrives late for work, with
this he expects a deduction from his
salary.
NON-PROGRAMMED DECISION
 Is a type decision that is unstructured with
no clear procedures for making a decision.
It deals with developing or creating a
possible solution and all alternatives
should be evaluated.
 Example: When the typhoon Öndoy” Sept
2009 brought unexpected heavy rains
which causes massive flooding of key
cities of Metro Manila.
 BASIC DECISION MAKING
PROCESS
1. Identify the problem
2. Gather information
3. Develop alternative solutions
4. Analyze the alternatives
5. Select the best alternative
6. Implement an alternative
7. Evaluate the decision
 Identify the problem

 it involves the assessment of the

situation.
 a manager should be able to identify the
difference between the current and
desired state of affairs.
 Gather information about the
problem
 it is important to collect all the necessary
information related to the problem. A
manager should be able determine reliable
information from inaccurate information.
 Develop alternative solutions

 Brainstorming is one of the best decision

making methods; it is also a good
methods in developing an alternative
solutions.
 Analyze the alternatives

 a manager needs to determine the

advantages and disadvantages of each
alternative.
 a manager needs to examine all the
alternatives against each criterion before
making a final decision.
 Select the best alternative
 this is the most crucial stage of the
decision making process.
 a manager needs to realize the best
possible alternative also known as
maximizing and not just choosing an
alternative that is acceptable enough that
meets the minimal requirements but not
necessarily the perfect one which is
commonly known as satisfying.
 Implement an alternative

 once a manager has already made a

decision, it is time to put things in action.
 the implementation will be the next step.
 Evaluate the decision

 the evaluation is the final step of the

decision making processes.
 in this final step, a manager needs to
examine the consequences of the decision
both positive and negative.
IMPORTANCE OF MISSION AND
VISION
 MISSION STATEMENT, an organization
mission is the reason for its existence. It is
expressed in its mission statement serves
as the basis for organizational goals which
provides more detail. It also describes the
scope of the mission. Managers often
times use mission statement as a guide in
making decisions because it focuses on
the company’s present state.
 VISION STATEMENT
 an organization vision is a mental image
of possible and desirable future state of
the organization. The best visions are
ideal and unique. Ideal, if it communicates
a standard of excellence and a clear
choice of positive values.
 clarifies the long-term direction of the
company and its strategic intent.
 “Where do you want to go?”
 Criteria in Preparing Mission
Statement
 it should be clear and easily to be
understood.
 if possible keep it short the ideal mission
statements tend to have three to four
sentences.
 it should describe what your company
does, who does it for, how you do it and
why?
 it should include the core competencies,
values, moral and ethical positions that
are expressed in your business.
 it should be able to withstand the
changes and aim for the substances by
putting your mission statement at work.
 Planning

 Determining organizational goals and

means to reach them
 Managers plan for three reasons
1. Establish an overall direction for the
organization’s future
2. Identify and commit resources to achieving
goals
3. Decide which tasks must be done to reach
those goals
Organizing means assigning the planned tasks to
various individuals or groups within the
organization and cresting a mechanism to put plans
into action.
 Organizing

 Process of deciding where decisions will be made, who

will perform what jobs and tasks, and who will report
to whom in the company
 Includes creating departments and job descriptions
 Organizational Structure
 is the formal arrangement of jobs within
an organization.
 is the arrangement of people and tasks to
accomplish organizational goals.
 represents a detailed arrangement of job
functions per department that is accorded
to the employee scope of responsibility.
 the structure can also be done while
the work is subdivided into the
departments; this method is called
departmentalization.
 Types of Departmentalization
1. Functional departmentalization, is an
arrangement that defines departments by
the function each one performs, such as
accounting and purchasing.
2. Geographic departmentalization, is an
arrangement of departments according to
the geographic area and/or territory
served.
3. Product-service departmentalization, is
the arrangement of departments
according to the products or services they
provide.
JOB DESIGN, is the process of laying out the
job responsibilities and duties. It also
includes the description on how these are
performed.
Job Specification, refers to the list of the
knowledge, skills, abilities, and other
characteristics that an individual must
have to perform a particular job.
Job description, is a written statement of
the key features of a job along with the
activities required to perform effectively
by the job holder.
Job enrichment, is an approach in including
more challenges and responsibilities in
jobs to make them more appealing to
employees.
 LEADING
 that directs and guides every aspiring
businessman in achieving its main goal
and binds the importance of motivation,
communication and leadership in an
organization.
 Motivation, is another important term in
the definition, as it provides a power to
shape loyalty of its employees by giving
incentives, bonuses, benefits.
 Communication, is necessary in any
organization for it develops smooth
transaction and understanding with each
other.
 Leadership, is set to show authority, a
person in charge, someone who is able to
give commands and a perfect role model
that will inspire his employees in the
organization.
Leading (Influencing) means guiding the activities
of the organization members in appropriate
directions. Objective is to improve productivity.
 Leading

 refers to the organization of resources

 it also includes keeping employees

able to work with each other
harmoniously in achieving a common
goal.

 Getting others to perform the

necessary tasks by motivating them to
achieve the organization’s goals

 Crucial element in all functions

 Leadership Styles, shapes the company’s
attitude and values on attaining its goals.
Four Types of Leadership Styles:
1. Participative Leadership, is a style of
leadership that requires to hear the
voices of all people concern.
“Participative leaders share decision
making with group members”.
2. Democratic Leadership, is another style
of leadership where both sides of the
stories or parties point of view.
 “Democratic leader depends not only on
their own capabilities but encourage
consultation of subordinates.
3. Laissez-faire leadership, based on the
free movement of ideas and opinions of
the public.
Example: outside experts – staff specialist
orconsultants
4. Autocratic Leadership, retain most of the
authority because they make decision
confidentially, assume that group
members will comply and are not overly
concerned with group members attitude
towards a decision.
1. Gather information that measures recent performance
2. Compare present performance to pre-established standards
3. Determine modifications to meet pre-established standards
 Controlling

 Process by which a person, group,

or
organization consciously monitors
performance and takes corrective
action
Basic Levels of Management
(adapted from Figure 1.3)

Top
Managers

Middle Managers

First-Line Managers

Nonmanagers
 Top Managers

 Responsible for providing the overall direction of an

organization
 Develop goals and strategies for entire organization
 Spend most of their time planning and leading
 Communicate with key stakeholders—stockholders,
unions, governmental agencies, etc., company
policies
 Use of multicultural and strategic action
competencies to lead firm is crucial
 Levels of Management
 First-line Managers: have direct responsibility for
producing goods or services Foreman, supervisors,
clerical supervisors
 Middle Managers:
 Coordinate employee activities
 Determine which goods or services to provide

 Decide how to market goods or services to customers

Assistant Manager, Manager (Section Head)

 Top Managers: provide the overall direction of an
organization Chief Executive Officer, President, Vice
President
 First-line Managers

 Directly responsible for production of goods or services

 Employees who report to first-line managers do the
organization’s work
 Spend little time with top managers in large organizations
 Technical expertise is important
 Rely on planning and administration, self-management,
teamwork, and communication competencies to get work
done
 Middle Managers

 Responsible for setting objectives that are consistent with

top management’s goals and translating them into specific
goals and plans for first-line managers to implement
 Responsible for coordinating activities of first-line
managers
 Establish target dates for products/services to be delivered
 Need to coordinate with others for resources
 Ability to develop others is important
 Rely on communication, teamwork, and planning and
administration competencies to achieve goals
Management Level and Skills
 Introductory Concepts: What Are
Managerial Competencies?

 Competency – a combination of knowledge,

skills, behaviors, and attitudes that contribute to
personal effectiveness

 Managerial Competencies – sets of knowledge,

skill, behaviors, and attitudes that a person
needs to be effective in a wide range of positions
and various types of organizations
 Six Core Managerial Competencies:
What It Takes to Be a Great Manager

 Communication Competency

 Planning and Administration Competency

 Teamwork Competency

 Strategic Action Competency

 Multicultural Competency

 Self-Management Competency
 Communication Competency
 Ability to effectively transfer and exchange information
that leads to understanding between yourself and others
 Informal Communication
 Used to build social networks and good
interpersonal relations
 Formal Communication
 Used to announce major events/decisions/
activities and keep individuals up to date
 Negotiation
 Used to settle disputes, obtain resources,
and exercise influence
 Deciding what tasks need to be done, determining
how they can be done, allocating resources to enable
them to be done, and then monitoring progress to
ensure that they are done
 Information gathering, analysis, and problem solving
from employees and customers
 Planning and organizing projects with agreed
upon completion dates
 Time management
 Budgeting and financial management
 Accomplishing tasks through small groups of
people who are collectively responsible and
whose job requires coordination
 Designing teams properly involves having
people participate in setting goals

 Creating a supportive team environment gets

people committed to the team’s goals

 Managing team dynamics involves settling

conflicts, sharing team success, and assign tasks
that use team members’ strengths
 Strategic Action Competency

 Understanding the overall mission and values of

the organization and ensuring that employees’
actions match with them

 Understanding how departments or divisions of

the organization are interrelated

 Taking key strategic actions to position the firm

for success, especially in relation to concern of
stakeholders

 Leapfrogging competitors
 Snapshot

“Sony must sell off businesses that don’t fit

its core strategy of fusing gadgets with films,
music, and game software. That means
selling off its businesses in its Sony Financial
Holdings, which are very profitable.”

Howard Stringer, CEO, Sony

 Multicultural Competency
 Understanding, appreciating and responding to
diverse political, cultural, and economic issues
across and within nations

 Cultural knowledge and understanding of the

events in at least a few other cultures

 Cultural openness and sensitivity to how others

think, act, and feel

 Respectful of social etiquette variations

 Accepting of language differences

 Self-Management Competency

 Developing yourself and taking responsibility

 Integrity and ethical conduct

 Personal drive and resilience

 Balancing work and life issues

 Self-awareness and personal development

activities
 Self-Management Competency

Snapshot

“My strengths and weaknesses haven’t

changed a lot in 51 years. The important
thing is to recognize the things you don’t do
well and build a team that reflects what you
know the company needs.”

Anne Mulcahy, CEO, Xerox

Learning Framework for Managing
Part I: Overview of Management
Part II: Managing the Environment
Part III: Planning and Control
Part IV: Organizing

Part V; Leading