Management: Definition and Functions

• Management is studied at Ateneo de Naga University, Senior High School under Accountancy, Business, and Management.
• The summary will define management and describe each of its functions

Management Definition

• Management comes from the Italian word "maneggiare," which means "to handle".
• "Maneggiare" comes from the Latin words "manus," meaning "hand," and "agere," meaning "to act".
• Mary Parker Follet defined management as "the art of getting things done through people”.
• Henri Fayol defined management as forecasting, planning, organizing, commanding, coordinating, and controlling.
• Management is the process of deciding how to best use an organization's resources to produce goods or provide services (Ghillyer, 2014).
• Management is the group responsible and accountable for directing the workforce to meet organizational goals (Lorenzana, Carlos, 2003).
• Management is working with and through others to achieve organizational objectives in a changing environment (Kreitner, 2010).
• Mastery of management is vital to organizational success.
• Management could be referred to as applied economics

Organizational Resources

• Resources that are important include:
• Employees
• Equipment
• Money

Management Requisites

• Management must make good decisions.
• Management must communicate well with people.
• Management must make work assignments.
• Management must delegate.
• Management must plan.
• Management must train people.
• Management must motivate people.
• Management must appraise employees' job performance.

Kreitner's Five Components

• Working with and through others is a key component.
• Management is seen as a social process.
• Managers achieve goals by working with and through others.
• Aspiring managers need good interpersonal skills to advance.
• Achieving organizational objectives is another aspect.
• Objectives are targets to strive for and to attain.
• Organizations thrive with challenging but achievable goals.
• Collective action is essential for reaching organizational goals.
• Balancing effectiveness and efficiency are important.
• Efficiency is vital and is related to the relationship between inputs and outputs.
• Making the most of limited resources is necessary.
• Managers are trustees of limited resources like land, labor, and capital.
• These resources should be used efficiently and effectively in productive organizations.
• Coping with a changing environment is a factor.
• Successful managers anticipate and adjust to changing circumstances.

Balancing Effectiveness and Efficiency

• EFFICIENCY is regarding the relationship between inputs and outputs and managing costs.
• Getting more output from a given input increases efficiency.
• Getting the same output from less input also increases efficiency.
• Management is concerned with minimizing resource costs because managers deal with scarce input resources.
• Efficiency is often referred to as “doing things right," and the avoidance of wasting resources.
• EFFECTIVENESS means that managers achieve organizational goals.
• It is referred to as "doing the right things" or work activities that help the organization reach its goals.
• Efficiency is concerned with the ways/means of getting things done.
• Effectiveness is concerned with the ends, or attainment of organizational goals.

Management: Art or Science?

• Management as an art: Practical application of knowledge from study, experience, and observation.
• It emphasizes applying skills and techniques for desirable results.
• Management as a science involves a body of knowledge with systematically arranged facts/truths and acceptable standards and laws.
• Managing practice is an art and the organized knowledge about management is a science.

Manager's Job:

• A "Manager" is an individual responsible for tasks or a subset of a company and often has reporting staff.
• A manager's job is to lead staff towards a common goal.
• A manager ensures the organization's goals are carried out by their department based on the organization's plans.

Functions of a Manager:

• Planning is the basic function that deals with plotting and writing down of action plans and decisions in advance to achieve goals.
• The manager plans future actions and thinks about ways to accomplish goals.
• Organizing involves bringing together physical, financial, and human resources, and developing productive relationships for achieving organizational goals.
• Managers figure out the number of personnel needed and it involves delegation and coordination among staff.
• Staffing involves determining personnel needs and selection, orientation, training, and evaluation to ensure the right individuals are in the right positions.
• Staffing's purpose is to put the right people on the right jobs and involves manpower planning, recruitment, training, development, performance appraisal, and promotion.
• Leading requires managers to supervise, lead, motivate, coach, train, guide, and direct subordinates to work efficiently and effectively.
• Controlling measures and corrects performance activities of subordinates to ensure enterprise objectives and plans are accomplished
• It involves the establishment of standards of performance, measurement of actual performance, comparison of actual performance versus standards, and corrective action

Types of Roles of Managers:

• Interpersonal Roles
• Figurehead: Representing the unit in ceremonial and civic activities.
• Leadership: Initiating and coordinating activities within their units.
• Liaison: Interacting with people in other units inside and outside the organization.
• Informational Roles
• Monitor: Monitoring activities outside the office.
• Disseminator: Transmitting information to other parts of the organization.
• Spokesperson: Representing and speaking for their units.
• Decisional Roles
• Entrepreneurial: Identifying new opportunities and developing them into new products, services, methods, or activities.
• Problem Solver: Identifying solutions and taking action to overcome problems.
• Resource Allocator: Distributing funds, personnel, materials, and other organizational resources.
• Negotiator: Frequently involved in activities that impact performance.

Management Skills:

• Conceptual: A manager must be able to see the "big picture" to create ideas and visualize plans.
• Technical: A manager must possess specific knowledge and the ability to use different techniques.
• Human: A manager must have interpersonal relationship skills and work well with others.

Evolution of Management Studies:

• There are 5 main theories
• They include:
• Scientific Management
• Administrative Management Theory
• Behavioral Management Theory
• Management Science Theory
• Organizational Environment Theory

Scientific Management

• Scientific management uses scientific methods to determine the "one best way" to perform a job which conducts business by standards established by facts/truths gained through observation, experiment, or reasoning.
• Frederick W. Taylor (1856-1915) is the “Father of Scientific Management”.
• Taylor made a scientific study of workers, machines, and workplaces by using parts standardization, work structure uniformity, and the assembly line.
• It continues as the basis for continuous improvement in productivity and efficiency.

Taylor’s Four Principles of Scientific Management

• Replace rule of thumb with the scientific method to study work and find efficiency.
• Match workers to jobs based on capability and motivation, and train them to work at maximum efficiency
• Monitor worker performance and provide instruction and supervision to ensure the most efficient methods are used.
• Allocate work between managers and workers to allow managers to plan and train, enabling efficient task performance for workers.

Administrative Management Theory

• It involves using people to manage and design information and structure within the organization.
• The primary focus is information and people because people leverage information to add value.
• Henri Fayol (1841-1925) is recognized as the farther of modern management

Fayol's 14 Principles of Management

• Division of Work: Labor specialization is necessary for organizational success.
• Authority: The right to give orders must accompany responsibility.
• Discipline: Obedience and respect are helpful for an organization to run smoothly.
• Unity of Command: Each employee should receive orders from only one superior.
• Unity of Direction: Everyone's efforts should be coordinated and focused.
• Subordination of Individual Interest to the General Interest: Resolving the tug of war between personal and organizational interest is great to increase team productivity.
• Remuneration: Employees should be paid fairly based on contribution and that there should be “equal work, and pay”.
• Centralization: Authority must be concentrated to a certain extent.
• Scalar Chain: Subordinates should observe the formal chain of command.
• Order: Material things and people should be in their proper places.
• Equity: Fairness that results from kindliness and justice will lead to service.
• Stability and Tenure of Personnel: People need time to learn their job.
• Initiative: Fayol exhorts managers to prioritize to allow subordinates to exercise initiative.
• Esprit de Corps: "In unity, there is strength."

Max Weber's Administrative Management Theory

• Another administrative theory proponent is Max Weber (1864-1920).
• Weber is the “Father of Bureaucracy”.
• Bureaucracy has a division of labor, a clear hierarchy, career advancement based on merit, rules/decisions based on written format, and impersonal relationships.

Behavioral Management Theory

• It focuses on the human aspect of work and is often called the human relations movement.
• Theorists believed a better understanding of human behavior at work improved productivity and saw employees as assets, not machines.
• Human relations movement was supported by 3 historical influences:
• Threat of unionization
• The Hawthorne studies
• Philosophy of industrial humanism

Threat of Unionization:

• After the Wagner Act of 1935 legalized union-management collective bargaining, management began seeking ways to prevent all-out unionization.
• Early human relations theory proposed that satisfied employees would be less inclined to join unions.
• Business managers began adopting morale-boosting human relations techniques to discourage unionization.

The Hawthorne Studies:

• It is a small scientific management study on the light intensity/productivity relationship.
• Select employees' performance improved, no matter how the physical surrounding was manipulated as relationships between workgroup members and workers and their supervisors became significant.
• The study stresses the importance of human relations and the social needs of workers.

Philosophy of Industrial Humanism:

• 1.Elton Mayo urged managers to provide work that fostered satisfaction and called for a social order designed to stimulate cooperation
• 2. Mary Parker Follet urged managers to motivate performance, promote cooperation and foster self-control to increase productivity.
• 3.Douglas McGregor saw the typical employee as energetic and creative and should thus be given opportunities to achieve great things.

Management Science Theory:

• Management science theory involves the quantitative approach to management.
• It uses quantitative techniques, including applications of statistics, optimization models, information models, and computer simulations.
• It originated during World War II to create mathematical and statistical solutions to military problems.
• It contributes to managerial decision-making, especially in planning and controlling.

Organizational Environment Theory:

• Theorists recognized human factors alone were insufficient for achieving organizational effectiveness.
• Organizations are affected by social, technical, and economic factors.
• There are 2 basic system types:
• A Closed System, with no environment interaction
• An Open System, interacting with its environment
• It is helpful to use the systems approach managers to visualize the organization as a whole and coordinate activities.