1. Nature and Concept of Management.pptx

NATURE AND CONCEPT OF MANAGEMENT  LESSON OBJECTIVES At the end of the lesson, you should be able to: 1) Discuss the meaning and functions of management; 2) Explain the various types of management theories; and 3) Describe the functions, roles, and skills of managers....

NATURE AND CONCEPT OF MANAGEMENT  LESSON OBJECTIVES At the end of the lesson, you should be able to: 1) Discuss the meaning and functions of management; 2) Explain the various types of management theories; and 3) Describe the functions, roles, and skills of managers. 2  1. DEFINITION OF MANAGEMENT Lesson 1: Nature and Concept of Management MANAGEMEN T “process of coordinating and overseeing the work performance of individuals working together in organizations, so that they could efficiently and effectively accomplish their chosen aims or 4 MANAGEMEN T “is the process of planning, organizing, leading, and controlling the activities of an organization effectively and efficiently to achieve its goals.” 5 MANAGEMEN T “Management is the art of directing and inspiring people”. – J. D. Moony and A. C. Railey 6 MANAGEMEN T “Management is to forecast, plan, organize, command, coordinate, and control activities of others.” - Henri Fayol (1841- 1925) 7 MANAGEMEN T “is a science as well as an art.” It is considered a science because it evolved from many theories involving extensive studies and experiments. 8 MANAGEMEN T It is considered an art because managers look at situations and use creativity and imagination in coming up with solutions to problems. 9  MANAGERS 1) They mobilize resources such as money, raw materials, capital, and human resources to achieve goals about profit, customer service, and corporate social responsibility. 2) Guide, support, and monitor people’s work efforts and performance. 3) Ensure the efficient and effective use of other resources to reach organizational goals. 10  BIG CONCEP T Is efficiency the same as effectiveness? 11 EFFICIENCY vs. EFFECTIVENESS Efficiency Effectiveness Doing things Doing the right right. thing. Ability to use Ability to use resources resources to to get things done as generate maximum they ought to be done. output from every unit of resource input used. 12 13  2. FUNCTIONS OF MANAGEMENT Lesson 1: Nature and Concept of Management  FUNCTIONS OF MANAGEMENT 1.Planning 2.Organizing 3.Staffing 4.Leading 5.Controlling 15  PLANNING “Involves determining the organization’s goals or performance objectives, defining strategic actions that must be done to accomplish them, and developing coordination and integration activities.” 16  ORGANIZING “Demands assigning tasks, setting aside funds, and bringing harmonious relations among the individuals and work groups in the organization.” 17  STAFFING “indicates filling in the different job positions in the organization’s structure.” 18  LEADING “entails influencing or motivating subordinates to do their best so that they would be able to help the organization’s endeavor to attain their set goals.” 19  CONTROLLING “involves evaluating and correcting the performance of the individuals or work groups or teams to ensure that they are all working toward the previously set goals and plans of the organization.” 20  3. LEVELS OF MANAGEMENT Lesson 1: Nature and Concept of Management  LEVELS OF MANAGEMENT Top-level Managers Middle-level Managers Supervisory-level or Frontline Managers 22  TOP-LEVEL MANAGER 1. Establish high performance standards. 2. Institutionalize a set of norms and values to support cooperation and trust. 3. Create the corporate purpose and ambition. 23  MIDDLE-LEVEL MANAGER 1. Develop individuals and support their activities. 2. Link dispersed knowledge and skills across diverse units. 3. Manage the tension between short-term purpose and long- term ambition. 24  FRONTLINE MANAGER 1. Create and pursue new growth opportunities for the business. 2. Attract and develop resources. 3. Manage continuous improvement within the unit. 25  LEVELS OF MANAGEMENT 26  4. MANAGEMENT SKILLS Lesson 1: Nature and Concept of Management  SKILLS OF MANAGEMENT 1.Conceptual 2.Human 3.Technical 28  CONCEPTUAL SKILLS 1. Ability to see the organization as a whole and diagnose the cause-and-effect relationships among many variables at work in the organization. 2. Enable managers to think of possible solutions to complex problems. 29  HUMAN SKILLS 1. Include the manager’s capacity to motivate, lead, and control the behavior of his or her subordinates. 2. A manager should know how to effectively communicate, coordinate, and relate with the employees. 30  TECHNICAL SKILLS 1. Skills that enable one to carry out tasks with proficiency. 2. Important to lower-level managers. 31 MANAGEMENT SKILLS 32  5. MANAGEMENT ROLES Lesson 1: Nature and Concept of Management  ROLES OF MANAGEMENT 1.Decisional 2.Informational 3.Interpersonal 34 MANAGEMENT ROLES 35  6. HISTORY OF MANAGEMENT Lesson 1: Nature and Concept of Management  HISTORY OF MANAGEMENT 37 HISTORY OF MANAGEMENT 38  7. MANAGEMENT THEORIES Lesson 1: Nature and Concept of Management  SCIENTIFIC MANAGEMENT THEORY “a theory of management which studies the application of scientific methods and principles to redesign the work process to increase efficiency.” 40 SCIENTIFIC MANAGEMENT THEORY Frederick W. Taylor, an American engineer, was the first to advocate scientific management. He found that the main cause of inefficiency and wastage in factories was ignorance on the part of workers and management because of the use of Traditional, unscientific rules and rules of thumb. 41  SCIENTIFIC MANAGEMENT THEORY 1. Replace rule-of-thumb methods with those that are scientifically proven. 2. Select, train, and develop each worker based on scientific methods. 3. Cooperate with workers to ensure that scientific methods are being observed and implemented in their work. 4. Divide work between managers and workers to ensure that the managers apply scientific management principles in planning the tasks and workers apply the principles while performing these tasks. 42 SCIENTIFIC MANAGEMENT THEORY 43 SCIENTIFIC MANAGEMENT THEORY Frank and Lillian Gilbreth believed in regulation and consistency in the workplace. Rather than encouraging a company of many working parts, they valued efficiency above all else. 44 SCIENTIFIC MANAGEMENT THEORY This automobile is the product of the applied scientific principles in improving the process of assembling parts as he installed a moving assembly line where workers could concentrate on one task such as the installation of a specific automobile part. 45  SCIENTIFIC MANAGEMENT THEORY 46 ADMINISTRATIVE MANAGEMENT THEORY “focuses on the overall management of an organization, emphasizing the role of managers as administrators of the organization.” 47 ADMINISTRATIVE MANAGEMENT THEORY Henri Fayol identified five functions and fourteen principles of management. The five functions are planning, organizing, communicating, coordinating, and controlling. 48 ADMINISTRATIVE MANAGEMENT THEORY 49 ADMINISTRATIVE MANAGEMENT THEORY Division of work: specialization allows the individual to build up expertise and therefore be more productive; Authority: the right to issue commands, along with the appropriate responsibility; Discipline: two-sided - employees obey orders only if management play their part by providing good leadership; Unity of command: one man-one boss, with no other conflicting lines of command; Unity of direction: staff involved in the same activities should have the same objectives; 50 ADMINISTRATIVE MANAGEMENT THEORY Subordination of individual interest to general interest: the interests of the organization must come first over any group, just as the interests of any agreed team objectives should come first over the individual; Remuneration: should be fair and equitable, encourage productivity by rewarding well-directed effort, should not be subject to abuse; Centralization: there is no formula to advocate centralisation or decentralisation; much depends on the optimum operating conditions of the business; Scalar chain: lateral communication is fundamental; communication should be open within the chain of command; Order: Avoidance of duplication and waste through good organization; 51 ADMINISTRATIVE MANAGEMENT THEORY Equity: "A combination of kindliness and justice" in dealing with employees; Stability of tenure: The more successful the business, the more stable the management. Initiative: Encouraging people to use their initiative is a source of strength for the organization. Esprit de corps: Management must foster and develop the morale of its employees and encourage each employee to use their abilities. 52  BUREAUCRATIC THEORY Max Weber’s profound influence on sociological theory stems from his demand for objectivity in scholarship and from his analysis of the motives behind human action. 53 BUREAUCRATI C THEORY 54 ADMINISTRATIVE MANAGEMENT THEORY Chester Barnard highlights the major functions of the senior executive, namely (1) to formulate the organization’s mission, (2) to hire key employees, and (3) to maintain organizational communication. 55 ADMINISTRATIVE MANAGEMENT THEORY 56 ADMINISTRATIVE MANAGEMENT THEORY Mary Parker Follet recognized the human element in management and emphasized collaboration and mutual cooperation in seeking solutions to problems. 57 ADMINISTRATIVE MANAGEMENT THEORY 58  HUMAN RELATIONS THEORY “It focuses on the social element in the workplace and considers the influence of interpersonal relationships, social conditioning, and group norms in determining the workers’ 59 HUMAN RELATIONS THEORY Elton Mayo, together with his colleagues, came up with these innovative outcomes: (1) introduction of a set number of work hours, (2) the implementation of break times for workers, (3) improvements in lighting in work areas, and (4) close supervision by managers. 60  HUMAN RELATIONS THEORY 61 HUMAN RELATIONS THEORY Abraham Maslow introduced the Hierarchy of Needs where a certain person try to satisfy himself first in lower-level of basic needs such as food, water, clothing, and shelter and then progress upward to higher-level needs such as self-esteem and self- actualization. 62 HUMAN RELATIONS THEORY 63  QUANTITATIVE MANAGEMENT THEORY “Quantitative management uses quantitative approaches such as statistical analyses and computer simulations to arrive at management decisions.” 64  QUANTITATIVE MANAGEMENT Two main branches: Management Science – uses mathematics in problem-solving and decision-making. It seeks to create ideal models that will be the basis for improved business operations and processes. Operations management – seeks to apply ideas and models from management science to the actual workplace in dealing with managerial situations. 65 QUANTITATIVE MANAGEMENT 66 SYSTEM THEORY “The systems theory explains how interrelated parts operate together to achieve a common purpose.” 67  SYSTEM THEORY It defines an organization as a system which is composed of four elements: (1)Inputs (human resources/materials) (2)Transformation processes (managerial operations/technology) (3)Outputs (products/services), and (4)Feedback (reactions from the environment). 68 SYSTEM THEORY 69 OPEN vs. CLOSED SYSTEM Open System Closed System refers to an refers to an organization organization that that does not interact interacts closely with its environment with its environment and pays little and is fully aware of what is going on in attention to changes the environment as in its surroundings. well as the changes it experiences. 70 SYSTEM THEORY 71  CONTINGENCY THEORY “argues that universal theories cannot be applied to organizations because each organization has unique characteristics and is confronted by varied problems or challenges.” 72  CONTIGENCY THEORY This theory was introduced in 1967 by Fred Fiedler, an industrial an organizational psychologist who studies the relationship between leadership and group effectiveness. Fiedler’s contingency model states that the leader’s personality determines how well he or she addresses situations in the workplace. 73 CONTINGENCY THEORY 74  QUALITY MANAGEMENT THEORY “highlights consistency in an organization and minimal to no error or defects in production. This ensures quality products and services resulting to high customer satisfaction and increased revenue.” 75  QUALITY MANAGEMENT THEORY 76  QUALITY MANAGEMENT THEORY William Edwards Deming conducted his work in the 1950s in post-war Japan and his methods involved statistical process control (SPC) and problem- solving techniques. Deming’s significant principles include improved product design for improved service, uniform product quality, improved product testing, and increased market sales. actualization. 77  QUALITY MANAGEMENT THEORY 78  QUALITY MANAGEMENT THEORY Joseph Moses Juran also worked with Japanese businesses and introduced his concept of quality management which emphasized training for top and middle managers. 79  QUALITY MANAGEMENT THEORY - JURAN 80  QUALITY MANAGEMENT THEORY 81  KAIZEN “Introduced in 1986 it focuses on the continuous improvement of people, processes, and products. It is a Japanese word which means “change for the better” and requires the implementation of gradual changes in an industry or organization over a certain period.” 82  QUALITY MANAGEMENT THEORY - KAIZEN 83 84