Unit 1 Management And Its Theories PDF

AgExt 43 Unit 1. Management and its Theories Prepared by: ANGEL ROSE C. TAMAYO Course Facilitator History  Manage comes from the Italian “maneggiare“ which means to handle, train, be in charge of.  Maneggiare comes from the Latin word manus...

AgExt 43 Unit 1. Management and its Theories Prepared by: ANGEL ROSE C. TAMAYO Course Facilitator History  Manage comes from the Italian “maneggiare“ which means to handle, train, be in charge of.  Maneggiare comes from the Latin word manus means hand.  The French word ‘mesnagement‘ (later menagement) influenced the development of the English word management in the 15th and 16th centuries.  Frederick Winslow Taylor –the Father of scientific Management. Definition of management  Management- is a creative, dynamic process designed to establish and maintain an environment in which people can work together to accomplished objectives/ desired results or goals. - These objectives should not be competing or conflicting but rather as mutually supportive and attainable. Who is a Manager?  A manager is a person responsible for the work performance of subordinates.  He/ she has the formal authority to commit organizational resources, even if the approval of others is required. Types of Managers  Functional managers- supervise the work of employees engaged in specialized activities such as accounting, engineering, food preparation, etc. They managed specialist and of their administrative and clerical support.  General manager- are responsible for the work of several different groups performing a variety of functions. Company presidents are general managers. What is an Organization ?  An organization is a group of two or more people working together as agreed to attain a set off goals.  It is the setting in which manager practices management; there is no opportunity to practice management when the efforts of only one person are involved. Resources Used by Managers  Human resources- are the employees needed to get the job done. Managers goals influence which employees they choose.  Financial resources- include the money that the manager and the organization use to reach organizational goals.  Physical resources- are the organizations tangible goods and real estate, including raw materials, office space, production facilities, office equipment and vehicles.  Informational resources- these are the data that the manager and the organization use to get the job done. Main objectives of management  1. Getting maximum results with minimum efforts – management is concerned with thinking and utilizing human, material and financial resources in such a manner that would result in best combination that would reduce various costs.  2. Increasing the efficiency of factors of production – to increase efficiency by reducing spoilage, wastages and breakage of all kinds, which could lead to saving of time, effort and money essential for growth and prosperity.  3. Maximum prosperity for employer and employees – ensures smooth and coordinated functioning in order to provide maximum benefits to the employees and higher profits to employer.  4. Human betterment and social justice –management serve as a tool for the upliftment and betterment of the society through increased productivity and employment, to ensure better standards of living and provides justice through uniform policies. Importance of Management  It helps in Achieving Group Goals  Optimum Utilization of Resources  Reduces Costs  Establishes Sound Organization  Establishes Equilibrium (personal interest and General Interest, learning time and productive time, authority and responsibility)  Essential for Prosperity of organization Four Major Managerial Functions . Planning – involves setting goals and figuring out ways of reaching them. * Planning is considered as the central function of management and it pervades anything a manager does. * Planning is deciding in advance – what to do, when to do, and how to do. It bridges the gap from where we are and where we want to be. A plan is a future coarse of action. It is an exercise in problem solving and decision making.  Organizing – is the process of making sure there are available human and physical resources to carry out a plan, thereby achieving organizational goals. *Organizing process involves the following: - -Identification of activities. - - classification and grouping of activities. - - assignment of duties. - - delegation of authority and creation of responsibility. - - coordinating authority and responsibility relationships.  Leading – is the managerial function of influencing others to achieve organizational objectives; accomplishing results through people.  - this involves interpersonal processes: motivating, communicating, coaching, and showing subordinates how they can reach there goals.  - leading involves influencing people, it requires many different actions by the manager.  -directing sets in motion the action of people because of planning, organizing and staffing are the mere preparations of doing work.  Controlling – is the managerial function of ensuring that performance conforms to plan. - it is comparing actual performance to a predetermined standard. -Any significant different between actual and desired performance necessities corrective action from the manager. -controlling has the following steps: *establishment of standard performance. * measurement of actual performance. * Comparison of actual performance with the standards of finding out deviation if any. * corrective action.  Managerial Skills  Technical skills – involves in understanding and proficiency in a specific activity that involves methods, processes, procedures, or techniques. Technical deals with things.  Human skills – is the manager‘s ability to work effectively as a team member and to build cooperative effort in the unit. Human skills deals with people.  Conceptual skills – the ability to see the organization as a total entity, particularly needed at top-level management. The ability to see complex situations, see the bigger picture, and develop innovative solutions.  Diagnostic skills – to investigate a problem and then decide on and implement a remedial course of action.  Political skills - being able to get a share of power and to prevent and to prevent others from taking power away from you. The ability to effectively understand others at work, and to use such knowledge to influence others to act in ways that enhance one’s personal and/or organizational objectives.  Management Principles developed by Henry Fayol  1. DIVISION OF WORK: Work should be divided among individuals and groups to ensure that effort and attention are focused on special portions of the task. Fayol presented work specialization as the best way to use the human resources of the organization.  2. AUTHORITY: The concepts of Authority and responsibility are closely related. Authority was defined by Fayol as the right to give orders and the power to exact obedience. Responsibility involves being accountable, and is therefore naturally associated with authority. Whoever assumes authority also assumes responsibility.  3. DISCIPLINE: A successful organization requires the common effort of workers. Penalties should be applied judiciously to encourage this common effort.  4. UNITY OF COMMAND: Workers should receive orders from only one manager.  5. UNITY OF DIRECTION: The entire organization should be moving towards a common objective in a common direction.  6. SUBORDINATION OF INDIVIDUAL INTERESTS TO THE GENERAL INTERESTS: The interests of one person should not take priority over the interests of the organization as a whole.  7. REMUNERATION: Many variables, such as cost of living, supply of qualified personnel, general business conditions, and success of the business, should be considered in determining a worker’s rate of pay.  8. CENTRALIZATION: Fayol defined centralization as lowering the importance of the subordinate role. Decentralization is increasing the importance. The degree to which centralization or decentralization should be adopted depends on the specific organization in which the manager is working. Centralized management is when only the executives at an organization manage the planning and decision-making responsibilities.  9. SCALAR CHAIN: Managers in hierarchies are part of a chain like authority scale. Each manager, from the first line supervisor to the president, possess certain amounts of authority. The President possesses the most authority; the first line supervisor the least. Lower level managers should always keep upper level managers informed of their work activities. The existence of a scalar chain and adherence to it are necessary if the organization is to be successful  10. ORDER: the workplace facilities must be clean, tidy and safe for employees. Everything should have its place.  11. EQUITY: All employees should be treated as equally as possible.  12. STABILITY OF TENURE OF PERSONNEL: Retaining productive employees should always be a high priority of management. Recruitment and Selection Costs, as well as increased product-reject rates are usually associated with hiring new workers.  13. INITIATIVE: Management should take steps to encourage worker initiative, which is defined as new or additional work activity undertaken through self direction.  14. ESPRIT DE CORPS: Management should encourage harmony and general good feelings among employees.  Hope you learn a lot from our lesson! God said “ Child if you never felt pain, how would you know I am a healer? If you never felt sadness how would you know I am a comforter? Child if life is perfect, would you still know me?”