Organization and Management

Chapter 1
Learning Competency:
Explain the meaning,
functions, types, and
theories of management

Code:
ABM_AOM11-Ia-b-2
 Explain the meaning of
management;

Identify the functions of

management;
Learning
Objectives Identify the types of
management; and

Illustrate the evolution of

management theories
 Management
The verb manage comes from the
Italian maggiore (to handle —
especially a horse), which derives
from the Latin manus (hand).

The French word management

(later ménagement) influenced the
development of the English word
management in the 17th and 18th
centuries.
Management

Management is the attainment of organizational goals in an

effective and efficient manner through planning, organizing,
staffing, directing and controlling organizational resources.

Organizational resources include men(human beings), money,

machines and materials.
Management

- the act of getting people together to accomplish desired

goals and objectives

- comprises planning, organizing, staffing, leading or

directing, and controlling an organization (a group of one
or more people or entities) or effort to accomplish a goal.

- the systematic arrangement of available resources for

accomplishing organizational activities to achieve the
desired goal.
Manage-MEN-T
-indicates that management is
managing men in a specified
direction to accomplish
organizational objectives.
-managing men tactfully for
corporate benefits.
Other definitions
Other definitions
"the art of getting things done
through people.“
- Mary Parker Follet (considered
as the mother of modern
management)
Other definitions

The use of people and other

resources to accomplish
objectives.
- Louis E. Boone & David
L. Kurtz
Other definitions

Management is the art of

knowing what you want
to do in the best and
cheapest way
- Frederick Taylor
Theo Haimann, in the book "Professional Management – Theory and
Practice," defines Management in three distinct senses/concepts:

1. As a process
2. As a discipline
3. As a noun
Management as a Process
Since Management is interlinked with the productive use of materials
and human resources, it passes across the seven different functions
explained by Henri Fayol, such as Planning, Organizing, Leading,
Coordinating, Controlling, Staffing, and Positive Motivation for the
accomplishment of the desired goal.
Management as a Discipline
It is regarded as Discipline because it involves the study of principles
and practices of Management. It is the subject studied now formally in
campuses and universities
Management as a Noun
It refers to all personnel involved in policymaking and supervisory and
controlling responsibilities. There may be a Board of Directors,
Managing Directors, General Managers.
Characteristics of Management
1. Management is Goal-oriented:
Management is always directed
towards its goal. Management has no
existence without a purpose, so it has
to be systematically handled for
achievement. Objectives direct
effective Management. The
fundamental goal of every
organization is to maximize the
efficiency and ideals of human
resources/efforts. Success management
is measured by the extent to which the
established goals are achieved.
2. It is Universal:
The Management
applies in all kinds and
sizes of organizations
and to all forms of
organizations such as
government sector,
private level,
individual-level, and
limited private level.
3. It is an Integrative process:
The responsibility of Management is
welding the three-factor men, methods,
and machinery into a single working
factor. The primary purpose of good
management is to build a mutual
relation between available human
resources and other resources to
accomplish the desired goal. It is
essential to interlink with planning,
organizing, staffing, personnel,
direction, and controlling. The manager
links the customer, society, labor,
debtors and creditors, and government.
4. It is intangible:
The process involves in it is
immaterial, it is an unseen force
that brings resources to a surface
to perform as the task of any
organization, but its results are
apparent. Operations cannot be
seen, but Management is judged
based on the result achieved.
5. It is a dynamic and
continuous process:
Since it is a dynamic (active,
self motivated) function and
has to be performed
continuously, it operates
involved in the performance of
an everchanging environment.
Management adopts itself to
environmental changes and
also introduces innovation in
the methodology.
6. It has separate
identity:
Since it is the process
done through the top
level of Management
who keeps on-going the
policy formation, it may
depend on what the
management groups
think, so it has a separate
identity
Functions of
Management
For theoretical purposes, it may
be convenient to separate the
function of management but
practically these functions are
overlapping in nature i.e. they
are highly inseparable. Each
function blends into the other
& each affects the performance
of others.
Planning
• It is the basic function of
management. It deals with chalking
out a future course of action &
deciding in advance the most
appropriate course of actions for
achievement of pre-determined
goals.
• According to KOONTZ, “Planning is
deciding in advance - what to do,
when to do & how to do. It bridges
the gap from where we are & where
we want to be”.
• A plan is a future course of actions. It is an
exercise in problem solving & decision making.
• Planning is determination of courses of action to
achieve desired goals. Thus, planning is a systematic
thinking about ways & means for accomplishment of
pre-determined goals.
• Planning is necessary to ensure proper utilization of
human & non-human resources. It is all pervasive, it
is an intellectual activity and it also helps in avoiding
confusion, uncertainties, risks, wastages etc.
Organizing
• It is the process of bringing
together physical, financial and
human resources and developing
productive relationship amongst
them for achievement of
organizational goals.
• According to Henry Fayol, “To
organize a business is to provide
it with everything useful or its
functioning i.e. raw material,
tools, capital and personnel’s”.
To organize a business involves determining &
providing human and non-human resources to the
organizational structure. Organizing as a process
involves:
Identification of activities.
Classification of grouping of activities.
Assignment of duties.
Delegation of authority and creation of
responsibility.
Coordinating authority and responsibility
relationships.
 Staffing
• It is the function of manning the
organization structure and keeping
it manned. Staffing has assumed
greater importance in the recent
years due to advancement of
technology, increase in size of
business, complexity of human
behavior etc.
• The main purpose of staffing is to
put right man/woman on right
job i.e. square pegs in square holes
and round pegs in round holes.
According to Koontz & O’Donell, “Managerial function of staffing
involves manning the organization structure through proper
and effective selection, appraisal & development of personnel
to fill the roles designed un the structure”.
Staffing involves:
Manpower Planning (estimating manpower in terms of
searching, choose the person and giving the right place).
Recruitment, Selection & Placement.
Training & Development
Remuneration
Performance Appraisal
Promotions & Transfer
Directing • It is that part of managerial
function which actuates the
organizational methods to
work efficiently for
achievement of organizational
purposes.
• It is considered life-spark of
the enterprise which sets it in
motion and action of people,
because planning, organizing
and staffing are the mere
preparations for doing the
work.
Direction is that inter-personnel aspect of management which deals
directly with influencing, guiding, supervising, motivating sub-ordinate
for the achievement of organizational goals. Direction has following
elements:
Supervision- implies overseeing the work of subordinates by their
superiors. It is the act of watching & directing work & workers.
Motivation- means inspiring, stimulating or encouraging the sub-
ordinates with zeal to work. Positive, negative, monetary, non-
monetary incentives may be used for this purpose.
Leadership- may be defined as a process by which manager guides
and influences the work of subordinates in desired direction.
Communications- is the process of passing information, experience,
opinion etc from one person to another. It is a bridge of
understanding.
 • It implies measurement of
Controlling accomplishment against the standards
and correction of deviation if any to
ensure achievement of organizational
goals.
• The purpose of controlling is to ensure
that everything occurs in conformities
with the standards. An efficient system of
control helps to predict deviations before
they actually occur.
• According to Theo Haimann, “Controlling is
the process of checking whether or not
proper progress is being made towards
the objectives and goals and acting if
necessary, to correct any deviation”.
According to Koontz & O’Donell “Controlling is the
measurement & correction of performance activities of
subordinates in order to make sure that the enterprise
objectives and plans desired to obtain them as being
accomplished”.
Therefore controlling has following steps:
[Link] of standard performance.
[Link] of actual performance.
[Link] of actual performance with the standards and
finding out deviation if any.
[Link] action.
Activity 1: Don’t The class will be divided
into 5 groups to play
Say A Word charade. Each group will be
given 3 words from their
assigned function of
management. A team
member will act out the
words and the remaining
group members will guess
the word.
The group who guessed all 3
words with the shortest time
is the WINNER.
9 Types of
Management Styles
Management styles describe the distinct
approaches that different managers take to
support and guide a team at work. All
managers have the same responsibilities, but
management styles describe how different
types of managers specifically use their
managerial toolkit to motivate team
members.
As a manager, it’s your responsibility to
provide clarity and context so your team
members can get their best work done. Great
managers are dot connectors, context
providers, and clarity creators. But every
manager takes a different approach
to how they do that.
 Autocratic managers centralize the decision-
making process.
On these teams, the manager usually makes
the majority of decisions—including what the
team should focus on, what short- and long-
term goals they should work toward, and which
1. Autocratic tasks and projects are associated with these
initiatives.
A manager with an autocratic management
style will then delegate work to the team
member they think is best suited for the job.
This is the most top-down approach to
management.
Best for: When decisions need to be
made quickly and there is little
room for error. In crisis situations,
the autocratic style is the way to go.
 One type of autocratic
management is persuasive
management.
The persuasive management style
puts decision-making totally in the
2. Persuasive hands of managers but encourages
managers to share the logic and
rationale behind their decisions.
This helps team members feel
more connected to the decision-
making process.
Best for: Managers
that are leading a more
inexperienced team.
Under this dynamic,
the manager should be
the sole decision-maker
based on their
experience but should
share explanations in
order to help their team
grow.
 Another type of the autocratic style, paternalistic
management is a form of unilateral decision-
making where the team’s best interests are
always kept in mind.
While communication is still one-sided, team
members are heard and decisions are made with
3. their wants in mind.
Paternalistic However, there is no collaboration between the
manager and the team about the decision itself.
In this management style, managers try to create
a feeling of trust within their team. By doing so,
their direct reports are confident their feedback
is taken to heart whenever the manager makes a
decision.
Best for: Organizations
with strong company
culture. If leadership is
able to build strong
bonds within the
organization, team
members can trust that
the right decisions are
being made.
 Democratic, or participative, managers
collaborate with their team members to
distribute the decision-making process.
They invest in their team’s well-being and
career development.
4.
This management style encourages
Democratic creativity and employee engagement.
Though they are still the person making the
final decision, managers who use a
democratic style encourage contributions
from all team members.
Best for: Teams that
are constantly looking
to change and improve
their processes. If you
manage this type of
team, it’s best that
everyone stays on the
same page when it
comes to decision-
making.
 A subset of the democratic
management style, consultative
managers are consistently looking
for feedback from their team and
5. trying to improve in their position.
Consultative Differing from the authoritative
style, consultative managers rarely
make decisions alone but instead
encourage collaboration from their
team.
Best for: Managers
who want to take on
more of a mentor
role. Consultative
managers strive to
educate and
influence their team
through the decision-
making process.
 Another type of democratic management is
the transformational management style.
Used predominantly among creative teams,
transformational managers strive to create a
culture that encourages adaptability,
6. innovation, and problem-solving.
Transformational Transformational managers are invested in
the professional growth of their team and
look less at short-term projects and more at
long-term development.
Oftentimes, this means setting lofty and
challenging goals for team members.
Best for: Fast-moving,
intrinsically-motivated
teams that are always
adapting to new
circumstances. By
integrating adaptability
into their management
style, transformative
managers prepare their
team for whatever may
come their way.
 Laissez-faire managers are the most hands-
off managers.
Laissez-faire literally translates to “let it go”
in French, and this management style leans
into that relaxed, hands-off approach.
7. Laissez-
Laissez-faire managers prefer to give team
faire members nearly full autonomy, and they
typically only meet with team members or
host team meetings if the team requests it.
Otherwise, a laissez-faire manager only
checks in if something went wrong.
Best for: Self-
motivated creative
teams that thrive when
building their own
ideas. This model
works best for teams
that work individually
and don’t require much
supervision.
 A type of laissez-faire management, the visionary
management style is less concerned with the day-to-
day operations and more interested in educating
team members about the larger vision of the
organization.
Visionary managers tend to motivate and inspire
rather than give instructions about day-to-day tasks.
8. Visionary These managers tend to be more outgoing and
charismatic.
This style works well for teams that are good at
managing themselves and don’t require much
individual attention.
For less experienced team members, this may not be
the most effective style of management.
Best for: Innovative
teams looking to
disrupt an industry. In
this case, a visionary
leader can be exactly
what a team needs to
continue thinking
outside the box.
 Another type of laissez-faire management,
delegative management refers to a system
where managers and team members only
interact when managers are assigning them
tasks.
From there, the manager will come in at the
9. Delegative end of the project, review the work, and the
cycle will restart.
In this style, team members generally have
the freedom to do tasks in their own way.
Like teams with visionary managers,
members tend to have a strong knowledge of
the work and how it needs to be done.
Best for: Employees
with more expertise
than their manager. In
cases like this, the
manager should
facilitate rather than
support and give
feedback.
Activity 2

The class will be divided into 10

groups. They will illustrate
through role-playing an assigned
type of managerial style.

Group 10 will grade the groups

based on the given rubric.
Evaluation