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REFERENCES:
 Management. Leading & Collaborating in a Competitive World
 Introduction to Management Science
By: Bernard W. Taylor III
 Fundamentals of Management
By: Andrew J. Dubrin
 Principles of Management and Organization
 Business Organization and Management
By: Dr. Roberto G. Medina. 2007
 Quantitative Techniques for Business Management 2nd Edition: (Textbook-
Workbook)
By: Praxedes Solina Victoriano
 Study Guide for Use with Introduction to Management Science
By: Paul D. Van Ness, James J. Cochran, William J. Stevenson. Richard D. Irwin
 Management Science: A Practical Approach to Decision Making
By: Dunn and Ramsing

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INTRODUCTION TO MANAGEMENT

 LEARNING OUTCOMES
At the end of the unit, students will be able to:
1. Discuss the definition, history and nature
of management
2. Differentiate and analyze the functions of
management

Choose one (1) word from the picture and

explain how it is related to Management.

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INTRODUCTION TO MANAGEMENT

BUSINESS - includes all profit-seeking activities of

enterprises that provide goods and services
necessary to an economic system. (Medina, 2007)

FORMS OF BUSINESS ACTIVITIES OF BUSINESS

• Sole Proprietorship • Financing Activities
• Partnership • Investing Activities
• Corporation PURPOSES OF BUSINESS • Operating Activities
• Service
• Merchandising
• Manufacturing

MANAGEMENT
 It is a process or form of work that involves
the guidance and direction of a group of
people toward organizational goals or
objectives. (Terry and Rue)
 It is the process of planning, organizing,

leading and controlling the efforts of

organization members and of using all
other organizational resources to achieve
stated organizational goals. (Stoner)

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Functions of Management
 Planning – the process of setting the objectives to be
accomplished by a firm during a future time period & deciding on
the methods of reaching them.
 Organizing – the process of grouping and assigning activities
and providing the necessary authority to carry-out activities.
 Staffing – the process of filling positions in the organizational
structure with the most qualified people available.
 Motivating – the process of getting people to contribute their
maximum effort toward the attainment of organizational
objectives.
 Controlling – the process of ensuring the achievement of an
organization’s objectives.

MANAGEMENT

 Processes involved in the Managerial Functions

 Decision-making – the process of choosing from one or
more alternatives.
 Communicating – the process of exchanging facts,
ideas, opinions and emotions between two or more
persons.

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NATURE OF MANAGEMENT
 Management is a SCIENCE.

NATURE OF MANAGEMENT

 Management is an ART.

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NATURE OF MANAGEMENT

 Management as a PROFESSION.

History of Management

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A Timeline of Management & Leadership

 1880 - Scientific Management

 Frederick Taylor decides to time workers at the Midvale Steel
Company for their rated output. His view of the future becomes
foretelling:
 ―In the past man was first. In the future the system will be first.‖ - Frederick
Taylor
 In Taylor's scientific management approach, the managers
were elevated in status, while the workers' roles were negated.
 "Science, not rule of thumb, - Frederick Taylor
 The decisions of supervisors, based upon experience and
intuition, were no longer important. Employees were not allowed
to have ideas or responsibility. Yet the question remains — is this
promotion of managers to center-stage justified?

A Timeline of Management & Leadership

 1929 - Taylorism
 The Taylor Society publishes a revised and
updated practitioner's manual: Scientific
Management in American Industry.

 1932 - The Hawthorne Studies

 Elton Mayo becomes the first to question the
behavioral assumptions of scientific management.
 The studies concluded that human factors were
often more important than physical conditions in
motivating employees to greater productivity.

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A Timeline of Management & Leadership

 1946 - Organization Development

 Social scientist Kurt Lewin launches the Research Center for
Group Dynamics at the Massachusetts Institute of Technology.
His contributions in change theory, action research, and action
learning earn him the title of the “Father of Organization
Development:” the systematic application of behavioral
science knowledge at various levels (group, intergroup, and
total organization) to bring about planned change.

 Lewin is best known for his work in the field of organization

development and the study of group dynamics. His research
discovered that learning is best facilitated when there is a
conflict between immediate concrete experience and detached
analysis within the individual.

A Timeline of Management & Leadership

 1949 - Sociotechnical Systems Theory

 A group of researchers from London's Tavistock Institute of
Human Relations, led by Eric Trist, studied a South Yorkshire
coal mine in 1949. Their research leads to the development
of the Sociotechnical Systems Theory, which considers both
the social and the technical aspects when designing jobs.
 It marks a 180-degree departure from Frederick Taylor's
scientific management. There are four basic components to
sociotechnical theory:
 environment subsystem
 social subsystem
 technical subsystem
 organizational design

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A Timeline of Management & Leadership

 1954 - Hierarchy of Needs

 Maslow's hierarchy of
needs theory is published
in his book Motivation and
Personality.
 This provides a framework
for gaining employees'
commitment.

A Timeline of Management & Leadership

 1954 - Leadership/Management
 Peter Drucker writes The Practice of Management and
introduces the five basic roles of managers:
 Setting Objectives and Planning
 Organizing the Group
 Motivating and Communicating
 Measuring Performance
 Developing People (including himself or herself)
 He writes:
 The first question in discussing organization structure must be:
What is our business and what should it be?
 Organization structure must be designed so as to make possible
the attainment of objectives of the business for five, ten, fifteen
years hence.

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A Timeline of Management & Leadership

 1959 - Hygiene and

Motivational Factors
 Frederick Herzberg developed
a list of factors that are closely
based on Maslow's Hierarchy of
Needs, except it is more closely
related to work.
 Hygiene factors must be present
in the job before motivators can
be used to stimulate the
workers.

A Timeline of Management & Leadership

 1960 - Theory X and Theory Y

 Douglas McGregor's Theory X & Theory Y principles
influence the design and implementation of personnel
policies and practices.

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A Timeline of Management & Leadership

 Late 1960s - Action Learning

 An Unheralded British academic, Reginald W. Revans was
invited to try out his theories in Belgium — Action
Learning — it leads to an upturn in Belgian's economy.
 Unless your ideas are ridiculed by experts they are worth
nothing. - the British academic Reg Revens, creator of action
learning:
 L = P + Q ([L] Learning occurs through a combination of
programmed knowledge [P] and the ability to ask insightful
questions [Q])
 Note that Revens work has had little impact on this side of
the ocean, although it remains one of the best ways to learn
and to bring about productive change in the organization.

A Timeline of Management & Leadership

 1964 - Management Grid
 Robert Blake and Jane Mouton develop a management model that
conceptualizes management styles and relations.
 Their grid uses two axes: "concern for people" is plotted using the vertical axis
and "concern for task" is along the horizontal axis. The notion that just two
dimensions can describe a managerial behavior has the attraction of simplicity.

 1978 - Performance Technology

 Tom Gilbert publishes Human Competence: Engineering Worthy Performance. It
describes the behavioral-engineering model that became the bible of
performance technology.
 Gilbert wrote that accomplishment specification is the only logical way to define
performance requirements.
 Accomplishments are the best starting points for developing performance
standards. In addition, accomplishments are the best tools for the development
of performance-based job descriptions as they allow management to describe
the measurement that is important to the organization, specific to the position,
and observable.

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A Timeline of Management & Leadership

 1978 - Excellence
 McKinsey's John Larson asks his colleague, Tom Peters,
to step in at the last minute and make a presentation
that leads to In Search of Excellence.
 Thus, Tom Peters spawns the birth of the ―Management
Guru Business.‖

A Timeline of Management & Leadership

1990 - Learning Organization
 Peter Senge popularized the Learning Organization in The Fifth
Discipline: The Art and Practice of the Learning Organization. He
describes the organization as an organism with the capacity to
enhance its capabilities and shape its own future.
 A learning organization is any organization (e.g. school,
business, government agency) that understands itself as a
complex, organic system that has a vision and purpose. It uses
feedback systems and alignment mechanisms to achieve its goals.
It values teams and leadership throughout the ranks.
 He called for five disciplines to become a learning organization:
 System Thinking
 Personal Mastery
 Mental Models
 Shared Vision
 Team Learning

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A Timeline of Management & Leadership

1995 - Ethics
 On December 11, 1995, a fire burned most of Malden Mills to the ground
and put 3,000 people out of work. Most of the 3,000 thought they were
out of work permanently.
 CEO Aaron Feuerstein says, ―This is not the end‖ — he spent millions
keeping all 3,000 employees on the payroll with full benefits for 3 months
until he could get another factory up and running. Why? He answers, ―The
fundamental difference is that I consider our workers an asset, not an
expense.‖

Business Process Management (BPM) - 2000

 This is actually a slow advance in process management that has the
following roots:
 Record Management
 Workflow - 1970
 Business Process Re-engineering (BPR) - 1990
 Business Process Management (BPM) - 2000

A Timeline of Management & Leadership

 Drive Theory (Motivation) - 2009

 While the concept of Drive in motivational theories has been
around in since the early 1900s, and was researched in
depth by Edward L. Deci, Daniel Pink popularized the
concept with his book, Drive: The Surprising Truth About
What Motivates Us.
 Pink argues against old models of motivation driven by
rewards and fear of punishment by extrinsic factors, such as
money, and lays forth the premise that human motivation is
largely intrinsic, and that the aspects of this motivation can
be divided into:
 autonomy - the desire to be self-directed
 mastery - we want to get better at doing things
 purpose - connecting to a cause larger than yourself

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PLANNING

The Planning Process

 Setting organizational, divisional, or unit goals

 Developing strategies or tactics to reach those goals

 Determining resources needed

 Setting standards

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Types of Plans
 Functional Area Plans
 Marketing Plan – the written document or blueprint for
implementing and controlling an organization’s marketing
activities related to a particular marketing strategy.
 Production Plan - a written document that states the
quantity of output a company must produce in broad terms
and by product family.
 Financial Plan - a document that summarizes the current
financial situation of the firm, analyzes financial needs and
recommends a direction for financial activities.
 Human Resource Management Plan – a document that
indicates the human resource needs of a company detailed
in terms of quantity and quality and based on the
requirements of the company’s strategic plan.

Types of Plans
 Plans with Time Horizon
 Short-range Plans – plans intended to cover a
period of less than one year. First line supervisors
are mostly concerned with these plans.
 Long-range Plans – plans covering a time span of
more than one year. These are mostly undertaken
by middle and top management.

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Types of Plans
 Plans according to Frequency of Use
 Standing Plans – plans that are used again and again and
they focus on managerial situations that recur repeatedly.
 Policies – broad guidelines to aid managers at every level in
making decisions about recurring situations or functions.
 Procedures – plans that describe the exact series of actions to be
taken in a given situation.
 Rules – statements that either require or forbid a certain action.
 Single-Use Plans
 Budgets – plans which set forth the projected expenditures for a
certain activity and explain where the required funds will come
from.
 Programs – single-use plans designed to coordinate a large set of
activities.
 Project – a single-use plan that is usually more limited in scope
than a program and is sometimes prepared to support a program.

ORGANIZING
 It is that management function which relates to the structuring
of resources and activities to accomplish objectives in an
efficient and effective manner.
 Organizational Structure - is a system that outlines how certain
activities are directed in order to achieve the goals of an
organization. These activities can include rules, roles, and
responsibilities.
 Formal Organization vs. Informal Groups
 Types of Organizational Structures
 Functional Structure
 Divisional or Multidivisional Structure
 Flatarchy Structure
 Matrix Structure

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MATRIX STRUCTURE

LEADING
 It is a management function which involves
influencing others to engage in the work
behaviors necessary to reach organizational
goals.

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LEADING
 The power possessed by leaders may be classified
according to various bases as follows:
 Legitimate Power - a person who occupied a higher position has
legitimate power over persons in lower positions within the
organization.
 Reward Power – When a person has the ability to give rewards
to anybody who follows orders or request, he is said to have
reward power.
 Coercive Power – When a person compels another to comply
with others through threats or punishment, he is said to possess
coercive power.
 Referent Power – When a person can get compliance from
another because the latter would want to be identified with the
former, that person is said to have referent power.
 Expert Power –This influence, called expert power is possessed
by people with great skills in technology.

Leadership Skills
 Technical Skills – These are skills a leader must
possess to enable him to understand and make
decisions about work processes, activities and
technologies.
 Human Skills – These skills refer to the ability of
the leader to interact with people inside and
outside of the organization.
 Conceptual Skills – These skills refer to the ability
of a person to think in abstract terms and to see
how parts fit together to form the whole.

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Leadership Style
 Autocratic Leaders – leaders who make decisions
without consulting subordinates. Motivation takes the
form of threats, punishment and intimidation of all
kinds.
 Participative Leaders – leaders who openly invites
his subordinates to participate or share in decision-
making, policy making and operation methods.
 Free-rein Leaders – leaders who set objectives and
allow employees or subordinates relative freedom
to do whatever it takes to accomplish those
objectives.

CONTROLLING
 It refers to the process of ascertaining whether
organizational objectives have been achieved; if not, to
determine why not; and determining what activities should
be taken to achieve objectives better in the future.
 Steps in the Control Process
1. Establishing performance objectives and standards
2. Measuring actual performance
3. Comparing actual performance to objectives and standards
4. Taking necessary action based on the results of the comparison
 Types of Control
 Feedforward Control
 Concurrent Control
 Feedback Control

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Types of Control
Feedforward Control
 It is the type of control measure undertaken when
management anticipates problems and prevents their
occurrence.
Concurrent Control
 It is undertaken when operations are already on-going
and measures to detect variances are made.
Feedback Control
 It is undertaken when information is gathered about a
completed activity for purposes of evaluating and
deriving required steps for improving the activity.

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