Chapter3 Theory Of Management
- 1. Chapter 3Guevarra institute of technologyGingoog cityTheory of Management in Business and Industry
- 2. The Meaning of ManagementThe word management is derived from the Italian word , Maneggiare, which means “to train horses” or literally “to handle”the French words, Maneger, meaning “to direct a household”, i.e. “ to economize” and Menager, “ an act of guiding or leading”.Etymologically, therefore it means to handle , direct economically, guide and lead. 2Guevarra Institute of Technology
- 3. Attributes of ManagementManagement is the art and science of organizing, preparing and directing human efforts applied to control the forces and to utilize the materials of nature for the benefit of man3Guevarra Institute of Technology
- 4. Attributes of ManagementManagement is the development of people and not the direction of things.4Guevarra Institute of Technology
- 5. Attributes of ManagementManagement is the scientific utilization of men, money and materials to accomplish a desired purpose.5Guevarra Institute of Technology
- 6. Attributes of ManagementManagement is simply stated and defined as “the getting of things done through efforts of other people.”6Guevarra Institute of Technology
- 7. Organization ManagementOrganization is considered as the relationships of the structural elements in business ,including the individuals to carry on the work to accomplish the desired purposesManagement as the planning , directing, controlling and coordinating of those elementsRelationship between Management and Organization7Guevarra Institute of Technology
- 8. Organization ManagementOrganization refers to the structure or form of an enterprise and the arrangement of all parts thereof in a manner suitable for use in serviceManagement includes all those in charge of the direction of the work of others, those who will see to it that the parts so arranged and structured are used in service to best advantage.Relationship between Management and Organization8Guevarra Institute of Technology
- 10. Who is Management?Traditionally, management means one individual or a small group of key people who make the significant decisions and keep the policy making power and function as an absolute power over the organization.10Guevarra Institute of Technology
- 11. What is Good Management?When competent men are placed as heads of the departments , when these men are responsible for and are in control of all activities and when they work as a team under the leadership of a strong executive.11Guevarra Institute of Technology
- 12. What is Good Management?When changes in business activities could be effected on short notice12Guevarra Institute of Technology
- 13. When is Management Considered Successful?When industry is efficient and this efficiency is measured concretely in terms of quality and quantity of products produced with the minimum efforts at the least possible cost.13Guevarra Institute of Technology
- 14. PlanningCoordinatingDirectingControllingFunctions of Management14Guevarra Institute of Technology
- 15. PlanningIs a method technique of looking ahead in order to meet work requirements and to reduce the amount of mental efforts required while work is being done.It is a continuing process.It emphasizes prevention rather than correction of delays.The essence of planning is to remember the value of time, the virtue of patience and the joy of originating.15Guevarra Institute of Technology
- 16. CoordinatingIt means concurrence in purpose and performance to secure harmony in action toward a common end.16Guevarra Institute of Technology
- 17. DirectingIt means the pointing of all efforts toward the known objective.17Guevarra Institute of Technology
- 18. ControlIt includes the restraining, checking and motivating influences exercised by the government.It requires a knowledge of what is being done, what should be done and what to do in order to rectify unsatisfactory conditions.18Guevarra Institute of Technology
- 19. Planned methods of procedureOne of the most valuable mechanisms or aids of management.System materially aids in securing the desired results in the best possible way with the latest expenditure of time and effort.System, A Fundamental in Operating a Business19Guevarra Institute of Technology
- 20. Advantages of Proper Use of System System is the introduction or order and method wherever it is applied 20Guevarra Institute of Technology
- 21. Advantages of Proper Use of System Everyday work becomes routine through a system21Guevarra Institute of Technology
- 22. Advantages of Proper Use of System System permits those in authority to devote their time and effort to more important work, such as planning, attending to major problems, searching for new markets and products, and the like.22Guevarra Institute of Technology
- 23. Advantages of Proper Use of System System aids in the control and reduction of costs23Guevarra Institute of Technology
- 24. Rules for Applying SystemSystem Used in a Particular Concern Should Reflect a Basic General PlanA System Must Represent a Definite and Useful Purpose.Maintaining a System Must Prove Worth Its Cost24Guevarra Institute of Technology
- 25. Rules for Applying SystemA System should be clear, simple, easily understood, and adequate to fit the need , but involving the least expenditure of time and effort.There Should be Frequent Periodic Checking.25Guevarra Institute of Technology
- 26. Guevarra Institute of Technology26Basic Principles of Management
- 27. 1. The Principle of Policy MakingGuevarra Institute of Technology27Definite , clear-cut policies are essential to effective managementGeneral company policiesMajor PoliciesDepartmental Policies
- 28. 2. The Principle of Improvement and AdjustmentGuevarra Institute of Technology28To be successful, a business must advance ; it cannot remain dormant.
- 29. 3. The Principle of BalanceGuevarra Institute of Technology29To secure proper development of business and efficiency in operation , a company must be internally well-balanced.
- 30. 4. The Principle of Relationship of Task and AccomplishmentGuevarra Institute of Technology30A person works best and accomplishes most when he is given a definite job to be completed in a given time , the work being of a nature for which he is mentally and physically suited.
- 31. 5. The Principle of Individual EffectivenessGuevarra Institute of Technology31Individual effectiveness is increased through training and improved working conditions
- 32. 6. The Principle of SimplicityGuevarra Institute of Technology32All Elements which are not essential to successful operation should be eliminated and all those retained should be applied in the simplest way.
- 33. 7. The Principle of SpecializationGuevarra Institute of Technology33Scientific distribution of work results in specialization of effort and task
- 34. 8. The Principle of StandardizationGuevarra Institute of Technology34Whenever practicable, best practices should be determined , expressed in terms of definite units or standards and adopted as a pattern for use in operation or performance and in planning and control
- 35. 9. The Principle of Financial IncentiveGuevarra Institute of Technology35Remuneration should be in direct proportion to the value of accomplishment
- 36. 10. The Principle of Human Relations Guevarra Institute of Technology36Management succeeds or fails as human relations in business are intelligently or otherwise handled
- 37. 11. The Principle of PlanningGuevarra Institute of Technology37In order to accomplish anything of importance , there must be planning in advance of doing.
- 38. 12. The Principle of ControlGuevarra Institute of Technology38Planning is of little value unless there is subsequent control to make certain that the plans are carried out.
- 39. 13. The Principle of CooperationGuevarra Institute of Technology39The efforts of two or more individuals working as a unit toward a common goal are greater than the sum of the efforts of the individuals working at individuals.
- 40. 14. The Principle of LeadershipGuevarra Institute of Technology40Wise Leadership is the most important single factor in successful operationGood leadership implies :The ability to do what sets out to doThe spirit to carry on until the task set is accomplishedThe personality and ability to win cooperationThe skill to direct and control the efforts of others.
- 41. 15. The Principle of Delegation of Authority and ResponsibilityGuevarra Institute of Technology41Decisions should be made at the lowest practicable organization levelDelegation means giving power to do certain things to subordinates and pointing out how that power is to be used.
- 42. 17. The Principle of Utilization of Executive AbilityGuevarra Institute of Technology42Executive ability can be utilized fully by freeing it of the need to attend to all routine matters.
- 43. Guevarra Institute of Technology43The executive should have
- 44. 1. Physical and mental healthGuevarra Institute of Technology44Vitality, strength and endurance are required of executives.
- 45. 2. IntellectGuevarra Institute of Technology45Clear thinking and intelligence is either creative or judicial
- 46. 3. PersonalityGuevarra Institute of Technology46The executive should have maturity , social orientation , personal magnetism that commands consent , cooperation, enthusiasm, the ability to inspire , persuasiveness and tact.
- 47. 4. CharacterGuevarra Institute of Technology47The good executive, as a leader, has integrity, and other excellent character traits
- 48. 5. Language FacilityGuevarra Institute of Technology48The leader should not only know but he should also have the ability to teach and communicate what he knows.
- 49. ReferenceGuevarra Institute of Technology49Gutierrez, H., Pura, J. & Garcia, R. 1994, Business Organization and Management, 6th edn, R.M. Garcia Publishing House, Quezon City