Definitions, Functions, Types, and Theories of Management
- 1. DEFINITION, FUNCTIONS, TYPES and THEORIES of MANAGEMENT O r g a n i z a t i o n & M a n a g e m e n t
- 2. Introduction Have you ever been in a group, school club or school organization? If yes, even in your previous classes or school organizations whether that is from a small group or either school club, there is always a leader who will manage the group. Did you ever thought what where the functions of the leader in your group or organization? Actually there are different functions that are being performed by every leader in your group or organization. All those functions will be carefully discussed as we go along with the lesson. Let us start by defining the term “management”.
- 3. DEFINITION OF MANAGEMENT Management is a process of planning, decision making, organizing, leading, motivating, and controlling the human resources, financial, physical, and information resources of an organization to reach its goals efficiently and effectively. (iEduNote, n.d.)
- 4. DEFINITION OF MANAGEMENT Management is a non- stop process of ensuring continuity and growth within an organization.
- 6. 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.
- 7. Organizing Demands assigning tasks, setting aside funds, and bringing harmonious relations among the individual and workgroup or teams in the organization.
- 8. Entails influencing or motivating subordinates to do their best so that they would be able to help the organization’s endeavor to attain their Leading
- 9. Involves evaluating and, if necessary, correcting the performance of the individuals or workgroups or teams to ensure that they are all working toward the previously set goals and Controlling
- 11. Autocratic This management type is a one-way leadership where there is a single authority. Team members are only there to follow orders. The employees are given rewards for a job well done but are given punishment if
- 12. Autocratic This management style is beneficial in times of crisis that need immediate attention. On the other hand, it causes the staff to fear. They need to be closely supervised and a poor relationship would be evident among the team.
- 13. Persuasive The manager has a strong and centralized controlling business decisions like the autocratic type of management. What differs is that in a persuasive type, the manager convenes with his colleagues before he
- 14. Persuasive Employees are motivated not anymore by rewards and punishment but by persuasive
- 15. Consultative In a consultative style, leaders and workers have two way communication. Team members share their opinion in solving issues of the company. Consequently, the practice is costly, slow in decision making and important changes are
- 16. Participative There is a distribution of authority and power in participative management. The company’s project is a shared responsibility and each member has self-
- 17. THEORIES ON MANAGEMENT Scientific Management Theory Fayol’s General Administrative Theory Weber’s Bureaucracy Organizational Behavior (OB) Approach
- 18. Scientific Management Theory This management theory makes use of the step-by-step, scientific methods for finding the single best way for doing a job. Frederic W. Taylor, the Father of Scientific Management, is the proponent of this theory.
- 19. Scientific Management Theory Taylor’s Scientific Management Principles are as follows: 1. Develop a science for each element of an individual’s work to replace the old rule of thumb method. 2. Scientifically select then train,
- 20. Scientific Management Theory 3. Heartily cooperate with the workers to ensure that all work is done following the principles of the science that has been developed. 4. Divide work and responsibility almost equally between
- 21. Henri Fayol’s General Administrative Theory This theory concentrates on the manager’s functions and what makes up good practice or implementation. Henri Fayol is the contributor of this theory who believes that management is an activity that all organizations must practice and view it as separate from all other organizational activities such as marketing, finance, research and
- 22. Henri Fayol’s General Administrative Theory There are 14 Principles of Fayol’s Management Theory.
- 23. Henri Fayol’s General Administrative Theory 1. Work division or specialization- according to this principle, the whole work is divided into small tasks. The specialization of the workforce according to the skills of a person, creating specific personal and professional development within the labor force, and therefore increasing productivity, leads to specialization
- 24. Henri Fayol’s General Administrative Theory By separating a small part of work, the worker’s speed and accuracy in his/her performance increases. This principle applies to both technical as well as managerial work.
- 25. Henri Fayol’s General Administrative Theory 2. Authority and Responsibility- This refers to the issue of commands followed by responsibility for their consequences. Authority means the right of a superior to give enhanced order to his subordinates; responsibility means an obligation for performance. This principle suggests that there must be parity between authority and
- 26. Henri Fayol’s General Administrative Theory They are co-existent and go together, and are two sides of the same coin, and the authority must be commensurate with responsibility.
- 27. Henri Fayol’s General Administrative Theory 3. Discipline- Refers to obedience, proper conduct in relation to others, respect of authority etc. It is essential for the smooth functioning of all organizations. This will also help shape the culture inside
- 28. Henri Fayol’s General Administrative Theory 4. Unity of command- States that each subordinate should receive orders and be accountable to one superior. If an employee receives orders from more than one superior, it is likely to create confusion and conflict. Unity of Command also makes it easier to fix responsibility for mistakes.
- 29. Henri Fayol’s General Administrative Theory 5. Unity of Direction- All those working in the same line of activity must understand and pursue the same objectives. All related activities should be put under one group, there should be one plan of action for them, and they should be under the control of one
- 30. Henri Fayol’s General Administrative Theory 6. Subordination of individual interest to general interest- The management must put aside personal considerations and put company objectives first. Therefore the interests of goals of the organization must prevail over the personal interests of
- 31. Henri Fayol’s General Administrative Theory 7. Remuneration/Pay – Workers must be paid sufficiently as this is a chief motivation of employees and therefore greatly influence productivity. The quantum and methods of remuneration payable should be fair, reasonable, and rewarding of
- 32. Henri Fayol’s General Administrative Theory Remuneration is paid to worker as per their capacity and productivity. The main objective of an organization is to maximize net profit and wealth of the company.
- 33. Henri Fayol’s General Administrative Theory 8. Centralization- The amount of power wielded with the central management will depend on how large the company. Centralization implies the concentration of decision-making authority at the top management. Sharing of authority with lower levels is called
- 34. Henri Fayol’s General Administrative Theory 9. Scalar chain of authority- Refers to the chain of superiors ranging from top management to the lowest rank. The principle that there should be a clear line of authority from top to bottom linking all mangers at all levels. It is considered a chain of
- 35. Henri Fayol’s General Administrative Theory However, there is a concept called a “gang plank” in which a subordinate may contact a superior in case of an emergency, defying the hierarchy of control. In this event, the immediate superiors
- 36. Henri Fayol’s General Administrative Theory 10.Maintenance of order- Social order ensures the fluid operation of a company through authoritative procedure. Material order ensures safety and efficiency in the workplace. Orders should be acceptable and
- 37. Henri Fayol’s General Administrative Theory 11.Equity/Fairness- employees must be treated kindly, and justice must be enacted to ensure a just workplace. Managers should be fair and impartial when dealing with employees, giving equal
- 38. Henri Fayol’s General Administrative Theory 12.Stability/security of tenure of workers- The period of service should not be too short and employees should not be moved from positions frequently. An employee cannot render useful service if he or she is removed before he/she becomes
- 39. Henri Fayol’s General Administrative Theory 13.Employee Initiative- Using the initiative of employees can add strength and new ideas to an organization. Initiative on the part of employees is a source of strength for an organization because it provides new and better ideas. Employees are likely to take greater interest in the functions of the organization.
- 40. Henri Fayol’s General Administrative Theory 14.Promotion of team spirit or esprit de corps- Refers to the need of mangers to ensure and develop morale in the workplace individually and as a group. Team spirit helps develop an atmosphere of mutual trust and understanding. Team spirit helps finish the task on
- 41. Weber’s Bureaucracy Max Weber, A German Sociologist wrote in the early 1900s that ideal organizations specially the large ones, must have authority structures and coordination with others based on what he referred to as
- 42. Weber’s Bureaucracy According to Weber, bureaucracy is an organizational form distinguished by the following components: 1.Division of labor 2.Hierarchical identification of job positions 3.Detailed rules and regulations 4.Impersonal connections with one
- 43. Organizational Behavior (OB) Approach This involves the study of the conduct, demeanor, or action of people at work. Research on behavior helps managers carry out their functions- leading, team building, resolving conflict, and others. Robert Owen, Mary Parker Follett, Hugo Munsterberg, and Chester Barnard were the early supporters of the OB Approach.
- 44. Organizational Behavior (OB) Approach During the late 1700s, Owen noticed lamentable conditions in workplaces and proposed ideal ways to improve the said conditions. Follett, in the early 1900s, introduced the idea that individual or group behavior must be considered in organization management. Likewise, in the early 1900s, Munsterberg proposed the administration of psychological tests for the selection of would be employee in companies. Barnard, in the 1930s, suggested that cooperation is required in organizations since it
- 45. The success of the company is the direct result of good management. In order to do so, it is the manager’s responsibility to ensure that his/her actions should be geared toward business growth and sustainability. Managers must constantly review if he was able to follow the 5 functions that he/she is expected or make necessary adjustments to correct immediately conflicts or problems that arise in the business.
- 46. Thank You! For Your Attention