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Lesson 1 Nature of Management

This document provides an overview of management concepts including: 1. Definitions of management, the 5 M's of management resources, and the four main functions of management: planning, organizing, leading, and controlling. 2. Descriptions of the three levels of managers - top, middle, and first level - and the key skills needed for management like technical, interpersonal, and decision-making skills. 3. A discussion of factors that make managing in today's world more competitive, such as globalization, technology, knowledge/ideas, and collaboration; and sources of competitive advantage like innovation, quality, and cost competitiveness.

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256 views7 pages

Lesson 1 Nature of Management

This document provides an overview of management concepts including: 1. Definitions of management, the 5 M's of management resources, and the four main functions of management: planning, organizing, leading, and controlling. 2. Descriptions of the three levels of managers - top, middle, and first level - and the key skills needed for management like technical, interpersonal, and decision-making skills. 3. A discussion of factors that make managing in today's world more competitive, such as globalization, technology, knowledge/ideas, and collaboration; and sources of competitive advantage like innovation, quality, and cost competitiveness.

Uploaded by

iamamay
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Organization

and
Management
Self- Paced Learning Plan
(SPLP)

Prepared by:
Hazel Anne M. Sacro
Instructor

1 Organization & Management


Lesson I Nature of Management
Objectives: At the end of the lesson, students should be able to:
 Understand the important concepts of Management.
 Discuss the different Management functions.

Management is the art of getting things done through people. - Prof. Mary Parker Follett

The above definition is the most popular definition of management. However, there are other definitions of management
as given by several authors.
These are the following:
Management is the process of working with people and resources to accomplish organizational goals. – (Bateman,
Snell, 2013)
Good managers do those things effectively and efficiently. To be effective is to achieve organizational goals while to
be efficient is to achieve these goals with minimal waste.
Management is the attainment of the goals of the organization through the cooperative efforts of its members.
(Medina,2010)
Management is the process of planning, organizing, leading and controlling productive resources, such as people,
money, machines, materials and methods. – Prof. James Stoner
5M’s of Management (Productive Resources of the Organization)
1. Manpower/ Men (the most important asset of an organization). The people who
are working in the organization (employees).
2. Money. The capital used to start the business as well as for the day-to-day
operations.
3. Machines. The equipment used in the production of goods
4. Materials. The ones used in the day-to-day operations of the business.
(e.g. computers, office supplies, raw materials)
5. Methods. The processes used in the conduct of the business’ operations.
(e.g. recruitment and selection process

2 Organization & Management


FUNCTIONS OF MANAGEMENT:
1. Planning - “The management functions of systematically making decisions about the goals and activities
that an individual, a group, a work unit, or the overall organization will pursue.” (Bateman, 2013)
- planning means “thinking ahead”.
- identifying the objectives as well as the things that need to be done to meet a certain goal.

Example: Your goal is to be at the top of your class, and so planning would involve identifying the things that
you need to do in order to be at the top such as studying every night and participating actively in class activities

2. Organizing - “The management function of assembling and coordinating human, financial, physical, informational,
and other resources needed to achieve goals. (Ibid)
- This function involves allocating the productive resources (5M’s of Management) to each of the
identified activities in your plan.
3. Leading - “The management function that involves the manager’s efforts to stimulate high performance by
employees”. (Ibid)
- motivating people to do their jobs in order that the goals set will be achieved.
- This involves giving your employees rewards for a job well done for them to be encouraged to give
their best in their work.
4. Controlling - “The management function of monitoring performance and making needed changes”. (Ibid). This
entails evaluating whether the goals set have been achieved or met.

This involves the following steps:


a. Setting up standards. - These standards are the objectives set by the organization. For instance, the
business aims to increase sales by 5% by the end of the year.
b. Comparing the actual performance against the standards. - The objectives are reviewed and
compared to what actually happen and what actually has been achieved. For instance, the business has
increased sales by only 3% instead of the 5% target.
c. Correcting deviations. - Deviations happen when the actual results differ from what has been targeted.
In the case of the 5% target increase in sales, the achieved 3% increase deviates from the standard. When
this happens, corrective actions are done by the organization. For instance, the business may strengthen its
promotional campaigns.

Planning Leading

Functions of
Management

Organizing Controlling

3 Organization & Management


TYPES OF MANAGERS

1. The top managers are the top executives of the


Top organization. They are commonly referred to as strategic managers.
They are the Chief executive officer (CEO), Chief financial officer (CFO),
managers company presidents and those responsible for the management of the
organization as a whole.

2. The middle managers lead the activities of the first-level


Middle managers, and in some cases, those of the workers. They are sometimes
managers called tactical managers. They are the department managers (e.g.
marketing manager, purchasing manager). Good middle managers
provide the skills needed in the operation of the company and practical
problem solving that keep it going.

3. The first level managers/frontline managers/operational


First Level Managers
managers are the ones who are in direct contact with the rank-and-file
employees. This is the lowest level of management. They are the
supervisors.

MANAGEMENT SKILLS
The following are the skills that people who are in charge in the management of an organization should possess:
1. Technical skills. These are the skills referring to one’s expertise of a specialized field. For instance, the
accounting and finance courses in school will develop the technical skills needed to understand and manage
the financial resources of a company.
2. Interpersonal and communication skills. These are the skills referring to one’s ‘You have to get high
performance out of people in your organization whom you don’t have authority over. You need to read other
people, know their motivators, know how you affect them.’- Michael Morris
3. Conceptual and decision-making skills. These are the skills referring to one’s ability to identify and solve
problems and decisiveness in making decisions for the benefit of the organization and its members.
Experience plays an important part in the development of these skills.

4 Organization & Management


Managing in a more Competitive World
According to Bateman, Snell (2013), there are four key elements that make the current business setting
different from the past. These are the following:
1. Globalization. This has changed the face of the workforce. Management today needs to attract and effectively
manage people from all over the world.
2. Technological change. The rate at which technology changes is a great challenge to businesses. The Internet
is only one of the many ways that makes technology an important part of a business.
3. The importance of knowledge and ideas. The success of modern businesses rests so often on the knowledge
used for innovation of products; therefore, this knowledge has to be carefully managed. This would mean a careful
management to the company’s knowledge workers.
4. Collaboration across organizational ‘boundaries’. The effective cooperation of the people in the different
parts of the organization are given great emphasis of modern businesses.
 Good managers know that, along with change, competition is constant in the business world and that
there is a constant struggle to survive and get ahead

These are some of the sources of competitive advantage of a business:


1. Innovation. The introduction of new goods and services.
2. Quality. The excellence of your product (goods or services).
3. Service. The speed and dependability with which an organization delivers what customers want.
4. Speed. Fast and timely execution, response, and delivery of results.
5. Cost competitiveness. Keeping costs low to achieve profits and be able to offer prices that are attractive to
consumers.
6. Sustainability. The effort to minimize the use of resources, especially those that are polluting and nonrenewable.
It is recommended that managers do not just focus on one aspect of performance. One may be interested in one more
than the others, yet it is a must to strive to be better at all six.
Additional points to remember:

 There is always room for everyone to improve. Managers can improve in their ways through attending trainings and
indulging in activities which can enhance their managerial abilities.

 The role of management is to mobilize productive resources and utilize these for the efficient production of goods
and services. (Medina, 2010)

 Peter Drucker states that the three jobs of management are to manage business, to manage managers, and to
manage workers and work.

5 Organization & Management


How to forge a successful and gratifying career?
1. Be both a specialist and a generalist. One has to be an expert at something, yet know enough about a variety of
business disciplines to be able to think and work with different perspectives.
2. Be self-reliant. One has to take full responsibility for oneself, his actions and his career and find new ways to make
overall performance better.
3. Be connected. One has to have many good working relationships and interpersonal contacts, and be able to work
well with teams and have strong interpersonal skills.
4. Actively manage your relationship with your organization. Instead of doing what one is told, one has to think of
how he can contribute for the benefit of the organization and acting accordingly.
5. Survive and thrive. Successful executives share some common practices:
- They ask “What needs to be done?” rather than “What do I want to do?”
- They write an action plan. They don’t just think, they do, based on a sound, ethical plan.
- They take responsibility for decisions. This requires checking up, revisiting, and changing if necessary.
- They focus on opportunities rather than problems. Problems have to be solved, and problem solving prevents more
damage. But exploiting opportunities is what creates great results

6 Organization & Management


Assessment time!

ACTIVITY 1: Explain the following terms in your own words.


1. Management
2. Planning
3. Organizing
4. Leading
5. Controlling
ACTIVITY 2: Answer the following questions concisely.
1. Why do you think manpower is considered as the most important asset of an organization?
2. What is the importance of innovation in business?
3. What is the purpose of comparing the actual performance against the standards?
4. What management skills do you think you possess? Explain your answer.
5. What do you mean by doing things effectively and efficiently in the management context? Provide an example.

7 Organization & Management

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