DEFINITION, FUNCTIONS, TYPES

and THEORIES of MANAGEMENT

for Organization and Management
Senior High School (ABM)
Quarter 1 / Week 1
 FOREWORD
This Self-Learning Kit for Organization and Management is
designed specifically for ABM students in the Senior High School.
This kit focuses on the meaning, functions, types and theories of
management. This serves as a guide in learning that all
organizations- large, medium, small, profit or non profit, public or
private- need good management in order to carry out its goals in
an effective and efficient manner.
It is aligned with the BEC of the Department of Education
following the prescribed MELCs (Most Essential Learning
Competencies).
It has the following features proven to be valuable aids to
learning Mathematics even at home.
What happened
This section limits on a pre-activity, specifically asking
questions to review the prior knowledge of the learners and that
would also lead them towards the discussion of the new lesson.
What I Need To Know (Discussion)
This section contains the Five Functions of Management
namely: Planning, Organizing, Staffing, Directing and Controlling. It
discusses the different principles and theories of management
that underlie in this lesson.
What I have Learned (Evaluation/Post Test)
The evaluation contained in this section are guaranteed to
build mathematical comprehension, skills, and competence. In
addition, a caselet help resolve business conflicts that arise in an
organization. These serve as a diagnostic tool to identify the
learners’ areas of strengths and difficulties. As the great
management Guru Peter Drucker wrote: “Management is tasks.
Management is a discipline. But management is also people.”

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 OBJECTIVES:
At the end of this topic, the learners will be able to:
K: Define management;
Enumerate the functions, types, and theories of
management
S: Explain and discuss the meaning, functions, types
and theories of management; and
A: Show interest in understanding the importance of
management in business, home, family, and
school.

LEARNING COMPETENCY:
Explain the Meaning, Functions, Types and Theories of
Management (CODE not in MELCs)

I. What Happened

PRE-TEST:

Management may be new but pretty sure there are a lot of

things you knew about it in the past. You may be new to the word and
what it means but you have practiced the skill before like getting a task
done together with your younger siblings, with your cousins, or even
with your classmates before. See what you have learned by
completing the crossword puzzle in the next page.

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II. What You Need To Know

BASIC CONCEPTS AND THEORIES OF MANAGEMENT

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”.

DEFINITIONS 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.)
● Management is a non-stop process of ensuring continuity and
growth within an organization.

FUNCTIONS OF MANAGEMENT

a. 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.
b. Organizing-Demands assigning tasks, setting aside funds, and bringing
harmonious relations among the individual and workgroup or teams in
the organization.
c. Staffing- Indicates filling in the different job positions in the
organization’s structure; the factors that influence this function include
the size of the organization, types of jobs, number of individuals to be
recruited, and some internal or external pressures.
d. Leading/Directing- Entails influencing or motivating subordinates to do
their best so that they would be able to help the organization’s
endeavor to attain their set goals.
e. Controlling-Involves evaluating and, if necessary, correcting the

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performance of the individuals or workgroups or teams to ensure that

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 they are all working toward the previously set goals and plans of the
organization.

Business environments are battlefields and business organizations are

engaged in combat. Due to rising competition, changes in the economic
environment, the Labor Union movement, improved productivity, and
implementations of new Business Laws, the business organization should
know how to handle this type of conflict. In order to adapt to the
changing times, we have to understand the beginnings of present-day
management practices.

MANAGEMENT FUNCTIONS

Activity: Given the diagram below supply 2 keywords you have understood
from each of the functions:

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TYPES OF MANAGEMENT
Web references and other books present different management types
but what they have in common are four common categories which are
discussed below.

1. 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 they fail.

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.

2. 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
decides. Employees are motivated not anymore by rewards and punishment
but by persuasive techniques.

3. 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 delayed.

4. 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-direction.

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THEORIES OF MANAGEMENT
A. 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.

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, teach and develop the workers.
3. Heartily cooperate with the workers to ensure that all work is done
following the principles of the science that has been developed;
and
4. Divide work and responsibility almost equally between
management and workers.
B. 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 development, and others.

Principles of Fayol’s Management 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 which increases the
efficiency of labor. 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.
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 responsibility.
They are co-existent and go together, and are two sides of the same
coin, and the authority must be commensurate with responsibility.
3. Discipline- Refers to obedience, proper conduct in relation to others,
respect of authority etc. It is essential for the smooth functioning of all

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organizations. This will also help shape the culture inside the
organization.

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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.
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 manager.
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 individuals.
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 effort. 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.
8. Centralization- The amount of power wielded with the central
management depends on company size. Centralization implies the
concentration of decision-making authority at the top management.
Sharing of authority with lower levels is called decentralization.
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 command. 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 must be informed about
the matter.
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 under the rules of the company.
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 attention toward
all employees.
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 accustomed to the work assigned to
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him/her.

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 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.
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 time.
C. 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 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 another

D. 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. 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 is, mainly, a social system.

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III. What Have I Learned
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.

A. Case Analysis
Instruction: Read the situation below then answer the questions that
follow.
Mr. Julian is a newly appointed manager of ABC group of
companies and was tasked to manage a newly developed
team. He was expected to perform the five functions of
management and he was able to plan and organize activities
for his team that contributes to attaining the goals and
objectives of the company. He was able to assign staff to the
different tasks that are essential and was able to influence his
subordinates to do the task assigned to them by distributing
power and authority to his trusted subordinates and letting them
share the responsibility. As the team competently completed
their task and was able to attain its goal to a minimum effort, an
observation was made by his supervisor as Mr. Julian’s
subordinates are starting to slack on their job and was not able
to surpass its current accomplishment on the following months.
Their performance began to decrease by a small percentage.
Since their performance is still manageable, the new manager
did not mind at all and did not make any adjustments and
strategies to correct their behavior since he wanted to remain in
a close bond with his subordinates.

Questions:

1. What management functions where accomplished by the

new manager?
2. What management functions where not accomplished by the
new manager?

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3. Which type of management was evident in his leadership?
4. Which among the three management process are where
present in Mr. Julian’s management?
5. Explain what should Mr Julian do for him to be able to correct
this problem? And which do you think is the best type of
leadership to use in this situation?

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 DEPARTMENT OF EDUCATION
SCHOOLS DIVISION OF NEGROS ORIENTAL

SENEN PRISCILLO P. PAULIN, CESO V

Schools Division Superintendent

JOELYZA M. ARCILLA, EdD

Assistant Schools Division Superintendent

MARCELO K. PALISPIS, EdD

Assistant Schools Division Superintendent

NILITA L. RAGAY, EdD

OIC - Assistant Schools Division Superintendent
CID Chief

ROSELA R. ABIERA
Education Program Supervisor – (LRMS)

ELISA L. BAGUIO, EdD

Division Education Program Supervisor – MATHEMATICS

MARICEL S. RASID
Librarian II (LRMDS)

ELMAR L. CABRERA
PDO II (LRMDS)

FARAH B. CATAPUSAN
MARGIE CADANO ACABAL
Writers

CHRISTY BLEZEILLE L. POCONG

Lay-out Artist

ALPHA QA TEAM
LITTIE BETH S. BERNADEZ
MERCYDITHA D.
ENOLPE RONALD
TOLENTINO DIDITH T.
YAP

BETA QA TEAM
ELIZABETH A. ALAP-AP
EPIFANIA Q. CUEVAS
NIDA BARBARA S.
SUASIN VRENDIE P.
SYGACO MELBA S.
TUMARONG HANNAHLY
L. UMALI

ENHANCEMENT TEAM
BB. BOY JONNEL C. DIAZ
JEE LIZA T. INGUITO
SALVADOR G. AGUILAR
JR

DISCLAIMER

The information, activities and assessments used in this material are designed to provide accessible
learning modality to the teachers and learners of the Division of Negros Oriental. The contents of this module
are carefully researched, chosen, and evaluated to comply with the set learning competencies. The writers
and evaluator were clearly instructed to give credits to information and illustrations used to substantiate this
material. All content is subject to copyright and may not be reproduced in any form without expressed written
consent from the division.
 REFERENCES

10 Types Of Management Styles For Effective Leadership. 2019,

December 16. Retrieved July 28, 2020, from
https://getsling.com/blog/types-of-management-styles/

Cabrera, H., et. al. 2016. Organization and Management. Manila,

Phil.: Vibal Group Inc.
Chapter 1 Introduction to Principles of Management. n.d. Retrieved July 28,
2020, from https://2012books.lardbucket.org/books/management-
principles-v1.0/s05-introduction-to-principles-of-.html
Espinosa, E., et. al. 2016. Organization and Management. Manila,
Phil.: Rex Publishing.

Matsinhe, V. n.d.. Organization Management & Leadership.

Retrieved July 28, 2020, from
https://www.academia.edu/31111374/Organization_Management_an
d_Leadership

Orjalo, V., et. al. 2016. Organization and Management. Manila,

Phil.: Phoenix Publishing House.
What is Management? Definition, Features (Explained). 2020, April 21.
Retrieved July 28, 2020, from https://www.iedunote.com/management
 AUTHORS
Name: Farah B. Catapusan
Course/s: Bachelor in Business Administration Major in
Management, BSEd Major in Mathematics
District: Negros Oriental High School
School: Negros Oriental High School-SHS
Email: [email protected]

MARGIE CADANO ACABAL

Undergraduate Degree: Bachelor of Secondary
Education
Major: Mathematics
Silliman University
Post Graduate Degree:
Master of Arts in Education
Major: Mathematics
Central Philippines State University