DEFINITION, FUNCTIONS, TYPES

and THEORIES of MANAGEMENT

for Organization and Management
Senior High School
Quarter 1 /Week1
 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 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.
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 e. Controlling-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 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.

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
Management Theories- theories that help improve the management process.

Management Process- the coordinating and the overseeing of the work

performance of individuals working together in organizations so that they could
efficiently and effectively accomplish their chosen goal.

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

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 him/her.

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

TOTAL QUALITY MANAGEMENT (TQM)

 Total quality management- is a philosophy that focuses on the satisfaction of customers,
their needs, and expectations. Quality experts W. Edward Deming and Joseph M. Juran
introduced this customer oriented idea that eventually became the foundation of today’s
quality managements practices

DEMING’S 14 POINTS FOR TOP JURAN’S FITNESS OF QUALITY

MANAGEMNET
1. Create constancy of purpose for 1. Quality of Design- through market
improvement of products and services research, product and concept
2. Adopt the new TQM philosophy 2. Quality of Conformance – through
management, manpower and technology
3. Cease dependence on mass 3. Availability- through reliability,
inspection by doing things right and maintainability, and logistic- support.
doing it right the first time.
4. End the practice of awarding business 4. Full Service- through promptness,
on the basis of price tag alone. competence, and integrity.
5. Constantly improve the system of JURAN’S QUALITY PLANNING ROADMAP
production and services.
6. Institute training. 1. Identify your customers.
7. Adopt and institute leadership. 2. Determine their needs.
8. Drive out fear 3. Translate them into one’s language
9. Break down barriers between staff 4. Develop a product that can respond to
areas needs.
10.Eliminate slogans, focus on correction 5. Develop process which are able to
of defects in the system. produce those product features.
11.Eliminate slogans, focus on correction 6. Prove that the process can produce
of defects in the system. the product.
12.Remove barriers that rob people of 7. Transfer the resulting plans to the
“pride of workmanship” operating forces.
13.Encourage education and self-
improvement for everyone.
14.Take action to accomplish the
transformation

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.