ORGANIZATION AND

`
MANAGEMENT
1st Quarter
OBJECTIVES:
At the end of this topic, the learners will be able to:
1: Define management; Enumerate the functions, types, and
theories of management
2: Explain and discuss the meaning, functions, types and
theories of management; and
3: Show interest in understanding the importance of
management in business, home, family, and school.
 DEFINITION,
FUNCTIONS, TYPES
and THEORIES of
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.
 FUNCTIONS OF MANAGEMENT

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
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.
 TYPES OF MANAGEMENT
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.
 TYPES OF MANAGEMENT

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.
 TYPES OF MANAGEMENT

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.
 TYPES OF MANAGEMENT
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.
 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. Frederick 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.
 THEORIES OF MANAGEMENT

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.
 THEORIES OF MANAGEMENT
B. Henri Fayol’s General Administrative Theory
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.
 THEORIES OF MANAGEMENT

B. Henri Fayol’s General Administrative Theory

Principles of Fayol’s Management 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 responsibility.
They are co-existent and go together, and are two sides of the same coin,
and the authority must be commensurate with responsibility.
 THEORIES OF MANAGEMENT

B. Henri Fayol’s General Administrative Theory

Principles of Fayol’s Management 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 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.
 THEORIES OF MANAGEMENT
B. Henri Fayol’s General Administrative Theory
Principles of Fayol’s Management 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 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.
 THEORIES OF MANAGEMENT

B. Henri Fayol’s General Administrative Theory

Principles of Fayol’s Management 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 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.
 THEORIES OF MANAGEMENT
B. Henri Fayol’s General Administrative Theory
Principles of Fayol’s Management Theory
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.
 THEORIES OF MANAGEMENT

B. Henri Fayol’s General Administrative Theory

Principles of Fayol’s Management 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 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.
 THEORIES OF MANAGEMENT
B. Henri Fayol’s General Administrative Theory
Principles of Fayol’s Management 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 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.
 THEORIES OF MANAGEMENT
B. Henri Fayol’s General Administrative Theory
Principles of Fayol’s Management 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 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.
 THEORIES OF MANAGEMENT

B. Henri Fayol’s General Administrative Theory

Principles of Fayol’s Management 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 time.
 THEORIES OF MANAGEMENT
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
 THEORIES OF MANAGEMENT

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.
 THEORIES OF MANAGEMENT
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.