CHAPTER 1

NATURE & CONCEPT OF MANAGEMENT

 What is Management?
- a distinct process of planning, organizing,
staffing, directing, and controlling (POSDICON),
performed to determine and accomplish stated
objectives by the use of human being and other
business resources.

6 M’s (Basic Resources)

- Men - Machines
- Money - Methods
- Materials - Market
 Management

• Functions
* Planning
* Organizing
* Staffing
* Directing
* Controlling
 Universally Accepted Functions
of Management
 Planning-formulation of objectives, programs,
policies, procedures, rules & regulations in order
to achieve the goals of the business.

 Organizing-the grouping together of people,

establishing relationship among them to attain
the organizational goals & objectives through its
resources.

 Staffing – maintaining workforce of the

organization.
 Universally Accepted Functions
of Management

 Directing- managing & leading the organization

 Controlling-monitoring the activities of the

organization to assure conformity to
plans.
 Management

Art:
- Its is the result of the accomplishment of
objectives through the use of human efforts.
- It requires skill and careful study in the mgt. of
any endeavour.

Science
- A systematic body of knowledge
- It gathers & analyzes facts and formulates
general laws/principles from facts
 Management

• 4 School of thoughts or Theories

1. The Classical or Traditional

2. The Human Relations
3. The Management Science or
Quantitative School
4. Modern Management
 Management

• 4 School of thoughts or Theories

1. The Classical or Traditional

2. The Human Relations
3. The Management Science or
Quantitative School
4. Modern Management
 Scientific Management

• Frederick Taylor

- author of the book entitled “Principle of

Scientific Management”

- father of time study

 Scientific Management
• Taylor’s 4 Principles
- Develop a science for each element of a
man’s work, to replace the old rule – of –
thumb method.
- Scientifically select and train the worker.
- Heartily Cooperate with the men to ensure
that all the work is in accordance with the
principles of the science develop for the work.
- Divide the work and the responsibility
equally between management and the worker.
The Gilbreths & Motion Study

- Frank and Lilian Gilbreths emphasized the

ideal motions required to perform a job in an
optional fashion.

- Gilbreths developed the concept of therblig

(gilbreth spelled backward-transposition of H
& T); therblig - an elemental hand or arm
motion.
Human Relations School – Elton
Mayo

It emphasizes the importance of human

element in the workplace.

Hawthorne Studies – illumination factor and

productivity

It put too much emphasis on the human aspect

in the organization.
 Management Science or
Quantitative School of thought
The use of quantitative techniques and methods in
decision making.

Quantitative tools: Waiting line/queuing theory,

linear programming, program evaluation review
technique (PERT), critical path method (CPM),
Monte Carlo method, decision theory,
simulation theory, probability theory etc.
 Modern Management

Levels of Modern Management:

1. Top management
2. Middle management
3. Supervisory management
 Advance Management Program in the
Philippines
• Dr. Lilian Gilbreth
• - a well – known authority on scientific management
and human relations.
• - was organized in September 1953, Association of
Management and Industrial Engineers(AMIEP)

• Some objectives
• - to give professional assistance to
practitioners and students of management
and industrial engineering;
Advance Management Program in the
Philippines
* Some objectives
• - to introduce the concept Taylor’s scientific
management;
• - to develop continuously study and research
in the field of management and engineers; and
• - to install professionalism among its
members.