A. What are the Fundamentals of Management?

• Definition of Management
• Characteristics of Management
• Scope of Management
• Management: Science and Art
• Management Functions
• Skills of Manager
• Qualities of A Good Manager
1. Introduction
Management is a study that moves with the economic tides, political shapes, and
cultural waves. It serves as the crutches of improvement during organizational crisis
and ladder for the professionalization of corporate practices. It also wields the power
of ethical influence for organizational reforms.
In this chapter, I shall give you a concise review of management because i shall not
be able to cram all the details. I shall, therefore, focus on the fundamentals but
include modern theories and the tools in research as part of your new learning.
Most of you have gone through the basics of management. For those with MBAs,
this might be some sort of gallivanting into over-familiar territories. But as Picasso
said, "Mastery took me a lifetime." It would be one heck of a nostalgia coming home
to management.
The primary purpose of this chapter is to relate the fundamentals of management to
the competencies that shall be observed during the assessment process. These
competencies can only be assessed through your KSAs. Your knowledge on
management can only be manifested through your management-leadership skills
and attitude.
Gathering your mindsets, skills, and attitude as your intellectual-behavioral weaponry
shall be the best preparation for the assessment center. Add up your prospective
familiarity with the assessment indicators in Chapter 9 and the assessment
simulated exercises in Chapters 12-16, then you are ready to face your assessors.
In this light, gather as much knowledge and skills from this concise review of the
concept of management. Practice matching the mindsets to these competencies.
Use your creativity and prudence.
2. What are the Definitions of Management?
Management, albeit a universal concept, has never come close to a common
definition. It is a universal phenomenon as it is used by all kinds of organizations in
business, social, political, and cultural areas. Because of the diversity of its usage,
any attempt to define it does not guarantee substantial completeness, longevity of
use, or universal acceptance. Just as music has its genres, management has its own
categorizations.
Here are some of the different definitions of management by eminent authors
(arranged chronologically):

Frederick Winslow Taylor (March 20, 1856 — March 21, 1915)

According to F.W. Taylor, "The art of management has been defined, 'as knowing
exactly what you want men to do, and then seeing that they do it in the best and
cheapest way." (1911, p. 7).

Jules Henri Fayol (July 29, 1841 — November 19, 1925)

According to J.H. Fayol, "To manage is to forecast and plan, to organize, to
command, to co-ordinate and to control. To foresee and provide means examining
the future and drawing up the plan of action. To organize means building up the dual
structure, material and human, of the undertaking. To command means maintaining
activity among the personnel. To coordinate means binding together, unifying, and
harmonizing all activity and effort. To control means seeing that everything occurs in
conformity with established rule and expressed command." (1916, p. 5/6).

Peter Ferdinand Drucker (November 19, 1909 — November 11, 2005)

According to P.F. Drucker, "Indeed, we can only answer our question: What is
management and what does it do?' by saying that it is a multipurpose organ that
manages a business and manages managers and manages worker and work."
(1954, p. 17).

Harold Koontz (1909-1984)

According to H. Koontz, " Management is the art of getting things done through and
with people in formally organized groups, the art of creating an environment in such
an organized group where people can perform as individuals and yet cooperate
toward attainment of group goals, the art of removing blocks to such performance,
the art of optimizing efficiency in effectively reaching goals." (1961, p. 186).
According to E. Ogawa, "Management is planning, implementation and control
system activities as well as the actual manufacture of goods created by business
organizations to advance the actual goals are set regarding the work that may be
achieved in accordance with changing environmental conditions." (1984)
According to R. J. Aldag & T.M. Stearns, "We will define management as a process
of planning, organizing, and staffing, directing, and controlling activities in an
organization in a systematic way in order to achieve a common goal." (1991, p. 13)
According to C.L. Bovee [et al ], "Management can be defined as the process of
achieving organizational goals through planning, organizing, leading, and controlling
the human, physical, financial, and information resources of the organization in an
effective and efficient manner" (1993, p. 5)
According to J.F. Stoner [et al], "The process of planning, organizing, leading, and
controlling the work of organization members and of using all available
organizational resources to reach stated organizational goals." (1995, p. 7/10)
According to K.M. Bartol & D.C. Martin, "Management is the process of achieving
organizational goals by engaging in the four major functions of planning, organizing,
leading, and controlling." (1998, p. 5)
According to J. Naylor, "Management is the process of achieving organizational
objectives, within a changing environment, by balancing efficiency, effectiveness and
equity, obtaining the most from limited resources, and working with and through
other people." (2004, p. 6)
According to S.P. Robbins & M.A. Coulter, "Management is coordinating work
activities so that they are completed efficiently and effectively with and through other
people." (2005, p. 7)
According to D. M. Rousseau, "Evidence-based management means translating
principles based on best evidence into organizational practices. Through evidence-
based management, practicing managers develop into experts who make
organizational decisions informed by social science and organizational research—
part of the zeitgeist moving professional decisions away from personal preference
and unsystematic experience toward those based on the best available scientific
evidence". (2005)
According to Obikezie [et al.], eclectic management "is a method that is very
affective in one situation may not work at all in another. Therefore, the task of
managers is to try to identify, which technique will work in a particular situation,
under a particular circumstance, and at a particular time, best contribute to the
attainment of management goal. (2005)
According to P.J. Montana & B.H. Charnov, "Management is working with and
through other people to accomplish the objectives of both the organization and its
members." (2008, p. 2)
According to H. Mintzberg, "Management, to repeat, means getting things done
through other people — whether that be on the people plane (leading and linking) or
on the information plane (controlling and communicating)." (2009a, p. 168)
According to B. Kaehler & J. Grundei, "Management is a steering influence on
market, production and/or resource operations in an organization and its units that
may address both people and non-people issues and is exerted by multiple
organizational actors through either anticipatory norm-setting (= constitutive or
strategic management) or situational intervention (= operational management) with
the aim of achieving the unit's objectives. To manage a unit is synonymous with
'directing' or 'leading' it." (2019, p. 22)
From these definitions, we can distill the common components of management:
 • Management is the process of planning, organizing, staffing, directing, and
controlling performance.
• To determine and accomplish goals
• By controlling resources effectively and efficiently
Based on these components, I came up with this working definition:
"Management is a process of planning, organizing, staffing, directing, and controlling
human, financial, physical, and information resources of an organization to reach its
goals in an efficient and effective manner." For purposes of this book, I shall discuss
management within this context.
3. What are the Characteristics of Management?
There are as many characteristics of management as there are many studies in this
field of study. After sorting them out, I ended up with a common list of the salient
characteristics:
• Management is an effort to achieve objectives
• Management is goal-oriented
• Management involves decision-making
• Management implies skill and experience
• Management is a group activity
• Management is a system of authority
• Management is universal
• Management is both a science and art
• Management is a profession
• Management is dynamic
• Management is an interdisciplinary study
• Management and leadership are complementary
• Management is intangible
4. Scope of Management
Management consists of continuing activities of planning, organizing, staffing,
directing, and controlling. These basic management functions serve as the subject
matter of management.
Management functions in the following areas:
• Financial Management: forecasting, cost control, management
accounting, budgetary control, statistical control, financial planning etc.
• Human Resource Management: recruitment, training, transfers,
promotions, retirement, terminations, remuneration, labor welfare and
social security, industrial relations.
• Marketing Management: marketing of goods, sales promotion,
advertisement and publicity, channels of distribution, market research.
• Production Management: production planning, quality control and
inspection, production techniques.
• Material Management: purchase of materials, issue of materials, storage
of materials, maintenance of records, materials control.
 • Purchasing Management: inviting tenders for raw materials, placing
orders, entering to contracts.
• Maintenance Management: care and maintenance of the buildings, plant,
and machinery.
• Office Management: structure, staffing, and equipment of the office.
5. Management: Science and Art
Science is described "as a systematic body of knowledge pertaining to an area of
study and contains some general truths explaining past events or phenomena". This
definition requires a systematic body of knowledge, principles that are exact and with
universal applicability, formed through methods of observation.
Management cannot strictly fit into this definition as there is a limitation in observing
human behavior. Management like other social sciences can be considered as
"inexact science".
An art may be defined as the application of general theoretical principles for
achieving best possible results. Management implies the application of knowledge &
skills in getting desired results thus it fits into the definition of an art.
In sum, management is both an art and an "inexact" science.
6. Management Functions
As a CES aspirant, it is important for you to study the five major functions of
management. The five major functions of management are: Planning, Organizing,
Staffing, Directing, and Controlling. Leading is always integrated into these five major
functions.
One of these functions shall be the subject of a simulated exercise. In organizational
planning, you shall be instructed to prepare an indicative annual plan and budget for
your organization. This is the exercise that has been consistently conducted since I
took the assessment center until now.
If ever, CESB decides to try other management functions, here are the most possible
scenarios:
In organization, you might present a simple structure of your organization showing
line and staff functions. The presentation may be expanded to include departments.
In staffing, the facilitator may instruct you to draw a simple manpower or human
resource management plan. In directing, you may be asked to resolve a conflict
between management and union members.
In directing, you might be asked to write a memorandum or an executive order.
In controlling, the facilitator may require you to present a simple performance
measurement tool.
Knowing all the management functions and tools shall keep you ahead of the other
candidates. However, in Chapter 16, I shall discuss with you further the
organizational planning process, walk you through the exercise, and provide you
strategic tips on how to succeed in it.
6.1 Planning
Planning is a management function that involves the setting of goals and objectives
and drawing a course of action to achieve them. Planners must be aware of the
external conditions facing the organization to be able to forecast future conditions.
As such, planning starts with environmental scanning: analyzing the economic
conditions, competition, and the clients. The results become the basis for planning.
Subsequently, planners establish objectives, determine alternative courses of action,
and form decisions to achieve the objectives.
Planners are familiar with short range plans, medium range plans, long range plans,
standing plans, single use plans, and administrative plans. But we shall focus on
three major forms of planning namely, strategic planning, tactical planning, and
operational planning
Strategic planning is long-term planning. It is projected for three or more years. It
involves analyzing of external and internal factors in the organization, such as
opportunities and threats, and positioning the organization for competition in that
environment.
Tactical planning is designed to develop concrete and specific means to implement
the strategic plan. Normally, middle managers are engaged in tactical planning.
Tactical planning is an intermediate activity.
Contingency planning occurs at this point. The purpose is to prepare the
organization for any contingencies arising from both external and internal
environments.
In operational planning, there is an assumption of the existence of organizational
goals and objectives as well as the specific processes to achieve them. Operational
planning, which is short range, breaks down the objectives into specific tasks and
activities that support the tactical and strategic plans.
I shall discuss more on planning in Chapter 16 in relation to the specific exercise that
you shall go through in the assessment center.
6.2 Organizing
Organizing is a management function that involves designing the structure of the
organization and allocating human resources to attain the organizational objective.
The structure of the organization provides the distribution and coordination of work.
Organizing also involves designing of the individual jobs within the organization. It is
done through the following steps: identification of the work to be performed,
classification of the work, assigning these groups of work to individuals, delegating of
authority and accountability, and coordinating these authority-accountability
relationships of various activities.
Many organizations, to improve the morale of workers, encourage specialization of
work or variation and autonomy of work to increase productivity based on the
principle of empowerment, job enrichment, and teamwork.
Organizing also works on the clustering of jobs into departments.
Departmentalization is often done by function, product, geography, or customer but
there are other methods available to organizations.
There are three types of organization: line organization, functional organization, and
line and staff organization. The character and type of organization depends upon its
size and nature.
In line organizations, authority flow from the top down to the bottom. Under functional
organization, the work is divided into different departments. Each department
focuses on one type of work. Line and staff organization provides for specialists with
line executives. It is a combination of the line and functional form of organization.
6.3 Staffing
Staffing is a managerial function that involves obtaining, using, and retaining
qualified and
competent personnel to fill all positions of an organization, from the top to the lowest
level.
The primary purpose of staffing is placing the right person at the right job at the right
time.
The staffing process involves a series of steps, namely:
 Manpower Planning: It involves forecasting and determining the
organization's need for workers. How many workers are needed and what
competencies they must possess? How long shall they be needed by the
organization?
 Recruitment: Once the manpower requirements are identified, the process of
recruitment follows. Recruitment is a process of attracting and finding
applicants to fill up positions in the organization and help achieve its goals
and objectives.

 Selection: Once a shortlist of applicants has been made, the selection

process takes place. From the group, the applicants who best fulfills the
qualifications and requirements of the position are chosen. This process
applies to all positions and areas of work.
 Placement: After the appointed candidates go through an orientation
program, they are matched with the right jobs. Rank and responsibilities are
given them.
 Orientation and Induction: After placement, the new worker is introduced to
his job and the organization. This process helps condition the new worker to
his work environment so that he can perform effectively and efficiently.
 Training and Development: This process, designed by the organization,
consists of activities that develop the knowledge, skills, and attitudes of
workers for professional growth or simply to improve their work performance.
 Performance Appraisal: This process involves a rational assessment and
evaluation system to check worker's behavior and work performance against
the organizational benchmarks.
 Compensation: It involves the payment of equitable amount of wages and
salaries to the workers. When workers are satisfied with the organization's
compensation scheme, their performance is sustained or improved.
 Transfer: Movement of workers to similar positions in other work units.
 Promotion: Well-deserved promotions are given to workers with outstanding
performances or contributions to the organization.
 Work Environment: The duty of an organization is to foster a good work
environment that motivates workers to perform better and raises their morale.
An environment of creativity can also be instrumental in improving quality of
products and services.
6.4 Directing:
Directing is a process of instructing, guiding, and overseeing the performance of
the workers towards the accomplishment of organizational goals. Directing is
"management in action".
The main characteristics of the Directing Process:
 Multi-level function: At all levels of the organization, there is a superior-
subordinate relationship. In this relationship, the manager guides and
motivates subordinates to attain their individual and unit objectives.
 Implements plan: While the other functions of management prepare a
course and platform for action, directing implements plan.
 Continuous activity: Managers may resign or retire from service or
employees may do the same but the function of directing continuous in the
life of the organization.
 Creativity and Flexibility: The purpose of the directing function is to
implement the organizational plan. Implementing a plan demands
creativity and flexibility.
 Human Factor: Behavior is complex and unpredictable. In organizations,
managers handle people. As such, the directing function requires careful
understanding of human behaviors. Managers must have interpersonal
skills.
Principles of Directing:
 Maximum Contribution of Worker: The aim of an organization is to
encourage the maximum contribution of every worker to the overall
organizational performance. The manager must exert great efforts to
inspire and motivate the team.
  Harmony of Goals and Objectives: The manager is expected to resolve
conflicts between management and workers. At times, the manager gets
caught between the interests of workers and the organization. He must
find a way to persuade both parties to an amicable resolution.
 Unity of Command: It is expected that a subordinate should receive
instructions from only one superior at a time. If he receives several
instructions from different sources, it shall result into confusion and conflict
in the organization.
 Clarity of Communication: Managers may not have the beautiful voice of
a television show hosts but they are expected to communicate instructions
clearly in written or verbal forms. Instructions must deliver the same
message to avoid confusion among the workers and thus waste resources
of the organization.
 Appropriate Skills and Techniques: Managers must use the appropriate
skills and techniques in the varying situations or conditions that the unit or
organization is facing. Sometimes verbal instructions are effective when
the tasks are complex. Using written or other media of communication
shall be most effective and efficient for this purpose.
 Use on Informal Organization: Within every formal organization, there is
an informal group or organization. This is a powerful group that can act as
the "sparkplug" of the organization. The manager can lead the
performance of the whole organization through this core group. Some
managers introduce ideas initially to this group for criticisms and
suggestions before they fully implement these ideas.
 Use of Leadership Skills: While there is an ongoing debate on the
Dualism Theory of the Manager-Leadership, it does not prevent the
manager from using the "steering influence" of both skills in guiding the
organization, through its workers and teams, to the vision.
 Use of Follow-Through: Managers monitor the progress of work of the
organization to see if their performance meets the standards. This can be
viewed through their responses to policies, procedures, and instructions
that the manager and the organization issue. If there are lapses in work,
the manager must follow up the communicated tasks or norms.

6.5 Controlling:
Control is a line function which is pervasive at all levels of management. The main
purpose of control is to determine if the standards of performance are being
followed. If there are deviations or variances in the performance, corrective action
must be implemented immediately to avoid losses in profits.
The process of controlling involves the following activities: establishing standards of
performance, measuring performance, comparing the actual performance with the
standard, and finding variances or deviations, and taking remedial actions.
Performance standards are sometimes stated in terms of revenue, costs, or profits.
Sometimes they are stated in quantity of units produced or quality levels. At any rate,
performance measurement can be viewed in financial statements, production
reports, sales reports, or client satisfaction index. These are tools that the manager
can use in the controlling function.
Sometimes managers corrupt control by using it to manipulate subordinates. It
usually happens in the workplace. In contrast, management control means ensuring
that the activities of the workers always directly contribute to the organizational goals
and that standards and policies are adhered to.
Management control monitors compliance through the plans. The plans set the
standards of performance of all workers and units of the organization. Any deviation
from the plan becomes the focus of management control.
Organizations still use budget and performance audits as control techniques. A
budget audit examines and verifies records and supporting documents. A
performance audit determines if the records of performance are true. Although
controlling is often viewed in the financial perspective, the manager can also control
all other processes existing in the organization to effect compliance to standards.
7. Skills of a Manager
In the assessment process, you shall be displaying your skills from your set of KSAs.
If you do not show your management skills, assessors shall have nothing to observe
from you. Study these management skills from my discussion below.
Management skills are abilities that a manager needs to implement specific tasks in
an organization. Some regular skills are needed to run the day-to-day operations.
Some special skills are also needed to avert or solve crisis. Such skills can be
developed through education or experience.
Management skills, in the traditional sense, is not enough to run an organization
effectively and efficiently. The leading skills are necessary to complement
management skills. In the "steering influence" concept both management and
leadership skills are one and the same. Taking both traditional and the Kaehler &
Grundei concepts, the management-leadership integration is essential to
organizational success.
Many modern-day writers list numerous skills and their classifications for effective
management. For simplicity, I revert to Robert L. Katz's 1974 article in the Harvard
Business Review, "Skills of An Effective Administrator". In this article, Katz provides
us the Three-Skill Approach. Katz uses the term "administrator" for manager. I shall
adopt the latter in my discussion.
Katz defines a manager as one who supervises the tasks of other persons and takes
responsibility for achieving specific objectives. Based on this definition, managers
depend on three basic skills, namely: technical, human, and conceptual. He
assumes that these skills are linked together but each skill deserves a separate
discussion.
• Technical skill
Technical skill implies knowledge or proficiency in a specialized task involving
methods, procedures, processes, or techniques. It requires specific knowledge and
expertise in operating the tools and systems in a specific field. Among the three
skills, technical skill is probably the most familiar skill as it is mostly required from the
greatest number of workers.
In this age, technical skills refer also to computer hardware and software
applications. Web tools aid in designing different types of products or services and in
marketing such services and the products. Technical skills have greatly diversified
due to advances in technology.
• Human skill
According to Katz "human skill is the executive's ability to work effectively as a group
member and to build cooperative effort within the team he leads". (Katz, 1974) To
rephrase, human skill is the ability of a manager in developing interpersonal
relationships with workers and build cohesiveness of teams in meeting
organizational objectives or improving performance.
As a point of observation, technical skills may diversify or get specialized but human
skills always deal with the same people and organization. However, the methods of
dealing with people can always be improved.
• Conceptual skill
Katz wrote, "As used here, conceptual skill involves the ability to see the enterprise
as a whole; it includes recognizing how the various functions of the organization
depend on one another, and how changes in any one part affect all the others; and it
extends to visualizing the relationship of the individual business to the industry, the
community, and the political, social, and economic forces of the nation as a whole.
Recognizing these relationships and perceiving the significant elements in any
situation, the administrator should then be able to act in a way which advances the
over-all welfare of the total organization". (Katz, 1974)
Summarily, conceptual skill is the ability to see the big picture, analyze the
relationships of elements, then act based on the findings. Comparing these three
skills: conceptual skills deal with ideas, human skills deal with people, and technical
skills deal with things.
8. What are the Qualities of a Good Manager?
The qualities of a good manager can be assigned into three groups: interpersonal
communication, team development, and self-awareness.
Interpersonal Communication
• Crafting a Vision and Communicating it
• Building a Work Culture of Mutual Trust
• Leading by Example and Inspiring Others
• Motivating Your Team
Team Development
 • Setting SMART Goals for Each Team Member
• Recognizing Your Team's Achievements
• Rewarding good work
• Coaching and Giving Feedback
• Career Pathing for Your Team
Self-Awareness
• Showing Humility and Vulnerability
• Showing Empathy
• Creativity and Openness to New Ideas
• Discipline and Commitment
• Inviting Feedback from Subordinates
9. Summary
As I said earlier in this chapter:
 In planning, you shall be instructed to prepare an indicative annual plan and
budget for your organization.
 In organization, you might present a simple structure of your organization
showing line and staff functions. The presentation may be expanded to
include departments.
 In staffing, the facilitator may instruct you to draw a simple manpower or
human resource management plan.
 In directing, you may be asked to write a memorandum or an executive
order. In controlling, the facilitator may require you to present a simple
performance measurement tool.
The knowledge you have gained from this chapter shall help you develop the skills
and attitude needed to pass these areas of competency.