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 What Happened

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.
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.

MANAGEMENT FUNCTIONS

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

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.
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 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

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.
II. 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.

POST TEST:
A. Multiple Choice

Instructions: Write the letter of the correct answer in your activity notebook.
1. This is a management function which includes assigning tasks to various
individuals.
a. Planning b. Leading c. Staffing d. Controlling
2. This is a management function that involves choosing tasks that must be
performed to attain organizational goals, outlining how the tasks must be
performed and indicating when they should be performed.
a. Planning b. Leading c. Organizing d. Controlling
3. This is a management function which is also referred to as motivating and
directing.
a. Planning b. Leading c. Organizing d. Controlling
4. This is a management function where a manager’s role is to gather information that
measures performance of his subordinates and compare present performance to pre-
established norms.
a. Planning b. Leading c. Organizing d. Controlling
5. This is a one of the category of management style which leaders and workers have
a two-way communication and team members share their opinion in solving issues of
the company.
a. Autocratic b. Persuasive c. Consultative d. Participative
6. Who is the Father of Scientific Management?.
a. Hugo Munsterberg b. Henri Fayol c. Frederick Taylor d. Max Weber
7. What is the guiding principle of scientific management found among the
choices below?
a. Rule of thumb
b. Freedom of association
c. Fluid working relationships
d. Scientifically select then train, teach and develop the workers
8. Which feature does not form one of Fayol's 14 principles of management?
a. Esprit de corps b. Initiative c. Order d. individualism
9. What management theory which involves the study of the conduct, demeanor, or
action of people at work?
a. General Administrative Theory
b. Organizational Behavior (OB) Approach
c. Scientific Management Theory
d. Henri Fayol’s General Administrative Theory
10. What management theory believes that each organization is unique as to
marketing, finance, and others?
a. General Administrative Theory
b. Organizational Behavior (OB) Approach
c. Scientific Management Theory
d. Henri Fayol’s General Administrative Theory

B. CROSS WORD
Instructions: Identify the words in this crossword using the hints below.
hints below. 6
 1 A I

7 C
2 O R L N
P

A S
3 L I G

I E
F

4 A I G

5 E E T
G

1. This word is a type of management that is a one-way leadership where there is a single
authority.
2. This word 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.
3. This word is the process of making plans for something.
4. This word is the fourth function of management.
5. This word is a non-stop process of ensuring continuity and growth within an organization.
6. This word is described as the practice of training people to obey rules.
7. This word demands assigning tasks, setting aside funds, and bringing harmonious relations
among the individual and workgroup or teams in the organization.
8. This word indicates filling in the different job positions in the organization’s structure.

C. 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?

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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?

_____________________________________________________________________________
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4. Which among the three management process are where present in

Mr. Julian’s management?
_____________________________________________________________________________
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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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