1. Chapter 3 Guevarra institute of technology Gingoog city Theory of Management in Business and Industry

2. The Meaning of Management The word management is derived from the Italian word , Maneggiare, which means “to train horses” or literally “to handle” the French words, Maneger, meaning “to direct a household”, i.e. “ to economize” and Menager, “ an act of guiding or leading”. Etymologically, therefore it means to handle , direct economically, guide and lead. 2 Guevarra Institute of Technology

3. Attributes of Management Management is the art and science of organizing, preparing and directing human efforts applied to control the forces and to utilize the materials of nature for the benefit of man 3 Guevarra Institute of Technology

4. Attributes of Management Management is the development of people and not the direction of things. 4 Guevarra Institute of Technology

5. Attributes of Management Management is the scientific utilization of men, money and materials to accomplish a desired purpose. 5 Guevarra Institute of Technology

6. Attributes of Management Management is simply stated and defined as “the getting of things done through efforts of other people.” 6 Guevarra Institute of Technology

7. Organization Management Organization is considered as the relationships of the structural elements in business ,including the individuals to carry on the work to accomplish the desired purposes Management as the planning , directing, controlling and coordinating of those elements Relationship between Management and Organization 7 Guevarra Institute of Technology

8. Organization Management Organization refers to the structure or form of an enterprise and the arrangement of all parts thereof in a manner suitable for use in service Management includes all those in charge of the direction of the work of others, those who will see to it that the parts so arranged and structured are used in service to best advantage. Relationship between Management and Organization 8 Guevarra Institute of Technology

9. Structural Factors Men Materials Machines Methods Money 9 Guevarra Institute of Technology

10. Who is Management? Traditionally, management means one individual or a small group of key people who make the significant decisions and keep the policy making power and function as an absolute power over the organization. 10 Guevarra Institute of Technology

11. What is Good Management? When competent men are placed as heads of the departments , when these men are responsible for and are in control of all activities and when they work as a team under the leadership of a strong executive. 11 Guevarra Institute of Technology

12. What is Good Management? When changes in business activities could be effected on short notice 12 Guevarra Institute of Technology

13. When is Management Considered Successful? When industry is efficient and this efficiency is measured concretely in terms of quality and quantity of products produced with the minimum efforts at the least possible cost. 13 Guevarra Institute of Technology

14. Planning Coordinating Directing Controlling Functions of Management 14 Guevarra Institute of Technology

15. Planning Is a method technique of looking ahead in order to meet work requirements and to reduce the amount of mental efforts required while work is being done. It is a continuing process. It emphasizes prevention rather than correction of delays. The essence of planning is to remember the value of time, the virtue of patience and the joy of originating. 15 Guevarra Institute of Technology

16. Coordinating It means concurrence in purpose and performance to secure harmony in action toward a common end. 16 Guevarra Institute of Technology

17. Directing It means the pointing of all efforts toward the known objective. 17 Guevarra Institute of Technology

18. Control It includes the restraining, checking and motivating influences exercised by the government. It requires a knowledge of what is being done, what should be done and what to do in order to rectify unsatisfactory conditions. 18 Guevarra Institute of Technology

19. Planned methods of procedure One of the most valuable mechanisms or aids of management. System materially aids in securing the desired results in the best possible way with the latest expenditure of time and effort. System, A Fundamental in Operating a Business 19 Guevarra Institute of Technology

20. Advantages of Proper Use of System System is the introduction or order and method wherever it is applied 20 Guevarra Institute of Technology

21. Advantages of Proper Use of System Everyday work becomes routine through a system 21 Guevarra Institute of Technology

22. Advantages of Proper Use of System System permits those in authority to devote their time and effort to more important work, such as planning, attending to major problems, searching for new markets and products, and the like. 22 Guevarra Institute of Technology

23. Advantages of Proper Use of System System aids in the control and reduction of costs 23 Guevarra Institute of Technology

24. Rules for Applying System System Used in a Particular Concern Should Reflect a Basic General Plan A System Must Represent a Definite and Useful Purpose. Maintaining a System Must Prove Worth Its Cost 24 Guevarra Institute of Technology

25. Rules for Applying System A System should be clear, simple, easily understood, and adequate to fit the need , but involving the least expenditure of time and effort. There Should be Frequent Periodic Checking. 25 Guevarra Institute of Technology

26. Guevarra Institute of Technology 26 Basic Principles of Management

27. 1. The Principle of Policy Making Guevarra Institute of Technology 27 Definite , clear-cut policies are essential to effective management General company policies Major Policies Departmental Policies

28. 2. The Principle of Improvement and Adjustment Guevarra Institute of Technology 28 To be successful, a business must advance ; it cannot remain dormant.

29. 3. The Principle of Balance Guevarra Institute of Technology 29 To secure proper development of business and efficiency in operation , a company must be internally well-balanced.

30. 4. The Principle of Relationship of Task and Accomplishment Guevarra Institute of Technology 30 A person works best and accomplishes most when he is given a definite job to be completed in a given time , the work being of a nature for which he is mentally and physically suited.

31. 5. The Principle of Individual Effectiveness Guevarra Institute of Technology 31 Individual effectiveness is increased through training and improved working conditions

32. 6. The Principle of Simplicity Guevarra Institute of Technology 32 All Elements which are not essential to successful operation should be eliminated and all those retained should be applied in the simplest way.

33. 7. The Principle of Specialization Guevarra Institute of Technology 33 Scientific distribution of work results in specialization of effort and task

34. 8. The Principle of Standardization Guevarra Institute of Technology 34 Whenever practicable, best practices should be determined , expressed in terms of definite units or standards and adopted as a pattern for use in operation or performance and in planning and control

35. 9. The Principle of Financial Incentive Guevarra Institute of Technology 35 Remuneration should be in direct proportion to the value of accomplishment

36. 10. The Principle of Human Relations Guevarra Institute of Technology 36 Management succeeds or fails as human relations in business are intelligently or otherwise handled

37. 11. The Principle of Planning Guevarra Institute of Technology 37 In order to accomplish anything of importance , there must be planning in advance of doing.

38. 12. The Principle of Control Guevarra Institute of Technology 38 Planning is of little value unless there is subsequent control to make certain that the plans are carried out.

39. 13. The Principle of Cooperation Guevarra Institute of Technology 39 The efforts of two or more individuals working as a unit toward a common goal are greater than the sum of the efforts of the individuals working at individuals.

40. 14. The Principle of Leadership Guevarra Institute of Technology 40 Wise Leadership is the most important single factor in successful operation Good leadership implies : The ability to do what sets out to do The spirit to carry on until the task set is accomplished The personality and ability to win cooperation The skill to direct and control the efforts of others.

41. 15. The Principle of Delegation of Authority and Responsibility Guevarra Institute of Technology 41 Decisions should be made at the lowest practicable organization level Delegation means giving power to do certain things to subordinates and pointing out how that power is to be used.

42. 17. The Principle of Utilization of Executive Ability Guevarra Institute of Technology 42 Executive ability can be utilized fully by freeing it of the need to attend to all routine matters.

43. Guevarra Institute of Technology 43 The executive should have

44. 1. Physical and mental health Guevarra Institute of Technology 44 Vitality, strength and endurance are required of executives.

45. 2. Intellect Guevarra Institute of Technology 45 Clear thinking and intelligence is either creative or judicial

46. 3. Personality Guevarra Institute of Technology 46 The executive should have maturity , social orientation , personal magnetism that commands consent , cooperation, enthusiasm, the ability to inspire , persuasiveness and tact.

47. 4. Character Guevarra Institute of Technology 47 The good executive, as a leader, has integrity, and other excellent character traits

48. 5. Language Facility Guevarra Institute of Technology 48 The leader should not only know but he should also have the ability to teach and communicate what he knows.

49. Reference Guevarra Institute of Technology 49 Gutierrez, H., Pura, J. & Garcia, R. 1994, Business Organization and Management, 6th edn, R.M. Garcia Publishing House, Quezon City