\

ORGANIZATION
AND
MANAGEMENT
MODULE 1.
Mr. Bernard Jay P. Oro
 TABLE OF CONTENTS
Introduction ……………………………………………………………
Module 1……………………………………………………………….
Warm up Discussion……………………………………………
Lecture………………………………………………………….
Activity ………………………………………………………...
Module 2.
Warm up Discussion……………………………………………
Lecture………………………………………………………….
Activity ………………………………………………………...

INTRODUCTION
This unit introduces you to the world of management. It discusses the meaning of management and the functions,
and evolution of the management theories that are instrumental in the development of the present concept of the
management. This unit also describe the role and the skill that a manager should possess in the performance of
their duties and responsibilities.

At the end of this lesson, the student will be able to

1. Discuss the meaning and functions of management
2. Explain the various Types of Management Theories; and
3. Appreciate the importance of management in the success of organizations.

(include the onjectives and do not forget the MELCS CODE)

2
MARY THE QUEEN COLLEGE OF QUEZON CITY
ORAGANIZATION AND MANAGEMENT
 MODULE 1: DEFINITION AND FUNCTIONS OF MANAGEMENT AND THE
DIFFERENT THEORIES OF MANAGEMENT

WARM UP DISCUSSION

`
Management Personal Introspection

Guide questions: (Write your answer in the space provided for.)

1. What do you understand about the term “management”?
2. As a student, how are you going to apply the concept of management in the classroom?

1. ______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
________________________________________________________________.

2. ______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
________________________________________________________________.

3
MARY THE QUEEN COLLEGE OF QUEZON CITY
ORAGANIZATION AND MANAGEMENT
 ` LECTURE
Management – is handling of people tactfully and the consolidation of their efforts and activities in the
organization.

Organization – is a group of people who work together in an organized way for a shared purpose/common good.

Planning – involves mapping out of exactly how to realize a specific goal.

Organizing – determines what tasks have to be done, who needs to do the task and how the tasks are to be
performed.

Staffing – involves thorough recruitment, selection, and hiring of potential personnel in the organization.

Directing – involves the supervision and motivation of manager towards his/her employees to be more productive
and efficient.

Controlling – deals with monitoring the company’s progress and ensuring that all other functions are operating
efficiently.
Classical Theory – is the oldest theory which gives emphasis on the economic rationality of people that through
their efforts yield greatest monetary benefits or income.

Neo-Classical Theory – believes that the best way toward gaining maximum productivity from workers is
through motivation, structure and supporting employers, workers intrinsic values in their job and positive social
relationship.

Modern Management Theories – focuses on the interaction between organizations, workers, and the
environment. The application of management knowledge is extended to non-business areas like Education,
government, health care and others.

Management of people has already been observed and has long existed as there were already groups of people in
every community even before. This setup gives different perspectives or ideas on how management is defined.
Management is defined as handling of people tactfully and consolidating their efforts and activity in the
organization. But according to Theo Heimann management can be defined in three ways:

1. Management as a noun, is used as singular collective noun (like group) which refers to a discrete nature of
grouping of managers or people in charge of running a company or organization.

2. Management as a process, it refers to organizational process that includes strategic planning, setting
objectives, managing resources, deploying labor force, financial assets and measuring results.

3. Management as a discipline, this refers to that branch of knowledge which is connected to study of
principles & practices of basic administration. It specifies certain code of conduct to be followed by the
manager and indicates various methods of managing enterprise.

4
MARY THE QUEEN COLLEGE OF QUEZON CITY
ORAGANIZATION AND MANAGEMENT
 LECTURE

The following are the different managerial functions that a manager exercise.

PLANNING
This includes defining goals, establishing strategy, and developing plans to
coordinate activities. It involves mapping out exactly how to realize a specific goal. It also requires knowledge to
create, develop and analyze opportunities which is known as strategic planning. There are two types of planning;

a.) Long range planning

b.) short range planning

ORGANIZING
This is also known as the backbone of management. It is the structure of the organization which help determines
what task to be done, who needs to do the task and how the task is to be performed and for whom to report to after
the task is achieved.

STAFFING
This involves manning in the organization. This requires recruitment, thorough selection of applicants and hiring
of potential employees for the organization. It is also responsible for training and development of the employee to
be promoted, transferred, demoted or even be fired from the organization.

DIRECTING
This involves the supervision and motivation of manager towards his/her employees to be more productive and
efficient. When there is a high morale in the organization, it usually has a significant impact on the performance
and productivity of the employees. Therefore, there is a need for the manager to motivate employees, supervise,
and direct them to be more effective and efficient at work. Good communication is essential since this builds
positive interpersonal relationship from and among employees. Thus this can resolve conflicts that might arise in
the organization.

CONTROLLING
This deals with monitoring the company’s progress and ensuring that all other functions are operating efficiently.
Since this is the last stage, uncertain situation usually arises that might disrupt the operation of the business.
Therefore, there is a need for the management to exercise corrective actions after thorough assessment and
evaluation.

5
MARY THE QUEEN COLLEGE OF QUEZON CITY
ORAGANIZATION AND MANAGEMENT
 LECTURE

The following are the different Theories of Management:

The Classical The Neo-Classical The Modern

Theories of Theories of Theories of
Management Management Management

Classical Theory (1900 – 1920’s) is the oldest theory. This theory evolved in response to the shift from handicraft
to industrial production. The emphasis is on the economic rationality of people and organizations, motivated by
economic incentives that through their efforts yield greatest monetary benefits or income.
Classical management theories come in the likes of:

Theorist Theory
Max Weber (1905) The Theory of Social and Economic Organization
- follows the principles of bureaucracy such as; management
by rules, employment are based on technical qualification
and other principles.
Frederick Taylor (1911) Principles of Scientific Management
-proposed an objective and systematic method to identify
“the one best way” to do a job using scientific selection and
training methods; cooperation and clear division of
responsibility between managers and workers; pay for
performance.
Frederick Taylor (1912-1924) Time and Motion Studies
-The expected results are employee satisfaction,
productivity and efficiency.
Henry Gantt (1910-1915) Project Scheduling or the Gantt Chart
- a project scheduling model for increasing the efficiency of
project execution and completion.
Henry Fayol (1916) The Administrative School of Management
- emphasize that managers need specific roles in order to
manage work and workers. He enumerated
6 functions/roles of management the forecasting, planning,
organizing, commanding, coordinating and controlling.

6
MARY THE QUEEN COLLEGE OF QUEZON CITY
ORAGANIZATION AND MANAGEMENT
 LECTURE
Neo-classical theories believe that the best way toward gaining maximum productivity from workers is through
motivation, structure and supporting employees, consider the worker’s intrinsic value in their jobs and having
emphasis in the positive impact of social relationship of worker productivity.

Under neo-classical theories, theorist focuses on human relations and behavior of the employees.

Theorist Theory
Mary Parker Follett Participative Leadership
- Workers and managers equally share power and
responsibility for decision making and therefore,
their outcomes.
Hawthrone Studies The Hawthrone effect
- Workers care about self-fulfilment, autonomy,
empowerment, social status and personal
relationship with co-workers and managers.

Elton Mayo / Fritz Roethlisberger Human Relation Theory of Management

- People are social being, motivated by social
needs. The psychological needs of
individual significantly impact group
performance.
Chester Barbard The Function of the Executive
-proposed the acceptance theory of authority
which organizational goals will be achieved and
managerial authority will be accepted if workers
believe that their individual needs are being meet.

Abraham Maslow Hierarchy of Needs Theory

-If motivation is driven by the existence of
unsatisfied needs, then it is worthwhile for a
manager to understand which needs are more
important for individual employees.
Douglas McGregor The Theory X and Theory Y
- Theory X states that workers inherently lazy,
lack of ambition and prefer to be directed rather
than take responsibilities. While Theory Y
workers seek out and fulfil responsibilities of
their own. They apply ingenuity, creativity and
hard work to meet organizational goals.

7
MARY THE QUEEN COLLEGE OF QUEZON CITY
ORAGANIZATION AND MANAGEMENT
 LECTURE
The Modern Theories of Management
Dealing with complexity is the core of modern management theory. Focus is on the interaction between
Organizations, Workers, and Environment.

It is a synthesis of several theories such as, behavioral science, Mathematics, statistics, operations / quantitative
research and computing technologies.

Application of management knowledge is extended to non-business areas like education, government, health care
and others.

Theory Theorist
General System Theory Ludwig Von Bertalanffy (1937)
- each part has a role to perform so the whole
can accomplish its purpose

Contingency Theory Joan Woodward (1965)

- argued that technology and production system
are critical aspects of organizational design;
advanced a contingency approach to organizing

P. Lawrence / J.W. Lorsch (1967)

- suggested that successful organizations match
their structure to the nature of the environment

Daniel Katz / Robert Kahn (1966)

- present a unified, open systems approach
extending organizational theory beyond the
boundaries of a single organization.

Fred Edward Fiedler (1967)

-argued that leadership effectiveness is
contingent upon two interacting factors.
Leadership style and situational
favourableness.

8
MARY THE QUEEN COLLEGE OF QUEZON CITY
ORAGANIZATION AND MANAGEMENT
 ACTIVITY NO 1. ____
NAME: ADVISER:
GRADE AND SECTION: CONTACT NUMBER:

Practice Task 1 - Write True if you believe that the statement is correct and FALSE if the statement is incorrect.
_______1. Management is on tactfully handling the machineries.
_______2. Management as process refers to discrete nature of groups of people.
_______3. Controlling exercises corrective measures after thorough monitoring and evaluation.
_______4. Positive interpersonal relationship from the manager and among employees is significant in the
organization.
_______5. Planning creates and develops strategies and analyzes business opportunity.
_______6. Classical theory perceives that maximum productivity of employees can be obtained through
motivation, structure and supporting employers.
_______7. The oldest theory is the Neo-Classical theory where it evolves in response to the shift of handicraft to
industrial production.

Now, let’s have fun! Read carefully the given definitions below and supply the missing word that gives
its exact description. Write your answer in the word scale.

1
5

7
3

1. Management as a________ , refers to organizational process that includes strategic planning, setting
objectives, managing resources, deploying labor force, financial assets and measuring results
2. One of the management functions that ensure that all other functions are operating efficiently andtake
corrective action if necessary is called_________.
3. Management as a ______, is used as singular collective noun (like group) which refers to a discrete nature
of grouping of managers or people in charge of running a company or organization.
4. This function of management is said to be the backbone of the organization, it is called _____, where it
helps to determine the task to be done, who and how the task needs to be performed.
5. Good interpersonal relationship is very essential that impact the job performance and efficiency of an
employee. This management function is called __________. .
6. __________ theories believe that workers must be motivated, the structure and social relationship among
employees and managers must be observed for maximum productivity of the workers.
7. This theory evolved in response to shift from handicraft to industrial production, it is called _________
theory.

9
MARY THE QUEEN COLLEGE OF QUEZON CITY
ORAGANIZATION AND MANAGEMENT
 ACTIVITY NO 2. ____
NAME: ADVISER:
GRADE AND SECTION: CONTACT NUMBER:
How are you going to manage your time at home being productive even in this time of pandemic? Specify the
activities that you can do and how are you going to carry on the task/s

10
MARY THE QUEEN COLLEGE OF QUEZON CITY
ORAGANIZATION AND MANAGEMENT