Nature and Functions of

Management
Prepared by: Ms. May Ann R. Café
What is management?
Management is a process
of planning, organizing,
leading, and controlling
resources to achieve
specific objectives.
 Three aspects:
Management uses Management aims to
Management is a Process
Resources achieve Objectives

 People
 Planning  SMART
 Money
 Organizing objectives
 Materials or
 Leading  Perspectives in
machines
 Controlling management
 Time
Management is a Process

 It involves four functions: planning, organizing,

leading, and controlling which are collectively called
POLC.
 The four management functions are interdependent.
They are linked to each other to form a coherent set of
activities with a define purpose.
Management is not just about knowing
how to do the tasks properly. Being
motivated to do the required tasks is also
important. So apart from knowledge and
skills, a right attitude is essential in
management.
  Is a process of identifying the objectives of a
Planning task, an assignment, or a cause.
 Work Plan – is a visual planning tool in a form
of a summary table that usually contains the
following:
1) the Objectives,
2) the corresponding activities to accomplish the
given objectives,
3) the persons responsible for doing the identified
activities,
4) the time frame to accomplish each of the
activities,
5) The resources needed.
Example of Simple work plan
by a human resource manager
who is planning to conduct a
team building activity for
company employees.
Organizing
 Is defined as gathering the resources
required to carry out the activities and
allocating the effective and efficient use of
those resources (Schermerhorn, 2011).
 According to Peter F. Drucker,
effectiveness means doing the right things,
whereas efficiency means doing things
right.
 Organizing
EFFECTIVENESS (WHAT TO DO)

RIGHT WRONG
EFFICIENCY (HOW TO DO)

Discontinue doing this

RIGHT

Best scenario; do this action

action because you are in the
always.
wrong path.
WRONG

Continue to improve doing Worst scenario; never do

this action. this action.
Organizing
Apart from gathering and allocating resources, organizing also involves
the design and establishment of a management structure that fits the
business. Keep in mind that allocating resources also has aspects of
planning. It also reflects the working relationships among the different
positions within the management structure such as the reporting
arrangements between a manager and the his or her subordinates, and the
lines of communication between and among the different positions.
Creativity is essential in
organizing. Managers explore new
ways to improve processes and
end products.
Leading Leading is defined as a process which
encompasses the following:
 influencing other people to perform the
way you wish them to;
 directing other people to achieve the
desired objectives;
 coordinating the proper implementation of
activities;
 communicating effectively across various
groups; and
 motivating individuals to perform their
best (Schermerhorn, 2011; Dyck and
Neubert, 2012)
 Leading
 Leadership requires establishing and maintaining good
working relationship between the leader and his or her
subordinates.
 A leader must be able to relate well with the rest of the team
to help them realize their potentials and maximize them for
accomplishment of the team’s goal.
 The leader also inspires the team by being a role model of
work excellence and upright behavior.
Controlling Controlling is defined as monitoring and
evaluating activities undertaken in relation to
the stated objectives (Schermenhorn, 2011). It
involve the following:
 Identifying the gap (variance) between
what was planned and what was
accomplished in terms of quality and
quantity of work;
 Determining the main cause of problems
encountered during implementation;
Controlling
 Finding ways to correct those
problems;
 Preventing those problems
from recurring; and
 Seeking new ways to improve
how things will be done in the
future.
 Quality Control
 Quality control is required in manufacturing and service sectors.
 Customers expect consistent quality for products and services.
 Responding to costumer complains and utilizing management
information system (MIS) are part of quality control.
 MIS involves the proper use of systems and technology infrastructure
which allow timely and accurate collection, retrieval, and dissemination
of information across the organization.
Management uses Resources

 Resources pertain to people, time, money, materials,

machines, equipment, land, building, technology,
information and communication system, and other
forms of material and nonmaterial things.
 Resources are essential to achieve specific objectives.
Without the proper resources, you will not be able to
manage effectively.
Management uses Resources

 Having the right quality and quantity of resources at

the right time is fundamental in management. For
instance, there should be ready and sufficient supply
of resources for use in manufacturing a certain product
or providing a particular service to customers.
Resources conservation promotes long-term
growth and sustainable development (e.i.,
economic development without depleting
resources). It takes into account the future
needs of people and the environment in
general.
Management aims to Achieve Objectives

Management starts with having a clear set of objectives. The

objectives must be SMART.
 Specific – the objectives should be in a form of sufficient
detail such as in terms of quantity and quality.
 Measurable – the objectives can be assessed and verified
through objective performance indicators.
Management aims to Achieve Objectives

 Attainable – the objectives can be achieve by finding

your own ways or strategies.
 Realistic – the objectives can be accomplished given the
current and planned level of resources that you have.
 Time-bound – the objectives can be accomplished within
a definite time period.
Setting company objectives should carefully
weigh the conflicting interests of various
stakeholders, such as employees, customers,
suppliers, and the general public, to ensure a
common direction.
Investment Perspective
 The investment perspective in management pertains to
deriving an expected economic return or material benefit
from a given management activity or business project.
 Economic profitability is desired.
 This may come through producing a product or
delivering a service to target customers.
 Building capacities for growth and development.
Ethical Perspective
 Pertains to examining whether a desired objective is
morally right or wrong.
 It also examines if the way or manner or arriving at the
objective is fair or proper.
 The ethical conduct in management is guided by
principle of common good, which promotes management
practices that benefit or uplift the condition of the
greater number of people, and not just the few.
Individual Fulfillment Perspective
 It looks at how an organization seeks to satisfy the needs
of employees and develop their full capabilities.
 It empowers people within the organization to reach
their potentials.
 In the workplace, it develops individuals to become
more independent and self-propelling so as to benefit
themselves, the organization, and the greater society.
Mainstream Perspective vs. Multistream Perspective
Dyck and Neubert (2012) introduces a values-based way to
study management by comparing two contrasting
management approaches or perspectives that fall into a so-
called continuum.
• Mainstream Perspective: this approach focuses on the
traditional, materialist, and individualistic view of
management, such that the emphasis is maximizing
profitability, productivity, and competitiveness.
Mainstream Perspective vs. Multistream
Perspective
• Multistream Perspective: this approach focuses on a
balanced view of management by taking into account
the multiple forms of well-being for multiple
stakeholders. This perspective emphasizes corporate
social responsibility, signification of work, fairness in
dealings, and people’s participation.
 Trait Mainstream Multistream

Desire to lead For personal gain For others’ gain

Drive To get ahead To make a difference

Self-confidence “I can do it” “We can do it”

As an effective means As an end in and of

Honesty and integrity
to an end itself
Intelligence and Narrow instrumental
Broad holistic focus
knowledge focus