Introduction to Shop Layout and Management

Topic I Introduction to Shop Layout and Management

Introduction

The Philippines, which is also included in the global economic crisis, have a number
of Business Corporation, big or small, public or private who were forced to close down. The
situation was caused by the many strikes stages by different labor unions.

The causes of strikes go down to the failure of management to resolve conflicts in

organization and the attitudinal aspects of both management and labor.

In putting up and managing an industrial enterprise, a manager should look into the
improvement of worker’s attitude to work, safety, and security in their job.

It is therefore for us new in the business world to establish an industrial shop to be

familiar with some basic concepts and principles of shop management.

Concept of Industrial Enterprise

Industrial enterprise refers to the field of manufacturing industries, the essence of which is
the production or transformation of raw materials into finished products wanted or
needed by the society.

Industrial pursuits:
1. manufacturing
2. assembly
3. servicing

These sectors make use of land, labor and capital (money, materials produced by men
and machineries) in variable proportion to turn out desired goods and services for economic
sustenance.

Land covers the physical location of the industrial plant and natural resources.

Labor includes mental, physical or manual, and attitudinal characteristics or

description of individual engaged in the enterprise.

Capital refers mainly to buildings, tools, machines, equipment and materials produced
by man and used to bolster production.

Maintenance, Shop and Management

Maintenance is the act of maintaining; the upkeep of property or equipment; or the

state of being maintained.

1. To check, repair, and service equipment and machineries.

2. To keep and maintain the satisfactory operating condition of machineries and
equipment.
3. To test the equipment before starting, during operation, and after it is stopped with
a view to find out defects if any and service it.
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4. To do preventive measures to keep the machineries in good operating conditions.

Maintenance therefore involves preventive and corrective measures and is done partly
or wholly to the machine depending upon its condition and the kinds of services offered by
the shop.

Shop is a building, room, or establishment where the manufacture, production,

assembly, and / or servicing and repairing, and other kinds of maintenance work are
performed. It includes an office, a tool room, and work areas, testing equipment, parts and
materials storage room.

School Shop vs Production Shop

School Shop. The inputs are the students and the outputs are the graduates with
specific skills. The shop is intended for instructional purposes.

Production Shop. The inputs are the workers and the outputs are the products.

Production in a maintenance work refers to the result or output. This could be

quantified in terms of number of work finished, repaired or troubleshoot, numbers of finished
products or items completed.

Layout is the proper management of the shops. It involves the different plans of the
areas.

Shop Management refers to the control of physical condition and the material things
that make up for effective learning and working for the individual who is the real center of
educational or the production shop.

Management

Introduction

What does it mean to be a good manager? Are there certain principles that managers
should follow to be successful? Are managers and leaders the same? We probably have on
ideas of what it takes to be a good manager, and everything will get a chance to discuss their
ideas.
Why do we care being a good manager. We are all managers of something. Whether it
is managing our individual budget or managing a large corporation, we all manage. Being a
good manager can save you lot of time, energy and money, as well as bring you the
satisfaction of handling situations effectively. Good managers impact others in positive ways.
Good managers are a valuable resource in our personal and professional lives.

Management Defined.

Whenever a group of people gets together for the attainment of a common set of
goals and objectives, management is involved. Whenever there is a need to manage the
movement and work of people in different capacities or levels of performance, management
is necessary. Management is done not only to attain the desired objectives but also to plan,

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organize, direct and evaluate its accomplishments with a view of effecting changes for
improvement.

A company organization is usually pyramidal in design with the topmost part

occupied by the manager or the president who is usually the owner or the major stockholder.
Inspiring him are the goals and objectives of the company which he should attain at a
particular time with the help of his middle management or supervisors. The objectives are
transformed into department goals and objectives, and are carried out by the rank and file
such as the mechanics, workers, or laborers.

PRINCIPLES OF MANAGEMENT

A principle is a fundamental truth about a phenomenon which explains and establishes cause
–effect relationship. These principles are derived on the basis of observation, experiments,
experience and analysis of events. These principles serve as guides to thought and action. A
body of interrelated principles dealing with the same subject matter constitutes a theory thus
the theory of management consists of a number of principles, duly recognized and
systematized and concerned with the management of an organization.

Management principles are stat elements of truth that explain and establish cause-effect
relationship between various variables and enable a manager to perform the functions
successfully and serve as guide s to run the organization properly, these principles are
practical guidelines for managerial thinking decision making and action behavior.

 Management principles are universal and are applicable to all types of organization
business or non business government or private enterprises.
 Management principles are flexible and not rigid. They are capable of adopting to
every need. They can be modified as per requirements of the situation and
environment, through providing useful guide lines for future course of action
 Many management principles are not standardized. They are concerned with human
behavior, which is not standardized and is highly unpredictable. So management
principles hold good in a large number of situations and need to be modified in
specific conditions. That is why the management is regarded as in exact of soft
science.
 Management principles are not only descriptive but are predictive or normative also
 Management principles are equally significant. No principle can be said to have
greater importance than the other

A number of thinkers, philosophers and practioners has contributed to the evolvement of

principles of management during 19th and 20th century, but two prominent names among the
pioneers are F M Taylor and Henri Fayol.

Definition of Management

It is the Management that provides planning, organization, and direction which are necessary
for business operations.

In a more important sense, management is a vital function concerned with all aspects of the
working of an enterprise.

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Evaluation and nature of management

Definition

 Management is concerned with direction and control over the various activities
and work for the attainment of the objectives laid by the administration
 Executive function mainly convened with carrying out the policies laid by the
administration

ORIGIN

 Management –wide and comprehensive subject

 developed since civilization
 present state has been achieved gradually
 Actual development in the past 100 years only

So, Management is what management does:

According to Peter F. Drucker, “Neither results nor do resources exist inside the business.
Both exist outside”.

It is not enough to collect the physical equipment, materials, labor and capital to work a
business organization. These should be worked in coordinated manner, for achieving
optimum results.

Management is the function of guiding, directing and unifying human efforts and activities
for the accomplishment of given tasks.

Mainly, management is a task of planning, coordinating, motivating and controlling the

efforts of others towards the specific objective.

Management is essential at every stage of life and management is a function that has its place
not merely in the world of business, but in any situation, which involves the human effort and
its use for achieving a definite goal.

In short, management is getting things done through others [i.e.] people. It is simply
management of human resources. It is not simply man-management.

But on the other hand, willingness to work has to be created, their (workers) co-operation
obtained and goodwill sustained.

Management is a two-way traffic. An organization depends upon its employees as much as its
employees depend upon it.

In a music performance, the vocalist is the principal performer. He is followed by

instrumentalists. There must be perfect co-ordination and harmony among them. Then alone
it can be a successful performance. The singer when accompanied by other instrumentalists
forms a group.

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This group works in harmony and cohesion. There is perfect management. To give another
illustration: there are ten workers. Another man is there as supervisor. It is not simply man-
power management and work extraction. There is something more. Each worker has to do his
work. He manages his part.

Then all the ten do the joint work as a group. Apart from these ten individual workers, there
is an unseen body that has to be judiciously managed. That is group. This is the eleventh
factor, which the supervisor has to deal with.

Each individual may do his work well. But the group work alone delivers the goods. Here the
supervisor has to play his part. Leadership is required to manage men and a group.

[b] Management is a universal phenomenon

The very survival of human being down the ages has depended on his skill for managing the
resources at his command. Management is relevant even to the personal life of an individual.

A successful man in any walk of life knows how to manage his affairs [i.e.] he is capable of
getting the utmost out of his time, money, energy, and social connections.

A student, a business man, a house wife and others know the art of management. But
generally, management means utilization of group effort. This effort is to accomplish for
reaching certain goal.

[c] Any management consists of two kinds of environment – external and internal

The external environment consists of (i) consumers (ii) society and (iii) government.

The environment [i.e.] internal consists of the co-ordination among man, machine and work.
With these, objectives have to be achieved.

The management has to maintain a working relationship with the labour. The supply of raw
materials, investments, etc. has to be maintained.

Above all, there must be an integrating force of the employee’s efforts into company’s plans
and programmes.

[d] Management as art and science

(i) Management is an art as well as a science

Any art is creative. Art involves know how or skills.
Art is accomplishment of some results. Management requires creative sense at every stage.
Every art piece has the stamp of the personal touch of the artist. So also, every manager has
his own way of getting things done.
A manager cannot solve a problem with his experience and intelligence only.
New approach is necessary to solve a problem especially in the affairs of any management.
Art is critical judgment, instinctive perception and inspiring imagination. Every human being
is different. To get things done, imaginative approach is necessary on the part of a manager.

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(ii) Science is systematized knowledge, theories, laws, etc. Science is rational and practical
approach.

Science requires proof to the point of mathematical precision.

Management has become a body of organized and systematized knowledge.

General principles govern the science of management. Management, as a science, has

developed perfect techniques. So, management is both an art and a science.

[e] Management as Profession

Management, recognized as a profession, has been introduced in the universities. In the

modern way of life, thousands of employees have to be managed.

Not only personnel is involved in management, there is human psychology also.

The profession of management, like other professions, requires expert knowledge, training
and practical experience.

The science of management has become multifaceted as it deals with men and machines, with
creditors, customers, government, labour unions, business problems, etc.

[f] A critical appraisal of Management

Management is the art of creating proper, congenial, harmonious and social environment for
getting things done.

Management is a technique of removing hurdles and getting over difficulties with no delay
and also, getting on smoothly with the concerned people.

Management is not merely assembling machines and men.

It is not even personnel management. It is getting the co-operation and goodwill of the people
concerned.

[g] Management and Administration

It is said that there is not exact difference between management and administration.

There is another school that asserts management is quite different from administration.

The third school is of the opinion, that management includes administration.

[h] According to Horence and Tead, Administration is the process of thinking and
Management is the process and agency of actual operation

At higher levels, the management is more concerned with administration and less with
management.

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According to Brech, “Management is the generic term for the total process of executive
control and he regards, administration as that part of management which is connected with
the installation and carrying out with the procedures by which the progress of activities is
regulated and checked against plans”.

MANAGEMENT—Importance

1. Maintains discipline
2. Distributes work
3. Co-ordination
4. Improves efficiencies
5. Suggest new Ideas and improvement
6. Storing and recording
7. Arranging payments and keep records
8. Marketing and publicity
9. Importance to labour grievances and maintain good human relations for achieving the
goals

Basis Management Administration

Management is an art of getting things done
It is concerned with formulation of
Meaning through others by directing their efforts
broad objectives, plans & policies.
towards achievement of pre-determined goals.
Administration is a decision-making
Nature Management is an executing function.
function.
Management decides who should as it & how Administration decides what is to
Process
should he dot it. be done & when it is to be done.
Management is a doing function because Administration is a thinking
Function managers get work done under their function because plans & policies
supervision. are determined under it.
Skills Technical and Human skills Conceptual and Human skills
Level Middle & lower level function Top level function

Management Functions

Henry Fayol first real thinker of management philosophy has classified the functions as

1. Planning
2. Organizing
3. Commanding (directing)
4. Staffing
5. Controlling

Planning:

Planning is deciding in advance - what to do, when to do & how to do. It bridges the gap
from where we are & where we want to be”. A plan is a future course of actions. It is an
exercise in problem solving & decision making. Planning is determination of courses of
action to achieve desired goals.

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Organizing

It is the process of bringing together physical, financial and human resources and developing
productive relationship amongst them for achievement of organizational goals.

 To organize a business involves determining & providing human and non-human

resources to the organizational structure. Organizing as a process involves:
o Identification of activities.
o Classification of grouping of activities.
o Assignment of duties.
o Delegation of authority and creation of responsibility.
o Coordinating authority and responsibility relationships

Staffing:

The main purpose of staffing is to put right man on right job i.e. square pegs in square holes
and round pegs in round holes.

According to Kootz & O’Donell, “Managerial function of staffing involves manning the
organization structure through proper and effective selection, appraisal & development of
personnel to fill the roles designed on the structure”.

Directing

It is that part of managerial function which actuates the organizational methods to work
efficiently for achievement of organizational purposes.

It is considered life-spark of the enterprise which sets it in motion the action of people
because planning, organizing and staffing are the mere preparations for doing the work.
Direction is that inert-personnel aspect of management which deals directly with influencing,
guiding, supervising, motivating sub-ordinate for the achievement of organizational goals.

Direction has following elements:

 Supervision
 Motivation
 Leadership
 Communication

Controlling

Controlling is the measurement & correction of performance activities of subordinates in

order to make sure that the enterprise objectives and plans desired to obtain them as being
accomplished”. Therefore controlling has following steps:

 Establishment of standard performance.

 Measurement of actual performance.
 Comparison of actual performance with the standards and finding out deviation if any.
 Corrective action

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Functional areas

1. Production
2. Marketing
3. Finance
4. Personnel

Production

 Purchasing
 Materials management
 R&D

Marketing

 Advertising
 Marketing research
 Sales management

Finance

 Financial accounting
 Management accounting
 Costing
 Investment management
 Taxation

Personnel

 Recruitment and selection

 Training and development
 Wage and salary administration
 Industrial relations

Various functions of management

1. Forecasting
2. Planning
3. Organizing
4. Directing
5. Motivating
6. Coordinating
7. Controlling
8. Communication
9. Leadership
10. Decision making

Three levels of Management

Management ---Levels
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1. Top level
2. Middle level
3. Lower level

Functions of Top level management

1. Overall management(goal, objectives)

2. Overall operation
3. Overall relationship(internal and external with Govt., etc)

Functions of Middle level management

1. To execute the various functions

2. To operate and co ordinate
3. To develop and train
4. To inculcate feeling among employees

Functions of lower level (supervisory)

1. Related to work force

2. Takes decision from middle level
3. Guide the worker
4. Provide training to worker
5. Solve day to day problems
6. Maintain good HR

The term management has the following three classifications:

Top management

Middle management

Lower management

1. Top Management

Formulation of policy, co-ordination and motivation of the personnel.

E.g. Managing Director, Secretaries, Finance Directors, etc.

1. Middle Management

Co-ordination and motivation, planning and control of activities.

E.g. Heads of Departments and Superintendents, Managers.

1. Lower Management

Supervision and expert decision on technologies of operation and day-to-day activities

(including administrative procedures).E.g. Foreman, First line Supervisors.
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Responsibilities of Management

(i) The responsibility of management is three fold. 1. The masters who have appointed them
2. Managers, who are managed by the masters and 3. The society at large.

(ii) Manager a business, managing managers and managing workers and work. These are the
elements of management.

(iii) Prof F. Drucker says, “It can justify its existence with its authority by the economic
results it produces”.

The economic achievement alone satisfies the investors and the community.

Only a productive enterprise, alone is profitable. A productive enterprise involves human and
material resources.

According to Drucker, “The main job of management is organization of the work so as to

make it most suitable for human beings, and organization of people so as to make them work
most productively and effectively”.

The role of manager

A manager has to play many roles to perform his duties. A role is an organized study of
behavior belonging to an individual, office or position.

The manager is working link between the company and its environment. The manager [i.e]
the chief executive works for his company effectively by guiding it properly and makes the
environment serve the company purposefully, profitable and smoothly.

The environment consists of competitors, suppliers, government, financiers, customers, and

others. In short, a manager has to manage a complex situation every time.

The work of manager can be divided as follows. This is according to the research study of
Henry Minitzberg.

(i) Work dealing with inter-personal relationships.

(ii) Work dealing with information transfer.

(iii) Work connected with decision making.

Thus the phases of manager’s role in the Administration are

1. Inter-personal
2. Informational and
3. Decisional.

Note: As the head of an organization, he has the Liaison role to maintain contacts with his
counter parts and others in the community concerned with his unit.

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The manager maintain constant contact with his subordinates, motivates them and activates
them. He communicates his instructions and works with them to reach his desired objectives.

The manager is a kind of nerve centre of organizational information. The manager negotiates
with the suppliers, agents, and others.

A manager naturally occupies a central point in the system. A manager is an entrepreneur.

A manager is always prepared to meet any crisis.

The danger may be from within or from without. A manager has to manage his resources
prudently and profitably. A manager has to be a shrewd negotiator.

AUTHORITY AND RESPONSIBILITY

Authority means “right to act, decide and command”. The delegate will not be in a position to
perform his task properly unless he is given necessary powers (i.e. authority). Hence,
whenever a task is assigned to person, he must be given sufficient powers to exercise control
to achieve the task.

Responsibility is the obligation of a subordinate for the performance of any job allotted by
the superior. As explained earlier a superior officer cannot perform all the activities himself
and hence certain responsibilities and authorities are delegated to his assistants. Thus the
delegation is not a one-way process. Authority and responsibility both go hand in hand and
unless a man is given necessary authority to perform certain duties he cannot be held
responsible.

DELEGATION OF AUTHORITY:

It means giving some one permission to do certain things.

NATURE OF MANAGEMNT

Management is a multi-disciplinary in nature and is distinct activity. Management has been

regarded as science and an art and a profession. The true nature of management can be
known only after studying these aspects of management. The following are the salient nature
of management:

1. Management is a science and an art

2. Management is universal
3. Management is goal oriented
4. Management is economic resource
5. Management is distinct process
6. Management is a group activity
7. Management is an intangible force
8. Management is a multi-disciplinary subject
9. Management is dynamic
10. Systems of authority

Schools of Management
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 Man with wonderful intelligence inherited by nature has evolved a fine system to
manage men and matters.
 Down the ages, man has been managing his affairs in relation to the environment.

Management as a profession has developed over the ages; Managing work and workers is a
necessity now.

The process of development of the science of management has its roots in the organization of
ancient cities, war theatres, irrigation system, maintenance of huge army, etc. in olden days.

The evolution of science of management can be classified under three heads:

 Management – a scientific approach

 Management – a functional approach and
 Management – a behavioral approach.

CONTRIBUTIONS OF TAYLOR TO MANAGEMENT:

FREDICK WINSLOW TAYLOR (1856-1915) has often been referred to as “father of

scientific management” was the first to give a face lift to management by applying scientific
thoughts on it. His scientific management was an approach that emphasized the scientific
study of work methods in order to improve worker efficiency and higher productivity. His
ideas included time and motion studies. In 1911 he published “principles of scientific
management” to prove that his principles could be successfully applied to any organization

TAYLOR’S FOUR PRINCIPLES OF SCIENTIFIC MANAGEMENT:

1. Scientifically study each part of a task and develop the best method for performing the
task.
2. Scientifically select workers with skills and abilities that match each job and train
them in the most results in a scientific tasks.
3. Ensure cooperation through incentives and provide the work environment that
reinforces optimal work results in a scientific manner
4. Divide work and responsibility so that management is responsible for planning work
methods using scientific principles and workers are responsible for executing the
work accordingly

Frederick Winslow Taylor (1856-1915) was the founder of the theory “The Scientific
Management”.

According to this theory, workers do not put forth maximum work during the given period
and their efficiency requires improvement. Workers should be trained properly for doing their
work efficiently.

Taylor advocated planning of the job, perfect understanding between workers and
management; profit sharing, knowledge of industrial work, etc.

Scientific approach, harmonious relationship, co-operation and co-ordination, maximum

production or output, and the development of man’s energy to maximum advantage.

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These are the main elements of Taylor’s theory

The system was perfected later on:

1. Work study

Work measurement, work improvement, etc.

1. Standardization of tools
2. Perfecting personnel management
3. Separation of functions (functional organization)
4. Introducing positive thinking and the study of workers’ psychology for improved
production, introduction of scientific methods for efficient management.

Taylor’s Theory has its own disadvantages

Scientific Management has its aim only on production. Marketing, finance and other
functional areas are excluded from this theory. Workers are treated with no human touch.
Workers lose all initiative in this system.

The basic approach of this theory is only mechanical. The salient features of this system are
work study, standardization, establishment of Personnel Department, etc. These have been
adopted by managements in their techniques of administration.

(ii) Management – a Functional Approach

Henri fayol (1841-1925) was a French Industrialist. As a shrewd manager, he developed his
theory of management. He enunciated functions of management in his, “General and
Industrial Management”.

1. Technical (those factors of production)

2. Commercial (this includes buying, selling, etc.)
3. Security (Protection of property and other materials)
4. Accounting (details and determination of financial position) and
5. Managerial (functions of planning, organizing, commanding, coordinating,
controlling, etc.)

CONTRIBUTIONS OF FAYOL TO MANAGEMENT:

HENRY FAYOL (1841-1925) was a French engineer who developed a systematic method of
management that he insisted could be both taught and learned. Trained as a mining engineer
he joined a coal and iron combine as an apprentice and rose to the top position of managing
director in 1888.

Fayol is best known for hid administrative management approach which stresses the
functional aspects of the organization structure. In his view business activities are composed
of the following six activities:

1. Technical activities
o Production

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oManufacturing
2. Commercial activities

o Buying
o Selling
o Exchanging
2. Financial activities
o Searching for capital and credit
o Optimum use of them
3. Security activities
o Protecting property and persons
4. Accounting activities
o Taking stocks
o Keeping balance sheets
o Tracking cost

1. Managerial activities
o Planning
o Organizing
o Commanding
o Coordinating
o Controlling

FAYOLS GENERAL PRINCIPLES OF MANAGEMENT:

 Division of work
 Authority
 Discipline
 Unity of command
 Unity of direction
 Subordination of individual interest to general interest
 Remuneration
 Centralization
 Scalar chain
 Order
 Equity
 Stability of personnel tenure
 Initiative
 Esprit de corps

1. For achieving certain success in any organization, Espirit de corps should prevail.
Total loyalty among members of an organization should be there.
2. Changes in staff should not be affected often. Stability and tenure of personnel should
be there.
3. Initiative is an asset: those who have this spirit of initiative should get all
encouragement.
4. Equality and Courtesy does make any unit active. Members deserve kind treatment.
Their energy and action can be exploited to the full only when the management tries
to get their sympathy and devotion.

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5. Justice and fair treatment should be the motto of the management in dealing with its
subordinated.
6. Specialization and division of work help higher productivity.
7. Authority has to be exercised with restraint and responsibility be borne with greater
faith and devotion.
8. Order and discipline is absolutely necessary for the smooth working of a company.

But, even a subordinate must have full freedom to approach the highest authority to ventilate
his/her grievances.

Central authority should exercise its full authority: but with discretion having in mind the
needs of the situation.

1. A fair, just and working formula must be adhered to regarding the payments, salaries
etc.
2. The spirit of give and take, harmony in relationship with each other, goodwill and co-
operative attitude are the essential characteristics of an administration.
3. Command: the Central authority alone should issue orders and orders to be received
only from one authority.
4. Authority implies responsibility. When exercising authority, one should be cautious
of one’s responsibility also.
5. The top level management is a policy making body. (a) Forecasting and planning (b)
Organizing (c) Issue of orders for carrying on administration (d) Co-ordination and
control and (e) Maintaining strict discipline with human approach and sympathy.

(iii) Management – a behavioral approach

This aspect relates to human behavior and relationship. The behavioral science approach
concerns the application of the methods and findings of human psychology, social
psychology and sociology for the understanding of organizational behavior.

This behavioral science was perfected by many experiments conducted by a team of

researchers during 1920s and 1930s at the Hawthorne plant of the Western Electric Company.

The purpose is to study the human behavior and relationship for improving the work attitude,
the objective being to develop higher levels of productivity and satisfaction.

Elton Mayo, is the specialist in this field of science. It is to be understood, that an

organization is not an assembly of men and machine.

It must have human touch in it. The study of human behavior is essential to manage an
organization. A management involves social system. Human psychology and other behavioral
sciences have to be applied for effective management of an organization.

The main characteristics of behavioral sciences are:

 Employees have to be motivated properly.

 Organization involves social system.

A study of human behavior is absolutely necessary for smooth working of an organization.

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Group psychology is quite different from an individual psychology. Mob psychology is not
group psychology. A group functions as one unit in an organization.

Leadership requires enormous patience, intelligence, tact, study of managerial behaviors etc.

Contact and communication between employees and employers should be continuous,

smooth and effective.

Skills of the employees and those of managers have to be improved for effective functioning
of the organization.

Note: Mary Parker Follect (1868-1933) was another psychologist, interested in group
psychology.

She emphasized the importance of human emotions, feelings, etc. in managing an

organization.

First, a group is different from an individual.

A group, can be used as an instrument for achieving an objective in an orderly manner.

Secondly, authority has to be exercised with respect for human dignity.

Men at the top, should know that they are dealing with human beings. Employers and
employees are human beings. Personal approach with sympathy and honour is essential in
dealing with human beings.

Thirdly, conflicts among men, in an organization have to be resolved through negotiations

with an attitude of give and take. Spirit of compromise should prevail.

For a stable solution, integration of desires of both sides has to aim at nation by management
has to be avoided at all costs.

Fourthly, an organization is a unit. It should function as a single integrated unit.

Fifthly, dominating attitudes and aggressive pastures have to be given up by the

management.

A management takes decisions on policy matters, and has the responsibility to implement its
policies at every stage. The management is both part of an organization and not part of the
organization at the same time. When the organization functions, management becomes a part
of the organization.

When the management takes decision, it does so as if it is not a part of the organization. But
always its aim should be to get the best out of everyone and everything.

It is said of Gandhiji, that he had the intrinsic capacity to make man out of clay. Every
management should have this trait to get the best out of an organization.

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Management is the process of reaching organizational goals by working with people and
other resources.
-knowing what you want people to do , and then getting them to do it the best way.

Managers must concentrate on organizational goals, and they should their resources to
accomplish those goals.

Good Management involves:

a. much planning
b. working out cooperative participation towards specific outcome
c. delegating responsibilities to workers in accordance to maturity and capacity

Functions of the Manager.

1. Planning is the preparation of the things and the action to be

undertaken which includes policies, objectives, objectives,
strategies, methodologies, measurements, and evaluation. It also
includes programming, budgeting and putting specific dates to
attain desired goals.

2. Organizing is the task of developing organizational structure to

have a division of labor, define scope of duties and responsibilities
at the least effort on the part of the workers and in the least time
element; conservation of human resources is also considered.

3. Directing by leading is the directing the different places of work

in the shop to see to it that everybody works to attain the
objectives of the company. This is also management by leading to
keep the relationship in the organization harmonious and inspire o
motivate the workers to perform their best in their work.

4. Evaluating and controlling is the act of checking the

performance of each worker constantly if he meets the prescribed
standards of the work in terms of accuracy, quality, sped,
workmanship and economy.

5. Decision making. Managers chose among alternative courses of

action when they make decisions. Making intelligent and ethical
decision in today’s complex world is a major management
challenge.

6. Staffing consist of recruiting, training and developing people who

can contribute to the organized effort.

7. Communicating. Today’s managers are responsible for

communicating to their employees the ethical knowledge,
instruction, rules, and information required to get the job done.
Recognizing that communication is a two-way process, managers
should be responsive to feedback and upward communication.

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Management Styles

Management Styles are characteristic ways of making decisions and relating to

subordinates, idea further developed by Robert Tannenbaum and Warren H. Schmidt (1958,
1973) who argued that the style of leadership is dependent upon the prevailing circumstances.

1. Autocratic Management Style

An autocratic management styles means that the manager dictates orders to
their staff and makes decisions without any consultation. The leader likes to control
the situation they are in. Decisions are quick because staffs are not consulted and
work is usually completed on time. However this type of management style can
decrease motivation and increase staff turnover because staff are not consulted and do
not feel valued.

2. Democratic Management Style

A democratic manager delegates authority to his/her staff, giving them
responsibility to complete the task to them (also known as empowerment). Staff will
complete the tasks using their own methods. However the task must be completed on
time. Employees are involved in decision-making giving a sense of belonging and
motivating individuals. Because staff feel a sense of belonging and are motivated, the
quality of decision making and work also improves. Although popular, a democratic
management style can slow decision making down because staffs need to be
consulted. Also, some employees may take advantage of the fact that their manager is
democratic by not working to their full potential and allowing other group members to
‘carry’ them.

3. Consultative Management Style

A consultative management styles can be viewed as combination of
democratic and autocratic style of management. The manager will ask views and
opinions from their staff, allowing them to feel involved but will ultimately make the
final decision.

4. Paternalistic Management Style

A more paternalistic form is also essentially dictatorial; however, decisions
take into account the best interest of the employees as well as the business.
Communication is again generally downward, but feedback to the management is
encouraged to maintain morale. This style can be highly advantageous when it
engenders loyalty from the employees, leading to a lower labor turnover.

5. Laissez-faire Management Style

A laissez-faire manager sets the tasks and gives staff complete freedom to
complete the task as they see fit. There is minimal involvement from the manager.
The manager, however, does not sit idle and watch them work. He or she is there to
coach or answer questions, supply information if required. There are benefits; staffs
again are developed to take responsibility which may lead to improved motivation.
However, with little direct guidance from the manager, staff may begin to feel lost
and not reach the goals originally set within the time frame.

Management by Walking Around (MBWA)

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Management by Walking Around (MBWA) is a classic technique used by good

managers who are proactive listeners. Managers using this style gather as much information
so that a challenging situation doesn’t turn into a bigger problem. Listening carefully to
employees’ suggestions and concerns will evade potential crises. MBWA benefits managers
by providing unfiltered, real-time information about processes and policies that is often left
out of formal communication channels. By walking around, management gets an idea of the
level of morale in the organization and can offer help if there is trouble.

A potential concern of MBWA is that the manager will second-guess employees’

decisions. The manager must maintain his or her role as coach and counselor, not director. By
leaving decision-making responsibilities with the employees, managers can be assured of the
fastest possible response time.

One downside is that MBWA poses the threat of manager losing authority as the
employees feel that they can run the company.

Management by Objectives (MBO)

Management By Objectives (MBO), first popularized by Peter Drucker in 1954, is

a system whereby the top management establishes overall goals or objectives for the entire
organization. These are then made specific in the department level setting standards and
levels of performance desired including the method of measuring this performance versus the
planned performance by supervisors or managers.

It is expected that any successful organization have to draw and set goals at the top
management level. Profit objectives, costs, quantity and quality of output and others are all
part of the budgeting process.

The essence of MBO is participative goal setting, choosing course of actions and
decision making. An important part of the MBO is the measurement and the comparison of
the employee’s actual performance with the standards set. Ideally, when employees
themselves have been involved with the goal setting and choosing the course of action to be
followed by them, they are more likely to fulfill their responsibilities.

Features and Advantages of MBO

Some of the important features and advantages of MBO are:

1. Motivation – Involving employees in the whole process of goal setting and increasing
employee empowerment. This increases employee job satisfaction and commitment.

2. Better Communication and Coordination – Frequent reviews and interaction between

superiors and subordinates helps to maintain harmonious relationships within the
organization and also to solve many problems.

3. Clarity of goals

4. Subordinates tend to have a higher commitment to objectives they set for themselves
than those imposed on them by another person.

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5. Managers can ensure that objectives of the subordinates are linked to the
organization’s objectives.

Limitations

1. It over-emphasizes the setting of goals over the working of a plan as a driver of

outcomes.
2. It underemphasizes the importance of environment or context in which the goals are
set.
3. Companies evaluated their employees by comparing them with the “ideal” employees.
Trait appraisal only looks at what employees should be, not at what they should do.

Industrial Management

The driving force behind industrial organization is its management team regardless of
the approach, system or concept adopted. There is no truth to the concept that management is
adaptable to all types of industrial enterprise. Management really depends on the nature of the
business and the philosophy of the people running it.

Some companies have been labeled as very conservative in their approaches while
others have the go-go reputation built on rapid expansion. Thus, there is no specific system of
industrial management. Neither is a certain type of management a panacea. Regardless of
what system or approach is used in an industrial enterprise, the general conclusion is that
there is a need for management in every organization

Principles of Management

Management principles are statements of fundamental truth. These principles serve as

guidelines for decisions and actions of managers. They are derived through observation and
analysis of events which managers have to face in practice.

Henri Fayol (1841-1925) developed 14 Principles of Management, in his book

General and Industrial Management (1916).

1. Division of Work
The specialization of 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 workers speed and
accuracy in its performance increases. This principle is applicable to both
technical as well as managerial work.

2. Authority and Responsibility

The issue of commands followed by responsibility for their consequences.
Authority means the right of a superior to give order to his subordinates;
responsibility means obligations for performance. This principle suggests that
there must be parity between authority and responsibility. They are co-existent
and go together.
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3. Discipline
Discipline refers to obedience, proper conduct in relation to others, respect of
authority, etc. It is essential for smooth functioning of all organization.

4. Unity of Command
The principle states that every subordinate should receive orders and
accountable to one and only one superior. If an employee receives orders from
more that one superior, it is likely to create confusion and conflict.

It 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.
It seeks to ensure unity of action, focusing of efforts and coordination of
strength.

6. Subordination of Individual Interest

The management must put aside personal consideration and put company
objectives first. Therefore the interests of goals of the organization must prevail
over the personal interests of individuals.

7. Remuneration
Workers must be paid sufficiently as this is a chief motivation of employees
and therefore greatly influences productivity. The quantum and methods of
remuneration payable should be fair, reasonable and rewarding of effort.

8. Degree of 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. The organization should strive to achieve a proper balance

9. Scalar Chain
Scalar chain refers to the chain of superiors ranging from top management to
the lowest rank. The principle suggests that there should be a clear line of
authority from top to bottom linking all managers at all levels. It is considered a
chain of command. It involves a concept called a “gang plank” using which a
subordinate may contact a superior or his superior in case of an emergency,
defying the hierarchy of control.

10. Order
Social order ensures the fluid operation of a company through authoritative
procedure. Material order ensures safety and efficiency in the workplace.

11. Equity
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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.

12. Stability of Tenure of Personnel

The tenure of service should not be too short and employees should not be
moved from positions frequently. An employee cannot render useful service if he
is removed before he becomes accustomed to the work assigned to him.

13. 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 the
organization because it provides new and better ideas. Employees are likely to
take greater interest in the functioning of the organization.

14. Esprit de Corps

This refers to the need of the managers to ensure and develop morale in the
workplace, individually and communally. Team spirit helps develop an
atmosphere of mutual trust and understanding.

Management Skills

1. Conceptual Skills refers to the cognitive ability of the manager to see the
organization as a whole and the relationship among its parts. These skills are needed
to perceive significant elements in a situation and broad conceptual patterns.
Conceptual skills involves the manager’s thinking, information processing and
planning abilities

Manager’s conceptual skills involves knowing where one’ department fits into
the entire organization and how the organization fits into the industry, the community,
and the broader business and social environment.

2. Human Skills refers to the ability to work with and through other people and to work
effectively as a group member and as a leader who gets things done through others.
This skills is demonstrated in the way a manager relates to other people, including
ability to motivate, facilitate, communicate, coordinate, lead and resolve conflicts.

A manager with human skills allows subordinates to express themselves

without fear of ridicule and encourage participation,

3. Technical Skills refers to the understanding of and proficiency in the performance of

specific tasks. It includes mastery of the methods, techniques and equipment involved
in a specific function such as engineering, manufacturing, or finance.

Technical skills also include specialized knowledge, analytical ability, and the
competent use of tools and techniques to solve problems in that specific discipline.

Pinoy Management Styles:

1. Kailangan may No. 2 (There is a need for a No. 2)

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It does not mean a querida or a movie starlet. It refers to areal confidant, a true
assistant, your own eyes and ears. Every manager has a no. 2 – his assistant or deputy,
sometimes his secretary or even the driver. When you are travelling or attending a
meeting or workshop, he is the one you depend on to tell you all the stories,
happenings, tsismis (gossip) when you get back.

2. Tsismis machine (Grapevine machine)

Good management has a gossip mechanism within the company. They use these girls
to spread unofficial talk or ideas, or unpleasant steps or actions still being planned. In
this way they get an unofficial feedback. Good managers also use the unofficial
organization, the informal groupings that thrive on gossip and intrigue.

3. Kailangan may ‘hatchet man’ (There is a need for a ‘hatchet man’)

The hatchet man is your assistant who is like a Verdugo. He is a killer type. He fires
people, he scolds and bawls out employees, he reprimand supervisors, he sends tough
memos, he confronts intrigues, and he is a fighter. In other words, you as manager
should not scold nor bawl, shout or be abusive. Give that job to one of your no. 2s.
This way, you remain effective and statesmanlike.

4. Be an expert on timing

Timing is very crucial to many business transactions or projects.. may times, we have
everything ready; the plots are plowed; every contingency is provided for, and then a
storm comes. Or we launch a product after every careful planning and market testing,
and then all of a sudden, there is a new fad or a new technology and our product dies.

5. Lumayo sa madalas matalo. (Avoid losers)

Maybe you believe in bad luck, maybe you don’t. But there are some people who
appear to have golden touch for money, success and achievement., whether for social
enjoyment or profit. And then, there are some people na malas talaga.No matter what
he does, he loses a job, gets into accidents, or gets fooled in transaction, or falls into a
manhole.

6. Gawin mong personal (Make it personal)

Filipinos are very personalistic in their ways; to them loyalty, commitment,

camaraderie are more important rather non-personal traits like efficiency or
effectiveness. What bosses and subordinates understand are feelings, sympathies,
expressions of support, flatteries, courting, feel and touch. We have to wrap our
westernized and impersonal goals of efficiency and effectiveness in personalized
packages so that they appear something like camaraderie, cooperation, or loyalty, the
result is not really maximum efficiency; rather it is the manager’s way of telling to the
salesman: We believe in you! You are the champion.

7. NBA Style: One-on-one

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There are times when many of your peers or groups gang up against you, try to topple
you, or create hassles to give you more problems than necessary. If the group is a
formidable one, it may be practical to be like a basketball player from the National
Basketball Association. Go one-on-one. This means divide and conquer. Isolate the
parties and teams. Use go-between or intermediate to reach those you cannot get in
touch with who are giving you a hard time. And tackle them personally. Eyeball-to-
eyeball. Avoid group confrontations. Split them up. This assumed of course that you
are really in the right, doing the right thing. Otherwise, you weaken your strategy.

8. Power Play (Fight)

This is an extreme situation when the enemy, the other group, another company, or
someone in power puts the squeeze on you and you have no other recourse but to fight
back. This is power play. You marshal your forces slowly, test the enemy flanks
slowly and then unleash your forces at the right time. This often happens when an
organization is filled with intrigues, gossips, and rumor-mongers. This means, the
organization is dying, lethargic, showing no leadership, or is being throttled by unseen
forces or cliques from within. The power play is an inherent situation in management.
Management is power,

9. Huwag kang magsalita ng tapos (Never say never)

Leave the door open for reconciliation, for change, for improvements, for making
amendments. Fortune changes. People change their situations; today, you have
problems with them, tomorrow, you may need them, or vice versa. If you leave your
door open, or say. “It depends” or Let’s see”, then you have options or alternatives for
tomorrow.

10. Be situational and contingent

Sometimes, the answer to Management problems is “It depends”. There is no single

formula. There are times when you must be systematic, or personalistic, or
quantitative, or intuitive.

11. Pumili ka ng lugar (Choose your ground)

Don’t fight in a hostile environment where you don’t have support or resources.
Choose your battle-ground. If you are strong in engineering and technical matters,
then confine the problem there. Don’t wander into financial or marketing areas where
you will be like a fish out of the water. Don’t team up with unfriendly cliques or
groups. Stay away from unfamiliar and unfriendly territory.

12. No hassle rule

Good managers try to simplify always. Then seek the most direct, shortest route to the
solution to the problem. Sometimes, they are not concerned with the process, the
method or the route. They want to know the what and why. They want percentages
and ratios rather than pesos and centavos. They want to know the end results. They
don’t want unnecessary hassles.

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13. Kung hindi mo kaya, lumayo ka ((If you can’t hack it, go away)

As the saying goes, “never wound a king”. He has the ability to come back and seek
revenge. Many people are vengeful. So if you plant to stage a coup d’etat, a turnover,
a proxy fight, takeover a business or a sale territory, or knock off a rival manager, be
sure you can handle the outcome.

14. Sa tamad o pilosopo (For the lazy or the smart-aleck)

People who are lethargic and slow tend to justify their turtle pace with philosophizing
and rationalizations. Don’t engage them in endless debate. Do the job. Go ahead and
explain later, otherwise, your business will turn into debating club.

15. Mahirap ang may-aring wala (It’s difficult to have absentee owner)

The owner has to be around all the time, or else, his employees will goof off, put one
over him, or the customer will run circles around the staff. Don’t be an absentee
landlord if you want to go into business.

16. Pabayaan mong bigtihin niya ang sarili (Let him hang himself)

There are newcomers, belligerent cliques, or rival companies who want to show off.
They advocate impact projects, new sales promotion or new ideas that you know are
risky, have not been tested and are costly. If despite your reasoned objections or
efforts you still cannot convinced them to abandon the idea or project, let them go
ahead-with their own rope they will hang themselves.

17. Umarte kang parang intelihente. Iyong laging nag-iisip (Act intelligently. Pretend to
be thinking always)

There are managers who always smoke a pipe, always wear a business suit, and
always give the impressions that they are very cool, calculating and precise managers.
But we know they have nothing to offer by way of creative ideas, energetic
leadership, or resource mobilization. But they are there, sitting and smoking and
looking up so logical in his silence. So sometimes, maintain your silence. Let other
party speak.

18. Habang maiinit, pasok (Enter while it’s hot)

Be alert to hot products, to new fads and consumer interests, to the happy moods of
the boss or powers-that-be. At those moments, seize the opportunity and ride with the
trends. Strike while the iron is hot.

19. Kailangan matinik ka rin (You have to be smart too)

You have to have an area of expertise, a specialization, something entirely yours,

gained through experience, exposure, academic training travels, family tradition, or
association. So, study, travel, read, get experience and pick an area of specialization.

20. Huwag mong gawing lahat ng solo (Don’t do everything alone)

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Delegate, Trust subordinates. This means you must pinpoint the task or job. Spell out
the results you want. Select the person. Tell him what is expected of him and give him
authority. Tell others about the assignment so that they know.

21. Isip Intsik (Think Chinese)

Think like a Chinese. He works like a dog. Not spending more than he earns. Street
smart, as they say. He knows the business well, all the important facts, all the
effective connections, all the right discounts and suppliers. Although he does not have
plans written out or project feasibility studies, he has all the data and statistics inhis
head. He calculates price offers on the back of envelopes, on tissue paper, or the sides
of the newspapers. This is his planning process.

22. Isip Hapon (Think Japanese)

The Japanese establish a network of communications and consultations at every line
of the company. They touch base with every important person or unit involved. They
consult, draw consensus, agree, unit and are fiercely competitive.

23. Follow-up
This is a key to management success. It helps to get a No. 2 who is meticulous and get
his finger into every pie. He is good in persistent follow-up.

24. Pag sinabing ‘No’ dapat ‘no’ talaga. (A ‘No’ is a no)

Management should have the abilitiy to say halt, stop, no, that’s enough. It is results
that count.

25. Isip deadline (Deadline conscious)

Many managers work hard and long. The important thing is to be aware of deadlines.
Learn how to set deadlines.

26. May-ari ka nga, pero hindi ikaw ang pinakamagaling (You’re the owner but you’re
not the best)
The small family business owners usually are guilty of several sins. 1) Ownership
does not mean superior management. Oftentimes, the owner is a nuisance in the
business; 2) Nepotism. The company is filled with relatives; 3) Paternalism. Like a
god-father, and too familial, losing the businesslike atmosphere; 4) Solo flight. One
man rule. The owner rules like a rajah or sultan.

27. Body language ang important. (Body language is important)

Managers have to operate in the cultural context of the employees. The most effective
is body language or non-verbal communications. Body language comes in various
forms such as wink, a pat on the back, a nod of the head, the tone of the voice, the
warmth of the handshake, the focus of the eye, the facial message, etc.

28. Management limitations.

There are many things management science cannot solve. Examples are: 1) When the
owners or top management do not support your project or when they doubt your
loyalty, you will have a very difficult time no matter how skilled your management
techniques may be; 2) When politicians or political pressure enter into business-this
may force you to employ unqualified or unskilled workers adding to your costs; 3)
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When social, cultural, or religious patterns, or cultural lifestyles are against the
product or service. They are beyond your direct control.

The Boss
Anonymous

When the Lord made man, all the parts of the body argued over who will be the boss.

The Brain explained that since he controlled all the parts of the body, he should be the boss.

The Legs argued that they should be the boss, since they could take the body anywhere it
wanted to go.

The Stomach countered with explanation that since he digested all the food, he kept the body
healthy; therefore, he should be the boss.

The Eyes said that without vision, man could not see where he was going; therefore, he
should be the boss.

Then the Rectum spoke up and applied for the job. The other parts of the body laughed so
hard, the Rectum closed up.

After a few days, the Brain got foggy, the Legs became wobbly, the Stomach became ill,
and the Eyes crossed and could not see.

Soon they all concede that the Rectum should be the boss, which just goes to prove that you
don’t have to be a Brain to be the Boss; just an Ass.

The Leader and the Manager

Warren Bennis

The Manager administers; the Leader innovates

The Manager is a copy; the Leader is an original
The Manager maintains; the Leader develops
The Manager focuses on system and structures; the Leader focuses on people
The Manager relies on control; the Leader inspires trust
The Manager has a short-range view; the Leader has long-range perspective
The Manager asks How and When; the Leader asks What and Why
The Manager has his eyes always on the bottom line; the Leader has his eye on the horizon.
The Manager intimate; the Leader originates.
The Manager accepts the status quo; the Leader challenges it.
The Manager is the classic good soldier; the Leader is his own person.
The Manager does things right; the Leader does the right thing.

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