Pmt Definition of terms
DEFINITION OF TERMS
What is Management?
Management is defined as:
The effective organization and utilization of human and material resources in a particular system for the achievement of objectives.
A social process designed to ensure the cooperation, participation, intention, and involvement of others towards the effective achievement of pre-determined objectives (UNESCO 1979).
A process by which a corporate group directs action towards a common goal, getting activities done through people.
Key Concepts in Management
Principle: A fundamental and universally valid assumption or statement underpinning an action or idea.
Concept: An abstract grouping of logically related ideas forming a clear idea, notion, thought, or proposition.
Theory: A grouping of concepts and principles that presents a framework of ideas and principles.
Fact: An observable phenomenon that can be scientifically described.
Techniques: A practical and formal method of performing artistic or scientific work.
Characteristics of Administration
Administration: The implementation of policies without formulating them.
Administrator: A person who executes policies in an organization.
Profession: A calling requiring specialized knowledge and extensive training.
Characteristics of a Profession
Must satisfy an indispensable social need.
Based on well-established and socially acceptable scientific principles.
Requires adequate pre-professional training (specific period of training and qualifications).
Demands evidence that the public does not possess the needed skills.
Must possess scientific power to retain its members throughout life.
Should not serve merely as a stepping stone to other professions or occupations.
Must develop scientific knowledge in technical language.
Must be able to communicate.
Requires conducting research and communicating results for practice.
Should have a professional association controlling entrance into the profession.
Recognizes its obligation to society by upholding a code of ethics and ensuring members adhere to it.
Constitutes a systematic body of knowledge.
Who is a Manager?
A manager is defined as a person who controls, directs, guides, leads, mobilizes, and motivates others towards a desired goal. Any person who plays a supervisory role over others is considered a manager.
Perspectives on Management
Economists: View management as a factor of production essential for profitability and productivity.
Psychologists: Emphasize human needs and adjustment within an organization, treating individuals with kindness and understanding.
Educators: Highlight the significance of learning processes in management.
Theologians: Focus on the spiritual implications of managerial actions.
Sociologists: Perceive management as a class and status system requiring educated and intelligent managers, creating an elite class informed by knowledge and connections rather than political authority.
Specialists (Professionals): See management as a system controlling professional actions such as those of nurses, doctors, and lawyers.
PROCESS OF MANAGEMENT
Various attempts have been made to analyze management into several components or elements.
Henry Fayol's 5 Basic Components of Management
Planning
Organizing
Commanding
Coordinating
Controlling
Popular Classification (POSA CORB)
A more well-known classification with 7 elements is represented by the acronym "POSA CORB" as proposed by Gulick & Urwick:
Planning
Organizing
Staffing
Directing
Reporting
Coordinating
Budgeting
Detailed Definition of Elements
Planning: Working out in a broad outline what needs to be done and methods to accomplish the organizational purpose.
Organizing: Refers to the arrangement of formal structure and authority through which work subdivisions are coordinated to achieve defined objectives.
Staffing: Encompasses the entire personnel function of recruiting, training staff, and ensuring favorable working conditions.
Directing: Involves continuous decision-making and conveying specific and general orders, serving as an establishment leader.
Coordinating: Ensures different parts of work interrelate and function harmoniously.
Reporting: Involves keeping those in authority informed about ongoing activities through records and inspections.
Budgeting: Refers to all activities associated with financial planning, control, and accounting.
Management as a Profession
Management is regarded as a field of study that universities offer at various levels, including diploma and post-graduate programs.
Management as an Art
Management as an art refers to the technical know-how for accomplishing desired objectives, involving creativity, experience, judgment, and intuition often used in problem-solving.
Management as a Science
As a science, management deals with the discovery and organization of knowledge through scientific methods to achieve objectives (e.g., research). Frederick W. Taylor is recognized as the father of scientific management.
Comparison of Art and Science in Management
Management incorporates both art and science and is not viewed as mutually exclusive; both elements complement each other. A successful manager must blend both aspects to achieve desired results.
Management as an Inexact Science
Management has inherent limitations as it is a complex phenomenon involving human factors and unpredictable environments.
REVIEW OF PHILOSOPHY & PRINCIPLES of MANAGEMENT
Management is essential for the effectiveness of all human endeavors, as organizations require proper management for functioning. The importance of management has increased in modern organizations, where managers determine appropriate technologies and effectively utilize resources.
Effectiveness in management focuses on anticipating change, exploiting opportunities, correcting poor performance, and adapting to changing objectives.
Components of Management
Planning: Involves defining goals and establishing strategies for achieving them.
Organizing: Involves defining tasks and establishing a framework for authority and responsibility among people.
Directing: Consists of educating, guiding, and motivating subordinates.
Controlling: Involves corrective actions to ensure objectives are attained as planned.
Staffing: Entails the methods used for recruiting, selecting, and promoting personnel.
MANAGEMENT LEVELS
Organizations typically have three levels of management:
Top Management: Focuses on mission and priorities, spending time on planning and organizing.
Middle Management: Directs and controls first-line managers; handles more operational tasks.
First-Line Management: Supervisors responsible for coordinating the work of non-managerial employees.
FUNCTIONS OF MANAGEMENT
Planning Functions
Planning is the first and most critical function of management, involving the establishment of objectives and strategies for achieving them.
Benefits of Good Planning
Assists in proactive preparation.
Aids in resource allocation by prioritizing important activities.
Enhances operational effectiveness.
Establishes control measures for assessing employee performance.
Forecasts future threats and constraints.
Provides clarity and schedule of activities.
Prevents crises by determining requirements for achieving goals.
Fosters a sense of commitment among employees.
Improves system efficiency without chaos.
Types of Plans in Management
Plans are often classified as:
Long-range strategic plans (future-oriented, focused on external needs).
Short-range operational plans (focused on immediate execution and tied to budget control).
Plans for business development and growth (adapting to changing consumer needs).
PLANNING PROCESS
Assess the current organizational situation and performance.
Establish objectives for the planning period.
Outline and select strategies for achieving objectives.
Specify and procure resources required.
Translate plans into financial terms through budgeting.
Involve all stakeholders to implement strategies.
Evaluate planned actions at the end of the planned period.
Importance of Control in the Planning Process
Control and evaluation are critical for identifying successes and failures in plans to make necessary adjustments. They operate in a continuous cycle essential for management effectiveness.
DECISION MAKING
Defined as selecting from available alternatives to achieve organizational objectives. It is influenced by the decision-maker's environment and position.
Key Steps in the Decision-Making Process
Determine organizational goals and objectives.
Classify and prioritize options.
Specify and develop alternatives to choose from.
Evaluate alternatives in relation to their potential outcomes.
Choose the most suitable alternative as a tentative decision.
Set standards, targets, budgets for evaluation.
Monitor and assess deviation from targets during implementation.
Control deviations if necessary.
Provide feedback for improvements.