Reynalaine V.

Bornasal
III-AMA

WHAT IS MANAGEMENT?
The management definition is a single or group of individuals who challenges and
oversees a person or collective group of people in efforts to accomplish desired goals
and objectives. Furthermore, the definition of management includes the ability to plan,
organize, monitor and direct individuals. The management definition is also a person or
collective group who possess the executive abilities to lead a group through hardships,
aspiring to meet an organization’s purpose and visions. Management is a process of
planning, decision making, organizing, leading, motivation and controlling the human
resources, financial, physical, and information resources of an organization to reach its
goals efficiently and effectively.

UNDERSTANDING
ORGANIZATIONS

Organization is the backbone of management because without an efficient organization

no management can perform its functions smoothly. In the management process this
organization stands as a second state which tries to combine various activities in a
business to accomplish pre-determined goals. It is the structural framework of duties
and responsibilities required of personnel in performing various functions with a view to
achieve business goals. In other words, organization is simply people working together
for a common goal. It is a group of people assembling or congregating at one place and
contributes their efforts to achieve a common goal.

Flat Organization

A flat organization is exactly as its name suggests. While individuals may hold an
expertise, hierarchy and job titles are not stressed among general employees,
senior managers, and executives. In a purely flat organization, everyone is equal.

Functional Organization

A functional organization is one that divides a firm’s operations based on specialties.

Ideally, there’s an individual in charge of a particular function. It’s like any typical
business that consists of a sales department, human relations, and a marketing
department. It means that every employee receives tasks and is accountable to a
particular superior.

Divisional Organization

A divisional organization structures its activities around a market, product, or specific

group of consumers. 

Matrix Organization

A matrix organizational structure is a bit more complex, in that there’s more than one
line of reporting managers. It simply means that the employees are accountable to more
than one boss. Most firms that take on this organizational structure often have two
chains of command – functional and project managers. This type of organization works
best for companies with large-scale projects.

DIFFERENT MANAGEMENT ACTIVITIES

1. Optimum utilization of resources:

The most important objectives of the management are to use various resources
of the enterprise in a most economic way.The proper use of men, materials,
machines, and money will help a business to earn sufficient profits to satisfy
various interests i.e. proprietor, customers, employees and others. All these
interests will be served well only when physical resources of the business are
properly utilized.

2. Growth and development of business:

By proper planning, organization and direction etc., management leads a
business to growth and development on sound footing. It helps in profitable
expansion of the business. It provides a sense of security among the employers
and employees.

3. Better quality goods:

The aim of the sound management has always been to produce the better quality
products at minimum cost. Thus, it tries to remove all types of wastages in the business.
4. Ensuring regular supply of goods:
Another objective of management is to ensure the regular supply of goods to the
people. It checks the artificial scarcity of goods in the market. Hence, it keeps the prices
of goods within permissible limits.

5. Discipline and morale:

The management maintains the discipline and boosts the morale of the individuals by
applying the principles of decentralization and delegation of authority. It motivates the
employees through monetary and nonmonetary incentives. It helps in creating and
maintaining better work culture.

6. Mobilizing best talent:

The employment of experts in various fields will help in enhancing the efficiency of
various factors of production. There should be a proper environment which should
encourage good persons to join the enterprise. The better pay scales, proper amenities,
future growth potentialities will attract more people in joining a concern.

7. Promotion of research and development:

Management undertakes the research and development to take lead over its
competitors and meet the uncertainties of the future. Thus, it provides the benefits of
latest research and technology to the society.

8. Minimize the element of risk:

Management involves the function of forecasting. Though the exact future can never be
predicted yet on the basis of previous experience and existing circumstances,
management can minimize the element of risk. Management always keeps its ears and
eyes to the changing circumstances.

9. Improving performance:
Management should aim at improving the performance of each and every factor of
production. The environment should be so congenial that workers are able to contribute
their maximum to the enterprise. The fixing of objectives of various factors of production
will help them in improving their performance.

10. Planning for future:

Another important purpose of management is to prepare a prospective plan. No
management should feel satisfied with today’s work. Future plans should take into
consideration what is to be done next. Future performance will depend upon present
planning. So, planning for future is essential to every organization.

The 3 Different Levels of Management

1. Administrative, Managerial, or Top Level of Management 

This level of management consists of an organization’s board of directors and the chief executive or managing

director. It is the ultimate source of power and authority, since it oversees the goals, policies, and procedures of a

company. Their main priority is on the strategic planning and execution of the overall business success. The roles

and responsibilities of the top level of management can be summarized as follows: 

 Laying down the objectives and broad policies of the business enterprise. 
 Issuing necessary instructions for the preparation of department-specific budgets, schedules, procedures,
etc. 
 Preparing strategic plans and policies for the organization. 
 Appointing the executives for middle-level management, i.e. departmental managers. 
 Establishing controls of all organizational departments. 
 Since it consists of the Board of Directors, the top management level is also responsible for communicating
with the outside world and is held accountable towards an organization’s shareholders for the performance of
the enterprise. 
 Providing overall guidance, direction, and encouraging harmony and collaboration. 

2. Executive or Middle Level of Management 

The branch and departmental managers form this middle management level. These people are directly

accountable to top management for the functioning of their respective departments, devoting more time to

organizational and directional functions. For smaller organizations, there is often only one layer of middle

management, but larger enterprises can see senior and junior levels within this middle section. 

The roles and responsibilities of the middle level of management can be summarized as follows: 

 Executing the plans of the organization in accordance with the policies and directives laid out by the top
management level. 
 Forming plans for the sub-units of the organization that they supervise. 
 Participating in the hiring and training processes of lower-level management.  
 Interpreting and explaining the policies from top-level management to lower-level management. 
 Sending reports and data to top management in a timely and efficient manner. 
 Evaluating the performance of junior managers. 
 Inspiring lower level managers towards improving their performance.  

3. Supervisory, Operative, or Lower Level of Management 

This level of management consists of supervisors, foremen, section officers, superintendents, and all other

executives whose work must do largely with HR oversight and the direction of operative employees. Simply put,

managers at the lower level are primarily concerned with the execution and coordination of day-to-day workflow that

ensure completion of projects and that deliverables are met. 

The roles and responsibilities of the lower level of management can be summarized as follows: 

 Assigning jobs and tasks to various workers. 

 Guiding and instructing workers in day-to-day activities. 
 Overseeing both the quality and quantity of production. 
 Maintaining good relations within lower levels of the organization. 
 Acting as mediators by communicating the problems, suggestions, and recommendatory appeals, etc. of
workers to the higher level of management, and in turn elucidating higher-level goals and objectives to workers. 
 Helping to address and resolve the grievances of workers. 
 Supervising and guiding their subordinates.  
 Taking part in the hiring and training processes of their workers.  
 Arranging the necessary materials, machines, tools, and resources, etc. necessary for accomplishing
organizational tasks.  
 Preparing periodical reports regarding the performance of the workers.  
 Upholding discipline, decorum, and harmony within the workplace. 
 Improving the enterprise’s image as a whole, due to their direct contact with the workers.  

MANAGEMENT PRINCIPLES
Principle No. 1: The Functions of Management
At the most fundamental level, management is a discipline that consists of a set of five general functions: planning,
organizing, staffing, leading and controlling. These five functions are part of a body of practices and theories on how to
be a successful manager.
Planning: When you think of planning in a management role, think about it as the process of choosing appropriate
goals and actions to pursue and then determining what strategies to use, what actions to take, and deciding what
resources are needed to achieve the goals.
Organizing: This process of establishing worker relationships allows workers to work together to achieve their
organizational goals.
Leading: This function involves articulating a vision, energizing employees, inspiring and motivating people using
vision, influence, persuasion, and effective communication skills.
Staffing: Recruiting and selecting employees for positions within the company (within teams and departments).
Controlling: Evaluate how well you are achieving your goals, improving performance, taking actions. Put processes
in place to help you establish standards, so you can measure, compare, and make decisions.
Principle No. 2: The Types and Roles of Managers within the Organization
Organizational structure are important in driving the business forward and every organization has a structure. No
matter the organizationally specific title, organizations contain front-line, middle, and top managers. 
Principle No. 3: Effective Management of Organizational Resources
An essential component of operating the organization’s strategic plan is allocating resources where they will make the
most impact. Managers participate in operational planning and budget planning processes and, in doing so, actively
determine what should be done, in what order it is to be done, and determine what resources are appropriate to be
successful in achieving the plan.
Principle No. 4: Understanding and Applying the Four Dimensions of Emotional
Intelligence (EQ) in Maximizing Human Potential
The four dimensions are: a high self-awareness, social awareness, self-management, and good social skills. All of
these competencies are important, and they lead to great connections with people. They lead to stronger and more
effective managerial performance. EQ is a very important component for excelling as a supervisor. 
Principle No. 5: Know the Business
What most successful managers bring to their work in leading crews, departments, divisions, and companies is both a
solid knowledge of the business (they are very experienced) and a solid knowledge of the principles of great
management. Manager aspirants must first learn the characteristics of the business by doing, working in the trenches,
and discovering how the various pieces of the organization work together to become a universal whole because very
good managers discover what is universal in the business and capitalize on it to advance the business and improve
performance.
MANAGERIAL SKILLS
References:
https://strategiccfo.com/management-definition/
https://corporatefinanceinstitute.com/resources/knowledge/other/types-of-organizations/
https://www.businessmanagementideas.com/management/management-objectives-10-
major-objectives-of-management-explained/2563
https://sprigghr.com/blog/hr-professionals/3-different-levels-of-management/
https://www.uagc.edu/blog/5-principles-of-great-management.