Management: Basic Theories and Principles

Presented by:
Prof. Michael A. Pinto, MPA

RESOURCES:
-People
Manager: -Finance
-Managerial Skills Library -Facilities
- Leadership Skills -Information

What is Management?
( Heinz Weihrich) the process of designing and maintaining an environment in which individuals working together
in groups efficiently accomplish selected aims.
From Italian word Maneggiare meaning to train horses or literally to handle, from French word Maneger
meaning to direct a household
(Mary Parker Follett) getting things done through the efforts of other people.
(Claravall)To manage involves administering, directing, engineering, overseeing, controlling, coping, faring,
handling, maneuvering, manipulating functioning and simply surviving.

What is Management?
As a discipline it is a field of learning much like education, medicine, law, etc
As a profession it is a career pursued through a long period of study
As a group of people in a collective sense, the people (group) directing the operations of an organization
As a process- in this sense, it is considered as the fundamental integrating activity aimed at achieving
predetermined goals.

Why Manage?
It facilitates and directs the work of a group of people to achieve goals
It is essential in utilizing scare resources to accomplish maximum output

Contributors and their Management Ideas

1. Frederick Taylor Father of Scientific Management

Time of Study; Co founder with Fayol of the
Theory of Management
2. Frank and Lilian Gilbreth Motion Study
3. Henry L. Gantt Task-Bonus System; Gantt Chart
4. Max Weber Theory of Bureaucracy
5. Lyndall Urwick and Luther Gulick POSDCORB (Planning, Organizing, Staffing,
Directing, Coordinating, Reporting, Budgeting)
6. Henry Fayol Father of Classical Movement; Co founder with
Taylor of the Theory of Management

7. Elton Mayo Hawthorn Studies/Effect

8. Chester Barnard Father of Self Actualizing Movement
Contribution-Satisfaction Equilibrium
9. Ludwig von Bertalanffy Founder of General Systems Theory
10. Peter Drucker Management by Objectives MBO
11. Douglas McGregor Theory X and Y
12. Chris Agyris Immaturity-Maturity Theory
13. Abraham Maslow Hierarchy of Needs
14. Frederick Herzberg Two-Factor Theory of Motivation
15. Victor Vroom Expectancy Theory
16. B.F. Skinner Behavior Modification
17. Rensis Likert System 1 to System 4 Management
18. Robert R. Blake and Jane S. Mouton Leadership Grid

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19. Fred Friedler Leadership Contingency Model
20. William Oichi Theory Z
Difference between Leadership and Management

Management Leadership

About allocation and control About mobilizing people to adopt to change

Pays attention to short-term results Concerned with the longer term future

Seeks order and consistency and tries to Motivate change, establish new directions and
solve problems especially technical problems seeks out new opportunities

Interest in facts and answers Are interested in values and questions

Preserves the status quo Tries to inflict change and transformation

Tries to be deductive, interested in results Sympathize, be inductive, imaginative and

and tries to contain risks prepared to take well risk

More formal More informal

Levels of Management
Top Management : which libraries usually means the director and the assistant and associate directors. They are
responsible for the overall functioning of the entire organization.
Middle Management : is in- charge of specific subunits or functions of the organization. It includes department
heads, or branch librarians. Their management responsibilities are concentrated on the successful functioning of
individual areas of the library
Fist Line supervisor: the managers in the lowest position of the management hierarchy are supervisors,
sometimes called first-line managers. They lead the day-to-day activities of individual employees as they work to
accomplish the desired organizational objectives, and they are responsible for the production of goods and
services.
DEVELOPMENT OF MANAGEMENT THOUGHTS
A. Classical Perspectives
1. Scientific Management
* Fredercik Winslow Taylor , is considered as the father of Scientific Management
Basic Assumption: workers are primarily economically motivated and that they will put forth their best efforts if
they are rewarded financially. The emphasis is on maximum output and on eliminating waste and inefficiency.
EFFICIENCY is the central theme of Taylor
Characteristics of Managers (Taylor)
a) Develop a series of rules and routines to help workers in their daily work.
b) Replace the rule-of thumb method by finding the most efficient way
c) Select scientifically and them train, teach and develop the worker
d) provide wage incentives to workers for increased output.

Frank and Lilian Gilbreth Frank as an engineer and Lilian who held a doctorate in psychology, were concerned
with the human aspect of managing and they expanded the concept of time-motion-studies. They tried to identify
the one best way to perform a task in the most conformable and time-efficient manner. However, this one best
way maybe replaced when a better way was discovered.
Henry L. Gantt developed the Gantt Chart, which is used for scheduling multiple overlapping tasks over a time
period. He focused on the motivational schemes, emphasizing the greater effectiveness of rewards for good work
(rather than penalties for poor work). He developed a pay incentive system with a guaranteed minimum wage and
bonus system for people on fixed wages.

2. Administrative Management
emphasizes the manager and functions of management
Henry Fayol (known as the Father of Modern Management) he spelled out the five functions of management:
Plan, Organize, Coordinate and Control.

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14 Principles of Management :
1. Division of Work there should be a clear division of duties. Breaking jobs into similar smaller pieces will result in
specialization. Management should be separate and distinct
2. Authority the authority that individuals possess should be equal to their responsibility. Anyone responsible for
the results of a task should be given the authority to take the actions necessary to ensure success
3. Discipline there should be clear cut rules and complete obedience to behavior in the best interest of the
organization.
4. Unity of Command an employee should receive orders from only one superior, in order to avoid confusion and
conflict
5. Unity of Direction there should be one head and one plan, in order to ensure a coordinated effort
6. Subordination of individual interest to the general interest employees should place the organizations concerns
before their own
7. Remuneration of personnel Pay should be fair
8. Centralization centralization is the most desirable arrangement within an organization
9. Scalar chain each position is part of a vertical chain of authority ( the scalar chain). Communication should
move up and down this chain command.
10. Order to avoid conflicts, there should be a right pace for everything and everyone in the organization
11. Equity equality of treatment must be taken into account in dealing with employees. Justice should be tempered
with kindness
12. Stability of tenure of personnel long-term stability for workers Is good for the organization
13. Initiative incentive rewards must be provided to stimulate production
14. Esprit de corps develop a strong sense of morale and unity. Communication is the key to satisfied worker.

3. Bureaucratic School
Max Weber
German sociologist who introduced many of the theories of the bureaucratic school
He is the first to articulate a theory of the structure of authority in organizations and to distinguish between power
and authority and compelling action and voluntary response.

He characterizes bureaucratic organization as an IDEAL type of organization in which:

1. Labor is divided with clear indication o authority and responsibility
2.The Principle of hierarchy exist
3. Personnel are selected and promoted based on qualifications
4. Rules are written with down and impersonally and uniformly applied
5. Promotion into management is only through demonstrated technical competence
6. Rules and procedures ensure reliable and predictable behaviors
7. Problem: mindless rules and RED TAPE

Lyndall Urwick and Gullic

Known for integrating scientific management with administrative management
He coined the acronym POSDCORB meaning: Planning, Organizing, Staffing, Directing, Coordinating,
Reporting, and Budgeting

B. Humanistic Approach
1. Human Relations Movement
Focused on the behavior of the individual and his quality of life in the organization, as well as on the needs,
aspirations, and motivations of this individual and on those of the group and the organization.
Major assumption: If management can make employees happy, maximum performance will be the result.
Proponents:
Chester Barnard dwelled on the contribution-satisfaction equilibrium as he examined the organization as a
social system. He was the first to introduce the issue of social responsibility of management including fair wages, security
and creation of an atmosphere conducive to work.

Acceptance Theory states that managers only have as much as authority as employees allow them to have. It suggest
that authority flows downward, but depends on acceptance by the subordinate. The acceptance depends on four
coordination:
A) employees must understand what the manager wants them to do
B) employees must be able to comply with the directive
C) employees must think that the directive is in keeping with organizational objectives

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 D) Employees must think that the directive is not contrary to their to their personal goals.
Mary Parker Follett recognized the interdependencies between the individual, the work and the
environment. She emphasized that worker participation and the importance of shared goals.
Elton Mayo : Hawthorn study ( the first to demonstrate the importance of human side of organizations)
Hawthorn studies was important because:
a) Workers are more motivated by social rewards and sanctions than economic incentives
b) Workers action are influenced by the group
c) whenever formal organization exist, both formal and informal norms exist.

2. Self-Actualizing Movement:
Emphasis is on designing jobs that would allow workers to satisfy higher-level needs and utilize more of their
potentials.
Proponent:
Abraham Maslow:
Physiological, Safety, Social, Esteem, Self Actualization

C. Modern/Contemporary Management Thought

1. Systems Theory
Ludwig von Bertalanffy one of the first proponent of this approach.
He defined system as a set of elements standing in their interrelation among themselves and with the
environment
It integrates knowledge gleaned from biological, physical and behavioral sciences. Organizations are regarded as
systems that function as a whole.
2. Contingency Approach (1970s)
This concept takes the situational approach and it asserts that:
There is no best management technique
There is no best way to manage
No technique or managerial principle is effective all of the time
Should the question be posed as to what works best, the simple response is, it all depends on the situation

Douglas McGregor : Theory X and Theory Y

Theory X Theory Y

Average human beings have an inherent The expenditure of physical and mental effort in
work is as natural as play or rest
Dislike of work and will avoid it if they can

People must be coerced, controlled, directed and Individuals will exercise self-direction and self
threatened with punishment to get them to work control in the service of objectives to which they are
committed

People prefer to be directed, wish to avoid People learn, under proper conditions, not only to
responsibility, have relatively little ambition and accept but also to seek responsibility
above all, want security

People are self centered and do not like change Imagination, ingenuity and creativity are widely
distributed among workers.

Theory X Managers - tend to be autocratic, control oriented and distrustful. They view human nature pessimistically

Theory Y Managers they reverse the assumption of theory X

Theory Z ( by William Ouchi) 1981

Refers to Japanese management practice of consensus decision making, quality circles, and employee
participation to enhance productivity
It is a comparison between the American (Type A) and Japanese (Type J)
Type A Type J

Mobile employees self opportunity, advancement Lifetime employment

and career change by moving between employer
and organization

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 Personal decision-making Collective decision-making

Individual responsibility Group responsibility

Rapid advancement Slow and systematic advancement

Specialization in careers General career perspective

Explicit control mechanism Implicit control system

Focused concern from employees Holistic concern for employees

Managerial Skills
Technical knowledge and skills include understanding and being efficient in a specific activity such as a
process, procedure or technique
Interpersonal ability to work with others and to win cooperation of people in the work group to achieve goals
Conceptual the ability to see the big picture to envision all the functions involve in a given situation or
circumstances

MANAGEMENT FUNCTIONS

A. Planning
An effort to develop decisions and actions in order to guide what an organization does and why it does it.
The process of choosing an organizational mission and overall objectives for both short-run and long-run
The process that involves selecting missions and objectives as well as the actions to achieve them which requires
decision-making, that is, choosing a course of action from among alternatives

Importance of Planning:
Planning helps to adopt to change and to reduce uncertainty
It focuses on the organizations attention in its objectives
It improves performance and makes financial control possible
It guides the managers efforts
It is a prerequisite for control
It ensures coordinated actions

Types of Plan
1. Missions or Purposes identify the basic purpose or function or tasks of an enterprise or agency or any part of it
2. Objectives or goals the end towards which activity is aimed.
3. Goals is a statement of where one wants to go or what one wants to achieve. It can be expressed in terms of one or
more objectives
4. Objectives are specific statements which have the same purposes as goals. They usually specify a performance
standard or criteria for re for results which can be observed or measured.
5. Strategies the determination of the basic long-term objectives of an enterprise and the adoption of courses of action
and allocation of resources necessary to achieve these goals.
6. Policies are also plans in that they are general statements or understanding to guide or channel thinking in decision
making
not all policies are statements (implied)
7. Procedures are plans that establish a required method of handling future activities. Usually in chronological steps.
They are guide to actions rather than to thinking.
8. Rules spells out specific required actions or non- actions allowing no discretion.
9. Programs are complex of goals, policies, procedures, rules, task, assignments, steps to be taken, resources to be
employed and other elements necessary to carry out a given course of action
10. Project: is simply a use plan with a specific uncomplicated short-term objectives
11. Budgets is a statement of expected results expressed in numerical terms. It involves identifying resources in money,
material, human resources and overhead support.

Advantages of Planning:
It defines the organizational purpose
It defines specific objectives for everyone in the organization
It defines environmental constraints
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 It provides alternatives

The Planning Process

1. Environmental Scanning
Conduct SWOT Analysis ( Strength, Weaknesses, Opportunities and Threats)
Benchmarking (the best practices) is used to assess current capabilities. It systematically compares
performance measures such as efficiency, effectiveness, or outcomes of an organization against similar
measures from other internal or external organization.
2. Determine Missions
Mission the purpose of the organization (raison detre; the reason for its being, that is why the
organization exist.
3. Establish Objectives
It elaborates on the mission statement and constitutes specific set of policy, programmatic, or management
objectives for the programs and operations covered in the strategic plan.
Objectives are aligned with the mission and form the basis of action plans
4. Developing Action Plans
Action Plan- operationally defines the objectives by expressing it in terms of specific actions or
operations.
Strategic Plan produces fundamental decisions and actions that shape and guide what an organization is,
what it does and why it does it.
Tactical Plans- are based on the strategic plan ( long term goals that require more than one year to
achieve
Operational Plan Day-to- day work of the team. Short term goals are aligned with the long term goals.
5. Establish Control System
Monitor the plan set standards
Review should be done for next planning cycle

B. Organizing
refers to creating the structure and framework of the organization following a strategy, designing patterns
of relationships and the hierarchy of authority appropriate to achieve the goals, assigning to the
appropriate position the tasks required to achieve the organizations objectives, along with the authority
and responsibility for accomplishing these tasks.

Organizational structure
is the formal decision making framework by which job tasks are divided, grouped, and coordinated.
The set of formal tasks assigned to individuals and departments; it is a formal reporting relationships, including
lines of authority, decision responsibility, number of hierarchical levels, and span of managers control

Organizational Chart
The visual representation of an organizations structure.

Steps in Organizing Process : by Allen, Gemmy, 1998.

1.Review Plans 4) Group Jobs
2. List Task 5) Assign Work
3. Group Task into jobs 6) Delegate Authority

Authority
Refers to the legitimate power of a supervisor to direct subordinates to take action within the scope of the
supervisors position

Organization
The formal structure of authority through which work subdivisions are arranged, defined and coordinated
to achieve desired objectives.
Types:
Formal the pattern of relationships which is set out in an organizational chart
Informal a set of evolving relationships and pattern of human interactions within an organization that
are not officially prescribed

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Three Characteristics:
Authority Is vested in organizational positions, not people
Authority is accepted by subordinates: Compliance is needed
Authority flows down the vertical hierarchy : the higher you go, the bigger your authority becomes

Responsibility is the duty to perform the task or activity as assigned

Accountability means that the people with authority and responsibility are subject to reporting and justifying task
outcomes to those above them in the chain of command.

Forms of Authority
Line Authority - is the direct supervisory authority of superior to subordinate. It means that the people in the
management positions have formal authority to direct and control immediate subordinates
Staff Authority is narrower and includes the right to advise, recommend, and counsel in the staff specialists
area of expertise
Span of management /control
Is the number of employees reporting to a superior

C. Staffing
The function involving recruitment, selection, hiring, placement and development of human resources required by
an organization.
Recruitment is defined as activities or practices that define the characteristics of applicants to whom
selection procedures are ultimately applied.
Selection the process of determining skills, abilities, and other attributes a person needs to perform a
particular job.
Interview serves as a two-way communication channel that allows both the organization and the
applicant to collect information that would otherwise be difficult to obtain.
Training and Development represents a planned effort by an organization to facilitate employees
learning of job-related skills and behaviors.
Performance Appraisal comprises steps of observing and assessing employees performance,
recording the assessment and providing feedback to the employee.
Termination departing of an employee from the work due to incompetence, inefficiency or grave
misconduct.

Stages of Recruiting and Hiring

1. Advertise the Position
2. Review applicant Pool
3. Pre Screening: Test or Phone interviews
4. Background Verification
5. Interview finalist
6. Selection and Hiring

Organizational Framework for staffing

Position a collection of tasks and responsibilities that constitute the total work assignment of one person.
Job is a group of positions that generally involve the same responsibility, knowledge, duties and skills. Ex.
Subject cataloguer
Occupation is defined as general class of job found in a number of different organizations. Ex. Librarianship

Job Description it specifies the duties associated with that job; the relationship of the job to other units of the
institution; the personal characteristics such as education, skill, and experience, required to perform the job.

D. Directing or Leading
the management function that enables managers to communicate with and influence subordinates toward
the achievement of organizational goals.
Motivation refers to a whole class of drives, needs and similar forces that prompt a person to act in a
certain way or develop a tendency for specific behavior
Leadership the ability to inspire confidence and support among followers that permit the group to reach
its goals.
The ability to influence people toward the attainment of a goal.

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 Leadership traits are the distinguishing personal characteristics of a leader, such as intelligence, values, self-
confidence, and appearance.

Types of Leadership Behaviors

1) Directive Leadership occurs when specific advice is given to the group and clear rules and structure are
established.
2) Supportive leadership occurs when the needs and well-being of subordinates are considered.
3) Participative Leadership occurs when information, power, and influence are shared. Subordinates are
allowed to share in the decision-making
4) Achievement-oriented leadership- occurs when challenging goals are set and high performance is
encouraged

Team Building is a method designed to help teams operate more effectively by improving internal
communication and problem-solving skills.
Teams is two or more employees whoa are organizationally empowered to establish their objectives, to make
decisions about how to achieve
those objectives, to undertake the tasks required to meet them, and to be individually and mutually accountable
for their results.
Empowerment is the delegation of authority to an individual or team and includes autonomy, trust and
encouragement to make the decisions necessary to accomplish the job.

E. Controlling
the function of monitoring performance and undertaking corrective action/s to ensure the attainment of
predetermined goals and objectives of the organization
Techniques in Controlling:
1. Evaluation
2. Cost-Benefit-Analysis
3. Management Information System (MIS)
4. Decision Support System (DDS)
5. Operations research
6. PERT (Program Evaluation and Research Technique)

Management Information Systems (MIS)

Management information system (MIS)
An MIS provides managers with information and support for effective decision making, and provides feedback on
daily operations
Output, or reports, are usually generated through accumulation of transaction processing data
Each MIS is an integrated collection of subsystems, which are typically organized along functional lines within an
organization

Outputs of a Management Information System

Scheduled reports
Produced periodically, or on a schedule (daily, weekly, monthly)
Key-indicator report
Summarizes the previous days critical activities
Typically available at the beginning of each day
Demand report
Gives certain information at a managers request
Exception report
Automatically produced when a situation is unusual or requires management action

Cost Benefit Analysis

A cost-benefit analysis is a process by which business (library management) decisions are analysed. The benefits
of a given situation or business-related action are summed and then the costs associated with taking that action
are subtracted.
Some consultants or analysts also build the model to put a dollar value on intangible items, such as the benefits
and costs associated with living in a certain town. Most analysts will also factor opportunity cost into such
equations.

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Decision Support System (DSS)
is a computer program application that analyses business data and presents it so that users can make business
decisions more easily.
It is an "informational application" (to distinguish it from an "operational application" that collects the data in the
course of normal business operation).
Typical information that a decision support application might gather and present would be:
Comparative sales figures between one week and the next
Projected revenue figures based on new product sales assumptions
The consequences of different decision alternatives, given past experience in a context that is described

Budgetary Control method of rationalization whereby estimates covering different periods of time are, by the
study of statistical records and analytical research of all kinds, establishes for all and everything that affects the
life of a business concern can be expressed in figures
Common Types of budget
1) Operational Budget is the primary type of budget with its focus on revenue and expenses
2) Capital Budget involves capital investments (building, furniture, equipment, etc)

Types of Budgeting Techniques

1. Line-item budget is the most common type of budget that divides object of expenditure into broad input classes
or categories such as salaries and wages, ,materials and supplies, equipment, capital expenditures and
,miscellaneous, This is sometimes called Incremental Budgeting because the object is usually to add on existing
figures, assuming that all currently existing programs are good and necessary.
2. Lump sum approach in this form of budgeting, a certain amount is allocated to the library and it becomes the
responsibility of the library to decide how that sum is broken into categories that can be identified
3. Formula Budget uses predetermined standards for allocation of monetary resources. The formula which is
usually expressed in percentage of the total institutional cost, focus on input rather than activities and are more
applicable to specific library operations
4. Program Budgeting emphasizes the library activities, so that money can be assigned to programs or services
provided.
5. Performance Budgeting bases expenditures on the performance of activities and emphasizes efficiency or
operations. It requires the careful accumulation of quantitative data over a period of time.
6. Planning Programming Budgeting System (PPBS) combines the best of both program budgeting and
performance budgeting. The emphasis is on planning. It has four steps: a) identifying the librarys objectives; b)
presenting alternative ways to achieve those objectives with cost benefit ratios presented for each; c) identifying
activities necessary to each program; d) evaluating the result for corrective actions.
7. Zero based budgeting focuses on its activities on answering the two questions: a) are the current activities
efficient and effective? B) should current activities be eliminated or reduced to fund higher priority new programs
or to reduce the current budget?

The First XV: The 15 All Blacks Principles

by James Kerr, Legacy, 2015
1. Sweep the Shed Never be too big to do the small things that need to be done.
2. Go for the gap when youre on top of the game, change your game (focus on continuous improvement)
3. Play with purpose, Ask why? identify your purpose.
4. Pass the Ball leaders create leaders. Shared responsibility means shared ownership, a sense of inclusion units
individuals, and collaboration means advancement as a team.
5. Create a learning environment leaders are teachers.
6. No Dickheads select character over talent.
7. Embrace Expectations - aim for the highest cloud. The culture of expectation enables the asking and re-asking
the fundamental questions: how can we do better?
8. 8.Train to win- practice under pressure. Practice makes perfect.
9. Keep a blue head control your attention
10. Know thyself keep it real. Honesty drives better performance.
11. Invent your own language- sing your world into existence. The belief that binds the group
12. Sacrifice find something your die for and give your life to it
13. Realize to actualize create a culture. Rituals reflect, remind and reinforce the belief system, to reignite their
collective identity and purpose.
14. Be a good ancestor plant trees you will never see.
15. Write your legacy this is your time

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