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9M’s of Management9M’s of Management9M’s of Management9M’s of Management

Presented by: Marianne M. Custodio

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1.1.Man/ManpowerMan/Manpower2.2.MoneyMoney3.3.MaterialsMaterials4.4.MachinesMachines5.5.Methods/ProceduresMethods/Procedures6.6.MarketsMarkets7.7.Minutes/Time ManagementMinutes/Time Management8.8.Motivation/MoraleMotivation/Morale9.9.MeasurementMeasurement

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People who work in business enterprises.

The success or failure of any business depends on them.

The 8M’s are useless if man does not know how to use them properly.

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Men are activating resource of the organization and categorized into two groups such as:

EmployeesManagersMan is important in an organization and

emerges as:As an economic unitAs a productive unitAs a worker

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Without manpower, companies are unable to get work done.

Untrained man can cause damage to goods and services.

“Human Resource Management” is different from “Personnel Management”

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HRM vs PMHRM vs PM

Factors HRM PM

People Involved All; from top management to

rank & file

Mostly rank & file

Hours of Work Full-time, part-time; flexitime

Full-time

Place of Work Formal & Informal Setting

Formal setting: office, factory,

plant

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HRM vs PMHRM vs PM

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HRM vs PMHRM vs PM

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HRM vs PMHRM vs PM

Factors HRM PM

Strategies Objective & Scientific;

“Total Systems” Approach

Subjective based on management’s needs & values“Compartmentalized” Approach

Philosophy Humane; People: an

investment & a resource

Traditional, mainly for profit; People: an expense & a factor

of production

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Generally accepted as payment for goods & services and repayment of debts

A medium of exchange, a unit of account and a store of value.

From Juno “Moneta”,

the Goddess of ancient Rome

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Our present economic system: “Money Economy” Money is important to an individual person, equally it so to business organizations & the government.

Every business enterprise of any nature & size needs “capital”

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CapitalCapital is wealth used in further is wealth used in further production & stresses physical production & stresses physical facilities without regard to their facilities without regard to their money valuesmoney values..

CapitalCapital is wealth used in further is wealth used in further production & stresses physical production & stresses physical facilities without regard to their facilities without regard to their money valuesmoney values..

Capital Capital is money or values used is money or values used in business regardless of source.in business regardless of source.Capital Capital is money or values used is money or values used in business regardless of source.in business regardless of source.

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Administration & maintenance of financial assets. Identifying and & trying to work around the various risks

to which a particular project may be exposed. “closely monitoring the cash flow”

Inflow – money coming into a companyOutflow – record of the expenditure being made by

the company in various resources.

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Basically, pieces required to make something else. Can be anything: a finished product in its own right or an

unprocessed raw material. Things needed in the creation of products.

Materials that are first extracted or Materials that are first extracted or harvested from the earth & divided harvested from the earth & divided into a form that can easily be into a form that can easily be transported & stored, then transported & stored, then processed to produce semi-finished processed to produce semi-finished materialsmaterials

Materials that are first extracted or Materials that are first extracted or harvested from the earth & divided harvested from the earth & divided into a form that can easily be into a form that can easily be transported & stored, then transported & stored, then processed to produce semi-finished processed to produce semi-finished materialsmaterials

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field of management that deals with materials

Important principles Important principles governing raw materials:governing raw materials:Important principles Important principles governing raw materials:governing raw materials:

1.1. Proper Determination of amount of Proper Determination of amount of raw materials needed.raw materials needed.

2.2. Raw materials should be available Raw materials should be available to ensure continuous production.to ensure continuous production.

3.3. Raw materials should be procurable Raw materials should be procurable not only from one source but from a not only from one source but from a no. of different sources.no. of different sources.

4.4. There must be periodic inventory of There must be periodic inventory of stocks.stocks.

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field of management that deals with materials

Important principles Important principles governing raw materials:governing raw materials:Important principles Important principles governing raw materials:governing raw materials:

5. The transportation of raw materials 5. The transportation of raw materials from the source must be fast as well from the source must be fast as well as economical.as economical.

6. The raw materials must always be of 6. The raw materials must always be of the desired quality.the desired quality.

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Any device that uses energy to perform some activity.

A device having parts that perform or assist in performing any type of work.

Derived from “machina” Prior to the birth of the Industrial

Revolution, manufacturing was done largely thru the use of human

hands aided by simple hand tools.

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Industrial Revolution & Machinery…Industrial Revolution & Machinery…

A A Watt steam engine, , the the steam engine that that propelled the Industrial propelled the Industrial Revolution in Revolution in Britain and and the world.the world.

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are technology & expertise deployed towards the transformation process of input (resources) to output (end-point objectives/products)

are technology & expertise deployed towards the transformation process of input (resources) to output (end-point objectives/products)

required by modern production—more efficient & economicalrequired by modern production—more efficient & economical

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greatly reduces the need for human sensory and mental requirements to create complex systems for a rapidly expanding range of applications and human activities.

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Can also be systems, procedures & Can also be systems, procedures & processes seamlessly put together processes seamlessly put together for the transformation of a raw for the transformation of a raw material to goods & services.material to goods & services.

Can also be systems, procedures & Can also be systems, procedures & processes seamlessly put together processes seamlessly put together for the transformation of a raw for the transformation of a raw material to goods & services.material to goods & services.

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““theoretical knowledge of industry theoretical knowledge of industry and the industrial art”and the industrial art”

““Human innovation in action that involves the generation Human innovation in action that involves the generation of knowledge & processes to develop systems that solve of knowledge & processes to develop systems that solve

problems & extend human capabilities.”problems & extend human capabilities.”

““Human innovation in action that involves the generation Human innovation in action that involves the generation of knowledge & processes to develop systems that solve of knowledge & processes to develop systems that solve

problems & extend human capabilities.”problems & extend human capabilities.”

It is the total accumulation of tools, systems It is the total accumulation of tools, systems & work methods used collectively to & work methods used collectively to transform inputs into outputstransform inputs into outputs

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Any of a variety of different systems, institutions, procedures, social relations & infrastructures whereby person’s trade, goods & services are exchanged, forming part of the economy.

Transaction Transaction is the exchange of goods or services for money. Markets allow any tradable item to be evaluated & priced.

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a.a. Financial marketsFinancial marketsb.b. Futures marketsFutures marketsc.c. Currency marketsCurrency marketsd.d. Money marketsMoney marketse.e. Prediction marketsPrediction marketsf.f. Stock marketsStock marketsg.g. Bond market Bond market (credit, debt or fixed income market)(credit, debt or fixed income market)

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field of management that deals with markets

field of management that deals with markets

An example of money marketAn example of money market

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A set of principles, practices, skills, tools and systems that work A set of principles, practices, skills, tools and systems that work together to have more value out of time with the aim of together to have more value out of time with the aim of improving the quality of work.improving the quality of work.

Skills associated are: planning, prioritizing, goal setting, Skills associated are: planning, prioritizing, goal setting, scheduling and managing workload.scheduling and managing workload.

Various means by which people effectively use their time & Various means by which people effectively use their time & other closely related resources in order to make the most other closely related resources in order to make the most out out

of it.of it.

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POSEC Method Inherent in the

acronym is Abraham Maslow’s Hierarchy of Needs which suggests that by attending to

one’s personal responsibilities first,

an individual is better positioned to shoulder

collective responsibilities.

POSEC Method Inherent in the

acronym is Abraham Maslow’s Hierarchy of Needs which suggests that by attending to

one’s personal responsibilities first,

an individual is better positioned to shoulder

collective responsibilities.

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The BESTBEST time is usually but not always the SHORTESTSHORTEST timeThe BESTBEST time is usually but not always the SHORTESTSHORTEST time

In individual careers, increased job performance In individual careers, increased job performance & promotions may result.& promotions may result.

All types of organizations- business, civic, All types of organizations- business, civic, school, school, political and religious- may receive political and religious- may receive productive, competitive & financial benefits.productive, competitive & financial benefits.

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Pioneer Clinical Laboratory Inc. & Medical Clinic All Rights Reserved 2008 32

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Efficiency under worker responsibility Management’s priority: GET THE JOB DONE!Management’s priority: GET THE JOB DONE!

Efficiency under command and control leadership Management’s priority: CONTROL!Management’s priority: CONTROL!

Decision-making responsibility & Decision-making responsibility & learning opportunity work together.learning opportunity work together.Decision-making responsibility & Decision-making responsibility & learning opportunity work together.learning opportunity work together.

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The score-keeping & in-process monitoring continuously with The score-keeping & in-process monitoring continuously with due feedback to keep on-course on time.due feedback to keep on-course on time.

Encompasses the assessment of performance and results Encompasses the assessment of performance and results achieved by individual employees, groups of employees achieved by individual employees, groups of employees and and entire organizations.entire organizations.

Determining the level of performance by judging the quality, Determining the level of performance by judging the quality, quantity, timeliness and /or quantity, timeliness and /or cost-effectivenesscost-effectiveness of the work of the work against a set of standards.against a set of standards.

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Two basic parts of ICS:Two basic parts of ICS:Two basic parts of ICS:Two basic parts of ICS:

1.1. Operational ProceduresOperational Procedures2.2. ControlsControls

CHALLENGE TO CHALLENGE TO MANAGEMENT:MANAGEMENT:

Decide how much resource to Decide how much resource to deploy to create just sufficient deploy to create just sufficient controls to limit the possibility controls to limit the possibility of bad events occurring & to of bad events occurring & to limit the damage when they do limit the damage when they do occur.occur.

Decide how much resource to Decide how much resource to deploy to create just sufficient deploy to create just sufficient controls to limit the possibility controls to limit the possibility of bad events occurring & to of bad events occurring & to limit the damage when they do limit the damage when they do occur.occur.

Types of Controls:Types of Controls:

1.1.Preventive ControlPreventive Control2.2.Detective ControlDetective Control3.3.Reactive ControlReactive Control

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A large volume of laws & regulations now exist, specifying A large volume of laws & regulations now exist, specifying standards of conduct & controls that must be complied with standards of conduct & controls that must be complied with by organizations.by organizations.

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Theoretical Approaches Theoretical Approaches to Managementto Management

Theoretical Approaches Theoretical Approaches to Managementto Management

Presented by:

Amor M. Loisaga

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There are no universally applied techniques & principles to make management

successful.

There are no universally applied techniques & principles to make management

successful.

There are general approaches that enable managers to effectively achieve their

objectives.

There are general approaches that enable managers to effectively achieve their

objectives.

Evolution of managerial thought is traditionally represented by a number of schoolsschools & approaches that contributed the development of managerial

theory & practice.

Evolution of managerial thought is traditionally represented by a number of schoolsschools & approaches that contributed the development of managerial

theory & practice.

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Evolution of Managerial ThoughtEvolution of Managerial Thought

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A group of people or scientists who A group of people or scientists who share common characteristics of share common characteristics of opinion or outlook of a discipline.opinion or outlook of a discipline.

A group of people or scientists who A group of people or scientists who share common characteristics of share common characteristics of opinion or outlook of a discipline.opinion or outlook of a discipline.

Approaches tend to cover aApproaches tend to cover a more more practical practical aspect enabling managers to effectively run aspect enabling managers to effectively run their business & achieve organizational goals.their business & achieve organizational goals.

A set of methods, ideas or actions A set of methods, ideas or actions intended to deal with a problem or intended to deal with a problem or solution.solution.

A set of methods, ideas or actions A set of methods, ideas or actions intended to deal with a problem or intended to deal with a problem or solution.solution.

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The CLASSICAL SCHOOL – associated with the scientific The CLASSICAL SCHOOL – associated with the scientific trends which trends which emerged during the 19emerged during the 19thth & early 20 & early 20thth centuries. This school includes:centuries. This school includes:

First-line management analysis First-line management analysis (Scientific Management School)(Scientific Management School), and, and

Comprehensive analysis of management Comprehensive analysis of management (Administrative School)(Administrative School)

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Father of Scientific ManagementFather of Scientific Management Made systematic study of Made systematic study of

relationships between people & tasks.relationships between people & tasks. “ “Optimized task” = Reduced time a Optimized task” = Reduced time a

worker spents on each task.worker spents on each task. The Principles to Increase EfficiencyThe Principles to Increase Efficiency

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Each element of a worker’s job is to be treated Each element of a worker’s job is to be treated scientifically.scientifically.

Job specialization should be introduced to each job.Job specialization should be introduced to each job. Workers should be properly selected, trained & Workers should be properly selected, trained &

developed.developed. The pillars of work are planning & scheduling.The pillars of work are planning & scheduling. Determined time & method standards should be Determined time & method standards should be

considered for each task.considered for each task. Wage incentives have to be provided for all jobs.Wage incentives have to be provided for all jobs.

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1.1. Managers often implemented only the increased Managers often implemented only the increased output side of Taylor’s plan:output side of Taylor’s plan:

They didn’t allow workers to share in They didn’t allow workers to share in increased output.increased output.

Specialized jobs became very boring & dull.Specialized jobs became very boring & dull. Workers ended up distrusting scientific Workers ended up distrusting scientific

management.management.2. 2. Workers could purposely under-perform;Workers could purposely under-perform;3. 3. Management responded with increased use of Management responded with increased use of

machine.machine.

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Developed Time & Motion StudiesDeveloped Time & Motion Studies Used motion picture cameras to find Used motion picture cameras to find

the most efficient & economical the most efficient & economical motions for each task.motions for each task.

Time & Motion Studies:Time & Motion Studies:1.1. Break down each action into components.Break down each action into components.2.2. Find better ways to perform each action.Find better ways to perform each action.3.3. Recognize each action to be more efficient.Recognize each action to be more efficient.

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Developed the GANTT ChartDeveloped the GANTT Chart The Gantt chart shows the start & The Gantt chart shows the start &

finish dates of the terminal finish dates of the terminal elements & summary elements of elements & summary elements of

a project. a project. Gantt charts also serve as visuals to Gantt charts also serve as visuals to

estimate the degree of project estimate the degree of project completion.completion.

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““Setting organizational objectives”Setting organizational objectives” Proceeded with Taylor’s efficiency Proceeded with Taylor’s efficiency

principles.principles. Idea of “strict” distinction between Idea of “strict” distinction between

line & staff roles in management.line & staff roles in management.

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KEY POINTS:KEY POINTS:KEY POINTS:KEY POINTS:

The School focused on The School focused on “production control”“production control”, , where observation, logic & analysis are the where observation, logic & analysis are the tools to improve manual operations.tools to improve manual operations.

Scientific Management School Methodology Scientific Management School Methodology concentrated on the concentrated on the analysis of work analysis of work contentcontent, job specialization & systematic use , job specialization & systematic use of incentives to increase the production of incentives to increase the production volume volume & perfect employee’s performance.& perfect employee’s performance.

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Fourteen Principles of ManagementFourteen Principles of Management Division of LaborDivision of Labor Authority & ResponsibilityAuthority & Responsibility DisciplineDiscipline Unity of CommandUnity of Command Unity of DirectionUnity of Direction General Interests Over Individual InterestsGeneral Interests Over Individual Interests RemunerationRemuneration Centralization/ DecentralizationCentralization/ Decentralization Scalar Chain (Line of Authority)Scalar Chain (Line of Authority) OrderOrder EquityEquity Stability of TenureStability of Tenure InitiativeInitiative Esprit de CorpsEsprit de Corps

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Introduced “rational authority”Introduced “rational authority” Rational authority : Rational authority : “When an “When an

organization w/ a formal structure organization w/ a formal structure is managed on a rational basis, it is managed on a rational basis, it would be more efficient & would be more efficient &

adaptable to changes.”adaptable to changes.” Rational authority = Bureaucracy Rational authority = Bureaucracy

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Bureaucratic Organizations’ key points:Bureaucratic Organizations’ key points:1.1. Clear division & specialization of labor.Clear division & specialization of labor.2.2. Hierarchy of authority & responsibility. Hierarchy of authority & responsibility.

People know what is expected of them & People know what is expected of them & who reports to who.who reports to who.

3.3. Fair evaluation & reward of the staff.Fair evaluation & reward of the staff.4.4. Written rules, standard operating Written rules, standard operating

procedures & norms are provided to procedures & norms are provided to regulate all the processes within the regulate all the processes within the company.company.

5.5. Management & the ownership of the Management & the ownership of the organization are separated.organization are separated.

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KEY POINTS:KEY POINTS:KEY POINTS:KEY POINTS:

Administrative School aimed to find the tools to Administrative School aimed to find the tools to improve the improve the total organizational total organizational performance.performance.

The idea of The idea of Universal Principles of Management Universal Principles of Management (Fayol’s 14 Principles of Management)(Fayol’s 14 Principles of Management) & &

Weber’s Weber’s BureaucracyBureaucracy had a strong impact on the had a strong impact on the contemporary organizational theory contemporary organizational theory

development.development.Both Scientific & Administrative Management Schools appeared when the study of Psychology was at its early stages. The schools’ discussions were restricted by fair payment, economical incentives & formal functional relations.

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The incompetence of the Classical School in questions of The incompetence of the Classical School in questions of human relations & behavior gave birth to the human relations & behavior gave birth to the Behavioral School.Behavioral School.

Two BranchesTwo Branches:Two BranchesTwo Branches:

a. George Elton Mayob. Abraham Maslow

a. Frederick Herzbergb. Douglas McGregor

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Famous for his “Hawthorne Experiments” Famous for his “Hawthorne Experiments” which showed that scheduling, planning & which showed that scheduling, planning & fair payments were not enough to provide fair payments were not enough to provide stable increase of organizational stable increase of organizational productiveness.productiveness.

Concluded that individuals are motivated by Concluded that individuals are motivated by social needs & good on the job social needs & good on the job relationships & relationships & respond better to work-respond better to work- group pressure than to group pressure than to management management control activities.control activities.

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Famous for his “Hierarchy of Needs”Famous for his “Hierarchy of Needs” Expanded Mayo’s ideas of social needs; Expanded Mayo’s ideas of social needs;

observed that his patients were motivated observed that his patients were motivated by by a sequence of needs.a sequence of needs.

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KEY POINTS:KEY POINTS:KEY POINTS:KEY POINTS:

The theorists believed that managers should The theorists believed that managers should take take care of their employees. Providing high care of their employees. Providing high level level of care, managers get high level of staff of care, managers get high level of staff satisfaction.satisfaction.

Mayo & Maslow recommended the human Mayo & Maslow recommended the human relations management which includes more relations management which includes more effective actions of managers, consulting effective actions of managers, consulting the the staff & enabling the workers to have staff & enabling the workers to have broad broad on-the-job relationships.on-the-job relationships.

1.3 Behavioral School

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Worked on different aspects of Worked on different aspects of social social cooperation, motivation, cooperation, motivation,

organizational communication, organizational communication, changes in job specification & changes in job specification & quality of industrious life.quality of industrious life.

Their approach intended to help an Their approach intended to help an employee realize personal employee realize personal potential.potential.

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KEY POINT:KEY POINT:KEY POINT:KEY POINT:

The general target of the school was to prove The general target of the school was to prove that that increase in staff performance increase in staff performance provides an provides an increase in organizational effectiveness.increase in organizational effectiveness.

1.3 Behavioral School

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Developed after World War II from the operational research Developed after World War II from the operational research teams in Great Britain & US.teams in Great Britain & US.

Advocated that mathematics, statistics, cybernetics & Advocated that mathematics, statistics, cybernetics & operations research models should be used to decide operations research models should be used to decide operation operation problems.problems.

Model - Model - an idea of real situation; an idea of real situation; in order to solve operation in order to solve operation problems:problems:

1.1. Define the problem;Define the problem;2.2. Develop a model of the situationDevelop a model of the situation3.3. Specify the quantitative characteristics to the modelSpecify the quantitative characteristics to the model

““substitution of verbal discussions for models, symbols & substitution of verbal discussions for models, symbols & quantitative values.”quantitative values.”

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The optimal decision making algorithm based on The optimal decision making algorithm based on statistical decisions theory, game theory etc.statistical decisions theory, game theory etc.

Quantitative abstract and applied models of Quantitative abstract and applied models of economic phenomenaeconomic phenomena

Management Science Management Science School provides School provides managers with a managers with a scientific basis for scientific basis for solving problems & solving problems & making decisions.making decisions.

Management Science Management Science School provides School provides managers with a managers with a scientific basis for scientific basis for solving problems & solving problems & making decisions.making decisions.

The most recent subfield of Management Science is Management Information System (MISManagement Information System (MIS) which provides managers with information in a timely & cost-efficient manner

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Pioneered by the Administrative School Theorists in their attempts Pioneered by the Administrative School Theorists in their attempts to describe managerial functions.to describe managerial functions.

Sees managerial functions as a set of interrelated actions.Sees managerial functions as a set of interrelated actions.

Management as a process.Management as a process.Management as a process.Management as a process.

Objectives are met by a series of continuous & interrelated actions. These actions are called managerial functions.managerial functions.

Management is a unity of 5 managerial functions. To manage Management is a unity of 5 managerial functions. To manage means:means: 1. To forecast & plan.1. To forecast & plan.

2. To Organize.2. To Organize.3. To Command3. To Command4. To Coordinate4. To Coordinate5. To Control5. To Control -Henry Fayol-Henry Fayol

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Five Functions of ManagementFive Functions of ManagementFive Functions of ManagementFive Functions of Management

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Introduced to management after 1950s by the Management Science ntroduced to management after 1950s by the Management Science School.School.

Organization is a “system” and considered relations inside & outside Organization is a “system” and considered relations inside & outside the organization.the organization.

SystemSystem A number of interdependent parts A number of interdependent parts functioning as a whole for some purposefunctioning as a whole for some purpose.

SubsysteSubsystemm

A system within a systemA system within a system.

An Organization is an OPEN SYSTEM

An Organization is an OPEN SYSTEM

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Transformation process

Transformation processinputinput outputoutput

Feedback (Reenergizing the system)

ENVIRONMENT

System Boundary

Organization as a System: receives Input, transforms Organization as a System: receives Input, transforms it through a Processit through a Process for for Output and Operates in an Output and Operates in an Environment Environment ((economic, regulatory and other forceseconomic, regulatory and other forces))

Organization as a System: receives Input, transforms Organization as a System: receives Input, transforms it through a Processit through a Process for for Output and Operates in an Output and Operates in an Environment Environment ((economic, regulatory and other forceseconomic, regulatory and other forces))

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Inputs(Goal

Oriented)

Inputs(Goal

Oriented)

Pla

nn

ing

Pla

nn

ing

Org

anizin

gO

rganizin

g

Sta

ffing

Sta

ffing

Outputs(External

ToOrgnzn.)

Outputs(External

ToOrgnzn.)

Leadin

g

Contro

lling

Product/Services,Profits, Customer & Societal satisfaction,

Other Long-term Goals

Product/Services,Profits, Customer & Societal satisfaction,

Other Long-term Goals9 M’s of

management9 M’s of

management

Stake holder Feedback (reenergizing the system)

StakeholdersStakeholdersShareholders;Shareholders;Society; Customers;Society; Customers;Employees; SuppliersEmployees; Suppliers

EXTERNAL ENVIRONMENTEXTERNAL ENVIRONMENT(Opportunities, (Opportunities, Constraints)Constraints)

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Believes that it is impossible to select one combination of Believes that it is impossible to select one combination of management techniques for all situations.management techniques for all situations.

Organizations differ in structures, spans of control, chains of Organizations differ in structures, spans of control, chains of command, degrees of centralization, corporate culture, and so on. Thus, command, degrees of centralization, corporate culture, and so on. Thus, each organization is tailored by some each organization is tailored by some particular circumstancesparticular circumstances..

Applies ideas drawn from various schools of management thought to Applies ideas drawn from various schools of management thought to real life situations.real life situations.

Contingency theorists denote such elements of a management Contingency theorists denote such elements of a management situation as the situation as the conditions of a taskconditions of a task (like the Scientific Management (like the Scientific Management School), School), managerial job managerial job (borrowed from the Administrative School) & (borrowed from the Administrative School) & personperson (Human Relations Movement). (Human Relations Movement).

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This approach points out the need for managers to examine This approach points out the need for managers to examine the relationship between the internal & external environment of an the relationship between the internal & external environment of an organizationorganization.

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““Good management is the Good management is the art of making problems so art of making problems so

interesting and their interesting and their solutions so constructive solutions so constructive

that everyone wants to get that everyone wants to get to work and deal with to work and deal with

them.”them.”

--Anonymous---Anonymous--