ORGANIZATION AND MANAGEMENT

"NATURE AND CONCEPT OF MANAGEMENT"

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I. DEFINITIONS AND FUNCTIONS OF MANAGEMENT
Management is the process of coordinating and overseeing the work performance of
individuals working together in organizations so that they could efficiently and effectively
accomplish their chosen aims or goals.
It is also defined as the process of designing and maintaining an environment for efficiently
accomplishing selected items. Management functions include the following:
• PLANNING- involves determining the organization’s goals or performance objectives,
defining strategic actions that must be done to accomplish them and developing
coordination and integration activities.
• ORGANIZING demands assigning tasks, setting aside funds, and bringing harmonious
relations among the individuals and work groups or teams in the organization.
• STAFFING- indicates filling in the different job positions in the organization’s structure; the
factors that influence this function include the size of the organization, types of jobs, the
number of individuals to be recruited, and some internal or external pressures.
• LEADING entails influencing or motivating subordinates to do their best so that they would
be able to help the organization’s endeavor to attain their set goals.
• CONTROLLING- involves evaluating and, if necessary, correcting the performance of the
individuals or work groups or teams to ensure that they are all working toward the
previously set goals and plans of the organization.
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Management functions will all go to waste if coordination (the harmonious, integrated action
of various parts and processes of an organization), efficiency (the character of being able to
yield the maximum output from a minimum amount of input), and effectiveness (being
adapted to produce an effect to be able to do things correctly) are not practiced by an
organization’s appointed managers. In other words, top-level managers, middle-level
managers, and team leaders or supervisors must all be conscious of the said practices of
successful organizations as they perform their management functions. When applied to
management functions, these practices ensure that all individuals, groups, or teams are
harmoniously working together and moving toward the accomplishment of the organization’s
vision, mission, goals, and objectives.
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Specialized subject: Organization and Management
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Environmental Forces and Scanning
-Environmental Forces-
Systematic monitoring of the major external forces influencing organizations is necessary to
improve the management of companies. Failure to consider a company’s general and specific
business environments may affect the strategies that management will make and use.
The general business environment includes the economic, socio-cultural, politico-legal,
demographic, technological, and world and ecological situations. All these must be
considered as manager’s plan, organize, staff, lead, and control their respective organizations.
Inflation, rates of interest, changing options in stock markets, and people’s spending habits
are some examples of factors/elements of economic situations. Economic situations may affect management
practices in organizations. For example, companies may postpone
expansion plans if bank loan interest rates are too high.
•Sociocultural situations- include the customers’ changing values and preferences; customs could also affect
management practices in companies.
• Politicolegal situations- refer to national or local laws, international laws, and rules and
regulations that influence organizational management.
•Demographic situations- such as gender, age, education level, income, the number of family
members, geographic origin, etc. may also influence some managerial decisions in
organizations.
•The technological situations of companies involve the use of varied types of electronic
gadgets and advanced technology such as computers, robotics, microprocessors, and others that have
revolutionized business management; e-commerce, teleconferencing, and sophisticated information systems
have rapidly changed the ways that business is conducted in the 21st century.
World and ecological situations are related to the increasing number of global competitors and markets, as well
as the nature and conditions of the changing natural environment.
Meanwhile, the specific business environment focuses on stakeholders, customers, pressure groups, and
investors or owners and their employees.
* Stakeholders are parties likely to be affected by the activities of the organization, while
customers are those who patronize the organization’s products and services.
* Suppliers are those who ensure the organization’s continuous flow of needed and reasonably priced inputs or
materials required for producing their goods and rendering their services. Inputs mentioned also include
financial and labor supply.
* Pressure groups are special-interest groups that try to influence the organization’s decisions or actions.
* The organization’s investors or owners provide the company with the financial support it needs. The
company, of course, cannot exist without them; thus, they greatly influence
organizational management. Top-level, middle-level, and lower-level managerial decisions
are all influenced, in one way or another, by the investors or owners of organizations.
Branching out, offering new products and services, and applying for needed loans are all
affected by the investors’ or owners’ way of thinking.
* Employees pertains to those who work for an employer in exchange for salaries/wages or
non-monetary benefits.
An organization’s internal environment must also be subjected to internal analyses. Internal strengths and
weaknesses, opportunities, and threats with regard to its resources such as
financial, physical, mechanical, technological, and human resources, researches and
development endeavors, production of goods, procurement of supplies like materials , inputs, and finance, and
products and services must all be considered prior to organizational planning.
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Specialized: Organization and Management
CONTINUATION...
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[Forms of Business Organizations]
The form of a business organization may depend on the purpose, nature of operations, and resources of the
company. However, a business organization’s form, change along with the changing times and demands they
present.
Change is constant and organizations continue to undergo various changes in form to ensure
effectiveness, efficiency, and relevance in the world of business.
Business organizations may be traditional or open/flexible in form.
Traditional form of business organizations include the following:
*Simple business organizations- have few departments, centralized authority with a wide span of control, and
with few formal rules and regulations.
*Functional business organizations- are those that group together those with similar or related specialized
duties that introduce the concept of delegation of authority to functional managers like the personnel manager,
sales manager, or financial manager but allow CEOs to retain authority for strategic decisions.
* Divisional business organizations- are made up of separate business units that are semi-
autonomous or semi-independent, with a division head responsible for his/her unit’s
performance. In other words, each division has its own functional organization and its own
general manager. However, the central headquarters management maintains responsibility for the delineation
of organizational goals of the individual divisions.
*Profit business organization- is designed for the purpose of achieving their organization’s
mission, vision, goals, and objectives and maintaining their organizational stability through income generation
and profit-making activities.
Immediate revenues or cost factors account for their success or failure.
Non-profit organization- is designed for the purpose of achieving their organizations’ mission, vision, goals,
and objectives, providing service to clients without expecting monetary gains or financial benefits for their
endeavors. Their success or failure may be measured by the high or low evaluation scores they obtain.
On the other hand, open/flexible business organization is formed to meet today’s changing work environment.
These forms affect and are affected by the environment and change, therefore, becomes
inevitable; other forms that emerged under this form are:
Team structures where the organization as a whole is made up of small teams that work
together to achieve the organization’s purpose; popular in collective culture.
Matrix business organizations are those which assign experts or specialists belonging to
different functional departments to work together on one (1) or more projects; exhibit dual reporting
relationships in which managers’ report to two (2) superiors – the functional manager and the divisional
manager.
* Project business structure- is a business organizational form with a flexible design, where the
employees continuously work on projects assigned to them; projects may be short-term or long-term and
members disband when the project is completed.
*Boundaryless business organization- is a business organization whose design eliminates vertical, horizontal,
or external boundaries, and is described to be flexible and unstructured; there are non-barriers to information
flow and therefore, completion of work is fast.
* Virtual business organization- is made up of a small group of full-time workers and outside
experts who are hired on a temporary basis to work on assigned projects; members are
physically dispersed and usually communicated electronically.
* Different organizations- have different preferences as to the business form that is appropriate for their need/s
and the purpose of their existence. Manager, therefore, must be creative in finding ways to structure or design
and organizer work in their respective firms.
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(PART2)
Specialized subject: Organization and Management
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