MICHAEL D.

CORTEZ
MBA-501 Organization and Management

Tarlac State University

College of Business and Accountancy
Graduate School
MASTER IN BUSINESS ADMINISTRATION
MBA 501-Organization and Management
FINAL EXAMINATIONS
Tarlac City

1. Define business and elaborate its concept.

According to businessdictionary.com, a business is an organization or economic

system where goods and services are exchanged for one another or for money. Business
is referred as an organization or economic system simply because it involves production,
resource allocation and distribution of goods and services within a society or a given
geographic area. Business is an organization because it’s an entity which exist to achieve
its set of goals. It exists for a particular purpose in mind by the owners. From its
definitions, we read “goods and services”. As stated before, business exists to provide
goods and services to the society. In this provisions, the recipient of the business’
products in return will pay or render service as payment for the goods or services
delivered. It always entails “exchange” which connotes transaction either in monetary
form or another.
Business requires investment from the owner. The goal of the owner in
establishing business is his/her wealth maximization. Every business entities were formed
to provide what the stakeholders needs and wants and most importantly to gain profit
resulting to wealth maximization of the owners, partners or shareholders.

2. Define Management and elaborate its concept.

According to F.W. Taylor, Management is an art of knowing what to do, when to

do and see that it is done in the best and cheapest way.
Management is an art of knowing what to do in conjunction with science. It is an
art because it implies application of knowledge and skill in trying to achieve the desired
results. Practical knowledge, application of theoretical principles, personal skill,
creativity, perfection through practice and goal oriented are important principles in
attaining the goals of the business through others. Management is knowing what to do. It
involves the process of planning and staffing wherein the management is defining the
business, establishing its mission, creating its vision and molding its goals with the
proper selection of people who’ll carry on the task in the organization. Management is
knowing when to do. It involves organizing wherein timeline is sets up. The management
must know when to do a specific task in order to achieve the desired goals. Timing is
very crucial in the decision-making of the organization. Management is seeing it done in
the best and cheapest way. It is the goal of every business to maximize its profit and
wealth. It follows then that the goal of the management is to make the best decision and
lessen the cost of production or service.

3. How important are businesses to the socio-economic development of one’s country?

Based on your analysis, what it the present status of the Philippine economy?

Businesses play a vital role in the development of a country. It converts the scarce
resources of the country into goods and it provides services for its people. As the demand
in production of goods and services increases, jobs for people increases. Thus, resulting
to creation of job opportunities. These jobs will help families especially those who live
below poverty line in satisfying their needs and wants through the business. In return, the
 MICHAEL D. CORTEZ
MBA-501 Organization and Management

country will gather huge amount of taxes from the established businesses and hired
employees and the taxes will be utilized by the government properly in order to attain its
goal as a country.
The Duterte administration brought change. The people benefits from the newly
acted TRAIN law. It gives the people a greater purchasing power. The country’s crime
rate decreases. The government is focused in building more infrastructure which could
eventually help delivering the goods and services in the best and cheapest way. The
country is heading toward a good future. As a newly introduced Industrialized Country
and one of the fastest growing economy in ASEAN Region, we are on the right tract
moving toward our goal as a Nation.

4. In a paradigm form, illustrate how management functions are applied to different

basic units/departments (Human Resource Department, Production Department,
Marketing Department, and Finance Department) of business to attain optimum
productivity?

 Training and Career growth

 Reward / Incentives
 Hire best people suited to the job

Human
Resource
Department

Open Communication

 Share, reuse and leverage  Equipment upgrades

existing marketing assets Marketing Optimum  Master Speed
Production
 Design measurable Department Productivity  Department
Create Cross
campaign functional Focus

Focused on common goal

Finance
Department

 Strong and effective financial

control
 Vision-oriented
 Done every project in cheapest
and best way