UNIVERSAL SCHOLASTIC ACADEME

Sinisian East, Lemery, Batangas

ORGANIZATION AND MANAGEMENT

MODULE 1 : THE JOB (Weeks 1 & 2)

I. INTRODUCTION

Organization and management is a twin terms that exist side by side with each other, each one needs
and supports the others. Organization will be inert and useless if there is no management that will steer it;
management will be hollow and meaningless if there’s no organization to manage it. In the real world of
administration, organization and management are essential elements through which human actions and
objectives are carried out and accomplish. In a manner of speaking, organization and management become
means to an end.

II. OBJECTIVES

At the end of this module, you are expected to:

 Understand the meaning of management and the evolution of management theories;
 Appreciate the importance of the application of the GEMS cycle for the success and
growth of the business; and
 Recognize the critical role of a management and his/her duties and responsibilities.

III. DISCUSSION

A. Evolution of Management Theories

The simplest definition of management is getting things done through people. It implies that an
organization, whether small, medium, or large is composed of people. A business organization exists for a
purpose. A small carinderia, for instance, cooks and sells food to customers. A medium-sized transportation
company like Victory Liner provides safe transportation to the public to some parts of Luzon. A large-sized
manufacturing company such as San Miguel processes drinks and food products for sale to the public. All these
business exist for a profit and have people.

It is the people in these organizations that get the work done. To ensure that their assigned tasks are
done properly and efficiently, these people have to be managed. The person managing them could be the owner-
proprietor of the carinderia, the Manager or Supervisor of Victory Liner or San Miguel Corporation.

Management is a function that directs and coordinates the efforts of the people to accomplish goals
and objectives by using available resources efficiently and effectively. It is also a process of accomplishing the
organization’s goals by working with and through people. Its task includes planning, organizing, staffing,
leading or directing, and controlling.

The Industrial Revolution in light of business concern was to improve employees’ productivity and
efficiency triggered in the development of management theories. Beginning in the late 19th century after the
Industrial Revolution but saw more definitive form in the 20th century. Industrial Revolution refers to the
transition from hand production methods to the use of different machines, new chemical manufacturing
processes, iron production processes, increasing use of steam power, and the development of machine tools.

1910s-1940s: Management as Science

Management as Science was developed in the early 20th century and focused on increasing
productivity and efficiency through standardization, division of labor, centralization, and hierarchy. A very ‘top
down’ management with strict control over people and processes dominated across industries.

1950s-1960s: Functional Organizations

Due to growing and more complex organizations, the 1950s and 1960s saw the emergence of
functional organizations and the Human Resource (HR) movement. Managers began to understand the human
factor in production and productivity and tools such as goal-setting, performance reviews, and job description
were born.
1970s: Strategic Planning

The focus is form measuring function to resource allocation and tools like Strategic Planning,
Growth Share Matrix, and SWOT (identification and analysis of the company’s Strengths, Weaknesses,
Opportunities, and Threats) were used to formalize strategic planning processes. After several decades of ‘best
practice’ and ‘one size fits all’ solutions, academics began to develop contingency theories.

1980s: Competitive Advantage

As the business environment grew increasingly competitive and connected, and with a blooming
management consultancy industry, Competitive Advantage became a priority for organizations in the 1980s.
Tools like Total Quality Management (TQM), Six Sigma, and Lean Management were used to measure
processes and improve productivity. Employees were more involved by collecting data, but decisions were still
made at the top, and goals were used to manage people and maintain control.

1990s: Process Optimization

Benchmarking and business process reengineering became popular in the 1990s, and by the middle of
the decade, 60% of Fortune 500 companies claimed to have plans for or have already initiated such projects,
TQM, Six Sigma, and Lean remained popular and a more holistic, organization-wide approach and strategy
implementation took the stage with tools such as Strategy Maps and Balance Scorecards.

2000s: Big Data

Largely driven by the consulting industry under the banner of Big Data, organizations in the 2000s
started to focus on using technology for growth and value creation. Big data is a board term for data sets so
large or complex that traditional data processing applications are inadequate. Accuracy in big data may lead to
more confident decision-making. And better decision can mean grater operational efficiency, cost-reductions,
and reduce risk.

After several decades of trying to manage people through the different management theories, one has
to realize that what worked before just simply is not enough anymore. Traditional Management is fine if one
wants compliance, but if one wants innovation and growth, management has to engage its people on a whole
new level. Top down control is a thing of the past. Succeeding in today’s environment requires a management
style that inspires and is participatory.

B. Principles of Management

According to Henri Fayol (1841-1925) a French management theorist, who developed the
fundamental notion of principles of management. Fayol’s 14 Principles of Management are the following:

Division of Work

According to this principle, the whole work is divided into small tasks. The specialization of the
workforce according to the skills of a person, creating specific personal and professional development within
the labor force, and therefore increasing productivity, leads to specialization which increases the efficiency of
labor. By separating a small part of work, the worker’s speed and accuracy in his/her performance increases.
This principal is applicable to both technical as well as managerial work. This can be made useful in case of
project works, too.

Authority and Responsibility

This refers to the issue of commands followed by responsibility for their consequences. Authority
means the right of a superior to give enhanced order to his subordinates; responsibility means obligation for
performance. This principle suggests that there must be parity between authority and responsibility. They are
co-existent and go together, and are two sides of the same coin, and the authority must be commensurate with
responsibility.
Discipline

Discipline refers to obedience, proper conduct in relation to others, respect of authority, etc. It is
essential for the smooth functioning of all organization. Discipline is absolutely necessary for enterprises to
function well.

Unity of Command

This principle states that each subordinate should receive orders and be accountable to one superior.
If an employee receives orders from more than one superior, it is likely to create confusion and conflict. Unity
of Command also makes it easier to fix responsibility for mistakes.

Unity of Direction

All those working in the same line of activity must understand and pursue the same objectives. All
related activities should be put under one group, there should be one plan of action for them, and they should be
under the control of one manager. It seeks to ensure unity of action, focusing of efforts, and coordination of
strength.

Subordination of Individual Interest

The management must put aside personal considerations and put company objectives first. Therefore
the interests of goals of the organization must prevail over the personal interests of individual.

Remuneration

Workers must be paid sufficiently as this is a chief motivation of employees and therefore greatly
influences productivity. The quantum and methods of remuneration payable should be fair, reasonable, and
rewarding of effort. Remuneration is paid to worker as per their capacity and productivity. The main objective
of an organization is to maximize the wealth and the net profit as well. For this purpose, the organization has
paid wages, salaries, and benefits to their staff properly and scientifically so that organizational efficiency can
be ensured.

The Degree of Centralization

The amount of power wielded with the central management depends on company size.
Centralization implies the concentration of decision-making authority at the top management. Sharing of
authority with lower levels is called decentralization. The organization should strive to achieve a proper
balance.

Scalar Chain

Scalar Chain refers to the chain of superiors ranging from top management to the lowest rank. The
principle suggest that there should be a clear line of authority from top to bottom linking all managers at all
levels. It is considered a chain of command. However, there is a concept called a “gang plank” in which a
subordinate may contact a superior in case of an emergency, defying the hierarchy of control. In this event, the
immediate superiors must be informed about the matter.

Order

Social order ensures the fluid operation of a company through authoritative procedure. Material
order ensures safety and efficiency in the workplace. Order should be acceptable and under the rules of the
company.

Equity

Employees must be treated kindly, and justice must be enacted to ensure a just workplace. Managers
should be fair and impartial when dealing with employees, giving equal attention toward all employees.

Stability of Tenure of Personnel

 The period of service should not be too short and employees should not be moved from positions
frequently. An employee cannot render useful service if he/she is removed before he/she becomes accustomed
to the work assigned to him/her.

Initiative

Using the initiative of employees can add strength and new ideas to an organization. Initiative on the
part of employees is a source of strength for an organization because it provides new and better ideas.
Employees are likely to take greater interest in the functioning of the organization.

Esprit de Corps

This refers to the need of managers to ensure and develop morale in the workplace; individually and
communally. Team spirit helps develop an atmosphere of mutual trust and understanding. Team spirit helps to
finish the task on time.

Key Roles

Fayol also divided the management function into five key roles:

 To organize
 To plan and forecast (Prevoyance)
 To command
 To control
 To coordinate

C. The Qualities of a GEM

The word “Gem” commonly refers to a mineral or organic substance, cut and polished and used as an
ornament, as seals (items of assurance) and as talismans (good-luck charms). These qualities sought in gems are
beauty, rarity, and durability.

The 4 Gems of Management, by analogy, stand for the four important management cycles: Goal,
Execution, Measurement, and Sustenance.it also serves to describe the management practice itself. The GEMS
in this book, just like the precious stones of the earth, are the fundamental blocks that contribute to the success
of an enterprise.

Goals, Execution, Measurement, and Sustenance are the four pillars that propel organizations to
survive, grow, and reach greater heights. They are the tools that leaders use to galvanize a work force into
action. They are solid anchors that ensure the organization’s staying power when crisis looms.

D. The Management Process

Management is a process, a non-stop process of ensuring continuity and growth within an

organization. It involve Goal-Setting, Executing the plan, Measuring results, and Sustaining operations – the
four GEMS of Management.

To ensure this, the manager needs to concentrate on fulfilling four critical functions which are
referred to as the 4 GEMS of Management.

Literally, gems are precious stones. Likewise, the GEMS of Management emphasize the most
valuable aspects of the management process – aspects that serve as the “gold mine” of management excellence.

Below shows the 4 GEMS stand for each phase of the management process – Goal-Setting,
Executing the plan, Measuring results, and Sustaining-operations with sub functions under each. These GEMS
assume the framework of a wheel, signifying that the entire management process is a continuous cycle.

The GEMS Cycle

Sustaining Goal-
Growth Setting
 Measuring Executing
Results the Plan

There is only one management process with a constant set of stages. The difference lies mostly in: 1)
the application of these stages, 2) the phase that a certain organization will be inclined to concentrate on, and 3)
the length of time it would for the organization to finish each stage before the cycle begins once more.

The diagram below mentioned here as a ready reference, depicts the GEMS Management Wheel.

The GEMS Management Wheel

STAGE 1: GOAL-SETTING
The Management cycle begins with GOAL-SETTING, or establishing objectives for a company or
organization. Objectives and goals are derived from a sound review and understanding of the purpose, vision,
and mission of the organization.

To fulfill this function, the maanger must engage in the following activities:

1. Synthesizing Information
In this primary stage, the manager engages in DATA GATHERING. If his/her company plans to
embark on a project, s/he gathers information to find out if it will, indeed, be feasible and beneficial to the
company.

If one intends to put a business, data gathering is useful for identifying crucial business requirements, as well as
market needs and trends.

Through data gathering, the manager then descerns whether or not the venture is viable by
SYNTHESIZING THE DATA. S/He examines the entire scernario carefully – the nature of business, the kind
of product or service it will offer, its market demand, competition, etc. The manager assesses each factor and
looks at the business in its entirety. From there, s/he makes a conclusion if the business is worth starting.

2. Formulating Alternatives
Through effective data gathering and synthesis, the manager arrives at a decision on whether or not
to pursue the business. He also comes up with alternatives, or even a Plan B and Plan C, in case Plan A does not
work.

3. Deciding on Courses of Action

With enough data on three possible business – your Plan A, B, and C, you may now decide on the
venture you would pursue.
 4. Establishing Goals
Let us suppose you decides to pursue your Plan A. the next step is for you to put your decision in
more concrete concrete terms. You must first set you goal or “opearating objective.” This means setting daily
target revenues from sales, within a certain level of budget for expenses, in order for him to arrive at an
estimated net profit at the end of the day.

STAGE 2: EXECUTING THE PLAN

The next phase involves directing the attainment of project or business goals. To do this, the
manager or business owner engages in three sub-stages: ORGANIZING, COMMUNICATING, AND
GUIDING.

ORGANIZING involves putting together the resources of people, time, money, and materials
required to implement the business plan. This includes identifying and purchasing physical requirements (i.e.,
materails you will use in building your business), and developing your operating business hours.

The stage of COMMUNICATING comes in as soon as you started your business purchases. In
finding your supplier, and how will you advertise your business.

Guiding will only come whe you hire a helper that will assist you in your business. Your helper
will need to pass the standard you establish for your business.

A business or organization, however, is usually not intended to last for a short period of time.
They are nurtured by the owner or manager, to expand and benefit an increasing number of people.

As your profits in your business increase, you will start thinking of venturing into a more stable
business. You will think of expanding your business, them you will realize that with the expansion, setting goal
and attaining will entail a few more consideration. Moreover, the management of operations gets more complex.
5. ORGANIZING
For a sari-sari store business, organizing means identifying your network of suppliers,
developing an inventory of your retail goods, and identifying your staff and their roles.

6. COMMUNICATING
Communicating would include orienting the workforce about the business plans, goals, policies,
and systems. In this case, as the store manager needs to carefully explain how store operations should workout,
so that the business will run smoothly even ehile he is out of the store.

7. GUIDING
Guiding is done by teaching the workforce to properly relate to customers, especialy the difficult
and demanding ones.

STAGE 3: MEASURING RESULTS

After Goal-Setting and Execution comes the third satge in the GEMS Management wheel –
MEASURING RESULTS. This requires the manager to evaluate how the project or business is progressing
toward its goals.
Proper evaluation allows the manager to detec deviations from the plan in time to take corrective
action. This is done by comparing actual activities with the planned activities.

A business should be assess to see if it is progressing or not.If you are holding a big business, a
grocery for instance, it may take a month you can fully assess the satatus of your grocery business. To do this,
you will have to study the synergy of the different departments, the cash flow, purchase of supplies versus the
sales, etc. You will also measure the succes of your business through qualitative and quantitative instruments.

The quantitative aspects in this case refers to the increase or decrease of the shoppers, as well as
how fast products are moving out of the shelves.these indicators will help the business manager to determine
several things: 1) if you are selling the right product; 2) if you should offer more variety or a bigger quantity of
certain products; 3) and if you should pull out certain commodities form the grocery shelves and replace them
with a new ones. While the qualitative aspect, on the other hands, basically refers to customer satisfaction.
Customer compliants and feedback through survey forms will help the manager find out which specific part of
the service needs improvement – customer assistance, cashiering, or security.

STAGE 4: SUSTAINING GROWTH

 The management cycle does not end with MEASURING RESULTS, for there is a fourth stage
that actually determines the success of a business.

In the GEMS Framework, this stage is referred to as SUSTAINING OPERTIONS which

includes two important management functions – DEVELOPING PEOPLE and ENCOURAGING CHANGE.
Only if you are able to ensure the continuity and growth of your company can you say that are truly successful.

8. Promoting Change
Change is synonymous with improvement. Therefore, in order to keep improving, you must
welcome changes in your company. A good manager promotes creativity and innovation. He is not afraid to
take risks that are within reasonable bounds, for it is only through it that he can sustain the growth of his
company.

Variety and timeliness are the buzzwords in the retail business. Customers will always love to
try new things. So the manager should always be on the lookout for something new, something fresh to offer.
He should initiate promotions and be up-to-date with holidays and occasions.

9. Developing People
To have good people in the company, you must start with the right people. If you want a fast
turnout in the cashering counter, you must hire someone with a previous cashering work experience, or
someone who is young and is a fast learner. Even before the hiring stage, you must have a set of criteria for
choosing your employees.
If you have good people, you will be confident to develop them to take on more
responsibilities and to become the next managers. An effective manager should be involve in developing his/her
subordinates. This important function ensures succession in the managemetn of the organization – and thus
ensures continuity and growth.
Developing people involves: 1) delegation of important tasks; 2) empowerment; 3) continous
guidance; and 4) reward. Theses four tasks are important for you to find out who deserves a promotion. It also
tests and challenges the efficiency of your employees. The better ones will get more creative and resourceful in
the process, while the incompetent ones will easily surface.

Empowering people will also bring new ideas into the company, as your employess explore
their capabilities in handling situations. Rather than punishing them outright, teach your employees to learn
from their mistakes. Giving rewards commensurate with their achievements in the company will further
motivate them to worlk better and harder.

As you initiat these steps, keep a tight watch on your employees. Continous guidance and
mentoring are still important, even when you have good people. Enforce systems that will not breed a lax or
dishonest working environment among your employees. Too much control, however, will sacrifice efficiency in
the workplace. A good manager must learn how to strike a balance between these two aspects.

E. Roles and Responsibilities of a Manager

A manager in a workplace is responsible for a lot of duties – most of them are supervisory
in nature. In a small business like carunderia, the maanger is often a jack-of-all-trdes. Though s/he may oversee
aspects of the business, his/her responsibilities may be hands-on as well. In medium-sized and large
corporations, you might find layers of management levels, each with specific duties.

Specificslly, the responsibilities of a manager include the following:

A. Staffing
In a small business, this includes writing job description, putting ads for open position, reviewing
resumes and interviewing applications, interviewing prospective applicants, hiring, and firing. The manager
oversees his/her employees. S/he ensures that they are trained properly, follow company guidelines and
policies, perform the jobs satisfactorily, and receive feedback regularly. Depending on the size of the company,
the manager may also be responsible for the payroll function including tallying work hours, calculating pay,
processing checks, and tracking vavation days and other time off.

B. Communication
 Communication may be one of the most important responsibilities of a manager to keep the work
place running efficiently. Employees need to know the mission and goals of the business and what is expected
of them to achieve those results. In medium-sized companies, a manager should understand the directives
coming form upper management and must be able to translate them to the staff so that they will be all on the
right track.
A manager should also be able to resolve confilcts, motivate employees, interact with the public on
behalf of the company, and preserve customer relations.

C. Training
S/he schedules orientation of ne employees and subsequent training to perform better in their jobs.
S/he must evaluate their progress on a regular basis to determine whether or not additional training is required.
It is also the responsibility of a manager to identify who are the candidates for promotions or advanced positions
in the company and should creat career goals and plans to attain them.

D. Administrative Investigation and Discipline

It is the job of a manager to investigate any employees who violates the company rules and
discipline them when proven guilty. Discipline may inlcude termination from employment. S/he may also
terminate an employee, after due process, who habitualy fails to perform under the known and agreed standards
established by the company.

E. Employee Relations
The maintanance of a good employer – emlpoyee realtions is a very important duty of a manager.
Poor relations affect morale of the employees, productivity, efficiency, and triggers hostility toward
management. It is, therefore, bad for the business. Happy employees are proven to be motivated and more
productive in the workplace.

F. Business Growth and Sustainability

To complete3 the GEMS cycle, it is a manager’s primary responsibility to ensure the success of the
company. His/her actions should all be geared toward business growth and sustainability. Managers are hired to
run daily operations, coach employees, maintain quality standarsds, and ensure that its products or services are
fulfilling customers’ needs.

Managers must constantly review the company’s financial, budgetary, and production goals. If the
company falls short of tis goals upon review through the application of the measurement yardsticks, the
manager has to make the necessary adjustments to get back on track.

Prepared by:

Mr. CHARLIEMAR S. AGUELO

SHS Instructor
 UNIVERSAL SCHOLASTIC ACADEME
Sinisian East, Lemery, Batangas

Name: Score:
Section:
ACTIVITY SHEET
Module 1 (OrgMa)

1. As an ABM student, do you plan on having a business of your own? What is it and why? (5points)

_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________

2. Do you think having a manager on a business really helps its grow? Justify your answer. (5points)

_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
3. If you were an owner of a business, what qualification(s) of a manager do you prefer on your
business? (5points)

_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________