ORGANIZATION AND MANAGEMNT

Module 1: The Nature and Functions of Management

MANAGEMENT
• It focuses on three aspects: Management is a process; it uses resources; and it aims to achieve
specific objectives.
• It is a process of interrelated actions to achieve specific objectives. Management is important to
any level in an organization. Whatever position you find yourself in an organization, you will
feel the presence of management.

Management is a process. Management uses resources.

• Planning • People
• Organizing • Money
• Leading • Materials/ Machines
• Controlling • Time

Management aims to achieve objectives.

• SMART objectives
• Perspective in management

MANAGEMENT IS A PROCESS
 Management as a process involves four functions; Planning, Organizing, Leading and
Controlling which are collectively interdependent. They are linked to each other to form a clear
set of activities with a definite purpose.

Performing the four management functions is best viewed as completing a cycle (figure 1.2). Each
function within a management cycle corresponds to a given time. For instance, planning may be
performed weekly, monthly, or annually.

Figure 1.2 The four management

functions in a cycle

PLANNING
It is defined as the process of identifying the objectives of a task, assignment or cause and
the corresponding activities to achieve those objectives.
There are many types of planning in a corporate setting and these plans are formal and
documented. An illustrative sample of planning tool is called work plan.

Work Plan
Work Plan is a visual planning tool in a form of a summary table which usually contains the
following information:
• The objectives;
• The corresponding activities to accomplish the given objectives;
• The persons responsible for doing the identified
activities;
• The time to accomplish each of the activities; and
• The resources need

ORGANIZING
It is defined as gathering the resources required to carry out the activities. The use of those
resources must be effective and efficient. (Effectiveness means doing the right things while
efficiency means doing things right.) You are effective when you have achieved your goal and
have produced the intended results. On the other hand, you are efficient when you have
accomplished your goal and minimized the cost of waste or used the least amount of resources.

Organizing entails more than gathering the needed resources. It requires you to identify the
what, why, how and when of acquiring these resources. Hence, when organizing, you have to
examine why you need the particular resources and for what purposes.

 A start-up entrepreneur wants to venture into selling handicrafts produced by

women from a tribal community in the province of Palawan. She started to organize
her business by doing a research on the following: where to get the regular supply of
handicrafts, how to contact the women producing the handicrafts, and what mode
of transportation to use for procurement and delivery, among other things.

LEADING
Among the four management functions, this is the most broadly defined. It is defined as a
process which encompasses the following:
• Influencing other people to perform the way you wish them to;
• Directing other people to achieve the desired objectives;
• Coordinating the proper implementation of activities;
• Communicating effectively across various groups; and
• Motivating individuals to perform their best.

CONTROLLING
It is defined as monitory and evaluation of activities undertaken in relation to the stated
objectives.
CONTROLLING
It involves the following:
•Identifying the gap (variance) between what was planned and what was accomplished in terms
of quantity and quality of work;
•Determining the main cause of problems encountered during implementation;
CONTROLLING
It involves the following:
•Finding ways to correct those problems;
•Preventing those problems from recurring; and
•Seeking new ways to improve how things will be done in the future.
Controlling therefore, is a management function that helps in evaluating the impact of
alternative courses of actions.

What Have I Learned So Far?

 Define planning, organizing, leading, and controlling.

Management Is Using Proper Resources

 Resources are essential to achieve specified objectives. Without the proper resources, you will
not be able to manage effectively. Having the right quality and quantity of resources at the right
time is fundamental in management

Waste of resources, regardless of their cost, can be a sign of mismanagement and should be
addressed immediately to prevent losses in the business.

Figure 1.6 Management uses resources

Management Aims to Achieve Objectives

 Management starts with having a clear set of objectives. In setting management objectives,
you must take into account five important guides. The objectives must be SMART.
Specific
 The objectives should be in a form of sufficient detail such as in terms of quantity or
quality.
Measurable
 The objectives can be assessed and verified through objective
performance indicators.
Attainable
 The objectives can be achieved by finding your own ways or strategies.
Realistic/ Result oriented
 The objectives can be accomplished given the current and planned level of resources that
you have.
Time bound
 The objectives can be accomplished within definite time period

Clear objectives are important. They serve as a road map to where you really want to go.
Without a clear idea of what you intend to accomplish, you will just go along with your life
wasting time, resources, and most especially your unique talent.
Investment Perspective
In management pertains to deriving an expected economic return or material benefit from a
given management activity or business project.
Another investment view of management is building capacities for growth and development. For
instance, investments in training will enhance skills and improve competencies of employees for
their better work performance.
Ethical Perspective
 In management pertains to examining whether the desired objectives are morally right or
wrong. The ethical conduct in management is guided by the principle of common good, which
promotes management practices that benefit and uplift the condition of the greater number of
people, and not just the few.
Individual Fulfillment Perspective
 Management looks at how an organization seeks to satisfied the needs of employees and
develop their full capabilities. In the workplace, it develops individuals to become more
independent and self-propelling so as to benefit themselves, the organization, and the greater
society.
Mainstream Perspective vs. Multistream Perspective
 Introduced a values-based way to study management by comparing two contrasting
management approaches or perspective that fall into so called continuum.
Mainstream Perspective vs. Multistream Perspective
Mainstream perspective
 this approach focuses on the traditional, materialist and individualistic view of management.
Multistream Perspective
 this approach focuses on a balance view of management by taking into account the multiple
forms of well-being for multiple stakeholders.