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Organization and Management

ABM Grade 11 Term 1 CUA Reviewer

COVERAGE

● The Five (5) Main Functions of Management

○ Planning
○ Organizing
○ Leading
○ Controlling
○ Staffing

PLANNING

➔ Goals or performance objectives; strategic actions; coordination and integration

➔ Begin with the end in mind; VMOSA

1. VISION: What the company wants to achieve or go in the future

2. MISSION: Company’s reason for existence
3. GOALS: Specific accomplishments or action plans that are usually attained after a long period
4. OBJECTIVES: Action plans that involve shorter periods and more measurable outputs

Types of Plans and Different Levels of Planning..

● Top-Level Management Planning
✓ Strategic Plans
■ Formulates the general business strategy
■ Needed for crucial tasks such as identifying which business ventures to undertake
■ Build a competitive advantage for the company & achieve better customer service
■ Used as reference for more specific plans to achieve growth and profitability
■ Broad plans/statements aligned with the vision and mission of the company
● Middle-Level Management Planning
✓ Tactical Plans
■ Specific strategies and plans per area/department
■ Translate broader plans into functional goals
● Frontline Management Planning
✓ Operational Plans
■ Define specific operations of organization
■ Specific procedures, processes and events

Planning Techniques..
● Forecasting: Making predictions of the future based on past & present data (Ex: Analysis of trends)
● Benchmarking:
✓ Checking & evaluating competitors
✓ Studying and adapting the processes of others (Setting a benchmark)
✓ Knowing what to benchmark
✓ Understanding your current performance
✓ Using data and learning from findings
● Contingency Planning: Plan A, Plan B, Plan C
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● PERT: Program Evaluation and Review Technique
✓ Statistical tool used in project management
✓ Designed to analyze and represent the tasks involved in completing a given project
✓ Has dates and is very detailed
● SWOT & PEST:
✓ Strengths, Weaknesses, Opportunities, Threats
✓ Political, Economical, Social, Technological
✓ Analysis of the internal and external environment of the company
● GANTT Chart:
✓ Illustrate the start and finish dates of the terminal and summary elements of a project
✓ Terminal Elements → Small details on how to get/process resources
✓ Basically, you use a GANTT Chart as a timetable
● Decision-Making Process:
✓ Identify the process
✓ Develop alternative solutions
✓ Evaluate the alternatives

ORGANIZING

Organization..
✓ Collection of people or groups of people working together to achieve a common goal

Organizing..
✓ Management function which involves assigning tasks, allocating resources and
coordinating work activities in order to achieve a common purpose

Organizational Chart..
✓ Visual representation of the organization’s structure showing the different job positions in
the firm and their hierarchical arrangement to divide labor and show the reporting structure

Division of Labor..
✓ Involves assigning different tasks to different people in the organization’s work unit

Specialization..
✓ Each employee is trained explicitly on how to best perform one small, specific task
✓ Over time, employee becomes extremely proficient & effective at performing that task

Delegation..
✓ Giving a responsibility to a certain employee; Sharing or transfer of authority

Organizational Structures..
1. Pre-bureaucratic Structures (Flat)
✓ Most common in smaller organizations and is best used to solve simple tasks
✓ Totally centralized
✓ Strategic leader makes key decisions
✓ Useful for new businesses
✓ ENTREPRENEUR -> EMPLOYEES
2. Bureaucratic Structures (Hierarchical)
✓ Certain degree of standardization
✓ Better suited for more complex or larger scale organizations
✓ Adopt a tall structure
✓ Hierarchical structures
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3. Post-bureaucratic Structures (Matrix)
✓ Used to describe a range of ideas
✓ Smaller group theorists have developed the theory of the post bureaucratic
organization
✓ Provide a detailed discussion which attempts to describe an organization that is
fundamentally not bureaucratic

Formal and Informal Organizations..

FORMAL INFORMAL
Standard operating procedures Decisions Norms Unwritten dos and don’ts

Career paths and pay Motivators Commitments What we really care about

Systems, metrics, and reports Information Mindsets What people assume

Organizational charts and job descriptions Structure Networks How people connect

LEADING

➔ Inspiring and influencing people in an organization to achieve a common goal

Leading VS. Managing..

● MANAGING: Policies & procedures; counting value; work-focused
● LEADING: Vision & strategy; creating value; people-focused
● SIMILARITIES: Accomplishes goals; explains vision; organization figureheads; motivation

LEADER MANAGER

➔ Shows a direction ➔ Someone who plans and budgets

➔ Aligns and influences ➔ Organizes and allocates resources
➔ Motivates and inspires ➔ Controls and solves problems

Theories of Motivation..
● Abraham Maslow’s Hierarchy of Needs: Suggests that people are motivated by
physiological, safety, love & belongingness, esteem and self- actualization needs
● Theory of X & Y: X -- people avoid working; Y -- people enjoy work
● Hawthorne Effect: Employees work well only when they are being observed by the manager
● Expectancy Theory: Person exerts extra work (EXPECTANCY: can achieve the desired level
of task performance) → task performance (INSTRUMENTALITY: what work outcomes) →
work-related outcomes (VALENCE: highly motivated by rewards)

Personality of Human Resources/Five Traits of a Leader..

● Extraversion: Sociable, talkative, and assertive
● Agreeableness: Good-natured, cooperative, and trusting
● Conscientiousness: Responsible, dependable, persistent, and achievement-oriented
● Emotional Stability: Calm, enthusiastic, and secure (positive) or tense, nervous, depressed
and insecure (negative)
● Openness to Experience: Artistic, imaginative
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Leadership Styles..
● Autocratic: Makes decisions alone without the input of others; total authority
● Participative: Democratic; accepts inputs but the final decision still rests with the leader
● Laissez-Faire: Gives team members a lot of freedom in how they work and set deadlines
● Transactional: Receives certain tasks to perform and provide rewards or punishments to
team members based on performance results
● Transformational: Depends on high levels of communication from management to meet
goals and objectives

CONTROLLING

➔ Monitoring, comparing and correcting actions; it ensures the work performance of the organization
are aligned with the organization’s values & standards
➔ Makes sure that the firms are are sufficient, efficient and profitable

The Control Process..

● Involves establishing standards, measuring and reporting actual performance and
comparing it with standards, and taking action
● Establishing standards → Setting criteria for performance
● Measuring and reporting → Monitoring of performance
● Taking action → Correction of deviations

Link Between Planning and Controlling..

Strategic Control.. A way to manage the execution of a strategic plan

Tactical Control.. Emphasizes the current operations of an organization in the various departments

Operational Control.. Focuses more on internal sources of information

Control Methods and Systems..

1. Based on Timeliness
a. Feedforward Control - Anticipates the occurrence of problems (BEFORE)
b. Concurrent Control - Practiced to monitor present activity (DURING)
c. Feedback Control - Done after the activity to know if it is a success/failure (AFTER)
2. Conduct Company Operations
a. Evaluation - Collection & analysis of info to make decisions
b. Financial Reports - How money is spent + profit maximization
c. Performance Appraisal - General impression of performance
d. Policies and Procedures - Ensure tasks are carried out effectively
e. Quality Control - Relies on the quality of products and services
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STAFFING

➔ Filling in all organizational job positions

Recruitment.. Activities set in order to attract qualified applicants

a. INTERNAL: Recruiting people in the premises of the company
b. EXTERNAL: Fill vacant positions from any suitable applicant outside the business
✓ Advertisements, internet recruiting, employee referrals, etc.

Selection.. Choosing individuals who have the required qualifications

Hiring Process..
1. Determining a need (Job analysis)
2. Application search and selection (Recruitment, screening and selection, interviews)
Types of Interviews..
a. Structured: Standard way of comparing job applicants; ask the same questions
b. Unstructured: No specific set of predetermined questions
c. One-on-one: Only the interviewer and the interviewee is present
d. Panel: Meeting with a group of interviewers, each with their own questions
3. Decision-making process (Making a decision, notification and employment offer)
4. Adaptation to the workplace (Orientation)

Employee Relations.. Connection created among employees as they go about their assigned
tasks for the organization to which they belong
Three Kinds of Employees..
1. Engaged
2. Not-engaged
3. Actively disengaged

Training.. Learning given by organizations to its employees that concentrates on short-term job
performance and acquisition of job-relation skills
✓ Training Process
○ Analysis of training needs
○ Training implementation
○ Training evaluation

Performance Evaluation.. Process undertaken by the organization designed to measure

employees’ work performance

Development.. Geared toward the individual’s acquisition and expansion of skills

Compensation.. Forms of pay given by employers to for the performance of their job
✓ Monetary: Salary, benefits, incentives, executive pay, stock options
✓ Non-monetary: Travel, educational/health benefits, awards, praise

Reward.. Something given or done in return to an employee which may have a motivating effect

©
Edana Castaños / Lance Bersamina