Ateneo de Zamboanga University

SENIOR HIGH SCHOOL UNIT

Fr. Eusebio Salvador, SJ Campus, La Purisima St. Zamboanga City
Grade Level 12 Subject Area: Organization and Management
1st Semester, S.Y 2017-2018

INTRODUCTION TO ORGANIZATION AND MANAGEMENT

Module 1
A Student Guide for ABM125 Students
I. Introduction to Management

A. Why are Managers important?

Managers are important to organizations for three reasons.

(1) First, organizations need their managerial skills and abilities in uncertain, complex, and
chaotic times.
(2) Second, managers are critical to getting things done in organizations.
(3) Finally, managers contribute to employee productivity and loyalty; the way employees
are managed can affect the organization’s financial performance, and managerial ability
has been shown to be important in creating organizational value.

B. Who is a Manager?

A manager is someone who coordinates and oversees the work of other people so
organizational goals can be accomplished. A manager’s job is not about personal
achievement—it’s about helping others do their work.

How can managers be classified in organizations? In traditionally structured organizations

(often pictured as a pyramid because more employees are at lower organizational levels
than at upper organizational levels), managers can be classified as first-line, middle, or top.

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 (1) At the upper levels of the organization are the top managers, who are responsible for
making organization-wide decisions and establishing the plans and goals that affect the
entire organization. These individuals typically have titles such as executive vice
president, president, managing director, chief operating officer, or chief executive
officer.
(2) Middle managers manage the work of first-line managers and can be found between
the lowest and top levels of the organization. Examples of middle managers are
department head, division head, manager of quality control, and director of the research
lab.
(3) At the lowest level of management, first-line (or frontline) managers manage the
work of non-managerial employees who typically are involved with producing the
organization’s products or servicing the organization’s customers. First-line managers are
directly responsible for the production of goods and services. They are the first or
second level of management and have such titles as supervisor, line manager, section
chief, and office manager.

Note: Line managers differ from staff managers in such a way that line managers are
responsible for the manufacturing and marketing departments that make or sell the product
or service while staff managers are in charge of departments, such as finance and human
resources that support line departments.
C. Where do Managers work?

It’s obvious that managers work in

organizations. But what is an
organization? An organization is a social
entity that is goal-directed and
deliberately structured. Social entity
means being made up of two or more
people. Goal directed means designed to
achieve some outcome, such as make a
profit, win pay increases for members,
meet spiritual needs, or provide social
satisfaction – in general, it exist with a distinct purpose. Deliberately structured means that
tasks are divided, and responsibility for their performance is assigned to organization
members.
This definition applies to all organizations, including both profit and nonprofit ones. Small,
offbeat, and nonprofit organizations are more numerous than large, visible corporations—
and just as important to society.
D. What do Managers do?

Simply speaking, management is what managers do. But that simple statement doesn’t tell
us much does it? Let’s look first at what management is before discussing more specifically
what managers do.

Management is the attainment of organizational goals in an effective and efficient manner

through planning, organizing, leading, and controlling organizational resources.

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 The 4 Functions in Management

(1) Planning means identifying goals for future organizational performance and
deciding on the tasks and use of resources needed to attain them. In other words,
managerial planning defines where the organization wants to be in the future and
how to get there.

(2) Organizing involves assigning tasks, grouping tasks into departments, delegating
authority, and allocating resources across the organization. It typically follows
planning and reflects how the organization tries to accomplish the plan.

(3) Leading is the use of influence to motivate employees to achieve organizational

goals. Leading means creating a shared culture and values, communicating goals to
people throughout the organization, and infusing employees with the desire to
perform at a high level.

(4) Controlling is the fourth function in the management process. Controlling means
monitoring employees’ activities, determining whether the organization is moving
toward its goals, and making corrections as necessary.

Efficiency refers to doing things right or getting

the most output from the least amount of inputs or
resources. Managers deal with scarce resources—
including people, money, and equipment—and
want to use those resources efficiently.
Effectiveness is often described as ―doing the
right things,‖ that is, doing those work activities
that will result in achieving goals.
E. Mintzberg’s Managerial Roles

Henry Mintzberg, a well-known management researcher, studied actual managers at work.

In his first comprehensive study, Mintzberg concluded that what managers do can best be
described by looking at the managerial roles they engage in at work. The term managerial
roles refer to specific actions or behaviors expected of and exhibited by a manager. As
shown in the exhibit below, these 10 roles are grouped around interpersonal relationships,
the transfer of information, and decision making.

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 The interpersonal roles involve
people (subordinates and persons
outside the organization) and other
ceremonial and symbolic duties. The
three interpersonal roles include
figurehead, leader, and liaison.

The informational roles involve

collecting, receiving, and
disseminating information. The
three informational roles include
monitor, disseminator, and
spokesperson.
Finally, the decisional roles entail
making decisions or choices and
include entrepreneur, disturbance
handler, resource allocator, and
negotiator. As managers perform
these roles, Mintzberg proposed
that their activities included both reflection (thinking) and action (doing).
F. Management Skills

What types of skills do managers need? Robert L. Katz proposed that managers need three
critical skills in managing: technical, human, and conceptual.
(1) Technical skills include mastery of the methods, techniques, and equipment involved
in specific functions such as engineering, manufacturing, or finance. Technical skills also
include specialized knowledge, analytical ability, and the competent use of tools and
techniques to solve problems in that specific discipline.

(2) Human skills involve the manager’s ability to work with and through other people and
to work effectively as a group member. Human skills are demonstrated in the way that a
manager relates to other people, including the ability to motivate, facilitate, coordinate,
lead, communicate, and resolve conflicts.

(3) Conceptual skills include the cognitive ability to see the organization as a whole
system and the relationships among its parts. Conceptual skills involve knowing where
one’s team fits into the total organization and how the organization fits into the industry,
the community, and the broader business and social environment.

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II. Evolution of Management Theory

Management has been practiced a long time. Organized endeavors directed by people
responsible for planning, organizing, leading, and controlling activities have existed for
thousands of years.

A. Classical Approach

Classical approach refers to the first studies of management, which emphasized rationality
and making organizations and workers as efficient as possible. Three major theories
comprise the classical approach: scientific management, bureaucratic organizations and
general administrative theory.
(1) Scientific Management

Scientific management emphasizes scientifically determined jobs and management

practices as the way to improve efficiency and labor productivity.
Frederick W. Taylor, known as the ―father‖ of scientific management, studied manual
work using scientific principles—that is, guidelines for improving production efficiency—
to find the one best way to do those jobs. He proposed that workers ―could be retooled
like machines, their physical and mental gears recalibrated for better productivity.‖
Two other important pioneers in this area were the husband-and-wife team of Frank B.
and Lillian M. Gilbreth. Frank B. Gilbreth (1868–1924) pioneered time and motion
study and arrived at many of his management techniques independent of Taylor. Frank
and his wife Lillian, a psychologist, studied work to eliminate inefficient hand-and-body
motions. The Gilbreth’s also experimented with the design and use of the proper tools
and equipment for optimizing work performance.
(2) Bureaucratic Organizations

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 A systematic approach developed in Europe that looked at the organization as a whole is
the bureaucratic organizations approach, a subfield within the classical perspective,
which emphasizes management on an impersonal, rational basis through elements such
as clearly defined authority and responsibility, formal recordkeeping, and separation of
management and ownership.
Max Weber (1864–1920), a German theorist, introduced most of the concepts on
bureaucratic organizations. Weber envisioned organizations that would be managed on
an impersonal, rational basis. This form of organization was called a bureaucracy.
(3) General Administrative Principles

The administrative principles approach is a subfield of the classical perspective that

focuses on the total organization rather than the individual worker and delineates the
management functions of
planning, organizing,
commanding, coordinating,
and controlling.
The major contributor to
this approach was Henri
Fayol (1841–1925), a
French mining engineer
who worked his way up to
become head of a large
mining group known as
Comambault. Fayol believed
the functions of
management were common
to all business endeavors
but also were distinct from
other business functions. He
developed 14 principles of
management from which
many current management
concepts have evolved.

B. Humanistic Approach

The humanistic perspective emphasized understanding human behavior, needs, and

attitudes in the workplace. Mary Parker Follett emphasized worker participation and
empowerment, shared goals, and facilitating rather than controlling employees. Chester
Barnard’s contributions include the acceptance theory of authority.
(1) Human Relations Movement – stresses the satisfaction of employees’ basic needs as the
key to increased productivity. The most important contribution to this movement came
out of the Hawthorne Studies, a series of studies conducted at the Western Electric
Company Works in Cicero, Illinois during the 1920s and 1930s that provided new
insights into individual and group behavior. In this study, researchers wanted to know
the effect of various lighting levels on worker productivity.

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 (2) Human Resources Perspective – suggests that jobs should be designed to meet people’s
higher-level needs by allowing employees to use their full potential. Two of the best-
known contributors to the human resources perspective were Abraham Maslow and
Douglas McGregor.

Abraham Maslow (1908–1970), a practicing psychologist, observed that his patients’

problems usually stemmed from an inability to satisfy their needs. Thus, he generalized
his work and suggested a hierarchy of needs. Maslow’s hierarchy started with
physiological needs and progressed to safety, belongingness, esteem, and, finally, self-
actualization needs.

Douglas McGregor (1906–1964) formulated Theory X and Theory Y. McGregor

believed that the classical perspective was based on Theory X assumptions about
workers. He also felt that a slightly modified version of Theory X fit early human
relations ideas. In other words, human relations ideas did not go far enough. McGregor
proposed Theory Y as a more realistic view of workers for guiding management thinking.

(3) Behavioral Sciences Approach – draws from psychology, sociology, and other social
sciences to develop theories about human behavior and interaction in an organizational
setting.

C. Quantitative Approach (Management Science)

Management science became popular based on its successful application in solving military
problems during World War II.
Management science, also called the quantitative perspective, uses mathematics, statistical
techniques, and computer technology to facilitate management decision making, particularly
for complex problems. The Walt Disney Company uses management science to solve the
problem of long lines for popular rides and attractions at its theme parks.

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 Three subsets of management science are operations research, operations management,
and information technology (IT).
D. Contemporary Approaches

The systems approach says that an organization takes in inputs (resources) from the
environment and transforms or processes these resources into outputs that are distributed
into the environment. This approach provides a framework to help managers understand
how all the interdependent units work together to achieve the organization’s goals and that
decisions and actions taken in one organizational area will affect others. In this way,
managers can recognize that organizations are not self-contained, but instead rely on their
environment for essential inputs and as outlets to absorb their outputs.
The contingency approach says that organizations are different, face different situations, and
require different ways of managing. It helps us understand management because it stresses
there are no simplistic or universal rules for managers to follow. Instead, managers must
look at their situation and determine that ―if this is the way my situation is, then, this is the
best way for me to manage‖.
III. The Environment of the Organization

The external organizational environment includes all elements existing outside the boundary of
the organization that have the potential to affect the organization. The environment includes
competitors, resources, technology, and economic conditions that influence the organization. It
does not include those events so far removed from the organization that their impact is not
perceived.
The external environment
of an organization can be
conceptualized further as
having two components:
task and general
environments.
The task environment
is much closer to the
organization and includes
the sectors that conduct
day-to-day transactions
with the organization and
directly influence its basic
operations and performance. It is generally considered to include competitors, suppliers,
customers, and the labor market.
The general environment affects an organization indirectly. It includes socio-cultural,
economic, legal-political, natural, and technological factors that influence all organizations
about equally.

Reference: Daft, R. (2016). Management (12th ed.). Boston, MA: Cengage Learning.

Robbins, S. & Coulter, M. (2017). Management (13th ed.). Essex, England: Pearson Education Limited.

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