A.

HUMAN RESOURCES MANAGEMENT

Conducting job analysis. Job analysis is the process of obtaining information about jobs needed to
achieve the organization’s goal/objectives by determining the duties, tasks, or activities involved in jobs.
Job analysis data maybe gathered through interviews, questionnaires, observation, and diaries. They
may also be collected through position analysis, and competency-based analysis. Decision-making
regarding job-related problems is done objectively by analyzing the requirements of each job.

2. Planning labor need and recruiting. It is important to determine the number and kind of people that
may be attracted for employment. External recruitment enables the organization to fill job openings with
special qualifications and to employ persons with new knowledge, skills, values, ideas, and perspectives.
Internal recruitment may also be done if management finds it more advantageous to promote or transfer
present employees to fill the available job openings. Recruitment from within company is said to be less
expensive as existing employees no longer need extensive orientation programs.

3. Selecting candidates for the job. This involves the matching of people and jobs. Job specifications help
identify the person-job fit and identify their competencies, their knowledge, skills, abilities, and other
factors that may lead to excellent performance. Managers may use different selection methods such as
interviews, psychological tests, and calling references, among others.

Orienting and training new employees. This is done in organizations so that they could contribute to the
achievement of their organizational goals/objectives. The phases involved in this function are:

- conducting needs assessment of the organization, of the person, and of the task/work;

- designing the training program by considering the institutional objectives, the trainees’ readiness and
motivation, and the principles oof learning;

- implementation of the training program for non-managerial employees using on-the-job training,
apprenticeship training, cooperative training, internship, government training, classroom instruction,
and e-learning.

- evaluating the training program in order to determine effectiveness, considering reactions, learning,
behavior of the trainees, return on investment (ROI) or results, and benchmarking

4. Managing compensation pay. Compensation or pay represents a reward received by employees in

exchange for their contributions to the achievement of organizational goals. In doing so, pay equity must
be considered. It must be fair and just, acceptable to all concerned parties, and commensurate to the
value of the work performed. It is important as it determines job performance motivation of workers.

5. Providing incentives and benefits. Incentives are generally based upon a pay-for-performance
philosophy which means that a performance “threshold” or baseline performance level must be reached
by an employee or group of employees in order to qualify for incentive payments. Examples of individual
incentives are bonuses, merit pay, and sales incentives. Group incentives include team compensation,
Scanlon plan, and improshare. Enterprise incentives are profit sharing, stock options, and employee
stock ownership plans. Benefits, on the other hand, include social security, workers’ compensation,
health care and medical educational assistance, vacation leave, sick leave, life insurance, retirement
benefits, and travel benefits. It is important that incentives and benefits programs be based on specific
objectives compatible with the organizational philosophy and policies and the organization’s financial
standing.

6. Evaluating employees’ performance. Appraisal of employees is done on a regular basis to find out who
are doing their jobs well and who are not. The purpose of such evaluation are administrative and
developmental. Administrative purposes include: to aid in decision-making regarding employee’s pay and
promotions, transfers or layoffs, which are based on their achievements and performance. The
developmental purpose of appraisal are the use of results for discussing employees’ strengths and
weaknesses and for listing down performance improvement needs.

7. Communicating. To be effective, managers must have good communication skills, both oral and
written and information technology proficiently. This is necessary to receive and disseminate pertinent
information needed by all organization members in carrying out activities that will lead to 7 the
achievement of company goals/objectives. Besides carrying out internal communication, managers must
also have good communication with customers, suppliers and other stakeholders in the external
environment. Communication may be hindered by barriers and breakdowns in the communication
process. Identifying these barriers and learning how to listen well will facilitate both understanding and
managing process.

8. Developing employees. Programs should be designed to meet the special needs of employees which
will prepare them for future jobs or roles that they maybe be assigned to do. These may include:
graduate studies, crosstraining, which refers to the process of developing employees to do multiple jobs
within an organization; or ethics training, the process of developing employees’ moral judgments that
will help them determine right and wrong behavior which they could use in jobs that require more
decision-making functions.

9. Building employee commitment. This is another important function of HR practitioner which will bind
them to engage in activities that will ensure the achievement of organizational goal/objectives. This must
be followed by employee accountability or accepting responsibility for one’s actions.

10. Providing good working conditions. This includes giving a clear statement of the company’s mission,
vision, goals, and objectives; offering a good compensation and benefits package; preparing a well-
ventilated, welllit, and pollution free work area for employees; and practicing ethical management styles.

11. Handling grievances and industrial relations. When differences arise between labor unions and
management, these are usually settled through the grievance procedure, wherein the feelings, needs,
and desires of both parties are aired. Managers must try to master the art of handling grievances and
industrial relations to bring peace in their organization. Again, it must be emphasized that satisfied
workers are more motivated workers, which in turn, makes them more effective and efficient in
performing their assigned tasks; thus, they hasten the attainment of their company’s set
goals/objectives.

IMPORTANCE OF HUMAN RESOURCES MANAGEMENT

Human resource management deals with the management of people – the most important business
resource. Money, materials, and information resources are not capable of moving the business activities
without the aid of the primary performance drivers, human resources. Therefore, mastering the
activities involved in human resource management (recruitment, selection, 8 placements, training, and
development) is a must since all other management activities (planning, organizing, staffing, leading, and
controlling) could be done easily if organization managers practice proper human resource management.

B. MARKETING MANAGEMENT
As marketing expert Philip Kotler puts it, marketing management “is essentially demand management.”
This is because it involves “influencing the level, timing and composition of demand” so that an
organization may reach its goals. The marketing management functions of management include the
following:

Analyzing, planning, implementing, and controlling of goods, services, and ideas to create exchanges that
satisfy customer needs and company goals. Analyses of demand management starts with the gathering
of data through marketing research. Activities under marketing planning include decision-making on
target markets, market positioning, product development, pricing, distribution channels, physical
distribution, communication, and promotion. The implementation of the marketing plan is formally
carried out by sales managers, salespeople, advertising and promotion managers, and customer service
managers.

Controlling refers to monitoring of the marketing plan’s progress. Goals and budgets are set for each
month or quarter. A review of the results follows in order to identify business that are not attaining their
goals. Managers of unsuccessful businesses must explain what the problem is and propose contingency
plans that the management has to take in response to such negative developments.

Management of marketing resources. Marketing resources include salespeople, advertising, and

marketing research. . Management of salespeople involves inculcating the establishment of satisfying
long-term relations with customers, suppliers, and distributors in order to help their long-term
preference and business. Good marketers and able to maintain win-win relationships by seeing to it that
they always deliver high quality, good service, and fair and reasonable prices to the key parties that they
deal with over a long period of time.

Figure 2. The marketing mix is an important consideration in marketing management

Management of advertising. Although used less frequently than sales calls in business markets, it is still
important in marketing. In can perform different functions such as: build awareness; build
comprehension of the good features of the product or service; remind prospective customers about the
product; provide the company’s contact information to customers; and lead to customers to get in touch
with sales representatives.

Management of marketing research. This involves identifying the seven characteristics of good marketing
research:

1. the principles of the scientific method are used;

2. research creativity is practiced by using innovative ways to solve marketing problems;

3. multiple methods of research are used in order to adapt the method of the problem;
4. interdependence of models and data which recognize that data are interpreted from underlying
models;

5. value and cost of information is concerned with estimating the value of the information against the
cost which helps the marketing research department determine which projects to prioritize;

6. healthy skepticism enables researches to show a healthy questioning of the hurried assumptions
made by the managers about how a market works; and

7. ethical marketing research which is concerned with research that benefits both the sponsoring
company and the consumers; self-serving results may mislead consumers to buy the company’s product
which, in reality, is not good or effective.

Analyze, plan, and implement marketing programs that aim to bring about an expected level and mix of
business deals with target markets. It is important that analysis and planning precede the
implementation of the marketing program, in order to ensure that its aim will be achieved. Strategic
planning for individual business entails defining the business mission, analyzing the business’ external
and internal strengths and weaknesses, and formulating goals and strategies. In doing so, the
implementation of the marketing program will go smoothly and the chances that it will achieve its aim of
bringing an expected level and mix of business deal with target markets will be increased.

Stimulate demands for the products of the company. This is achieved by influencing the level, timing,
and composition of demand, bearing in the mind the attainment of the company’s objectives.

Make crucial decisions that will ensure the company’s competitiveness. These are decisions regarding
target markets, development of products, distribution of goods, market positioning, and setting the right
prices for their products.

Make sure that marketing techniques employed are efficient, effective, and socially responsible or
ethical. Marketing managers and their team members must balance their own best interests (big sales
commissions, recognition, or promotion) with the best interests of their company, consumers, and
society.

IMPORTANCE OF MARKETING MANAGEMENT

Marketing management is important because it is the key to organizational attainment, customer

satisfaction, and profit gain. With major marketing management processes – planning, execution,
pricing, and promotion and distribution of goods, services and ideas to create exchanges with target
groups – satisfying customers and achieving organizational goals will not be possible.

C.OPERATIONS MANAGEMENT
Business managers today focus on productivity, technology use, quality of goods and services, customer
satisfaction, and speed. They are conscious that they need to innovate on their processes and activities
in order to succeed in a highly competitive globalized market. Because of these needs, the operations
management functions of management must include the following:
Overseeing the transformation process that change resources into finished goods and services. In order
to do this, managers must address resource acquisition inventories, facilities, workflows, technologies
and quality. In doing so, productivity and competitive advantage will be ensured as they accomplish the
multiple processes that transform the various resources – in the form of people, material, equipment,
and capital – into quality finished products and services.

Improve of productivity and competitive advantage. Productivity measures the efficiency by which inputs
are turned into outputs. The basic equation for productivity is:

productivity = output / input

Competitive advantage is the competency of an organization to outperform a competitor or competitors.

To ensure productivity, work processes must be subjected to complete analysis and redesigned, if
productivity = output / input is necessary, through process engineering. Other ways to ensure
productivity are process value analysis and reengineering. In process value analysis, all elements of a
process and their workflows are analyzed to be able to know their contributions to key performance
results. Reengineering discards work steps that are not needed, combines other work steps, uses
technological know-how to reduce costs, and ensures efficiency and effectiveness. Competitive
advantage follows when organizations improve their productivity

Managing the sequence of activities and information along the whole course of the value chain. Proper
management of these activities and information results in the creation of finished products and services
that have value to customers. Elements in an organization’s value chain include inflow of resources and
materials, organizing or resources and materials, creating goods or services, distributing finished
products or services, and serving of target customers.

IMPORTANCE OF OPERATIONS MANAGEMENT

Through the study of the essentials of operations management, businesses of different types and sizes
may increase their chances for survival and success in today’s business environment which is
characterized as highly competitive and fast-paced in producing quality products and services.

D. FINANCIAL MANAGEMENT
Gaining profit is the main goal of businesses. To attain this goal, managers must practice good financial
management and this, of course, starts with understanding the financial management functions of
management. These functions include:

Taking charge of the company’s financial policies and strategies, investments, capital structures, and
divided policies. Financial managers of organizations must formulate sound financial standing plans that
will communicate broad guidelines for their financial decisions and strategies. These plans include typical
financial policies that address the organization’s investments, capital structures and dividend policies.
Investment policy covers choice of product lines and capital projects. Capital structure policy covers a
working capital policy (for the balancing assets and liabilities) and leverage policy (for balancing long-
term financing). Dividend policy considers the use of either a systematic pattern of earnings retention or
dividend distribution.
Financial management and control. The management and custody of the organization’s funds also
include control which gives an assurance that funds are properly utilized in order to provide for all the
organization’s needs. Examples of financial standard management and control practices by organizations
are the following:

- project management, which makes sure that long-term projects are implemented according to
previously planned budgets and checks if these have yielded forecasted cash returns

- working capital management, which includes cash, accounts receivable, and inventory management

- cash management, which gives an assurance that there is enough cash balance that maybe used for
daily operating needs, that idle cash in invested through marketable securities, and that proper cash
control are instituted

- accounts receivable management, which ensures the optimization of accounts receivable investments
and the formulation of sound credit evaluation and collection procedures

- inventory management, determines inventory levels by making maximum use of trade-off between
inventory carrying cost, ordering cost, and lost sales opportunities; it also institutes good stable
inventory control procedures

- fund sources management identifies short-and long-term funds that may be available and transacts
and keeps watch of credit facilities with banks and other financial institutions.

- dividend policy implementation determines the form and amounts of dividends and sched

Financial planning. Financial planning is the process of setting financial objectives and determining what
should be done to accomplish them. This includes financial forecasting, financial analysis, and financial
performance evaluation.

Financial forecasting involves:

1. Cash budgeting – a forecast of cash needs and sources

2. Profit planning – a forecast of revenues and expenditures

3. Balance sheet forecasting – considers future assets, liabilities, and the organizations net worth
position

Financial analysis involves:

1. Capital budgeting techniques – involves the assessment of long-term investment

2. Operating leverage analysis – critically examines cost-volume profit relationship

3. Financial leverage analysis – studies the effect of debt on income to the organization’s common
stockholders.
Analysis of pricing and cost of products, materials, supplies, and production/manufacturing also fall
under financial analysis.

Financial performance evaluation refers to the assessment of financial ratios to indicate to the overall
performance of the organization, as well as the assessment of market-wide financial indicators.

IMPORTANCE OF FINANCIAL MANAGEMENT

Financial management facilitates the choice investments, financial policies, and operating mechanism of
the organization in order to effectively achieve its goals and objectives. It includes maximizing its profits
as well as those of its shareholders and stockholders. In doing so, financial managers are able to
maximize the wealth of the organization and its shareholders/stockholders and satisfy other goals like
providing good customer service, minimizing bankruptcy risks, and actively participating in present
societal concerns.

To accomplish the abovementioned functions that give importance to financial management in

organizations, control techniques, that measure the company’s financial soundness, management
effectiveness, production and service efficiency, and human resource attitudes and morale must also be
considered. These include the following:

Break-even chart – is used by the organization’s financial management planners and accountants to
identify how the various sales levels affect the income and profits of the firm. The break-even point is
the level of operations which shows equal income and expenses incurred by the company.

Financial statements – include income statement, balance sheets, and cash flow statements which are
carefully analyzed.

Financial ratios – make use of the above-mentioned financial statements to determine the formulation
of a series of ratios that will, in turn, determine of the company is stable or unstable. Strong or weak and
on the road to bankruptcy; examples of such ratios are rate of return on capital invested, rate on return
of assets, and rate of return on sales, among others.

Another functional statement used in financial management that also emphasizes its importance is the
organization’s budget. This states the amount of money that the company will spend and receive during
a future period of time. At the end of the period of operations, actual expenses and budgeted amounts
are compared to see whether that the company has operated under or over budget. Difference allow
management to examine specific expenditures and the reasons behind such. Managers and department
heads will then be forced to quantify their sales objectives and other company targets because these
must be expressed in pesos and not in general statements or hopeful or optimistic expressions. Budget
preparation in financial management, therefore, is important in management decision-making, and this
must be prepared well on a regular basis by all organizations.

MATERIAL AND PROCUREMENT MANAGEMENT

MATERIAL MANAGEMENT

Materials management is a function, which aims for integrated approach towards the management of
materials in an industrial undertaking. Its main objective is cost reduction and efficient handling of
materials at all stages and in all sections of the undertaking. Its functions include several important
aspects connected with material, such as purchasing, storage, inventory control, material handling,
standardization, etc.

SCOPE OR FUNCTIONS OF MATERIALS MANAGEMENT

Materials management is defined as “the function responsible for the coordination of planning,
sourcing, purchasing, moving, storing and controlling materials in an optimum manner so as to provide a
pre-decided service to the customer at a minimum cost”.

From the definition it is clear that the scope of materials management is vast. The functions of materials
management can be categorized in the following ways:

1. Material Planning and Control

Material planning is a scientific technique of determining in advance the requirements of raw materials,
ancillary parts and components, spares etc. as directed by the production programme. It is a subsystem
in the overall planning activity .

2. Purchasing

Purchasing is an important function of materials management. In any industry purchase means buying of
equipment, materials, tools, parts etc. required for industry. The importance of the purchase function
varies with nature and size of industry.

3. Store Management

Stores play a vital role in the operations of company. It is in direct touch with the user departments in its
day-to-day activities. The most important purpose served by the stores is to provide uninterrupted
service to the manufacturing divisions. Further, stores are often equated directly with money, as money
is locked up in the stores.

4. Inventory Control

Management Inventory control is a planned approach of determining what to order, when to order and
how much to order and how much to stock so that costs associated with buying and storing are optimal
without interrupting production and sales. Inventory control basically deals with two problems: (i) When
should an order be placed? (Order level) and (ii) How much should be ordered? (Order quantity)

5. Standardization

Standardization means producing maximum variety of products from a minimum variety of materials,
parts, tools, and processes. It is the process of establishing standards or units of measure by which
extent, quality, quantity, value, performance etc., may be compared and measured.

6. Simplification

The concept of simplification is closely related to standardization. Simplification is the process of

reducing the variety of products manufactured. Simplification is concerned with the reduction of product
range, assemblies, parts, materials and design

7. Value Analysis Value engineering or value analysis had its birth during the World War II Lawrence D.
Miles was responsible for developing the technique and naming it. Value analysis is defined as “an
organized creative approach which has its objective, the efficient identification of unnecessary cost –
cost which provides neither quality nor use nor life nor appearance nor customer features.” Value
Analysis focuses engineering, manufacturing and purchasing attention to one objective-equivalent
performance at lower cost.

Value analysis is concerned with the cost added due to inefficient or unnecessary specifications and
features. It makes its contribution in the last stage of product cycle, namely, the maturity stage. At this
stage, research and development no longer make positive contributions in terms of improving the
efficiency of the functions of the product or adding new function to it.

8. Ergonomics (Human Engineering) The word ‘Ergonomics” has its origin in two Greek words Ergon
meaning laws. So, it is the study of the man in relation to his work. In the USA and other countries, it is
called by the name ‘human engineering or human factors engineering.’ ILO defines human engineering
as, “The application of human biological sciences along with engineering sciences to achieve optimum
mutual adjustment of men and his work, the benefits being measured in terms of human efficiency and
well-being.”

The human factors or human engineering is concerned with man-machine system. Thus another
definition which highlights the man-machine system is: “The design of human tasks, man-machine
system, and effective accomplishment of the job, including displays for presenting information to human
sensors, controls for human operations and complex man-machine systems.”

Human engineering focuses on human beings and their interaction with products, equipment facilities
and environments used in the work. Human engineering seeks to change the things people use and the
environment in which they use the things to match in a better way the capabilities, limitations and needs
of people.

9. Just-in-Time (JIT) Just-in-Time (JIT) Manufacturing is a philosophy rather than a technique. By

eliminating all waste and seeking continuous improvement, it aims at creating manufacturing systems
that is response to the market needs.
The phase just in time is used because this system operates with low WIP (Work-In-Process) inventory
and often with a very low finished goods inventory. Products are assembled just before they are sold,
subassemblies are made just before they are assembled, and components are made and fabricated just
before subassemblies are made. This leads to lower WIP and reduced lead times. To achieve this
organizations, have to be excellent in other areas e.g. quality.

According to Voss, JIT is viewed as a “Production methodology which aims to improve overall
productivity through elimination of waste, and which leads to improve quality”. JIT provides an efficient
production in an organization and delivery of only the necessary parts in the right quantity, at the right
time and place while using the minimum facilities”.

IMPORTANCE OF MATERIAL MANAGEMENT

The importance of material management:

1. The material cost content of total cost is kept at a reasonable level. Scientific purchasing helps in
acquiring materials at reasonable prices. Proper storing of materials also helps in reducing wastages.
These factors help in controlling cost content of products.

2. The cost of indirect materials is kept under check. Sometimes cost of indirect materials also
increases total cost of production because there is no proper control over such materials.

3. The equipment is properly utilized because there are no break downs due to late supply of materials.

4. The loss of direct labor is avoided.

5. The wastages of materials at the stage of storage as well as their movement is kept under control.

6. The supply of materials is prompt and late delivery instances are only few.

7. The investments on materials are kept under control as under and over stocking is avoided.

8. Congestion in the stores and at different stages of manufacturing is avoided.

E. PROCUREMENT MANAGEMENT
Procurement management is the strategic approach to managing and optimizing organizational spend. It
involves acquiring quality good and service from preferred vendors within stipulated budget on or before
deadline. The procurement management process includes sourcing, requisitioning, ordering, expediting,
inspection, and reconciliation.

STEPS IN THE PROCUREMENT PROCESS

Procurement involves much more than just handing over the company credit card and paying for a
purchase. And effective procurement strategy includes everything from identifying which goods and
services a company needs right through to maintaining the right documentation and records.

Overview of the procurement process:

1. Identify which goods and services the company needs

2. Submit a purchase request

3. Assess and select vendors

4. Negotiate price and terms

5. Create a purchase order

6. Receive and inspect the delivered goods

7. Conduct three-way matching

8. Approve the invoice and arrange payment

9. Recordkeeping

Keep in mind, how a company shapes its internal procurement process will be influenced by factors like
the company’s size, industry, available human resources, and organizational structure.

IMPORTANCE OF PROCUREMENT IN A BUSINESS

Procurement is important in business because it directly impacts a company’s profit. For an organization
to be profitable, the cost of procuring goods needs to be less than the amount it sells those goods for,
minus whatever costs are selling them.

In addition, procurement is linked to several core business functions within an organization. So, it should
always be considered critical part of nay organization’s corporate strategy.

To understand this, consider how procurement can influence the four pillars of corporate strategy.

Corporate Identity

· What does our company do and stand for?

· What beliefs inform our business model?

Market Placement

· Who are our customers?

· What do they want?

· What do they believe?

Company Capabilities

· What are our strengths and weaknesses?

· Does our strength support our long-term goals?

· How do we want to grow?

Management Issues

· Do we need to hire/develop talent to lead us to our goals?

· Does the company have the resources needed to achieve our goal?

Procurement touches on each of these components. For instance, procurement and corporate identity
intertwined. If your business is building (or has built) its identity around an environmentally conscious
ethic, then your procurement strategy should reflect that decision. Policies should be in place to ensure
you are sourcing from companies with similar ethics, or that your sourcing materials that are not
environmentally hazardous.

A company’s procurement strategy should also be shaped with its market placement, company
capabilities, and management issues in mind. The company needs the right people in place to put into
action the beliefs/philosophies you want your business to be governed by. Dealings with vendor should
reflect company philosophy.

F. OFFICE MANAGEMENT
Office management refers to the process of planning, organizing, guiding, communicating, directing,
coordinating, and controlling the activities of a group of people who are working to achieve business
objectives efficiently and economically.

Office management is not only necessary to business organization but also essential to non-business
organization. In modern internet society also, there is a need of direction to the individual effort towards
common purpose or objective. The direction is given from a place i.e. office.

The process can be treated as office management. A business is carried on by businessman with the help
of group of persons. This group of persons has different interest, talent, and motto. So, it is the function
of office management to organize, guide and control the activities of such group or persons to achieve
business objectives.

ELEMENTS OF OFFICE MANAGEMENT

Elements of office management are termed as pillars of a building. If pillar is strong, certainly, the
building is also strong. Hence, efficient functioning of office management is based on the elements of
office management.

1. Personnel

Office personnel are performing the office work.Generally, the selection and placement of office
personnel is carried on by the office manager in small organization. In large organization, staffing is
carried on by the human resource management department. In both the case, the office work is to be
performed by allocating the work to each individual according to their efficiency, guide the personnel to
do the work with the help of means available in an office within a specified time and control the
activities of office personnel. The office manager has to do all these activities.

2. Means

Means refers to tools used to perform the office work. Means include pen, pencil, eraser, paper, ink,
office forms, typewriter, computer, printer, calculator, and the like. Adequate tools have been supplied in
an office and put them to the most efficient and economical objectives.

3. Environment

The nature of business determines the environment of an office. The various office works have to be
carried on under a particular condition or environment. A working environment is created and
maintained for the smooth performance of office work. It is the duty and responsibility of an office
manager to bring suitable environment by adopting various procedures and practice.

4. Purpose

The office personnel must be aware of the purpose for which a particular work is carried on and the
impact of such work on others’ performance. The office manager teaches the purpose office personnel.
If not so, the performance of office work does not bring the most efficient and economical use of office
resources and achieve the objectives.

IMPORTANCE OF OFFICE MANAGEMENT

The following points highlight the importance of office management:

1. Achievement of goals

Office management helps in increases office efficiency, smooth flow of work, maintaining public
relations, minimization of cost, managing change and accepting the new challenges which help in
achievement of goals of the organization.

2. Increases office efficiency

Office management focuses on office activities and helps office in economical way.

3. Smooth flow of work

Office management helps in performing efficient and effective office work. It helps in proper planning
and effective control office.

4. Public relations

There must be a good public relation of the organization. The main purpose of public relation is to make
the organization look trustworthy to all people who deal with it in all its action. It helps in increasing the
goodwill of the organization.

5. Minimization of cost

Office management guides the use of capital, natural, financial, human and other resources effectively
without leakage and wastage which helps in minimization of cost.

6. Managing change

Office management helps in implementation of plans in right time and right way. But there may be
change in resources, need, technology, preferences and so on which make it necessary to bring about
the change in plans. Office management makes the office flexible which helps to manage the change.

7. New challenges

In an office, to achieve goals, many challenges should be faced. It helps in improving the research and
information system. It helps in managing all the rigid matters.

G. INFORMATION AND COMMUNICATION TECHNOLOGY MANAGEMENT (ICTM)

Management in the 21st century is driven by information and communication, and digital network.
Computers quickly provide more information to a greater number of people, groups, and organizations
than ever before. Hence, the study of the information and communication technology management
(ICTM) functions of management is relevant.

The ICTM functions of management include the following:

Developing the organization’s hardware, software, and other computing and communicating technology.

Information Technology (IT) encompasses different kind of technology, such as different types of
hardware (e.g. computers and printers), software (e.g. operating systems), and computing and
communication technology (e.g. telecommunications and management of databases). The fast and ever-
changing nature of ICT requires managers to become flexible and open to change.

Developing the organization’s management information system (MIS) tailored to the needs of the firm’s
unit.

IT has developed management information systems which gather, process, disseminate internal and
external information to the company on a timely basis order to support managers in their tasks.
Electronic equipment makes fast and reasonably priced processing of voluminous amounts of data
possible. The computer can process data and provide logical conclusions and classify and prepare them
for use in decision-making.
Encouraging e-commerce through Internet use.

Through e-business strategies, the company gains competitive advantage over competitors. Common e-
business strategies involve business to business (B2B) and business to customer (B2C) transactions. B2B
transactions use IT and web portals to link companies with members of their supply chains and those
dealing with their resource supplies. B2C transactions also use IT and web portals, but in this case, the
link created is one between the company and its customers. A common example is e-tailing or the sale of
goods directly to customers via the Internet. Other web-based business models are brokerage, which
brings buyers and sellers together; advertising, which provides information while generating revenue
from advertisements; merchant model, or selling products through the web; subscription model, the
selling of access to a website; infomediary model, the collecting of information on users and selling it to
other businesses; and the community model which supports websites by asking for donations from
users.

IMPORTANCE OF INFORMATION TECHNOLOGY AND COMMUNICATION TECHNOLOGY MANAGEMENT

The widespread use of ICT has brought about the emergence of a “knowledge-based society” due to
easy access to information at low costs through the Internet. Management may use it for its different
managerial functions. It may be used for scenario planning or identifying future scenarios in the business
environment, which may need careful planning; decision-making through the use of information
generated by IT; aiding team work; facilitating productivity measurement; easy, low-cost communication;
worldwide selling through the Internet; and many others. It may be said, therefore, that ICT has
revolutionized the business world.

IMPORTANCE OF STARTING A FAMILY BUSINESS

“The family business is an entity in which family member s of the family are directly involved in its
operations. Ownership is within the family. Family values affect business decisions. The relationship
among members of the family affects the functioning of the organization. Generations of family business
exist. Young family members plan for their participation in their parents' business while pursuing
academic studies.

Family business passes from one generation to the other. At the start, they may be small, but the
opportunity to grow and to exist in succeeding generations are always possible. We see them in the
business of hotels, supermarkets, and educational institutions among others. Concerns on survival and
profitability go hand in hand with keeping family values and relationships.” Orjalco, Frias & Pefianco,
Organization & Management, pp. 93, 2016.

Starting a business is a dream that many Filipinos share, and doing so has the potential to one of the
most fulfilling careers one can imagine. As a business owner, you get to be your boss. What could be
better?

Opening a business is a lot of work, you have to comply with all the requirements to start. Here’s how
you go about it.
1. Choose what form of business you will go into

a. sole proprietorship

b. partnership

c. corporation

Most family business starts with sole proprietorship as it is easier to comply with the requirements
needed.

2. Determine what type of business you may venture into.

a. Franchising-is an agreement between the franchisor and the franchisee. The franchisor sets the terms
of the franchise contract which the franchisee has to follow. The franchise is a privilege to do business
granted by the franchisor to the franchisee.

b. Startup-is creating a business from scratch.

3. Buy-out

It is acquiring an existing business from scratch. An investor wishing to have a business with a quick start-
up time would not start from scratch. For a quick start, one opts to buy out somebody’s business.

In the Philippines, the Department of Trade and Industry (DTI)administers Business name application
Forms for sole proprietors (BTRCP Form No. 18a). Online registration of enterprises may be done through
the Business Name Registration System. For food establishments, petition for barangay permits, and the
prerequisite information sheets and licenses to operate are being issued by the Bureau of Food and Drug
under the Department of Health.

The DTI administers R.A. 10644, otherwise known as the Go Negosyo Act R.A.10644 seeks to strengthen
micro, small, and medium enterprises (MSMEs)to create job opportunities in the Philippines.

The Go Negosyo Act establishes MSME or Business Assistance Centers, also called Negosyo Centers in
collaboration with local government units(LGUs) and other agencies.

The value of the enterprises that may avail of the Negosyo Centers are the following:

· Micro- not more than Php3,000,000.00

· Small- Php3,000,001-Php15,000,000.00

· Medium-Php15,000,001-100,000,000

Requirements and Procedures Involved in the Registration of Businesses

Sole Proprietorship Registration

1. Business Name Registration with the DTI

2. Submission of 2X2 ID Pictures

3. Submission of Filipino citizenship proofs (if the applicant is a naturalized Filipino citizen or if the
applicant is a Filipino with a non-Filipino sounding family name)examples of needed evidence are a birth
certificate, passport, and voter’s ID, among others

4. Payment of application fee or processing fee plus documentary stamp out amount

Partnership Registration

1. Filing of the previously prepared partnership agreement by two or more applicants with the SEC

2. Payment of the filing fee

3. Valuation of the application by the lawyer and staff of Corporate and Legal Department of the SEC

4. Release of the approved registration(within 15-30 days)

Corporate Registration

1. Filing of the previously prepared articles of incorporation and by- laws and bank certification
regarding stockholder’s shares of stocks with the SEC.

2. Payment of the registration fee.

3. Evaluation of the application by the lawyer and staff of the Corporate and Legal Department of the
SEC.

4. Release of the registration (within 15 to 30 days