MINDANAO STATE UNIVERSITY

SULTAN KUDARAT EXTENSION

ISULAN, SULTAN KUDARAT
GRADUATE SCHOOL
MASTER IN PUBLIC ADMINISTRATION

COMPILATION OF REPORTS IN PA 214

– MANAGEMENT APPROACHES AND
TECHNIQUES

JANUARY 2022
MANAGEMENT CONCEPTS
 MANAGEMENT CONCEPTS (OVERVIEW)
HELBERT E. ALILIGAY

WHAT IS MANAGEMENT?

1.Field of Study - Management principles, techniques, functions, etc. -

Profession

2.Team or Class of people - Individual who performs managerial activities or

may be a group of persons

3.Process - Managerial activities - planning, organizing, staffing, directing,

controlling

DEFINITION:

 F.W. Taylor - “Art of knowing what you want to do and then seeing that
it is done the best and cheapest way”.

 Henry Fayol – “To Manage is to forecast, to plan, to organize, to

command, to co-ordinate and to control”.

 Peter F. Drucker – “Management is work and as such it has its own

skills, its own tools and its own techniques”.

 “Management is the art of getting things done through and with

people”.

7 IMPORTANT CHARACTERISTICS OF MANAGEMENT

1.

Management is Goal-oriented Process

 No goal in the hand no need of management. In other words, we need
management when we have some goals to be achieved. A manager on
the basis of his knowledge and experience tries to achieve the goals
which are already decided. Hence, nothing is wrong to say that
management is a goal-oriented process.

2. Management is All-pervasive/Universal

Anything minus management is nothing or zero. Here by anything we

mean all types of activities-business and non-business. If we deduct
management out of these activities, the result will be failure or zero. It
means management is necessary to conduct any type of activities.
Hence, it is pervasive or universal.

3. Management is Multidimensional

The management is a three-dimensional activity:

i. Management of Work

Every organization is established for doing some work, like a school

provides education, a hospital treats patients, a factory produces, etc.
Of these, no work can be completed satisfactorily without
management.

ii. Management of People

Each organization is established for doing some work and the same is
conducted by people. Hence, it is necessary to manage the people so
that the work can be accomplished in a better way.

iii. Management of Operations

To achieve the goals of an organization many operations or activities

need to be conducted, such as, production, sale, purchase, finance,
accounting, R&D, etc. Again, management is needed to make sure that
operations are accomplished efficiently and effectively.

4. Management is a Continuous Process

The various managerial activities cannot be performed once for all, but
it is a continuous process. A manager is busy sometimes in doing one
managerial activity and at other times some other activity.

5. Management is a Group Activity

 It means that (|T-2 it is not a single person who consummates all the
activities of an organization but it is always a group of persons
(managers). Hence, management is a group effort.

6. Management is a Dynamic Function

Management is a dynamic activity as it has to adjust itself to the

regularly changing environment. In this context, it can be rightly said
that nothing is eternal in management.

It is necessary here to clearly understand that the recognition of

management in the form of group is only in reference to big
organizations, because in these kinds of organizations many managers
are appointed at various managerial levels.

On the other hand, in small organizations only one manager is

sufficient as he can himself manage all the affairs of the organization.
For these kinds of organizations, it would not be right to call
management a group activity.

7. Management is an Intangible Force

Management is that power which cannot be seen. It can only be felt. If

any organization is heading toward higher levels of achievement, it
signifies the existence of good management and vice versa. In other
words, achievement reflects the quality of management and its
effectiveness.

LEVELS OF MANAGEMENT

1. Top-Level

Management

This is the highest level in the organizational hierarchy, which

includes Board of Directors and Chief Executives. They are
responsible for defining the objectives, formulating plans, strategies
and policies.
 2. Middle-Level Management

It is the second and most important level in the corporate ladder, as it

creates a link between the top and lower-level management. It
includes departmental and division heads and managers who are
responsible for implementing and controlling plans and strategies
which are formulated by the top executives.

3. Lower-Level Management

Otherwise called as functional or operational level management. It

includes first-line managers, foreman, supervisors. As lower-level
management directly interacts with the workers, it plays a crucial role in
the organization because it helps in reducing wastage and idle time of
the workers, improving the quality and quantity of output.

The three management levels form the management hierarchy, that

represents the position and rank of executives and managers in the chart.

FUNCTIONS OF MANAGEMENT
Planning: It is the first and foremost
function of management, i.e., to decide
beforehand what is to be done in future.
It encompasses formulating policies,
establishing targets, scheduling actions
and so forth.

 Organizing: Once the plans are

formulated, the next step is to organize
the activities and resources, as in
identifying the tasks, classifying them,
assigning duties to subordinates and
allocating the resources.

 Staffing: It involves hiring personnel for

carrying out various activities of the
organization. It is to ensure that the right
person is appointed to the right job.

 Directing: It is the task of the manager

to guide, supervise, lead and motivate
the subordinates, to ensure that they
work in the right direction, so far as the
objectives of the organization are
concerned.

 Controlling: The controlling function of

management involves a number of steps
to be taken to make sure that the
 performance of the employees is as per the plans. It involves
establishing performance standards and comparing them with the
actual performance. In case of any variations, necessary steps are to
be taken for its correction.

Coordination is an important feature of management which means the

integration of the activities, processes and operations of the organization and
synchronisation of efforts, to ensure that every element of the organization
contributes to its success

MANGEMENT IS AN ART AND SCIENCE

Management as a science provides principles and as an art helps in

tackling situations.

Art
• Practical know how
• Technical skills
• Concrete results
• Creativity
• Personalized nature

Science
• Empirically Derived
• Critically tested
• General principles
• Cause and effect relationship
• Universal applicability
SYSTEMS APPROACH TO MANAGEMENT
MANAGEMENT FUNCTIONS
 PLANNING
Planning and its application to processes in Government
(Operational Working Plan)
ZAHIR D. APIL
CONCEPT OF PLANNING

Planning - is an organizational management activity that is used to set

priorities, focus energy and resources, strengthen operations, ensure that
employees and other stakeholders are working toward common goals,
establish agreement around intended outcomes/results, and assess and
adjust the organization's direction in response to a changing environment. It is
a disciplined effort that produces fundamental decisions and actions that
shape and guide what an organization is, who it serves, what it does, and why
it does it, with a focus on the future. Effective strategic planning articulates not
only where an organization is going and the actions needed to make
progress, but also how it will know if it is successful

Planning is a process of thinking; it is an organized foresight, a vision based

on experiences and facts that is necessary for an intelligent action. Planning
bridges the gap between where you are to where you want to go. In short, it is
a decision-making process.

According to Henri Fayol, planning is the most crucial of all the five functions
of management, which requires an active participation of the entire
organization. Following time and implementation, planning must be
coordinated at various levels. It must consider the resources available in the
organization and the flexibility of the personnel; as this guaranty continuity.

VARIOUS ASPECTS OF PLANNING

 Planning is an intellectual process.
 Planning is the first stage of the managerial functions. Before
planning, there will be nothing to organize direct, and control.
 Planning is continuous, never-ending, and a flexible function.
 Planning is insidious and broadly covered.

VARIOUS FUNCTIONS OF PLANNING

 Collecting and analyzing information.
 Determining alternative courses of action.
 Choosing the best course of action.
 Developing sub-plans.
 Implementation and follow up of the plan.

ADVANTAGES OF PLANNING
 Planning equips you to face the uncertainties of the future.
 Planning aids in adapting and adjusting to changing environments.
 Planning prevents hasty decisions.
  Planning reduces the overall cost.
 Planning aids in improving the motivation and morale of the
employees.
 Planning brings unity through action.
 Planning exercises effective control.

“Planning is the foundation for all managerial functions. An enterprise would

soon disintegrate without planning.”
STEPS IN PLANNING PROCESS
1. Develop objectives.
2. Develop tasks to meet those objectives.
3. Determine resources needed to implement tasks.
4. Create a timeline.
5. Determine tracking and assessment method.
6. Finalize plan.
7. Distribute to all involved in the process.

THE THREE (3) MAJOR TYPES OF PLANS

Plans commit individuals, departments, organizations, and the resources of

each to specific actions for the future. Effectively designed organizational
goals fit into a hierarchy so that the achievement of goals at low levels permits
the attainment of high‐level goals. This process is called a means‐ends chain
because low‐level goals lead to accomplishment of high‐level goals.

“Planning is about managing resources and priorities in an organized way,”

Berry says. “Management is related to leadership, and it’s related to
productivity.”

● Devise a Plan: Write important details down and focus on strengths,

what matters, what people are most important to you and what you can
do for them. This will help you communicate your vision to your
employees.
● Define Success: How do you see your business in several years?
Define long-term goals and be specific. Establish milestones for certain
goals and who will achieve the goals. Look at what drives your
business; it may be presentations, conversions, page views or
something else. Then establish a review schedule and re-examine your
long-term goals as necessary.
● Put It in Motion: Track and analyze numbers to help you manage the
work behind the numbers. You’ll be better able to make changes — or
to develop new plans — that will help you manage better

Three major types of plans can help managers achieve their organization's
goals:

1. Strategic Plan,

2. Tactical Plan, and

3. Operational Plan.

Operational plans lead to the achievement of tactical plans, which in turn lead
to the attainment of strategic plans. In addition to these three types of plans,
managers should also develop a CONTIGENCY PLAN in case their original
plans fail.
1. Strategic Plan

Is a management activity often used by organizations to better focus their

energy, establish priorities, and strengthen operations to achieve targeted
goals.

Are designed with the entire organization in mind and begin with an
organization's mission. Strategic plans paint a picture of the desired future
and long-term goals of the organization. Essentially, strategic plans look
ahead to where the organization wants to be in three, five, even ten years.
Strategic plans, provided by top-level managers, serve as the framework for
lower-level planning.

Involves analyzing competitive opportunities and threats as well as strengths

and weaknesses of the organization, & determining how to position the
organization to compete effectively in the environment.

Strategic Planning can be a vital tool, it provides organization with measurable

objectives that aid in daily decision-making. This planning process helps
prevent organization from aimlessly performing business tasks without set
priorities or a real purpose. Without a clear vision in mind for the future,
employers may make wrong decisions for their business and employees may
be confused about their position in the company. A strategic planning process
is designed to drive organization in the right direction and promote the
exchange of useful ideas between people with similar goals.

Stages of Strategic Planning Process

· Identify Your Strategic Position

The first stage prepares you for the rest of the strategic planning process. To
achieve your goals, you must first have a clear vision. Start by defining both
your short-term and long-term objectives. In short, what do you hope to
achieve? Next, determine what steps you will take to accomplish these
objectives. When identifying your strategic position, remember that your goals
should be realistic and measurable. For help with this step, look back to your
mission statement, corporate values, and work culture.

· Gather People and Information

Once you have established your strategic position, you will want to bring in
the people who will be involved in the planning process. You will also want to
bring in as much up-to-date information to the table as possible. Ensure that
any data you use is accurate so that you make informed decisions backed up
by facts. Once you have people and information to draw from, examine any
internal or external issues that could possibly affect your objectives. It may be
useful to ask other people in your organization for their input, such as
employees, customers, or partners.

· Perform SWOT Analysis

SWOT, which is an acronym for strengths, weakness, opportunities, and

threats, acts as a powerful tool during the strategic planning process. A
SWOT analysis is often performed to help identify the strengths and
weaknesses of a business, as well as identify any opportunities and threats
that could arise. Once the team has identified all strengths, weaknesses,
opportunities and threats, you can work together to develop new goals that
will help your business face these possibilities in a more positive way. A
SWOT analysis can also lead you in the right direction and towards your
goals.

· Formulate a Strategic Plan

Once you have successfully identified your strategic position and have a set
of goals that align with your company’s mission, you can begin working on
your strategic plan. When developing your plan, consider which initiatives will
have the greatest impact on your business and which will help improve your
position the most. Also consider which initiatives are most urgent and put
these at the front of the line. To ensure that your strategic plan is working, you
will need to determine the best way to measure your progress. With
measurable goals you can visibly see improvements as they happen.

· Execute a Strategic Plan

Once you have your strategic plan in place, you are ready to implement it.
This step is the action phase of the strategic planning process. Start by
making everyone involved in the plan aware of your strategy. Ideally, you
want to distribute tasks among different individuals or departments to prevent
one person or group of people from becoming overwhelmed. Also take the
time to check back with these individuals or groups to ensure that you are
staying on track. If you find that you are not meeting your objectives, make
any necessary changes.
· Constantly Monitor Performance

Your strategic planning process will not be effective unless everyone is doing
their part. This requires you to constantly monitor and manage performance
and tweak any components that are not leading to satisfactory results. It is
also important to hold those involved in the strategic planning process
accountable for their assigned tasks. Know that it may be necessary to repeat
the strategic management process if any corrective actions you take are not
successful. Continue to collect new and relevant data to help with any future
strategic planning that may occur.

2. Tactical Plan

- Creates a blue print for the larger strategic plan

- Tactical plans describe the that the organization will implement its
strategic plan to achieve the objectives set in the strategic plan.

- It’s the responsibility of middle managers to set and oversee tactical

strategies, like planning and executing

- Tactical plans span a short time frame (usually less than 3 years) and
are usually developed by middle level managers.

- It details specific means or action plans to implement the strategic

plan by units within each division.

- Tactical plans entail detailing resource and work allocation among the
subunits within each division.

3. Operational Planning

- Operational plans encompass what needs to happen continually, on

a day-to-day basis, in order to execute tactical plans. Operational plans
could include work schedules, policies, rules, or regulations that set
standards for employees, as well as specific task assignments that
relate to goals within the tactical strategy, such as a protocol for
documenting and addressing work absences.

- Covers the entire organization’s goals & objectives and puts into
practices the way and action steps to achieve the strategic plans.

Operational plans can be:

Standing plans − Drawn to cover issues that managers face

repeatedly, e.g. policies, procedures, rules.

Ongoing plans − Prepared for single or exceptional situations or

problems and are normally discarded or replaced after one use, e.g.
programs, projects, and budgets.
Operational plans should contain:

1. Clear objectives of them

2. Activities to be delivered

3. Quality standards

4. Desired outcomes

5. Staffing and resource requirements

6. Implementation timetables

7. A process for monitoring progress

Contingency Plan

Contingency Plan wait in the wings in case of a crisis or unforeseen event.

Contingency plans cover a range of possible scenarios and appropriate
responses for issues varying from personnel planning to advanced
preparation for outside occurrences that could negatively impact the business.
Organization may have contingency plans for things like how to respond to a
natural disaster, malfunctioning software, or the sudden departure of a C-level
executive.

Conclusion

“It is no secret that most high-performance organizations have strong plans in

place - from strategic to contingency. And at a minimum, having these plans
will ensure that everyone in your organization is rowing in the same direction.

Also, organizational planning often has a positive impact on employees. A

company that takes planning seriously has higher job satisfaction because
organizational planning provides clear goals and objectives (short and long-
term).”

PLANNING IN NATIONAL AND LOCAL GOVERNMENT

RATIONALIZING LOCAL PLANNING SYSTEM
The planning function of local governments is embedded in the dual status of
local government units (LGU) as a political unit and as a corporate body. As a
body politic the LGU is a political subdivision of the national government. It is
endowed with powers to manage its territorial jurisdiction for and on behalf of
the national government. Being a subdivision of the national State, moreover,
local governments are envisioned to become effective partners of the national
government in the attainment of national goals. To carry out this mandate,
LGUs exercise their inherent powers such as police power, as well as share
with the national government the responsibility in the management and
maintenance of ecological balance in their respective territorial jurisdiction
(RA 7160, Sections 2a, 15, and 3i). As a body corporate the LGU represents
its residents, the inhabitants within its territory. It is likewise endowed with
powers and resources necessary for its efficient and effective governance and
to deliver basic services and facilities to enable its inhabitants to develop fully
into self-reliant communities. Being a corporate body, every LGU is mandated
to promote the general welfare among the inhabitants within its territorial
jurisdiction (RA 7160, Sections 2a, 15, 16 and 17).

Upon this dual personality and role of LGUs the local planning system is
established. The components of the local planning system include:
1) The organizational structure for planning and its functions,
2) The plan or plans that the planning structure is mandated to
produce,
3) The processes that the planning structure will follow to produce the
desired plan outputs, and
4) The authority levers or tools with which the LGU implements its
plans and programs. Each of these components is discussed in the
chapters that follow. Only brief descriptions are given in this General
Introduction.
Mandated Local Plans
The plan outputs that the local planning structure is mandated to produce are
of two types: the comprehensive land use plan and the comprehensive
development plan.
THE COMPREHENSIVE LAND USE PLAN
The CLUP is the plan for the management of local territories. Planning as
management of local territories is a function of the LGU pursuant to its status
as a political unit. Hence, the body principally responsible for the CLUP is no
less than the highest policy-making body, the legislative council or
Sanggunian. This is the reason why the adoption of the CLUP and its
enactment into a zoning ordinance are planning functions exercised
exclusively by the Sanggunian (RA 7160, Section 20c, 447, 458, 468). This
devolved function is being exercised by the Sanggunian on behalf of the
national State which is directed by the Constitution to “…regulate the
ownership, acquisition, use and disposition of property…” (Art. XIII, Sec. 1).
State regulation of land use also implies that there must be vertically
integrated physical framework plans from the national down to the municipal
level. The CLUP therefore must be consistent with its higher counterparts, the
PPFP, the RPFP and the NFPP, at the provincial, regional and national levels
respectively. Conversely, the LGU territory is the stage upon which national
policies and programs converge and find application on the ground.
Therefore, national government agencies (NGA) are required to coordinate or
consult with LGUs before undertaking their projects (RA 7160, Sections 26
and 27) within the local territorial jurisdiction.
In some cases, NGAs that have functional responsibility over certain portions
of LGU territory tend to exercise exclusive territorial powers over these areas
as well. This practice effectively prevents the LGU from exercising its powers
over those particular portions of its territory. And yet these “enclaves” are still
considered part of the LGU’s territorial jurisdiction. For one, the inhabitants of
such areas are regarded as residents and voters of the particular LGU.
Moreover, such NGA-held areas are included in the determination of the
LGU’s total land area as a basis for allocating its share in the internal revenue
allotment (IRA). Consistent with their status as partners in national
development, LGUs shall now share responsibility for managing the
environment and natural resources within their territorial jurisdiction (RA 7160,
Sec. 3i).
In a word, the CLUP is the long-term guide for the physical development of
the local area, the framework for the management and co-management of the
local territory. At the city and municipal levels, the CLUP serves more than a
framework plan. It is at this level where the CLUP is enacted into a zoning
ordinance (RA 7160, Sec. 20c) hence, it becomes a statutory plan whose
provisions are not merely indicative but are legally enforceable.
THE COMPREHENSIVE DEVELOPMENT PLAN
The CDP is the plan with which the LGU promotes the general welfare of its
inhabitants in its capacity as a corporate body. The responsibility for the CDP
is given to the LDC (RA 7160, Sec. 106 and 109). It must cover all the
development sectors to be comprehensive. (See Chapter 2 below.) Its time
frame may be multi-year but a short-term slice must be taken off which is
coterminous with the term of the elective local officials so that it can serve as
an input to their executive-legislative agenda (ELA).
The CDP consolidates the programs and projects necessary to carry out the
objectives of the different development sectors. Some of these programs and
projects are incorporated in the local development investment program (LDIP)
and are implemented through the annual investment program (AIP) and the
annual budget. Other programs may be picked up by the national government
and still others by the private sector for implementation.
The CDP, moreover, is the plan that the LGU prepares in its capacity as a
corporate body. By their involvement in the CDP process the inhabitants seek
to exercise autonomy as self-reliant communities. Therefore, there should be
no more need for higher authorities to review or approve the CDP. National
agencies with sectoral responsibilities should not impose their requirements
on LGUs as though the latter were their subordinates or clients. There should
be an end to the prevailing attitude of NGAs which has been developed from
decades of dependency relationships wherein LGUs were on the receiving
end of national government’s generosity or lack of it. Only by enabling them to
become self-reliant will LGUs become effective partners in national
development.
PARTICIPATORY PLANNING PROCESS
Up to this point in time planning has been consultant driven. It is the
consultant who usually does everything and when the plan output is handed
over to the LGU the latter is left not knowing what to do with it.
To benefit the most from consultants’ intervention, LGUs should require
consultants to enhance the capability of the local planning structure to perform
its planning function properly by itself. Technical inputs in the areas of data
generation, analysis and presentation should be given to the technical
component. The interpretation of the data and the explanations and
implications of information derived from the data should be undertaken
through a broad consultative and participatory process involving both political
and technical components of the planning structure and the general public.
The participation of the political component is critical at certain junctures of
the planning process when certain decisions have to be made before
proceeding to the next stage of the process.
DEVELOPMENT COUNCILS - MANDATES
(1) Formulate long-term, medium-term, and annual socioeconomic
development plans and policies;
(2) Formulate the medium-term and annual public investment programs;
(3) Appraise and prioritize socioeconomic development programs and
projects;
(4) Formulate local investment incentives to promote the inflow and direction
of private investment capital;
(5) Coordinate, monitor, and evaluate the implementation of development
programs and projects; and
(6) Perform such other functions as may be provided by law or competent
authority.
LOCAL DEVELOPMENT INVESTMENT PROGRAM (LDIP) 
The Local Development Investment Program is a program to allocate the
investible portion of the annual general fund budget for funding the
development programs, projects, and activities identified in the
Comprehensive Development Plan (CDP). The LDIP is coterminous with the
CDP. It has a time frame of three (3) years broken down into annual streams
of fund allocations of projects determined to be a high priority by the
incumbent officials in consultation with various stakeholders. A guide to public
spending, the LDIP is intended to result in increased socio-cultural well-being
of the residents as well as accelerate local economic development by eliciting
and orchestrating desired private sector investments.
ANNUAL INVESTMENT PROGRAM (AIP) 

The Annual Investment Program is the work and financial plan of the Local
Government Unit for the period of one year. It is imperative for LGUs to
prepare the Annual Investment Program as it is from which the LGU
administers and provides budgetary support to its Comprehensive
Development Plan (CDP) and Local Development Investment Program
(LDIP). It reflects our foresight on conquering these challenges and pursuing
development. This mandated document contains the
programs/projects/activities fitted for next year streamlined from a long master
list of projects that were generated through the tedious series of sectoral
planning workshops up to the grand plenary.

Also, the AIP highlights a review on the concept of the planning-budgeting

cycle which is a critical input in the annual budget. The Annual Budget shall
be prepared on the basis of the AIP. The AIP identifies projects and programs
to be appropriated in the Annual Budget and the projects and programs within
the AIP are the producers of the results in the LGU. These programs and
projects in the AIP shall be distributed in the following sectors – economic,
social, general, and other public services.

LOCAL DEVELOPMENT & PHYSICAL FRAMEWORK PLAN (LDPFP)

The LOCAL Development and Physical Framework Plan (LDPFP) is

formulated at the local level and merges the traditionally separate local
physical framework plan and provincial development plan to address the
disconnect between spatial and sectoral factors and between medium and
long-term concerns. It contains the long-term vision of the province, and
identifies development goals, strategies, objectives/targets and corresponding
PPAs which serve as primary inputs to provincial investment programming
and subsequent budgeting and plan implementation. (JMC No. 1 s. 2007)
LOCAL DEVELOPMENT INVESTMENT PROGRAM (LDIP)
Local Development Investment Program composed of various multi-year
projects. The LDIP is the basis of the LGU’s Annual Investment Plan (AIP).
AIP on the other hand is the basis of the annual budget. Programs, projects
and activities not budgeted are seldom implemented
BUDGETTING (LGU)
Budget preparation is the first phase of the local budget process. It involves
cost estimation per PPA, preparation of budget proposals, executive review of
budget proposals, and preparation of the LEP and the Budget Message. This
phase starts with the issuance of the Budget Call, and ends with submission
of the Executive Budget to the Sanggunian on or before October 16 of each
year.
PLAN-BUDGET LINKAGE
Each local government unit shall have a comprehensive multi-sectoral
development plan to be initiated by its development council and approved by
its sanggunian. For this purpose, the development council at the provincial,
city, municipal or barangay level, shall assist the corresponding sanggunian in
setting the direction of economic and social development, and coordinating
development efforts within its territorial jurisdiction (Section 106, RA No.
7160).
The provincial, city and municipal development councils shall, among others:
(1) formulate long-term, medium-term and annual socio-economic
development plans and policies; and (2) formulate the mediumterm and
annual public investment programs (Section 109, RA No. 7160).
Local budget, plans and goals shall, as far as practicable, be harmonized with
national development plans, goals and strategies in order to optimize the
utilization of resources and to avoid duplication in the use of fiscal and
physical resources (Section 305 [h], RA No. 7160).
Local budgets shall operationalize approved local development plans (Section
305 [i], RA No. 7160).
Local Development Councils shall submit to the local finance committee a
copy of the local development plan and annual investment program prepared
and approved during the fiscal year before the calendar for budget
preparation in accordance with applicable laws, specifying therein projects
proposed for inclusion in the local government budget as well as in the
budgets of National Government Agencies (NGAs) or GovernmentOwned or –
Controlled Corporations (GOCCs) concerned.
The local finance committee shall use the plan to ensure that projects
proposed for local funding are included in the budget.
NGAs and GOCCs shall provide LGUs all necessary information on projects
already funded in their respective budgets. Such information shall include
specifically, among other things: name of project, location, sources, and levels
of funding for said projects. The same information must be made available to
the local finance committee concerned within the first quarter of the year to
avoid duplications in funding project proposals (Article 410, Implementing
Rules and Regulations [IRR], RA No. 7160).
Harmonizing Plans and Policies
RA No. 7160 explicitly requires all LGUs to have a multi-sectoral development
plan, which shall be translated into programs, projects and activities (PPAs)
through investment programs.
To operationalize the aforementioned requirement of the law, the existing
planning manuals issued by the Department of the Interior and Local
Government (DILG) and National Economic and Development Authority
(NEDA) require the LGUs to prepare the following:
For provinces and highly-urbanized cities:
The PDPFP is a document that identifies strategies and corresponding PPAs
that serve as primary inputs to the provincial investment programming
process. The PDPFP also serves as a key vertical influence in linking
provincial development objectives with local, regional and national policies
and priorities.
Provincial Development Investment Program (PDIP). The PDIP is a basic
document linking the local development plan to the budget for provinces. It
contains a prioritized list of PPAs which are derived from the Provincial
Development and Physical Framework Plan (PDPFP) matched with financing
resources, and to be implemented within a three to six-year period
For component cities and municipalities:
The CDP is the multi-sectoral plan formulated at the city or municipal level,
which embodies the vision, sectoral goals, objectives, development strategies
and policies within the terms of LGU officials and the medium-term. The CDP
contains: (1) Ecological Profile; (2) Sectoral Development Plan; and (3)
Implementing instruments.
The LDIP is a basic document linking the local development plan to the
budget for cities and municipalities. It contains a prioritized list of PPAs which
are derived from the CDP matched with financing resources, and to be
implemented within a three to six-year period. The LDIP is the principal
document for implementing the CDP. It translates the CDP into PPAs, and
reflects those which shall be prioritized by the LGU for funding in the general
fund budgets or through other fund generation schemes.
For Provinces, Cities and Municipalities
The AIP refers to the annual slice of the Provincial/Local Development
Investment Program, which constitutes the total resource requirements for all
PPAs, i.e., the annual capital expenditure and regular operating requirements
of the LGU.
As also provided under RA No. 7160, the foregoing plans and investment
programs should be harmonized with the plans and investment programs of
higher level LGUs, as well as that of the national government, to optimize the
utilization of resources and to avoid duplication in the use of fiscal and
physical resources.
Moreover, in formulating the investment programs, policies of both the
executive and legislative departments should also be considered.
The processes for formulating the foregoing development plans and
investment programs are detailed under the CDP Guide and Concise
Illustrative Guide for the Preparation, Review, Monitoring and Updating of the
CDP and LDIP issued by the DILG, and in the Manual for Provincial/Local
Planning and Expenditure Management issued by the NEDA.
THE PHILIPPINE DEVELOPMENT PLAN (PDP) 2017-2022
The Philippine Development Plan (PDP) 2017-2022 reinforces the Philippine
Competition Act (PCA) through strategies that aim to foster an environment
that penalizes anti-competitive practices, facilitates entry of players, supports
regulatory reforms, and improves trade policies to stimulate investments and
innovation and boost competitiveness. As the country reels from the economic
consequences of the COVID-19 pandemic, there is a need to refocus the
government’s strategies and interventions towards a healthy and resilient
Philippines. 
The Philippine Development Plan (PDP) 2017-2022 is the first medium-term
plan anchored on the AmBisyonNatin2040, consistent with Executive Order
No. 5, S. 2016.  The priorities are guided by the Duterte Administration’s 0
to10-point Socioeconomic Agenda, the regional consultations conducted by
the various planning committees, and the social development summits that
culminated in the 20@22 Agenda: Malasakit at Pagbabago.
The goal of the PDP 2017-2022 is to enable Filipinos to attain a matatag,
maginhawa at panatag na buhay. It acknowledges the accomplishments of
the previous administrations, adopts the good practices and carefully
considers the lessons gleaned from these experiences.
AmBisyon NATIN 2040
AmBisyon Natin 2040 represents the collective long-term vision and
aspirations of the Filipino people for themselves and for the country in the
next 25 years. It describes the kind of life that people want to live, and how
the country will be by 2040. As such, it is an anchor for development planning
across at least four administrations.
AmBisyon Natin 2040 is a picture of the future, a set of life goals and goals for
the country. It is different from a plan, which defines the strategies to achieve
the goals. It is like a destination that answers the question “Where do we want
to be?”. A plan describes the way to get to the destination; AmBisyon Natin
2040 is the vision that guides the future and is the anchor of the country’s
plans.
AmBisyon Natin 2040 is the result of a long-term visioning process that began
in 2015. More than 300 citizens participated in focus group discussions and
close to 10,000 answered the national survey. Technical studies were
prepared to identify strategic options for realizing the vision articulated by
citizens. The exercise benefitted from the guidance of an Advisory Committee
composed of government, private sector, academe, and civil society.
The Life of All Filipinos in 2040:
Matatag, Maginhawa at Panatag na Buhay
By 2040, Filipinos enjoy a strongly rooted, comfortable, and secure life.

In 2040, we will all enjoy a stable and comfortable lifestyle, secure in the
knowledge that we have enough for our daily needs and unexpected
expenses, that we can plan and prepare for our own and our children’s
future. Our family lives together in a place of our own, and we have the
freedom to go where we desire, protected and enabled by a clean,
efficient, and fair government.

REALIZING AMBISYON NATIN 2040

All sectors of society, whether public or private, should direct their efforts
towards creating opportunities for Filipinos to enjoy a matatag, maginhawa at
panatag na buhay. Government, in particular, must use its tools of fiscal,
monetary and regulatory policies to steer the development path towards
enabling Filipinos to attain their AmBisyon. This pertains to all dimensions of
development: economic, human and physical capital, institutional, social and
cultural.
By 2040, the Philippines is a prosperous middle-class society where no one is
poor. People live long and healthy lives and are smart and innovative. The
country is a high-trust society where families thrive in vibrant, culturally
diverse, and resilient communities.
Government must also ensure that economic growth is broad-based across
sectors and regions; it must result in a more equal income distribution.
Moreover, there should be aggressive interventions to increase opportunities
for the poor to participate in the growth process even as they are protected
against the negative impact of economic and political instabilities, natural and
man-made calamities. Poverty must be eradicated by 2040, if not earlier.
It must also be recognized that certain individuals cannot immediately
participate in the growth process. For infants and children, there is the
requisite care, guidance, health, and education services until they become
mature enough. It is important that parents and families should be able to
provide these, although government should stand ready to fill the gap. A
major intervention, therefore, is for parents to adequately prepare for having a
family.

SUMMARY

The planning process of the Philippine Government, from the National Offices,
National Government Agencies, up to the Local Governments, follows a
systematic and organized process. In governmental perspective, same
theories in Management are also applied. For example, Henry Fayol’s 14
Principles of Management, Management Functions, Theory of Bureaucracy of
Max Weber, among others.

The national government prepares the national development agenda through

the Philippine Development Plan (PDP), which serves as the basis for the
local governments, including the cities, provinces, municipalities, and
barangays, on the development of their local development plans. These local
development plans are handled by local development councils/committees
and these plans are basis of the budgeting system of each local government.

The flow from the Philippine Development Plan, to local Comprehensive

Development Plans, to Local Development Investment Plan, to Annual
Investment Plan, to Local Budgeting, is the very foundation of every service
that both the national and local government are delivering to the Filipino
people. All of the programs, projects, and activities of the national and local
government are being budgeted based on the approved short-term and long-
term plans.
 WHAT IS ORGANIZING?

ABDULLAH, NORHUSSIEN O.
It is the establishment of effective authority relationships among
selected work, persons and work places in order for the group to work
together efficiently. Or the process of dividing work into sections and
departments.

It is the second key management function, after planning, which

coordinates human efforts, arranges resources and incorporates the two in
such a way which helps in the achievement of objectives. It involves deciding
the ways and means with which the plans can be implemented.

It entails defining jobs and working relationships, assigning different tasks

associated with the plans, arranging and allocating resources, design a
structure which distinguishes duties, responsibilities and authorities,
scheduling activities, in order to maintain smoothness and effectiveness in
operations.
Characteristics of Organizing
 Organizing has the following characteristics:

 Division of Labour: Work is assigned to the employee who is specialised in

that work.
 Coordination: Different members of the organization are given different tasks
to perform when all the tasks are put together logically and sequentially, it
results in the objectives, so coordination is required.
 Objectives: Objectives need to be specifically defined.
 Authority-Responsibility Structure: For an effective authority responsibility
structure, the position of each manager and executive is specified, as per the
degree of the authority and responsibility assigned to them, while performing
the duties.
 Communication: The techniques, flow and importance of communication
must be known to all the members.
 Process of Organizing

Organizing is the core function which binds all the activities and resources
together in a systematic and logical sequence. It encompasses a number of
steps which are pursued to achieve organizational goals. Now, we will discuss
those steps in detail:

1. Identification and division of work: Organizing process begins with

identifying the work and dividing them as per the plans. Basically, the work is
classified into different manageable activities, to avoid redundancy, and
sharing of work is encouraged.
2. Departmentalization: After classifying the work into different activities, the
activities having a similar nature are grouped together. This process is called
as departmentalization which facilitates specialization and forms the basis for
creating departments.
3. Assignment of the task: After the formation of departments, employees are
placed in different departments under a manager, called as a departmental
manager. Thereafter, employees are assigned the jobs as per their skills,
qualifications and competencies. For the effectiveness of the performance,
the manager must ensure that there is a proper match between the job and
the incumbent, i.e. the right person has to be placed at the right job.
4. Establishment of organizational hierarchy: Deployment of work is not all,
the employees must be aware of whom they have to report and who can give
them orders. Hence, work relationships need to be established clearly, which
helps in the creation of a hierarchical structure of the organization.
5. Provision of resources to the members: Arrangement and deployment of
resources such as money, materials, supplies, and machine, etc. which are
important to carry out day to day operations of the organization.
6. Coordination of efforts and scheduling of activities: The final step to this
process is the coordination of efforts and scheduling the activities in a logical
and systematic manner so that the common objectives can be achieved
effectively.
Importance of Organizing

Organizing is integral to management as it facilitates the smooth functioning

of the enterprise. The importance of organizing is as under:

 Advantage of Specialization: Organizing helps in the classification of jobs

systematically amongst the workforce, which helps in the reduction of
workload, as well as improved productivity. This is because the organization
will get the benefit of specialization wherein workers will perform specific work
on a regular basis, according to their competency.
 Describes work relationships: The definition of work relationships describes
the flow of communication and determine the superior-subordinate
relationship. This removes confusion and chaos, in getting orders and
instructions.
 Effective utilization of resources: Organizing function ensures the best
possible utilization of resources whether it is human, material, financial or
technical. This is because jobs are assigned to the employees which avoid
overlapping and duplication of work.
 Adaptation to change: Organizing process helps the organization to survive
and adapt the changes, by making substantial changes in the strategies,
hierarchy, relationships, etc.
 Development of personnel: Organising encourages creativity in executives.
Delegation of authority reduce their workload and they get time to identify new
methods to perform the work. It also enables them to explore new areas for
their growth and development.

STAFFING AND ITS APPLICATION PROCESSES IN

OUR GOVERNMENT

JHONAIMA M. ALI
Staffing Function of Management

The managerial function of staffing involves manning the organization

structure through proper and effective selection, appraisal and development of
the personnel to fill the roles assigned to the employers/workforce.
According to Theo Haimann, “Staffing pertains to recruitment, selection,
development and compensation of subordinates.”
Nature of Staffing Function

1. Staffing is an important managerial function- Staffing function is the

most important managerial act along with planning, organizing,
directing and controlling. The operations of these four functions depend
upon the manpower which is available through staffing function.
2. Staffing is a pervasive activity- As staffing function is carried out by
all mangers and in all types of concerns where business activities are
carried out.
3. Staffing is a continuous activity- This is because staffing function
continues throughout the life of an organization due to the transfers
and promotions that take place.
4. The basis of staffing function is efficient management of
personnel- Human resources can be efficiently managed by a system
or proper procedure, that is, recruitment, selection, placement, training
and development, providing remuneration, etc.
5. Staffing helps in placing right men at the right job. It can be done
effectively through proper recruitment procedures and then finally
selecting the most suitable candidate as per the job requirements.
6. Staffing is performed by all managers depending upon the nature of
business, size of the company, qualifications and skills of managers,
etc. In small companies, the top management generally performs this
function. In medium and small scale enterprise, it is performed
especially by the personnel department of that concern.

Staffing Process - Steps involved in Staffing

1. Manpower requirements- The very first step in staffing is to plan the

manpower inventory required by a concern in order to match them with
the job requirements and demands. Therefore, it involves forecasting
and determining the future manpower needs of the concern.
2. Recruitment- Once the requirements are notified, the concern invites
and solicits applications according to the invitations made to the
desirable candidates.
3. Selection- This is the screening step of staffing in which the solicited
applications are screened out and suitable candidates are appointed as
per the requirements.
4. Orientation and Placement- Once screening takes place, the
appointed candidates are made familiar to the work units and work
environment through the orientation programs and placement takes
place by putting right man on the right job.

Principles & Policies for Managing Human Resources

Staffing Methods

Policy
Selection of a staffing method to fill a position must uphold the staffing
principles and the public interest.

An opportunity analysis must be conducted to identify the appropriate staffing

method for a specific position or vacancy.

1. Review and if required update the position description. This is an

opportunity to assess the needs of the organization, define the duties
and responsibilities to be assigned to the position and the qualifications
required to perform the work. Where there have been significant
changes to the duties and responsibilities, the Compensation Services
Branch must conduct a job evaluation to ensure the classification
remains appropriate.

2. Develop the selection criteria. The selection criteria must reflect the
bona fide occupational requirements to ensure that work is performed
safely, efficiently and effectively.

3. Give first consideration for filling the position to individuals on the

priority placement lists. Note: The following may not include all priority
placement lists to be considered.

a. Re-Employment and Employment Availability: The Civil

Service Act, Conditions of Employment Regulation and most
collective agreements require that employees on the re-
employment list (having been subject to lay-off or premature end
of term within the previous 24 months), and employment
availability lists (having been rejected on probation after
appointment to a position in a different department within the
previous year) be given first consideration for vacant positions in
the civil service.

b. Medical Accommodation: As an employer, the Manitoba

government has a legislated requirement to accommodate
employees who are medically unable to perform the full duties of
their position. 
When a vacancy occurs, consult with the Supportive Employment
Consultant to determine whether there are employees requiring
an accommodation that are suitable for the vacant position.

4. If an eligibility list was established and is still within the established

timeframe, hire from the established eligibility list.

Candidates are taken off the list in their rank order as

established by the competition. Sometimes candidates are
ranked by their preference for geographical location. Candidates
on the eligibility list are not notified of their ranking.
 5. Determine how the staffing method will support the Manitoba
government Diversity and Inclusion Strategy and related department plan.

6. Analyze the internal and external labour market for the position and
establish an area of search that will yield applicants from the target
audience. Develop a recruitment strategy that will attract those potential
applicants to apply.

7. Considering the results of the opportunity analysis, the staffing

principles of merit, fairness and equity, as well as employee development
and the public interest, select a staffing method from among the options
described in following sections.

Competitive Appointment

Positions in the Manitoba government in most cases are filled through

competitive appointment. A competitive appointment is based on a
competitive examination of one or more candidates and includes subsequent
or alternate appointment(s) from a competition or eligibility list.

There are three types of competitions: open, closed, and internal.

 Open competitions have the broadest area of search and are

used when it is in the public interest to seek applications from
the public. An open competition may also involve selecting from
applicants from an inventory.
 Closed competitions are restricted to regular, term and
departmental employees. They are used when experience in
government is considered essential to effective performance in
the position and/or the position provides a career development
opportunity for current employees.
 Internal competitions are restricted to employees from a
specific department or work area. They are used when the
required skills can only be gained from specific experience in
government and/or the position provides a career development
opportunity for current employees. Internal competitions may be
used where a vacant position is unavailable and outcome of the
competition is to reclassify or second the successful candidate.

A recruitment strategy may also be developed to deliberately seek candidates

who may not meet the full working level. In those situations the selection
board must consider the appropriate modifications to the selection criteria,
classification, and advertise the developmental opportunity accordingly.

A competition may be held to establish an eligibility list. An eligibility list is a

ranked listing of qualified candidates for a particular type of employment or job
classification. The job opportunity advertisement must state the intent to
establish an eligibility list as well as the duration that the eligibility list will be
used. The job opportunity advertisement must also state if the eligibility list is
being created to fill vacancies in specific geographical locations. Eligibility lists
are useful in several situations:

 when significant turnover occurs in a classification,

 when multiple vacancies exist for the same classification,
 when future vacancies are anticipated.

The duration of an eligibility list can be for a period up to twelve months. If an

eligibility list was established for a six month period, it can be extended to
twelve months if necessary.  (Refer to Administrative Process for Eligibility
Lists)

Temporary Appointments
Temporary appointments may use direct or competitive appointment
processes. Temporary appointment types include:

o Acting Status
Acting status is the temporary assignment of an employee to the
full duties of another position with a higher maximum rate of pay.
When acting status is revoked, the employee returns to his/her
original position and rate of pay. 

o Interchange 
Interchange is the temporary assignment of regular employees
within their staff year to work in another level of government.
Interchanges are possible with the Government of Canada,
another province, municipality or other public sector
organization. 

o Secondment
Secondment is the temporary assignment of an employee within
their staff year to another branch, department or agency of the
Manitoba government or a crown corporation.

o Interim Reclassification
Interim Reclassification is the temporary (for a limited and
specific period of time) reclassification of a position when there
is a significant change to an employee’s position and the
additional duties are at a higher level.

o Casual
Casual employment means employment

in which the employee normally works less than the full normal daily,
weekly or monthly hours of work, as the case may be, and whose work
schedule is irregular or non-recurring, or does not follow an ongoing,
predetermined schedule of work on a regular and recurring basis, or
 in which an individual is engaged on the authorization of the Commission
to perform work in order to prevent stoppage of public business or loss or
serious inconvenience to the public.

Should a casual appointment be required for the staffing of urgent, temporary

work assignments that are clerical in nature, the hiring manager must contact
the Human Resource Director or Manager and request clerical placement.
Duration of a casual appointment is restricted to a period of no longer than the
equivalent of two (2) consecutive bi-weekly pay periods. If deemed
appropriate, the Human Resource Director or Manager will proceed with the
request.

Direct Appointment
Positions in the civil service may be filled by direct appointment under specific
conditions. The candidate’s qualifications are assessed against the selection
criteria established for the position. A written rationale, authorized by the
appropriate employing authority, is required for all direct appointments and
should reference why the direct appointment is warranted including any
impact on other employees. A direct appointment must then be authorized by
a delegated staffing officer.

Administrative Appointment
Positions may also be filled by administrative appointment under specific. An
administrative appointment may occur when there is a requirement for
employee reassignment or changes of an administrative nature. A written
rationale authorized by a delegated staffing officer is also required.

Roles and Responsibilities

Civil Service Commission

 Monitor application of the policy through the staffing audit

process.
 Answer questions concerning the interpretation, application and
administration of the policy.

Delegated Staffing Authority

 Consider the needs of the organization, the staffing principles of

merit, fairness and equity, as well as employee development
and the public interest when approving the staffing method and
competition type.

Hiring Managers

 In consultation with a Human Resource Practitioner, conduct an

opportunity analysis, and develop an appropriate recruitment
strategy in accordance with the policy.
  Consider the needs of the organization, the staffing principles of
merit, fairness and equity, as well as employee development
and the public interest when recommending a staffing method.

DIRECTING
Katherine E. Aglibot

 The process or technique of instructing, guiding, inspiring, counseling,

supervising, and leading people towards the achievement of
organizational goals is referred to as directing.
 It is a continuous managerial process that occurs throughout the
organization's lifespan.
  Directing is said to be the heart of management process.  Planning,
organizing, and staffing are of no importance if the direction function is
not carried out or does not take place.
 Directing is a key element in the process of management. After
formulating the plans for accomplishing the pre-determined goals, the
organizational structure is prepared and suitable persons are
designated to appropriate roles, and the organization commences its
operations. However, necessary actions will only initiate after a
command in chief provides direction to the higher-level management.
In the government setting in the Philippines, the president is the Chief
Executive of the country.

Main characteristics of Directing are as follows:

1. Initiates Action

A directing function is performed by the managers along with planning, staffing,

organizing and controlling in order to discharge their duties in the organization.
While other functions prepare a platform for action, directing initiates action.
Government: In the government setting, it is the executive which
undertakes the task of policy-making and developmental planning. These are
the two most important functions of the executive, because by these the state
carries out its objective of promoting the welfare of its people.
2. Pervasive Function

Directing takes place at every level of the organization. Wherever there is a

superior-subordinate relationship, directing exists as every manager provides
guidance and inspiration to his subordinates.
Government: The President of the Philippines has the mandate of control
over all the executive departments, bureaus, and offices. This includes
restructuring, reconfiguring, and appointments of their respective officials. The
Administrative Code also provides for the President to be responsible for the
abovementioned offices’ strict implementation of laws.
3. Continuous Activity

It is a continuous function as it continues throughout the life of organization

irrespective of the changes in the managers or employees.
4. Descending Order of Hierarchy

Directing flows from a top level of management to the bottom level. Every

manager exercises this function on his immediate subordinate.

Government:

Modeled after the American system, the Philippine national

government has an executive branch and president, a bicameral legislature
with a House of Representatives and a Senate, and a judicial branch with the
Philippine Supreme Court presiding over the federal court system. The
President of the Philippines, as chief executive, has the mandate to supervise
local governments in the PhilippinesThe President of the Philippines has the
mandate of control over all the executive departments, bureaus, and offices.

5. Human Factor

Since all employees are different and behave differently in different situations, it
becomes important for the managers to tackle the situations appropriately.
Thus, directing is a significant function that gets the work done by the
employees and increases the growth of the organization.

Direction as a function is composed of 4 important and interdependent

elements:
Supervision refers to a process by which a superior oversees and ensures
the work done by his subordinates conform to predetermined requirements
and standards. Supervision is done especially at lower levels of management
when there are functions such as Factory Overseeing etc to be done.
Motivation is that process of inducing in a person the will to do something in
return for something he wants. Motivation often lies at the basis of direction as
people do not act unless they have a good reason to and motivation gives
them that much required reason.
Not everyone can do everything in the beginning. Sometimes you need an
extra push to do it. That extra push is often given by leaders.
Leadership plays a key role in performing the above mentioned elements of
direction. It revolves the personal quality of a person and is something that
cannot be taught but learnt.
Communication is something that is pertinent to most managerial functions
including direction. If the employee is not able to communicate his needs, a
manager cannot motivate him. If the upper level management doesn’t
communicate the current status of operations the lower level manager will fail
in getting his things sorted. The importance of communication cannot be
overstated
IMPORTANCE OF DIRECTING
Plans remain mere plans unless they are put into action. In the absence of
direction, subordinates will have no idea as to what to do. They will probably
not be inspired to complete the job satisfactorily. Implementation of plans is,
thus, largely the concern of directing function. As a function of management,
directing is useful in many ways.
• It guides and helps the subordinates to complete the given task properly and
as per schedule.
• It provides the necessary motivation to subordinates to complete the work
satisfactorily and strive to do those best.
• It helps in maintaining discipline and rewarding those who do well.
• Directing involves supervision, which is essential to make sure that work is
performed according to the orders and instructions.
• Different people perform different activities in the organization. All the
activities are interrelated. In order to co-ordinate the activities carried out in
different parts and to ensure that they are performed well, directing is
important. It thus, helps to integrate the various activities and so also the
individual goals with organizational goals.
• Directing involves leadership that essentially helps in creating appropriate
work environment and build up team spirit.

CONTROLLING AND ITS APPLICATION PROCESSES

IN OUR GOVERNMENT
BALLENTOS, CHRISTIAN WARREL P.
CONTROLLING
LEARNING OUTCOMES:
 EXPLAIN the nature and importance of control
 DESCRIBE the three steps in the control process
 EXPLAIN how organizational performance measured
 DESCRIBE tools used to measure organization
  PERFORMANCE
 DISCUSS contemporary issues in control

CONTROLLING – Management function that involves monitoring, comparing,

and correcting work performance
According to Koontz, O’Donnell and Weihrich “Controlling is the
measurement and correction of the performance of activities of subordinates
in order to make sure that enterprise objectives and the plans devised to
attain them are being accomplish” (p. 721)

ORGNIZATION

CONTROL

CORRECTIVE ACTION

If the organization have a good planning, there should be also a good

implementation.
All managers should control even if their organization/units are perform
as planned. Because they cannot really know unless they evaluate what
activities have been done and compared actual performance against the
desired standards.

PURPOSE OF CONTROLLING
 To ensure the activities are completed in ways that lead to the
accomplishment of organization goals.
 Value of the control function can be seen in three specific areas:
planning, empowering employees, and protecting the workplace.
IMPORTANCE OF CONTROL
As the final link in management functions:
 Planning – Controls let managers know whether their goals and plans
are on target and what future actions to take.

Compare the
results with the
Plan

 Empowering employees – Control systems provide managers with

information and feedback on employee performance. The employee
will know the flaws of the strategy, it makes the employee more
motivated.
 Protecting the workplace – Controls enhance physical security and
help minimize workplace disruptions. It can also be compare to a
disciplinary actions on how you can control your employees towards a
good behavior.

CONTROL PROCESS
 A three-step process of measuring actual performance, comparing
actual performance against a standard, and taking managerial
action to correct deviation or inadequate standards.
STEP 1: Measuring Performance

 Control Criteria (What)

 Employees
 Satisfaction
 Turnover
 Absenteeism
 Budgets
o Cost
o Output
o Sales

 Source of Information (How)

 Personal observation
 Statistical reports
 Oral reports
 Written report
SOURCE OF INFORMATION FOR MEASURING PERFORMANCE

STEP 2: COMPARING ACTUAL PERFORMANCE AGAINST THE

STANDARD
 Determining the degree of variation between actual performance and
the standard.
 Range of variation – the acceptable parameters of variance between
actual performance and the standard. It should be an acceptable
range.

STEP 3: TAKING MANAGERIAL ACTION

CORRECT ACTUAL PERFORMANCE
 Immediate corrective action: Corrective action that corrects problems
at once to get performance back on track
 Basic corrective action: Corrective action that looks at how and why
performance deviated before correcting the source of deviation.
REVISE THE STANDARD
It is possible that the variance was a result of an unrealistic standard-
too low or too high a goal. It is natural to blame the goal when an employee or
a team fall short.

CONTROLLING FOR ORGANIZATIONAL AND EMPLOYEE

PERFORMANCE
ORGANIZATIONAL PERFORMANCE
 The accumulated results of all the organization’s work activities.
 It is multifaceted concept, but managers need to understand the factors
that contribute to organizational performance.
MEASURES OF ORGANIZATIONAL PERFORMANCE
1. Productivity – the amount of goods or services produced divided by
the inputs needed to generate the output.
2. Organizational effectiveness – a measure of how appropriate
organizational goals are and how well those goals are being met.
3. Industry & Company Rankings – Rankings are a popular way to
measure organization’s performance. Rankings are determined by
specific performance measures and create an equal platform for other
comparable companies.

CONTROLLING FOR EMPLOYEE PERFORMANCE

 Delivering effective performance feedback
So we like to know how we are doing. Managers need to provide
their employees with feedback so that employees know where
they stand in terms of their work.
 Using disciplinary actions
o Actions taken by a manager to enforce the organization’s work
standards and regulations
o Progressive disciplinary action: An approach to ensure that the
minimum penalty appropriate to the offense is imposed
TYPES OF CONTROL
Feed forward control – control that takes place before a work activity is done.
(Before)
Concurrent control – control that takes place while a work activity is in
progress. (During)
 Management by walking around – a term used to describe when a
manager is out in the work area interacting directly with employees.
Feedback control – control that takes place after a work activity is done.
(After)
TOOLS FOR MEASURING PERFORMANCE

FINANCIAL CONTROL
 Traditional Controls
o Ratio analysis
 Liquidity
 Leverage
 Activity
 Profitability
 Budget Analysis
o Quantitative standards
o Deviations
INFORMATION CONTROLS
 Management information system (MIS) – a system used to provide
management with needed information on a regular basis.
o Data – an unorganized collection of raw, unanalyzed facts (e.g.,
an unsorted list of customer names).
o Information – data that has been analyzed and organized such
that it has values and relevance to managers.

BALANCED SCOREDCARD
 Balanced scorecard – a performance measurement tool that
examines more than just the financial perspective.
o Measures a company’s performance in four areas:
 Financial
 Customer
 Internal processes
 People/innovation/growth assets

BENCHMARKING OF BEST PRACTICES

 Benchmarking – the search for the best practices among competitors
or non-competitors that lead to their superior performance.
 Benchmark – the standard of excellence to measure and compare
against.

CONTEMPORARY ISSUES IN CONTROL

Cross-cultural differences: Adjusting control for cross-cultural differences

may be needed primarily in the areas of measuring and taking corrective
action. Organization should clearly communicate to managers employees how
to approach and respond to routine and non-routine situations within and
outside the home country.
Workplace privacy: Employees who use the internet and social media for
personal use are not entitled to privacy. Organizations need to establish clear
policies that outline the differences between proper and improper use and
consequences for using technology inappropriately.
Employee theft: It causes the organization for serious monitoring theft and
the consequences for committing effects should be explain to employees.
Workplace violence: Organizations need to develop emergency plans for
responding to incidents of violence that include protecting the safety of the
employees and customers.
Customer interactions: Control is important to consumer interruptions
because employee service productivity and service quality influences
customer perceptions of service value. Organization want long-term and
mutually beneficial relationships among their employees and customers.
Corporate governance: It is a system used to govern a corporation so that
the interest of the corporate owners are protected. A board of directors look
out for the interest of shareholders.
 BUREAUCRATIC THEORY
LEVIGIL CONA

Bureaucratic Theory was developed by a German Sociologist and political

economist Max Weber(1864-1920).
According to him, bureaucracy is the most efficient form of organization. The
organization has a well- defined line of authority. It has clear rules and
regulations which are strictly followed.

2 parts to Weber’s Bureaucratic Theory:

1. A clear organizational hierarchy

An organizational hierarchy defines how people are structured and fit within
an organization. For example, a typical company will have the CEO at the top
of the hierarchy, followed by the executive board. Each board member will
then be responsible for managers, who in turn will manage employees.

2. Clear rules for decision making

Weber referred to this as rational-legal decision-making rules. This means
that there should be a set of explicit rules and procedures defining how the
organization functions, and that these rules should be consistent with the
rules and laws of wider society.

Characteristics of a Bureaucracy
Weber identified six characteristics of bureaucracy. These are shown in the
diagram below:
1. Hierarchical Management Structure
• One of the hallmarks of a bureaucracy is a hierarchical management
structure. In a hierarchy, each level within the organizational structure
controls the level below but is controlled by the level above.
• Power and authority are clearly and explicitly defined for each position
within the hierarchy. Job responsibilities and duties are also clearly
defined for each position.

2. Division of Labor
• Division of labor means that tasks are divided between the employees
of the organization. Each employee will be responsible for specific
tasks and each department will be responsible for specific functional
areas.

3. Formal Selection Process

• All employees are treated equally and are hired and promoted on the
basis of qualifications, expertise, performance, and experience. There
are formal rules and regulations to ensure this selection process isn’t
abused. For example, your manager can’t hire someone simply
because they’re friends from the golf club.

4. Career Orientation
• The organization is career orientated, meaning that if you follow the
rules and regulations and perform well you will not be arbitrarily fired. In
fact, if you perform well you may even have the chance to be promoted
or receive a pay rise. In this way, the organization offers each
 employee the opportunity for a long term career, provided they follow
the rules and perform well.

5. Formal Rules and Regulations

• There are rules in place that govern how all employees should behave.
Managers cannot simply appraise their employees according to their
whims. Instead, they must assess employees according to the rules.
For example, if you’ve been set a target to make 10 widgets and you
make 10 widgets then you’ve achieved your target. Your manager can’t
simply decide retrospectively that you should have really made 15
widgets and then fire you for not making 15 widgets. The rules protect
employees against this type of behavior.

6. Impersonality
• The rules are well defined and clear and are applied in the same way
to everyone. The rules are there to prevent favoritism or nepotism.

Advantages of Bureaucratic Theory

There are a number of advantages of bureaucracy including:

1. Efficiency
• Within the hierarchy, everyone has a specific job to perform. This clear
delineation of responsibility and specialization can lead to greater
efficiency.

2. Predictability
• Having a hierarchy, rules and procedures enable large organizations to
cope with highly complex tasks. It’s almost impossible to imagine how
something as complicated as a manned spacecraft could be
constructed and sent into space successfully within an organization
with no rules or hierarchy.

Limitations of Bureaucratic Theory

1. Inflexibility
• While the hierarchy and rules are there to encourage efficiency they
can be very slow to adapt to new situations or information.
2. Empire Building
• It is not uncommon for people climbing through the hierarchy to try and
maximize their power by having the biggest team possible for purposes
of self-promotion or appearing powerful and important.
3. Red Tape
• Bureaucracies are often associated with excessive red tape, whereby
excessive structure, rules, and processes slow tasks down and lead to
frustration for the people trying to get things done to the best of their
ability.
MANAGEMENT APPROACHES
 SCIENTIFIC MANAGEMENT

Von Vergel M. Cubilo

The origin of the term scientific management can be traced to Charles
Babbage, who discussed the principles of scientific management in his book.
“The Economy of Manufacturers” published in 1832. But the person, who
popularised scientific management movement and made it universally
acceptable, is Dr. F.W Taylor He is called as “Father of Scientific
Management’.

Dr. Frederick Winslow Taylor was born in 1856 in Philadelphia, U.S.A. He

belonged to a middle class family. He started his career as a small apprentice
in the machine-making shop. From the small apprentice he rose to the
position of chief engineer in Midvale Steel Works in 1884. He worked almost
at every position before becoming the chief engineer.

Management was mostly dependent for the successful performance of the

work on the skill of the workers. There was deliberate restriction of output
which Taylor called ‘systematic soldering on the part of the workers.

This state of affairs forced and encouraged him to improve the then existing
practices of management. “He aimed at making management a science
based on “well recognized, clearly defined and fixed principles, instead of
depending on more or less hazy ideas”. He carried out many experiments for
finding out ways and means to reduce wastage and inefficiency of every kind
in the production processes.

This ultimately led to the emergence of the concept of ‘Scientific

Management’. Taylor’s philosophy of scientific approach was developed and
popularised by his contemporaries and associates like Frank Gilbreth, H.C.
Gantt, H. Emerson and H.S. Person.

Meaning and Definition of Scientific Management:

In simple words, scientific management implies the art of knowing exactly
what is to be done and how it is to be done. Under this approach, scientific
techniques are applied in the recruitment, selection and training of workers
and are also used in tackling various industrial problems.

According to him scientific management implies the application of the

following two fold techniques:
1. The discovery of the best method of performing a particular work.

2. The best method or the fruitful method for meeting a given situation.
A few definitions of make its meaning clearer:
“Scientific management means knowing exactly what you want men to do and
seeing that they do it in the best and the cheapest way”. —F.W. Taylor
“Scientific management will be that kind of a process of directing human
efforts which employs the scientific method and the management specialist,
hence, could be defined as one which specializes in application of modern
scientific method to the solution of the problems arising in the process of
management”, —Walter N. Polakoy

“Scientific management characterises that form of organisation and procedure

in purposive collective effort which rests on principles or laws derived by the
process of scientific investigation and analysis instead of tradition or policies
determined empirically and casually by the process of trial and error”. —
Harlow Person

From these definitions, it is clear that scientific management is concerned with

the replacement of old and outdated techniques with the scientific methods of
production. It further relates to continued experimentation and research in all
the processes of production and is concerned with group effort for the
achievement of end objectives.

It is that body of accumulated knowledge which is concerned with the

combining of the factors of production in such a manner as to achieve the
objectives of an enterprise in the most productive manner.

6 Main Principles of Scientific Management

1. Science, not Rule of Thumb

2. Scientific Selection, Training, and Development of Workers
3. Harmony, not Discord (Conflict)
4. Cooperation, not Individualism
5. Maximum, not Restricted Output
6. Equal Division of Responsibility between Management and Workers

Features of Scientific Management:

The main objective of scientific management is to improve and develop the

efficiency of the employees. And the best way to approach is by trying out
different types of tests and strategies. Some of the characteristics of scientific
management are,

 It is a systematic approach
  The main aim is to decrease wastes
 Results in total mental change
 Best suitable for a larger organization
 Gets rid of traditional management styles
 Mainly focuses on specialization
 Need strict observance of rules
 Helps in improving and enhancing workers efficiency

Advantages of Scientific Management:

The basic benefits of Scientific Management found in Frederick Winslow

Taylor’s 4 tenets on modernizing the labor force and its advancements.

The four positive points stated by Taylor in New England Railroad

Club in1977 are;

1. Developments and improvising should make in the contemporary

labor system and its workings.
2. Careful and analytical selection of workers should take for proper
mechanical training and education.
3. The administration should include the science or technology of
tasks along with the tasks for specifically chosen workers.
4. Most importantly the workers should have a corresponding number
of managers.
The scientific Management approach guarantees financial gain as
there increased efficiency reduced wastage and looses, also there is
better homogeny and rules present.

The Scientific management theory defines the scientific method of functioning

and producing things and also taking logical decisions by taking into
consideration various societal and economic forces.

It requires the total submission of all applicable and significant information

about the difficulty before making the decision even after much research,
observations and experiments.

1. Few facts about the advantages of Scientific Management:

 There are reliable and constructive data provided, and

improvisations made through experiments and observations based
on these data.
  There are development and an increase in production efficiency.
 This leads to better managerial skills and fosters a positive
leadership role with continued observations and research.
 It makes great improvisations in the working environment and
labor hours, on a whole it enhances the life of the employees.
 This leads to the creation of the basis on which the huge structure
and style of modern research and education and its quantitative
methods of observation and research are based upon.

2. Advantages of Scientific Management for the employees:

Scientific Management makes the proper efficient distribution and utilization of

resources a reality through apt scientific methods.

The proper scientific education and training of the workforce lead to increased
labor efficiency, and proper logical and sensible managerial skills create
cordial and peaceful relations between the labor force and the authority.

The employees also save from becoming confused and overwork as there is
standardization and rules and regulations; about the machines, modus
operandi and the workings of the labor force.

With the advent of Scientific Management has led to an immense reduction in

the production cost of goods due to proper planning and mechanization.

3. Advantages of Scientific Management for the workers:

With the advent of Scientific Management, the employees had the chance of
getting proper scientific education and training to enhance their working skills
and efficiency.

There is also the formation of better and suitable working conditions and work
timings with proper logical planning and research.

The workers should never exploit under any condition and the wages should
be proportional to the work done, with higher pay for increased efficiency.

Proper planning and implementation of developed machinery and improvised

techniques increase workers’ efficiency and reduce exhaustion.

4. Advantages of Scientific Management towards society:

Scientific Management made it possible to sell good quality products at low

prices. It also led to the proper complete utilization of resources without any
unnecessary wastage and hence increased efficient productivity.
The living standard of the masses also improves as the finished goods
brought at low, reduced prices.

Scientific Management fosters technological inquisition of the people and it

also creates the urge for development in people, so there is relentless
technological development.

Other detailed and precise advantages or benefits of Scientific Management

are as follows:

5. Lessening of the Production Cost:

The production quantity increases immensely, as mechanization makes

production very fast and efficient.

Also with Scientific Management, the latest technology brings down the
production cost a lot.

In industrial production a huge quantity produced, so the per-unit production

cost naturally diminished due to large-scale production.

6. A superior standard of goods:

With proper rules, regulations, and criterions of industrial production; and the
helpful effectual leadership the quality of products produced is superior.

7. Advantages of the Division of Labour:

The notion of division of labor is a relatively modern concept and adopted for
better production standards and higher yield.

Division of Labour is a tenet under the principle of specialization of Scientific

Management and the gains are many.

Here the work or duty of all workers becomes simplified and perfectly detailed;
which helps the workers to follow rules and perform better efficiently and
economically.

8. Always try to avoid conflict and differences between Labour and

Management:

Scientific Management is influential in creating a beneficial and rewarding

involvement of the management and the labor; thus it is influential in forming
an affable and appropriate association between the authority and the
employees.
Hence the discord and tensions between the labor class and the industrialist
class reduced to a large extent by Scientific Management.

F.W Taylor invented the notion of ‘Mental Revolution’ which fostered deep
comprehension, shared faith and conviction, and reliance and assurance
between the workers and the authority.

9. Higher Income of workers:

The goal of Scientific Management increase and efficient production and also
to look into the welfare of workers.

So the wages of the employees are better and appropriate. Taylor

recommended a unique differential plan to reward efficient workers with
incentives and promotions for better work.

Higher salary leads to better living standards for the workers.

10. Profits of the Industrialists or the Entrepreneurs:

The augmented production of goods and extensive production leads to great

profits and higher turnovers for the financiers.

The greater portion of the profits can save for later use by the entrepreneurs
for later self-support and improvisations of the production methods.

11. Appropriate processes of choosing and guidance for the workers:

A basic tenet of Scientific Management is the method of scientific or logical

and rational selection, assignment and education of the industrial employees.

Thereby the appropriate candidates selected for the work most suited for
them.

12. Improved work environment:

There is a provision of good working conditions. A healthy work environment

ensures the efficiency of workers and thereby enhanced production.

The suitable and apt working setting has the provision of taking rest, enough
lightning, proper airing, and safety measures followed rigorously and all other
necessities which guarantee the safety and welfare of the workers.
13. Efficient resource utilization and customer gains are high:

Scientific and advanced technological measures followed rigorously for

efficient resource allocation and utilization.

The industries certify the optimum use of all the resources like raw materials,
machinery, and devices, funds, and the workforce. The wastage of resources
always scientifically removed from all spheres of industrial production.

The users or consumers make the highest gain from Scientific Management;
as higher quality goods are provided at lesser prices.

Thus industrialization and Scientific Management lead to better economic and

social living status.

14. Scientific Management is immensely useful to the Nation:

There are diverse positive characteristics of Scientific Management; from

which the nation always profits.

Scientific Management brings about the industrial accord, production

augmented to a large extent, and also better living standards provided to all
types of people due to greater national income and swift industrial expansion.

Hence the notion of Scientific Management forming a stronger and better

nation is true.

Disadvantages of Scientific Management:

The demerits or limitations of Scientific Management are exploitation and

mistreatment of information by the industrial owners or leaders.

As stated by Deming, W.E in operating a company; the financers always try

to increase their profits to the highest extent possible; this is made possible by
overworking the workforce and their utter exploitation.

He along with Taylor believes that if the ideology of Scientific Management

accurately followed then productivity increases, the efficiency of workers
in advanced and the quality of production is high.

But in the modern industrial world, there is an immense economic competition

which causes inefficiency and stress in the workers; as extreme pressure put
on the workers to compete with rival companies.
1. Few facts about Disadvantages of Scientific Management:

 The workforce always has to adhere to a rigid and oppressive

catalog of rules and regulations which makes the exploitation of the
workers easier, and the employer remains unanswerable to
everyone.
 There is also the menace of work fragmentation and the workers in
different spheres of the production cycle most times have no idea
how the whole commodity formed.
 It leads to sole control of the workforce and its working process in
the ambit of the authority; hence the humane touch is absent as the
initiative for performance is constantly on money and not human
resource development.
 As the authority is the sole controller of the workforce and the
functioning; no or very little resistance and negotiation about
appropriate salaries and working conditions entertained by the
authority.
 The spotlight always on individual performances and thus workers
often labeled as efficient and inefficient; no possibility presents for
the creativity of the workers as the performance of workers always
rated by managers conventionally and this breeds annoyance and
dissatisfaction.

2. Exploitation and misuse of labor:

Taylor’s definition of Scientific Management gives immense emphasis on the

workforce to perform to its highest capacity and efficiency.

The human factor of the employees was completely ignored with unnecessary
emphasis on the profit motive of production.

This caused persistent exploitation and oppression of the workers which gave
birth to trade unions; the trade unions protested against the wrongs of the
authority which thereby created an atmosphere of enmity and tension
between the employers and employees.

3. Crisis on the unity of instructions and directives:

In his theory of Scientific Management, Taylor applied functional foremanship;

where the employees would have to confirm to eight managers.

This practice violates the notion of the unity of command; in which the
employees only had to report to one manager.
The practice of functional foremanship creates misunderstandings in
companies and industries.

4. The emotionless robotic attitude:

Taylor produced a theory purely based on conjecture and the concept of

utilitarianism; he gave a motorized and profit-driven outlook of the industries.

Too much significance was placed on the profit and efficiency factors but little
thought was given to the workers as human beings.

The workers were treated as machines or robots whose only function was to
produce goods continuously; so that the yield is high but the production costs
remain low.

5. Difficulty in separating preparations from the performance:

Taylor always stated that preparations and arrangements are unique and a
separate entity from the performance.

The planners should only do the preparations and arrangements so the

preparations are most often made based on theory and conjecture.

Thus the industries seldom have realistic rules and regulations, working goals
and aims.

6. The outlook is distinctive and personal:

As immense highlighting is placed on individual performance and

accomplishments; also little emphasis is given to team functioning and its
achievements. It fosters relentless competition and disintegration within
groups.

In reality, the accomplishments of a company depend on the whole group and

not on a few individual hard-working and highly efficient employees.

7. Erroneous conjectures:

He made the hypothesis without proper investigation and research that

workers are solely enthused and influenced by the money motive.

This is not the real scenario; as workers are not only motivated by financial
gains but also by social requirements and self-esteem.
8. Limited functioning and relevance:

Taylor’s theory had limited relevance; as most of the theory was a hypothesis.

Scientific Management can only apply in industries where the product can
base only on the quantity and quality of production.

Also, Scientific Management cannot apply to the service sector as the

performance of a worker can never evaluate quantitatively.

ADMINISTRATIVE MANAGEMENT THEORY

ROXANNE CARMELO

In the field of management, managers are accountable and responsible

for several activities. Nowadays, managers have access to different resources
that can be used in order to enhance and/or develop their skills. But have you
ever thought how those mangers were leading organizations 100 years ago?
However, managers in early 1900’s had a limited number of external
resources to develop or improve their management practice. But thanks to
Henri Fayol’s Administrative Management Theory, which allowed managers to
get the tools that were required to manage and lead more effectively. It can be
said that Fayol and other theorists like him are responsible for the basis of
modern management theory. 
Background Details to Henri Fayol's Administrative Management Theory
BACKGROUND:
Henri Fayol developed the Administrative Management Theory. He was born
in Istanbul in 1841. At the age of 19, he started to work as an engineer at a
mining company located in France. Eventually, he was appointed as the
director of the company when the company employed 1,000+ people.
During these years, he started developing the 14 key principles of
management. These principles explained the ways in which managers should
interact and organize the staffs.
In the year 1916, around two years before appointing as the director, he
promulgated his "14 important Principles of Management" in his book
"Administration Industrielle et Générale." Also, he published 6 primary
functions of management.
Henry Fayol's Administrative Management Theory is said as one of the
earliest management theories, and it is also one of the most important
management theories. With these Principles of Management and primary
functions of management, he is now considered as one of the most influential
contributors in the field of modern concept of management.
14 Principles of Management by Henri Fayol
Henri Fayol is known as the “father of modern management theory”. He
developed a new perception for the management concepts. He released a
general management theory which can be applied to every management level
and in every department. However, the 14 principles of management
developed by Henry Fayol are discussed below by our management
assignment help experts.
1. Division of Work
Henri Fayol considered that separating work in the organizations for workers
will improve the product quality. Likewise, he also believed that the separating
work as per the employee specialization will also enhance the worker’s
productivity, accuracy, efficiency, and speed. This principle is not only best fit
for the managerial but also for the technical work level.
2. Responsibility and Authority
Responsibility and authority are the two important aspects of management.
Here, responsibility brings responsibility for the assigned work, whereas
authority enables the management to perform those tasks efficiently.
3. Discipline
We all know the importance of discipline in management. It has been seen
that without discipline, tasks cannot be accomplished efficiently and
effectively. Therefore, discipline is termed as the core value for any
management project. Sensible interrelation and good performance helps in
making the management job extensive and easy. In addition to this,
employee’s good behaviour assists in building smooth and strong professional
relationships.
4. Unity of Command
Unity of Command generally states that employees should work under one
boss and should follow his/her command. In case, if employees have to work
under different bosses and required to follow their orders then there is a
possibility that conflict of interest and confusion can be created.
5. Unity of Direction
Those who are engaged in the similar activity are required to have a unified
goal. In other words, persons working in an organisation should work to
accomplish one goal and motive that makes the task easy and attain the
desired goal efficiently.
6. Subordination of Individual Interest
This principle of Henry Fayol’s of Administrative Management Theory states
that an organisation should work together to meet the desired goals and
company’s interest rather than personal interest. Henry Fayol says to be
subordinate to the organisation’s purposes. It pertain the company’s chain of
command.
7. Remuneration
Remuneration is one of the most ways to motivate employees. It can be both
monetary as well as non-monetary. However, it is given as per the employee’s
efforts contributed in accomplishing the company’s goals.
8. Centralization
In an organisation, the authority and management plays an important role in
decision-making process and should be neutral. Nevertheless, it depends on
organisation’s size and level. He said that the division of power and hierarchy
should be adequately balanced without any bias.
9. Scalar Chain
In this principle of management theory, Henry Fayol says that the series of
steps should be flow from top to low. It is important because every employee
knows their senior and they are free to get in touch with them anytime, when
needed.
10. Order
Order discusses the ways to maintain and manage a well-defined work culture
and work environment. Having a positive atmosphere within the organisation
is quite helpful in boosting positive productivity.
11. Equity
Here, Fayol concentrates on treating employees respectfully and equally.
Managers are responsible to avoid discrimination among employees.
12. Stability
Henry says believes that employees give their best they feel secured about
their job. Therefore, it becomes important and necessary for management to
provide employee’s job security.
13. Initiative
In this management theory, mangers are required to encourage and support
employees to take initiatives for tasks. Also, it helps in increasing their interest
and making them worth.
14. Esprit De Corps
Here, organizations should endeavor to promote and support team unity and
spirit. 
\

THEORY X MANAGEMENT STYLE

REYDANN S. DELMO
-Developed in the 1960s by Douglas McGregor in his book, “The Human
Side of Enterprise,"1 Theory X and Theory Y allocate the job of management
into two styles. And, just like your algebra class, X and Y don’t work totally
independently, although you can manage in a style that is mostly a Theory X
or Theory Y management style.

-Your management style evolves as you gain cues from your work

environment, the type of work you need to accomplish, the locus of control of
your workforce (intrinsically driven or externally), the strength and talent of
your workforce, and your ultimate beliefs about how people are motivated. 

-The underlying idea with Theory X management style is that humans are
inherently lazy and will only work if the manager is forcing them to work.
Without a manager standing there saying, “get back to work," nothing will
happen. This style makes the assumption that humans only work because
they have to work, so the motivation to do the work must come from an
external source—the manager.

-Theory X style managers believe their employees are less intelligent, lazier,
and work solely for a sustainable income. Management believes employees'
work is based on their own self-interest. Managers who believe employees
operate in this manner are more likely to use rewards or punishments as
motivation. Due to these assumptions, Theory X concludes the
typical workforce operates more efficiently under a hands-on approach to
management. Theory X managers believe all actions should be traceable to
the individual responsible. This allows the individual to receive either a direct
reward or a reprimand, depending on the outcome's positive or negative
nature. This managerial style is more effective when used in a workforce that
is not essentially motivated to perform.

According to McGregor, there are two opposing approaches to

implementing Theory X:
The hard approach- depends on close supervision, intimidation, and
immediate punishment.This approach can potentially yield a hostile, minimally
cooperative workforce and resentment towards management.Managers are
always looking for mistakes from employees, because they do not trust their
work.Theory X is a "we versus they" approach, meaning it is the management
versus the employees.
The soft approach- is characterized by leniency and less strict rules in hopes
for creating high workplace morale and cooperative employees. Implementing
a system that is too soft could result in an entitled, low-output
workforce. McGregor believes both ends of the spectrum are too extreme for
efficient real-world application. Instead, McGregor feels that an approach
located in the middle would be the most effective implementation of Theory X.

Some managers can’t get the Theory X management style out of their heads.
That’s how you end up with micro-managers who judge employees based on
facetime rather than trust, double-check everything employees do, and control
every aspect of the work process. This sounds like a terrible work
environment.

However, employees exist who need this kind of prodding from their manager.
Some people don’t do a good job and could care less about the business, the
clients, or a job well done.

The best outcome for your business is not to hire this type of person in the
first place. But recognize that if your pay and prestige are low, you may end
up with this type of worker more often than not.
 THEORY Y
(MANAGEMENT CONCEPT)
MIKE G. DISUMIMBA JR.

What is theory Y?
• Theory Y managers assume employees are internally motivated, enjoy
their job, and work to better themselves without a direct reward in
return. These managers view their employees as one of the most
valuable assets to the company, driving the internal workings of the
corporation. Employees additionally tend to take full responsibility for
their work and do not need close supervision to create a quality
product. It is important to note, however, that before an employee
carries out their task, they must first obtain the manager's approval.
This ensures work stays efficient, productive, and in-line with company
standards.
• Theory Y managers gravitate towards relating to the worker on a more
personal level, as opposed to a more conductive and teaching-based
relationship. As a result, Theory Y followers may have a better
relationship with their boss, creating a healthier atmosphere in the
workplace. In comparison to Theory X, Theory Y incorporates a
pseudo-democratic environment to the workforce. This allows the
employee to design, construct, and publish their work in a timely
manner in co-ordinance to their workload and projects.
• Although Theory Y encompasses creativity and discussion, it does
have limitations. While there is a more personal and individualistic feel,
this leaves room for error in terms of consistency and uniformity. The
workplace lacks unvarying rules and practices, which could potentially
be detrimental to the quality standards of the product and strict
guidelines of a given company.
 Theory Z
Nassif M. Ditucalan, RCE

THEORY Z
Is a name for various theories of human motivation built on Douglas
McGregor's Theory X and Theory Y.

Theory Z is an approach to management based upon a combination of

American and Japanese management philosophies and characterized by,
among other things, long-term job security, consensual decision making, slow
evaluation and promotion procedures, and individual responsibility within a
group context.
Pre-Theory Z
• Abraham Maslow
- a psychologist and pioneer in human motivation, developed a theory
of motivation based upon human needs.
Maslow’s Hierarchy of needs theory helps the manager to understand
what motivates an employee. By understanding what needs must be met in
order for an employee to achieve the highest level of motivation, managers
are then able to get the most out of production.

Three Assumptions of Abraham Maslow

• First: human needs are never completely satisfied.
• Second: human behavior is purposeful and motivated by a need for
satisfaction.
• Third: these needs can be classified according to a hierarchical
structure of importance from the lowest to highest.

Maslow's Theory Z
• Late in his career Maslow focused increasingly on self-
transcendence as a human phenomenon and concern. As he
explained in his seminal paper titled Theory Z, the motivation for
transcendence literally 'transcends' his original hierarchy of needs. On
the other hand, some people, like the proverbial "starving artist," value
self-transcendence ahead of all material values, including self-
actualization. Hence, transcendence for Maslow is not so much an
extension of his original pyramid as an orthogonal dimension.
 DEVELOPMENT OF THEORY Z
Theory Z has been called a sociological description of the humanistic
organizations advocated by management pioneers such as Elton Mayo, Chris
Argyris, Rensis Likert, and Douglas McGregor. In fact, the descriptive phrase,
"Theory Z." can be traced to the work of Douglas McGregor in the 1950s and
1960s. McGregor, a psychologist and college president, identified a negative
set of assumptions about human nature, which he called Theory X. He
asserted that these assumptions limited the potential for growth of many
employees.

Theory Z was first identified as a unique management approach by

William Ouchi. Ouchi contrasted American types of organizations (Type A)
that were rooted in the United States' tradition of individualism with Japanese
organizations (Type J) that drew upon the Japanese heritage of collectivism.
He argued that an emerging management philosophy, which came to be
called Theory Z, would allow organizations to enjoy many of the advantages
of both systems. Ouchi presented his ideas fully in the 1981 book, Theory Z:
How American Companies Can Meet the Japanese Challenge. This book was
among the best-selling management books of the 1980s.

THEORY Z AS AN APPROACH
TO MANAGEMENT

Theory Z represents a humanistic approach to management. Although it is

based on Japanese management principles, it is not a pure form of Japanese
management. Instead, Theory Z is a hybrid management approach combining
Japanese management philosophies with U.S. culture. In addition, Theory Z
breaks away from McGregor's Theory Y. Theory Y is a largely psychological
perspective focusing on individual dyads of employer-employee relationships
while Theory Z changes the level of analysis to the entire organization.

Primary features of Theory Z

• LONG-TERM EMPLOYMENT
Traditional U.S. organizations are plagued with short-term
commitments by employees, but employers using more traditional
management perspective may inadvertently encourage this by treating
employees simply as replaceable cogs in the profit-making machinery.
 • CONSENSUAL DECISION MAKING
The Type Z organization emphasizes communication, collaboration,
and consensus in decision making. This marks a contrast from the traditional
Type A organization that emphasizes individual decision-making.

• INDIVIDUAL RESPONSIBILITY
Type A organizations emphasize individual accountability and
performance appraisal. Traditionally, performance measures in Type J
companies have been oriented to the group. Thus, Type Z organizations
retain the emphasis on individual contributions that are characteristic of most
American firms by recognizing individual achievements, albeit within the
context of the wider group.

• SLOW EVALUATION AND PROMOTION

The Type A organization has generally been characterized by short-
term evaluations of performance and rapid promotion of high achievers. The
Type J organization, conversely, adopts the Japanese model of slow
evaluation and promotion.

• INFORMAL CONTROL WITH FORMALIZED MEASURES

The Type Z organization relies on informal methods of control, but
does measure performance through formal mechanisms. This is an attempt to
combine elements of both the Type A and Type J organizations.

• MODERATELY SPECIALIZED CAREER PATH

Type A organizations have generally had quite specialized career
paths, with employees avoiding jumps from functional area to another.
Conversely, the Type J organization has generally had quite non-specialized
career paths. The Type Z organization adopts a middle-of-the-road posture,
with career paths that are less specialized than the traditional U.S. model but
more specialized than the traditional Japanese model.

• HOLISTIC CONCERN
The Type Z organization is characterized by concern for employees
that goes beyond the workplace. This philosophy is more consistent with the
Japanese model than the U.S. model.
 EVALUATION OF THEORY Z
Research into whether Theory Z organizations outperform others has yielded
mixed results. Some studies suggest that Type Z organizations achieve
benefits both in terms of employee satisfaction, motivation, and commitment
as well as in terms of financial performance. Other studies conclude that Type
Z organizations do not outperform other organizations.
 ELTON MAYO HAWTHORN STUDY
JOVIELYN B. ESPINOSA

Professor George Elton Mayo (1880-1949) has secured fame as the leader in
a series of experiments which became one of the great turning-points in
management thinking. At the Hawthorne plant of Western Electric, he
discovered that job satisfaction increased through employee participation in
decisions rather than through short-term incentives.

Mayo's importance to management lies in the fact that he established

evidence on the value of a management approach and style which, although
not necessarily an alternative to F W Taylor's scientific management,
presented facts which Taylorites could not ignore.

Life and career

An Australian by birth, Mayo read psychology at Adelaide University> He

was appointed lecturer in Logic, Ethics and Psychology (and later Professor of
Philosophy), at the University of Queensland in 1911.

Anxious to move to the USA for professional reasons, he took a post at

Pennsylvania University in 1923. Here, he became involved in one of the
investigations which seemed to act as a dry-run for Hawthorne. In one
department at a spinning mill in Philadelphia, labour turnover was 250%
compared with an average of 6% in other departments of the company. A
series of experimental changes in working conditions was introduced in the
department, most notably rest pauses. These changes led to successive
increases in productivity and the raising of morale. After one year, labour
turnover was down to the average level for the company as a whole. It was
assumed that the explanation for this improvement was the introduction and
modification of rest pauses. This explanation was to undergo substantial
modification as a result of Hawthorne.

The Hawthorne Experiments began in 1924, Mayo's involvement started in

1928 after he had moved to the Harvard University School of Business
Administration as Associate Professor of Industrial Research. Later awarded
a Chair, he remained at Harvard until his retirement in 1947. During the
Second World War, Mayo contributed to the development of supervisor
training within his Training Within Industry (TWI) programme, which was
widely adopted in the USA. The last two years of his life were spent in Britain
as an advisor to the British government on problems within industry.

Mayo wrote about democracy and freedom and the social problems of
industrialised civilisation. It is as the author of Human problems of an
industrial civilisation which reports on the Hawthorne Experiments, that he
is known for his contribution to management thinking, even though he
disclaimed responsibility for the design and direction of the project.

Key theories

Hawthorne

The Hawthorne plant of Western Electric was located in Chicago. It had some
29,000 employees and manufactured telephones and telephone equipment,
principally for AT & T. The company had a reputation for advanced personnel
policies and had welcomed a research study by the National Research
Council into the relationship between work-place lighting and individual
efficiency.

The experiments

The study began in 1924 by isolating two groups of workers in order to

experiment with the impact of various incentives on their productivity.
Improvements to levels of lighting produced increases in productivity, but so
too did reversion to standard lighting and even below-standard lighting in both
groups. The initial assumption therefore was that increased output stemmed
from variation alone.

Other incentives - including payment incentives and rest pauses - were

manipulated at regular intervals, and although output levels varied, the trend
was inexorably upwards. Whatever experimentation was applied, output went
up. Although it had been fairly conclusively determined that lighting had little
or nothing to do with output levels, the Assistant Works Manager (George
Pennock) agreed that something peculiar was going on and that
experimentation should continue.

Early deductions - supervision and employee attitudes

In the winter of 1927, Pennock invited Clair Turner (Professor of Biology and
Public Health at MIT) to consult. Turner quickly resolved that rest pauses in
themselves were not the cause for increased output, although it was observed
that longer rest pauses gave rise to more social interaction, which in turn
impacted on mental attitudes. Turner attributed the rise in output to: the small
group; the type of supervision; earnings; the novelty of the experiment, and
the increased attention to the experimentees generated by the experiment
itself.

Pennock had been among the first to note that supervisory style was
important. The supervisor involved in the illumination experiment had been
relaxed and friendly; he got to know the operators well and was not too
worried about company policies and procedures. Discipline was secured
through enlightened leadership and understanding, and an esprit de corps
grew up within the group. This was in stark contrast to standard practice
before the experiment.
When Pennock invited Turner to participate, he also invited Mayo (although it
is unknown whether this was as a result of Mayo's achievements at the
Philadelphian Spinning Mill, or because of a desire to involve Harvard). Visits
in 1929 and 1930 indicated to Mayo 'a remarkable change of attitude in the
group'. Mayo's view was that the Test Room Workers had turned into a social
unit, enjoying all the attention they were getting, and had developed a sense
of participation in the project.

In order to understand this further Mayo instituted a series of interviews.

These provided the workers with an opportunity to express their views and let
off steam. It emerged that they would feel better for discussing a situation
even if it did not change. Further exploration into worker complaints revealed
that some had little or no basis in fact but were actually symptoms or
indicators of personal situations causing distress.

By focusing on a more open, conversational, listening and caring interview

approach, Mayo had struck a key which linked the style of supervision and the
level of morale to levels of productivity.

Further research - social groups

A third stage in the research programme took place in the Bank Wiring Room
with a similar application of incentives to productivity. Here it emerged that:

o output was restricted - the group had a standard for output which
was respected by individuals in the group;
o the group was indifferent to the employer's financial incentive
scheme;
o the group developed a code of behaviour of its own based on
solidarity in opposition to the management, and
o output was determined by informal social groups rather than by
management.

Mayo had read the work of F W Taylor, who had already established that
social groups were capable of exercising very strong control over the work
behaviour of individual members (Taylor had referred to this as 'systematic
soldiering'). The interesting development which Mayo noted, however, was
that whereas in the first set of experiments productivity went up as the
experiments progressed, in the Bank Wiring Room productivity was restricted.

In The human problems of an industrial civilisation Mayo wrote:

Human collaboration in work, in primitive and developed societies, has always

depended for its perpetuation upon the evolution of a non-logical social code
which regulates the relations between persons and their attitudes to one
another. Insistence upon a merely economic logic of production...interferes
with the development of such a code and consequently gives rise in the group
to a sense of human defeat. This... results in the formation of a social code at
a lower level and in opposition to the economic logic. One of its symptoms is
'restriction'.
The question which needed to be asked, therefore, was: What was different
between the two groups? The answer was found to lie with the attitude of the
observer. Where the observer encouraged participation and took the workers
into his confidence, productivity went up. Where the observer merely watched
and adopted the trappings of traditional supervisory practice, output was
restricted.

Interpreting Hawthorne

For industry to benefit from the experiments at Hawthorne, Mayo first

concluded that supervisors needed training in understanding the personal
problems of workers, and also in listening and interviewing techniques. He
held that the new supervisor should be less aloof, more people-oriented, more
concerned, and skilled in handling personal and social situations.

It was only later, after a period of reflection, that Mayo was able to conclude
that:

o job satisfaction increased as workers were given more freedom to

determine the conditions of their working environment and to set
their own standards of output;
o intensified interaction and cooperation created a high level of group
cohesion;
o job satisfaction and output depended more on cooperation and a
feeling of worth than on physical working conditions.

In Mayo's view, workers had been unable to find satisfactory outlets for
expressing personal problems and dissatisfactions in their work life. The
problem, as Mayo perceived it, was that managers thought the answers to
industrial problems resided in technical efficiency, when actually the answer
was a human and social one.

Mayo's contribution lies in recognising from the Hawthorne experiments that

the formality of strict rules and procedures spawns informal approaches and
groups with their base in human emotions, sentiments, problems and
interactions. The manager, therefore, should strive for an equilibrium between
the technical organisation and the human one and hence should develop
skills in handling human relations and situations. These include diagnostic
skills in understanding human behaviour and interpersonal skills in
counselling, motivating, leading and communicating.

In perspective

Mayo has been acclaimed by his followers as the Founder of the Human
Relations school of management, and he has been criticised by sociologists
for not going far enough in his interpretations.

Mayo's conclusions and interpretations are increasingly commonplace among

social scientists, trade unionists and managers alike. Perhaps that is a
measure of his achievement, because most critics and commentators agree
that he was the first, not necessarily to state the case, but to demonstrate,
infer and provide evidence from it to shift management thinking in a direction
other than the widespread and entrenched dominance of Taylor's scientific
management.

Hawthorne - thanks to both Mayo and one of his major colleagues and
collaborators (F. J. Roethlisberger) was widely reported and discussed.
Roethlisberger said of Mayo that the data were not his, the results not his, but
the interpretations were Mayo's. Without those interpretations, the results of
Hawthorne would still be collecting dust in the archives. Following his
involvement with the Hawthorne Experiments in the 1920s and 30s,
Roethlisberger later revisited the findings with Hawthorne supervisor William
Dickson. When analysing the data in detail, they discovered that subjects alter
their behaviour when under observation. This they termed the ‘Hawthorne
Effect’ - a situation which arose because people were ‘singled’ out for special
treatment, or a ‘special situation’ which when created, allowed workers the
freedom to air their problems. This psychological phenomenon was written
about by Roethlisberger and Dickson in their 1966 publication Counselling in
an organization: a sequel to the Hawthorne researches. Since that time,
modern-day scholars have sought to investigate the validity of the ‘Hawthorne
Effect’; examining the extent to which individuals modify their behaviour when
under observation, and in what conditions it manifests itself.

Mayo's conclusions influenced others who later became regarded as

management gurus themselves:

His ideas on the emergence of 'informal' organisations were read

by Argyris and others as they developed theories about how organisations
learned and developed.

The discrediting of the 'rabble hypothesis' theory - based on the

assumption that individuals only pursue self-interest - led directly to the
work of McGregor (Theory X and Theory Y) with its wider implications for
leadership and organisation.

The conclusions drawn by Mayo from the Hawthorne studies established the
beginnings of the importance of management style as a major contributor to
industrial productivity, of interpersonal skills as being as important as
monetary incentives or target-setting, and of a more humanistic approach as a
means of satisfying the organisation's economic needs and human social
skills.

Although there is some disagreement among academics in terms of what

conclusions should be drawn from the Hawthorne Experiments, what is
agreed upon is that Mayo’s study and subsequent findings effectively laid the
foundation for understanding industrial behaviour and human relations in the
workplace. Indeed, it can be said that Mayo’s experiment has left a long-
lasting legacy for the field of management to build upon for many years to
come.
 LYNDALL URWICK CONTRIBUTION
ALEXAN S. FAISAL
Was a British management consultant and business thinker. He is recognized
for integrating the ideas of earlier theorists like Henri Fayol into a
comprehensive theory of management administration. He wrote an influential
book called The Elements of Business Administration, published in 1943. With
Luther Gulick, he founded the academic journal Administration Science
Quarterly.
BORN 3 MARCH 1891
DIED 5 DECEMBER 1983

MAKING OF SCIENTIFIC MANAGEMENT

In 1945, he made his most lasting contribution to management literature with
publication of his three-volume Making of Scientific Management. It was the
first treatise to present a clear and focused discussion of the development and
application of management science. It included a comprehensive number of
profiles of leading proponents of management theory, from early pioneers
such as Charles Babbage and Frederick Winslow Taylor, to those such as
Seebohm Rowntree and Mary Parker Follet who innovated and refined their
concepts.
All aimed to bring “adequate intelligence” to the control of the forces released
by a mechanized economy to bring the logical standards of science to bear on
business practice. It also dealt with early contributions to understanding the
scientific approach to control in industry. A long background of scientific
management practices had previously been largely unknown before
publication of these volumes. The study included a view of methods of control
at the famous Boulton and Watt Foundry, of Robert Owens approach to
personnel management, and of commercial management training. 

THE MANAGER’S SPAN OF CONTROL

Lyndall Urwick was the first writer to apply the concept of span of control
formally to business. Urwick asserted that the reduction of less important daily
duties is essential for enhancing the personal touch that makes a business
executive an effective leader using to work of General sir Ian Standish
Monteith Hamilton, Urwick maintained that limiting the number of subordinates
reporting to an executive (i.e. restricting the span of control) can do the
following: improve executive effectiveness; reduce pressure, inefficiency and
incompetence; produce better employee co-operation ; an build morale and
sense of unity within the organization.
After a conversation with Urwick A.V. Graicunas wrote an article,
“Relationship in Organization”, that was published in 1933 in the Bulletin of
the International Management Institute. In this article, Graicunas noted that
superiors must be cognizant of not only their direct relationships of their
subordinates and different subgroupings. Graicunas went on to apply a
mathematical formula to show that each increase of direct relationships by 1
represented a 25% increase in power to delegate and more than a 100%
increase in the burden of supervision and co-ordination. Urwick expanded on
these findings to provide the recommendation that “no superior can supervise
directly the work of more than five or at the most, six subordinates whose
work interlocks.
Urwick was influenced considerably by two engineers, American mechanical
Engineer Frederick winslow Taylor and French mining engineer Henri Fayol.
He was the first British director of the International Management Institute in
Geneva. Later he was to set up one of the largest management consulting
firms in Britain: Urwick, or and Partners. His early ideas on management were
influenced by engineers including V.A. Graicunas. As a management
consultant, he became associated with American industrial engineers such as
H.B. Maynard and Lillian Gilbreth. Urwick was a prolific writer on
management, with more than 200 books and papers to his credit. He became
a widely known international management authority. The international
recognition of Elton Mayo was due partly to Urwick.
Urwick’s early acknowledgement of the considerable debt that field of
management owed to engineers received little recognition. He was early
concerned about the importance of management training of young engineers
but later stressed the difference but close connection between management
and engineering Urwick was an integrator of management concepts. His
contribution and his relationship to engineering management are outlined.

10 PRINCIPLES OF LYNDALL URWICK (1943)

1. THE PRINCIPLE OF THE OBJECTIVE - THE OVERALL PURPOSE OF
AN ORGANIZATION IT IS RAISON D’ETRE.
2. THE PRINCIPLE OF SPEACIALISATION - ONE GROUP, ONE FUCTION.
3. THE PRINCIPLE OF COORDINATION - THE PURPOSE OF
ORGANIZING IS TO FACILITIES COORDINATION OR UNITY OF EFFORT.
4. THE PRINCIPLE OF AUTHORITY - IN EVERY ORGANIZED GROUP,
SUPREME AUTHORITY MUST BE LOCATED SOMEWHERE, AND THERE
SHOULD BE A CLEAR LINE OF AUTHORITY TO EVERY MEMBER OF THE
GROUP.
5. THE PRINCIPLE OF RESPONSIBILITY - A SUPERIOR MAY BE HELD
ACCOUNTABLE FOR THE ACTIONS OF SUBORDINATES.
6.THE PRINCIPLE OF DEFINITION - JOBS, DUTIES AND RELATIONSHIPS
SHOULD BE CLEARLY DEFINED.
7.THE PRINCIPLE OF CORRESPONDENCE - IN EVERY POSITION,
RESPONSIBILITY AND AUTHORITY SHOULD CORRESPOND WITH ONE
ANOTHER.
8.THE PRINCIPLE OF SPAN OF CONTROL - NO PERSON SHOULD
SUPERVISE MORE THAN 5-6 LINE REPORTS WHOSE WORK IS
INTERLOCKED.
9. THE PRINCIPLE OF BALANCE - IT IS ESSENTIAL THAT THE VARIOUS
UNITS OF AN ORGANIZATION ARE KEPT IN BALANCE.
10. THE PRINCIPLE OF CONTINUITY - REORGANIZATION IS A
CONTINOUS PROCESS AND PROVISON SHOULD BE MADE FOR IT.
 HERBERT SIMON CONTRIBUTION
SITTIE AISAH B. GUBAT

5 Major Contributions of Herbert Simon towards Management

1. Concept of Organization:
Simon has described an organization as a complex network of decisional
processes, all pointed towards their influence upon the behavior of the
operatives. He has viewed the organization containing distribution and
allocation of decision-making functions.

According to him, physiology of the organization is to be found in the process

whereby organization influences the decisions of its members, supplying
these decisions with their devices. Thus, the best way to analyses an
organization is to find out where and by whom decisions are made.

2. Decision-making:
Perhaps the greatest contribution of Simon is in the field of decision-making.
Decision-making is the core of management and management is synonymous
with decision-making. This is why he has been referred to as decision theorist.
According to him, the decision process can be broken into a series of three
sequential steps.

These are:
(i) Intelligent activity the initial phase of searching the environment for
conditions calling for decisions;
(ii) Design activity the phase of inventing, developing, and analyzing
possible course of action to take place; and
(iii) Choice activity the final phase of actual choice selecting a particular
course of action from those available.

3. Bounded Rationality:
Simon is of view that man is not completely rational. He has criticized the
theories which are based on the assumptions of complete rationality. He has
advocated the principle of bounded rationality. Accordingly, managers do not
go for maximum satisfaction of a decision but are satisfied with good enough
satisfaction from a decision.

Managers cannot maximize on account of various limitations and constraints.

A decision is a rational for achieving the desired ends, appropriate means are
adopted. However, it is not easy to separate the ends from the means
because of ends-means chain. This ends-means chain is seldom an
integrated or completely integrated one.
The relationship between organizational activities and ultimate objectives is
also not dear. Moreover, a simple ends-means chain analysis may not help in
reaching accurate conclusion because what is an end at one point of time or
at one level of organization might be a means at the other time or at other
level of organization.

4. Administrative Man:
Simon has given the concept of administrative man as the model of decision-
making. The model is based on the following assumptions:
(i) Administrative man adopts satisfaction approach in decision-making
rather than the maximizing approach of economic man.
(ii) He perceives the word as a simplified model of real world. Thus, he
remains content with simplification,
(iii) He can make his choice without first determining all possible
alternatives and without screening that these are in-fact all the
alternatives,
(iv) He is able to make decisions with relatively simple rule of thumb, or
tricks of trade, or force of habit. The administrative man model
describes the decision-making process of mangers tarty then
alternative thereby of economic man.

5. Organizational Communication:
Simon has emphasized the role of communication in organization. According
to him, there are three stage in the communication process; initiation,
transmittal, and receipt of information. There may be blockade of
communication and any of these three stages. In order to overcome the
problem of communication, he has emphasized the role of informal
communication and has attached less importance to the formal network of
authority.
 MARY PARKER FOLLETT CONTRIBUTIONS
FLORA MAY O. GANDAM

Mary Parker Follett

(3rd September, 1868- 18 December, 1933)

Introduction
• Mary Parker Follett was an American social worker and a management
consultant.
• She was a pioneer in the fields of Organizational theory and
Organizational behavior.
• Follett was born in Boston and spent much of her early life there. She
was one of the great women management gurus.

Definition of Management
• Mary Parker Follett defined management as “the art of getting things
through others.”

Work
• Mary Parker Follett is regarded as the mother of scientific
management.
• Her ideas on negotiation, power, and employee participation were
highly influential in the development of the fields of organizational
studies.
• She was a social worker turned management theorist and consultant
and writer.
Principles of Coordination

• Principle of Early Stage

- According to this principle coordination must start at an early stage
in the management process.
- It must start in planning stage so that it results in making best plans
and implementing these plans with success.
- Coordination can be achieved more easily in early stages of
planning and policy-making.
- Early coordination improves the quality of plans.

• Principle of Continuity
- Coordination must be a continuous process.
- Coordination Management process includes planning, organising,
directing, controlling.
- Organization starts Organization Exists Management process

• Principle of Direct Contact

- According to this principle all managers have a Direct Contact with
their subordinates.
- It enables managers to coordinate different activities of their
subordinates effectively and efficiently.
- Removes misunderstanding Face to face communication

• Principle of Reciprocal Relations

- Decisions and action of all the people and departments of the
organization are interrelated.
- Decision of one person or department will affect all other
persons and departments in organization.

Additional Principles

• Principle of Effective Communication

- Coordination will be successful only in the presence of an
effective communication.
- Good communication must be present between all
departments, within employees themselves, and even between
managers and their subordinates.
- Good communication helps to avoid misunderstandings in the
organization.
- All communication barriers and gaps must be avoided and
fixed.
 • Principle of Mutual Respect

- Without mutual respect, coordination may not survive.

- Managers must respect feelings and emotions of employees.
Top management Middle management Lower management
Mutual respect.

• Principle of Clarity of Objectives

- Everyone in an organization must know the objectives very
clearly.
- Coordination will be successful only if the organization has set
its clear objectives.

• Principle of Scalar Chain

- The scalar chain is a chain of supervisors from the highest to
the lowest rank.
- An employee should feel the necessity to contact his superior
through scalar chain.

Theory of Management

The Mary Parker Follett Theory of Management is marked by such principles

as the following:

1. Conflict resolution through Integration (i.e., identifying and meeting

each party's underlying and often compatible need, as opposed to
attempting to meet the frequently-incompatible expressed desire of
each) often results in a win-win situation
2. In Mary Parker Follett leadership theory, genuine power is not "coercive"
("power over") but "coactive" ("power with").

3. True leaders, according to Follett's theory, "create group power, rather

than expressing personal power." Theory Of Management .

Books

• New State: The New State was written during 1918, and argues for
group-based democracy as a process of government.
• The Creative Experience: The Creative Experience was also written
during 1918, and again focused on democratic governance, using
examples from business to illustrate ideas.

Publications

• She also authored a number of books and numerous essays, articles

and speeches on democracy, human relations, political philosophy,
psychology, organizational behavior and conflict resolution.
• Few other publications by her are The Speaker of the House of
Representatives (1896), The Giving of Orders (1926) and Dynamic
Administration (1942).
Legacy
• Mary Parker Follett was a pioneer of community organizing. Her
advocacy of schools as community centers helped open numerous
such centers throughout Boston, establishing them as important
educational and social forums.
• Her argument of the need of community organizing as the school of
democracy led to better understanding of the dynamics of democracy
in general.
• Regarding her work on management, after her death in 1933, she
became practically forgotten.
• Her ideas vanished from the mainstream of American management
and organizational thinking in the 1930s and 1940s. She however
continued to draw followers in Great Britain.
• Gradually her work re-emerged, especially in 1960s Japan, and several
management thinkers started to re-apply her theories.
 CONTINGENCY OR SITUATIONAL APPROACH TO
MANAGEMENT THEORY
GLENN A. GRANADO
The contingency approach, often called the Situational Approach is based
upon the premise that all management is essentially situational in nature. All
decisions by managers will be affected (if not controlled) by the contingencies
of a given situation. 

There is no one good way to address any decision. Contingencies arise from
various environmental factors. As such, managers must take into account
these contingencies when making decisions that affect the organization.

Contingency theory builds upon accepted elements of System Theory. It

recognized that an organization is an open system made up of interrelated
sub-units. It adds, however, that the behavior of individual sub-units is
contingent upon internal and external environmental contingencies. 

These might include the relationship between two other sub-units or external
systems. This is particularly true when these internal or external units/systems
have an effect on the desired outcome of a sub-unit. 

Contingency theory also proposes structural changes or designs, leadership

styles, and control systems in an organization that allow it to react to
environmental contingencies.

What are the primary characteristics of the Contingency Approach?

The primary characteristics of contingency theory include:

 Non-universality of management theory - There is no one best way

of doing things.
 Contingency - Management decision making is contingent upon the
situation.
 Environment - Managerial policies and practices to be effective, must
adjust to changes in the environment.
 Diagnostics - Managers must possess and continue to improve
diagnostic skills so as to anticipate and ready for environmental
changes.
 Human Relations - Managers should have sufficient human relations
skills to accommodate and stabilize change.
 Information and Communication - Managers must develop a
communication system adequate to deal with environmental changes.
What are the primary characteristics of the Contingency Approach?

The primary characteristics of contingency theory include:

 Non-universality of management theory - There is no one best way

of doing things.
 Contingency - Management decision making is contingent upon the
situation.
 Environment - Managerial policies and practices to be effective, must
adjust to changes in the environment.
 Diagnostics - Managers must possess and continue to improve
diagnostic skills so as to anticipate and ready for environmental
changes.
 Human Relations - Managers should have sufficient human relations
skills to accommodate and stabilize change.
 Information and Communication - Managers must develop a
communication system adequate to deal with environmental changes.
How do Contingencies Affecting Organizational Structure?

Theorists Burns and Stalker, in their text "Management of innovation" (1968),

identified two types of organizational structure (mechanistic) and (organic)
and two categories of the environment (stable and dynamic). 

Mechanistic structures are more common in stable environments. Organic

structures are more common and suitable in dynamic environments. 

The commonly-identified contingencies influencing organizational structure

include:

 Organization Size
 Nature of Business and Technology (the need for customization)
 Environmental Uncertainty
 Individual Differences or Organizational Preferences

The contingency approach defines not only patterns of internal interaction but
also suggests organization designs and management approaches most
appropriate for specific situations.

Advantages and Disadvantages of Contingency Theory

The primary advantages of contingency theory include:

 It provides a realistic view of management and organization.

 It discards the universal validity of principles.
 Managers are situation-oriented and not stereotyped.
 Lends itself to an innovative and creative management style.
The negatives of contingency theory include:

 It does not have a theoretical base.

 Executive is expected to know all the alternative courses of action
before taking action in a situation that is not always feasible.
 It does not prescribe a course of action.
 A situation can be influenced by many factors. It is difficult to analyze
all these factors.
Who are the Primary Contributors to Contingency Theory?

Some of the primary contributors to contingency theory include:

 Burns and Stalker - In their work "Management of innovation" (1968),

they identified two types of organizational structures (Mechanistic and
Organic) and two categories of the environment (Stable and Dynamic).
 John Woodward - She analyzed the influence of technology on the
organization structure and observed that the type of technology used
for production, such as unit, small batches, large batches, mass
production, and continuous process of production. She also examined
how production shifts directly affected the span of control, use of
committees, participative decision making, and other structural
characteristics.
 J.W. Lorsch and P.R. Lawrence - In studies beginning in 1969, they
proposed that organizations functioning in a complex environment
adopted a much higher degree of differentiation and integration than
those operating in a simple environment. They identified as key issues:
environmental uncertainty and information flow. They advocated to
Focus on exploring and improving the organization's relationship with
the environment, which characterized by along a certainty-uncertainty
continuum.
 A SYSTEMS APPROACH TO MANAGEMENT
AIZAH S. MONTAÑER
A systems approach to management by a systems approach to
management is meant the study of a firm in its totality so that the men and
material resources of the firm can be organized to realize the firm's overall
objectives as efficiently as possible. This approach is now becoming essential
because of the growth of complexity of firms and the increasing potential of
automatic computers. The systems approach to management implies that
every manager should be much more precise about decision-making and
information flow. For this to be effective, a company should have an overall
system of corporate objectives. First a detailed systems study will be
necessary to decide on the best objectives and then subsidiary systems must
be set up to realize these objectives as efficiently as possible. This paper is
directed at senior management and is a simple attempt to emphasize the
urgent need to apply the systems approach, both in government and industry.
System Approach to Management: Definition, Features and Evaluation! In the
1960, an approach to management appeared which try to unify the prior
schools of thought. This approach is commonly known as 'Systems
Approach'. Its early contributors include Ludwing Von Bertalanfty, Lawrence J.
Henderson, W.G. Scott, Deniel Katz, Robert L. Kahn, W. Buckley and J.D.
Thompson. They viewed organisation as an organic and open system, which
is composed of interacting and interdependent parts, called subsystems. The
system approach is top took upon management as an organic and open
system, which is composed of interacting and interdependent parts, called
subsystems. The system approach is top took upon management as a system
or as "an organised whole" made up of sub- systems integrated into a unity or
orderly totality. Systems approach is based on the generalization that
everything is inter-related and inter- dependent. A system is composed of
related and dependent element which when in interaction, forms a unitary
whole. A system is simply an assemblage or combination of things or parts
forming a complex whole. One its most important characteristic is that it is
composed of hierarchy of sub-systems. That is the parts forming the major
system and so on. For example, the world can be considered-to be a system
in which various national economies are sub-systems. In turn, each national
economy is composed of its various industries, each industry is composed of
firms' and of course a firm can be considered a system composed of sub-
systems sudi as production, marketing, finance, accounting and so on.
Features of Systems Approach: (i) A system consists of interacting elements.
It is set of inter-related and inter-dependent parts arranged in a manner that
produces a unified whole. (in) The various sub-systems should be studied in
their inter-relationships rather, than in isolation from each other. (in) An
organisational system has a boundary that determines which parts are
internal and which are external. (iv) A system does not exist in a vacuum. It
receives information, material and energy from other systems as inputs.
These inputs undergo a transformation process within a system and leave the
system as output to other systems (v) An organisation is a dynamic system as
it is responsive to its environment. It is vulnerable to change in its
environment. In the systems approach, attention is paid towards the overall
effectiveness of the system rather than the effectiveness of the sub-systems.
The interdependence of the sub-systems is taken into account. The idea of
systems can be applied at an organisational level. In Appling system
concepts, organisations are taken into account and not only the objectives
and performances of different departments (sub-systems). The systems
approach is considered both general and specialised systems. The general
systems approach to management is mainly concerned with formal
organisations and the concepts are relating to technique of sociology,
psychology and philosophy. The specific management system includes the
analysis of organisational structure, information, planning and control
mechanism and job design, etc. As discussed earlier, system approach has
immense possibilities, "A system view point may provide the impetus to unify
management theory. By definitions, it could treat the various approaches such
as the process of quantitative and behavioural ones as sub-systems in an
overall theory of management. Thus, the systems approach may succeed
where the process approach has failed to lead management out of the theory
of jungle.” Systems theory is useful to management because it aims at
achieving the objectives and it views organisation as an open system. Chester
Barnard was the first person to utilize the systems approach in the field of
management. He feete that the executive must steer through by keeping a
balance between conflicting forces and events. A high order of responsible
leadership makes the executives effective. H. Simon viewed organisation as a
complex system of decision- making process. Evaluation of System
Approach: The systems approach assists in studying the functions of complex
organisations and has been utilized as the base for the new kinds of
organisations like project management organisation. It is possible to bring out
the inter- relations in various functions like planning, organising, directing and
controlling. This approach has an edge over the other approaches because it
is very close to reality. This approach is called abstract and vague. It cannot
be easily applied to large and complex organisations. Moreover, it does not
provide any tool and technique for managers.
MANAGEMENT TECHNIQUES
 MANAGEMENT BY OBJECTIVES
BAIMONA B. MACABAGO

What is Management by Objectives?

Management by objectives (MBO) is a strategic management model that aims
to improve the performance of an organization by clearly defining objectives
that are agreed to by both management and employees. According to the
theory, having a say in goal setting and action plans encourages participation
and commitment among employees, as well as aligning objectives across the
organization.

Understanding Management by Objectives (MBO)

Management by objectives (also known as management by planning) is the
establishment of a management information system (MIS) to compare actual
performance and achievements to the defined objectives. Practitioners claim
that the major benefits of MBO are that it improves employee motivation and
commitment and allows for better communication between management and
employees.
However, a cited weakness of MBO is that it unduly emphasizes the setting of
goals to attain objectives, rather than working on a systematic plan to do so.
Critics of MBO, such as W. Edwards Demming, argue that setting particular
goals like production targets leads workers to meet those targets by any
means necessary, including short-cuts that result in poor quality.

Management by Objectives in Practice

Management by objectives outlines five steps that organizations should use to
put the management technique into practice.
1. The first step is to either determine or revise organizational objectives
for the entire company. This broad overview should be derived from the
firm's mission and vision.
2. The second step is to translate the organizational objectives to
employees. In 1981, George T. Doran used the acronym SMART
(specific, measurable, acceptable, realistic, time-bound) to express the
concept.2
3. Step three is stimulating the participation of employees in setting
individual objectives. After the organization's objectives are shared with
employees, from the top to the bottom, employees should be
encouraged to help set their own objectives to achieve these larger
 organizational objectives. This gives employees greater motivation
since they have greater empowerment.
4. Step four involves monitoring the progress of employees. In step two, a
key component of the objectives was that they are measurable for
employees and managers to determine how well they are met.
5. The fifth step is to evaluate and reward employee progress. This step
includes honest feedback on what was achieved and not achieved for
each employee.

Advantages and Disadvantages of Management by Objectives

MBO comes with many advantages and disadvantages to a company's
success. The benefits include employees taking pride in their work with goals
that they know they can achieve. It also aligns employees with their strengths,
skills, and educational experiences. MBO also leads to increased
communication between management and employees. Assigning tailored
goals brings a sense of importance to employees, bringing loyalty to the firm.
And lastly, management can create goals that lead to the success of the
company.
Though there are plenty of benefits to MBO, there are some drawbacks and
limitations. As MBO is focused on goals and targets, it often ignores other
parts of a company, such as the culture of conduct, a healthy work ethos, and
areas for involvement and contribution. MBO puts increased strain on
employees to meet the goals in a specified time frame. In addition, if
management solely relies on MBO for all management responsibilities, it can
be problematic for areas that don't fit under MBO.
Goal of Management by Objectives
MBO uses a set of quantifiable or objective standards against which to
measure the performance of a company and its employees. By comparing
actual productivity to a given set of standards, managers can identify problem
areas and improve efficiency. Both management and workers know and agree
to these standards and their objectives.
 COST- BENEFIT ANALYSIS
ALNIYAH A. MACAPASER

 It is the process of comparing the projected or estimated costs and

benefits (or opportunities) associated with a project decision to
determine whether it makes sense from a business perspective.
 It involves tallying up all costs of a project or decision and subtracting
that amount from the total projected benefits of the project or decision.
 It is a form of data-driven decision-making most often utilized in
business, both at established companies and startups. The basic
principles and framework can be applied to virtually any decision-
making process, whether business-related or otherwise.
Categories of Cost:
1. Indirect Cost
Typically fixed expenses, such as utilities and rent, that contribute to
the overhead of conducting business.
2. Intangible Cost
These are any costs that are difficult to measure and quantify.
Examples may include decreases in productivity levels while a new
business process is rolled out, or reduced
3. Opportunity Costs
This refers to lost benefits, or opportunities, that arise when a business
pursues one product or strategy over another.
Categories of Benefits:
1) Direct
For example, increased revenue and sales generated from a new
product
2) Indirect
Such as increased customer interest in your business or brand
3) Intangible
For example, improved employee morale
4) Competitive
For example, being a first-mover within an industry or vertical
STEPS TO CONDUCT A COST-BENEFIT ANALYSIS:
Step 1: Establish a Framework for Your Analysis
 For your analysis to be as accurate as possible, you must first
establish the framework within which you’re conducting it.
 Identify the goals and objectives you’re trying to address with
the proposal.
 Decide what metric you’ll be using to measure and compare the
benefits and costs. To accurately compare the two, both your
 costs and benefits should be measured in the same “common
currency.”

Step 2: Identify Your Costs and Benefits

 Compile two separate lists of the: One of all of the projected
costs, and the other of the expected benefits of the
proposed project or action.
Step 3: Assign an Amount or Value to Each Cost and Benefit
 Assign an amount to each one. If you don’t give all the costs
and benefits a value, then it will be difficult to compare them
accurately.
Step 4: Tally the Total Value of Benefits and Costs and Compare
 Once every cost and benefit has a dollar amount next to it, you
can tally up each list and compare the two.
 If total benefits outnumber total costs, then there is a business
case for you to proceed with the project or decision. If total
costs outnumber total benefits, then you may want to
reconsider the proposal.
Advantage of Cost- Benefit Analysis:
 It is data-driven. It allows an individual or organization to evaluate a
decision or potential project free of opinions or personal biases.
 It makes decisions simpler because it reduces a decision to costs
versus benefits, the cost-benefit analysis can make them less complex.
 It can uncover hidden costs and benefits because it forces you to sit
down and outline every potential cost and benefit associated with a
project, which can help you uncover less-than-obvious factors, such as
indirect or intangible costs.
Disadvantage/ Limitations of Cost-Benefit Analysis:
 It’s difficult to predict all variables because it is challenging to
predict all the factors that may impact the outcome.
 It’s only as good as the data used to complete it because If you’re
relying on incomplete or inaccurate data to finish your cost-benefit
analysis, the results of the analysis will be similarly inaccurate or
incomplete.
 It’s better suited to short- and mid-length projects because it has
greater potential of missing the mark for longer timeframes. It typically
becomes more difficult to make accurate predictions the further out you
go.
 It removes the human element because it can be difficult to reconcile
moral or “human” perspectives with the business case.
 PERT-CPM
MERCADO, GITHER JAMES J.
PERT

PERT is an acronym for Program (Project) Evaluation and Review

Technique, in which planning, scheduling, organizing, coordinating
and controlling uncertain activities take place. The technique studies and
represents the tasks undertaken to complete a project, to identify the
least time for completing a task and the minimum time required to complete
the whole project. It was developed in the late 1950s. It is aimed to reduce
the time and cost of the project.

PERT uses time as a variable which represents the planned resource

application along with performance specification. In this technique, first of all,
the project is divided into activities and events. After that proper sequence is
ascertained, and a network is constructed. After that time needed in each
activity is calculated and the critical path (longest path connecting all the
events) is determined.

CPM

Developed in the late 1950s, Critical Path Method or CPM is an algorithm

used for planning, scheduling, coordination and control of activities in
a project. Here, it is assumed that the activity duration is fixed and certain.
CPM is used to compute the earliest and latest possible start time for
each activity.

The process differentiates the critical and non-critical activities to reduce the
time and avoid the queue generation in the process. The reason for the
identification of critical activities is that, if any activity is delayed, it will cause
the whole process to suffer. That is why it is named as Critical Path Method.

In this method, first of all, a list is prepared consisting of all the activities
needed to complete a project, followed by the computation of time required to
complete each activity. After that, the dependency between the activities is
determined. Here, ‘path’ is defined as a sequence of activities in a network.
The critical path is the path with the highest length.

Key Differences Between PERT and CPM

The most important differences between PERT and CPM are provided below:
 1. PERT is a project management technique, whereby planning,
scheduling, organizing, coordinating and controlling uncertain activities
are done. CPM is a statistical technique of project management in
which planning, scheduling, organizing, coordination and control of
well-defined activities take place.
2. PERT is a technique of planning and control of time. Unlike CPM,
which is a method to control costs and time.
3. While PERT is evolved as a research and development project, CPM
evolved as a construction project.
4. PERT is set according to events while CPM is aligned towards
activities.
5. A deterministic model is used in CPM. Conversely, PERT uses a
probabilistic model.
6. There are three times estimates in PERT, i.e. optimistic time (to), most
likely time, pessimistic time (tp). On the other hand, there is only
one estimate in CPM.
7. PERT technique is best suited for a high precision time estimate,
whereas CPM is appropriate for a reasonable time estimate.
8. PERT deals with unpredictable activities, but CPM deals with
predictable activities.
9. PERT is used where the nature of the job is non-repetitive. In contrast
to, CPM involves the job of repetitive nature.
10. There is a demarcation between critical and non-critical activities in
CPM, which is not in the case of PERT.
11. PERT is best for research and development projects, but CPM is for
non-research projects like construction projects.
12. Crashing is a compression technique applied to CPM, to shorten the
project duration, along with the least additional cost. The crashing
concept is not applicable to PERT.

The use of project planning and control techniques based on PERT or

CPM are now common in all types of civil engineering and
construction work, as well as for large developmental projects such
as the manufacture of aircraft, missiles, space vehicles, and large
mainframe computer systems.
Conclusion

The difference between these two project management tools is getting

blurred as the techniques are merged with the passage of time. That is why,
in most projects, they are being used as a single project. The primary point
that distinguishes PERT from CPM is that the former gives the extreme
importance of time, i.e. if the time is minimized, consequently the cost will also
be reduced. However, cost optimization is the basic element, in the latter.
 MANAGEMENT INFORMATION SYSTEM (MIS)
AL-RAJIE R. MINDALANO

Data as a general concept refers to the fact that something existing

information or knowledge is represented or coded in some form
suitable for better usage or processing.

Information knowledge obtained from investigation, study, or instruction.

System a set of principles or procedures according to which something

is done.

Information System is the information and communication

technology (ICT) that an organization uses.

a computerized information-processing system designed to support the

activities of organizational management.

MIS BACKGROUND

A. Origin of Management Information Systems – industrial exhibition of

Paris in 1801, Joseph Marie Charles Jacquard introduced the world to
punch cards.
B. The Creation of Punch Card Systems looms create a complex
pattern in cloth, you had to know – and remember the order that
different color threads were to be weaved into the fabric.
C. Evolution of Punch Cards – By 1911, IBM emerged, then called the
Computing-Tabulating-Recording Company. By this time, punch cards
were used for recording and storing all sorts of information.
D. The Emergence of MIS in Computers – computers began to emerge
in the 1940s and 1950s, punch cards 1970’s were replaced by
magnetic storage media like tapes and disks.
E. MIS Developing Beyond Accounting – From the 1970s to early
1990s, as computers became smaller, faster and more affordable, MIS
developed beyond accounting to other business areas, like inventory
systems, sales, marketing, manufacturing processes and engineering.

EVOLUTION OF MIS
THE FIVE ERAS OF MIS

First Era (mid-1960s to mid-1970s)

During the first years of computerized MIS, information systems were
centralized and concerned solely with governance and the needs of
management. Most information systems and their reports were under the
control of accounting departments. Technology included third-generation
mainframe computers, like the IBM 360. Languages included Assembler,
Fortran, COBO and Database e. Ethernet networks were developed during
this time.
Second Era (mid-1970s to mid-1980s)
While MIS was still mainly concerned with governance and the needs of
management, more departments were beginning to benefit from the
technology. In many companies, steering committees and user-led initiatives
determined the shape and scope of additional IS projects . Technology
included the first personal computers (PCs), minicomputers and mid-range
computers.

Third Era (mid-1980s to late 1990s)

During the third era, centralized information systems began to spread out and
information became decentralized. Each department had its own computer
system. Managing information was often referred to as “herding cats.” It was
during this era that a new position emerged in many companies to oversee
the acquisition and management of multiple information systems: the Chief
Information Officer, or CIO. Technology during this era included
internetworking and the beginning of the internet.

Fourth Era (late 1990s to today)

During the current era, information systems are still tightly tied to governance
and management, however the systems are widely distributed, within the
reach of nearly every employee who needs it across multiple platforms. Many
information systems are integrated between different companies so that a
client business can readily access supplier information and their customers, in
turn, can access that information. Technology now includes social media,
search engines and ubiquitous computing through a variety of platforms
including laptops, tablets and smartphones.

Fifth Era (today forward)

The increase in internet bandwidth over recent years has led to a substantial
reliance on cloud computing. As a result, some maintain that this marks a new
era in worker’s ascendancy and that we are now in a fifth era for management
information systems. Today, practically any employee is now in a position to
make informed decisions with tool that are readily available across multiple
platforms. Furthermore, the line between who produces and who consumes
MIS information is increasingly blurred.

CENTRALIZED DATA PROCESSING

When computers began to emerge in the 1940’s and 1950’s, punch cards
were still a big part of information systems. They continued to play a role until
the 1970’s when they were replaced by magnetic storage media like tapes
and disks. These storage devices greatly increased the speed of calculating
data and compiling it into reports could now be done in a fraction of the time it
would have taken before.
Centralized Data Processing was characterized by batch processing - that is
transactions were stored and process all at one time, this limited any MIS
usage.

WHAT IS CENTRALIZATION?
MAMAINTE, ABDUL JALIL B.

Centralization refers to the process in which activities involving

planning and decision-making within an organization are concentrated to a
specific leader or location. In a centralized organization, the decision-making
powers are retained in the head office, and all other offices receive
commands from the main office. The executives and specialists who make
critical decisions are based in the head office.

Similarly, in a centralized government structure, the decision-making

authority is concentrated at the top, and all other lower levels follow the
directions coming from the top of the organization structure.

Advantage of Centralization

1. A clear chain of command

A centralized organization benefits from a clear chain of command because

every person within the organization knows who to report to. Junior
employees know who to approach whenever they have concerns about the
organization. On the other hand, senior executives follow a clear plan of
delegating authority to employees who excel in specific functions. The
executives also gain the confidence that when they delegate responsibilities
to mid-level managers and other employees, there will be no overlap. A clear
chain of command is beneficial when the organization needs to execute
decisions quickly and in a unified manner.

2. Focused Vision

When an organization follows a centralized management structure, it can

focus on the fulfillment of its vision with ease. There are clear lines of
communication and the senior executive can communicate the organization’s
vision to employees and guide them toward the achievement of the vision. In
the absence of centralized management, there will be inconsistencies in
relaying the message to employees because there are no clear lines of
authority. Directing the organization’s vision from the top allows for a smooth
implementation of its visions and strategies. The
organization’s stakeholders such as customers, suppliers, and communities
also receive a uniform message.

3. Reduced Costs

A centralized organization adheres to standard procedures and methods that

guide the organization, which helps reduce office and administrative costs.
The main decision-makers are housed at the company’s head office or
headquarters, and therefore, there is no need for deploying more departments
and equipment to other branches. Also, the organization does not need to
incur extra costs to hire specialists for its branches since critical decisions are
made at the head office and then communicated to the branches. The clear
chain of command reduces duplication of responsibilities that may result in
additional costs to the organization.

4. Quick implementation of decisions

In a centralized organization, decisions are made by a small group of people

and then communicated to the lower-level managers. The involvement of only
a few people makes the decision-making process more efficient since they
can discuss the details of each decision in one meeting. The decisions are
then communicated to the lower levels of the organization for implementation.
If lower-level managers are involved in the decision-making process, the
process will take longer and conflicts will arise. That will make the
implementation process lengthy and complicated because some managers
may object to the decisions if their input is ignored.

5. Improved quality of work

The standardized procedures and better supervision in a centralized

organization result in improved quality of work. There are supervisors in each
department who ensure that the outputs are uniform and of high quality. The
use of advanced equipment reduces potential wastage from manual work and
also helps guarantee high-quality work. Standardization of work also reduces
the replication of tasks that may result in high labor costs.

Disadvantages of Centralization
1. Bureaucratic leadership
Centralized management resembles a dictatorial form of leadership where
employees are only expected to deliver results according to what the top
executives assign them. Employees are unable to contribute to the decision-
making process of the organization, and they are merely implementers of
decisions made at a higher level. When the employees face difficulties in
implementing some of the decisions, the executives will not understand
because they are only decision-makers and not implementers of the
decisions. The result of such actions is a decline in performance because the
employees lack the motivation to implement decisions taken by top-level
managers without the input of lower-level employees.
2. Remote control

The organization’s executives are under tremendous pressure to formulate

decisions for the organization, and they lack control over the implementation
process. The failure of executives to decentralize the decision-making
process adds a lot of work to their desks. The executives suffer from a lack of
time to supervise the implementation of the decisions. This leads to
reluctance on the part of employees. Therefore, the executives may end up
making too many decisions that are either poorly implemented or ignored by
the employees.

3. Delays in work

Centralization results in delays in work as records are sent to and from the
head office. Employees rely on the information communicated to them from
the top, and there will be a loss in man-hours if there are delays in relaying
the records. This means that the employees will be less productive if they
need to wait long periods to get guidance on their next projects.

4. Lack of employee loyalty

Employees become loyal to an organization when they are allowed personal

initiatives in the work they do. They can introduce their creativity and suggest
ways of performing certain tasks. However, in centralization, there is no
initiative in work because employees perform tasks conceptualized by top
executives. This limits their creativity and loyalty to the organization due to the
rigidity of the work.

Summary
Centralization refers to a setup in which the decision-making powers are
concentrated in a few leaders at the top of the organizational structure.
Decisions are made at the top and communicated to lower-level managers for
implementation.

DECENTRALIZATION BY DEVOLUTION
MOH ZACKIER S. MUSA

RATIONALE

 Pursuant to Section 2 (a) of Republic Act (RA) No. 7160 or the Local
Government Code of 1991 (LGC), the State shall provide for a more
responsive and accountable local government structure instituted
through a system of decentralization whereby local government units
(LGUs) shall be given more powers, authority, responsibilities, and
resources. The process of decentralization shall proceed from the
National Government (NG) to the LGUs.

Guiding Principles

1. Local governments are primarily responsible for providing direct service

delivery to their constituencies and will assume greater responsibility
and accountability in ensuring the quality of devolved services.
2. Local governments are expected to strengthen their capacity to
exercise stewardship of their increased fiscal resources; enhance their
organizational capability for service delivery: and institute transparent,
accountable, and participatory mechanisms to better achieve national
and local development objectives.
3. Local governments are expected to strengthen their capacity to
exercise stewardship of their increased fiscal resources; enhance their
organizational capability for service delivery: and institute transparent,
accountable, and participatory mechanisms to better achieve national
and local development objectives.

LGU Devolution Transition Plans

 Pursuant to Section 10 of EO No. 138, s. 2021 and Section 15, Rule V

of its Implementing Rules and Regulations (IRR), all provinces, cities,
municipalities, and barangays shall prepare their respective DTPs for
the following purposes;

a) It shall serve as a handy reference in carrying out organizational

strengthening efforts and upgrading of institutional capacities in
the next three (3) years, i.e., from FY 2022-2024, and in
monitoring the progress of the transition towards full assumption
of devolved responsibilities.
 b) The DTP shall also be a primary consideration in the formulation
of the successor local development plans and investment
programs, particularly in identifying and implementing priority
programs and activities relative to the devolved functions and
services;

 To foster the alignment of priorities and complementation of resources,

the LGUs shall use their DTPs to influence the design of the devolution
transition activities of the NGAs concerned, and direct NGA support
along the capacity requirements of the LGUs;

 To leverage support from other governance stakeholders including

NGOs, CSOs, POs, business sector, and academic institutions as the
LGUs engage them for cooperative undertakings during the devolution
transition period, particularly on the areas of capacity building, service
delivery, and livelihood development; and
 To leverage support from other governance stakeholders including
NGOs, CSOs, POs, business sector, and academic institutions as the
LGUs engage them for cooperative undertakings during the devolution
transition period, particularly on the areas of capacity building, service
delivery, and livelihood development.

Preparation of the LGU Devolution Transition Plan

The LGU DTP preparation shall be undertaken in close coordination with the
NGAs concerned, especially with regard to devolved functions and services
critical to them. The provinces, cities, municipalities, and barangays shall be
guided by the following:

 The Local Chief Executive (LCE) concerned shall (i) spearhead the
preparation of the LGU DTPs and ensure that this is approved within
the timeframe indicated in this JMC; and (ii) organize the LGU
Devolution Transition Committee (LGU DTC) which shall be
responsible for the preparation of the LGU DTP and in monitoring the
implementation thereof.
 The LGU DTC shall have the following minimum composition and the
LGU may expand the membership of the LGU DTC when
representation of relevant public officials/experts are deemed
necessary:

For the provinces, cities, and municipalities:

i. The LCE as Chair;
ii. A regular member of the Local Sanggunian ;
iii. Members of the Local Finance Committee (Planning and Development
Coordinator, Treasurer, Budget Officer);
iv. Local Administrator;
v. President of the Liga ng mga Barangay; and
vi. At least two (2) representatives from CSOs and POs that are members
of the Local Development Council (LDC).
For the barangays:
i. Punong Barangay as Chair;
ii. Barangay Secretary:
iii. Barangay Treasurer;
iv. A regular member of the Local Sanggunian; and
v. At least two (2) representatives from CSOs and POs that are members
of the Barangay Development Council (BDC).

 Subject to their development priorities, capacities, and resources, and

with reference to NGA DTPs, the LCDs shall (i) identify the functions,
services, and facilities to be fully assumed and programs, projects and
activities (PPAs) to be devolved by NGAs concerned; (ii) prioritize
which of these needs scaling-up; and (iii) adopt a phased approach,
from FY 2022-2024, toward full assumption of these devolved
responsibilities.

 The full assumption of devolved functions and services by the LGUs

may require modification of their organizational structure and
competency requirements, that will consequently entail updating of
their Organizational Structure and Staffing Pattern (OSSP) and
Capacity Development (CapDev) Agenda.

 Provincial, city and municipal governments are enjoined to prepare an

addendum to their OSSP for additional personnel complement to
perform the new or expanded roles and responsibilities. LGUs may
also seek the guidance and assistance of the DBM and Civil Service
Commission (CSC) pursuant to Section 19 of CSC Memorandum
Circular (MC) No. 19, dated 7 May 19923 in the updating of their
OSSP.

 Provincial, city and municipal governments are enjoined to prepare an

addendum to their OSSP for additional personnel complement to
perform the new or expanded roles and responsibilities. LGUs may
also seek the guidance and assistance of the DBM and Civil Service
Commission (CSC) pursuant to Section 19 of CSC Memorandum
Circular (MC) No. 19, dated 7 May 19923 in the updating of their
OSSP.

Roles and Responsibilities of the DILG, DBM, and Other NGAs

The DBM and the DILG, as Chair and Co-Chair of the Committee on
Devolution (ComDev), shall oversee and monitor the preparation and
implementation of the LGU DTPS.

 The DILG Central Office (CO) shall issue supplementary policies and
institute the necessary systems and mechanisms to further guide and
facilitate the implementation of devolution transition activities.
 The DILG ROs shall organize the DILG DTP Core Team at the
provincial level that shall;
 1. Guide LGUs in the overall preparation of their DTPs;
2. Review and consolidate the capacity development requirements
of LGUs at the provincial level;
3. Facilitate convergence and dialogues between LGUs and NGAs
concerned especially during the preparation of the LGU dtps;
and
4. Monitor the following:
i. Progress of DTP preparation of LGUs within their
respective jurisdiction;
ii. Submission through the link provided in Section 7.4 within
the period prescribed in Section 7.1 of this JMC; and
iii. Completeness and compliance of the LGU DTPS to
prescribed templates.

 The LGA shall:

1. Oversee the conduct of capacity development interventions for

LGUs and shall develop the appropriate mechanism to ensure
efficient, effective, and cost-effective utilization of NG resources
on this effort;

2. Take the lead in the harmonization of all capacity development

interventions by the DBM, NEDA, DOF, other NGAs, DAP, and
third-party service providers for the LGUs; and

3. Optimize the potential of the Local Governance National and

Regional Resource Centers as the convergence platform for
capacity development stakeholders.

 DBM
1. Consistent with Section 115 of RA No. 7160, the DBM shall
furnish the LCDs with budget information and polices that may
help in the preparation of their DTPs.
2. The DBM ROs may provide the LGUs with technical assistance
in the preparation of their OSSP.
 DECONCENTRATION
CHRISTOPHER S. OFONG

Deconcentration, is the term referring to: •

“The process by which the agents of central government control are relocated
and geographically dispersed” (Sayer et al.).
• “Administative decentralization, i.e. a transfer to lower-level central
government authorities, or to other local authorities who are upwardly
accountable to the central government” (Ribot 2002 in Larson).
• “The transfer of administrative responsibility for specified functions to lower
levels within the central government bureaucracy, generally on some spatial
basis” (Ferguson and Chandrasekharan).
• “One of administrative decentralization which redistributes decision-making
authority and financial and management responsibility among levels of the
central government; there is no real transfer of authority between levels of
government. It may involve only a shift of responsibilities from federal forest
service officials of the capital city to those stationed in provinces, districts, etc”
(Gregersen et al.).
Deconcentration is a term used to describe the process whereby a central
organization transfers some of its responsibilities to lower-level units within its
jurisdiction. This process redistributes the balance of power and authority
between the central administration and the other units in varying proportions
(Aucoin and Bakvis, 1988). A certain amount of confusion may arise from the
fact that in English-language literature deconcentration is often presented as
being a subcategory of administrative decentralization. However, it should be
kept in mind that the latter term refers to the transfer of responsibilities by a
central entity to peripheral bodies having their own legal personality, rather
than to those under its authority.

The potential for confusion is increased by the fact that deconcentration and
decentralization may take place simultaneously and interact in ways that
resist clear definition. That being said, it is generally recognized that, in
principle, the two processes should be implemented at the same time so that
they can mutually reinforce one another (Diederichs and Luben, 1995).
Deconcentration may be based on function – for example, when an
independent service unit is created by the central administration – or have a
geographical basis – for example, when a degree of decision-making capacity
is granted to various administrative units across a given territory (Gélinas,
1975; Cour des comptes, 2003).
The latter type of deconcentration receives more attention than the former in a
context where political and territorial decentralization is being promoted. The
advantages offered by deconcentration are similar in part to those associated
with decentralization: actions based on deeper knowledge of local
particularities and clienteles; decisions better adapted to local contexts and
taken more rapidly; and state-encouraged involvement and collaboration on
the part of local actors. On the other hand, deconcentration may also lead to
diminished uniformity, slackened control and the sidestepping of certain
issues, with units in the hierarchy trying to shift responsibility to one other.
Ultimately, the success of deconcentration depends largely on the degree of
autonomy enjoyed by the entities to which responsibilities have been
transferred. This autonomy can vary considerably along a continuum, with
centrally concentrated decision-making power at one end and, at the other,
independent decision-making powers granted to lower-level entities for
different aspects of management (e.g., organization, resources, activities,
external relations, etc.) (Aucoin and Bakvis, 1988). Front-line managers are
very aware that they do not all have the same amount of influence with
respect to these various aspects (Lonti, 2005).
DECONCENTRATION -The criteria used to frame choices concerning the
appropriate degree of autonomy are unable to produce hard-and-fast or
convergent prescriptions. However, according to Aucoin and Bakvis (1988),
the following criteria should be taken into account: coordination and
integration, uniformity and standardization, economies of scale, particularity
and specialization, flexibility and responsiveness, and efficiency and
effectiveness. In applying these criteria, consideration should be given to
available technologies, especially those related to information and
communications, and to the organizational culture and distinctive
characteristics of each territory. The implementation of any deconcentration
process may meet with resistance from two main sources (Brown, 1986;
Aucoin and Bakvis, 1988).
The first is the central administration, in which various units may be reticent
about losing control and public servants may feel anxious about losing the
advantages of their location and professional mobility.
The second is related to the workings of the political system, in which the
principle of ministerial responsibility, coupled with direct relations between
elected officials at various levels, encourage central government leaders to
closely monitor all developments occurring across the territory.The media
tend to reinforce this trend and thus to disregard local responsibilities.
Deconcentration is above all a process that is internal to each public
administration. When it is implemented among several ministries at the same
time and in a concerted fashion, the result may be a change in relations
between the central government and its lower-level units as well as better
integrated public action. For Albertini (1997), this process involves a “shift
from a type of deconcentration that is granted by a central administration, that
is sectoral in scope and that is instrumental in design toward a kind of
deconcentration that is assumed jointly by different levels of administration,
that is interministerial in terms of content and that is managerial in terms of
method or approach.
The importance given to the concept of political and territorial decentralization
in society-wide debates, government policymaking and international agendas
probably explains to some extent the lack of research focused on
deconcentration in comparison with decentralization.

This observation, which concerns the situation in France, could no doubt be

applied to other contexts. For instance, the coordination of regional public
action relies particularly on mechanisms for interministerial collaboration, such
as Quebec's regional administrative conferences (conférences administratives
régionales, or CARs). It also involves concerted action initiatives and the
mobilization of regional actors. This in turn requires the aligning of
deconcentrated entities with decentralized entities.
 DECENTRALIZATION BY
DE-BUREAUCRATIZATION/PRIVATIZATION
JENITO G. PASCUAL JR.

A. Definition of De-bureaucratization

 It is a form decentralization which involves the transfer of powers and

functions from the government to non-government organization
(NGO’s) and people’s organization (PO’s), including the private sector,
all of which are sometimes referred to collectively as the “civil society”.

 More recently, the concept has been broadened to include harnessing

the activities of various organizations in the voluntary sector. This
concept recognizes that development is not the job of the government
alone.

De-bureaucratization may be distinguished from two other concepts of

decentralization.

Devolution which involves the transfer of power and authority to a

lower level political or local government unit. The concept is thus political in
nature, and it is related to the notion of local autonomy.

Deconcentration which involves the transfer of powers and functions

to lower level administrative units designated by a national or a central office
or agency. It is thus largely administrative in nature and takes place within an
office or agency of government.

B. Rationale for De-bureaucratization

1. It allows for the greater involvement and participation of various

stakeholders and sectors of society in the affairs of the State. It is thus
consistent with the concept of participatory governance.

2. Civil society and the private sector could be the source of additional
resources that enable governments to meet increasing demand for
services and infrastructure,. The civil society and the private sector are
“complements” that extend the government’s service delivery system.

3. It promotes better coordination of actions and activities of the

government and non-government organizations. Separate action by the
 two sectors often create redundancies and missed opportunities for
optimizing the use of scarce resources; collaboration could greatly
improve the situation.

C. De-bureaucratization Modalities

Cooperatives. Cooperatives can position themselves to be the service

providers for certain (often poorer, informal) areas of a locality and
manage facilities in these areas. Often used in rural areas, in conjunction with
NGOs.

Service Contracts. Public authority retains overall responsibility for the

operation and maintenance (O&M) of the system, and contracts out
specific components. Service contracts last 1-3 years and include services
such as billing and maintenance of facilities.

Management Contracts. Public authority transfers responsibility for

the management of a full range of activities within a specific field, such as
O&M. Remuneration is based on key performance indicators. Public authority
typically finances working and investment capital and determines cost
recovery policy. Usually contracts last between three to five years.

Lease Contracts. Private operator rents the facilities from a public

authority and is responsible for O&M of the complete system and tariff
collection. Lessor effectively buys the right to the revenue stream and thus
shares significant commercial risks. Usually 5-15 years.

B O T (Build-Operate-Transfer) Usually used to procure large

discreet items of infrastructure that require significant finance. The private
operator is required to finance, construct, O&M the facility for a specific period
of time (usually more than 20 years) before transferring the facility back to the
public authority. Variations: BOT (Build, Own, Operate, Transfer) and BOO
(Build, Own Operate).

Joint Venture Agreements. Usually a joint business venture between

the government and the private sector. Both sectors contribute equity, agree
on a management structure and subsequently share in the revenues
generated. The equity contribution of government usually takes the form of a
public asset or property.

Concessions. Private operator takes responsibility for O&M and

investment; ownership of assets still rests with the public authority.
Concessions are substantial in scope (usually a whole city or region) and
tenders are usually bid on the tariff for 25-30 years.

Privatization/Divestiture. Full private ownership and responsibility

under a regulatory regime.
D. Roles of the State

De-bureaucratization does not connote a state or government in retreat.

Rather:

 It is a government that has a palpable presence in the economy and

society without dominating it.

 It is a strong entity that recognizes the sectors but does not overwhelm
them.

 It is a reinvented government that “steers but does not row.”

In the context of de-bureaucratization, the following roles of the State

become prominent:

1. As Enabler. The State provides the regulatory framework and

political order with which civil society and the private sector can plan and act.
Enabling mechanisms include just laws, a fair judicial system, politically
accountable lawmaking and an effective, reform-minded public bureaucracy.

2. As Facilitator. In this role, the State renders easier the

performance of (an action), the attainment of (a result), to afford facilities for,
and help forward (a process). As facilitator, the State provides resources to
assist markets and communities. In the context of de-bureaucratization, the
following roles of the State become prominent:

3. As Regulator. In this role, the government or the State sets out the
rules and the performance standards under which the civil society and the
private sector should operate. It is exercised to maximize welfare, and to
protect the interests of the public, especially of the disadvantaged sectors of
society.

4. As Collaborator. In this role, the government becomes a partner of

the private sector. Partnership does not only come in the delivery process, but
in phases of community organization, including planning, fund-raising, social
preparation and other processes. As partners, both sides may agree to
contribute toward a common program or project, based on comparative
advantages of each.

Privatization in the Philippines has gained legitimacy in the light of two

factors: 1) the inefficiencies and politicization of state-owned enterprises and
2) the perennial problem of low revenues and growing spending. However,
privatization is also being advanced as part of an ideological offensive to
reduce the size and scope of government. This paper raises the privatization
level of principle in a quite distinct view of treating privatization as a policy
instrument. It addresses contextual issues relating to efficiency, public
revenue, and social welfare. But it is also a truism that privatization is not a
panacea. It concludes that dogmatic view that the state and parastatals are
inherently inefficient.

FORMULATION OF THE PHILIPPINE PRIVATIZATION PROGRAM

The concept and policy formulation of the Philippine privatization

program began in the early 1980s in the aftermath of the 1983. Economic
crisis that was spawned by the assassination of former Senator Benigno
Aquino. The program was formalized as part of the World Bank (WB)
Structural Adjustment Loan (SAL) for the public sector in 1984. 2 The
International Monetary Fund (IMF) li kewise incorporated privatization as a
requirement of its own stabilization loan package to the Philippines. In the
"Enhanced Monitoring Scheme," the progress of privatization was monitored
in I MF's annual review of the Philippine's economic and monetary
performance.

The foundation of the Philippine privatization program was established

in the last years of the Marcos Administration. An extensive study of state-
owned enterprises (SOEs) and their role in national development was carried
out by the Presidential Commission of Reorganization which was chaired by
Armand Fabella (the present Philippine Secretary of Education). The results
of this study were two presidential decrees (PDs), PD 2029 and PD 2030,
both of which are dated February 4, 1986. PD 2029 laid down the guidelines
for the creation and regulation of government-owned and -controlled
corporations (GOCCs), while PD 2030 provided for the orderly disposition of
certain assets of government institutions and provided the legal basis for the
transfer of GOCCs that were deemed not essential to the operations of
government to private hands. This decree became the basis of President
Corazon C. Aquino's Proclamation No. 50, dated December 8, 1986, which
formalized the Philippine Privatization Program.

Proclamation No. 50 launched a program for the speedy disposition

and privatization of certain government corporations and assets. The law also
created the two bodies that would spearhead the program, i.e., the Committee
on Privatization (COP) and the Asset Privatization Trust (APT). The COP is a
cabinet-level committee headed by the Secretary of Finance that decides
which assets the APT is to sell. COP approval is required for all privatizations,
whether recommended by the APT or other "disposition entities" (these are
usually the government agencies which had previously administered the
GOCCs slated for privatization; they continued to be responsible for the
GOCCs administration/privatization until such time as the COP assigned the
task to the APT).

The APT, on the other hand, was created to act solely as a trustee of
the national government with respect to assets assigned for privatization. The
focus of the APT is mainly the "reprivatization" of nonperforming assets that
have been transferred to the government as a result of rehabilitation programs
of two stateowned banks, the Philippine National Bank (PNB) and the
Development Bank of the Philippines (DNP). 3 The proceeds from the sale of
these nonperforming assets helped to fund the government's Comprehensive
Agrarian Reform Program (CARP).

At the start of the program in 1987, 419 nonperforming assets and 27

GOCCs were assigned by the COP to the APT for privatization. Of these 446
assets, however, 44 assets were common to more than one transferring
agency (i.e., it had been indebted to more than one government agency).
Thus, APT's total portfolio was actually 402 assets, the bulk of which were
transferred from the two state-owned banks.

As of June 30, 1993, the program had generated some P56 billion
(US$2.05 billion) for the government with the bulk coming from the APT's
disposal of some 305 assets at over P34 billion. Among the large GOCCs that
were fully privatized are the Commercial Bank of Manila, the Philippine Plaza
Hotel, Marina 4 Properties, and the Philippine Airlines (the government now
holds a minority share). Partially privatized were the Union Bank, the
Philippine National Bank, the National Shipping Corporation, and the
International Corporate Bank. In fact, as noted by the World Bank, the
program was "i mplemented successfully with more than 60 percent of public
assets identified for the first stage of privatization having already been offered
for sale.

The major thrust of the program, however, which was the "privatization,
restructuring, rationalization and divestment of government corporations and
their subsidiaries that have proliferated during the Marcos regime," has not
been fully realized. After seven years of operation, the bulk of COP approvals
have been in the reprivatization of the more attractive nonperforming assets in
the APT's portfolio. Of the 122 GOCCs slated for privatization, only 85 had
been sold by mid-1993.

The APT's remaining task is the sale/settlement of 162 assets that

remain in its portfolio. Of these assets, 65 have already been partially
disposed of (see Table 2). Now in its final year, the APT is working on a P2
billion sales target. For the first semester of 1993, the APT disposed/settled
24 assets worth P1.66 billion or 83 percent of its goal for the final year.

CONCLUDING REMARKS

“The role of governments in pursuing decentralized, participatory and people-

centered development has through the years shifted from being the main
player to that of enabler, facilitator, partner, and regulator. To attain its
positive promise, countries in the Pacific rim and beyond must move towards
development that uplifts the human beings of this generation and others.”
“The emerging consensus is that all sectors of the society -- the State, the
market, the citizenry -- must find their appropriate places in this challenging
adventure. The role of the State is crucial as it is being called upon to provide
an enabling and facilitating environment for the attainment of such people-
centered development.”

REORGANIZATION TECHNIQUE
PANGARUNGAN MIKKO P. PACASUM
Define the problem.
Determine whether existing jobs and structures are meeting goals.
 Reorganization, or business restructuring, is a process where a
company does an overhaul of its current strategy, setup, and
operations. Typically, businesses go through reorganization when they
have financial troubles, new owners or staff, or a structural change.
When a business reorganizes, it generally wants an effective and
efficient way of handling things.
 In addition to a tax structure change, businesses that reorganize may
change up their marketing strategies, staff, products or services, or
business name.
 If your business is struggling, don’t ignore the warning signs. A
successful company restructure can result in increased profits,
operational efficiency, and debt paydown.
 However, business reorganization efforts don’t always work. Ineffective
reorganization may lead to bankruptcy. And, businesses that go
through bankruptcy reorganization might end up going through
liquidation.
 Reorganizations might be voluntary or mandatory, depending on the
circumstances.
Consider what factors contribute to effectiveness of jobs and structure.
Identify methods for collecting input from staff.
 Verbal, written, and computer surveys
 Problem-solving teams
 Review committees
Identify a new structure or model that will support your goals, including:
  distribution of functions throughout the organization (definition of
functions to be performed, groupings of functions, and the relationships
among functions)
 Vertical and horizontal authority relationships
 Communication/decision-making process (how formal decisions are
made and by whom, and the information system established for
decision-making)
 Internal departmental policies (the decisions, rules, or guidelines
established in production, personnel, purchasing, research and
development, and other areas)
 The attributes of department employees (includes abilities, skills,
experience, and other behavioral issues)

Develop a reorganization proposal, including:

 Timeframe
 Reasons for reorganization
 Before and after organization charts
 Job descriptions for new, changed positions
 Names, titles of employees to be affected by changed or eliminated
jobs, new reporting lines, physical relocation, or reduction in time
 Review of Affirmative Action impact
 Order of potential layoffs for career positions based on seniority points
 Notices to go to unions
A communication plan
 Identify the different groups who will need communication and the
different messages/information they will need
 Determine series of review and update meetings with management
 Determine schedule of informational meetings with staff
 Plan communications outside department to announce reorganization
 Set up individual meetings with employees projected for layoff and for
those employees whose jobs will change significantly
Determine skills needed for each position.
Compare current skills with what is needed.
Determine training needs and resources.
Design and implement training.
Review, reassess, and gather input during implementation.
Determine methods to get feedback during implementation.
Include systems that will provide regular feedback from management, staff,
and client groups.
Build an effective team
Clarify mission, goals, and standards for success.

NEW PUBLIC MANAGEMENT AND REINVENTING

GOVERNMENT
RENAN V. QUIMSING

The ideas of “new public management” and “reinventing government” were

essentially born out of the continuing search for solutions to economic
problems in 1970s and to produce a government that “works better but costs
less.”

The New Public Management (NPM) movement has started in the late 1970s
in UK under the Thatcher government; however aside from England, NPM
has also long been practiced by the other members of the Organization for
Economic Cooperation and Development (OECD) mostly Anglo- Saxon
countries like New Zealand, Australia, Germany, the Netherlands, and
Canada in the 1980s. The idea of NPM became more popular and has
stimulated academic and political interests worldwide when Christopher Hood
coined the term in his 1991 article entitled, “A Public Management for all
Seasons.”

Public Management Policies

Public management policies are techniques in governing organizations

comprising the core public sector; equally they are seen as tools for pursuing
such policy aims in improving governmental bureaucracies more efficient,
transparent, smaller, responsive or innovative.

Seen from the perspective of program managers public management are

rules of the game for acquiring and utilizing financial, human, material, and
informational materials often public management policies are viewed of
program managers as sources of perverse incentive or unnecessary
constraints that diminish the efficiency and effectiveness of program
operation.

New Public Management and Reinventing Government (1980s to 1990s)

In the 1980s and early 90s, as if there was a collective assault on the
organization questioning conventional and traditional ways of doing things –
both in the private and public sectors - various strategies and modalities
underscoring the imperative for fundamental internal and external reform in
the organization emerged. They ranged from being more “client” or “customer”
oriented, to the decentralization of authority to being more “business oriented”
especially for those in government.

The new public management (NPM) movement was apparently practiced by

the European countries in the late 1907s and 1980s but was essentially
launched several luminaries such as Christopher Hood, Christopher Pollitt,
and Michael Barzeley, among others in early 90s.

Similar movements such as reinventing government and reengineering also

emerged around the same time.

Reinventing Government

The idea of “reinventing government” was advanced by Osborne and Gaebler

in 1992. Their concept of NPM was sparked by the use of business model
prescriptions for government: using private sector innovation, resources, and
organizational ideas to improve the public sector. they integrate hundreds of
examples of these initiatives into a basically new concept of how government
should function.

Reinventing Government provided ten principles through which public

entrepreneurs might bring about massive governmental reform principles that
has remained at the core of the new public management.

Osborne and Gaebler suggest that governments should:

1) steer, not row

2) empower communities to solve their own problems rather than simply
deliver services
3) encourage competition rather than monopolies
4) be driven by missions, rather than rules
5) be results-oriented by funding outcomes rather than inputs
6) meet the needs of the customer, not the bureaucracy
7) concentrate on earning money rather than spending it
8) invest in preventing problems rather than curing crises
9) decentralize authority
 10)solve problems by influencing market forces rather than creating public
programs.

Osborne and Gaebler insist that this book does not offer original ideas.
Rather, it is a comprehensive compilation of the ideas and experiences of
innovative practitioners and activists across the country. They are careful to
point out that while much of what is discussed in the book could be summed
up under the category of market-oriented government, markets are only half
the answer. Markets are impersonal, unforgiving, and, even under the most
structured circumstances, inequitable, they point out. As such, they must be
coupled with "the warmth and caring of families and neighborhoods and
communities." They conclude that entrepreneurial governments must
embrace both markets and community as they begin to shift away from
administrative bureaucracies.

PRESIDENTIAL FEDERATED GOVERNANCE

CARMENCITA L. VIOLON

President Rodrigo Duterte's consultative body on charter change has opted

for a shift from the present unitary-presidential system of government to
federal-presidential system.

What is Federal Government?

A federal government is a system of dividing up power between a
central national government and local state governments that are connected
to one another by the national government. Some areas of public life are
under the control of the national government, and some areas are under
control of the local governments

There are 2 level of government in one system

- Federal level
- Regional or State level of Government

In Federal Government, all the important things or national concerns

will be address by the
federal government under the president, these include national security,
monetary policy, and foreign relations, among others. Lawyer Raul Lambino
said but for domestic or state issues and functions, will be handled by regional
or state governments. These issues include concerns about marital laws and
the criminal justice system
 In Unilateral Government all problems, the solution will be coming from
the central (centralization) but in federal government mostly of the functions /
power will be decentralized, downloaded to the Regional or state level.

What is a Federal – Presidential System of Government?

Under the proposed system, the president will serve as both head of
state and head of government. The country will also keep the current set-up of
the national government, where there are 3 main branches: the executive,
legislative, and judiciary. However, instead of centralizing power with the
national government, the country will now have individual states with their own
federal legislature and state governments.

According to Professor Edmund Tayao, a member of the advisory

body, said that half of the assembly will be composed of legislators selected
through a system of proportional representation or their political party. The
other half, will be composed of representatives from legislative districts.

The Presidential System

The Philippines is one of the countries with a presidential form of
government together with South Korea, Indonesia, Nigeria, most South
American nations and the US, which is the pioneer. Under this political
system, the President is both head of state and head of government. The
incumbent for the position is elected nationwide on timing that has been
predetermined in the Constitution. Thus, in the presidential system, the
President is said to enjoy a direct mandate from the people. There is a fixed
term of office for the President, which may be reelected depending on the
country adopting the system. The executive branch, which the President
heads, is distinct from the legislative and judicial branches of government,
which are all independent of one other. This separation of powers serves to
check and to balance certain actuations of either branch of government. While
the members of the legislature are elected, the members of the Cabinet are
appointed by the President and may require the confirmation or consent of the
legislative branch. The formulation, amendment and review of legislation are
the sole purview of the legislature. However, on many occasions, the
executive could endorse a legislative agenda for consideration and veto a bill
that was passed in the legislature. The latter, nonetheless, could overturn it
via a two-thirds vote. When it comes to the difficult process of removing a
President, often the only legal way is through an impeachment process that is
undertaken in the legislative branch.

Benefits of A Federal Government

The United States have a federal government but why not Great Britain? The
answer has to do with size. Federal governments are best used in large
countries where there exists a diverse group of people with diverse needs but
a common culture that unites them together.
For example, think of the difference between Wyoming (the least densely
populated state) and New Jersey (the most densely populated state). Clearly,
the needs at the local level of each state will be different, so they should have
different local governments to address those needs. Nonetheless, both states
share a common culture and interest and, therefore, are united by the national
government.
Federal governments help address the wide variety of needs of a
geographically large country. It is no wonder, then, that federal governments
exist in large countries, like the United States, Mexico, Germany, Canada ,
Australia, Brazil, and others.
 PARLIAMENTARY FEDERATED GOVERNMENT
RUSTY J. VILO
Federal government is a system of dividing up power between a central
national government and local state governments that are connected to one
another by the national government. Some areas of public life are under the
control of the national government, and some areas are under control of the
local governments. For this reason, cop films like to create drama by making
the federal government and local government bump heads over who should
be investigating the crime at hand. Federal government systems usually have
a constitution that specifies what areas of public life the national government
will take control over and what areas of public life the state governments will
take control over.
Parliamentary system, democratic form of government in which the party (or a
coalition of parties) with the greatest representation in the parliament
(legislature) forms the government, its leader becoming prime minister or
chancellor. Executive functions are exercised by members of the parliament
appointed by the prime minister to the cabinet. The parties in the minority
serve in opposition to the majority and have the duty to challenge it regularly.
Prime ministers may be removed from power whenever they lose the
confidence of a majority of the ruling party or of the parliament. The
parliamentary system originated in Britain and was adopted in several of its
former colonies.

A federal parliamentary republic refers to a federation of states with a

republican form of government that is, more or less, dependent upon the
confidence of parliaments at both the national and sub-national levels. It is a
combination of the government republic and the parliamentary republic.

List of Federal Parliamentary Republics

1. Austria
2. Ethiopia
3. Germany
4. India
5. Iraq
6. Micronesia
7. Nepal
 8. Pakistan
9. Somalia
10. Switzerland

AUTOMATED GOVERNANCE/E-GOVERNANCE
JESSIEMAE D. VILLALOBOS

What is e-Governance?
eGovernance several dimension and related factors influence the
definition of egovernance. The word “electronic” in the term e-
Governance implies technology driven governance.
E-Governance is the application of information and communication
technology (ICT) for delivering government services of information
communication transactions, integration various stand-one systems
and services between Government-to-citizens (G2C), Government-to-
Business (G2B), Government-to-Government (G2G) as well as back
office processes and interactions within the entire government frame
work.
Refers to the use by government agencies of information and
communication technologies (ICT) that have the ability to transform
relations with citizens, business, government employees and other
arms of government in the delivery of services.
A tool by which limitations of time, distance and cost are reduced,
thereby enhancing citizens access to government services.

CLASSIFICATION OF e-Government According to where ICT solution

is applied

Internal ICT Solutions for Government to

applications for e- streaming in-house Employee (G2E)
government processes. Processes Includes services such
such as data as internal information
encoding, retrieval, on demand; reports via
document processing, laptop or palm,
data transfer and information systems for
other administrative timing-in and checking
 tasks all exist in a of attendance, on filed
government agency. data logging and
These tasks may be remote data uploads
accomplished more and downloads.
efficiently through the
introduction of ICT Governement to
solutions. Government (G2G)
examples of G2G are
inter-office
teleconferencing, wide
area networks for
geographically
displaced offices,
centralized clearance,
licensing or
accreditation from
various office.
Front-line ICT Act as interface Government to
applications for e- between the Citizen (G2C) are all
government Government and services wherein the
Citizens or business. citizens interact with
Front line applications the government
interact or transact through ICT. These
with the Citizen via include information or
electronic media transaction accessible
via websites,
processing of
applications via kiosks,
agency hotlines or call
centers, online voting
or council meetings,
government payments
with commercial banks,
application status
updates via landline or
mobile phone, and the
like.

Government to
Business (G2B)
Philippines e-
Procurement. EPS
currently serves as the
official system for
public bidding
opportunities by the
Philippine government.
Eventually, the system
will be extended to
 support other aspects
of the procurement
process including direct
purchases, bid
submission, central
accreditation and
payments.

5 STAGES OF e-GOVERNMENT
BORROWING TECHNIQUES FOR DEVELOPMENT FOR
COVID-19 PANDEMIC
HADJAR M. SARIP

DEFINITION OF TERMS
BORROWING
• It means to receive something with the implied or expressed intention
of returning the item or its equivalent. The borrower is the person to
whom a loan is made by a lender. 
• to take and use (something that belongs to someone else) for a period
of time before returning it.
• to take and use up (something) with the promise to give back
something of equal value. :
• to use (an idea, saying, etc.)
TECHNIQUES
• the manner in which technical details are treated (as by a writer) or
basic physical movements are used (as by a dancer)
• ability to treat such details or use such movements good piano
technique.
• a body of technical methods (as in a craft or in scientific research)
• A technique is a method of doing some task or performing something.
Your technique for opening drinks might be to twist the top off with your
teeth. If so, your dentist better have a good tooth-repair technique. The
noun technique can also refer to someone's skillfulness with the
fundamentals of a particular task.
DEVELOPMENT
• the act, process, or result of developing the development of new
ideas an interesting development in the case.
• the state of being developed a project in development.
• a tract of land that has been made available or usable
• a developed tract of land especially one with houses built on it.
• Development is a process that creates growth, progress, positive
change or the addition of physical, economic, environmental, social
and demographic components.

Covid-19 pandemic
• The novel coronavirus 2019 (COVID-19) is responsible for more
fatalities than the severe acute respiratory syndrome (SARS)
coronavirus, despite being in the initial stage of a global pandemic. It is
thought that the index case occurred on December 8, 2019, in Wuhan,
China. Since then, cases have been exported to other Chinese cities,
as well as internationally, highlighting concern of a global outbreak the
first suspected case in the Philippines was investigated on January 22,
2020, and 633 suspected cases have been reported as of March 1. Of
them, 183 were in the National Capital Region of Manila, of whom
many were admitted to San Lazaro Hospital (SLH) in Manila, the
national infectious disease referral hospital. We describe the
epidemiologic and clinical characteristics of the first two confirmed
COVID-19 cases in the Philippines, including the first death outside
China.
• Second confirmed case, even though the symptoms of patient 2 started
first. The cases are presented based on reports from the clinicians
involved in patient care and results of investigations available to them
at the time. Figure 1 shows a timeline of symptoms for both patients
according to the day of illness and day of hospitalization

BORROWING TECHNIQUES FOR DEVELOPMENT FOR COVID-19

PANDEMIC
• The World Bank’s Board of Executive Directors today approved two
projects to support the Philippines’ efforts to recover from the
pandemic, improve competitiveness, and build resilience against
shocks and natural disasters.
• The first is a US$600 million Promoting Competitiveness and
Enhancing Resilience to Natural Disasters Development Policy
Loan supporting transformational reforms to hasten the adoption of
 digital technologies, promote greater competition, and reduce the costs
of doing business to revive more economic activities and jobs in the
country. These will help small and medium enterprises bounce back
from the pandemic, help citizens cope with social distancing measures
and other health protocols, and improve delivery of social assistance to
the most disadvantaged groups in society.
• Policy actions supported are critical to a smooth and inclusive
recovery, and include reforms aimed at promoting competition and
digital infrastructure expansion in the telecommunications sector,
shifting to digital transactions for customs procedures to reduce trade
costs, indemnity insurance to protect public assets (e.g., schools,
hospitals) from natural disasters, and implementing the National ID
program for financial inclusion and social transfer program delivery.