__ABM 211__

CONCEPTS & DYNAMICS OF

MANAGEMENT
Katherine M. Zipagan
IBM/Agribusiness Department

Daniel C. Jacinto
IBM/Agribusiness Department

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MODULE 1 – An Overview of Management and Organization

Introduction

The satisfaction of human wants is a universal concern and this is the basic
reason why organizations are established. Limited resources and the ever-
increasing demand for food, shelter, security, and other basic necessities drive
people to devise or use means to ensure that the right moves are undertaken to
satisfy those needs.

A positive approach is the adoption of effective and efficient schemes related

to management and organization. Government, business firms, and even
nonprofit organizations are expected to manage their resources properly, or they
will fail in the attempt to contribute their share in the alleviation of poverty and
want.

The foregoing brings to the fore the importance of studying management and
organization. This chapter, as well as the succeeding ones, attempt to support
the abovementioned statement.

Learning Outcomes

At the end of this chapter, the students are expected to:

1. Describe the meaning of management;

2. Identify the scope of management;
3. Recognize the importance of effectiveness and efficiency in organization;
4. Describe characteristics of a manager;
5. Examine the levels of managers in the organization;
6. Compare the types of managers;
7. Examine the skills required in managing;
8. Identify the various roles of a manager;
9. Describe the nature of an organization;
10. Identify the basic principles of management and organization; and
11. Recognize the importance of educating managers.

Learning Contents

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TOPIC 1: WHAT IS MANAGEMENT?
Management may be defined as the achievement of organizational
objectives through people and other resources. It consists of several functions, which
may be briefly defined as follows:

1. Decision-making is the process by which a decision-maker determines the

available alternatives and chooses the best solution that suits a given problem.
2. Planning is the process of establishing objectives and suitable courses of action
before taking action.
3. Organizing is the process of arranging an organization’s structure and
coordinating its managerial practices and use of resources to achieve its goals.
4. Staffing refers to the process of recruiting, placing, training, and developing
personnel.
5. Communicating refers to transferring information from one communicator to
another.
6. Motivating refers to the act of giving employees reasons or incentives to work in
order to achieve organizational objectives.
7. Leading is the process of directing and influencing task-related activities of
organization members.
8. Controlling is the process of monitoring actual organizational activities to see
that they conform to planned activities and correcting deviations or flaws.

TOPIC 2: EFFECTIVENESS AND EFFICIENCY: A BASIC

REQUIREMENT
An organization can only survive if its activities are effective and efficient. It is
the responsibility of the manager to see that his organization will achieve its
objectives effectively and efficiently. This is so even if such objectives are parts of a
bigger objective.

Effectiveness is a central element in the management process, which

requires the achievement of an objective. For instance, a manufacturer chooses a
supplier who provides needed materials at the required time and quantity. The action
qualifies as effective.

Efficiency is also a central element in the management process, which

requires that the minimum amount of resources is used to achieve an objective. In
the example cited above, the manufacturer may be able to get supplies from his
chosen source, but if the costs associated with the purchase are too excessive, the
operation will be inefficient and may place the organization in a disadvantageous
position. This is especially true if profitability is compromised.

Too much emphasis on efficiency, however, may affect effectiveness

rendering any productive effort useless. An example is the trader who regularly
delivers his products to customers. If the tires of his delivery van are of the lowest

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 price but of the poorest quality, he may not be able to fulfill his commitments on time,
making his service ineffective and eventually jeopardizing his business will be in
trouble.

It appears that the secret is to have a nice balance of both effectiveness and
efficiency. To emphasize one and disregard the other is not in keeping with good
management practices.

TOPIC 3: WHAT IS A MANAGER?

A manager is one who plans, organizes, leads and controls other individuals
in the process of pursuing organizational goals. Managers are vested titles like
president, department head, dean, administrator, supervisor, team leader, and the
like.

The manager is the one responsible for accomplishing the objectives of his
particular unit, which could be a whole organization, a particular department, or a
work group.

Managers are responsible for using materials and talents in the most
economical and productive manner. As such, they are regarded as very important, if
not the most important factor in the economic development of the nation.

THE LEVELS OF MANAGERS

Managers function according to the levels they are in. in a small organization, there
would normally be just a single manager who is expected to perform all the managerial roles
and tasks.

In the transition from a small to a large organization, there may be two levels of
managers who divide among themselves the managerial roles and tasks.

There are times when the size of the organization justifies setting up three levels of
managers: the top management, the middle management, and the lower management.
Figure 1 shows the levels at the various stages of organizational growth.

SMALL MEDIUM LARGE 4

ORGANIZATIONS ORGANIZATIONS ORGANIZATIONS
 Single Top Top
Manager Managers Managers

Front Line Middle

Employees Managers managers

Front Line
Employees Managers

Employees

Figure 1

Levels of Managers
(by size of organization)

Top managers are responsible for the overall performance of the

organization. They formulate strategies, provide leadership, evaluate and shape the
method of organizing, and control the direction of the organization in the effort to
accomplish goals. Top managers usually hold titles such as chief executive officer,
president, chairman or senior vice president.

Middle managers direct the activities of other managers and sometimes also
those of operating employees. They work with top managers and coordinate with
peers to develop and implement action plans to accomplish organizational objectives.
Examples of middle managers are the dean of the business school in a university,
the plant manager in a manufacturing concern, and the branch manager of a trading
firm.

Lower level managers are responsible for leading employees in the day-to-
day tasks, which contribute to the organization’s goals. Of the various levels of
managers, they are the ones in direct contact with the employees. Because of this,
they are also referred to as “first line” or “front line managers”. Apart from performing

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 the other managerial functions of planning, directing and organizing, their tasks
include correcting errors or solving problems directly related for the production of
goods and services.

TYPES OF MANAGERS

Managers may be different from one another in terms of the work they do.
They maybe briefly described as follows:

1. Line managers are directly concerned with accomplishing the goals of the
organization. The decisions they make with regards to operations are expected to
be final and must be implemented. For example, the university president, the
dean, and the department heads all have line of responsibilities.
2. Staff managers are in charge of units that provide support to the line units. In
doing their work, they use special expertise to advise the line workers. The
director of personnel and the controller are examples of staff managers.
3. Administrators are managers working in government or in non-profit
organizations. Examples include school administrators, provincial administrators,
and hospital administrators.

TOPIC 6: MANAGEMENT SKILLS

The effective and efficient performance of management functions such as

planning, organizing, leading and controlling are possible only if the manager is well-
equipped with the necessary management skills. Such requirements may be briefly
described as follows:

1. Technical skills refer to the abilities to use special proficiencies or

expertise in performing specific tasks. They refer to the use of tools,
techniques, and specialized knowledge. Examples of technical skills are an
accountant preparing a financial report, an architect working on a building plan,
and a professor writing a book.
2. Human skills refer to the abilities to work well in cooperation with other persons;
whether they are subordinates, peers or superiors. A person with good human
skills will have a high degree of self-awareness and a capacity for understanding
or empathizing with the feelings of others.

The Required Management Skills at Different Levels of Management

The application of various management skills differ from level to level in the
management hierarchy. As shown in Figure 2, first line manager needs less conceptual
skills in the performance of his work, and more human and technical skills.

Compared to the first line managers, middle managers need more conceptual skills,
the same degree of human skills as that of first line managers, but less on technical
skills.

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 The biggest concern of top management is on conceptual skills; the same degree of
human skills as these of first line and middle managers, and with the list of concern
about technical skills.

FIRST LINE MIDDLE TOP

MANAGERS MANAGERS MANAGERS

CONCEPTUAL CONCEPTUAL
CONCEPTUAL

HUMAN

HUMAN
HUMAN

TECHNICAL TECHNICAL
TECHNICAL

Figure 2

Management Skills Needed at Different Levels of Management

Some of the human skills necessary for managers are effective and oral written
communications, creating positive attitude toward others and in the work setting,
developing cooperation among group members, and motivating subordinates.

Human skill is a difficult one to master. Emotionally sound managers perform the skill
better than those who are not.

3. Conceptual skills refer to the ability of the manager to see the organization as a
whole and to solve problems in ways that benefit the total system. Specifically,
the manager who possesses these skills is expected to analyse and solve

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 complex problems. Thus, the manager with good conceptual skills will have the
mental capacity to perform the following:

a. Identify problems and opportunities;

b. Gather and interpret relevant information; and
c. Execute problem-solving decisions that serve the organization’s purpose.

Examples of situations that require conceptual skills include the promulgation

of a new law (e.g., the Senior Citizen’s law, or a policy to change the economic
condition of the country; one that addresses the declining purchasing power of
consumers). In a company, a manager’s conceptual skills are required in decisions
such as those that affect the selling procedures of the organization in choosing where
to establish a branch of the company.

TOPIC 7: MANAGERIAL ROLES

The manager is expected to lead his unit or department in achieving its

objectives. As such, he is bound to interact with people and deal with processes. In
the attempt to produce results, the manager assumes roles as varied as the
following:

1. Interpersonal Roles. These are the roles the manager plays when he interacts
with others. The specific roles under this category are:

a. Figurehead. When the manager performs this role, he acts as the symbolic
head of the organization and as a result, he is expected to perform a number
of duties of a legal or social nature. For example, when a manager cuts the
ceremonial ribbon of a company-sponsored project such as a school building,
it provides an example of his figurehead role.

b. Leader. This role makes the manager responsible for the motivation and
activation of subordinates. As such, he is responsible for actions in staffing,
training, and other associated duties. He performs the role of leader in
virtually all managerial activities involving subordinates.

c. Liaison. In assuming the liaison role, the manager makes contacts with
individuals in and out of the organization to facilitate the accomplishment of
work in his department. Examples of such activities are acknowledgment of
mail, external board work, and other activities involving outsiders.

2. Informational Roles. A very important aspect of the manager’s job is to receive

and communicate information. Such roles are vital to his decision making tasks. If
he wants his subordinates to improve the quality of their decisions, he provides
them with information.

On receiving and sharing information, the manager assumes three specific

roles. These are briefly described as follows:

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 a. Monitor. In acting as a monitor, the manager handles all mails and
contacts categorized as concerned primarily with receiving information
using such sources as news bulletin, special magazines, and the
observational tours.
b. Disseminator. As information disseminator, the manager sees to it that
relevant incoming information is properly shared with subordinates.
c. Spokesperson. The manager serves as expert on organization’s
industry. He sees to it that his views are heard on occasions requiring his
presence such as board meetings. He also maintains contact with
outsiders and provides information when they are required.

3. Decisional Roles. The major part of the manager’s job is to make decisions. As
decision-maker, he assumes the following roles:

a. Entrepreneur. As entrepreneur, the manager searches the organization

and its environment for opportunities and initiates projects to bring about
positive change. He is required to participate in strategy and review
sessions involving initiative or design of projects to improve performance.
b. Disturbance Handler. In acting this role, the manager is expected to
respond to such unwelcome pressures by formulating strategies and
reviewing disturbances such as striking employees who are dissatisfied
with the compensation scheme and the like.
c. Resource Allocator. The manager is expected to be actively involved in
scheduling, acting on requests for authorization, budgeting, and the
programming of subordinates’ work.

TOPIC 8: WHAT IS AN ORGANIZATION?

An organization is a collection of people working together to achieve a

common purpose. It is the means used by people to achieve certain objectives. A
mere grouping of people will not qualify as an organization unless it has some
objectives to achieve. In order to do this, people in a group must interact, use
knowledge and techniques, and work together in patterned relationships.

Dealing with organizations has become a way of life for all of us. Even if we
want to, we cannot escape their clutches. When we go to school, we reckon with the
organization running it. Our ability to communicate was enhanced to a great degree
by organizations like Nokia, Samsung, Apple, and some others with the latest handy
phones they sell.

Charitable organizations like the Red Cross, provide assistance to the poor
and the sick. Local governments are organizations that run the political affairs of
provinces and municipalities. The various types of organization are illustrated in
Figure 3.

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 ORGANIZATIONS

GOVERNMENT PRIVATE

NON- PROFIT NOT-FOR-

CORPORATE CORPORATE SEEKING PROFIT

Figure 3

Types of Organizations

The Functions of Organizations

There are certain objectives that the individual will find hard, if not, impossible to
achieve. Example: mass production of appliances like television sets and cellular
phones will be impossible for a single person to undertake. The variety of specialized
tasks would be enough to overwhelm the individual worker if he is required to do all of
them. The elimination of such kinds of difficulties provides a rationale for the existence
of organizations. Hence, a fully organized group offers some advantages, which cannot
be derived from an unorganized group of people.

Common Characteristics of Organization

The following are the four characteristics commonly shared by organizations:

1. Coordination of Effort. When properly directed, persons working in coordination

with others will produce better outputs than when they work independently.

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2. Common Goal or Purpose. in order to make employees work with proper
direction, they must be provided with a common goal or purpose. Organizations
that do not make their goals or purposes clear run the risk of failure.

3. Division of Labor. When the total job is divided into manageable parts, workers
will be more familiar with their assignments, making them more proficient.

4. Hierarchy of Authority. In controlling the behaviour of employees, positions are

established and linked by a chain of command in a continuous branching out so
that multiple layers exist in the hierarchy.

TOPIC 9: BASIC PRINCIPLES OF MANAGEMENT AND ORGANIZATION

There are certain principles that should be considered in the study of

management and organization of business enterprises. These are enumerated
below:

1. Management Principles. The various management principles applicable to

managing a business enterprise as follows:

a. Division of Labor. This means breaking a job into a specialized tasks to

increase productivity.
Example: the total job of financing appliance sales may be divided into
tasks such as credit investigation, collection, sales, and accounting.

b. Authority. This is the right of a person in position to give orders and power to
exact obedience.
Example: a sales manager has the right to expect from the sales
supervisors the required volume of sales for a given period

c. Discipline. This provides uniform application of behaviour to certain activities;

the outcome of which is readily predicted. If discipline is not practiced,
objectives will be very hard to achieve.

d. Unity of Command. This means that each employee must have only one
superior. Reporting directly to more than one superior creates problems and
reduces productivity.

e. Unity of Direction. This means that the efforts of everyone in the

organization must be coordinated and focused in the same direction.

f. Subordination of the Individual Interests to the General Interests. This

means that the goals of the organization should take precedence over

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 individual goals. Otherwise, it will be difficult for the organization to succeed
because its goals will be set aside.

g. Remuneration. Employees should be paid fairly in accordance with their

contribution to the organizational effort. This is applicable to salaries,
bonuses, and benefits.

h. Centralization. Power and authority must be centralized as much as

practicable. Decentralization must be instituted however, when the firm grows
into a considerable size.

i. Scalar Chain. This means that subordinates should observe the official chain
of command unless authorized by their respective superiors to communicate
with each other.

j. Order. This means that human and non-human resources must be in their
proper places. Example: the production manager must hold office at the
production site

k. Equity. This is the result of kindness and justice and is a principle to guide
management and employee relations.

l. Stability of Tenure. High employee turnover is counterproductive. To

motivate employee to stay with the company, effective manpower planning
and implementation are necessary.

m. Initiative. Management should encourage employees to act on their own

volition when confronted with an opportunity to solve a problem.

n. Esprit de Corps. This means that managers should emphasize teamwork by

building harmony and a sense of unity among employees. Harmony breeds
high morale and is more productive than discord.

2. Principles of Organization. Knowledge of the basic principles of organization is

a useful guide in organizing business enterprises. These principles are as
follows:

a. Principle of Objective. The objective of the organization must first be

determined and laid out clearly before any activity is undertaken. The
objective will serve as the guide in determining whether a certain
activity is required or not. Example: if the company’s objective is to sell
financing services, then the entire organization must be built around

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 that objective and every employee of the company must think and act
in terms of selling financing services.

b. Principle of Analysis. Managers in organizations must be able to

break a problem down into its components, analyze these
components, and then come up with a feasible solution. In the attempt
to achieve objectives, the analytical ability of managers and
employees will be crucial.

c. Principle of Simplicity. The organization should be built in the

simplest manner that could make the achievement of objectives
possible. Only activities that are absolutely necessary should be
undertaken.

d. Principle of Functionalization. Business firms are not supposed to

be organized to accommodate individuals. Rather, it should be built
around the main functions of the business. Example: if the company’s
objective is to sell financing services, the functions should be related
to such objective like credit department, collection department,
financial planning department, sales and so forth.

TOPIC 10: EDUCATING MANAGERS

A very important concern in management is training managers. Business

firms should make sure that their managers are well qualified to handle the jobs
assigned to them. As mentioned earlier, the skills required of managers in the
effective performance of their jobs are those referred to as technical, human, and
conceptual.

Among the three skills, technical is said to be the easiest to acquire.

Technical skills can be acquired through company sponsored training programs.

Human skills are more difficult to teach and learn. This is so because human
relations involve many complex emotional elements. Prospective manager can
acquire human skills through more direct means like on-the-job training and
observation tours.

Conceptual skills appears to be the most difficult to teach because it involves

mental habits that have to be developed early in life. As conceptual skills constitute a
large part of the managerial skills needed by top managers, executive development
programs were designed for them.

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Teaching and Learning Activities

Case 1: St. Andrew College of Business and Science: Who Can I TurnTo?

After the death of her husband, Mrs. Gloria Tadino started operating her own
elementary school. After five years, she was requested by the parents of her
students to open a high school department and she reluctantly obliged. When the
total enrollment exceeded on thousand students, she opened the college
department. By the year 2012, the school has become popular throughout Central
Luzon with its newly registered name: St. Andre College of Business and Science
(SACBS). As of 2012, the number of students enrolled are as follows:

Elementary = 1,030

High School = 957

College = 6,342

In educating students, SACBS has an excellent record. The passing rate of its
graduates is above the national average in the various licensure examinations.
Financially, the school is a “going concern”. Banks rate the school as a good credit
risk.

Mrs. Tadino is already 60 years old and is beginning to worry about her
replacement as president of SACBS. She has three sons and wants one of them to
take over as soon as possible. Although, she is sure that whoever she chooses
would gladly accept, she wants to make an intelligent choice.

Gloria’s eldest son Mario is 35 years old, an electronics engineer, and is

working as network administrator of a big communication firm in Makati. Mario is the
immediate superior of five other professional engineers. Mario’s wife is also an
electronics engineer and is working in the same company as head of planning
department. They have a daughter and a son. Mario is the most sociable among the
three sons of Gloria. He and his wife are very industrious and are very much
contented with their jobs. Their main drawback is their difficulty balancing their
family’s budget.

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 Gloria’s second son is Glenn who is 33 years old and a professional chemical
engineer. He works as associate engineer in the biggest public utility firm in Metro
Manila. Glenn has ambitions of saving money to buy a house and lot in Quezon City,
a car for him and another for his wife, and enough cash to open a business when
they retire. He is on his way to achieve his goal because he rarely socializes and he
meets people only when it is work related. His wife is a professional engineer and is
also connected with Glenn’s company as supervisor of the IT department.

Gloria’s third son, Vincent, enrolled in a college course in a big university in

Manila just like his two older brothers. Out of 70,000 who took the entrance
examination, he obtained the tenth highest score. In spite of that course, he failed to
finish his college course. Unwilling to go back to his province and his mother, he
made himself busy trying to work and educating himself in jobs he liked.

Vincent worked for two years in a call center as a customer relations agent.
He enrolled in specialized courses in computer. Upon the recommendations of his
Canadian friend, he handled for one year an English class exclusively for Koreans.
His long stay in Manila exposed him to various cultures including those of the
Koreans, as well as his Canadian, Australian and American friends. For a few years,
he was also exposed to the culture of the Ilocanos, the Igorots, and the Visayans. For
five years, he handled classes in Judo and in one competition he got a gold medal.
He bested local and foreign opponents. Later, he established his own small business
using the computer as his main equipment.

Reviewing the credentials of her sons, Gloria seems to have some difficulty in
making her final choice. She is contented to know, however, that whatever
shortcomings her children may have, they can be remedied by proper training.

Case Study Learning Assessment:

1. Assess who the most desirable successor of Gloria is. Base your decision on the
various characteristics and skills required of a manager. Write your answer on the
space provided below.

2. Describe other acceptable factors that Gloria may use to come up with the best
choice. Write your answer on the space provide below.

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Recommended Learning Materials and Resources for Supplementary Reading

 https://www.youtube.com/watch?v=JH4srpPMgAc
 https://www.youtube.com/watch?v=iB334D7-jOY
 https://www.youtube.com/watch?v=JCfIjah0Zwg
 https://www.youtube.com/watch?v=ldfkg54Kqys

Flexible Teaching Learning Modality

 Online (synchronous)
- SeDi LMS, FB Messenger, Google Classroom, Edmodo, Microsoft
Teams (major exams, recitations & quizzes)
 Remote (asynchronous)
- Email, Modules, case studies, exercises

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 Assessment Tasks

Name: ______________________________ Score: ______________

Course/Year/Section: __________________ Date: _______________

Write the correct word/s that corresponds to the given statement. (10 points)

___________________1. It is a process of planning, organizing, leading and controlling

activities in an organization in a systematic way in order to achieve a common goal.

__________________ 2.it means mobilizing the material and human resources of the
organization to put plans into effect.

__________________ 3. It refers to the recruitment, placement, and training of qualified

personnel to do the organization’s work.

___________________4. They are responsible for using materials and talents in the most
economical and productive manner.

___________________5. They are those who direct the activities of other managers and
sometimes also those of operating managers.

__________________ 6. They are managers in charge of units that provide support to the
line units.

__________________ 7. It refers to the ability of the manager to see the organization as a

whole and to solve problems to benefit the total system.

__________________ 8. These are roles played by the manager when he interacts with
others.

__________________ 9. It is a collection of people working together to achieve a common

goal.

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_________________10. It means breaking a job into specialized tasks to increase
productivity.

References

A. WEB Links:

 https://www.google.com/url?sa=i&url=https%3A%2F%2Fibimapublishing.com
%2Fjournals%2Fjournal-of-organizational-knowledge-management
%2F&psig=AOvVaw0HmltskFf13WGddyYnTkeR&ust=1594943654864000&source=i
mages&cd=vfe&ved=2ahUKEwiCkpOhutDqAhVYyZQKHZUcADwQr4kDegUIARCeA
Q

 https://study.sagepub.com/managingandorganizations5e

B. Books:
 Clegg, S.R., Kornberger, M., Moubt, M., 2016, Managing and Organizations: An
Introduction to Theory and Practice. 5th Edition.

 Medina, Roberto G., 2015, Business Organization and Management.

ISBN 978-971-23-6818-9

 Principles of Management
Copyright Year: 2015
ISBN 13: 9781946135186
Publisher: University of Minnesota Libraries Publishing

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