Midterm Management

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ST. THERESE- MTC COLLEGES MANAGEMENT
Iloilo, Philippines ORGANIZATION AND MANAGEMENT
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Revision No. 1 Effectivity Date: Reviewed by: Approved by:

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Lesson 4
Guidelines in Business Cases (3 hours)
Competence, Course Outcomes and Learning Outcomes
Competence
Solve problem-solving
Course Outcome/s
By the end of this course, the student is able to:
1. Provide students with basic knowledge of the fundamentals of Management and employ a
practical explanation of the theories involved in business organization and management.
2. Increase the student awareness of the challenging world of their chosen career and resolve
the vital role of Management in any business enterprise.
3. Give students exposure to different kinds of business and industry.
Learning Outcomes
At the end of the lesson, the student is able to:
1. Cite the objectives of the case methods.
2. Describe the basic characteristics of a good case analysis.
3. List the suggested outline in solving business cases
Overview
The case study approach has developed into a very effective method in improving the
individual’s ability to analyze a situation, establish premises, arrive at valid conclusions, decide on
courses of action, and visualize consequences and results. They are exercises in the management
process and executive action, providing opportunities for applying principles learned to business
situations encountered in actuality.
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The case study is best started individually. When the tentative solution stage has been
reached, the student may confer with others who could help him gain further insights, situations, on
whether it is a major or minor problem, or to determine the existence of the problem.
Discussion
Learning Module 4.1 Objectives of the Case Methods

A Case study is an empirical inquiry that investigates a contemporary phenomenon within its
real-life context, especially when the boundaries between phenomenon and context are not evident.
- An intensive analysis of an individual unit. (Merriam Webster)
- Is a research method involving an up-close in-depth and detailed examination of a
particular case.
1. To make the student more efficient and accurate in

finding the cause and effect of business problems.
2. To train, the student becomes more imaginative in formulating efficient and effective
solutions.
3. To help the student apply his own special

experience, and to handle new situations, if he has
little or no experience.

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4. To develop his skill in interacting,

cooperating, and fostering closer relations
with his group members.
4.2 Basic Characteristics of a Good Case Analysis
1. It is based on situational facts.
2. There are a good understanding and identification of

the central problem.
3. The solution must be highly creative and have the

makings of being practical and workable under the given
circumstances.

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4. The student’s position must be supported and defensible.
4.3 Suggested Outline in Solving Business

Cases
I. Time Context
II. Viewpoint
III. Statement of the Problem
IV. Objectives
VI. Alternative Courses of Action
VII. Recommendation
VIII. Conclusion/Detailed Action or Implementation
1. Time Context
Specify the time context month (month and year) if the case fact is explicit about it. The time
context should tell us when the problem was observed, which requires the necessity of an
action.
2. Viewpoint
In solving business problems, the student must specify the viewpoint he is taking.
3. Statement of the Problem
A problem is a deviation or an imbalance between what should be and what is happening.
This imbalance is caused by a change of one kind or another. A problem should be answered
by the question- what is wrong that needs correcting.
4. Objectives
Objectives are specifications by which alternative courses of action are to be developed.
These are statements or functions to be performed or undertaken by the courses of action.

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5. Areas of Consideration/Analysis
When the student has determined what he considers the central problem and has defined his
objective, he must proceed to organize the facts around the possible causes of the central
problem. This requires the separation of the significant areas from the unimportant ones and
the relevant to the irrelevant. The analysis of each area must come from the personal opinion
of the analyst and not from the case facts.
6. Alternative Courses of action
Alternatives are collections of what appear to be now the best means of meeting the individual
objectives.
7. Recommendation.
This is the final decision or recommended course of action. The student must be decisive. He
must not avoid making a final choice of the alternative, which seems best to him.
To check Lesson 4 in Schoology click the link below:

https://app.schoology.com/course/2610208837/materials/gp/2931035826
References
T1 – Inigo, C. (2011). Management for Filipinos principles and application. Revised ed.
T2- Enriquez, E. (2016) Organization and management
T3 – 3G Learning (2013) Principles of Management and Organization Mc Graw Hill
R3 – Morales, J., and Saiali (2014) Business Organization and Management.
R2 – Mutya, R.A.(2009) Business management and organization, functions and principles
http://stemteachingtools.org/news

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It is now time to use those

skills you have learned so
Checkpoint far. Goodluck!
Activity 7. True or False.

Directions: Write True if the statement is correct and False if otherwise.
___________1. Case study is most useful as an exercise in analysis and decision making.
___________2. Read the case only once because the problem is clearly given.
___________3. Viewpoint is the solution to the problem.
___________4. Recommendation is the final decision or course of action.
___________5. Objectives are statements or functions to be performed.
___________6. Areas of considerations are possible solutions to the problem.
___________7. Relevant data should be carefully analyzed.
___________8. A business problem will have a different solutions under different political and
economic environments.
___________9. Case analysis will help the student apply his own special experience.
___________10. Good understanding and identification of the central problem is a characteristic of a
good case analysis.
To answer Activity 7 in Schoology click the link below:

https://app.schoology.com/course/2610208837/assessments/2931038883

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Do this
Activity 8
Essay
Discuss the following items briefly and write your answer on the space provided.
1. Describe the basic characteristics of a good case analysis.
2. What are the objectives of a case method?
3. Give the suggested outline in solving a case.

Assessment
Activity 5
Case Analysis
LJ Corporation is one of the largest electric companies in the country. It is operating in Iloilo
City. Mr. Jun Cruz, the President, had long been convinced that effective planning in the company is
essential to success. For almost 25 years, he has been trying to get a company planning programs
installed, without seeing much result.
Although everyone in the company seemed to work hard at the job, he noticed that the
individual department head keeps going their ways. They decided on problems as they come-up
and prided themselves on doing an effective job. Decisions of each department head do not have

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coordination. The Officer-in-charge of regulatory matters is suggesting that an increase in electric
service rate be considered because the company is drifting.
The Public Relations department head feels that the increase could hardly be justified
because most customers feel that the company is making enough money that it can solve its
problems without raising service rates.
1. If you are the consultant of the company, what steps will you suggest for the company to
develop plans effectively?
2. What advice will you give the company as to the range/period covered by your plan?
For handwritten output: For computerized output (online/physical

a. Write your output in an A4 size bond submission)
paper a. Use A4 size bond paper
b. Write legibly b. Font style/size: Arial Narrow 12
c. Spacing: 1.5
d. Alignment: Justified
e. Margin: 1 inch in all sides


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Lesson 5
The Decision Making Process (3 hours)
Competence
Practice decision-making
Course Outcome/s
1. Provide students with basic knowledge of the fundamentals of Management and employ
practical explanation of the theories involved in business organization and management
the vital role of Management in any business enterprise
3. Give students exposure to the different kinds of business and industry
Learning Outcomes
1. Rewrite the steps in the decision-making
2. Explain the planning techniques and tools
3. Defend a Case
Overview
In the business arena, a great investment in time, economy, effort,

personnel, and materials may be involved in making decisions. The extent
to which these things are involved, as well as the total effect of involvement,
depending on the business level at which the decision is made. Decision making can be determined
by non-quantitative means, such as intuition, facts, experiences, and opinions. Many decisions in
management are also determined by quantitative means such as operations research, linear
programming, simulation, program review evaluation technique, etc.

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Discussion
Learning Module 5.1 Steps in Decision Making

Decision-making is the process of choosing a specific procedure or course of action from
among several alternatives. People who make information-based decisions go through a decision
making process. The steps in the decision-making process are:
1. Set objectives
The existence of a problem implies the need for a decision-
maker to make at least one decision, and typically a series of
decisions to resolve a problem.
2. Identify constraints
Constraints, in some way, limit the decision maker’s choices.
3. Identify alternatives
The decision-making process
involves a choice between two or more alternatives. Alternatives
are chosen because they provide solutions.
4. Gather appropriate information
The information requirements for a given decision vary
considerably depending on the complexity and scope of the decision to be made. The decision-
maker gathers information that may provide insight as to which alternative to choose.
5. Evaluate alternatives
The decision-maker evaluates each alternative. A
decision can be rendered based on the available information.

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6. Choose the most acceptable alternative

In this step, the manager examines the ranking of
alternatives and selects the most acceptable alternative,
which is often the top-ranked alternative.
1.2 Planning Technique and Tools

These various quantitative and scientific techniques are available to aid the manager in his
planning process:
1. Forecasting
This is an attempt to foretell or predict future trends,
events, or conditions from known data and to prepare for the
expected changes in business or industry.
2. Break-even Analysis
Break-even charts are used for planning
purposes. Almost every manager makes a profit
plan, and break-even analysis is very useful for
developing it. To make profits, the total cost must
not exceed total revenue.
3. Scheduling
This is the term used for planning time for various activities in an organization. A number of
scheduling techniques are available, ranging from simple to complex.
4. Management by Objectives
MBO is an approach to management designed to
encourage initiative and prevent working at cross purposes, or
indeed, for no purpose at all. It is a way to help managers
accomplish their job within the framework of organization needs

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and resources. In this approach, the boss and the subordinates function as a team in setting
objectives and accomplishing those objectives through cooperation.
5. Brainstorming
Brainstorming is usually the first crucial creative stage of the
project management and planning process. It is a powerful technique that
draws out ideas from a group of people. It creates new ideas, solves
problems, motivates, and develops teams.
6. Fishbone Diagrams
Fishbone diagrams
are also called “cause and effect diagrams” and
Ishikawa diagrams. These are being used in quality
management fault detection and business process
improvement, especially in manufacturing and production

companies.
7. Gantt Chart
Gantt Charts are excellent models for scheduling and
budgeting, and reporting, presenting and communication
project plans.

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References

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Checkpoint It is now time to use those

skills you have learned so
far. Goodluck!
Activity 9
Memory Recall
The following statements are steps to decision making. Arrange the process from step
number 1 to 6.
a. Gather appropriate information ______________
b. Identify alternatives ______________
c. Set ofjectives ______________
d. identify constraints ______________
e. Choose the most acceptable alternatives ______________
f. Evaluate alternatives ______________


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Do this
Activity 10
Memory Recall
Identify the following items and write your answer on the space provided:
_________ 1. Past and current information is used to predict future trends and events.
_________ 2. The boss and subordinates function as a team in setting objectives and accomplishing
those objectives through cooperation.
__________3. Choosing a specific procedure from among several alternatives.
__________4. Limits the decision maker’s choices.
__________5. This is useful in developing a profit plan.
__________6. A planning time for various activities in an organization.
__________7. The first step in decision making.
__________8. It draws out ideas from the group.
__________9. The cause and effect diagram used in quality management fault detection.
__________10. Excellent models for scheduling and budgeting.


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Assessment
Activity 6
Case Analysis
1. Double J is a manufacturing company of RTW. It is experiencing a sales decline for the last
six months. Research suggests that introducing a new product line is the best solution. As the
manager of the company, what will be your decision? (Be guided with the steps in the decision-
making process)
For handwritten output:

a. Write your output in an A4 size bond paper
b. Write legibly
For computerized output (online/physical submission)

a. Use A4 size bond paper
b. Font style/size: Arial Narrow 12
c. Spacing: 1.5
To answer Assessment in Schoology click the link below:


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Lesson 6
Organizing (12 hours)
Competence
Practice organizational skills
Course Outcome/s
1. Provide students with basic knowledge of the fundamentals of Management and employ a
practical explanation of the theories involved in business organization and management.
the vital role of Management in any business enterprise.
3. Give students exposure to different kinds of business and industry.
Learning Outcomes
1. The students must be able to discuss organizing.
2. State the nature of organizing.
3. Draw an organizational structure/ organizational chart
4. Cite the purpose of an organizational chart
5. Compare reorganization and departmentation
6. List the elements of delegation
7. Dramatize the art of delegation
8. Explain the exception principles
9. Differentiate formal and informal organization

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Overview
Men working together in groups to achieve a goal should have their respective roles to play,
similar to basketball players. Whether their roles are developed by themselves must be defined and
designed by someone who wants to make sure that men contribute in a definite way to a group
effort. A role would mean that what men do has a specific purpose and objective. Their activity .is a
situation where they know how their jobs fit into a group effort and where they have the necessary
tools and information to accomplish it.
Discussion
Learning Module 6.1 Nature of Organizing

Organizing is the process of grouping together of men
and establishing relationships among them, defining the
authority and responsibility of personnel by using the
company’s other basic resources to attain predetermined goals
or objectives. Organizing is the identification of the grouping of
work to be done, the delegation of authority and responsibility
to the employees, and the establishment of relationships among the personnel to use the maximum
advantage the company’s basic material resources in the accomplishment of a common goal.
Organizing is a broad term that can be interpreted
differently by many management theorists. Some
believe it includes the behavior of all members of the
group. Others say it is the total system of social or
cultural relationships. Generally, most managers think
that the terms mean a formalized design of intentional
structures, roles, and positions.

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Organizing as a process should consider several factors or fundamentals.

1. The structure must reflect objectives and plans because the activities of the organization are
based on them.
2. The structure must reflect the authority given to top management and middle management.
3. Organizational structure, like any other plan, should reflect their external environment.
4. The organization must be manned.
6.2 What is the Organization?

The term “organization” has several definitions. One (Webster’s) is the executive structure of
the business. This definition indicates that organization is the framework or backbone by which the
work of a business, managerial or otherwise, is performed. That is, it provides the required
channels, points of origin, and flow of management direction and control.

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6.3 Types of Organizational Structure

1. Line Organization
This is the simplest form of structure
and refers to the direct straight-line
responsibility and control from top
management to middle management and the
lower level.
2. Line and Staff organization
This utilizes the assistance of experts or specialists. Business leaders have recognized – as
their companies expand from simple to complex organizations- that a small number of managers
could not personally assume direct responsibility for all functions, such as research, planning,
distribution, public relations, industrial relations, and many other activities of a business.

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3. Functional Organization
It utilizes the pure services of experts or
specialists. The development of staff
departments and positions led quite naturally to
attempt complete reorganization on a functional
basis.
4. Committees
The committee is another common
organizational form used in situations where group
participation and decision are required.
Committees may be classified as:
1. Ad hoc Committees. This undertakes
temporary activities.
2. Standing committees. This is sometimes called permanent committees, which undertakes
permanent activities such as the budget committee.
6.4 Organizational Chart
The organizational chart is a diagram or drawing showing the important aspects of an
organizational structure. It shows the relationship among positions as to authority, responsibility and
accountability, and the people who occupy them.

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6.5 Purpose of Organizational Chart

An organization chart assists one to view
the firm’s structure as a whole. It shows the
principal divisions and lines of formal authority and
responsibility. It assists management in dividing
the different duties or functions in the business
establishment so that they will be performed
effectively and efficiently.
6.6 Reorganization
The reorganization is the process by which an existing
organization changes the size and shape of the organization
structure.
6.7 Departmentation
Departmentation results from the grouping of work, the desire
to obtain organization units of manageable size, and to utilize the
managerial ability.
6.8 The Elements of Delegation

Delegation is the process of entrusting and transferring
responsibility and authority by the top management to the lowest
level.
The elements of the delegation are the following:
1. Responsibility
This is the work or duty assigned to a particular position.

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2. Authority
It refers to the power or the right to be obeyed. It
is also the sum of the powers and rights entrusted to
make possible the performance of the work delegated.
3. Accountability
This is the answerability of the obligation to perform the delegated
responsibility and to exercise the authority for the proper performance of
the work.
6.9 The Art of Delegation

Delegation is considered an art and a
science. It is an art because it is a skill that
the manager performs effectively if he
practices it. Delegation should first and
foremost be tackled before the establishment
of goals and objectives, and a clear definition
of responsibility and authority has been made.
6.10 The Exception Principles

The exception principle ( also known as
management by exception) is closely related to
the parity principle. The exception states that
managers should concentrate their efforts on
matters that deviate significantly from the
normal and let subordinates handle routine
matters.

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6.11 Formal and Informal Organization

The formal system is composed of the
recognized and formalized lines of
communication, authority, and control. This
system is frequently pictured in the official
organization chart. Informal organizations are
formed to satisfy some social needs. These
organizations may exist within formal organizations or may exist and operate independently.
Formal Organization
A formal organization is formed when two or more persons come together. They have a
common goal. They are willing to collaborate to achieve this common goal. The formal organization
has rules and regulations. These
rules must be followed by the
members (employees and
managers). A formal
organization has a system of
coordination. It also has a
system of authority. It has a clear
superior-subordinate relationship.
Informal Organization
An informal organization exists within the
formal organization. An informal organization is
a network of personal and social relationships.
People working in a formal organization meet
and interact regularly. They work, travel, and
eat together. Therefore they become good
friends and companions.

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References

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It is now time to use those

Checkpoint skills you have learned so
far. Goodluck!
Activity 11
Definition
Define the following terms and use the space provided for your answer:
1. Organizing 6. Formal Organization
2. Organization 7. Responsibility
3. Organization Chart 8. Authority
4. Delegation 9. Accountability
5. Reorganization


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Do this
Activity 12
Illustration
Draw an organizational chart of a business firm that you are familiar with. Use the space
below.

Assessment
Activity 7
Essay
1. Contrast reorganization and departmentation
2. Explain the purpose of an organization chart.
3. What are the elements of delegation? Explain briefly.
4. Discuss the “Exception Principle”

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Activity 8
Reflective Thinking
1. Do you think that division of labor has been emphasized too much in today’s highly
technical society?
2. Give an example of a formal and informal organization. Be able to differentiate the two.

b. Write legibly

c. Spacing: 1.5
Activity 9
Case Analysis
Organizing
“I do not believe in organization charts or position descriptions of any kind in this company:
declared Arjohn Labos, president and founder of the Power Company, manufacturer of men’s ready-
to- wear (RTW) suits and jackets. “We are a successful and fast-rising company where I want all
managers and labor to work as a team. Organization charts and job descriptions make people
believe they own a position on a chart and want to keep it. We grow from a small company with Php
100,000 annual sales to a 5 million enterprise because we pooled our resources, coming up with
competitive products at low costs. We are not San Miguel Corporation with its complex organization
charts.

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Mr. Tulang, the company comptroller, strongly defended the president, emphasizing that
teamwork, not organization charts, is the key to success.
Winda Ignacio, head of manufacturing, believed otherwise and declared the president’s view
“absurd and unprogressive.” Miss Ignacio said, “ I could not run my department without organization
charts and position descriptions. As a matter of fact, I have them hidden in my table where Arjohn
Ramos never sees them.”
Note: Use the suggested format for a case study

b. Write legibly

c. Spacing: 1.5
To answer Assessment in Schoology click the link below:


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Issue No.

Revision No. 1 Effectivity Date: Reviewed by: Approved by:

Competence, Course Outcomes and Learning Outcomes

©All Rights Reserved

Revision No. 1 Effectivity Date: Reviewed by: Approved by:

Learning Module 4.1 Objectives of the Case Methods

1. To make the student more efficient and accurate in

3. To help the student apply his own special

©All Rights Reserved

Revision No. 1 Effectivity Date: Reviewed by: Approved by:

4. To develop his skill in interacting,

4.2 Basic Characteristics of a Good Case Analysis

1. It is based on situational facts.

2. There are a good understanding and identification of

3. The solution must be highly creative and have the

©All Rights Reserved

Revision No. 1 Effectivity Date: Reviewed by: Approved by:

4. The student’s position must be supported and defensible.

4.3 Suggested Outline in Solving Business

©All Rights Reserved

Revision No. 1 Effectivity Date: Reviewed by: Approved by:

To check Lesson 4 in Schoology click the link below:

©All Rights Reserved

Revision No. 1 Effectivity Date: Reviewed by: Approved by:

It is now time to use those

Activity 7. True or False.

To answer Activity 7 in Schoology click the link below:

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To answer Activity 8 in Schoology click the link below:

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For handwritten output: For computerized output (online/physical

To answer Activity 8 in Schoology click the link below:

©All Rights Reserved

Revision No. 1 Effectivity Date: Reviewed by: Approved by:

Competence, Course Outcomes and Learning Outcomes

In the business arena, a great investment in time, economy, effort,

©All Rights Reserved

Revision No. 1 Effectivity Date: Reviewed by: Approved by:

Learning Module 5.1 Steps in Decision Making

©All Rights Reserved

Revision No. 1 Effectivity Date: Reviewed by: Approved by:

6. Choose the most acceptable alternative

1.2 Planning Technique and Tools

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Revision No. 1 Effectivity Date: Reviewed by: Approved by:

improvement, especially in manufacturing and production

©All Rights Reserved

Revision No. 1 Effectivity Date: Reviewed by: Approved by:

To check Lesson 5 in Schoology click the link below:

©All Rights Reserved

Revision No. 1 Effectivity Date: Reviewed by: Approved by:

Checkpoint It is now time to use those

To answer Activity 9 in Schoology click the link below:

©All Rights Reserved

Revision No. 1 Effectivity Date: Reviewed by: Approved by:

To answer Activity 10 in Schoology click the link below:

©All Rights Reserved

Revision No. 1 Effectivity Date: Reviewed by: Approved by:

For handwritten output:

For computerized output (online/physical submission)

To answer Assessment in Schoology click the link below:

©All Rights Reserved