✓ CHRISTIAN SAMARITAN HEALTH SERVICES AND TECHNICAL SCHOOL, INC.

15th de Septiembre St., Brgy 1, Balingsag, Misamis Oriental

Contact No.
Name: Date: Score:

Subject: Organization and Management

Topic: Nature and Concept of Management
1. Definition and functions of management
2. Evolution of management theories
3. Functions, roles, and skills of a manager
Content Standard: The learners have an understanding of the basic concepts and theories of management.
Performance Standards: The learners shall be able to apply management theories & concepts in solving business
cases.
Learning Competency: The learners:
Discuss the meaning and functions of management. (ABM_AOM11-Ia-b-1)
Explain the various types of management theories. (ABM_AOM11-Ia-b-2)
Explain the functions, roles, and skills of a manager. (ABM_AOM11-Ia-b-3)
References: Activity No. 1

DISCUSSION

What is management?
Management is the process of coordinating and overseeing the work performance of individuals working together in
organizations, so that they could efficiently accomplish their chosen aims or goals. Management covers the whole organization
and is present in every area in the organization. For management to be successful- coordination, efficiency and effectiveness
are required to carry it out. Similarly, a manager is a significant person whose role is different from other employees in the
organization. The managerial functions are performed by the manager. Thus, it can be summarized that all organizations no
matter the kind, size, or location need good managers in order to successfully achieve their organizational goals and objectives.

The management process consists of four primary functions that managers must perform: planning, organizing, leading, and
controlling. As the management process proceeds, changes and modifications are made when unforeseen events arise. Managers
make sure the necessary changes are implemented and that the unity and integrity of the entire process is maintained.

1. Planning means defining performance goals for the organization and determining what actions and resources are needed to
achieve the goals. Through planning, management defines what the future of the organization should be and how to get there.
Strategic plans are long-term and affect the entire organization and it bridges the gap between what an organization is and
what it will become. Tactical plans translate strategic plans into specific actions that need to be implemented by departments
throughout the organization. The tactical plan defines what has to be done, who will do it, and the resources needed to do it.

2. Organizing. Once plans are made, decisions must be made about how to best implement the plans. The organizing function
involves deciding how the organization will be structured (by departments, matrix teams, job responsibilities, etc.). Organizing
involves assigning authority and responsibility to various departments, allocating resources across the organization, and defining
how the activities of groups and individuals will be coordinated.

3. Leading. Leaders use knowledge, character, and charisma to generate enthusiasm and inspire effort to achieve goals.
Managers must also lead by communicating goals throughout the organization, by building commitment to a common vision, by
creating shared values and culture, and by encouraging high performance. Leadership and management skills are not the same,
but they can and do appear in the most effective people.

4. Controlling. There is a well-known military saying that says no battle plan survives contact with the enemy. This implies that
planning is necessary for making preparations, but when it’s time to implement the plan, everything will not go as planned.
Unexpected things will happen. Observing and responding to what actually happens is called controlling. Controlling is the
process of monitoring activities, measuring performance, comparing results to objectives, and making modifications and
corrections when needed.

WHAT MANAGERS DO
Kinds of managers
1. Top Managers are responsible for the overall direction of the organization.
2. Middle Managers are responsible for setting objectives consistent with top management’s goals and for planning and
implementing subunit strategies for achieving these objectives.
3. First-Line Managers train and supervise the performance of non - managerial employees who are directly responsible for
producing the company’s products or services.
4. Team Leaders are responsible for facilitating team activities toward goal accomplishment.

MANAGERIAL ROLES
1. Interpersonal Roles
 Figurehead – They perform ceremonial duties
 Leader – They motivate and encourage workers to accomplish organizational objectives
 Liaison – They deal with people outside their units
2. Informational Roles
 Monitor – They scan their environment for information
 Disseminator – They share information with others in their departments or companies.
 Spokesperson – They share information with people outside their departments or companies.
3. Decisional Roles
 Entrepreneur – They adapt themselves, their subordinates, and their units to charge.
 Disturbance handler – They respond to severe problems that demand immediate action.
 Resource Allocator – They decode who gets what resources
 Negotiator – They negotiate schedules, projects, goals, outcomes, resources, and employee raises.

THE ORIGINS OF MANAGEMENT

Management as a field of study may be just 125 years old, but management ideas and practices have actually been used from
the earliest times of recorded history. For example 2,500 years before management researchers called it job enrichment, the
Greeks learned that they could improve the productivity of boring, repetitious tasks by performing them to the music.

THE EVOLUTION OF MANAGEMENT

A. SCIENTIFIC MANAGEMENT
1. Frederick Winslow Taylor – Scientific Management Theory
Frederick Winslow Taylor was one of the earliest proponents of management theory. A mechanical engineer, he authored The
Principles of Scientific Management in 1909.

Taylor also created four principles of management as part of his work. These are:
1. Use scientific methods to determine the most efficient way to complete a task.
2. Monitor employees to determine performance. This involves offering guidance to those that aren’t as efficient as
needed.
3. Assign employees to work that suits their skills and motivation levels. Then, coach them to reach maximum efficiency.
4. Managers must focus on planning and professional improvement. Employees must focus on the tasks given to them.
2. MOTION STUDIES: FRANK AND LILLIAN GILBRETH
Frank and Lillian Gilbreth valued efficiency by identifying and replicating one best way to complete a task.
Husband and wife Frank and Lillian Gilbreth believed in regulation and consistency in the workplace. Rather than encouraging a
company of many working parts, they valued efficiency above all else. The couple believed that there is one best way to get any
job done, and the specific process should, when identified, be replicated through the manufacturing process, eliminating
individual steps and producing the most efficient results.
Frank stated, "The greatest misunderstandings occur as to the aims of scientific management. Its fundamental aim is the
elimination of waste, the attainment of worthwhile desired results with the least necessary amount of time and effort."
3. A Gantt chart is a type of bar chart that illustrates a project schedule, named after its inventor, Henry Gantt (1861–1919),
who designed such a chart around the years 1910–1915. Modern Gantt charts also show the dependency relationships between
activities and current schedule status.

B.BUREAUCRATIC AND ADMINISTRATIVE MANAGEMENT

1. Max Weber – Bureaucratic Management Theory

Weber and Taylor differed in a key area. Weber realized that Taylor’s scientific theory did not account for emotions. He
argued that the rise of technology could lead to a toxic workplace culture. He differs from many management theorists because
of this focus on the negatives. Too much change can affect morale.
Weber’s bureaucratic theory argues for the following:
• Detailed record-keeping at all levels of an organization.
• Employees must have clear job roles so they maintain their focus.
• All organizations should have clear hierarchies.
• The standardization of common procedures.
• Organizations must only hire employees who are fit for the job in question.

2. Henri Fayol – Administrative Management Theory

Henri Fayol, a Frenchman, was the first to issue a complete statement on a theory of general management. Though popular in
Europe in the early 1900s, the theory did not really gain acceptance in America until the late 1940s. Today, Fayol’s greatest
contribution is considered to be his theory of management principles and elements. Fayol identified the following 14 principles
of management

Fayol developed his list of principles from the practices he had used most often in his own work. He used them as general
guidelines for effective management but stressed flexibility in their application to allow for different and changing
Circumstances

C. HUMAN RELATIONS MANAGEMENT

1. Professor Elton Mayo – Human Relations Management Theory
Despite their importance, the previous concepts of management didn’t account for people. Specifically, they all held firm that
money was the main influencer of employee performance.
His study found that relationships work as a key motivator for employees. When working as part of a team, people become more
productive. The improvement was so marked that it became known as “The Hawthorne Effect”.
2. Mary Parker Follett (1868–1933) was best known for her in-depth analysis of conflict situations in public and business
organizations. According to her, “constructive conflict,” based on her idea of inventive integration, is one of the key principles
at “the heart of personnel relations in industry.” In the present study, Follett's contributions related to constructive conflict
are reassessed in the context of their relevance and utility for innovative growth of global enterprises competing in highly
dynamic economies today. These foundations include
1. Experiential tacit knowledge,
2. Face-to-face communication and participation,
3. Empowerment and control,
4. Organizational dynamics, and
5. The strategic contextual leadership.
2. Coordination and Acceptance Theory to Authority
Management theorist Chester Barnard believed organizations need to be both effective and efficient. Effective means meeting
organizational goals in a timely way. Efficient, in his opinion, means the degree to which the organization can satisfy the motives
of its employees. This is known as the acceptance theory of authority.
Acceptance theory of authority states that a manager's authority rests on workers' acceptance of his right to give orders and
to expect compliance.
D. OPERATIONS MANAGEMENT
It involves managing the daily production of goods and services.

F. SYSTEMS MANAGEMENT
System is as set of interrelated elements or parts that function as a whole.
Subsystem – smaller systems that operate within the context of a larger system.
Synergy is a two or more subsystems working together to produce more they can working apart.
Closed Systems are systems that can sustain themselves without interacting with their environments.
Open Systems are systems that can sustain themselves only by interacting with their environments, on which they depend for
their survival.
Entropy is the inevitable and steady deterioration of a system.

G. CONTINGENCY MANAGEMENT
This approach to management holds that there are no universal management theories and that the most effective
management theory or idea depends on the kinds of problems or situations that managers are facing at a particular time and
place.

PROCESSING QUESTIONS
Answer the following questions comprehensively. You can use the back page of your module for your answer.

1. What is Management?

2. What are the functions, roles, and skills of a manager?

3. What are the theories of management? Explain each significance.

 CHRISTIAN SAMARITAN HEALTH SERVICES AND TECHNICAL SCHOOL, INC.
✓ Puerto National Highway, Cagayan de Oro City
Contact No.
Name: Date: Score:

Subject: Organization and Management

Topic: Environmental forces and environmental scanning.
The local and international business environment of the firm.
Content Standard: The learners have an understanding of the role of business in the environment, and how the
environment affects the firm.
Performance Standards: The learners shall be able to analyze the various environmental forces affecting the
firm and summarize these using Political Economic Social and Technological Analysis PEST) and Strengths,
Weaknesses, Opportunities and Threats (SWOT) Analysis frameworks.
Learning Competency: The learners:
Identify various forces/elements of the firm’s environment. (ABM_AOM11-Ic-d-4)
Summarize these forces using the PEST and SWOT analysis. (ABM_AOM11-Ic-d-5)
Describe the local and international business environment of a firm. (ABM_AOM11-Ic-d-6)
References: https://www2.slideshare.net/jhayabesamis/chapter-2-the-firm-and-its-environment Activity No. 2
https://www2.slideshare.net/GLADS123/lesson-2-the-local-and-international-business-environment-of-
the-firm?qid=28b00732-0550-4259-ba56-9cab7f109eed&v=&b=&from_search=2
https://www2.slideshare.net/kathyabaja/elements-of-firms-environment-102553076?qid=73dad0ad-
bcb4-421b-afd2-7a0025ef2be6&v=&b=&from_search=4
Organization and Management Concepts and Applications Book
DISCUSSION

Environmental scanning - is a process of gathering, analyzing, and dispensing information for tactical or strategic
purposes. The environmental scanning process entails obtaining both factual and subjective information on the
business environments in which a company is operating or considering entering.
Environment - refers to institutions and forces that affect organizational performance. - Stephen P. Robbins &
Mary Coulter.
External Business Environment - may be defined as all those conditions and forces which are external to the
business and are beyond the individual business unit, but it operates within it.
External Environment - refers to the environment that has an indirect influence on the business. The factors are
uncontrollable by the business.

Micro External Business Environment

1. Customers - The major task of a business is to create and sustain customers. A business exists only because of
its customers.
2. Employees - Employing staff with relevant skills and experience is essential. This process begins at recruitment
stage and continues throughout an employee's employment via ongoing training and promotion opportunities.
3. Suppliers - An important force in the micro environment of a company is the suppliers, i.e., those who supply the
inputs like raw materials and components to the company.
4. Stockholders/Shareholders - As organizations require investment to grow, they may decide to raise money by
floating on the stock market i.e. move from private to public ownership.
5. Media - Positive media attention can “make” an organization (or its products) and negative media attention can
“break” an organization. Organizations need to manage the media so that the media help promote the positive
things about the organization and reduce the impact of a negative event on their reputation.
6. Competitors - Competition is a basic feature of an open market economy. No business organization can ignore its
competitors and their business strategy.
Macro External Business Environment
1. Political - How changes in government policy might affect the business e.g. a decision to subsidies building new
houses in an area could be good for a local brick works.
2. Economic - How the economy affects a business in terms of taxation, government spending, general demand,
interest rates, exchange rates and global economic factors.
3. Social - How consumers, households and communities behave and their beliefs. For instance, changes in attitude
towards health, or a greater number of pensioners in a population.
4. Technological - How the rapid pace of change in production processes and product innovation affect a business.
5. Legal - The way in which legislation in society affects the business. E.g. changes in employment laws on working
hours.
6. Environmental - Growing awareness of the potential impacts of climate change is affecting how companies
operate and the products they offer, both creating new markets and diminishing or destroying existing ones.

Internal Business Environment - An organization's internal environment is composed of the elements within the
organization, including current employees, management, and especially corporate culture, which defines employee
behavior.
1. Mission Statement - An organization's mission statement describes what the organization stands for and why it
exists. It explains the overall purpose of the organization and includes the attributes that distinguish it from
other organizations of its type. “What do we stand for?”
2. Product - is the item offered for sale. A product can be a service or a goods.
3. Machinery - refers to specific machines or machines in general that business uses to produce products or in
making business operations.
4. Organizations’ Structure - The formal structure of an organization is the hierarchical arrangement of tasks
and people. This structure determines how information flows within the organization, which departments are
responsible for which activities, and where the decision‐making power rests.
5. Organizational Culture - is an organization's personality. Just as each person has a distinct personality, so does
each organization. The culture of an organization distinguishes it from others and shapes the actions of its
members.

PEST (Political, Economic, Social and Technological) Analysis – a measurement tool which is used to assess
markets for a particular product or a business at a given time frame. These can influence marketing and
relationships that a company has worked hard to develop.
SWOT (Strengths, Weaknesses, Opportunities and Threats) Analysis - is an assessment of the strengths and
weaknesses in the internal environment and the opportunities and threats of its external environment.

The Local and International Business Environment of the Firm

Cultural intelligence - is an individual’s ability to favorably receive and adjust to an unfamiliar way of doing things.
This will enable managers to develop their ability to accept and adapt to different cultures, both local and
international, that may affect the organization to which they belong.

Monochronic cultures - refer to cultures emphasize punctuality and sticking to set rules.
Polychronic cultures - are more flexible as regards time; accomplishing many different things at once is also
common for these cultures.
Geert Hofstede’s Cultural Dimensions

1. Power Distance – the degree to which a society accepts or rejects the unequal distribution of power among
people in organizations and the institutions of society.
- India and the Philippines have high power distance, while the US and Australia have low power
distance. The use of the terms “Sir and Madam” to refer to the boss/superior by subordinate employees in the
Philippines shows respect for authority figures, or high power distance. In the US, subordinates just use the name
or nickname of the boss when addressing him or her, indicating lower power distance.
2. Uncertainty Avoidance – the degree to which society is uncomfortable with risk, change, and situational
uncertainty – This dimension describes how well people can cope with anxiety. – In societies that score highly for
uncertainty avoidance, people attempt to make life as predictable and controllable as possible. If they find that
they can’t control their own lives, they may be tempted to stop trying. These people may refer to “maňana,” or put
their fate “in the hands of God.”
- Managers in the US are risk takers. Filipinos are seguristas that are afraid of taking risks within
business endeavors in the market.
3. Individualism – Collectivism – the degree to which a society emphasizes individual accomplishments versus
collective accomplishments. This refers to the strength of the ties that people have to others within their
community. In a collectivist society, however, people supposed to be loyal to the group to which they belong, and, in
exchange, the group will defend their interests. The group itself is normally larger, and people take responsibility
for one another’s well-being.
- Individualistic cultures like those of the US and Australia are characterized as “I” and “Me” cultures
where employees prefer to work alone without help from others. Mexico, Thailand, and the Philippines exhibit
collectivism or preference for group or team work.
4. Masculinity-Femininity – the degree to which a society values assertiveness and feelings of material success
versus concern for relationships. – This refers to the distribution of roles between men and women. In masculine
societies, the roles of men and women overlap less, and men are expected to behave assertively. n feminine
societies, however, there is a great deal of overlap between male and female roles, and modesty is perceived as a
virtue. Greater importance is placed on good relationships with your direct supervisors, or working with people who
cooperate well with one another.
- The Japanese and Mexicans do not hesitate to push or express what they want, unmindful of hurting
other’s feelings, thus showing masculinity. Filipinos, Thais, and Swedes would rather keep quiet and accept defeat if
what they want is not acceptable to others, thus, exhibiting femininity.
5. Time Orientation – The degree to which a society emphasizes short term thinking versus greater concern for
the future or long-term thinking. This dimension was originally described as “Pragmatic Versus Normative (PRA). It
refers to the time horizon people in a society displa.
- The Americans, who are risk-takers, prefer short term thinking. On the other hand, Filipinos and the
Japanese, who are not risk- takers, are long term thinkers.

ACTIVITY 2.2
Direction: Identify if it is Political factor, Economic factor, Social factor and Technological factor. Write your
answer in the space provided before each number.

_________________1. According to the Labor Code of the Philippines (Presidential Decree No. 442), every
employee shall be paid a night shift differential of not less than ten percent (10%) of his regular wage for each
hour of work performed between ten o’clock in the evening and six o’clock in the morning.
_________________2. Muslims perceptions of Halal products.
_________________3. The use of Facebook page to increase the marketability of the product.
_________________4. Imports will be more expensive (any imported good or raw material will increase in price).
_________________5. Government implement 12% VAT for Digital Transactions such as Netflix, Lazada and
others.

ACTIVITY 2.3
Direction: Identify if it is Strengths, Weaknesses, Opportunities and Threats. Write your answer in the space
provided before each number.

_________________1. Weak Leadership.

_________________2. Strong Competition.
_________________3. Competitive Salary.
_________________4. Wide Range of Customers.
_________________5. Popular Brand.

PROCESSING QUESTIONS
Answer the following comprehensively. You can use the back page of your module for your answer.

1. What is Cultural Intelligence? How important is it in terms of doing business globally?

2. What is Uncertainty Avoidance? How it affects the local and international business environment of a firm?