ORGANIZATION AND MANAGEMENT

Nature and Concept of Management Main Aspects of Management

Management ● Management is a process.
➔ “Set of activities directed at the effective and 1. Planning
efficient utilization of resources in the pursuit - identifying the objective of a
of one or more goals” - Van Fleet and Peterson task and corresponding
➔ “a problem-solving process of effectively activities
achieving organizational objectives through 2. Organizing
efficient use of scarce resources in a changing - gathering the resources and
environment.” - Kreitner allocating them effectively and
➔ “an art of knowing what to do when to do efficiently.
and see that it is done in the best and cheapest 3. Leading
way.” – F.W. Taylor - connect and communicate
➔ “art of getting things done through and with with direct, coordinate,
the people in formally organized groups. It is an influence, and motivate
art of creating an environment in which people 4. Controlling People
can perform and individuals and can co-operate - monitoring, evaluating,
towards attainment of group goals.” - Harold correcting
Koontz ● Management uses resources
➔ “working with human, financial and physical ○ Money
resources to achieve organizational objectives ○ Materials/Machines
by performing the planning, organizing, leading ○ Time
and controlling functions.” - Megginson, ● Management aims to achieve objectives S-
Mosley, and Pietri Specific - sufficient detail
M-Measurable - verified through performance
indicators
A- Attainable - achieved by finding own
ways or strategies
R- Realistic - can be accomplished given the
current resources
T- Time Bound - within a definite time period
Process of Management
1. Planning
- defining the organizational purpose
and the ways to achieve it.
Work plan
(1) the objectives
(2) the corresponding activities to
accomplish the objectives,
(3) the persons responsible for
doing the activities,
(4) the time frame or duration of
accomplishing each of the activities,
and
(5) the resources required or
needed to successfully complete the
activities.
2. Planning
- arranging and structuring the work to
accomplish the organizational goals.
- Effectiveness and efficiency matrix
3. Leading
- directing the work of others.
4. Controlling
- monitoring, comparing, evaluating the
activities undertaken in relation to the
stated objectives, and correcting the
work if needed.
Organization
- composed of people who have the same or
similar interests that
- work together to achieve a common goal or
objective.
Characteristics of Organizations
● distinct purpose
● composed of people/groups including
governments.
● has deliberate/intentional structure.
- to allow people to work with
autonomy and responsibility.
● operates within an open system
1. Resource Input
People Materials
Money
Technology
2. Transformation Process
convert
inputs to
Outputs
3. Product/Outputs
Finished goods and services
- In an organization, everybody is dispensable,
but the goal stays the same.
Organizations on the Philippines Private organizations
1. Government Organizations 1. Sole Proprietorship
a. National agencies - Owned by 1 person (sole
b. Local agencies proprietorship)
2. Private organizations - Owner has full liability
a. Business enterprises - Registered with the DTI
- are industry players may be in 2. General Partnership
the form of sole proprietorships, - Owned by 2-4 persons (partners).
partnerships, corporations, or - The partners have full liability.
cooperatives - Governed by Articles of Partnership.
b. Business associations - Registered with the Department of
- groups of business Trade and Industry (DTI).
enterprises 3. Limited Partnership
3. Nongovernmental Organizations - Owned by 2-4 persons
a. Civil society groups - Each partner‘s liability is limited to
b. foundations his/her shares contributed to the
business.
- governed by Articles of Partnership.
- Registered with DTI
4. Corporation
- Ownership is through shares of
stock. (incorporators)
- separate legal identity
- Liability is limited to the amount
invested
- board of directors serves as the
policy-making body
- Governed by Articles of
Incorporation.
- registered with the Securities and
Exchange Commission (SEC).
5. Cooperative
- Ownership is equally shared among
members.
- board of directors and officers serve as
the policy-making body
- governed by Articles of Cooperation.
- registered with the Cooperative
Development Authority (CDA).
Theories Theory Y
“Today‘s organizations are the evolved ● participative style
organizations of the past.” ● manager believes that workers
3 types of theories are trustworthy and are
1. Classical Theories (1900-1930) capable of improving.
➔ Came from western ● training programs
➔ industries were starting to be
3. Modern Management Theories (1950-1980)
developed, they were putting up the ➔ quantitative analysis and tools in production
economy and operation management.
➔ More on productivity ➔ does not believe in one best way in
◆ Do not focus much on management, but believe in matched
welfare of employees unique managerial responses.
➔ Factories for productivity
➔ One best way
Functions, Roles, and Skill of a Management
◆ One way only
◆ Manufacturing companies 2 kinds of employee
2. Behavioral Management Theories 1. Nonmanagerial Employees
(1930-1950) - work directly on a job or task and
➔ Welfare of workers have no responsibility overseeing
➔ Most important resources = people the work of other.
◆ Paying for their skills that 2. Managements
can’t be replicated - direct activities or work
◆ Staff Turnover - staff moving - mainly responsible and accountable for
to another company accomplishing the specific goal or
➔ Human relations should be good objectives of the group/s.
➔ Elton Mayo What do managers do?
◆ Cooperative system - lead, direct, supervise, monitor, evaluate, and
◆ Good relation between
control the performance of their group/s.
workers and organization
➔ Abraham Maslow
◆ Hierarchy of human needs
1. Survival
2. Affection
3.
➔ Douglas Mcgregor
● Theory X and Y
Theory x
● Authoritative Style
● Centralized decision making
● does not believe that worker
are capable of developing
themselves.
● example, salary deduction,
demotion, dismissal
Basic Management levels Skills required for managers
1. Top Managers A. Technical Skills
- Make decisions about strategy of - Ability to do assigned job
organization - Based on Education
Titles Experience
● President trainings
● Vice-President B. Human Skills
● CEO - Ability to work well with people
● CFO - Include
2. Middle Manager Social skills
- coordinate with top managers and Communication Skills
first-level managers C. Conceptual Skills
- manage the work of the first-level - Ability to think critically and
managers. analytically
Titles - include
● Division Head, - problem-solving skills(most
● Department Head, important)
● Division manager - Logical thinking
3. First-level Managers - Logical reasoning
- first-line or bottom managers - Creative imagination
- direct nonmanagerial employees - Keen observant
Titles
● Supervisor,
● team leader

Roles of Managers
A. Interpersonal
❖ Figurehead - representative
❖ Leader - provide direction to the
activities
❖ Liaison - coordinate the activities to
diff groups in the organization
B. Informational
❖ Monitor - watch and ensure that
things get done
❖ Disseminator - give information and
track what is happening in and out of
the organization
❖ Spokesperson - Represent the
department
C. Decisional
❖ Entrepreneur - to do new things, go for
improvements
❖ Disturbance hander - fix problem c)
Resource allocator- distribute work
and resources
❖ Negotiator - work with different
employees
The Firm and its Environment Planning and Decision Making
Environmental Scanning Planning = End result (Goal) thru procedure
- Analyzing the environment - Plans make people celebrate their
- Maximize opportunity accomplishments
- Minimize risk - Help people realize where they
Analytical Tools made mistakes
● PEST Planning
● PESTLE - Management that focuses on setting
- Political objectives and how to achieve them
- Economic - 1st function of the management function
- Social cycle
- Technological - Beginning and most important
- Natural Risks - Gives clarity on the end of the task
- Legal - Based on information (if wala, use instincts)
- Ecological Benefits
● SWOT Analysis 1. Sharpens our focus
- strengths and weaknesses 2. Provides flexibility
● Porter’s Five Forces Model 3. Improves coordination
- Industry analysis 4. Tightens control
- Companies offering same
products
❖ Industry Competitors
- rivalry among
existing competitors
❖ Supplier
-Raising prices
❖ Buyers
-buyers put pressure
for higher quality
❖ Potential Entrants
-new rival companies
❖ Substitutes
-substitute products

Business environment
★ Companies perform as open system
- Affected by
external
factors
★ Corporate Social Responsibility
- Companies involve and give back to
the community
Business Environment
- External
- Internal
Types of plans
1. Plans according to horizon or intended
duration
a. Long Range Plans
- 3 or more years
- Usually backed up by
research
- Strategic (top managers)
b. Short Range Plans
- Monthly, Annually
2. Plans according to the firm's operation
a. Standing plans
- Repeatedly used
- Repeating problems
- Eliminate conflict
Ex. Policies, Rules
b. Single Use Plans
- Only once
- Non recurring problems
- Specific plan/program
- Unique problems
Ex. Plan for project, budget
3. Plans according to management levels
a. Strategic plans
- For top management
Ex. Mission, Vision, Values
b. Functional Plans
- Tactical plans
- Techniques
- Plans we use to function
Ex. Production
Top m - Strategic Plans
Mid M - Functional Plans
First-Level M - detailed functional
plans (because sila mag-eexecute
Planning techniques and tools
1. Forecasting
- Planning ahead
Ex. Sa sales
Production
If malaki surplus = loss
If shortage = opportunity cost
How to know correct value?
- Analyze past sales/historical
data
2. Contingency planning
- Planning for unseeable events
- Ex. Plan A, B, C
3. Scenario Planning
- Planning according to scenario
Approaches
A. Inductive
- Starts with potential
possibility based on familiar
context but not yet well tested
B. Deductive
- Starts with general and well
tested concept or principle
C. Incremental
- Gradual development of
possibilities
D. Normative
- Developing possibilities
originating from a major path
to a grand vision
4. Benchmarking
- techniques used to find the ―best
practices ―within the organization or
from other organizations, and
incorporate into the firm‘s operations.
- External benchmarking
- Internal Benchmarking