Republic of the Philippines

BULACAN AGRICULTURAL STATE COLLEGE

Institute of Education
Pinaod, San Ildefonso, Bulacan, Philippines 3010
Cert. No. 19.67.PH212501.00

Name: MENDOZA, RACHELLE ANN G.

Course/Year/Section: MAEd-IB

Written Report
Development Management or Outsourcing
Institutions and Organizations

Outsourcing- the business practice of hiring a party outside a company to

perform services or create goods that were traditionally performed in-
house by the company's own employees and staff.
- a practice usually undertaken by companies as a cost-cutting
measure.
- first recognized as a business strategy in 1989 and became an
integral part of business economics throughout the 1990s.
- the practice of outsourcing is subject to considerable
controversy in many countries.
- a strategic management model wherein business processes are transferred
to another company.
- it has also drawn criticism for its impact on the labor market in domestic
economies
Outsourcing Business Models

● Shared Service Center

● Spin-off
● Outsourcing to an external organization

Other Potential Benefits of Outsourcing

● Renewed focus on core business

● Mitigation of risk by reliance on an expert
● Improved customer satisfaction through improved process not part of the enterprise’s
culture or experience
● Ability to reward workers with career opportunities in a specialty company
● Project improvement
● Service improvements
● Technology Infusion
● Skills upgrade, retention and access
● Avoidance of capital investment

Examples of Outsourcing
 Republic of the Philippines
BULACAN AGRICULTURAL STATE COLLEGE
Institute of Education
Pinaod, San Ildefonso, Bulacan, Philippines 3010
Cert. No. 19.67.PH212501.00

o A manufacturer of personal computers might buy internal components

for its machines from other companies to save on production costs. 
o A small company may decide to outsource bookkeeping duties to
an accounting firm, as doing so may be cheaper than retaining an in-
house accountant. Other companies find outsourcing the functions of
human resource departments, such as payroll and health insurance, as
beneficial. When used properly, outsourcing is an effective strategy to
reduce expenses, and can even provide a business with a competitive
advantage over rivals.

What Are the Disadvantages of Outsourcing?

● communication difficulties
● security threats where sensitive data is increasingly at stake
● additional legal duties

Institutions and Organizations

Organization

• means a systematically organized collection of people, with a common goal and

identity associated with an external environment, like a business entity or a
government department
• a group of people, engaged in chasing the predetermined goals or set of goals.
• it is a social system that ascertains all formal relations between the activities and the
members.
• owned and controlled by one person or a group, who are the members, of the
organization itself. 
• the head of the organization is chosen either on a permanent or temporary basis,
through voting at the annual general meeting, in which all the members of the
organization participate.

Two Types of Organization Structure

Formal Organization Structure

- Line Organization
- Functional Organization
- Line and Staff Organization
- Project Management Organization
- Matrix Organization

Informal Organization Structure

 Republic of the Philippines
BULACAN AGRICULTURAL STATE COLLEGE
Institute of Education
Pinaod, San Ildefonso, Bulacan, Philippines 3010
Cert. No. 19.67.PH212501.00

- group of people who share a common identity and are committed to

achieving a common purpose.
- created by the will and shared identity of their members.

Institutions

o encompasses an entity, with a high degree of sustainability, that can be

seen as an indispensable part of the large society or community.
o commonly used for the place of knowledge.
o be defined as a receptive organization, which comes into being as a
result of social needs and pressures.
o t is a portion of a large society or community, which is forward looking
in nature.
o exhibit and protects the frequently held norms and values of the
society.

Types of Institutions

Basic Institutions
• those that are seen as important to maintain social order in society.

Subsidiary Institutions
- are a bit complicated in the way that they aren’t necessarily so much to
maintain social order.

Operative Institutions
- function is to organize patterns which are necessary to attain any objective.

Relative Institutions
- who isn’t a part of the regulative institution themselves but help in
controlling the custom and other forms of behavior.
 Republic of the Philippines
BULACAN AGRICULTURAL STATE COLLEGE
Institute of Education
Pinaod, San Ildefonso, Bulacan, Philippines 3010
Cert. No. 19.67.PH212501.00

References:

Outsourcing Definition (investopedia.com)

Outsourcing Knowledge Center and Forum – 12manage
Difference Between Organization and Institution (with Comparison Chart) - Key Differences
Difference Between Organization and Institution – Difference Wiki