SUBJECT: PRINCIPLES OF THEORIES

NAME: NORMEL C. CARATAY

SCHOOL: ASIAN DEVELOPMENT FOUNDATION COLLEGE Inc.

Leadership – is the process of encouraging and helping others to work enthusiastically towards
objectives. It is the behaviour of an individual when he is directing the activities of a group
towards a shared goal. It is the relationship in which one person influences others to work
together willingly on related task to attain goals desired by the leader and/or group.
Leadership Traits – refer to personal qualities that define effective leaders. Leadership refers to
the ability of an individual or an organization to guide individuals, teams, or organizations
toward the fulfilment of goals and objectives. It plays an important function in management, as it
helps maximize efficiency and achieve strategic and organizational goals. Leaders help motivate
others, provide guidance, build morale, improve the work environment, and initiate action.
Leadership Power – is the influence that leaders have over their followers. It persuades others
to support their efforts and do as they ask. Influence is essentials to leadership because leaders
cannot exist without it. It also a key component of power and authority. Power is the influence
someone has over another. It refers to the ability to accomplish a goal with the help of others.
Authority is the right to exercise that influence.
Principle Harmony – An organization aims at achieving the predetermined objectives with the
help of people. With different techniques of direction management should try to integrate the
organizational and individual objectives. The interest of group must always prevail over
individual interest.
4.5 Controlling – is the measurement and correction of performance in order to make sure that
enterprise objectives and the plans devised to attain them are being accomplished.
Types of Control:
Feedback Control – involves gathering information about a past activity or action, and
evaluating that information, and taking steps to improve similar activities or action in the future.
Concurrent Control – the process of monitoring and adjusting orgoing activities and processes
is known as concurrent control. Concurrent controls are dynamic engagement in a current
process where observations are made in real-time. Such controls are not necessarily proactive,
but they can prevent problems from getting worse.
Feedforward Control – a management and communication term that alludes to a representative
or an association to give a controlled impact from which you are expecting output.
 Behavioral Control – it involves direct evaluation of managerial and employee decision
making, not the results of managerial decisions. Behavioral Control identified rewards for a wide
range of criteria, such as in a balanced scorecard. When there are many external and internal
factors, behavioural control and appreciative rewards are more appropriate that may affect the
relationship between manager’s decisions and organizational performance.
Financial and non-financial controls – involve the management of a firm’s costs and expenses
so that they can be controlled in relation to budgetary amounts. Thus, in this way management
determines which aspects of its financial position, such as profitability sales or assets, are most
important for the organization tries to forecast them through budgets, and then compares actual
performance to budgetary performance.
Effective System Control – System access controls are one of the fundamental IT controls to
ensure system security and data integrity. There are many facets to consider when implement
effective system access controls.
1. Ensure that there is support from senior management and board, and there is a top-down drive to
establish and communication policies with regard to IT security and access management. The
top-down drive sets the direction, goals, and tone of the IT security and access policies and holds
users accountable for any action on any of the system and/or applications involved. Some policy
areas to consider are unique identification, need-to-know security basis, authenticate and
authorize mechanisms, approval authority, data protection and dissemination, and accountability.
2. Ensure that roles and access authorization criteria for assigning user rights are taken into
account. Data should be classified (for example, public data, internal data, and restricted data)
and data owners assigned. Job roles and responsibilities should be very clearly defined, and
ideally, the system security roles are designed by the job roles and responsibilities and taking
segregation of duties into consideration. When granting system access, the permission rights are
associated with the job function, and the approvals are obtained.
3. Ensure that there are defined processes for identifying new users and recording, approving and
maintaining access rights. The processes need to ensure, again:
a.) The user access rights are in line with business needs.
b.) Access rights are requested by the user management,
c.) The access rights are approval by system/data owners (in many cases, user manager and data
owner are not the same person).
d.) The user access rights are implemented by the security administrators.
4. Establish a method for authenticating and authorizing users to establish responsibility and
enforce access rights in line with sensitivity of information and functional application
requirements and infrastructure components, and in compliance with applicable laws,
regulations, internal policies and contractual agreements. It is easy to confuse authentication
with authorization. While authentication verifies the user’s identity, authorization verifies that
 the user in question has the correct permissions and rights to access the requested resource.
Authentication occurs first, then authorization.
5. Ensure that users and their activities on the system can be uniquely identifiable. The best
practice calls for disabling certain default system accounts such as administrator and guest.
Make sure that shared user accounts are not used. Shared accounts are used more often for
vendor’s access, temporary accounts, and administrator’s account (extremely high risk). Another
form of shared accounts is the services.
6. Ensure that there is a process in place to report changes in job’s in a timely manner. The purpose
of the processes is to ensure a timely granting and removal of system access, and therefore,
prevent access permission creep.
7. Ensure that there is a process in place to grant, revoke and adapt user access rights in
coordination with Human Resources and user department for new hire and termination.
8. Ensure that there is a process in place to periodically review user access by user management
and system/data owners. The review includes internal network accounts, external accounts,
application accounts, and elevated access accounts. Changes of the user access due to the access
review need to be documented and implemented in a timely manner.
4.2 ORGANIZING – is the second key management function, after planning, which coordinates
human efforts, arranges resources and incorporates the two in such a way which helps in the
achievement of objectives. It involves deciding the way and means with which the plans can be
implemented.
NATURE AND PURPOSE OF ORGANIZING – From the study of the various definitions
given by different management experts we get the following information about the nature of
organization.
Division of Work: is the basis of an organization. In other words, there can be no organization
without division of work. Under division of work the entire work of business is divided into
many departments. The work of every department is further sub-divided into sub-works. In this
way each individual has to do the work repeatedly which gradually makes that person an expert.
Coordination: Under organizing different persons are assigned different works but the aim of
all these persons happens to be the some-the attainment of the objectives of the enterprise.
Organization ensures that the work of all the persons depends on each other’s work even though
it happens to be different. The work of one person starts from where the work of another person
ends. The non-completion of the work of one person affects the work of everybody. Therefore,
everybody completes his work in time and does not hinder the work of others. It is thus, clear
that it is in the nature of an organization to establish coordination among different works,
departments and posts in the enterprise.
Plurality of Persons: Organization is a group of many persons who assemble to fulfil a
common purpose. A single individual cannot create an organization.
Common Objectives: There are various parts of an organization with different functions to
perform but all move in the direction of achieving a general objectives.
Well-defined Authority and Responsibility: Under organization a chain is established between
different posts right from the top to the bottom. It is clearly specified as to what will be the
authority and responsibility of every posts. In other words, every individual working in the
organization is given some authority for the efficient work performance and it is also decided
simultaneously as to what will be the responsibility of that individual in case of unsatisfactory
work performance.
Organization is a Structure of Relationship: Relationship between persons working on
different posts in the organization is decided. In other words, it is decided as to who will be the
superior and who will be the subordinate. Leaving the top level post and the lowest level post
everybody is somebody’s superior and somebody’s subordinate. The person working on the top
level post has no superior and the person working on the lowest level post has no subordinate.
Organization is a Machine of Management: Organization is considered to be a machine of
management because the efficiency of all the functions depends on an effective organization. In
the absence of organization no function can be performed in a planned manner. It is appropriate
to call organization a machine of management from another point of view.
Organization is a Universal Process: Organization is needed both in business and non-
business organizations. Not only this, organization will be needed where two- or more than two
people work jointly. Therefore, organization has the quality of universality.
PURPOSE OF ORGANIZING: The purpose of an organization structure is to establish a
form so that they may better work together to achieve the enterprises objectives. To establish a
formal system of roles that people can perform means that the purpose of organizing is.
• Grouping of activities is necessary to attain objectives.
• The assignment of each group to manage with authority necessary to supervise it.
• Creating coordination horizontally and vertically in the enterprise structure.
The purpose of organizing function of management is to create a clear environment so
that everyone knows as who is to do what, who is responsible for what result, to remove
obstacles to performance caused by confusion and ensure certainty of assignment, to create an
environment to achieve the efficiency of people towards the accomplishment of organization
goals.
ORGANIZATION STRUCTURE – An organizational structure is a system that outlines how
certain activities are directed in order to achieve the goals of an organization. These activities
can include rules, roles. And responsibilities. The organizational structure also determines how
information flows between levels within the company. For example, in a centralized structure,
decisions flow from the top down, while in a decentralized structure, decision-making power is
distributed among various levels of the organization.
TRENDS IN ORGANIZATION
•There are five key organizational trends that you should be aware of.
GLOBALIZATION
•Increasingly globalized sales, manufacturing, research. Management
•Movement from direct exports to having sales offices in different countries to having
manufacturing to all functions spread across the globe.
•Increasingly globalized labor markets
Due to:
•Reduced cost and improved quality of international transportation and communication.
•Search for unsaturated markets
•Exploit regional cost and expertise differences
DIVERSITY
•Workforce getting more heterogeneous sexually, racially, culturally, individually, etc.
•Source of both innovation and conflict/communication problems.
•Need to cope with different styles of interaction, dress, presentation, physical appearance.
Due to:
•Changing demographics
•Globalization of the labor market
FLEXIBLE
•Organizational system and processes and people that can respond differently to different
situations
•Fewer detailed rules and procedures
•Greater autonomy, encouragement for initiative
•Customizable employment relationships: telecommuting, job sharing, mommy tracks,
pay for skills
•Lifetime employability, not lifetime employment
Due to:
•Differentiated customer’s needs- filling them exactly is source of competitive advantage
•Increasing diversity in workplace
•Increased pace of change in technology and markets
FLAT
•Fewer levels of management
•Workers empowered to make decisions
•Fewer differences in responsibility (not in pay) across levels
Due to:
•Need for speed, which makes it helpful to empower employees to make decisions, which
means fewer managers are needed
•Changes in information technology mean less need for the communication and control
functions of middle managers
•Globalization means intensified competition, which increases the need to cut costs.
NETWORKED
•Direct communication across unit & firm boundaries, ignoring chain of command
•Cross-unit team structures
•Outsourcing & downsizing
•Strategic alliances with competitors and others
•Now have firms that are your competitors, customers and collaborators all at the same time.
•Close coordination among firms (e.g., JIT system) and information sharing (open computer
systems)
•Across the board contact with customers, not just official boundary spanners
•Customization
•Decentralization
Due to:
•New information technologies, especially groupware, client-server, distributed computing
•Fast changing customer needs and competitor offerings
•More complicated products require better integration of manufacturing, design, and marketing
functions

AUTHORITY AND RESPOSIBILITY – In an organization, dividing work among people and

coordinating their activities towards a common objective needs to be done efficiently. Authority
and responsibility are two of the most important components of a smooth-functioning business.
In this article, we will talk about authority and responsibility in details.
MAKING ORGANIZING EFFECTIVE – may sound like an empty corporate buzzword, but
more and more it’s become a measurement for company success. In fact, it’s become such a hot-
button concept recently that some universities are offering certificate programs toward its
 implementation. Making organizing effective refers to how an organization has achieved full
self-awareness due in part to:
• Leaders setting well-defines goals for employees and outlining ways to efficiently execute
those goals.
• Management implementing clear decision-making processes and communication pipelines.
•Engaged employees-who are carefully selected and fairly compensated-producing work that
prioritizes results.

4.3 STAFFING – The term “staffing” relates to the recruitment, selection, development,
training and compensation of the managerial personnel. Staffing, like all other managerial
functions, is the duty which the apex management performs at all times. In a newly created
enterprise, the staffing would come as a third step – next to planning and organizing-but in a
going enterprise the staffing processes.
NATURE AND PURPOSE OF STAFFING
1. People Centered:
Staffing is people centered and is relevant in all types of organizations. It is concerned with all
categories of personnel from top to bottom of the organization.

The broad classification of personnel may be as follows:

(I) Blue collar workers (i,e., those working on the machines and engaged in loading, unloading etc.)
and white collar workers (I,e., clerical employee).
(II) Managerial and non-managerial personnel.
(III) Professionals (such as Chatered Accountant, Company, Secretary, Lawyer, etc.).

2. Responsibility of Every Manager:

Staffing is a basic function of management. Every manager is continuously engaged in
performing the staffing function. He is actively associated with recruitment, selection, training
and appraisal of his subordinates. These activities are performed by the chief executive,
departmental managers and foremen in relation to their subordinates. Thus, staffing is a
pervasive function of management and is performed by the managers at all levels.

SELECTION PROCESS – The selection process of picking the right candidate with
prerequisite qualifications and capabilities to fill the jobs in the organization. The selection
process is quite lengthy and complex as it involves a series of steps before making the final
selection. The procedure of selection may vary from industry to industry, company to company
 and even from department to department. Every organization designs its selection process,
keeping in mind the urgency of hiring people and prerequisites for the job vacancy.

SELECTIN PROCESS:
The selection procedure comprises of following systematic steps:
1. Preliminary Interview: is also called as a screening interview wherein those candidates are
eliminated from the further selection process who do not meet the minimum eligibility criteria as
required by the organization.
2. Receiving Application: Once the individual qualities the preliminary interview he is required to
fill in the application form in the prescribed format. This application contains the candidate data
such as age, qualification, experience, etc. This information helps the interview to get the fair
idea about the candidate and formulate questions to get more information about him.
3. Screening Applications: Once applications are received, these are screened by the screening
committee, who then prepare a list of those applicants whom they find suitable for the
interviews. The shortlisting criteria could be the age, sex, qualification, experience of an
individual. Once the list is prepared, the qualified candidates are called for the interview either
through a registered mail or e-mails.
4. Employment Test: In order to check the mental ability and skill set of an individual, several
tests are conducted. Such as intelligence tests, aptitude tests, interest test, psychological tests,
personality tests, etc. These test are conducted to judge the suitability of the candidate for the
job.
5. Employment Interview: The one on one session with the candidate is conducted to gain more
insights about him. Here, the interviewer asks questions from the applicant to discover more
about him and to give him the accurate picture of the kind of a job he is required to perform.
6. Checking References: The firms usually ask for the references from the candidate to cross
check the authenticity of the information provided by him. These references could be from the
education institute from where the candidate has completed his studies or from his previous
employment where he was formerly engaged. These references are checked to know the conduct
and behaviour of an individual and also his potential of learning new jobs.
7. Medical Examination: Here the physical and mental fitness of the candidate are checked to
ensure that he is capable of performing the job. In some organizations, the medical examination
is done at the very beginning of the selection process while in some cases it is done after the
final selection
8. Final Selection: Finally, the candidate who qualifies all the rounds of a selection process is
given the appointment letter to join the firm
THUS, the selection is complex and a lengthy process as it involves several stages than an
individual has to qualify before getting finally selected for the job.

SELECTION METHOD – Selection is concerned with picking up the right candidates from a
pool of applicants. Selection on the other hand is negative in its application in as much as it
seeks to eliminate as many.
APPRAISAL OF ADMINISTRATIVE/SUBORDINATES – become an ordinary practice in
the early 21st century as companies promote more broad-ranging internal communication. The
subordinate appraisal is an evaluation tool whereby employees assess the performance of their
supervisor. Concerns about possible repercussions of honest feedback loom, but there are some
significant benefits to this type of evaluation.