Organization and Management

GREEN VALLEY COLLEGE FOUNDATION, INC.
Document Code: FM-DEA-031

Km.2, Bo.2, Gensan Drive., Koronadal City South Cotabato Issue No: 01 Revision No: 00
Effectivity Date: June 4, 2020
INSTRUCTIONAL MATERIALS Page No: P a g e | 1
SCHOOL OF MANAGEMENT
LESSON I
DEFINITION AND FUNCTIONS OF MANAGEMENT AND THE DIFFERENT
THEORIES OF MANAGEMENT
This module explains the meaning of management and the different functions that a
manager and an employee observe and exercise in the organization. Further, it discusses the
different theories that evolves and still used by companies even to the present days.
Learning Objectives:
The following are the things that you will learn after the lesson:
1. Discuss the meaning and functions of management; and
2. Explain the various Types of Management Theories.
Consider the following terms below…

Management – is handling of people tactfully and the consolidation of their efforts and activities
in the organization.
Organization – is a group of people who work together in an organized way for a shared
purpose/common good.
Planning – involves mapping out of exactly how to realize a specific goal.
Organizing – determines what tasks have to be done, who needs to do the task and how the
tasks are to be performed.
Staffing – involves thorough recruitment, selection, and hiring of potential personnel in the
organization.
Directing – involves the supervision and motivation of manager towards his/her employees to
be more productive and efficient.
Controlling – deals with monitoring the company’s progress and ensuring that all other
functions are operating efficiently.
Classical Theory – is the oldest theory which gives emphasis on the economic rationality of
people that through their efforts yield greatest monetary benefits or income.
Neo-Classical Theory – believes that the best way toward gaining maximum productivity from
workers is through motivation, structure and supporting employers, workers intrinsic values in
their job and positive social relationship.
Modern Management Theories – focuses on the interaction between organizations, workers,
and the environment. The application of management knowledge is extended to non-business
areas like Education, government, health care and others.
Organization and Management (Bridging Program)

GREEN VALLEY COLLEGE FOUNDATION, INC. Document Code: FM-DEA-031
I. Direction: Choose your answer from the options given below;
_____ 1. This deals with the monitoring of the company’s progress and using corrective
measures if necessary.
_____ 2. It involves mapping out how to realize a specific goal.
_____ 3. It involves manning in the organization.
_____ 4. Focuses on handling of people tactfully.
_____ 5. This determines what, who and how task is to be done.
_____ 6. This deals with the complexity and the relationship of organizations, workers,
and environment.
_____ 7. Believes that the best way toward gaining maximum productivity is through
motivation, structure and supporting employers.
II. Management Personal Introspection

Guide questions:
1. What do you understand about the term “management”?
2. As a student, how are you going to apply the concept of management?
WHAT IS MANAGEMENT?
Management of people has already been observed and has long existed as there were
already groups of people in every community even before. This setup gives different
perspectives or ideas on how management is defined. Management is defined as handling of
people tactfully and consolidating their efforts and activity in the organization. But according to
Theo Heimann management can be defined in three ways:
1. Management as a noun, is used as singular collective noun (like group) which refers to a
discrete nature of grouping of managers or people in charge of running a company or
organization.

2. Management as a process, it refers to organizational process that includes strategic

planning, setting objectives, managing resources, deploying labor force, financial assets and
measuring results.
3. Management as a discipline, this refers to that branch of knowledge which is connected to
study of principles & practices of basic administration. It specifies certain code of conduct to be
followed by the manager and indicates various methods of managing enterprise.
The following are the different managerial functions that a manager exercises.
PLANNING
This includes defining goals, establishing strategy, and developing plans to coordinate
activities. It involves mapping out exactly how to realize a specific goal. It also requires
knowledge to create, develop and analyze opportunities which is known as strategic planning.
There are two types of planning;
a.) Long range planning
b.) short range planning
ORGANIZING
This is also known as the backbone of management. It is the structure of the
organization which help determines what task to be done, who needs to do the task and how
the task is to be performed and for whom to report to after the task is achieved.
STAFFING
This involves manning in the organization. This requires recruitment, thorough selection
of applicants and hiring of potential employees for the organization. It is also responsible for
training and development of the employee to be promoted, transferred, demoted or even be
fired from the organization.

DIRECTING
This involves the supervision and motivation of manager towards his/her employees to
be more productive and efficient. When there is a high morale in the organization, it usually has
a significant impact on the performance and productivity of the employees. Therefore, there is a
need for the manager to motivate employees, supervise, and direct them to be more effective
and efficient at work. Good communication is essential since this builds positive interpersonal
relationship from and among employees. Thus this can resolve conflicts that might arise in the
organization.
CONTROLLING
This deals with monitoring the company’s progress and ensuring that all other functions
are operating efficiently. Since this is the last stage, uncertain situation usually arises that might
disrupt the operation of the business. Therefore, there is a need for the management to exercise
corrective actions after thorough assessment and evaluation.
After knowing what management is as well as the different functions of management, you are
now ready to perform the activity below.
III. Friends’ Birthday Party Scenario. Read carefully the situation and answer the question.
You and your friends come up with an idea of surprising a friend who will be celebrating her
birthday tomorrow. Unfortunately, it is only now that they asked you to organize the said event.
Given the least possible time, what will you do? How are you going to organize the event?
Good management is really essential in a company as this enables employees or

workers to perform productively and efficiently their work tasks.
To do this, industries and companies apply management theories.
The following are the different Theories of Management:

A. Classical Theories of Management

Classical Theory (1900 – 1920’s) is the oldest theory. This theory evolved in
response to the shift from handicraft to industrial production. The emphasis is on the
economic rationality of people and organizations, motivated by economic incentives that
through their efforts yield greatest monetary benefits or income.
Classical management theories come in the likes of:
Theorist Theory
Theorist Theory Max Weber (1905) The Theory of Social and Economic Organization
- follows the principles of bureaucracy such as;
management by rules, employment are based on technical
qualification and other principles.
Frederick Taylor (1911) Principles of Scientific Management

-proposed an objective and systematic method to identify
“the one best way” to do a job using scientific selection and
training methods; cooperation and clear division of
responsibility between managers and workers; pay for
performance.
Frederick Taylor (1912-1924) Time and Motion Studies

-The expected results are employee satisfaction,
productivity and efficiency.
Henry Gantt (1910-1915) Project Scheduling or the Gantt Chart

- a project scheduling model for increasing the efficiency of
project execution and completion.
Henry Fayol (1916)

The Administrative School of Management
- emphasize that managers need specific roles in order to
manage work and workers. He enumerated 6
functions/roles of management the forecasting, planning,
organizing, commanding, coordinating and controlling.
B. The Neo-Classical Theories of Management

The Neo-classical theories believe that the best way toward gaining maximum
productivity from workers is through motivation, structure and supporting employees consider
the worker’s intrinsic value in their jobs and having emphasis in the positive impact of social
relationship of worker productivity.

Under neo-classical theories, theorist focuses on human relations and behavior of the
employees.
Theorist Theory
Mary Parker Follett Participative Leadership
- Workers and managers equally share power and responsibility
for decision making and therefore, their outcomes.
Hawthrone Studies The Hawthrone effect

- Workers care about self-fulfilment, autonomy, empowerment,
social status and personal relationship with co-workers and
managers.
Elton Mayo / Fritz Human Relation Theory of Management

Roethlisberger - People are social being, motivated by social needs. The
psychological needs of individual significantly impact group
performance.
Chester Barbard The Function of the Executive

-proposed the acceptance theory of authority which organizational
goals will be achieved and managerial authority will be accepted if
workers believe that their individual needs are being meet.
Abraham Maslow Hierarchy of Needs Theory

-If motivation is driven by the existence of unsatisfied needs, then
it is worthwhile for a manager to understand which needs are
more important for individual employees.
Douglas McGregor The Theory X and Theory Y

- Theory X states that workers inherently lazy, lack of ambition
and prefer to be directed rather than take responsibilities. While
Theory Y workers seek out and fulfill responsibilities of their own.
They apply ingenuity, creativity and hard work to meet
organizational goals.
C. The Modern Theories of Management
Dealing with complexity is the core of modern management theory. Focus is on

the interaction between Organizations, Workers, and Environment.
It is a synthesis of several theories such as, behavioral science, Mathematics,

statistics, operations / quantitative research and computing technologies.
Application of management knowledge is extended to non-business areas like

education, government, health care and others.
Theory Theorist
General System Theory Ludwig Von Bertalanffy (1937)
- each part has a role to perform so the whole can accomplish
its purpose
Contingency Theory Joan Woodward (1965)

- argued that technology and production system are critical
aspects of organizational design; advanced a contingency
approach to organizing

P. Lawrence / J.W. Lorsch (1967)

- suggested that successful organizations match their structure
to the nature of the environment
Daniel Katz / Robert Kahn (1966)
- present a unified, open systems approach extending
organizational theory beyond the boundaries of a single
organization.
Fred Edward Fiedler (1967)

-argued that leadership effectiveness is contingent upon two
interacting factors. Leadership style and situational
favourableness.
IV. TRUE OR FALSE: Write TRUE if you believe that the statement is correct and FALSE if
the statement is incorrect.
1. Management is on tactfully handling the machineries.
2. Management as process refers to discrete nature of groups of people.
3. Controlling exercises corrective measures after thorough monitoring and evaluation.
4. Positive interpersonal relationship from the manager and among employees is

significant in the organization.
5. Planning creates and develops strategies and analyzes business opportunity.
6. Classical theory perceives that maximum productivity of employees can be obtained

through motivation, structure and supporting employers.
7. The oldest theory is the Neo-Classical theory where it evolves in response to the shift of
handicraft to industrial production.

LESSON II
FUNCTIONS, ROLES, AND SKILLS OF A MANAGER
This explains the various functions of a manager which oftentimes seem to be unclear
and in particular it gives description about the roles and skills of a manager.
1. Identify the difference of function from a role of a manager; and
2. Examine the different skills a manager must possess.
Below are words that will help you understand as you got through the discussion:
Manager – is a person who fulfills the fundamental managerial functions such as planning,
organizing, staffing, directing and controlling.
Figurehead – is the head or chief of an organization or entity, a person with authority.
Liaison – is a person who helps organizations or groups to work together and provide
information to each other.
Entrepreneur – is a person who is innovative, generates new ideas, solves problems and a
risk-taker.

Resource allocator – is a person who allocates funds, personnel and other resources in the
organization who are in great need.
Let’s see how far you know by simply answering the questions below.
I. Direction: Read carefully and encircle the letter you choose from the given option.

II. Picture Analysis (Function of a Manager)
Guide questions:
1. What do you think is the job of the one in the
picture?
2. Enumerate the things that he does?
3. What does he need to possess to be efficient
in his job?

The Functions, Roles, and Skills of a Manager

A manager does not just sit in one corner and let his employees perform the entire task.
He does not just watch his employees fail but rather help them out. He puts on his many hats, at
times a consultant, negotiator, liaison officer, an analyst and even an entrepreneur. Manager is
described as a person who fulfills the fundamental managerial functions such as planning,
organizing, manning, directing and controlling (Business Encyclopedia, 1995).
Functions of managers are viewed depending on what criterion is used. The most often
referred criterion is based on the position of manager in the organization’s structure, where he
can greatly exercise his function.
In another criterion, a manager is viewed in terms of his job description. When this
criterion is taken into consideration, then we could mark managers as:
a.) functional managers – responsible for one kind of activity in a given business
organization (e.g. production, marketing, selling or finance).
b.) overall managers – supervising complicated unit like enterprise, branch
establishment or separate department and responsible for whole economic activity unit
(i.e. production, marketing, selling or finance)

According to Henry Mintzberg (Sheldrake, 1998) there are ten (10) roles that a manager
performs and they are grouped into three categories:
CATEGORY MANAGER’S ROLE

INTERPERSONAL Figurehead.
(In this category, the manager The manager has the social, ceremonial and legal
provides information and ideas to the responsibilities. The manager is expected to be a source
employees) of inspiration. People look up to the manager as a
person with authority.
Leader.
The manager provides leadership for the team, for the
department or perhaps for the entire organization; and
it’s where he/she manages the performance and
responsibilities of everyone in the group.
Liaison.
Managers must communicate with internal and external
contacts. They need to be able to network effectively on
behalf of the organization.
INFORMATIONAL Monitor.
(The managerial roles in this category The manager regularly seeks out information related to
involve processing information the organization and industry, looking for relevant
changes in the environment. He/she also monitors the
team, in terms of both their productivity, and their well-
being.
Disseminator.
This is where the manager communicates potentially
useful information to his/her colleagues and team.
Spokesperson.
Managers represent and speak for their organization. In
this role, they are responsible for transmitting
information about the organization and its goals to the
people outside it.

DECISIONAL Entrepreneur. Manager creates and control change

(The managerial roles in this category within the organization. This means solving problems,
involve using information) generating new ideas, and implementing them.
Disturbance-Handler. When an organization or team

hits an unexpected roadblock, it is the manager who
must take charge. They also need to help mediate
disputes within it.
Negotiator. They may be needed to take part in, and
direct, important negotiations within their team,
department, or organization.
Resource Allocator. A manager also needs to
determine where organizational resources are best
applied. This involves allocating funding, as well as
assigning staff and other organizational resources.
A manager ideally has to be always equipped with the following Skills:
Management & Leadership Skills. These skills refer to setting priorities, delegating, motivating
and developing the people under him/her; coach them to become top performers and
communicates objectives and goals.
Communication Skills. A skill across the point, it creates a compelling presentation to support
company goals and get buy-in for ideas, inspires others to achieve better results and
demonstrate emotional intelligence.
Collaboration Skills. Can value and celebrate differences, build rapport, form alliances and
negotiate effectively.
Critical Thinking Skills. Skill needed to approach problem solving logically, research options,
avoid biases and focuses on meaningful data to draw the right conclusions – even under
pressure.
Finance Skills. Skill in weighing financial or budgetary implications of his/her decisions –
including the ability to build a sound budget and formulate reasonable forecasts.
Project Management Skills. Skill to grasp the scope and objectives of projects, recognize the
roles and responsibilities of others, use Project Management tools to stay on track and become
an effective member of a cross-functional team.
III. Interview
1. Conduct an interview (either face to face or online) of a certain manager in your area.
2. Ask the following:
a. Years of service in the company or organization.
b. How does he/she manage the company?

LESSON III
ENVIRONMENTAL FORCES THAT AFFECT LOCAL AND
INTERNATIONAL BUSINESS
This module explains the need to understand the internal and external factors that affect
the operation of a local and international business. This enables the learner to analyze various
environmental forces through the use of environmental scanning the PEST Analysis and SWOT
Analysis.
1. differentiate internal and external environment;
2. perform and appreciate the importance of SWOT in a business success; and
3. identify the different factors that may harm or help a business.
The following words will help you understand the lesson:
Environmental Forces – these are factors that affect the operation of the business be it
internal factors (within the business) or external factors (outside forces).
International Business – business activities are carried outside the country.
Domestic/Local Business – a business operating in their own country and are affected by the
economic, legal and cultural factors specific to that domestic environment, or nation.
Environmental Scanning – a method used to analyze strategic plan of action and helps
organizations to gain knowledge of possible influences from the outside environment that affect
the business.
Internal Environment – are factors that occur within the premises of an organization and direct
affect the different functional areas in the organization.
External Environment – are those that exist outside the firm and often regarded as
uncontrollable factors. SWOT Analysis – the oldest popular method used for environmental
scanning.
THE INTERNAL AND EXTERNAL ENVIRONMENT OF BUSINESS

When a business activity is performed in an international level, this can be termed as
international business. The functions, techniques and processes are just the same with the
domestic or local business. The only difference is that in International business, activities are
carried outside the country. While the term environment of a business firm, pertains to external
factors and forces that surround the firm and at the same time influence the firm in decision
making and operations.

The international business environment includes different aspects like: social, political,
economic, regulatory, tax, cultural, legal and technology. They do not have control over the
external environment, their success depends upon how well they adapt to it.
A domestic environment in business is affected by economic, legal and cultural factors

specific to its domestic environment, or nation. A business can’t control these factors, but it can
work to respond to these factors appropriately. Despite its complications, domestics business is
far simpler than international business.
The different environmental factors that affect the business can be broadly categorized
as internal and external factors. Internal factors are those that occur within the premises of an
organization and directly affect the different operations of the business.
What are these Environmental Factors?

The internal factors are:
• Value System. It denotes the culture and norms of the business. This is the regulatory
framework of a business which every employee must abide and act within the context.
• Missions and Objectives. Different priorities, policies, and philosophies of a business

are guided by the mission and vision of a business.
• Financial Factors. These are the factors like financial policies, financial position and
capital structure which also affect a business performance and its strategies.
• Internal Relationship. Factors like the amount of support the top management enjoys
from its shareholders, employees and the board of directors also affects the smooth
functioning of a business.
External Factors include those factors which exist outside the firm and often regarded as
uncontrollable. These can be characterized as micro and macro environment.

Micro environment includes the following factors:

• Suppliers are those people who are responsible for supplying necessary inputs to the
organization and ensure the smooth flow of production.
• Competitors are the close challengers of the business. It also refers to the numbers of
similar competitive product brand, size, and market capitalizations. And in order to
survive the competition, one has to keep a close look in the market and formulate
policies and strategies to produce innovative output.
• Marketing Intermediaries aid the company in promoting, selling and distributing goods
and services to its consumers. Therefore, marketing intermediaries are vital link between
business and the consumers.
Macro environment includes the following factors:

• Economic Factors include economic conditions such as growth rate, inflation,
restrictive trade practices and others which have considerable impact on the business.
• Social Factors include the society together with its preferences, priorities, pattern of
beliefs, purchasing power, educational background and others.
• Demographic Factors refer to the study of people, such as their age, sex, marital
status, occupation, family size etc. Since demography is uncontrollable because you
cannot control the sex, age, marital status in the environment, this enabling you to
predict future trends and consumptions of your product.
• Political Factors include government policies, laws and legalities. This, in a way, affects
the business operation. For instance, the government restricted the importation of a
particular substance and as a result this action will delay the production of your product.
• Technological Factors. Technology sets challenges to dealer. It affects the kind of

product that a dealer is offering. You cannot stop the advancement of technology, but
you can learn to adapt to its changes and maximize it for the advancement of the
organization.
ORGANIZATIONAL ENVIRONMENTAL SCANNING

Environmental scanning helps organizations to gain knowledge of possible
influences from outside environments and how it can strategically affect the business. It is also a
method of analyzing relevant gathered information and use them to determine strategic and
planned action on the business environment.

It also assesses the internal strength and weaknesses of an organization in relation to

the external opportunities and threats it faces. One popular method of environmental scanning
is SWOT analysis. Each letter stands for Strength, Weaknesses, Opportunity and Threats. The
strength and weaknesses are factors within the company, and the opportunities and threats
come from the outside of the company.
I. Application Exercises

Think of a simple business you would like to venture and have the following:
a. Name of your business
b. Location of the business
c. Make a simple SWOT analysis

LESSON IV
FORMS AND ECONOMIC ROLES OF BUSINESS ORGANIZATIONS
This module explains and discusses the various forms of business organization and its
economic roles in the business organization including the advantages and weaknesses to
determine the best practices in choosing a business.
1. identify the different forms of business;
2. identify the best practice in choosing a business; and
3. recognize the weak and strong point of the different form of business.
Here are words that can help you understand thoroughly the lesson:
Business – is an organization or economic system where goods and services are exchanged
for one another or for money.
Hybrid Business – refers to companies that may be classified with more than one type of
business.
Merchandising Business – refers to businesses which buy product at wholesale price and sell
the same at retail price.
Manufacturing Business – refers to businesses which buy productions with the intention of
using them as materials in making a new product.
Sole Proprietor – a business is owned and managed by only one person.
Partnership – a business owned by two or more persons who contribute resources into the
entity.
Corporation – is a business organization that has a separate legal personality from its owners.
Cooperative – is a business organization owned and managed by a group of individuals for
their mutual benefits.

I. Identification
Direction: Identify the following pictures below whether it is a service, merchandising,
manufacturing or a hybrid type of business.

There are Different Types of Business

Business is an entity or enterprise that provides goods and services in exchange for
some form of money or another. It can be a privately owned, non-profit organization or state-
owned business. These entities consider the three basic problems in economy in establishing
their business:
a.) What to produce?
b.) How to produce?
c.) For whom to produce?
There are four major types of businesses:

• Service Business a type of business which provides intangible products. Service type
firms offer professional skills, expertise, advice, and other similar products.
Examples of service businesses are schools, repair shops, hair salons, banks,
accounting firms and law firms.
• Merchandising Business is a business which buys products at wholesale price and

sells the same at retail price. They are known as “buy and sell” businesses. They make
profit by selling the products at prices higher than their purchase costs.
Examples are grocery stores, convenient stores, distributors and other resellers.
• Manufacturing Business unlike a merchandising business, buys products with the

intention of using them as materials in making a new product. A manufacturing business
combines raw materials, labor, and factory overhead in its production process. The
manufactured goods will then be sold to customers.
Examples are baked good, shoe manufacturing, grape wine production, cosmetic
manufacturing, processed food, canned goods, and others.
• Hybrid Business is a company that may be classified in more than one type business.
A restaurant, for example combines ingredients in making a fine meal (manufacturing),
sells a cold bottle of wine (merchandising), and fills customer orders (service).

How do they differ from the other?

SOLE PROPRIETORSHIP
Advantages Disadvantages
• Easiest and least expensive form of • Sole proprietors have unlimited liability
ownership and are legally responsible for all debts
against the business. Their business and
• Sole proprietors are in complete control, personal assets are at risk.
and within the parameter of the law, may
make decisions as they see fit. • May be at a disadvantage in raising funds
and are often limited to using funds from
• Profit from the business flow-through personal savings or consumer loans
directly
• to the owner’s personal tax return. • May have a hard time attracting high-
caliber employees, or those that are
• The business is easy to dissolve, if motivated by the opportunity to own a part
desired. of the business.
• Some employees’ benefits such as

owner’s medical insurance premiums are
not directly deductible from business
income.
Examples: sari-sari store, flower shop, vulcanizing shop, car wash, etc.
PARTNERSHIP
• Partnerships are relatively easy to • Partners are jointly and individually liable
establish; however, time should be for the actions of other partners.
invested in developing the partnership.
• Profits must be shared with others.
• With more than one owner, the ability to
raise funds may be increased. • Since decisions are shared,
disagreement can occur.
• The profits from the business flow
directly through to the partners’ personal • Some employee benefits are not
tax return. deductible from the business income on
tax returns
• Prospective employees may be attracted
to the business if given the incentive to • The partnership may have a limited life; it
become a partner. may end upon the withdrawal o death of
a partner.
• The business usually will benefit from
partners who have complementary skills.
Examples: Law firms, medical clinics, and Travel and Tours

Types of Partnerships that you should consider:

1. General Partnership. Partners divide responsibility for management and liability as well as
the shares of profit or loss according to their internal agreement. Equal shares are assumed
unless there is a written agreement that states differently.
2. Limited Partnership and Partnership with limited liability. “Limited” means that most of
the partners have limited liability as well as limited input regarding management decision,
which generally encourages investors for short term projects, or for investing in capital
assets.
3. Joint Venture is like a general partnership, but is clearly for a limited period of time or a
single project. If the partners in as joint venture repeat the activity, they will be recognized
as an ongoing partnership and will have to file as such, and distribute accumulated
partnership assets upon dissolution of the entity.
CORPORATION
• Shareholders have limited liability for • The process of incorporation requires
the corporation’s debts or judgements more time and money that other forms
against the corporation. of organization.
• Generally, shareholders can only be • Corporations are monitored by federal,

held accountable for their investment in state and some local agencies, and as
stock of the company. (Note however, a result may have more paperwork to
that officers can be held personally comply with regulations.
liable for their actions, such as the
failure to withhold and pay employment • Corporations may result in higher
taxes. overall taxes. Dividends paid to
shareholders are not deductible from
• Corporations can raise additional funds business income; thus this income can
through the sale of stock. be taxed twice.
• A corporation may deduct the cost of

benefits it provides to officers and
employees.
• Can elect Corporation status if certain

requirements are met. This election
enables company to taxed similar to a
partnership.
Examples: Smart Communications, Inc, SM Development Corporation, Medical Doctors, Inc.
(Makati Medical Center), Avida Land Corporation

COOPERATIVE
• Less Taxation • Less Operational Control
• Funding opportunities • Fixed Pricing
• Further marketing reach • Cooperative may suffer from slow

cash flow since a member’s
• Reduce costs and improve product and incentive to contribute depends on
services how much they use the
cooperative’s services and products.
• Perpetual existence, members can join or
leave the business without causing • Lack of membership and
dissolution. participation may cause risk of
losing members.
• Democratic organization, monetary
investment does not affect the weight of
each vote, so no member owner can
dominate the decision-making process.
Example: water and electricity (utility) cooperatives, Cooperative banking, Credit Unions, and
Housing Cooperatives
II. Application Exercises

Conduct an interview (either face to face or online) to the owner of a store near you.
Know the type and form of the business. Ask why he/she chooses such business? For
how long now he/she manages and operates his/her business?

LESSON V
PHASES OF ECONOMIC DEVELOPMENT
Today’s module explains the different factors that led to the economic growth of our
country like remittances from the Overseas Filipino Workers, government spending and others.
1. identify the different phases of economic development; and
2. analyze the stages and its implication in the economy.
Be familiar with the following term, it will help you a lot:

Economic Development – is an increase in living conditions, improvement of the citizens’ self-
esteem needs and presence of a free and just society.
Structural Formation – refers to a change in the composition of the Gross Domestic Product.
Migration of people – are administrative decisions that are directly related to all issues and
activity within a nation’s borders.
Morbidity – is the incidence of disease, rate of illness.
Read this…
Phases of Economic Development
For the past three decades growth rate in the
economy has been the fastest. The real gross
domestic product has increased to 70%
unfortunately, the growth slowed down in 2008 due
to the financial crisis all over the world. There are
different factors which led to the growth of the
economy like: government spending, remittances
coming from the Overseas Filipino Workers.
Philippine economic progress can be
attributed too, to the development in agricultural
products, which includes corn, sugarcane,
pineapples, coconuts, bananas, rice cassavas,
mangoes and pork, eggs, beef and fish. Major
industries that contribute to economic development of Philippines are wood products,
electronics assembly, food processing, footwear, garments, pharmaceuticals, chemicals,
petroleum refining and fishing.

WHAT IS ECONOMIC DEVELOPMENT?
Economic development refers to the sustained, concerted actions of communities and

policymakers that improves the standard of living and economic health of a specific locality.
Michael Todaro define economic development as an increase in living conditions,
improvement of the citizens’ self-esteem needs and presence of a free and just society. Todaro
suggested that the most accurate method of measuring economic development is Human
Development Index which includes literacy rates and life expectancy which in turn has impact
on productivity and economic development growth.
Economic development is also associated with quantitative and qualitative changes in
the economy. Progress in human capital, increase in literacy rate, establishment of important
establishment infrastructures, improvement in health and safety and other areas that aims in
increasing the general welfare of the citizens are the indicator of development economically.
Participation from the citizens is the most important ingredient in nation’s economic
development. The term economic development is sometimes intertwine with economic growth
but there is a difference between the two. Economic growth is the general increase in the
country’s products and services output while economic development is a government policy to
increase the economy, social welfare and stability of political environment.
Also, there is always an association between economic growth and human development.
This is because people consider economic growth as a requirement for economic development.
For example, in the country, the main source of income is OFW’s. These OFW’s remittances will
help bring business opportunities to the country, thus, the effects will be felt by all areas of the
economy. Business will prosper which will in turn be used to pay for their generation education,
improve the access to health care for that family and will increase the general living standard of
the family. If this effect is replicated in each household, overall economic development will be
achieved.
Economic development leads to improvements in many sectors of a nation. There are
varieties of indicators that economist use to measure the level of economic development in the
country.
Economic development has to be supported by the whole nation from economists,

politicians, and also civilians. Thus, it can be concluded that economic development leads to the
creation of more opportunities in the sectors of education, health sector, research, human
development and environmental conservation. It equally implies an increase in the per capita
income of every citizen.

WHAT ARE THE STAGES OF ECONOMIC DEVELOPMENT?

According to Gunter, Economic growth typically refers to an increase in gross domestic product
(GDP), while economic development typically refers to a structural transformation. Below are
the different stages of Economic Development.
Stages of Economic Development according to Gunter:

1. The Structural Transformation refers to a change in the composition of GDP. Initially,
economic activities and jobs are based in the agricultural sector. With development, the
share of agriculture in GDP decreases due to the increase and growth of the service
sector which slowly overtake the share of industry, while the share of agriculture
continues to decrease. In other words, at the final stage of development, we typically
have an economy in which people earn their livelihood predominantly from the service
sector and still important but diminished industry sector.
2. The Demographic Transition is determined by changes in the fertility rates (example

the number of children per women) and changes in life expectancy. Initially, fertility rates
are high, but due to relatively high death rates.
3. The main factors leading to the process of urbanization is the migration of people from
rural areas seeking jobs in the emerging urban centers, the transformation of originally
semi-urban suburbs into fully urban centers, and differences in population dynamics
between rural and urban areas.
I. Answer the question briefly and concisely.

What do you think is the importance of understanding the phases or stages of economic
development?

LESSON VI
PLANNING: DIFFERENT TYPES OF PLANS, TECHNIQUES
AND TOOLS
Today you are about to understand the different types of planning as well as the
planning techniques and tools which enable us to know what we need to do and how are we
going to do it through planning.
1. compare and contrast the different types of plans;
2. identify the different tools and techniques of planning in an organization; and
3. identify application of the tools and techniques in an organization.
For better understanding, the following words will help you:

Planning – is somehow the blueprint or map to reach certain destination of our wants.
Corporate Planning – it evolves from the goals and strategies created by organization’s top
management and they are usually long term in nature.
Divisional Planning – is concerned in the process of determining the scope of division’s action
that will satisfy the consumer’s needs.
Functional/Unit Planning – it is the lowest level of planning which concerns the individual
departments of its set of feasible action plans to implement the division plan.
Scenarios – refer to the written description of a set of events suitable to occur in the future that
bears on organizational effectiveness.
Nominal Group Technique – is a technique usually applied to a group of knowledgeable
people with different backgrounds and experiences whose pooled skills and judgment are
needed to identify desirable goals and strategies.
Simulation Planning Models – is a computer simulation modeling which is used to assist in the
development of long and medium and short range plans.
I. My greatest dream…
Direction: Write down your greatest dreams in life. How are you going to reach your
goal?

Know this…
In life, we are confronted with so many things that we need to plan out in order to
accomplish them as desired. Therefore, planning is somehow our blueprint or map to reach
certain destination of our wants.
According to David Halt, planning is the process of defining an organization’s
Objectives and how it will achieve them like “what is to be done and when it is to be done”.
In an organization, planning is not solely done by the top management but by other levels in the
organization as well to be prepared of what might arise in the future.
Planning can be done in a formal or informal way. Formal Planning uses systematic
criteria and rigorous investigation to establish objectives, decide on activities and formally
document organizational expectation while Informal Planning uses intuitive ideas in deciding
and on the activities needed to achieve them without rigorous and systematic investigation.
Some managers use formal while the others use informal planning, but still it is safer and wiser
to use formal plan to avoid, or at least, lessen the errors that the organization will face.
Types of Plans according to its Dimension

Different Types of Plan according to its Dimension, read the discussion below:
Corporate Planning or Strategic planning, it evolves from the goals and strategies created by
organization’s top management and they are usually long term in nature. It covers the entire
organizational activities. Thus, it sets the foundation of the organization in terms of all plans,
policies and strategies.
Divisional or Business Planning also referred to as Tactical planning concerns the process of
determining the divisional actions that will satisfy the consumer’s need, decide on specific sub-
goal within its defined area or responsibility and establish policies and budget to attain these
goals.
Functional or Unit Planning or commonly called as Operational planning is the lowest level of
planning. At this level, department managers or first-line supervisors develop a set of feasible
action plan and focus on planning for a day to day activity to implement the division plans. This
uses short-range actions and adheres to planned schedules and budgets.
Time Frame or Length of the planning horizon can be long range, medium range or short
range planning.
Long range deals with decisions for broad technological and competitive aspects of the
organization which might extend up to fifteen years.
Medium or intermediate range deals with plans that are more detailed compare to long range
since the time span shorter and concerns the specific and basic functions of the organization.
This is between two to five years.
Short Range is an extension of long range planning and usually extends to about one year and
includes more specific plans with respect to plant location, work methods, inventory and controls
employee training and the like.
Elements. There are different planning elements that are involved in the planning
process which depends upon the activity involved.
Strategies involve choices of particular actions by the organization to achieve stated goals.
Policies limit the behavior or organizational members towards achieving the goals. They are
guidelines of the organization that are useful in decision making.
Procedures are narrower in terms of application in the organization. It only tends to involve
departmental activities such as hiring procedures and payment procedures.
Rules are the thinnest element; these are usually orders with what is appropriate or not in terms
of behavior of members in organizations. These are strict advices for employees with specific
functions like rules on wearing uniform in the workplace, rules on deadline, etc

Repetitiveness plans can be characterized by the degree of sameness with which they
are used by the organization.
Standing plans are those developed by the organization to direct activities that will occur
frequently overtime.
Single-use plans deal with ill-structured or non-repetitive problems to fit a specific situation and
may not be used any more when goal has been achieved.
Focus refers to the concentration of a given plan in an organization. It clarifies the function of a
particular area where there is more attention needed.
Now try this!...

Think of a business that you desire to own or to manage. Be able to supply the needed data
below. Have fun!
II. My Business
Proposed Business/Name of the Business:

______________________________________________________________
______________________________________________________________
Nature of the Business: (Description/Introduction of your business)

______________________________________________________________
______________________________________________________________
Tagline: ________________________________________________________
Social benefits:
_______________________________________________________________

Planning Tools and Techniques

Due to fast changing environment, managers need to develop and adapt tools and
techniques that can be used for more effective and accurate plan in the organization. Scenarios
refer to written description of a set of events suitable to occur in the future that bears on
organizational effectiveness. It is a story describing “what if” situation.
Scenarios are intended to raise awareness in managers and to prevent surprises.
Alternate scenarios serve to broaden the outlook of managers to the external forces that shape
the future of the organization and sensitize them their vulnerabilities and the opportunities that
lie within other possible futures.
Nominal Group Technique it is a technique that is particularly useful for planning task
or elements that require a high degree of innovation, idea generation, and creativity. The
technique is usually applied to a group of knowledgeable people with different backgrounds and
experiences whose pooled skills and judgment are needed to identify desirable goals and
strategies.
Simulation Planning Models refer to computer simulation modeling by which planners
construct sophisticated models of an organization showing desired, realitybased characteristics.
With the aid of computer, managers can test certain hypothesis on a wide range of decision at a
much lower cost and with greater speed. Computer simulation in planning is a quantitative
modeling techniques developed to test alternatives courses of action based on historical facts
and managerial assumptions. With the continuing knowledge and sophistication of computer
usage, simulation models in planning activities will become one of the dominant techniques in
the future.

LESSON VII
NATURE AND TYPES OF ORGANIZATION STRUCTURES
Today’s module discusses and describes the different types of structures that a
company can use depending on the size of the organization. This further explains the
advantages and disadvantages of each organizational structure.
1. Identify and discuss the different types of organization structures; and
2. Classify the advantages and disadvantages of each type of organization
structures.
For better understanding, the following words will help:
Organization – is a group of people who work together for a common good. Organization
Structure – is a framework where management authority is defined, resources are properly
allocated, and channel of communication is observed.
Formal Organization – is an organization where activities are rationally defined, division of
work is unambiguous, and managerial authority is explicitly vested in individuals according to
their skills and responsibilities.
Informal Organization – refers to shadow organizations that evolve through the personal
interactions, sentiments, and social activities of individuals.
Line Organization – is the simplest and oldest form of organization structure; the authority is
delegated directly from top to bottom.
Line and Staff Organization – the line authority carries the right to require the execution of
orders while the line staff executive has the authority to suggest on how such orders could be
implemented.
Functional Organization – fully applies the principles of division of labor and specialization
where individuals are expected to be expert in his own field.

Read and understand the discussion below and you will learn the different organization
structures used by organizations.
An organization need to be organized to achieve its goal. Functions and authority

must be clear and well defined and resources must be properly allocated. An organization
seems to be ineffective when it is ill-structured or not organized, hence, both human and
material resources should be properly allocated.
A structure of organization varies depending on the size of the firm. The type of
structure adapted by the organization, however, influences how people act and perform within
the organization. Below are the commonly used types of organizational structures.
Line Organization
The line organization is the simplest and oldest form of organization structure where
authority is delegated directly from top to bottom. Both staff and line functions are performed by
line executive. Each exercises line authority over his own subordinates. It is for these reasons
that a small size business uses this structure in their organization. Below is the structure of a
line organization.

Line-Staff Organization
The line staff is the pattern of most large and complex organizations. The line authority
carries the right to require the execution of orders while the staff executive has the authority to
suggest on how such orders could be implemented. Below is the pattern of a line-staff
organization structure.

Functional Organization
Functional organization fully applied the principles of division and specialization advocated
by Frederick Taylor. For a functional organization to be effective, well qualified individuals
should be appointed to all positions. Each individual should know exactly what is expected of
him and what he expects others to do. This is done by subdividing them into departments or
division for the purpose of allowing the people work effectively in groups as to their work alone.
Below is an example of a functional organization.

Organization may come in all sizes and types. Each structure is unique to some extent.
However, the use of the different types of organizational structures also considers the nature of
an organization which is the formal and Informal organization.
Formal or formalized organization is also labeled as bureaucracies. A bureaucracy is
a form of organization in which activities are rationally defined, division of work is unambiguous,
and managerial authority is explicitly vested in individuals according to skills and responsibilities
prescribed for their organizations and it implies a less rigorous division of labor in a less formal
environment.
A chain of command is the unit broken line authority between the lowest and highest
positions in an organization. It is the description of rank-ordered authority, and in a bureaucracy,
there is a presumption that a subordinate will seek direction, communicate decisions and take
orders directly from an immediate superior. While span of control is defined by the number of
subordinate one manager supervises.
Informal Organization on the other hand, refer to shadow organizations that evolve
through personal interactions, sentiments, and social activities of individuals. Informal
organizational structures are not written down; they do not have job titles or formal description of
authority. Mutual support by the members may also ensure communications, enhance
socialization, and provide a sense of group identification. Informal leader gain status, although
without rank, which can help satisfy employee’s needs for leadership.
I. My Organizational Structure
Direction: Outline and draw below a sample of an organizational structure that you saw or
observed in an office you have already visited. Include name and position in each box of
the outline structure.
II. Identification
Direction: Identify the correct word/s that corresponds to the statement.
1. (Organization, Organization structure) is a framework where management authority is
defined, resources are proper allocated, and channel of communication is observed.
2. (Informal organization, Formal organization) is formed through interaction, sentiments,
and social activies of the people but do not have a structure.
3. (Functional organization, Line-staff organization) is a type of structure that applies the
principle of division of labor and specialization.
4.) (Line organization, Line-staff organization) this structure is pattern by large and complex
companies but somehow creates conflicts between line and staff executives.
5.) (Line organization, Functional organization) this is the simplest form of structure and it
facilitate discipline and control of individuals for its clarity and chain of command.

LESSON VIII
STAFFING
1. Define Staffing
2. Identify steps in Recrruitment and selection process
3. Explain staffing procedure
At the end of this lesson, the students will be able to
Definition of Staffing
The most important resource of any organization is its human resource. This is because
the human resources uses other resources and thereby produces goods and services valuable
to stakeholders. Without competent people at all levels, organizations will either pursue
inappropriate goals or find it difficult to achieve the appropriate goals that they have already set.
The staffing function can be viewed as a series of activities that managers should perform in
order to provide the organization with the right people in the right place. It involves all activities
from human resource planning to human resources separation, each activity with greater
interdependence.
The Staffing Process

The staffing process involves the following basic activities. See the figure below and a
discussion of each will follow:

Human Resource Planning (HRP)

Human resource planning is the strategy for acquiring, using, improving, and preserving
the firm‘s human resources. It is the process of determining the human resource requirements
of the organizations at different levels for achieving its goals.
Recruitment
Recruitment is defined as the activities of developing a pool of qualified candidates from
which the organization may choose the most appropriate employees. It is the process of
attracting qualified job seekers to fill vacant positions in an organization.
Selection
Selection may be defined as the process of evaluating and choosing the best and
qualified candidates out of the pool of applicants developed in the recruitment process to fill job
opening based on their abilities, skills and characteristics.
Job analysis is the process of gathering, analyzing, and recording accurate and
complete information about each job in a firm through a systematic examination
of job content.
Job description shows a series of statements about the duties and

responsibilities of an employee. It specify about the workers duties, how they are
performed, and the conditions under which they are performed. Job specification
indicates the knowledge, skills and abilities as well as physical characteristics,
experience and other desirable qualifications necessary for successful job
performance.

Training and Development

Training and development represent a planned effort by an organization to facilitate
employees learning about the job-related behaviors. Some authors try to distinguish between
training and development. Training refers to teaching lower-level or technical employees how to
do their present jobs whereas development refers to teaching managers and professionals the
skills needed for both present and the future jobs.
Performance Appraisal
Performance appraisal is the process of determining the extent to which an employee is
performing a job effectively. It is the process of observing and evaluating an employee's
performance, recording the assessment, and providing feedback to the employee. A valid
performance appraisal system serves a number of purposes: It provides employees with
feedback so that they will know how well they are performing.
Human resource movement
The human movement function involves transfer, promotion, demotion and separation.
Transfer refers to lateral movement of employees from one position to another at similar levels
(pay and responsibility) within the organization. It is typically used to fill temporary vacancies, to
staff a new operation by a competent and experienced person (productive transfers'), to replace
a person, or to rectify wrong placement.
Promotion: this is moving an employee to a higher-level position that have more
prestige, higher status, higher pay and greater responsibility based on his or her
good performance.
Demotion: is shifting a person to a lower-level position in the hierarchy (less pay
and less responsibility) due to inefficiency or in-competency to meet the assigned
task. Some managers use it as a punishment tool while most refuse it and use
financial penalty and suspension.
Separation (Termination) is the termination of the relationship between the
workers and the organization due to various reasons. Some will retire, others will
depart voluntarily from their jobs (resignation), and still others will be forced out
through mergers and cutbacks (layoffs).
I. Explain briefly and concisely.

If you will be the Human Resource Officer in a certain company what do you think are the
characteristics of the applicants that you want to hire? Explain your thoughts.

LESSON IX
ORGANIZING
1. To able to know organizing, its principle and concepts.
2. To know different forms of organization structures.
Definition of Organizing
Organizing is the process of arranging and allocating work, authority and resources
among an organization‘s members so that they can achieve the organization‘s goals.
Organizing enable to bring together and coordinate human and physical resources to
accomplish the objectives established in the planning process. It involves developing
organizational structure to coordinate the efforts (of different people) and authority relationships.
An organization structure is a formal framework that shows a set of tasks assigned to
individuals and departments, reporting relationships including lines of authority, decision-
responsibility, number of hierarchical levels and span of management or span of control, and
the design of systems to effectively coordinate employees across departments. It is simply a
diagram or chart of all the positions in an organization and their formal relationship to one
another.
An organization chart shows:
 The hierarchical structure that is typical of most organizations;

 The number of management layers;
 Degrees of authority, status, and compensation (indicated by a position‘s location in
relation to other positions);
 How an organization‘s activities are departmentalized;
Basic concepts of Organizing
Organizing involves arranging human and physical resources to help attain

organizational objectives. Organizing is the development of jobs and the arrangement of them in
to a structure that will assure the duties are accomplished in a coordinated way.
Work Specialization. It is also called division of labour. It may be defined as dividing large
tasks in to smaller packages of work to be distributed among several people. Division of labour
is the most fundamental principle of organizing. It enables each employee performs the same
task over and over again.

Span of Management
Span of Control. The concept span of control refers to the optimum number of subordinated an
executive can effectively supervise. It is the number of immediate subordinates who report
directly to a manager. It determines how closely a supervisor can monitor subordinates and it is
directly related to the horizontal dimension of managers control. The general rule is, as one
goes up in the organization hierarchy, he/she should have to deal with smaller number of
subordinates. This is because top executives should deal with a great variety of complex issues
and ill-structured problems.
Wide Span of Management. A flat organization structure is characterized by an overall broad

span of control, horizontal dispersion, and fewer hierarchical levels. It is resulted from
supervising relatively large number of subordinates.
Narrow Span of Management. This is when supervisors need to involve closely with
subordinates. It is a tall organization structure characterized by narrow span of management
and a relatively large number of hierarchical levels. The manager manages small number of
immediate subordinates. The following organization chart depicts this type of organization
structure.
I. Answer briefly and concisely.

What is the importance of having a right organizational design in a company?

LESSON X
DIRECTING
1. determine the importance of direction with its definition, principles and
characteristics; and
2. identify the concept of motivation with its nature, importance, theories, factors and
techniques.
At the end of this lesson, the students will be
Directing is said to be a process in which the managers instruct, guide and oversee the
performance of the workers to achieve predetermined goals. Directing initiates action and from
here the actual work starts. Direction is a managerial function performed by the top level officers
of management.
According to Koontz and O’Donnel, “Direction is the interpersonal aspect of managing by
which subordinates are led to understand and contribute effectively to the attainment of
enterprise objective.”
There are three techniques of direction as follows:
• Consultative direction
• Free-rein direction
• Autocratic direction
Principles of Direction
The following principles of direction are useful to managers:
Harmony of objectives: Direction should be such that the individuals can integrate their
objectives with organizational objectives.
Maximum individual contribution: Contribution of every member of an organisation
matters. So management should implement such a technique of direction which enables
the maximum contribution by members.
Unit of direction or command: An employee should receive instruction through proper
channel which should be well defined otherwise it will lead to confusion.
Efficiency: Subordinates should participate in decision-making and this will increase
their sense of commitment and will ensure the implementation. It will increase the
efficiency.
Direct supervision: Managers should have direct relationship with their subordinates.
Face to face communication and personal touch with subordinates will ensure
successful direction.
Feedback information: Direction does not end with issuing orders, it is also necessary
to take the suggestions of the employees as well as for the development of the
organization.
Effective communication: The superior must ensure that plans, policies and
responsibilities are fully understood by the subordinates in the right direction.
Efficient control: The management should monitor the behaviour and performance of
subordinates to exercise efficient control over the employees. Efficient control ensures
effective direction.
Follow through: Direction is a continuous process. Mere issuing order or an instruction
is not an end itself. Direction is necessary so, the management should watch whether
the subordinates follow the orders and whether they face difficulties in carrying out the
orders or instructions.
I. Answer briefly and concisely.

In the given principles of direction, choose three (3) principles and give an example
scenario or situation in every principle.

LESSON XI
CONTROLLING
1. Explain the meaning of controlling; and state the importance of controlling;
2. Describe the relationship between planning and controlling
Definition of Controlling
Controlling is one of the important functions of a manager. In order to seek planned results from
the subordinates, a manager needs to exercise effective control over the activities of the subordinates. In
other words, controlling means ensuring that activities in an organisation are performed as per the plans.
Controlling also ensures that an organization’s resources are being used effectively and
efficiently for the achievement of predetermined goals. Controlling is, thus, a goal-oriented function.
Controlling should not be misunderstood as the last function of management. It is a function that
brings back the management cycle back to the planning function. The controlling function finds out how
far actual performance deviates from standards, analyses the causes of such deviations and attempts to
take corrective actions based on the same. This process helps in formulation of future plans in the light of
the problems that were identified and, thus, helps in better planning in the future periods. Thus, controlling
only completes one cycle of management process and improves planning in the next cycle.
Features of Controlling
The following are some basic features of the controlling process:
i) Forward-looking
Controlling is a forward-looking process because all of its efforts dictate future courses of action.
Managers often use experiences from the past to make corrections for the future.
ii) Exists at all levels
The process of controlling is all-pervasive. In other words, managers at all levels of management
hierarchies have to use controlling. The nature of controlling measures that managers use might
differ but they all have to use them.
For example, top-level managers use controlling for making policies and setting organizational
goals. On the other hand, middle and lower level managers use controlling for effectively carrying
out the organization’s activities.
iii) Continuous activity
Controlling is not a one-off activity that managers have to perform once in a while. It is generally a
continuous process that goes on permanently in different ways. Managers have to constantly
compare their actual results with their targets and make changes accordingly.
iv) Positive purpose

The objective of control is to create positive impacts at both organizational and individual levels. At
the organizational level, it aims to fulfill the organization’s goals. At an individual level, control
strives to increase productivity and make individuals benefit as well. Hence, control has a largely
positive purpose in every way.
RELATIOSHIP BETWEEN PLANNING AND CONTROLLING
The relationship between planning and controlling can be understood by the fact that both
are related to each other in the sense that one is the prerequisite for the other. On one hand,
planning involves thinking and deciding about what is to be done and hoe it is to be done.
On the other hand, controlling involves assessing and evaluating the work as against the
set standards and taking the required corrective measures, each of the functions forms a base for
the other. Planning forms a prerequisite for controlling in the sense that it provides various
objectives and policies against which the actual performance would be evaluated.
Controlling without planning would be meaningless. In other words, if there are no
standards and objectives, there would be nothing to control. That is, if the managers do not know
what the final objective is, they do not have any standards against which they can judge the
present performances and deficiencies. Similarly, planning without controlling holds no meaning.
I. Answer the following questions comprehensively.

Discuss what is controlling and explain its importance of this concept in an organization.

REFERENCES
“Chapter 1 Introduction to Principles of Management.” Introduction to Principles of Management,

saylordotorg.github.io/text_principles-of-management-v1.1/s05-introduction-to-principles-of-.html.
“Features and Importance of Controlling: Concepts and Questions.” Toppr, 10 Dec. 2019,
www.toppr.com/guides/business-management-and-entrepreneurship/controlling/features-and-
importance-of-controlling/.
Lamond, David. “A Matter of Style: Reconciling Henri and Henry.” Management Decision, Emerald Group
Publishing Limited, 1 Feb. 2004
www.emerald.com/insight/content/doi/10.1108/00251740410513845/full/html.
Ramasay T. 2010. Principles of Management. Himalaya Publishing House Pvt. Ltd.P269–298
Samar, Gregorio L. et al. (2016) Introduction to Organization and Management. Hunt Publishing Center, 1-
83.
Department of Education (2020). Senior High School, Accountancy Business and Management Module 1-
7.

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GREEN VALLEY COLLEGE FOUNDATION, INC.

Document Code: FM-DEA-031

Consider the following terms below…

Organization and Management (Bridging Program)

I. Direction: Choose your answer from the options given below;

II. Management Personal Introspection

Organization and Management (Bridging Program)

2. Management as a process, it refers to organizational process that includes strategic

Organization and Management (Bridging Program)

Good management is really essential in a company as this enables employees or

To do this, industries and companies apply management theories.

The following are the different Theories of Management:

Organization and Management (Bridging Program)

A. Classical Theories of Management

Classical management theories come in the likes of:

Frederick Taylor (1911) Principles of Scientific Management

Frederick Taylor (1912-1924) Time and Motion Studies

Henry Gantt (1910-1915) Project Scheduling or the Gantt Chart

Henry Fayol (1916)

B. The Neo-Classical Theories of Management

Organization and Management (Bridging Program)

Hawthrone Studies The Hawthrone effect

Elton Mayo / Fritz Human Relation Theory of Management

Chester Barbard The Function of the Executive

Abraham Maslow Hierarchy of Needs Theory

Douglas McGregor The Theory X and Theory Y

C. The Modern Theories of Management

Dealing with complexity is the core of modern management theory. Focus is on

It is a synthesis of several theories such as, behavioral science, Mathematics,

Application of management knowledge is extended to non-business areas like

Contingency Theory Joan Woodward (1965)

Organization and Management (Bridging Program)

P. Lawrence / J.W. Lorsch (1967)

Fred Edward Fiedler (1967)

1. Management is on tactfully handling the machineries.

2. Management as process refers to discrete nature of groups of people.

3. Controlling exercises corrective measures after thorough monitoring and evaluation.

4. Positive interpersonal relationship from the manager and among employees is

5. Planning creates and develops strategies and analyzes business opportunity.

6. Classical theory perceives that maximum productivity of employees can be obtained

Organization and Management (Bridging Program)

Organization and Management (Bridging Program)

Organization and Management (Bridging Program)

II. Picture Analysis (Function of a Manager)

Organization and Management (Bridging Program)

The Functions, Roles, and Skills of a Manager

Organization and Management (Bridging Program)

CATEGORY MANAGER’S ROLE

Organization and Management (Bridging Program)

DECISIONAL Entrepreneur. Manager creates and control change

Disturbance-Handler. When an organization or team

A manager ideally has to be always equipped with the following Skills:

Organization and Management (Bridging Program)

The following words will help you understand the lesson:

THE INTERNAL AND EXTERNAL ENVIRONMENT OF BUSINESS

Organization and Management (Bridging Program)

A domestic environment in business is affected by economic, legal and cultural factors

What are these Environmental Factors?

• Missions and Objectives. Different priorities, policies, and philosophies of a business

Organization and Management (Bridging Program)

Micro environment includes the following factors:

Macro environment includes the following factors:

• Technological Factors. Technology sets challenges to dealer. It affects the kind of

ORGANIZATIONAL ENVIRONMENTAL SCANNING