achieve specific objectives. It focuses on 3 aspects, namely process, xesources, and,objectives. a process of planning, organizing, leading and controlling resources to Planning is the process of identifying the objectives of a task, assignment or cause and the corresponding activities to achieve thos ¢ objectives (Schermerhorn 2011) Organizing is gathering the resources required to carry out the activities and allocating the effective and efficient use of those resources. (Schermerhorn 2011) ‘Leading is a process that influence other people to perform, direct people to achieve desired objectives, coordinates proper implementation of activities, communicate effectively across ind motivates individual to perform their best. various group: Controlling is the monitoring and evaluati: stated objectives (Schermerhorn 2011) ies undertaken in relation to the 2 of activi Evolution of Management Theories The lesson for today will help you understand and explain the different management theories to guide you in choosing the applicable and effective management strategies in solving problem and operating of any business organization and be an efficient manager in the future. ‘The driving force behind the evolution of management theory is the search for better ways to utilize organizational resources. Management Theories become an organized body of knowledge only around 19° century. Early management movement has been started for thousands of years ago. The pyramids of Egypt are tangible proof of the ancient world’s ability to manage. This outstanding accomplishment shows that during those times people are already practicing management. Management Theories are group into three management approaches, namely:|¢lassieal ‘management approach, behavioral management approach, and modern management approach{Classical Management Theoried Scientific ‘Management Bt [Bureaucratid nization { Frederick Taylor | Henri Fayol Max Weber A) Glassical Management Approach looks at management mainly from “rational” perspective that assumes there is “one best way” to do things. This sought to enhance organizational efficiency to increase production. ‘Scientific Management gives emphasis on workers’ performance of their job, training, and fair compensation. b. Administrative Principles of Management was defined by Henri Fayol and came up with 14 principles of management: div: ion of work, authority, discipline, unity of command, unity of direction, subordination of individual interest to the general imterest, remuneration, centralization, scalar chain, order, equity, stability and tenure of personnel, initiative, and esprit de corps.c. Bureaucratic Management is the ideal structure; characterize by division of labor, clear authority of hierarchy, formal selection of procedures, detailed rules and regulations, and npersonal relationships. Behavioral Management BehavioralMovement Cooperative System Theory X and Y Hierarchy of Needs Abr: Elton Mayo B) Behavioral Management Theories is ushered in the human relations, The aim of these theories is to satis full to seek their best performance. a. Behavioral Movement refers to the productivity of workers is directly related to group pressure and accept b. CBapENEISSSEGHS. people's needs must be met, and managers facilitate communication and encourage workers to perform their best 2, must ‘Theory X assumes that workers are lazy and hate work, such that autocratic ‘management is adopted, while d. ‘Theory ¥ assumes that workers will do best in their work, such that participative management is adopted.© Hierarchy of Needs Being (growth) Needs Motivation increases as needs are met Deficiency Needs Motivation decreases as needs are met {Theory of Adult Personality, considerations on the needs and capabilities of mature adults. involves several several views and techniques: focuses on quality principles is knowledge management means continuous learning and improvement of organizational members MENNDIN cisions ae based on facts of what really works MPEG, 2 2tigues for analyzing competitors Functions, Roles, and Skills of a manager In every organization cither private or public, there are always persons who are designated as managers. Let us identify the different functions, roles and skills of a manager and how they use it effectively and efficiently. fic tasks and responsibilities assigned to Managerial functions pertain to the speci managers. A manager is expected to lead, direct, supervise, monitor, evaluate and control the performance and output of his or her group. There are managerial functions that vary depending on the level of managerial position. These levels are as follows+ Firstlevel supervisors — The first level managers manage the work of the members who are directly involved in the production of products and delivery of services in the organization. Examples of these are team leaders or supervisors who supervises rank and file employees. They make sure that the objectives of the organization are achieved. + Middle managers — The middle level managers manage the work of the supervisors or other members of the organization. They are the division heads or department head, depending on the size and nature of the organization, They also make sure that the objectives set by the Top managers are cascaded well to the first-level supervisors. + Top managers — The managers at the top level of the organization manage the middle managers. They have larger responsibilities and accountabilities. Example of top managers are positioned as the organization's president, (chief executive officer or CEO) or the board of directors. Boles of a Manager ‘A manager is expected to fulfill three types of role informational and interpersona decisional roles. + Interpersonal roles — A manager, as a figurehead, is a role model for the members of the organization. As a leader, he or she provides direction to the activities and outputs of his or her subordinates. As a liaison, he or she coordinates the activities of his or her members with the tivities of other groups within the organization. + Informational roles — A manager also serves the role of a monitor who is responsible for ihering relevant information and tracking what is happening inside and outside the organization. Alongside being a monitor, the manager also acts as disseminator who shares with the members relevant information that he or she gathers for the improvement of the organization. He or she is also a spokesperson who acts as the official communicator for the organization.+ Decisional roles — A manager is an entrepreneur who develops new opportunities for the business. At the same time, he or she is also a disturbance handler who resolves conflicts among members; a resource allocator who allocates funds and distributes resources for effective use; and a negotiator who makes effective agreements with various parties, Skil of a Manager is the ability to perform a spe ¢ task to achieve the desired results. For example, anyone can sing and dance but not all can sing and dance effectively. There must be a skill to deliver a wonderfull performance. A manager has to have three sets of skills: technical skills, human skills and conceptual skills. + Technical skills — This pertains to the abilities or expertise to do the job required. For example, a marketing officer must know how to analyze the buying behavior of the customers and to look for the current trends in the market. + Huiian skills — This pertains to the interpersonal skills or the ability to work well with other people. This skill is essential in handling and addressing individual differences and challenging tasks required among members. + Gonceptital Skills — This pertains to the ability to think er Conceptual skills are characterized with the ability to see the big picture of things, understand -ally and analytically. their interrelationships, and analyze the cause \d implications of actions or situationsINTRODUCTION ‘Organization is defined as a social setting composed of several groups of people who bond and work together to achieve a common purpose (Schermerhorn, 2011). Organizations are established by people with common interest. Forms of Business Organizations . "CORPORATION 's a business organization where ownership is through shares of stock. In a corporation, the business has a legal identity that is separate from the legal identity of the owners. As such, in a case of a financial loss, the liability is limited to the amount invested by the owners. A board of directors serves as the policy-making body of a corporation. It is also registered with the Securities and Exchange Commission (SEC). Under this form, shareholders are not liable for unpaid debts of the corporation. It can continue to exist even if shareholders change, withdraw, or die. However, it is very costly and difficult to organize. It is subject to more stringent government supervision and is taxed at a flat rate. + SOLE PROPRIETORSHIP - isa form of business owned by one person only. Unlike in corporations where the owners have limited liability, the sole proprietor or owner has full liability of the business in cas ‘This means that the owner is required to pay the claimants or creditors from his or her own assets. + PARTNERSHIP - is another form of business awed by two or more persons Similar to sole proprietor, the business partners have full iancial loss. + LIMITED PARTNERSHIP ~ is a form of business also owned by two or more, ‘persons, but with limited liabilities during a financial loss. The financial liability of each party is bility in case of limited to the shares that the party contributed to form the business entity.+ COOPERATIVE — is a form of business organization where the ownership is ‘equally shared among members. It is a group enterprise similar to a corporation in having a board of directors and officers who manage the cooperative. A cooperative must be duly registered with the Cooperative Development Authority (CDA) to operate and be legally recognized. Forces in the Firm’s Environment Various forces in the macro environment that affect a firm may be classified mainly into political, economic, sociocultural and technological (called as PEST analysis). Also added to the PEST analysis is the presence of natural risks in the environment due to the vulnerability of the Philippines to natural disasters such as typhoons, floods, earthquakes, and volcanic eruptions. + Political Forees — i is related to government affairs and laws or regulations, It includes factors such as form of government, industry regulations, passage of laws, and polities + Eeonomie Forees — it pertains gconomic conditions wlevant to the business. These economic factors include employment rates, income levels, inflation rates, savings and investment rates, insurance rates and monetary policies. related to socicial characteristics. It includes demographics and values of people in the so ety + ‘Technological Forces — it is related to new tools, ideas, and approaches used to produce goods and services. It ineludes new procedures and equipment + Natural Risks - these risks could affect the firm’s environment. Business establishments need to assess their exposure to natural risks. Firms must adopt disaster prcparcdness and resiliency measures to ensure business survival and resiliency necessary for their long-term growth. Application of PEST AnalysisEnvironmental Scanning and SWOT Analysis To formulate strategies for the firm, a manager needs to conduct environmental s Environmental seanning is the process of assessing the intemal and external operating snvironment of a fim to analyze its Strengths, Weaknesses, opportunities and threats (SWOT (Analysis). The elements of environmental scanning pertain to the external analysis and interna) always bear in mind that Opportunities and anning. analysis of the firm. In doing SWOT analysi ‘Threats belong to the externa ysis. It also includes analysis of the competitive forces in jomer specific industry where the firm belongs, such as competitors, buyers (c suppliers, and -e. While on the other hand, internal analysis examines substitutes for the firm's product or serv c siren caknesses of the conditions inside the firm, such as skills and competencies of employees, capacities of resources, organizational culture, nd team spirit. ‘The Local and International Business Environment of the Firm Managers continually face the challenge of gaining competitive advantage in today’s bus ness environment to boost company performance. Manager must know how to analyze the scope and strength of competition prevailing in business environment of the company. + Competitive advantage — it pertains to guishing features or characteristics of a ization that enable it to perform better than cival organizations. business orga + Environmental uncertainty — pertains to lack of complete infomation about the current and future environment of the firm + Environmental complexity — the presence of numerous factors prevailing in the environment that change over time. + Local business environment — it pertains to the specific industry to which the company clang: cclly dea It comprises the customers, suppliers, competitors, regulators, and employees.‘companies operating in foreign loc pertains to the business activities performed by Industry Analysis A manager must gauge the status of business environment is to analyze the competition in the local business environment. Porter's Five Forces Model + Industry competitor — This focuses on the rivalry among existing firms. The greater number of rival companies existing in the area, the more intense the competition will become. + SupplerProducers Th there are more products of a particular product as compared to the number of buyers or focuses on the bargaining power of suppliers ar producers. If ‘customers for that product, then the producers would have more control in influencing the selling price for that product, such that this creates competition between the suppliers and the buyers. + Buyers/Consumers — This focuses on the bargaining power of buyers or consumers. If there are more buyers of the product as compared to the number of sellers for that product, then the buyers or consumers would have a better control in influencing the price that they are willing to pay for that product. + Potential new entrants — This focuses on the dhneais of new entrants. The presence of new rival companies will increase the total number of competitors in the area, which further intensifies the level of competition among them. + Substitutes — This focuses on the threat of substinuie products or services. The presence of substitute products will serve as competitors to existing products, and this further intensifies the level of competition among the companies who produce similar products.‘The Role of Business in Economy and the Different Phases of Economic Business plays an important role of driving the economic growth and development of a country. Business enterprises create new jobs and provide employment for people. Here are the different roles of business in economic growth and development is the obligation of a manager to operate the business in Ways that are both beneficial 1o the company and the society. There are numerous ways by which companies practice CSR. Different Phases of Economic Development A better understanding of how economies are developed helps to guide managers on the type of strategy to adopt for their businesses. These factors include the country’s history, political structures, economic structure, sociocultural conditions, infrastructures, the presence of natural resources, and other external event, such as global financial and plummeting of oil prices. + Developing Economies Phase: Reliance on Agriculture as the Primary Sector the agricultural sector typically plays a dominant role in the economy, compared to other sectors such as the industry (manufacturing) and the service sectors. + Industrialization Phase: Decline in Agriculture and Shift to the Industry Sector — Industry is broadly defined to include the manufacturing, mining. construction, sclectricity, gas and water sectors. The modern economy develops with the growth of industrialization. The transition from traditional to modern economy is characterized by the following factors: increased consumer demand, increased incomes, growth in the labor force, accumulation of capital and introduction of new technologiesINTRODUCTION ‘A manager performs his functions to accomplish organizational objectives by working with and through people and other organizational resources. He/She does s amidst an environment characterized by constant change. With an increasingly uncertain future, a manager anticipates the environment by planning, Planning plays an important role in the success of every organization. It helps the manager to see the whole picture of the operation of the business. What is Planning? + Planning is a discovery of alternative paths. It also requires decision-making, + Planning is essentially having a roadmap where you can mark your goal or destination, and then selecting the best route to get there. Benefits of Planning + Itsharpens focus. + Itprovides flexibility, + Itimproves coordination + Ittightens control ‘Types of Plans — In terms of time horizon or intended duration, these plans are traditionally those that Jook at three or more years into the figure. These are usually backed up by research studies. + Short-term plans — are usually those that covera period of one year or Jess. Examples are monthly plans, quarterly plans, midyear plans and annual plan + Standing plans — are used for situations that occur repeatedly. They are in the form of OP). They usually pertain to matters policies, rules, and standard operating procedure: di such as hirin; issal ipline, and+ Siniglelase plans — also called “stand-alone plans”. They are used for planning a unique or specific project or program. These are also used once because the situation is not likely to happen again in the furure. Policy — is a general or broad guide for the actions or behavior of people in the workplace. ‘Rule ~ is a moze specific guide to actions or behavior jn the workplace. Planning at Different Levels ofthe Flem + Sifafele pls ae developed by the Jop-manazement of th company. It covers the entire company and provide the direction it will take for the coming years. It starts with clarifying the long-term vison and mission of the company. Top managers carefully craft the vision- mission of the company because they reflect the “heart and soul” of the firm. + Wision — is “goal-oriented” as it sets a clear direction of where the company wants to go or wants to achieve in the future. + Mission — pertains to the guiding purpose of the company. It concisely describes what the company does in manner that differentiates it from other companies. + Funetional Plans — they are developed at the middle and supervisory levels. Th the plans that are cascaded down through the different management levels in the organization. Functional plans are also called tactical plans since they are tactics prepared by the managers occupying the different functional different departments. Planning Techniques and Tools Planning techniques and tools perta predicting situations that will likely to occur. The long-term success of an organization depends on how well managers are able to use and apply their knowledge, skills, and talent for planni 2. Here are different planning techniques and tools.‘Forecasting — pertains to the use of specific techniques to predict the likelihood of | certain events or factors to happen in the future, ‘Quantitative Forecasting — uses statistical tools and analyses to predict the future. it makes use of opinions or perceptions from experts for prediction purposes. It can be applied for non-quantifiable data and when historical data are not applicable or available. ‘Contingency Planning — is the process of identifying alternative courses of action in the event that unforeseen or uncontrollable events take place. Business contingency plans are prepared by managers in relation to financial risks, and natural disaster risks. ‘Scenario Planning — involves predicting potential alicrnative events that might happen. It emtails preparing resour and actions to prevent or mitigate the “shocks” from negative events, It is more detailed and extensive in visualizing the alternative events that may take place. ‘Benchmarking — is finding out what other organizations are doing well and then “best practices” into the operations of one incorporating those organization to improve its cost and effectiveness. in Decision-making T. Identify and define the problem Generate and evaluate alternative courses of action Choose the most appropriate course of action Implement the chosen course of action Evaluate the results ‘Time Management in Decision-making — Time management is a vital skill that a ‘manager suust learn along with decision-making skills. For managers, below are some ween tips in time management: 1. Identify the “time wasters” and avoid them. Better still, get rid of them. 2. Follow priorities by working first on what is most important and urgent.3. Do not get too preoccupied with details to the point that you miss the big picture of picture things. 4. Avoid individuals who tend to monopolize your time unnecessarily. 5. Be the master of your calendar by not letting others control your time. 6. Break complex tasks into smaller chunks that can be done gradually. 7. Stay calm even under time pressure, A relaxed mind avoids mistakes. INTRODUCTION A manager designs and maintains a system of roles within which people in the organization can work together to implement the strategie plan, The suecess of an organization is dependent on, is. Nature of Organizing ‘Organizing — is the process by which managers establishes the structure of working relationships among employees for the € ficient and effective achievement of organizational goals. ‘Organizations — also known as an enterprise. It is a workplace for people working together to achieve a common purpose. ‘Types of Organization ‘Formal Organization — is when the relationship is based on a structure of roles that aims to achieve organizational goals consciously and deliberately. Informal Organization — They are not officially created but are freely formed by members who have a need for them, It does not appear on the organization chart be ause they are relationships based on joint personal activities among people