CHAPTER 2

BUSINESS
ORGANIZATION
“The speed of the canoe doesn’t come
from its wood, but from the pilot’s skills
and wind direction.”
MANAGEMENT AND
ORGANIZATION
 MANAGEMENT – to maintain or
improve the ability of an
organization for effectiveness,
efficiency, and efficacy in achieving
predetermined objectives.
3D OF MANAGEMENT
1. To think through and define specific
purpose and mission of the institution,
whether business, hospitals, enterprise, or
university;
2. To make work productive and the worker
achieving;
3. To manage social impacts and
social responsibilities.

- Peter Drucker (1977)

MANAGEMENT AND ITS
RELATION TO ARTS AND SCIENCE
 Frederick Taylor –  Henry Gantt –
father of scientific emphasize the
management importance of
time and cost in
planning and
controlling
MANAGEMENT AND ITS
RELATION TO ARTS AND SCIENCE
 Frank Gilbreth –  Mary Parker Follet
introduce motion – emphasized the
studies value of human
 Karl Pearson – relations to the
developed basic principle of
management organization
statistical
technique
MANAGEMENT AND ITS
RELATION TO ARTS AND SCIENCE
 Chester Barnard –  Henry Fayol –
stressed the father of modern
sociological management
aspects of  Systemized the
management concerns of
management
5 ELEMENTS
1. To forecast the plan;
2. To organize;
3. To command;
4. To coordinate; and
5. To control

- By Henry Fayol
MANAGEMENT
 Management is about man, about people
and not alone but things, system,
resources, or skills.
 Management is experience, is practice.
 Management is also mental, also a theory.
 Management is about managing men with
tact. Tact with respect and courtesy.
Treating people with dignity and human
worth.
MANAGER
A dynamic element in
every business
organization

-Drucker (1956)
EXTERNAL ENVIRONMENT
 The Economic Environment – the
demand, supply, and prices of
commodities, products and
other inputs are the major
concerns of the manager.
EXTERNAL ENVIRONMENT
 The Technological Environment – referred
to as “the total number of knowledge we
have of ways to do things” (Koontz) It
includes inventions, techniques and a vast
store of organized knowledge about
everything.
 Its main influence is on ways of doing
things, on how we design, produce,
distribute and sell goods as well as
services.
EXTERNAL ENVIRONMENT
 The Social Environment – is
made up of attitude, desires,
expectations, degrees of
intelligence and education,
beliefs and customs of people in
a given society.
EXTERNAL ENVIRONMENT
 The Political Environment –
intertwined with the social
environment but become more
difficult if there is a sudden
change in political order or
business laws.
THANK YOU!!!