ORGANIZATION AND

MANAGEMENT
THELMA P. CASTRO
 Management is getting things done through
people. It implies that an organization,
whether small, medium, or large, is
composed of people. A business organization
exists for a purpose.

 Management is a function that directs and

coordinates the efforts of the people to
accomplish goals and objectives by using
available resources efficiently and effectively.
It is also a process of accomplishing the
organization’s goals by working with and
through people.
 Management functions include planning,
organizing, staffing, leading or directing, and
controlling.

EVOLUTION OF MANAGEMENT

 1910s-1940s: Management as Science

◦ Management as science was developed in the
20th century and focused on increasing
productivity and efficiency through
standardization, division of labor,
centralization, and hierarchy.
 1950s-1960s: Functional Organizations
◦ The 1950s and 1960s saw the emergence of
functional organizations and the Human
Resource (HR) movement. Managers began to
understand the human factor in production and
productivity and tools such as goal-setting,
performance reviews, and job descriptions were
born.

1970s: Strategic Planning

The focus is from measuring function to resource
allocation and tools like Strategic Planning,
Growth Share Matrix, and SWOT (identification
and analysis of the company’s Strengths,
Weaknesses, Opportunities, and Threats) were
used to formalize strategic planning processes.
 1980s: Competitive Advantage
◦ As the business environment grew
increasingly competitive and connected, and
with a blooming management consultancy
industry, Competitive Advantage became a
priority for organization in the 1980s. Tools
like Total Quality Management (TQM), Six
sigma, and Lean Management were used to
measure processes and improve
productivity. Employees were more involved
by collecting data, but decisions were still
made at the top, and goals were used to
manage people and maintain control.
 1990s: Process Optimization
Benchmarking and business process reengineering
became popular in the 1990s, and by the middle of
the decade. TQM, Six Sigma, and Lean remained
popular and a more holistic, organization-wide
approach and strategy implementation took the
stage with tools.
 2000s: Big Data

Organizations in the 2000s started to focus on

using technology for growth and value creation.
Big data is a broad term for data sets so large or
complex that traditional data processing
applications are inadequate. Accuracy in big data
may lead to more confident decision-making. And
better decisions can mean greater operational
efficiency, cost-reductions, and reduced risk.
 Principles of Management
Henri
Fayol (1841- 1925) who developed the
fundamental notion of principles of management.

Division of work
◦According to this principle, the whole work is
divided into small tasks. The specialization of the
workforce according to the skills of a person,
creating specific personal and professional
development within the labor force, and
therefore increasing productivity, leads to
specialization which increases the efficiency of
labor.
 Authority and Responsibility

◦ This refers to the issue of commands followed

by responsibility for their consequences.
Authority means the right of a superior to give
enhanced order to his subordinates;
responsibility means obligation for
performance. This principle suggests that there
must be parity between authority and
responsibility. They are co-existent and go
together, and are two sides of the same coin,
and the authority must be commensurate with
responsibility.
Discipline

◦Discipline refers to obedience,

proper conduct in relation to others,
respect of authority. It is essential
for the smooth functioning of all
organizations. This will also help
shape the culture inside the
organization. Discipline is absolutely
necessary for enterprises to function
well.
Unity of Command
◦This principle states that each
subordinate should receive order;
and be accountable to one
superior. If an employee receives
orders from more than one
superior, it is likely to create
confusion and conflict. Unity of
Command also makes it easier to
fix responsibility for mistakes.

Unity of Direction
◦ All those working in the same line of
activity must understand and pursue the
same objectives. All related activities
should be put under one group, there
should be one plan of action for them,
and they should be under the control of
one manager.It seeks to ensure unity of
action, focusing of efforts, and
coordination of strength.
 Subordination of Individual
Interest

◦ The management must put aside

personal considerations and put
company objectives first. Therefore
the interests of goals of the
organization must prevail over the
personal interests of individuals.
Remuneration

◦ Workers must be paid sufficiently as this is a

chief motivation of employees and therefore
greatly influences productivity. The quantum
and methods of remuneration payable should
be fair, reasonable, and rewarding of effort.
Remuneration is paid to worker as per their
capacity and productivity. The main objective
of an organization is to maximize the wealth
and the profit as well. For this purpose, the
organization has paid wages, salaries, and
benefits to their staff and scientifically so that
organizational efficiency can be ensured.
The Degree of Centralization
◦ The amount of power wielded with the
central management depends on
company size. Centralization implies
the concentration of decisions-making
authority at the top management.
Sharing of authority with lower levels
is called decentralization. The
organization should strive to achieve a
proper balance.
Scalar Chain

◦ Scalar chain refers to the chain of superiors

ranging from the top management to the
lowest rank. The principle suggests that there
should be a clear line of authority from top to
bottom linking all managers at all levels. It is
considered a chain of command. However
there is a concept called a “gang plank” in
which a subordinate may contact a superior in
case of an emergency, defying the hierarchy
of control. In this event, the immediate
superiors must be informed about the matter.
Order
◦ Social order ensures the fluid
operation of a company through
authoritative procedure. Material
order ensures safety and
efficiency in the workplace.
Order should be acceptable and
under the rules of the company.
Equity
◦ Employees must be treated
kindly, and justice must be
enacted to ensure a just
workplace. Managers should be
fair and impartial when dealing
with employees, giving equal
attention toward all employees.
Stability of Tenure of Personnel

◦The period of service should not

be too short and employees
should not be moved from
positions frequently. An employee
cannot render useful service if
he/she is removed before he/she
becomes accustomed to the work
assigned to him/her.
Initiative

◦Using the initiative of employees can

add strength and new ideas to an
organization. Initiative on the part of
employees is a source of strength for
an organization because it provides
new and better ideas. Employees are
likely to take greater interest in the
functioning of the organization.

Esprit de Corps

◦This refers to the need of

managers to ensure and develop
morale in the workplace;
individually and communally.
Team spirit helps develop an
atmosphere of mutual trust and
understanding. Team spirit
helps to finish the task on time.
5 key Roles of Management
Function

To organize
To plan and forecast (prevoyance)
To command
To control
To coordinate