Republic of the Philippines

Polytechnic University of the Philippines

Quezon City

BUSINESS MANAGEMENT

A module presented to the Bachelor in Business Teacher Education of

Polytechnic University of the Philippines,
Quezon City

In partial fulfillment of the requirements for the

Methods of Teaching

BTED 3043

Submitted to:
Professor Sheryl Morales
Instructor

Submitted by:
Maribeth S. Bautista
BBTE 3-1

Ms. Faye Estabillo

Editor

2010
Pre Test:

Answer the following:

Matching Type:

1. Controlling a. is setting up goals and objectives for the business.

2. Directing b. the process of establishing and maintaining relationships
3. Staffing c. process of grouping employees in terms of their capabilities in work.
4. Organizing d. the process of supervising the staff to be able to reach the company’s
goals and objectives
5. Planning e. is checking the work accomplished against plans and or standards and
making adjustments or corrections if necessary.

True or False: Write True if the statement is correct and write False if the statement is wrong.

______1. Technical skills include knowledge of and proficiency in certain specialized field, such as
engineering, computers, accounting, or manufacturing
______2. Conceptual Skill doesn’t involve the ability to work well with other people both individually
and in group

______3. Conceptual Skills: Ability to use information to solve business problems, identification of
opportunities for innovation, recognizing problem areas and implementing solutions, selecting critical
information from masses of data, understanding the business uses of technology, understanding the
organization's business model.

______4. Top level Management is also known as supervisory / operative level of management. It
consists of supervisors, foreman, section officers, superintendent etc.

______5. Middle Level Management are the branch managers and departmental managers constitute
middle level. They are responsible to the top management for the functioning of their department
 What are you expecting to learn?
a. The five functions of Management.
b. The three levels of Management
c. The three types of Managerial Skills

Management in all business areas and organizational activities are the acts of
getting people together to accomplish desired goals and objectives efficiently and
effectively. Management comprises planning, organizing, staffing, leading or directing,
and controlling an organization (a group of one or more people or entities) or effort for
the purpose of accomplishing a goal. Resourcing encompasses the deployment and
manipulation of human resources, financial resources, technological resources, and
natural resources.

Because organizations can be viewed as systems, management can also be defined as human action,
including design, to facilitate the production of useful outcomes from a system. This view opens the
opportunity to 'manage' oneself, a pre-requisite to attempting to manage others.

Management can also refer to the person or people who perform the act(s) of management.

A. The five functions of management

Planning
It is the foundation area of management. It is the base upon which the all the areas of management should
be built. Planning requires administration to assess; where the company is presently set, and where it
would be in the upcoming. From there an appropriate course of action is determined and implemented to
attain the company’s goals and objectives

Planning is unending course of action. There may be sudden strategies where companies have to face.
Sometimes they are uncontrollable. You can say that they are external factors that constantly affect a
company both optimistically and pessimistically. Depending on the conditions, a company may have to
alter its course of action in accomplishing certain goals. This kind of preparation, arrangement is known
as strategic planning. In strategic planning, management analyzes inside and outside factors that may
affect the company and so objectives and goals. Here they should have a study of strengths and
weaknesses, opportunities and threats. For management to do this efficiently, it has to be very practical
and ample.
 Organizing
The second function of the management is getting prepared, getting organized. Management must
organize all its resources well before in hand to put into practice the course of action to decide that has
been planned in the base function. Through this process, management will now determine the inside
directorial configuration; establish and maintain relationships, and also assign required resources.

While determining the inside directorial configuration, management ought to look at the different
divisions or departments. They also see to the harmonization of staff, and try to find out the best way to
handle the important tasks and expenditure of information within the company. Management determines
the division of work according to its need. It also has to decide for suitable departments to hand over
authority and responsibilities.

Staffing
Staffing includes manning and keeping manned, the positions created by the organizational structures\e.
It thus necessitates defining manpower requirements for the job to be done, and includes inventory,
appraising and selecting applicants for different positions, compensations and training or otherwise
developing both applicants and incumbents to accomplish the task effectively.

Directing
Directing is the fourth function of the management. Working under this function helps the management to
control and supervise the actions of the staff. This helps them to assist the staff in achieving the
company’s goals and also accomplishing their personal or career goals which can be powered by
motivation, communication, department dynamics, and department leadership.

It is very important to maintain a productive working environment, building positive interpersonal

relationships, and problem solving. And this can be done only with Effective communication.
Understanding the communication process and working on area that need improvement, help managers to
become more effective communicators. The finest technique of finding the areas that requires
improvement is to ask themselves and others at regular intervals, how well they are doing. This leads to
better relationship and helps the managers for better directing plans.

Controlling
Controlling is checking the work accomplished against plans and or standards and making adjustments or
corrections when new developments or unforeseen events necessitates. It is the measurement and
appraisal of activities performed by the subordinates in order to make sure that the objectives and the
plans devised to attain them are being attained

B. Levels of Management

The term “Levels of Management’ refers to a line of demarcation between various managerial positions
in an organization. The number of levels in management increases when the size of the business and work
force increases and vice versa. The level of management determines a chain of command, the amount of
authority & status enjoyed by any managerial position. The levels of management can be classified in
three broad categories: -

1. Top level / Administrative level

2. Middle level / Executory
3. Low level / Supervisory / Operative / First-line managers

Managers at all these levels perform different functions. The role of managers at all the three levels is
discussed below:
 Top Level of Management
It consists of board of directors, chief executive or managing director. The top management is the
ultimate source of authority and it manages goals and policies for an enterprise. It devotes more
time on planning and coordinating functions.

The role of the top management can be summarized as follows –

a. Top management lays down the objectives and broad policies of the enterprise.
b. It issues necessary instructions for preparation of department budgets, procedures,
schedules etc.
c. It prepares strategic plans & policies for the enterprise.
d. It appoints the executive for middle level i.e. departmental managers.
e. It controls & coordinates the activities of all the departments.
f. It is also responsible for maintaining a contact with the outside world.
g. It provides guidance and direction.
h. The top management is also responsible towards the shareholders for the performance of
the enterprise.

Middle Level of Management

The branch managers and departmental managers constitute middle level. They are responsible to
the top management for the functioning of their department. They devote more time to
organizational and directional functions. In small organization, there is only one layer of middle
level of management but in big enterprises, there may be senior and junior middle level
management. Their role can be emphasized as –

i. They execute the plans of the organization in accordance with the policies and directives
of the top management.
j. They make plans for the sub-units of the organization.
k. They participate in employment & training of lower level management.
l. They interpret and explain policies from top level management to lower level.
m. They are responsible for coordinating the activities within the division or department.
 n. It also sends important reports and other important data to top level management.
o. They evaluate performance of junior managers.
p. They are also responsible for inspiring lower level managers towards better performance.

Lower Level of Management

Lower level is also known as supervisory / operative level of management. It consists of
supervisors, foreman, section officers, superintendent etc. According to R.C. Davis, “Supervisory
management refers to those executives whose work has to be largely with personal oversight and
direction of operative employees”. In other words, they are concerned with direction and
controlling function of management. Their activities include –

q. Assigning of jobs and tasks to various workers.

r. They guide and instruct workers for day to day activities.
s. They are responsible for the quality as well as quantity of production.
t. They are also entrusted with the responsibility of maintaining good relation in the
organization.
u. They communicate workers problems, suggestions, and recommendatory appeals etc to
the higher level and higher level goals and objectives to the workers.
v. They help to solve the grievances of the workers.
w. They supervise & guide the sub-ordinates.
x. They are responsible for providing training to the workers.
y. They arrange necessary materials, machines, tools etc for getting the things done.
z. They prepare periodical reports about the performance of the workers.
aa. They ensure discipline in the enterprise.
bb. They motivate workers.
cc. They are the image builders of the enterprise because they are in direct contact with the
workers.
C. Managerial Skills

Technical Skills
Technical skills include knowledge of and proficiency in certain specialized field, such as engineering,
computers, accounting, or manufacturing. These skills are more important at lower level management
since these managers are dealing directly with employees doing the organizational work.

Conceptual Skills
Conceptual Skills: Ability to use information to solve business problems, identification of opportunities
for innovation, recognizing problem areas and implementing solutions, selecting critical information from
masses of data, understanding the business uses of technology, understanding the organization's business
model.

Interpersonal Skills
Human skills involve the ability to work well with other people both individually and in group. Because
managers deal directly with people, this skill is crucial! Managers with good human skills are able to get
the best out of their people. They know how to communicate, motivate, lead, and inspire enthusiasm and
trust. These skills are equally important low level (first line) management, middle level management and
top level management

Coaching and mentoring, diversity ; working with diverse people and culture, networking within the
organization, networking outside the organization, working in teams; cooperation and commitment.

In today's demanding and dynamic workplace, employees who are invaluable to an organization must be
willing to constantly upgrade their skills and take on extra work outside their own specific job areas.
There is no doubt that skills will continue to be an important way of describing what a manager does.
Post Test:

Answer the following:

Matching Type:

1. Controlling a. is setting up goals and objectives for the business.

2. Directing b. the process of establishing and maintaining relationships
3. Staffing c. process of grouping employees in terms of their capabilities in work.
4. Organizing d. the process of supervising the staff to be able to reach the company’s
goals and objectives
5. Planning e. is checking the work accomplished against plans and or standards and
making adjustments or corrections if necessary.

True or False: Write True if the statement is correct and write False if the statement is wrong.

______1. Technical skills include knowledge of and proficiency in certain specialized field, such as
engineering, computers, accounting, or manufacturing
______2. Conceptual Skill doesn’t involve the ability to work well with other people both individually
and in group

______3. Conceptual Skills: Ability to use information to solve business problems, identification of
opportunities for innovation, recognizing problem areas and implementing solutions, selecting critical
information from masses of data, understanding the business uses of technology, understanding the
organization's business model.

______4. Top level Management is also known as supervisory / operative level of management. It
consists of supervisors, foreman, section officers, superintendent etc.

______5. Middle Level Management are the branch managers and departmental managers constitute
middle level. They are responsible to the top management for the functioning of their department
Answer Key:

Matching Type:

1. e
2. d
3. c
4. b
5. a

True or False

1. True
2. False
3. True
4. True
5. True