ORGANIZATION AND

MANAGEMENT
PREPARED BY: MR. EDELFIN P. TAN,MBA
DEFINITION AND FUNCTONS OF
MANAGEMENT
 PLANNING- involves determining the organizations
goals or performance objectives, defining
strategic actions that must be done to accomplish
them, and developing coordination and
integration activities.
ORGANIZATION- demands assigning
task setting aside funds and
bringing harmonious relations
among the individuals and work
groups or teams in the
organizations
STAFFING- indicates filling in
the different job positions in
the organizations structure; the
factors that influences this
function include: size of the
organization, types of job.
LEADING- Entails influencing or
motivating subordinates to do their
best so that they would be able to
help the organization’s endeavor
to attain their set goals.
CONTROLLING- involves
evaluating and, if necessary
correcting the performance
of the individuals or work
groups.
Henri Fayol’s Management Principles

1. WORK DIVISION OR

SPECIALIZATION
2. AUTHORITY

3. DISCIPLINE
4. UNITY OF
COMMAND
5. UNITY OF
DIRECTION
 6.
SUBORDINATION OF INDIVIDUAL
INTEREST TO GENERAL INTEREST

 7. REMUNERATION/ PAY
8. CENTRALIZATION

9.
SCALAR CHAIN OF
AUTHORITY
10. MAINTENANCE OF ORDER

11. EQUITY FAIRNESS

12.STABILITY / SECURITY OF
TENURE WORKERS

13. EMPLOYEE INITIATIVE

14.PROMOTION OF TEAM
SPIRIT OR ESPRIT DE
CORPS
Deming’s 14 points for Top Management
 1. create constancy of purpose for improvement of products and services.

 2. Adopt the new TQM philosophy

 3. Cease dependence on mass inspection by doing things right and doing it right the
first time.

 4. End the practice of awarding business on the basis of price tag alone

 5. Constantly improve the system of production and services

 6. Institute training
 7. Adopt and Institute leadership

 8.Drive out fear

 9.Breakdown barriers between staff areas

 10. Eliminate slogans , focus on correction of defects in the system

 11. Eliminate numerical quota for the work place

 12. Remove barriers that rob people of “ pride of workmanship

 13.Encourage education and self-improvement for everyone

 14. Take action to accomplish the transformation

Fitness of Quality according to Juran
 1. Quality of Design – through marketing research, product and
concept.

 2. Quality of conformance- through management manpower ,

and technology

 3. Availability – through reliability , maintainability and

logistics support.

 4. full service- through promptness, competence and integrity.

Juran’s Quality Planning Roadmap
 1. Identify your customer

 2. determine their needs

 3. Translate them into one’s language

 4. Develop a product that can respond to needs

 5. Develop process which are able to produce those products features

 6. Prove that the process can produce the products

 7. Transfer the resulting plans to the operating forces.

Function , Roles and Skills of a Manager

 Managerial Roles and Functions

 Top- level Managers- Top managers are the

general or strategic managers who focus on
long term organizational concern and
emphasize the organization stability,
development, progress and overall
efficiency and effectiveness.
 Middle –level Managers- are the tactical managers
in charge of the organization’s middle levels or
departments.

 Frontline or lower –level Managers- are also

known as operational managers and are
responsible for supervising the organizations day-
to- day activities.
Managerial Skills
 Conceptual Skills- enable managers to think of possible
solution to complex problem.

 Human Skills- enables managers in all levels to relate well

with people. Communicating, leading, inspiring and
motivating them become easy with the help of human
skills.

 Technical skills- are also important for managers for

them to perform their task with proficiency with the use
of their expertise.
End Of Chapter 1
 CHAPTER 2

THE FIRM AND ITS ENVIRONMENT

 All
Managers, without exception, must
consider their organizations external
and internal environments before
planning anything.
LESSON 1

ENVIRONMENTAL FORCES AND

ENVIRONMENTAL SCANNING
 The environment in which a business
operates is a major consideration in
determining an organization’s design
or structure.
Components of the External Business

Environment: General and Specific

 Systematic monitoring of the major
external forces influencing
organizations is necessary to improve
the management of companies.
 Socio-culturalsituations include the
customer’s changing values and
preferences; customs could also affect
management practices in companies.

 Politico-legal
situations refer to national or
local laws, international laws, and rules
and regulations that influence
organizational management.
 Demographic situations such as gender, age, education
level, income, number of family members, geographic
origin, etc., may also influence some managerial decisions
in organizations.

 The technological situations of companies involve the use

of varied types of electronic gadgets and advanced
technology such as computers, robotics, microprocessors,
and others that have revolutionized business
management; e-commerce, teleconferencing, and
sophisticated information systems have rapidly changed
the ways that business is conducted in the 21st century.
 World and ecological situations are related to the
increasing number of global competitor’s and
markets, as well as the nature and conditions of
the changing natural environment.
 Meanwhile, the specific business environment
focuses on the stakeholders, customers, pressure
groups, and investors or owners and their
employees.
 Stakeholders are parties likely to be affected by
the activities of the organization, while customers
are those who patronize the organization’s
products and services.

 Suppliers are those who ensure the organization’s
continuous flow of needed and reasonably priced
inputs or materials required for producing their
goods and rendering their services.
 Pressure Groups are special-interest groups that
try to exert influence on the organization’s
decisions or actions.

 The organization’s investors or owners provide
the company with the financial support it needs.

 Employees are comprised of those who work for
another or for an employer in exchange of
salaries/wages or other considerations.
Components of the Internal Business
Environment
 An organization’s internal business environment is
composed of its resources, research and development,
production, procurement of supplies, and the products
and services it offers.
 The organization’s internal environment must also be
subjected to internal analyses. Internal strengths and
weaknesses, opportunities and threats with regards to its
resources (financial, physical, mechanical, technological,
and human resources), research and development
endeavors, production of goods, procurement of supplies
(materials, inputs, and finance), and products and
services must all be considered prior to organizational
planning.
 Components Environmental Scanning:
Developing a Competitive Mindset,
Considering Future Business Scenarios,
Business Prediction, and Benchmarking
 Adapting to environmental uncertainties must
start with developing a competitive mindset.
Ignorance of present-day realities may cause
individuals or organizations to do certain things
that they may regret in the future; hence,
environmental scanning is necessary.

 Meanwhile, business prediction, also known as
business forecasting, is a method of predicting
how variables in the environment will alter the
future of business.
 Another Component of environmental
scanning involves gauging the performance
of the organization in relation to those of
others; this is called benchmarking.

 Benchmarking is defined as the process of

measuring or comparing one’s own
products, services, and practices with those
of the recognized industry leaders in order
to identify areas for improvement.
LESSON 2

The Local and International

Business Environment of the
Firm
 Cultural Intelligence is an individual’s
ability to favorably receive and adjust to an
unfamiliar way of doing things.
Anthropologist Edward T. Hall, as cited by
Schermerhorn (2008), noted that the way
people approach and ideal with time varies
across cultures.
 Monochronic cultures refer to cultures
wherein people tend to do one thing at a
time; also, these cultures emphasize
punctuality and sticking to set rules.

 Polychronic cultures, on the other hand,

are more flexible as regards time;
accomplishing many different things at
once is also common for these cultures.
Geer Hofstede, also cited by Shermerhorn (200l8),
showed how selected countries ranked on the five
cultural dimensions he studied:
 Power distance – the degree to which a society
accepts or rejects the unequal distribution of
power among people in organizations and the
institutions of society.
 Uncertainty Avoidance – the degree to which
society is uncomfortable with risk, change, and
situational uncertainty.
 Individualism – Collectivism – the degree to which
a society emphasizes individual accomplishments
versus collective accomplishments.
 Masculinity – Feminity – the degree to which a
society values assertiveness and feelings of
material success versus concern for relationships.
 Time orientation – the degree to which a society
emphasizes short-term thinking versus greater
concern for the future or long-term thinking.
 The local culture of a particular
country also influences the
management practices of firms. An
example is the mañana habit which is
part of local Filipino culture and
practiced by some Filipino workers.
 Managing in a Worldwide
Environment: Cultural, Politico
legal, and Economic Environments
 Thecall for businesses to go global is
hard to resist as this is the trend
prevailing in the 21st century. The
economic and social benefits that
come with globalization are said to be
among the positive outcomes.
LESSON 3

Phases of Economic
Development
 Although material wealth accumulation is among
the concerns of genuine economic development,
its greater concern is the total improvement of
the quality of people’s lives.
 Sustainable economic development ensures that
the present needs of a particular generation are
met in full without endangering the ability of
future generations to also fully meet their own
needs.
 The MDGs, according to the UN, are “the
world’s time-bound and quantified targets
for addressing extreme poverty in its many
dimensions – income poverty, hunger,
disease, lack of adequate shelter, and
exclusion – while promoting gender
equality, education, and environmental
stability”. The deadline for the fulfillment
of the MDGs was set for 2015.
The following are the MDGs:
1. Eradicate extreme hunger and poverty
2. Achieve universal primary education
3. Promote gender equality and empower women
4. Reduce child mortality
5. Improve maternal health
6. Combat HIV/AIDS, Malaria, and other diseases
7. Ensure environmental sustainability
8. Develop a global partnership for development
Meanwhile, the National Economic and Development Authority (NEDA) has laid
out the Philippine Development Plan (PDP) 2011-2016, which “adopts a
framework of inclusive growth, which is high growth that is sustained, generates
mass employment, and reduces poverty”. The PDP is focused on the following
areas:
1. In Pursuit of Inclusive Policy
2. Macroeconomic Policy
3. Competitive Industry and Services Sectors
4. Competitive and Sustainable Agriculture and Fisheries Sector
5. Accelerating Infrastructure Development
6. Towards a Resilient and Inclusive Financial Sector
7. Good Governance and the Rule of Law
8. Social Development
9. Peace and Security
10. Conservation, Protection, and Rehabilitation of the Environment and Natural
Resources
LESSON 4

FORMS OF BUSINESS
ORGANIZATIONS
 Forms of Business Organizations
 The form of a business organization
takes may depend on the purpose,
nature of operations, and resources of
the company.
 Changing Forms of Business Organizations

 Change is constant and organizations continue to undergo

various changes in form to ensure effectiveness,
efficiency, and relevance in the world of business.

 Business organizations may be traditional (simple,

functional, divisional, profit, or nonprofit) or
open/flexible in form.
 Simple business organizations – business organizations with
few departments, centralized authority with wide span of
control, and with few formal rules and regulations

 Functional business organizations – business organizations

that group together those with similar or related
specialized duties that introduce the concept of
delegation of authority to functional managers like the
personnel manager, sales manager, or financial manager
but allow CEOs to retain authority for strategic decisions.
 Divisional business organizations – business
organizations made up of separate business units
that are semi-autonomous or semi-independent,
with a division head responsible for his or her
unit’s performance.

 Profit business organizations – business
organizations designed for the purpose of
achieving their organization’s mission, vision,
goals, and objectives and maintaining their
organizational stability through income
generation and profit-making activities.
 Nonprofit organizations – business organizations
designed for purpose of achieving their
organization’s mission, vision, goals, and
objectives, providing service to clients without
expecting monetary gains or financial benefits for
their endeavors.

 Open/Flexible business organizations - formed
meet today’s changing work environment.
These affect and affected by the environment and change,
therefore, becomes inevitable; other forms that emerged
under this from are:

1. Team structures – where the organization as a whole is made up of

work teams (small, but focused) that work together to achieve the
organization’s purpose; popular in collectivist culture.
2. Matrix Business organizations – those which assign experts or
specialists belonging to dofferent departments to work together on
one or more projects; exhibit dual reporting relationships in which
managers’ report to two superiors – the functional manager and the
divisional manager.
3. Project business structure – a business organizational form with a
flexible design, where the employees continuously work on projects
assigned to them; projects may be short-term or long-term and
members disband when the project is completed.
4) Boundary less business organizations – a business
organization whose design eliminates vertical,
horizontal, or external boundaries, and is
described to flexible and unstructured; there are
no barriers to information flow and, therefore,
completion of work is fast.
5) Virtual business organization – made up of small
group of full-time workers and outside experts
who are hired on a temporary basis of work on
assigned projects; members are physically
dispersed and usually communicate electronically.
End of chapter 2
Chapter 3

PLANNING
 Definition and Nature of Planning

 Planning is the first management function and for

good reason. It is a crucial and essential part of
management. Planning is important for the
following reasons:
 Planning provides direction to all of the organization’s
human resources – both managers as well as employees.
 Planning is important because it reduces uncertainty; it
compels managers to consider future events that may
affect their company.
 Minimizing of wastes will result if there is proper
coordination of activities due to planning; negative
practices, ineffectiveness, and inefficiencies could be
easily detected and can be corrected or eliminated.
 Establishing goals and standards during planning may be
used for controlling, another necessary managerial
function.
Relationship of Planning to Individual or
Organizational Performance
 Is there a clear relationship between planning and
performance? Although numerous researchers
have shown a generally positive relationship
between planning and performance, it would not
be advisable, however, to judge that
organizations or individuals who formally plan
have better performance compared to those who
do not plan.
Difference between Goals and Plans

 Goals are the targets or desired ends

that management wants to reach,
while plans are the actions or means
that administrators/managers intend
to use to achieve organizational goals.
LESSON 2

 Types of Plans
 Organizational plans can be generally
described in terms of comprehensive,
length of time covered or time frame,
specificity, and frequency of use.
 Comprehensiveness refers to the completeness of
planning coverage.
 Specificity refers to very detailed, clearly defined
plans wherein objectives are clearly stated and
could easily be understood.
 Frequency of use refers to the number of times or
instances a plan may be used.
Planning Types include the following:
1. Strategic Plans – plans that establish the organization’s
overall goals & apply to the entire firm; they are broad I
scope and are the responsibility of the CEO, president,
and general manager of the company.
2. Operational Plans – plans that apply to a particular unit
area only; their scope is narrow; achievement of company
goals may not be achieved if operational plans are not
clear.
3. Long-term Plans – plans that go beyond three years;
everyone must understand the organization’s long-term
plans to avoid confusion that may divert the organization
members attention.
4. Short-term Plans – plans that cover one year or less; such
plans must lead toward the attainment of long-term goals
and are the responsibility of the unit/department heads.
5. Directional Plans – plans that are flexible or give general
guidelines only; although flexible and general, these plans
must still be related to the strategic plan.
6. Specific Plans – plans that are clearly stated & which have
no room for interpretation; language used must be very
understandable.
7. Single-use Plans – plans used or stated once only as this
applies to the entire organization; refer to the strategic
plans of the firm.
8. Standing Plans – plans that are ongoing; provide guidance
for different activities done repeatedly; refer to the
identified activities of operational plans.
Steps in Planning

 Planning is a process and, such as, involves steps-

from carrying out in purpose, setting of
goals/objectives, and determining what should be
done to accomplish them. Schermerhorn (2008)
gave five steps in the planning process:
 Define your goals/objectives by identifying desired outcome/results in
very specific ways.
 Determine where you stand in relation to get goals/objectives; know
your strengths and weaknesses.
 Develop premises regarding future conditions; anticipate future
events, generate alternative “scenarios” for what may happen;
identify for each scenario things that may help or hinder progress
toward your goals/objectives;
 Analyze and choose among action alternatives; list and carefully
evaluate possible actions and choose the alternative most likely to
accomplish goals/objectives
 Implement the plan and evaluate results; take corrective actions and
revise plans as needed.
LESSON 3

 Planning at Different Levels in the Firm

 Top-level Management Planning
 (Strategic Planning)
 Strategic Planning starts with defining the
organizations goals/objectives, the major targets
related to the maintenance of the organizations
stability & its organizational culture, values, &
growth improving the productivity, profitability,
effectiveness, & efficiency, among others.
 Middle-level Management Planning
 (Tactical Planning)

 Tactical planning refers to a set of procedures for

changing or transforming broad strategic goals &
plans into specific goals & plans that are
applicable and needed in one unit/portion of the
organization.
 Frontline lower-level Management Planning
 (Operational Planning)

 Operational planning involves identifying the

specific procedures & processes required at the
lower levels of the organization.
LESSON 4

Planning Techniques and Tools and

their Applications
 Forecasting is an attempt to predict what
may happen in the future.
 Contingency Plans must be prepared by
managers, ready for implementation when
things do not turn out as they should be.
 Meanwhile, planning for future states of
affairs is a long-term version of contingency
planning known as scenario planning.
 Benchmarking is another planning
technique that generally involves external
comparisons of a company’s practices and
technologies with those of other
companies.
LESSON 5

Decision-making
 Types of Decisions
 A decision is a choice among possible
alternative actions, like planning decision-
making is a challenge & requires careful
consideration for both types of decisions
namely:
 Structured or programmed decision – a
decision that is repetitive & can be handled
by using a routine approach.
 Unstructured or non-programmed decisions
– applied to the resolution of problems that
are new or unusual, and for w/c
information is incomplete.
 Types of Decision-making Conditions
 Certaintyconditions – ideal conditions in
deciding problems; these are situations in
w/c a manager can make precise decisions
because the results of all alternatives are
known.
 Risk or uncertainty conditions – a more common
condition in deciding problems.
 Risk or uncertainty conditions Compel the
decision maker to do estimates regarding the
possible occurrence of certain outcomes that may
affect his or her chosen solution to a problem.
End of chapter 3