I. MANAGERS AND DEVELOPMENT a.

Monitor Role
A. Definitions of Management
 To design and maintain an internal
environment in which people working
together in groups can perform effectively
and efficiently towards the attainment of
group goals
 Success or failure of organizations depend
not only on the efficiency with which it
performs its internal activities but also on
how well it anticipates changes in its
external environment, and adapts its
objectives, activities, and outputs to the
requirements of that environment
 Management- direction and coordination of
the human and nonhuman resources of an
organization to achieve outputs which meet
the needs of external users
 Top managers- responsibility of relating the
entire organization to its external clientele
 Managers of sections or subunits – relate
the activities of their units either to external
clientele or to other units of the
organization which utilize the outputs of
their units
B. Managers
 Persons responsible for directing activities
of other people
 A person who has responsibility for the
activites of other people in an organization
C. The Tasks of a Manager
Traditional View – Koontz O’ Donnell
Process Approach
i. Planning
ii. Organizing
iii. Staffing
iv. Directing
v. Controlling
Contemporary View – Henry Mintzberg
i. Interpersonal Roles
a. The Figurehead Role
b. Leadership Role
c. Liaison Role
ii. Informational Roles
b. Disseminator Role
c. Spokesperson Role
iii. Decisional Roles
a. Entrepreneurial Role
b. Problem Solver
c. Resources Allocator
d. Negotiator
D. The Skills of a Manager (Management Skills)
i. Interpersonal Skills
ii. Technical Skills
iii. Conceptual Skills
E. Different Types of Managers
Important Differences in:
i. Objectives
ii. Environments
iii. Resources of these institutions which
influence the methods used in managerial
functions
F. Business Managers and their Responsibilities
Central Character – Resources of the firm are
used to generate a surplus or profit
Capitalist Systems, maximization of stockholder
or owner wealth. Other argue that for private, it
is the only responsibility of managers
Adam Smith’s Invisible Hand – allowing
business enterprises to pursue private gain or
profit, ensuing competition, serving society’s
interest at lowest possible cost
Responsibilities to ff. parties:
 Customers
 Empolyees and laborers
 Suppliers
Bishops-Businessmen’s Conference (BBC) –
Social Responsibility (responsible corporate
citizens)
G. How Business Managers are Trained
US and Ph – trained in business schools
H. Entrepreneurs and Development
Definitions of Entrepreneurship - Traditional
Definition
i. Entrepreneur as the founder of an
enterprise
 ii. As a risk taker
iii. As an innovator
I. Business Management and Entrepreneurship
Economic function of entrepreneurs as against
to business managers
Entrepreneurs – create wealth through
successful commercial innovation
Managers – administer it through more
efficient allocation of company resources
Research and Development
Increased Dynamism led to the failure of
companies
Corporate Entrepreneurship or Intrapreneuring
(creating entrepreneurial innovations within an
established firm or corporation) and new
organizational arrangements and reward
systems encourage managers and employees to
pursue innovative ideas within the firm.
II. THE FIRM AND ITS ENVIRONMENT
Environment of a firm – sum of all the elements
and forces present in its immediate and remote
surroundings which have a potential impact on
its ability to achieve its objectives
A. Aspects of the Firm’s Environment
i. Economic Aspects
ii. Legal-Political Aspects
iii. Technological Aspects
iv. Socio-Cultural and Demographic Aspects
B. Immediate and Remote Environments
i. Industry Environment – in which the firm
operates, most immediate environment
a. Customers
b. Competitors
c. Suppliers
d. Other Entities
ii. Country Environment – less direct impact
National Environment
Philippine Economy
 Low per capita income of the
population
 Preponderance of agricultural and
services, vis-à-vis as a source of
employment – BPO
 Economy – dualistic (p. 51)
 High inflation rates
 Other characteristics
o Limited Markets
o High Import Dependence
o Limited Sources of Financing
o High Technological Dependence
on Industrialized Countries
iii. Global Environment – most remote
environment of the firm
C. Analyzing Foreign Country Business
Environment
D. The Impact of the Firm on its Environment
III.
PLANNING
A. General Rationale for Planning
B. Planning and the Management Process
C. Planning at Different Levels in the Firm
D. An Illustrative Planning Process
E. Formal Planning systems in Business
Organizations
F. Types of Plans
G. Tools for Business Planning and Decision
Making
H. Management by Objectives
IV. ISSUES IN PLANNING
A. The Benefits of Planning
 Planning does not guarantee success
 Environmental uncertainty, best plans can
go awry
 Failures in planning: less to do with the
uncertainty of the environment than with
quality of implementation
a. Lack of commitment and support for
the plan from the top
b. Lack of understanding or commitment
from lower level managers
 Plans will not guarantee success if
functional strategies developed are not
supportive of overall company goals or
objectives
 Failures in planning should not however
obscure its potential benefits
  Planning provides: ii. Phased Implementation
o Guidance on the overall directions iii. Leasing or Subcontracting
of the firm iv. Multi-Purpose Facilities
o Contributes to greater consistency F. Planning in Small Enterprises
and efficiency Owner-Manager
o Enables business to prepare for the
Lack of planning knowledge is also a major
future and to develop a competitive
handicap among many small businessmen.
advantage over its rivals The use of sophisticated planning methods or
B. The Costs of Planning formal planning process is not essential to good
Weigh all costs against the expected planning.
benefits One should not put more weight on form over
 Salaries of planning personnel substance.
 Training costs
 Time and effort spent by top management V. ORGANIZING
 Cost of planning information A. Formal Organization Structures
C. Who Should Plan? B. The Value of Formal Organization Structures
i. Top-Down Planning C. Hierarchies in an Organization
Top Management – role in initiating and D. Span of Control
shaping the basic plans E. The Dimensions of Structure
Rationale: (1) power to commit resources, F. Grouping Activities in an Organization
and (2) accountable for overall company G. Changing the Structure of an Organization
performance H. Formal Relationships in Organizations
Advantage: certainty of support from top I. Coordinating Activities
managers J. Classical Principles of Organization
Disadvantage: (1) plan is unrealistic, and (2)
generates no commitment from VI. ISSUES IN ORGANIZING
implementers at lower lever A. Theory of Bureaucracy
ii. Bottom-Up Planning B. Criticisms of Bureaucracy
Lower/Middle Level Managers C. Specialization
Disadvantages: (1) parochial perspectives D. Centralization
and, (2) when plans are revised, lower level E. Formal Hierarchies
managers may become frustrated F. Standardization
iii. Top-Down and Bottom-Up G. Contingency Theories of Organization
Participation by both H. Configuration Theory
Facilitates communication I. Business Reengineering
The understanding of company goals or
objectives motivates the key organization
personnel to be committed to the plan.
Disadvantage: time consuming
Peter Drucker: delay may be offset by the
speed and quality of implementation
D. The Planning Horizon
E. Planning and Flexibility
i. Contingency Planning