Organization and Management

Module 1: Contemporary Concepts of Management & Organization

Management Concepts -How is it related to the other management
disciplines like economics, finance,
Objective: to identify the elements of management and organization accounting, manufacturing, human resources
and be able to visualize their operational application management?
1. What is the basic concept that can be derived or distilled from -What is a process? What is the advantage
of a process?
the various definitions of management? -In economics, how would you allocate
resources: guns or butter?
-What should a manager accomplish?
- Management is a process to judiciously (effective/efficient) use a. Profitability
resources/assets to accomplish an end.

2. What are the functions/process of management? -Planning prevents poor performance

because it considers its products or services,
the business environment, the capabilities of
a. Planning: the process of defining the goals and deciding the organization to establish goals and the
strategy to capitalize on its strengths to
on the tasks and resources achieve them.
a. micro environment (sw)
b. Organizing: the process of assigning tasks, grouping the company
the current competitors
tasks, and allocating resources the suppliers
the marketing intermediaries
c. Leading: the process of communicating goals and infusing the customers
the publics
employees with the desire to perform b. macro environment (OT)
competitive environment
demographic environment
d. Controlling: the process of monitoring or comparing economic environment
results versus the plan and making corrections technological environment
as needed political environment
cultural environment
-In organizing, finance counts the money,
accounting counts the money, operations
makes the product, marketing identifies the
segment for the product, sales brings in the
money, information system keeps tab of
developments and informs everyone, and
human resources makes sure the
organization has the competence
a. Breakeven analysis
-The leader supports the people, builds trust,
and shares a vision
Motivation
Communication
-Control your plan by measuring productivity
(output/input), and continuously improving
equipment, improving processes, and
improving quality

3. What are the roles of top management? In performing these roles what competence
is required from a manager:
a. Interpersonal: -Interpersonal?
-Figurehead: ceremonial duties of legal and social a. Human nature
-Needs
nature b. Versatility (direct, coach,
-Leader: direct, motivate, build relationship, train, support, delegate)
counsel, etc. c. Social graces
-Informational?
-Liaison: build and maintain network of contacts a. Economics, Social, Political
b. Informational situation
-Monitor: seek and receive information for issues and b. Internal operations
- manage your resources
developments - cost/benefit analysis
that affect the organization - economies of scale

1
 -Disseminator: forward information to others in the - centralization/decentralization
c. Communication skills
organization -Listens, paraphrase,
-Spokesperson: represents the company to the Empathizes
-Ask questions
outside world Decisional?
c. Decisional a. Risk taking
-Entrepreneur: seek opportunities (minimize risks); initiator, - What product/market
b. Awareness of policies and standards
conceptualizer, designer and champion of change and
innovation c. Financial statements/budget, cash
flow
-Disturbance handler: take corrective action during d. Breakeven analysis
disputes; resolves conflicts among subordinates e. BCG
f. BATNA
-Resource allocator: decide who gets resources, how g. PERT/CPM
much, when and where (budget) h. Decision tree
-Negotiator: represent organization i. Statistics
during negotiation of contracts

4. What are the levels of management and the appropriate
managerial skills for each level?
a. Top management – Conceptual skills
b. Middle management – Human skills
c. Lower level management – Technical skills
5. Management Levels
a. Vertical levels
-Top managers
-Middle managers
-First line managers
-Non managerial employees
b. Horizontal levels
-Functional manager: a manager responsible for a
department that performs a single functional task and has
employees with similar training and skills
-General manager: responsible for several departments
that perform different functions
-Please explain why the particular skills are
required at each level
a. Concepts: abstract ideas (justice);
identifying patterns in events; breaking down
complex situations
b. Human: communicate, motivate, lead,
and inspire enthusiasm and trust.
c. Technical; tangible; processes
What is the significance of understanding the
different levels vertically or horizontally?
-Vertical (silos) –bureaucratic control;
develops expertise; departmental efficiency
(address the needs of the organization)
-Horizontal – accountability for institutional
effectiveness (address the needs of the
customers)

6. What are the five basic operations in the work of a manager -Explain the importance of understanding the
basic operations in the work of the manager
according to Peter Drucker? -Give an illustration of how it happens in the
a. Sets objectives (where are we going?), work place as you work with an employee
b. Organizes (what is my role?),
c. Motivates/communicates (what’s in it for us/me?),
d. Measures/feedback (how am I doing?),
e. Develops (where do I go when I need help?)

7. What is the recommended thinking process for managers? -Why are you thinking?
What to change
-Always strive to balance intuitive hunches with sound logical What to change to
analysis: holistic How to cause the change
Why change
a. Rational thinking (What do you think?) How to maintain the process of
-Using knowledge, skills, and experiences change
-Applying logic to reach conclusion -How do we think?
Deductive: Theory, observation,
-Analyzing issues to understand whole picture confirmation
b. Intuitive thinking (How do you feel about it?) Inductive: observation, pattern,
theory

2
 -Coming to conclusion by hunch
-Being led by emotion and sensitivity
-Using imagination to create
8. What is the decision process?
-ID issues – what is the problem?
-Analyze issues – What are the alternatives?
-Evaluate options – What are the pros and cons?
-ID choices – Which alternative is the best?
-Implement plans – What actions need to be taken
-What kind of information should a manager
get to be able to arrive at better conclusion?
Cause and effect
-What temperament is required for intuition to
become useful?
An open mind
Meditative state of mind
Big picture and future possibilities
-What is the discrepancy compared to the
standard?
-What are the possible sources of the
problem (fishbone, process flow, Pareto
chart,
-What are the possible solutions to the key
issues?
-What are the consequences of each
alternative?
-Which one the most effective and efficient?

ORGANIZATION

Concepts of Organization
1. What are the characteristics of an organization? --How different is organizing from
organization?
- System
To unify and harmonize all the elements of work -What kind of organization?
(Operational Manual, Personnel Manual, etc.) to achieve an a. extremely flexible and adaptable
b. deliver high-quality goods and services,
objective. squeezing ever more bang out of every buck
- Two or more people: c. responsive to the customer, offering
choices of non-standardized services
Persons engaged in a systematic effort to produce goods
and services -It is a community in itself with its own culture
A collection of people and activities formed for a specific
purpose
- Structure
Hierarchy of authority, chain of command and responsibility,
and definition of particular roles and tasks
A social entity that is goal directed and deliberately
structured

9. Organizational stakeholders It is practically everyone in the community

a. Customers
b. Social and political action groups
c. Competitors
d. Trade and industry associations
e. Governments
f. Media
g. Suppliers
h. Communities
i. Shareholders
j. Unions
k. Employees

10. Differentiate goals from objectives. A manager has to produce results with the
resources that are given to him.

3
 a. Goal -Systems are put in place, people are hired
to do the job, and a structure is created to
-The desired future state that the organization attempts to facilitate the work that will produce the
realize results
-It is where the management wants the organization to go
-A future outcome or end result that an organization wishes
to achieve
-A general statement of what is to be accomplished
b. Objective
-An instrumental means to arrive where management
wants the organization to go
-A specific target to achieve a goal
-A more specific, quantifiable benchmark target.

11. Distinguish efficiency from effectiveness
a. Efficiency – doing things right (watch)
-Use of nominal resources to produce the desired volume
of output
-Use of the least resources to achieve the goals and
objectives of an organization
b. Effectiveness – doing the right things (compass)
-The degree to which the organization achieves a stated
goal
-Achieving the goals and objectives of an organization
-In departmentalization you gain proficiency
and expertise for doing the same thing over
and over again. Out of the experience of
doing things certain policies are established
to create standards against which everyone
is measured. It increases productivity and
drives down costs.
-As competition increases, it looks for ways
and means to gain or maintain customers by
understanding unfilled needs and adjusting
or creating new or substitute products and
services to fill those needs.

12. What is organizational culture? How does corporate culture develops?

- The system of shared actions, values, and beliefs that
develops within an organization and guides the behavior of
its members
- The specific collection of values (standards) and norms
(customary behavior) that are shared by people and groups
in an organization and that control the way they interact
with each other and with stakeholders outside the
organization.
- Beliefs and ideas about what kinds of goals members of an
organization should pursue and ideas about the appropriate
kinds or standards of behavior organizational members
should use to achieve these goals.
- From organizational values develop organizational norms,
guidelines, or expectations that prescribe appropriate kinds
of behavior by employees in particular situations and
control the behavior of organizational members towards
one another.

Four dimensions of culture How does corporate culture affect decision

making?
a. Power distance - Expectation that some people are expected
to wield more power than others vs. the view that people
should have equal rights
b. Uncertainty avoidance - Acceptance of uncertainty and risk
(adventurous) vs. uncertainty avoidance (conservative)
c. Individualism vs. collectivism - People stand for themselves vs.

4
 acting as a member of the group
d. Masculinity vs. femininity - Competitiveness, assertiveness,
ambition and the accumulation of wealth and material
possession vs. being collaborative, cooperativeness, harmony
and relationships

Types of organizational culture -What culture dominates your organization?

(Deal & Kennedy) -How does corporate culture affect the issues
a. Process Culture occurs in organizations where there is and options available to a manager when
making a decision?
little or no feedback. People become bogged down with
how things are done not with what is to be achieved.
This is often associated with bureaucracies. While it is
easy to criticize these cultures for being overly cautious
or bogged down in red tape, they do produce consistent
results, which are ideal in, for example, public services.

(Charles Handy)
b. Power Culture which concentrates power among a few.
Control radiates from the center like a web. Power and
influence spread out from a central figure or group.
Power derives from the top person and personal
relationships with that individual matters more than any
formal title of position. Power Cultures have few rules
and little bureaucracy; swift decisions can ensue.
c. Role Culture, people have clearly delegated authorities
within a highly defined structure. Typically, these
organizations form hierarchical bureaucracies. Power
derives from a person's position and little scope exists
for expert power. Controlled by procedures, roles
descriptions and authority definitions. Predictable and
consistent systems and procedures are highly valued.
d. Task Culture, teams are formed to solve particular
problems. Power derives from expertise as long as a
team requires expertise. These cultures often feature
the multiple reporting lines of a matrix structure. It is all
a small team approach, who are highly skilled and
specialist in their own markets of experience.
e. Person Culture exists where all individuals believe
themselves superior to the organization. Survival can
become difficult for such organizations, since the
concept of an organization suggests that a group of
like-minded individuals pursue the organizational goals.
Some professional partnerships can operate as person
cultures, because each partner brings a particular
expertise and clientele to the firm.

Robert A. Cooke
f. Constructive culture – members are encouraged to
interact with others and approach tasks in ways that
help them meet their higher-order satisfaction needs
g. Passive/defensive culture – members believe that must

5
 interact with people in ways that will not threaten their
own security.
h. Aggressive/defensive culture - members are expected
to approach tasks in forceful ways to protect their status
and security.

Quinn & Cameron

i. Clan culture- internal focus and flexible - A friendly
workplace where leaders act like father figures.
j. Adhocracy culture- external focus and flexible - A
dynamic workplace with leaders that stimulate
innovation.
k. Market culture- external focus and controlled - A
competitive workplace with leaders like hard drivers
l. Hierarchy culture- internal focus and controlled - A
structured and formalized workplace where leaders act
like coordinators.
m. Entrepreneurial culture -innovating and seizing market
opportunities are appropriate behaviors to deal with
problems of survival and prosperity, environmental
uncertainty, and competitors’ threats, and expecting
organizational members to behave accordingly.
Others
n. Risk averse – new ideas are often dismissed; the
organization is not always driven by external needs; the
emphasis within the organization is on dealing with
problems; stability and experience are the most valued
attributes of the organization; the good of the company
is put before the success of the individual; command
and control appear to be the dominant processes; it is
almost impossible to change the corporate mindset.
o. Adventurous – new and creative ideas are welcomed;
the organization focuses mainly on the needs of the
customer; the corporate emphasis is on taking
advantage of new opportunities; motivation and
innovation are among the most valued characteristics;
corporate and individual aims are largely aligned; all
staff are allowed autonomy and are able to show their
initiative; minds and policies are frequently changed
according to circumstances

Collective decision is politics: -How should a manager make decisions?

1.Use Political leverage
It is a process by which groups of people make collective a.Time the opportunity to highlight
decisions contribution
b.Ensure top management support for
difficult decisions or initiatives
What is office politics? c.Make use of suitable persons (experts,
It is resolving the diverse issues in an organization to consultants, experienced persons with right
image etc.) to put their point across
achieve objectives d.Show respect for hierarchy in spite of the
Positive politics hurdles that it may create
-give prominence to organizational goals through voluntary

6
 involvement of individuals. How do you assess the positive or negative
political climate in an organization?
-aligning individual needs with organizational goals, in such a way a.general job satisfaction levels,
that fulfillment of collective goals results in automatic fulfillment of b.responsiveness to innovative ideas,
c.efficacy of decision making machinery
individual needs also and.speed of implementation of decisions.
-build trust through values of fairness and transparency. Fair play,
justice and transparency in procedures and processes is key in
creating a progressive culture
-create clarity and unity of purpose and build synergies through
organizational values.
-identify the group which is going to support the proposals
and build a strong coalition with counter strategies backed by
overwhelming facts and reasons before the war begins thereby
pre-empting a war.
-Also crucial at these times is the choice of the persons made
responsible to fight the war (change agents or crisis management
team) and how critical support is made available
to them through subtle changes in organization structure and resource
allocation.
Negative politics
-self-serving and manipulative behavior of individuals and groups to
promote secretly their self-interests at the expense of others, and
sometimes even organizational goals as well.
-struggle for resources, winning personal conflicts,
-competition for power and leadership and tactical influence, building
personal stature, controlling access to information, building coalitions
etc.

The political climate: Culture can influence office politics

Guided Incubator Family culture Eiffel tower culture
missile culture culture
How decisions are made Autocratic Democratic Paternalistic Rules
How agenda is set Top down Majority rules Group Hierarchy
How support is mobilized Provide Support the Provide Support the
alternatives vision guarantees thinking
How teams and individuals are Results Fulfillment Benevolence; Tasks itself
inspired oriented relationships
How people are recognized They look for They look for They look for They look for
hard drivers people who people who people who are
and result are innovative are process oriented
oriented cooperative