ORGANIZATION & MANAGEMENT

ABM 2: GR 11
CHAPTER 1: INTRODUCTION

 What is an “organization”?

An organization is a “group of people working together to achieve a

common goal, objective, purpose.”

Organizations can be profit-making (like most businesses, these exist to make

a profit) or non-profit making (like NGOs, these do not exist to make a profit).

Organizations can also be religious (YFC), environmental (WWF), political

(UNICEF), or economical (OECD).

 What is “management”?

Management is a series of activities or processes performed to achieve goals

efficiently and effectively. These are called the “functions” of management
and they are the following:

1. Planning: delivering strategic value through choosing appropriate goals

and determining courses of actions to be taken.
2. Organizing: building a dynamic organization through assigning
responsibilities and authority to individuals or groups in establishments.
3. Leading: directing, motivating and mobilizing people through influencing
and guiding them to act in desired ways.
4. Controlling: learning and changing to ensure that plans are implemented
accordingly through monitoring the distribution and use of resources.
5. Staffing: ensuring that the organization has the right number and type of
people needed to achieve goals.

Management applies to any kind of organization.

 Competitive/Comparative advantage

Competitive or comparative advantage involves strategies and techniques

performed to make organizations better than the rest (rivals or competitors)
in the industry. Competitive advantage can be achieved through the
following areas:

1. Cost: how much an organization spends in order to produce goods and

services.
2. Innovation: the introduction of new goods and services.

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 3. Quality: the ability of a product or service to meet/satisfy customer wants
and needs.
4. Speed: the quickness or efficiency in delivering the product or performing
a particular task.
5. Service: an intrinsic requirement for all customers (customer service).

 Management Levels: Chain of Command

1. Frontline managers = Operational managers, supervisors

2. Middle-level managers
3. Top-level managers = Senior executives, CEOs, COOS

 Roles of a Manager

Henry Mintzberg proposed ten (10) managerial roles which can be

categorized into three (3):

Interpersonal Management Roles

symbol of the organization attends ceremonial duties and
1. Figurehead
is responsible for all actions taken in the organization
leads the organization and inspires and motivates
2. Leader
employees
associates not only with the supervisors and subordinates
3. Liaison within the organization but also with peers and people
outside the organization
Information Management Roles
scans the environment within and outside the organization
4. Monitor
to collect information
shares information that is collected to the relevant units in
5. Disseminator
the organization
6. Spokesman speaks for the entire organization, unit or department.
Decision-Making Roles
acts in ways that improves the unit, department or
7. Entrepreneur
organization and adapts to changing conditions
negotiates constantly with suppliers, customers, other
8. Negotiator
managers, representatives, etc.
9. Disturbance reconciles conflicts of interests and creates harmony in the
Handler organization
10. Resource decides how resources will be distributed among the
Allocator different units or departments

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 Responsibilities of a Manager

1. Responsibility to the Community (provide clean and safe environment

and avoid pollution, etc.)
2. Responsibility to the Employees (provide wages and salaries, safe
environment and good working conditions, etc.)
3. Responsibility to the Shareholders (payment of dividends, good overall
performance, etc.)
4. Responsibility to the Government (payment of taxes, providing
employment, following rules and regulations, etc.)
5. Responsibility to the Customers (provide safe and quality goods and
services, avoid misleading advertisements, attend to customer
complaints, etc.)

 Skills of a Manager

A manager must have skills in order to perform his/her tasks well

1. Technical skills = knowledge of and proficiency in activities involving

methods, procedures and processes.
2. Human skills = abilities on how to work with people. Examples include
communication skills, leadership, interpersonal skills, etc.
3. Conceptual skills = ability to see the bigger picture with the end in mind.
4. Design skills = ability to solve problems in ways that will benefit the entire
organization.

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