Organization and Management

Module 1-4
Management – is a process of planning, organizing, leading, and controlling resources to achieve specific objectives.
 Coordinating work activities so that they are completed efficiently and effectively with and through other people.
Efficiency: getting the most output from the least input
Effectiveness: completing activities so that the organization’s goals are attained.
Functions of management:
Planning – a prerequisite of doing anything
- It involves determining objectives to be achieved and how they are going to achieve them.
- It is a mental effort by which managers anticipate the possible causes that may affect or change the activities of
an organizations
Organizing – can be viewed as a bridge connecting the conceptual ideas developed in planning
- It is the process of bringing together physical, financial, and human resources and developing productive
relationship amongst them for achievement of organizational goals.
Staffing – its main purpose is to hire the right people for the right jobs to achieve the objectives of the organization
Directing/Leading – involves guiding and leading the subordinates.
Controlling – is the process of checking whether or not proper progress is being made towards the objectives and goals and
acting if necessary to correct any deviation.

What is Organization?
Organization is defined as a social setting composed of several groups of people who bond and work together to
achieve a common purpose.
Types of Organization:
I. Government Organization - Aim to provide specific services to the general public related to improvement of lives and
protection of liberties. Government organizations may be in the form of national government agencies or local
government units (LGUs).

• National government agencies are mandated by law to perform specific duties and responsibilities and provide
services for people nationwide.
• Local Government units (LGUS) are also mandated by law to perform specific duties and provide services but only
for people within their respective areas of jurisdiction and responsibilities.

II. Private Organizations

Business Associations:
- promote the interests of the industry players
Business associations in the philippines
• Philippine chamber of commerce (picc)
• Management associations of the Philippines (map)
• Makati business club
Business Enterprises:
• Earn profits
• Provide products or services to specific target markets
• Develop capacities potentials of employees
• Help improve lives in outside communities
Single Proprietorship - Owned and managed by an individual
Partnership - Owned and managed by two or more individuals and share their profits
and liabilities respectively
Limited partnership - legal business organization is owned by two or more persons with limited liabilities
in case of a financial loss
Corporation - Ownership by many individuals or groups and other corporations through shares of stock
Cooperatives – ownership via equal shares among members
II. Non-Governmental Organizations (NGOs)
• Provide specific services to target beneficiaries
• Advocate a specific cause or raise an issue to promote public awareness and support
The Nature of Organizations as Open System
System – pertains to interrelated parts working as a whole to achieve a purpose.
Open System – implies a borderless nature of organization in relation with its environment.
THEORIES OF MANAGEMENT
Classical Theory – look at management mainly from a “rational” perspective that assumes there is “one best way” to do
things.
1. Douglas McGregor’s Theory X and Theory Y
 Theory X assumes that employees inherently dislike work and therefore, they need to be closely
controlled and supervised. A Theory X manager adopts an authoritative style of management and does not believe
that individuals are capable of developing themselves.
Theory Y assumes that employees find work as naturally satisfying and as such, they exercise work
discipline and can be left on their own with less supervision. A Theory Y manager adopts a participative style of
management and believes that people can be trusted and are capable of seeking their own development.

2. Frederick Taylor’s Scientific management

 Emphasis on scientific determination in finding the “one best way” for workers to fulfill the jobs assigned
to them
 involves careful and proper procedures for recruitment and selection of workers
3. Henri Fayol’s 14 principles of Management
 Division of work  Subordination of  Equity
 Authority individual interests  Stability of tenure of
 Discipline  Remuneration personnel
 Unity of command  Centralization  Initiative
 Unity of direction  Scalar chain  Esprit de corps
 Order
Behavioral Management Theories – “human relations” view to management
4. Max Weber’s Theory of Bureaucracy
Characterized by structuring an organization into an hierarchy and having clearly defined rules to help
govern an organization and its members
Modern management Theories – modern management involves several views and techniques.
Today’s organizations are viewed as “open systems” that interact with the environment to transform
inputs into outputs.
5. Peter Drucker – Father of Modern management theory
Knowledge management: importance of intellectual capital to competitive advantage.
Manager – is the one who is mainly responsible and accountable for accomplishing the specific goal or objectives of a
particular group or several groups.
A manager, is the leader of a group (or groups) in the organization where he or she belongs.
Roles of a manager
 Interpersonal roles – A manager, as figurehead, is a role model for the members of the organization. As a leader,
he or she provides direction to the activities and outputs of his or her subordinates. As a liaison, he or she
coordinates the activities of his or her members with the activities of other groups within the organization.
 Informational roles – A manager also serves the role of a monitor who is responsible for gathering relevant
information and tracking what is happening inside and outside the organization. Alongside being a monitor, the
manager also acts as disseminator who shares with the member’s relevant information that he or she gathers for
the improvement of the organization. He or she is also a spokesperson who acts as the official communicator for
the organization.
 Decisional roles – A manager is an entrepreneur who develops new opportunities for the business. At the same
time, he or she is also a disturbance handler who resolves conflicts among member; a resource allocator who
allocates funds and distributes resources for effective use; and a negotiator who makes effective agreements with
various parties.

Skills of a Manager
Skill is the ability to perform a specific task to achieve the desired results.
 Technical skills – This pertains to abilities or expertise to do the job required. For instance, a marketing officer has
to know how to analyze customers and to satisfy their needs.
 Human skills – This pertains to interpersonal skills or the ability to work well with other people. This skill is
essential in handling and addressing individual differences and challenging tasks required among members.
 Conceptual skills – This pertains to the ability to think critically and analytically. Conceptual skills are characterized
with the ability to see the big picture of things, understand their interrelationships, and analyze the causes and
implications of actions or situations.
Environmental Scanning – the process of assessing the internal and external operating environment of a firm to analyze
its strengths, weaknesses, opportunities, and threats (SWOT Analysis). To formulate strategies for the firm, a manager
needs to conduct environmental scanning.
External analysis examines the opportunities and threats in the firm based on the different forces in the
environment (PEST). It also includes analysis of the competitive forces in specific industry where the firm belongs, such as
competitors, buyers/customers), suppliers, and substitutes for the firm’s product or service.
 Internal analysis examines the strengths and weaknesses of the conditions inside the firm, such as skills and
competencies of employees, capacities of resources, organizational culture, and team spirit.
PEST – various forces in the macro environment that affect a firm.
Political-legal forces in the environment pertain to legal regulations, political orientations, government policies,
and compliance procedures of government bodies that affect or control the operations of a firm.
Economic forces include employment rates, income levels, inflation rates, savings and investment rates, insurance
rates, and monetary policies.
Sociocultural forces are people’s characteristics and lifestyles that impinge on the operations of a firm. They
pertain to social norms, customs, and values.
Technological forces recent advancements in technology have led to great strides in product innovations, process
improvements, and integrated systems in manufacturing and service sectors.