Management

Organizing
t is the process of grouping together of man and establishing relationship among
them, defining the authority and responsibility of personnel by using the
company’s other basic resources to attain predetermined goals and objectives.
It has been proven that the weakness in the organization is a positive sign
because it induces the people to attain teamwork, since they know that there
should be cooperation to accomplish something.
Subsequently, those people could work together more effectively if they know the
roles relate to one another. This is possible in business or government as it is
in basketball or volleyball.
The design and structure and improvements of these systems of roles are basically
the managerial function of organizing.
Organizing is a broad term that can be interpreted differently by many management
theorists. Some believe it includes the behavior of all the of all members of the
group. Others say it is the total system of social; and cultural relationships.
Generally mean a formalized design of intentional structures, roles, and
positions.
Organizing as Process
Organizing as a process should consider several factors or fundamentals. First,
the structure must reflect objectives and plans because activities of the
organization are based on them. Second, the structure must reflect authority
given to top and middle management. Third, organization structure, like any other
plan, should reflect their external environment.
The organization establishes structure in order to permit contributions by members
of the group, and to help people gain objectives efficiently and effectively in a
changing future. In this case, a sound organization structure can never be either
mechanistic or static. Thus, there is no single best organization structure for
various operations.
Fourth, the organization must be manned of activities, and the authority of an
organization structure and must consider the people’s limitations, customs and
traditions.
This does not mean that the structure must be based around the individuals instead
of around the goals and supporting activities.
This is similar to engineers who consider performance – strengths and weaknesses
of materials in their projects, and the organizers who consider their materials –
people.
The Nature and Development of Organization
What is an organization?
– The term “organization” has several definitions. One (webster’s) is the
“executive structure of a business.” this defintion indicates that organization is
the framework or backbone by which the work of a business, managerial or
otherwise, is performed, that it provides the required channels, points of origin,
and flow of management direction and control.
“organization” also conotes a creative process. All the parts of a business not
come into existence spontaneously.
The term organization is sometimes used to mean the total business organization,
including facilities, materials, money and man power.
This final definition refers to the term “concept” to which a member is assigned
specific duties and under the term of which all employees work effectively
together within a framework of superior and subordinate relationship.
Types of Organization Structures
Line Organization
– This is the simplest form of structure and refers to a direct straight-line
responsibility and control from the top management to the middle management and to
the lower level.
– It acquired this name because there are direct single lines of authority and
responsibility between the manager and his subordinates. It is the oldest from of
organization structure based on the classical principle of scalar chain.
– In this form of structure, authority passes responsibility directly to his
immediate superior.
Line and Staff Organization
This utilizes the assistance of experts or specialists. Business leaders have
recognized- as their companies expand from simple to complex organizations- that a
small number of managers could not personally assume direct responsibility for all
functions, such as research, planning, distribution, public relations, industrial
relations, and many other activities of business.
Functional Organization
It utilizes the pure services of experts or specialists. The development of staff
departments and positions led quite naturally to attempt complete reorganization
on a functional basis
This removed the staff specialists from his assisting capacity and gave him the
pure authority and responsibility for supervision and administration of the
function, replacing the operating foreman.
COMMITTEES
Another common organization form used in situations where group participation and
decisions are required. Two types of thinking seem to be common when it comes to
the use of the committee form of organization.
On one side, the committee approach has been taken for granted and committees are
automatically set-up without even considering the purpose and the need for such
committees.
On the other side, managers are totally reluctant to use committees because of
fear of diverse opinions.
These are created to undertake special activities rather than routinary
activities. Any manager or supervisor has the right to form a committee if it is
needed by his department or company. In order to facilitate a cooperative
relationship within a large industrial enterprise, many companies add a network of
committees to the line and staff organization.
Organization Chart
An organization chart is a diagram or drawing showing the important aspects of an
organizational structure. It shows the relationship among positions as to
authority, responsibility and accountability, and the people who occupy them. As
defined by George Terry:
– An organization chart is a diagrammatical form which shows important
aspects of an organization including the major functions and their respective
relationships, the channels of supervision, and the relative authority of each
employee who is in charge of each function.
Purpose of an Organization chart
An organization chart assist one to view the firm’s structure as a whole. It shows
the principal division and lines of formal authority and responsibility.
It assists management to divide the different duties or functions in the business
establishment so that they will be performed effectively and efficiently.
Types of Organization Chart
Master Chart Or Chart of Authority
The master chart shows the entire organizational structure. It is a master plan of
the principal departments, with lines of authority and responsibility and the
mutual relationships of all departments and major components.
Functional Chart
The functional chart shows at a glance the functions and activities of the
positions/or departments. It shows the major responsibilities of departments or
positions. Listed below each job title are brief statements of responsibilities.
Personnel Chart
The personnel chart shows the departments in the same relative manner as the
functional chart. But instead of listing the functions, the titles of the
positions of the names of persons are indicated. The chart also shows the class
titles of all positions in the department together their locations in the
organization.
Reorganization
It is the process by which an existing organization undergoes changes in the size
and shape of the organization structure. The change may range from simple to
complex.
Departmentation
Results from the grouping of work , the desire to obtain organization units of
manageable size, and to utilize managerial ability. An organization structure and
design are shaped significantly by the departmentation followed.
Results of Good Organization
Establishing responsibility
• Providing easier communication
• Eliminating jurisdictional disputes between individuals
• Helping develop executive ability
• Aiding in measuring a person’s performance against his charge and
responsibilities
• Aiding in equitable distribution of work, functions, and/ or personnel
supervision
• Permitting expansion and contraction without seriously disrupting the
structure
• Affording movement in the direction of the ideal organization, in times of
change
• Establishing closer cooperation and higher morale
• Delineating avenues of promotion
• Making growth possible with adequate control and without literally killing
top executives through overwork
• Aiding in wage and salary administration through forced job analysis and
description

STAFFING
It is the process of recruiting, selecting and training of men. It means
putting the right men on the right jobs. The managerial function of staffing
involves manning the organizational structure through proper and effective
evaluation, selection and development of people to perform the roles.
Staffing is not part of organizing for the following reason:
1. The actual recruitment and selection of organization positions include
procedures not usually discussed in the function of organizing.
2. All managers are responsible in the recruitment, selection and training of
men within their respective departments and have too often overlooked the
essential nature of their responsibility that should not be assigned only to the
personnel manager.
3. Staffing has developed into relevant and important part of knowledge and
practice in management.
Nature of Staffing
All business organizations should focus their attention and be concerned
about the effectiveness and efficiency of their employees especially their
managers. The function of staffing has to do with manning an organization
structure so that it can completely operate in the present and the future. This
function must be considered as part and parcel of the whole system of management.
The staffing function includes the determination of manpower needs, the discovery
of persons to fill these needs, their recruitment and employment, their placement
and orientation and the rearrangement of team members through promotion and
transfers. Every manager, including the chairmen of the board of the company, must
handle some phases of staffing, even though the personnel department may provide
technical help. The degree of importance given to the staffing function depends
upon the size of the organization. In small organizations, the chairman of the
board of the company performs this function.
RECRUITMENT
 It is the process of encouraging, inducing or influencing applicants to
apply for a certain vacant position. Whenever there are vacancies, it is necessary
to find a person to fill those vacancies. Some organizations do not wait until the
vacancy arises, but they anticipate such vacancies and new opening in the short
and long run and thus plan for the future needs. This approach gives more time to
recruiting and also increases its effectiveness. The results obtained from
recruiting, selecting, placing, training, developing and motivating employees,
depend directly upon the effectiveness of the planning and forecasting phases of
employment development.
Steps in recruitment
Step One - Studying the Different Jobs in the Company and writing Job Descriptions
and Specifications (Job Analysis)
Job description defines the duties and responsibilities of a particular
position. A description of the duties and responsibilities attached to the job
enables the employment officer to determine the special qualification which an
individual must possess in order to do the job successfully. Job specification
gives the specific qualifications required for the position, such as the
following: amount and type of experience needed to perform the job, special
training, skill and physical demands, special abilities and aptitudes, age,
physical qualifications and other requirements.
Step Two – Requisition of New employee
To inform the personnel department, the line supervisor or the department
head concerned should accomplish a formal requisition form, indicating the
position to be filled, the date when the new employee will be needed, his pay
rate, the required qualifications of the employee, the job description, approval
by the responsible official of the company, and other pertinent data.
Step Three – Actual Recruitment of Applicants
Recruitment is the process by which prospective applicants are induced to
apply in the company in order that their qualifications for present and
anticipated vacancies can be evaluated through sound screening and selecting
procedures. To make the selection truly discriminating there must be several
qualified applicants from whom the final choice can be made. In this manner the
chance of drawing out the most qualified applicants for the position may be more
discerning.
Sources of Labor/Applicants
1. Internal – employees recruited within the company
2. External – applicants recruited through schools, references, advertisements,
placement agencies, etc.
SELECTION
It is the process of getting the most qualified applicant from among
different job seekers.
Steps in Selection
Step One – Reception of applicants
Not all applicants are allowed to go through the entire process of
selection. Some of them are limited by means of “preliminary screening” or “sight
screening,” whereby the undesirable applicants are quickly eliminated on the basis
of rapid appraisal of their apparent characteristics, such as age, height,
physical condition, etc.
Screening is the process by which the applicants are being interviewed and
classified under two categories – those to be given examinations and further
interviews, and those who should not be considered at all. The first interview is
preliminary, and its purpose is to eliminate those applicants who are clearly
unqualified.
Step Two – Preliminary Interview
The purposes of the interview are (a) to find out how qualified the
applicant is for the vacancy; (b) to give the applicant the information he needs
in order to decide to take the job if offered to him; and (c) to create goodwill
for the company.
 No company hires an applicant without conducting an employment interview of
some kind. Some companies give more emphasis to the impressions created by the
applicant in the interview; others do not use any other tool in employee selection
except the interview. This shows the importance of the interview as a major
selection and placement tool. For his guidance, the interviewer uses the
applicant’s records of previous employment, employment tests and other background
investigation. The written comments and evaluation of the interviewer are helpful
in comparing applicants and for further reference.
Step Three – Application Form
The application form is used:
1. as guide when interviewing the applicant.
2. as basis for eliminating applicants with unfavorable personal data.
3. for matching the qualifications of the applicant with the job requirements
as indicated in the job description and job specification.
4. for checking on the applicants’ school records, references, and former
employers.
5. as part of the employee’s permanent record and for communicating with the
employee of his family.
Step Four – Employment Test
The employment officer goes over the application forms. On the basis of the
information it contains and form the impression the officer gathers at the
preliminary interview, he decides who should be called in to take employment
tests. The purpose of testing is to measure the applicant’s abilities which cannot
be gauged through interviews. They also help make an objective comparison among
applicants.
Step Five – Final Selection by immediate Supervisor or Department Head
Employment involves three decisions:
1. Management’s decision as to whom among the applicants would best fit the job
and should be hired.
2. The applicant’s decision as to whether or not the job is the right one for
him after the supervisor has discussed the job duties.
3. The supervisor must decide if the applicant is the kind of man who can be at
work with him in his team. The supervisor must look into his personality and see
if he is able to work well with the members of his team. The supervisor or heads
of the unit making the request for the new employee makes the final choice from
among the applicants who have passed screening by employment office.
Step Six – Physical and medical examination
The selected applicant is required to pass a physical and medical
examination. In small companies, the applicant may be referred to a company
physician or to a medical consultant for the medical and physical check up. In
some cases, the new employee is simply asked to present a certification from a
private physician as to health condition. Large companies, however, usually have
their own medical departments or retain the service of hospitals or clinics for
the purpose.
The purposes of physical and medical examination are:
1. To prevent contamination of contagious disease.
2. To prevent the hiring of liability employees which may result in
absenteeism, hospitalization expenses, etc.
Step Seven – Hiring
When a candidate has passed all the selection requirements and is chosen, he
is finally sent to the personnel department for the completion of the hiring
process.
Step Eight – Orientation/Induction/Indoctrination
New employees are oriented on company policies, rules and regulations, and
inducted or briefed about his job by the immediate supervisor or by the training
officer. The orientation from co-worker is usually unplanned and unofficial, and
it can provide the new employee with misleading and inaccurate information. This
is one of the reasons that it is important to have an orientation provided by the
organization. An effective orientation program has an immediate and lasting impact
on the new employee and can make the difference between a new employee’s success
or failure. Job applicants get some orientation to the organization even before
they are hired, sometimes through the organization’s reputation: how it treats
employees and the type of products or services it provides. Also during the
selection process, applicants often see other general aspects of an organization
and what their duties, working conditions and pay will be.
TRAINING
Training, according to the Labor Code of the Philippines, is the systematic
development of the attitude/knowledge/behavior patterns for the adequate
performance of a given job or task. It is a day to day, year-round task. All
employees on a new job undergo a learning process whether or not formal training
exists. Learning to perform or be more efficient in performing a job is made
easier for employees where there is formal training. For the growth of the
individual and the organization, these activities are carried out continuously in
many organizations. Usually a separate department or unit is set up to look after
this responsibility. Generally, the new employee’s manager has primary
responsibility for training on how to perform the job. Sometimes this is delegated
to a senior employee in the department. Regardless, the quality of this initial
training can greatly influence the employee’s job attitude and productivity.
Economic, social, technological and governmental changes also influence the skills
needed in an organization. Changes in these areas can make current skills obsolete
in a short time. Also, planned organizational changes and expansion can make it
necessary for employees to update their skills or apply new ones.
Identifying Training Needs
Trainings must be aimed at the accomplishment of some organizational goals,
such as more efficient production methods, improved quality product/services, or
reduced operating costs. An organization should only commit its resources to
training that can help in achieving its objectives. Deciding on specific training
activities in an organization requires a systematic and accurate analysis of
training needs. There are many methods that can be used to determine an
organization’s training needs. Company reports and records provide clues to
internal trouble spots. Records on absenteeism, turnover, tardiness and accident
rates provide objective evidence of problems. Because this type of information and
interruption of the work flow. Interviews with employees, questionnaires, and
group discussions can also be used to locate training needs. Personal observations
of work being performed can also give insight into performance problems that may
be corrected through training.
COMMON TYPES OF TRAINING
1. On-the-Job Training and Job Rotation
On-the-Job Training (OJT) is normally given by a senior employee or supervisor.
The trainee is shown how to perform the job and allowed top do it under the
trainer’s supervision. One method of the OJT is job rotation, sometimes called
crosstraining. Under OJT, an employee learns several different jobs within a work
unit or department and performs each for a specified time period. One positive
point of job rotation is that it allows flexibility in the department. For
example, when one member of the department is absent, another can perform the job.
2. Vestibule Training
In vestibule training, procedure and equipment similar to those used in the actual
job are set up in a special working area called a vestibule. The trainee is then
taught how to perform the job by a skilled person and is able to learn a job at a
comfortable pace without the pressure of production schedules. The main advantage
of this method is that the trainer can stress theory and use of proper technique
rather than output, and the student can learn by actually doing the job. However,
this method is expensive, and the employee still must adjust to the actual
production environment. Vestibule training has been used for training typists,
word processor operators, bank tellers, clerks and other similar jobs.
3. Apprenticeship training
Apprenticeship training dates back to biblical times. It is frequently used to
train personnel in skilled trades, such as carpenters, bricklayers, electricians,
mechanics and tailors. The apprenticeship period generally lasts from one month to
one year. During this time, the trainee works under the guidance of a skilled
worker.
4. Classroom Training
Classroom training is conducted off the job and is probably the most familiar
method of training. Classroom training is an effective means of quickly getting
information to large groups with limited or no knowledge of the subject being
presented. It is useful for teaching actual material, concepts, principles and
theories. Portions of orientation programs, some aspects of apprenticeship
training and safety programs are usually presented with some form of classroom
instruction. However, classroom training is used more frequently for technical,
professional and managerial employees.
5. Programming Instruction
The increased availability and lower cost of computers have made use of programmed
instruction more attractive. Programmed instruction requires the trainee to read
material on a particular subject and then to answer questions about the subject.
If the answers are correct, the trainee moves on to new material. If the answers
are incorrect, the trainee is required to read the material and answer additional
questions. The material in programmed instruction is presented either in text form
or on computer video displays. Regardless of the type of presentation, program
instruction provides active practice, a gradual increase in difficulty over a
series of steps, immediate feedback, and an individualized rate of learning. It is
normally used to teach factual instruction.
6. Management Development Program
Management development program is a systematic process of training and growth by
which individuals gain and apply knowledge, skills, insights and attitudes to
manage work organizations effectively. There is a change in attitudes to manage
work organizations effectively. Management development needs to be planned,
systematic process that integrates the organization’s response to changing
external and internal environments with the aspirations of individuals within. The
change of attitudes and the eventual change of personality is a long process. Such
an approach must be flexible enough to accommodate any environmental change. The
increasing complexity of problems, both technological, and environmental, demands
more rigorous skills and talents from managers. The development programs must
sense this and re-structure their programs to meet new objectives and goals.
Management development is concerned with developing the attitudes and skills
necessary to become or remain an effective manager. To be successful, it must have
the full support of the organization’s top executives. Management development
should be designed, conducted and evaluated on the basis of the goals of the
organization, the needs of the managers involved, and probable changes in the
organization’s management team.

Some of the most popular methods of management development program are the
following:
Understudy Assignments
Understudy assignments are generally used to develop an employee to fill a
specific job.
Coaching
Coaching by experienced managers stresses the responsibility of all mangers
for developing subordinates. Experienced managers advise and guides trainees in
solving management problems. Coaching should allow the trainee to develop
individual approaches to management with the counsel of a more experienced person.
Experience
Development through experience is used in many organizations. Employees are
promoted into management jobs and allowed to learn on their own, from their daily
experiences. The primary advantage lies with the manager when he tries to perform
certain jobs.
Job Rotation
Job rotation is designed to give an employee broad experience in many
different areas of organization. In understudy assignments, coaching and
experience, the trainee generally receives training and development for one
particular job. In job rotation, the trainee goes from job to job within the
organization, generally remaining in each from six months a year. This technique
is often used by large organization for training recent college graduates.
Special Projects and Committee Assignments
Special projects require the employee to learn about specific subject. For
example a trainee may be told to develop a training program on safety. This would
require learning about the present internal safety policies and problems and about
the safety training done by other companies. The person must also learn to work
and relate to other employees. However – and this is critical – the special
assignment must provide a developing and learning experience for the trainee and
not just busy work. Committee assignments, similar to special projects, can be
used if the organization has standing or ad hoc committees. An employee works with
the committee on its regular duties; thus’ the person develops skills in working
with others and learns through the activities of the committee.
Lectures
With lecturing, the trainer has control and can present the material as
desired. The lecture is useful for presenting facts; however, its value in
changing attitudes and in teaching skills is somewhat limited.
Case Studies
This technique was popularized by the Harvard Business School. With this
method, sample situations are presented to the trainee to analyze. Ideally, the
case study should force the trainee to think through problems, propose solutions,
choose among them, and analyze the consequences of the decision. One primary
advantage of the case study method is that it brings a note of realism to the
instruction. However, case studies often are simpler than the real situations
faced by managers.
Role Playing
In the role playing method, trainees are required to act out assigned roles
in a realistic situation. They learn from playing the roles. The success of this
method depends on the ability of the trainees to act realistically. Videotaping
allows for review and evaluation of the exercise to improve its effectiveness.
In-Basket Technique
This technique stimulates a realistic situation. It requires the trainee to
answer one manager’s mail and telephone calls. Important duties are mixed with
routine matters. One call may come from an important customer who is angry;
another from a local civic club requesting a donation. The trainee analyzes the
situation and suggests possible actions.
Business Management Games
Business games generally provide a setting of a company and its environment
and require a team of players to make operating decisions. Business games also
normally require the use of computer facilities. Often, several different teams in
a business game act as companies within an industry. This method forces trainees
to work not only with other group members; they also must deal with competition
within the industry. Advantages of business games are: they simulate reality;
decisions are made in a competitive environment; feedback is provided about
decision; and decisions are made with less than complete data.
University and Professional Association Seminars
Many colleges and universities both offer credit and nom-credit courses to
help meet the management development needs of various organizations. Theses
courses range from principles of supervisions of advanced executive management
programs. Professional associations such as Philippine Council of management, also
offer a wide variety of management programs.
(wala pa po ang report nina KJ) K???? goodluck!!!

PLANNING
- Involves defining the organization’s goal, establishing an overall strategy
for achieving those goals, and developing plans for organizational working
activities.
- Concerned with both ends (what’s to be done) and means (how it’s to be
done).
Informal planning
Nothing is written down, and there is little or no sharing of goals with others in
the organization.
Formal planning
Specific goals covering a period of years are defined.
Purpose of planning
Provides direction
Reduces uncertainty by forcing managers to look ahead, anticipate change,
consider the impact of the change, and develop appropriate responses.
Minimizes waste and redundancy
Establishes the goals or standards used in controlling
Two important element of planning:
1. Goals – desired outcomes for individuals, groups, or entire organization
2. Plans – documents that outline how goals are going to be met
Types of Goals
Financial or Strategic Goals
Financial goals are related to financial performance of the organization.
Strategic goals are related to other areas of an organization
Stated or Real Goals
Stated goals official statement of what an organization says, and what it
wants its stakeholders believe, its goal are.
Real goal are goals that an organization pursue.
Types of Plans
Breadth
Strategic plans – apply to the entire organization, establish the
organization’s overall goals, and seek to position the organization in terms of
its environment
Operational plans – specify the details of how the overall goals are to be
achieve
Time frame
Long term plans – time frame is beyond 3 years
Short term plans – covering one year or less
Specificity
Specific plans – clearly defined and that leave no room for explanation
Directional plans – flexible plans that set out general guidelines
Frequency of use
Single-use plan – one time use plan specifically designed to meet the needs
of a unique situation
Standing plans – ongoing plans that provide guidance for activities
performed repeatedly

Approaches in Establishing Goals

Traditional goal setting
Goals are set at the top of the organization and then broken into subgoals
for each organizational level.
Means-end chain
The higher-level goals are connected to lower-level goals, which serve as
the means for their accomplishment.
Management by Objectives (MBO)
Process of setting mutually agreed-upon goals and using those goals to
evaluate employee performance.
Steps in a Typical MBO Program
1. The organization’s overall objectives and strategies are formulated.
2. Major objective are allocated among divisional and departmental units.
3. Unit managers collaboratively set specific objectives for their unit with
their managers.
4. Specific objective are collaboratively set with all department members.
5. Action plans, defining how are the objectives are to be achieve, are
specified and agreed upon by managers and employees.
6. The action plans are implemented.
7. Progress toward objectives is periodically reviewed, and feedback is
provided.
Four elements of MBO program
a) goal specificity
b) participative decision making
c) explicit time period
d) performance feedback
Characteristic of Well-Designed Goal
Written in terms of outcomes rather than actions
Measurable yet quantifiable
Clear as to time frame
Challenging yet attainable
Written down
Communicate to all necessary organizational members
Steps in Goal Setting
Review the organization’s mission, the purpose of an organization.
Evaluate available resources.
Determine the goals individually or with input from others.
Write down the goals and communicate them to all who need to know.
Review results and whether goals are being met.
Developing Plans
Contingency Factor in planning:
1. Level in the organization
2. Degree of environmental uncertainty
3. Length of future commitment
Approaches to Planning
In the traditional approach, planning was done entirely by top level
managers who were often assisted by formal planning department.
Another approach to planning is to involve more organizational members in
the process.
Criticism to Planning
Planning may create rigidity.
Plans can’t be developed for a dynamic environment.
Formal plans can’t replace intuition and creativity.
Planning focuses managers’ attention on today’s competition, not on
tomorrow’s survival.
Formal planning reinforces success, which may lead to failure.
Just planning isn’t enough.
Effective Planning in Dynamic Environment
o Develop plans that are specific but flexible.
o Managers must stay alert to environmental changes
o Continue formal planning efforts, even when the environment is highly
uncertain, in order to see any effect on organization performance.
o Flattening the organizational hierarchy.