Reporters:

March Caila Ugay BSCE-4A

Artemio Margate Jr. BSCE-4A

Chapter 1
Organization and Management
What is Organization?

Organization is a group of individuals who are cooperating willingly and effectively for a
common goal. It is the foundation of administration and to be specific, organization seeks to know who
is to do and what is to be done.
Organizations are structure to promote better management. It is the performance of the people
who fill the positions that determines the success of the enterprise and not the organizational design
itself.
A good executive may be able to secure good results with a poor organization, and a good
organization may produce results from a poor executive. But the ideal set up is, a combination of a good
organization and a good executive.
Apparently, there is no ideal organization designed to be emulate. A management structure is
only a vehicle used to attain the objectives and goals of an institution and therefore must be realistic
and responsive to the call for a change of those needs.

Structural Organization

Structural organization is the formal arrangements that are established to coordinate all
activities in order to implement a given strategy.

Structural Elements of an Organization Structures are:

1. Men – These are the different members of the organization starting from the very top of the last
workman in the enterprise.
2. Materials- Represent the materials necessary in the distribution of functions or in the attainment of
its objectives.
3. Machine – The tools necessary in a producing its desired output.
4. Methods –The procedures and ways used in the course of its actions.
5. Money– The financial resources of the organization.
The Major Elements of Organizational Structures are:
1. Distribution of functions – The functions to be performed, the groupings of functions and the vertical
and horizontal task relationships among functions.
2. Vertical and horizontal authority relationships – ( who are the authority to do what )
3. Communication and decision processes – The manner in which formal decisions are made and by
whom
4. Policies – The decision, rules or guidelines established.
 The common failure of management is its failure to adopt its organizational structures, policies and
procedures, to the growth in size and complexity of the enterprise.

According to Peter Drucker, traditional structures are no longer adequate for today’s complex
organizations. A management structure is a means of attaining the objectives and goals of an
institution.

Principle of Good Organization

1. Principle of Objective– The objectives serves as the guide to future planning and action. It
integrates policies, projects and programs. It enables everybody to act consistently to a common
goal.
2. Analysis– There should be a study as to whether the project could be finished at the right time
and at the right price the client will be able to pay.
3. Simplicity– The simplest organization that will serve to attain the desired objective is considered
the best. All activities that are not necessary should be eliminated and those retained should be
handled in the simplest practical way.
4. Functionalism– a function is a normal or characteristic way of doing a task that stands out
distinctively by itself.
5. Departmentalization– Departmentalization can be through functions, products, location, or by
projects of the organization.
6. Centralization of Authority and Responsibility – This is necessary in order to have authority and
responsibility definitely fixed.
7. Limited Span of Control– The number of subordinates an executive can manage effectively.

Organization and Business

Business had been defined as an organization of people with varied skills, which uses capital and
talents to produce goods or services, which can be sold to others of more than their costs or it may be
considered as the system through which economic activity was organized by those who seek to make
profit.
What is Management?

Management is a process. It is the process of directing and facilitating the work of people who are
organized for a common purpose. It is the process of combining the efforts and resources of individuals
with a common interest to achieve a desired objective.
Management is a function. It is the function if getting things done through the efforts of others. It is the
application of authority and the assumption of responsibility. It is an art, the art of handling people.