ORGANIZATION AND MANAGEMENT REVIEWER

PLANNING

 The process of thinking about the activities required to achieve a desired goal.

 The first and foremost activity to achieve desired results.
 Establishing goals and developing methods and strategies for these goals and objectives are to be
attained
 Involves the identifying of mission and vision, physical and financial resources to be acquired, allocation
of resources and procedures to be done to create successful outputs.

ADVANTAGES DISADVANTAGES
Encourages one to work harder Delays change and adaptation

Leads one to the direction towards activities that help False sense of certainty
achieve the goal and away from activities that do not

Development of strategies, to think of better ways to Detachment of planners

do the job

The Nature of Planning

 Strategic plans
o Plans that establish the organization’s overall goals and apply to the entire firm
o Are broad in scope and is the responsibility of the higher-ups of the company such as the CEO’s,
Presidents or the general manager of the company.
 Operational Plans
o Plans that apply to a particular unit area only, their scope is narrow.
o Achievement of company goals may not be achieved if operational plans are not clear.
 Long-term plans
o Plans that go beyond three years
o Everyone must understand the organization’s long-term plans to avoid confusion that may divert the
organization’s member’s attention.
 Short-term plans
o Plans that cover one year or less
o Such plans must lead toward the attainment of long-term goals and are the responsibility of the unit/
department heads.
 Directional plans
o Plans that are flexible or give general guidelines only
o Although flexible and general, these plans must still be related to the strategic plans.
 Specific plans
o Plans that are clearly stated and which have no room for interpretation
o Language used must be very understandable.
 Single-use plans
o Plans used or stated once as this applies to the entire organization
o Refers to the strategic plans of the firm.
 Standing plans
o Plans that are ongoing; provide guidance for different activities done repeatedly
o Refers to the identified activities of operational plans.

Types of Planning

1.) Strategic Plan

 Is a plan that contains the vision, mission, and values of the entire organization.
 It involves the high-level overview of what the organization plans to accomplish through the formulation
of vision, mission and values.
  Although in most organizations, the strategic plan serves as a guide for the decisions made by every
level of management, it usually sets the pattern how the company wants to achieve its long-term goals.
 The three components of the strategic plan are:
o Vision – Where the organization wants to be five years from now. This is how the company
envisions the future.
o Mission – Is a more realistic overview of the company’s objective or aim. Why the company
exists? What does it aim to achieve?
o Values – How the company wants to be known for. How the company inspires the world
through the values they follow and live by within the organization.

2.) Tactical Plan

 Describes the tactics or strategies the organization plans to use to achieve their objectives as stated in
the strategic plan.
 It is short-term usually covers a one-year term.
 It answers the question how the organization will implement their goals or objectives.
 It usually focuses on coming up with specific budgets, timelines, resources, and breaks own broader
mission statements into smaller plans of action and identifies persons responsible for implementing the
plan.

3.) Operational Plan

 This plan describes the day to day operations of the organization.

 This plan outlines the roadmap to achieve the tactical plans within a specific timeframe.
 It is very specific and is only addressing short-term objectives.
 Low Level Managers are usually responsible in making operational plans a success.
 Operational plans can either be a single use or ongoing.
 Single use plans are activities with a single occurrence like sales rally, sales blitz, or marketing promo.
 Ongoing plans deals with multiple settings and on an ongoing or continuing basis.
 It could be a policy, operational memos, or standard procedures.
 It can be changed or repeated as mandated.

Planning at different levels in the firm

 Top-level Management Planning

o Includes: Chairperson, Board of Director, President, CEO (Chief Executive Officer), CFO (Chief
Financial Officer), COO (Chief Operational Officer), Vice President, and Corporate Head.
o Controlling and overseeing the entire organization
o Play a significant role in managing outside resources
o Have great deal of managerial experience
o Sets goals and plans how to achieve those goals for the company
 Middle-level Management Planning
o Includes: General Manager, Regional Manager, Division Manager, Plant Manager
o Carry out the goals set by the top-level managers
o Set goals for their department
 Frontline/Low-level Management Planning
o Involves identifying specific procedures and processes required at the lower levels
o Involves routine tasks or tasks repeatedly done by the lower levels

PLANNING TOOLS AND TECHNIQUES

 Guide the users to success on various areas of planning.

 Using well-defined and proven planning techniques, tasks will be completed faster and easier.
 Using a standardized and universally accepted tool favors the acceptance of clients and other business
engagements.

1.) Top – Down Planning

  Identifying goals on a high level and breaking them down into specific objectives.
 “Market perspective”

2.) Bottom - Up Planning

 Setting plans in detail

 Focuses on the product or service to be sold
 “Store level”

Simulation

 Model building type of activity that tries to mimic an existing simulation in simpler manner.
 To gain understanding of the different alternatives available to predict outcomes in planning.
 4 Steps in conducting a training simulation:
1. Planning
2. Prepare
3. Simulate
4. Improve

Benchmarking

 Process of calculating an organization’s internal processes by identifying, understanding, and adapting

practices from other organizations considered to be the best-in-class.
 2 main benefits in doing peer benchmarking: Outperforming your competitors and improving your
company’s efficiency.
 Types of Benchmarking:
1. Best Practices
2. Peer Benchmarking
3. S.W.O.T.
4. Collaborative Benchmarking

Gantt Chart

 Commonly used in project management.

 Used to show activities displayed against time.
 Used for scheduling resources. It gives an overview of the way organizational resources are used.

Decision Tree

 A complete graphical visualization of a possible decision under conditions of risk which permits one to
make a diagram of outcome of different alternatives.
Affinity Chart

 Organizes a large number of ideas into their natural relationships.

 Used to generate, organize, and consolidate information related to a product or process.
 Use an affinity diagram when you can answer “yes” to all of the following questions:
o Is the issue incomprehensible?
o Is the issue not properly planned and controlled.
o Does the problem require the involvement and support of a group?

Interrelationship Diagram

 Allows a team to identify the cause-and-effect relationships among critical issues.

Decision Making
  Is the act of choosing between two or more courses of action.
 Is a choice among the best possible solutions to the problem.
 Use of reason in judging correctly the best among the many options possible.

Causes of difficult and challenging decisions

 Uncertainty
 Complexity
 High-risk consequences
 Alternatives
 Interpersonal Issues

Navigating the complex process of decision making

 Creating a Constructive Environment

 Investigating The Situation In Detail
 Generating Good Alternatives
 Exploring Options
 Selecting The Best Option
 Evaluating The Plan Of Action
 Communicating The Decision And Taking Action

FORMAL AND INFORMAL ORGANIZATIONS

Formal Organization Informal Organization

A social system has its roles deliberately created so A network of personal and social relations not
that the objectives of the organization can be established or required by the formal organization but
achieved. arising spontaneously people associate or come
together.

Features of Formal Organization

1.) There must be policies and objectives

2.) The activities of individuals in a formal organization are coordinated

3.) The persons in a formal organization must be able to communicate with one another through the
appropriate channels which have been created

4.) The employees in a formal organization must share a purpose.

5.) The workers in a formal organization on the receipt of necessary directive from their manager must be
willing to act.

Features of Informal Organization

1.) The association exists merely as social interactions

2.) There is no common or consciously coordinated joint purpose among members even though they may be
contributing to joint result.

3.) Comparability is a major criterion for such grouping. Since the informal groups exist in a formal group they
can assist or interfere with the enterprise interests.

4.) The form of punishment that the informal group members can give to members is to ostracize him. This
means that members of the informal group will refrain from talking and interacting with the member under
punishment until he turns a “new leaf”.
ORGANIZATION THEORIES AND APPLICATIONS

Organization Design

 The manner in which a management achieves the right combination of differentiation and integration of
the organization’s operations, in response to the level of uncertainty in its external environment.
 2 main classifications of theories regarding organizational design:
o Traditional - Usual or old-fashioned ways
o Modern - Contemporary or new designs theories

Types of Traditional Design

 Simple
o This organization design has few departments, wide spans of control or a big number of
subordinates directly reporting to a manager.
o The manager has a centralized authority figure and has very little formalization of work.
o This organization design is usually used by companies that start out as entrepreneurial
ventures.

ADVANTAGES DISADVANTAGES
Flexible Risk because of being overdependence with a single
person
Fast-decision making and results No longer appropriate as the company grows
Clear accountability

 Functional
o This organization design groups together similar or related specialties.
o Generally, functional departmentalization utilized and put into practice in an entire organization

ADVANTAGES DISADVANTAGES
Cost saving advantages Managers have little knowledge of other unit’s
functions.
Management is facilitated because workers with
similar tasks are group together

 Divisional
o This organization design is made up of separate business divisions or units, where the parent
corporation acts as overseer to coordinate and control the different divisions and provide
financial and legal support services.

ADVANTAGES DISADVANTAGES
Focused on results Possible duplication of activities and resources
Mangers are responsible for what would happen to Increased cost and reduced efficiency
their products or services

MODERN ORGANIZATIONAL THEORIES

1.) Team Design

 An organization is made up of teams with each working towards a common goal

 The employees are grouped for their specific duties and these groupings are called project teams

ADVANTAGES DISADVANTAGES
Team members are empowered to work
Cooperative workspace for functional areas Pressure to perform
Clear chain of command

2.) Matrix-Project Design

  Functional role- set of skills performed by a department
 “Matrix”= Specialist/s
 Led by “functional role manager” and the assigned project manager

ADVANTAGES DISADVANTAGES
Presence of different specialists Conflicting tasks
Shared authority between two managers Mismatching personalities

3.) Boundary-Less Design

 Design is not defined

 No hierarchies, departmentalization and no boundaries
 Examples are freelancers or subcontractors

ADVANTAGES DISADVANTAGES
Flexible
Not limited to horizontal, vertical or external May cause confusion to those working for the
boundaries company
It encourages a small number of full-time employees

THE CONCEPT, PROCESS AND ADVANTAGES OF DELEGATION

Delegation of Authority

 The organizational process of dividing authority by granting right and approval from a superior source
downward to the subordinate to accomplish the assigned tasks within the prescribed limits.
 It is the subdivision and sub- allocation of powers to the subordinates in order to achieve effective
results.
 The subordinate will be delegated with authority, but the superior source will still maintain the original
authority.
 Remember: No one can delegate the authority he/she does not possess.

The Process of Delegation of Authority

 Consists of 4 stages:
 Stage I: Assignment of duties to subordinates
o The superior source will precisely assign the specific duties for the subordinate (usually
by listing the functions to be accomplished).
o The superior source should also properly communicate his/her expectations from the
subordinate.
 Stage II: Transfer of Authority to perform the duty
o The superior source will now delegate the authority to the subordinate.
o The authority delegated should strictly be according to the assigned duty.
 Stage III: Acceptance of assignment
o The chosen subordinate has the right to either accept or refuse the delegation from the
superior source.
o If the subordinate refuses, the superior source must choose another subordinate that will
accept the task.
o When the subordinate accepts, the assignment of work will be accompanied with the
authority delegated as well.
 Stage IV: Creation of Responsibility
o The subordinate will perform the given duties assigned in an authoritative manner as
given by the superior source.
o The subordinate is given an obligation to either accomplish or ignore the task assigned.
 o The superior source must also be open to help and support the subordinate because
he/she is also responsible for the accomplishment of the task.

ADVANTAGES DISADVANTAGES
Reduces the Manager’s burden Business risk
Develops the capabilities of the subordinates Burden on employees
Continuity of Tasks Lack of Knowledge of Employees Skills
Expansion of the Organization Lack of Trust
Source of Motivation Lack of Interest
Lack of Credit
Lack of Authority

RECRUITMENT

 “The process of searching the candidates for employment and stimulating them to apply for jobs in the
organization” - Edwin B. Flippo

Importance of Recruitment

 Attract more candidates to apply in the organization.

 Process which links employers with employees.

 Increase the pool of candidates for the job at minimum cost.

 Determine present and future requirements of the organization with proper planning.

 To provide good quality people to the organization.

Recruitment Process

1.) Initial Planning

 Identification of employee’s needs.

 Number of employees it wants and can afford.

2.) Additional Information

 Recruitment channels are important and can help the employer

3.) Final Phase

 Picking of candidates or staff.

 Review of resumes, conducting interviews, meeting job candidates and comparing qualities and
abilities.

STAFFING SELECTION

Selection

 Under the staffing function of management.

 The review of applicants who are placed in the waiting list.
 8 steps that the company follows in order to properly select employees:
1. Establishing a selection criteria
 o The company should set a standard of what they would expect from an applicant.
o The criterion includes nature of job, work experience needed and etc.
2. Requesting applicant to complete the application form
o Once the applicants qualify for the selection criteria they may now complete the
application form.
o The application from includes what is asked from the selection criteria.
3. Screening by listing applicants who seem to meet the set criteria
o With the basic information given by the applicant through the application form.
o The management will now list applicants who seem to pass the minimum requirements.
4. Screening interview to identify more promising applicants
o Through a screening interview by the management, they would be able identify the most
promising applicants.
o Applicants who passed this interview would proceed on to a much challenging interview.
5. Interview by the supervisor/manager or panel interviewers
o Questions asked can be professional, personal, situational, etc.
o Interviews where you’re chances of getting hired are at stake and these are done by top
level managers.
6. Verifying information provided by the applicant
o A way for the company to verify the information stated by the applicant is to be true.
o The applicant can provide IDs, certificates to prove her identity to the company.
7. Requesting the applicant to undergo psychological and physical exam
o An applicant must go through a medical exam to prove he is eligible to work.
o Any employee must be in proper health condition to perform the tasks efficiently and
productively.
8. Informing the applicant that he or she is hired
o The last step of the selection process of applicants.
o Applicants would be informed if they are hired through an email, letter or verbally telling
them.

TRAINING AND DEVELOPMENT

 Describes the formal, ongoing efforts that are made within organizations to improve the performance
and self-fulfillment of their employees through a variety of educational methods and programs.
 Refers to programs designed to help improve processes and performance of both the individual
employees and the organization as a whole.
 It also allows you to overcome those weaknesses by strengthening those skills of each employee.

Types of methods

 Orientation
o Orientation training is vital in ensuring the success of new employees.
 Lectures
o A verbal method of presenting information, lectures are particularly useful in situations when the
goal is to impart the same information to a large number of people at one time.
 Role Playing
o A facilitator creates a scenario that is to be acted out by the participants under the guidance of
the facilitator.
 Computer-Based Training
o Involves the use of computers and computer-based instructional materials as the primary
medium of instruction.
 Self-Instruction
o Training method in which the students assume primary responsibility for their own learning.
 Team-Building Exercises
o The active creation and maintenance of effective work groups with similar goals and objectives.

BENEFITS
Improved employee performance
 Improved employee satisfaction and morale
Addressing weaknesses
Increased productivity and adherence to quality standards
Reduced employee turnover

EMPLOYEE COMPENSATIONS

Compensations

 The total amount an employee can expect to receive when working

 A systematic approach to providing monetary value to employees in exchange for work performance

Importance of Compensations

 It encourages the employees to perform better and show their excellence as well as provides growth
and development options to the deserving employees
 The basic objective of establishment of a sound compensation administration is to establish and
maintain an equitable compensation structure.
 Its secondary objective is the establishment and maintenance of an equitable labor-cost structure, an
optimal balancing of conflicting personnel interests so that the satisfaction of employees and employers
is maximized and conflicts minimized.

Basic Structures of Compensation

Pay Level Decisions Pay Variability Decisions

Decisions about whether to pay employees at level Concerns those extents to which employees pay
that is below, above or at current market wages. varies with individual and organizational performance.

Types of Compensation

Direct Pay Indirect Pay

The wage or salary received by the employee Consists of various employee benefits and services

Performance Appraisal

 Assessing how well employees are doing at their jobs

 Used in making administrative decisions (pay increase, promotion, performance feedback)

Basic Elements in Performance Appraisal

 A Clear Appraisal Process

o Employers should make the appraisal process transparent as possible.
o Secrecy and ambiguity can lead to mistrust between the supervisor and employees.
o Employees should also have access to the evaluation and restructuring process to ensure the
standards set are objective and attainable.
 Standards must be Objective and Equally Applied
o Objective standards prevent employers from drawing on previous appraisals but instead focus
on the present.
 The Appraisal must be a Review
o Consistent performance partnership between employers and employees provides employees
the opportunity for continuous improvement.
 The Appraisal must be a tool for improvement
o The appraisal is an opportunity for the employee review the past in order to make new positive
changes.
 The Appraisal must allow for employee feedback
 o Performance Appraisals are used as an evaluative tool rather than a way to blame an employee
for problems.
 The Appraisal must include an action plan
o Any actions agreed after the appraisal whether extra training, raise/promotion, disciplinary
action should be followed through as soon as possible.
o These actions may be used as a motivator for employees to achieve future success.

Kinds of Performance Appraisal

1.) Trait Appraisal

 Subjective Opinions regarding a characteristics

 Can be measured from a scale of -1 (Lowest) to +5 (Highest)
 Often considered as not valid because of vagueness and biased.

2.) Behavioral Appraisal

 Centers on visible features of performance

 More specific since they offer useful feedback to employees

3.) Results Appraisal

 More objective and focus on the results of work done.

Computing for Salaries and Wages

Regular Day Special Day Special Day which is also a

scheduled Rest Day
Basic Daily Rate = monthly rate x
number of months in a year (12)/ (130% x Basic Daily Rate) ( 150% x Basic Daily Rate)
total working days in a year.

Regular Holiday Regular Holiday which is also a

scheduled rest day
(200% x Basic Daily Rate) (260% x Basic Daily Rate)

Computing Night Shift Premium where Night Shift is a Regular Work

On Ordinary Days On a Rest Day, Special Day or Regular Day

Number of hours in excess of 8 hours x Number of hours in excess of 8 hours x
(125% x hourly rate) (130% x hourly rate)

On A Night Shift

Ordinary Day Rest Day, Special Day or Regular Day

( 110% x Basic Hourly Rate) (110% x Overtime Hourly Rate)

Computing for the 13th Month Pay

 Total basic salary earned for the year exclusive of overtime, holiday and night shift differential pay
divided by 12

Conditions of employment and benefits provided for employees

Employment Conditions
  Normal working hours shall not exceed eight (8) hours a day
 Payment of overtime work shall consist of an addition of at least 25% of the regular wage per hour
worked or 30% thereof during holidays or rest days
 Minimum wage rates for Agricultural and Non-Agricultural lines of work vary in every region and should
be properly observed
 Minimum age of employment is 18 years old but those aged 15 to 18 can be employed given that they
work in non-hazardous environments in the event of a bankruptcy or liquidation, workers shall be paid
their full salary before other creditors may establish any claim to a share in the employer’s assets
 Companies are mandated by the Labor Code to give their regular employees a thirteenth month pay
equivalent to one (1) month of their annual salary
 Service incentive leave of at least 5 days with pay for every year of service
 Employees have a right to a weekly rest period of not less than 24 consecutive hours after every 6
consecutive normal work days
 Withholding a portion of an employee’s monthly salary to remit as contributions to government agencies
is a requisite for employers, these agencies are as follows:
 Social Security System (SSS)
 Home Development Mutual Fund (HDMF)
 Philhealth
 Provision of holiday pay
 Paternity and maternity leave benefits

Employee relations

 The effort of the company to manage relationship between the employees and employers.

Importance of Employee Relations

 The employee needs the guidance and advice of others as well.

 Work becomes easy if it is shared among all
 The organization becomes a happy place to work if the employees work together as a family.

Benefits of Strong Employee Relations

 Productivity – It creates a pleasant atmosphere within the work environment, it increases the
employee motivation and can be increased through improved employee morale.
 Employee Loyalty – creating the productive and pleasant work environment has a drastic effect on the
employee’s commitment to the firm; it encourages a loyal workforce.
 Conflict Reduction – A working environment that is efficient and friendly would result to lesser
conflicts within the workplace.

Ways to Improve Employee Relations

1.) Involve organizational members

o They should feel important and indispensable for the company.

o An individual must be assigned responsibilities based on their interest, strengths and skills.

2.) Encourage individuals to share their work with each other

o This way people tend to talk with each other more, discuss things among themselves and thus comfort
level increases.

3.) Written modes of communication must be promoted among the employees for better transparency

o Written communication is important in the workplace.

o The agendas, minutes of the meeting, important issues must be circulated among the employees

4.) Organize birthday parties, Christmas parties, New Year parties etc. at the workplace

o These small initiatives would make the bond among the employees stronger.

5.) Morning meetings is another effective way to improve relation among the employees
 o The members should come together and discuss about the issues they have. The meeting must not be
too formal.

Reward Systems

 Are positive outcomes that are earned because of an employees' performance.

 These rewards are aligned with the goals of an organization.
 Rewards demonstrate that an employees’ behavior is appropriate and should be repeate

Reward System Principles

 Rewards should support behaviors directly aligned with accomplishing strategic goals -

Employees can be working hard but if he/she does not have a goal in working hard, then the employee
is only engaged in busy work.
 Rewards must not be tied to fear and pressure but rather purpose and passion - Fear is a
powerful motivator but only lasts it dissipates after a time. Management instead must motivate their
employees by reminding them on their passion for their job and their purpose in life.
 Workers should be able to clearly associate the reward to their accomplishments - Being
rewarded means that a good action/behavior was demonstrated. Employees must understand the
reason why the employee is being rewarded in order to repeat the behavior/action.

What should a Reward System Contain?

 Must contain namely, compensation, benefits, recognition and appreciation.

 The problem with most Reward Systems is that one or more of the four areas is missing and the
elements on the Reward System do not support the company’s goals or strategies.
 A good Reward System must be conscious and reward the two kinds of employee activity,
“performance” and “behavior”.
 Performance deals with the direct connection between the initial goals set for the employees and the
result.
 Example of such is when management recognizes top performers for the month and gives incentives.
 While Behavior deals with the attitudes of a worker in the workplace.

Employee Movement

 The transfer of employees from an organization to another.

 It provides insights about the health of the company pertaining to employee satisfaction and
engagement levels.

ADVANTAGES DISADVANTAGES
Eliminates boredom Can be costly and time consuming
Encourages development It won’t fix all your problems
Helps you identify where employees work best Might not be feasible for some industries

Types of Employee Movement

1.) Promotion

 The advancement of an employee from one job position to another job position that has a higher salary
range, a higher level job title, and, often, more and higher-level job responsibilities in an organization.
 Horizontal Promotion – when an employee is shifted in the same category. Such promotion may take
place when an employee shifts within the same department, from one department to another or from
one plant to another plant.
 Vertical Promotion – when an employee is promoted from a lower category. This involves increase in
salary, status, authority, and responsibility.

2.) Demotion

 A compulsory reduction in an employee's rank or job title within the organizational hierarchy of a
company, public service department, or other body, unless there is no reduction in pay.

3.) Transfer
  Movement to another position but with the same level or scope of responsibility.
 Also mean a transfer to another branch or location but the employee still occupies the same tasks.

4.) Separation

 Employees’ departure from the organization.

 Fired - A firing takes place when an employer severs ties with a worker due to poor performance or
violations of company policy. Depending on the nature of employment, an employer may work with the
employee in order resolve the problematic situation or provide a probation plan as a warning. In the
case of at-will employment, an employee can be fired without a reason or without warning.