Carlos Hilado Memorial State College

Alijis Campus | Binalbagan Campus | Fortune Towne Campus | Talisay Campus

COLLEGE OF BUSINESS MANAGEMENT AND ACCOUNTANCY

1ST SEMESTER 2019-2020

MODULE 1

For

ISORCO
(introduction to Organization and Management Concepts
BSIS 2A, 2B, 2C

Prepared by:

MARILOU R. JONOTA, MBA

OCTOBER 5, 2020

AN OVERVIEW OF MANAGEMENT AND ORGANIZATION

Objectives:
At the end of this chapter, the students are expected to:
1. describe the meaning of management;
2. identify the scope of management
3. recognize the importance of effectiveness and efficiency in organization;
4. describe characteristics of a manager;
5. examine the levels of managers in the organization;
6. compare the types of managers;
7. examine the skills required in managing;
8. identify the various roles of a manager;
9. describe the nature of an organization;
10. identify the basic principles of management and organization; and
11. recognize the importance of educating managers.

INTRODUCTION
The satisfaction of human wants is a universal concern and this is the basic reason wh.
organizations are established. Limited resources and the ever-increasing demand for food
shelter, security, and other basic necessities drive people to devise or use means to ensure that
the right moves are undertaken to satisfy those needs. A positive approach is the adoption of
effective and efficient schemes related to management and organization Governments,
business firms, and even nonprofit organizations are expected to manage their resources
properly, or they will fail in the attempt to contribute their share in the alleviation of poverty
and want. The foregoing brings to the fore the importance of studying management and
organization This chapter, as well as the succeeding ones, attempt to support the above-
mentioned statement.
WHAT IS MANAGEMENT?
Management may be defined as the achievement of organizational objectives through people
and other resources. It consists of several functions, which may be briefly defined as follows:
1. Decision making is the process by which a decision maker determines the available
alternatives and chooses the best solution that suits a given problem.
2. Planning is the process of establishing objectives and suitable courses of action
3. Organizing is the process of arranging an organization's structure and coordinating
before taking action its managerial practices and use of resources to achieve its goals.
4. Staffing refers to the process of recruiting, placing training, and developing
personnel.
 5. Communicating refers to transferring information from one communicator to another
6. Motivating refers to the act of giving employees reasons or incentives to work in
order to achieve organizational objectives,
7. Landing is the process of directing and influencing task-related activities of
organization members
8. Controlling is the process of monitoring actual organizational activities to see that
they conform to planned activities and correcting deviations or flaws.
EFFECTIVENESS AND EFFICIENCY A BASIC REQUIREMENT
An organization can only survive if its activities are effective and efficient. It is the
responsibility of the manager to see that his organization will achieve its objectives
effectively and efficiently. This is so even if such objectives are parts of a bigger objective
Effectiveness is a central element in the management process, which requires the
achievement of an objective. For instance, a manufacturer chooses a supplier who provides
needed materials at the required time and quantity. The action qualifies as effective,
Efficiency is also a central element in the management process, which requires that
the minimum amount of resources is used to achieve an objective in the example cited above,
the manufacturer may be able to get supplies from his chosen source, but if the costs
associated with the purchase are too excessive, the operation will be inefficient and may
place the organization
In a disadvantageous position.
WHAT IS A MANAGER?
A manager is one who plans, organizes, leads, and controls other individuals in the
process of pursuing organizational goals, Managers are vested titles like president department
head, dean, administrator, supervisor, team leader, and the like.
The manager is the one responsible for accomplishing the objectives of his particular
unit, which could be a whole organization, a particular department, or a work group
Managers are responsible for using materials and talents in the most economical and
productive manner. As such, they are regarded as very important, if not the most important
factor in the economic development of the nation.
THE LEVELS OF MANAGERS
Managers function according to the levels they are in. In a small organization, there
would normally be just a single manager who is expected to perform all the managerial roles
and tasks.
TYPES OF MANAGERS
Managers may be different from one another in terms of the work they do. They may be
briefly described as follows:
1. Line managers are directly concerned with accomplishing the goals of the
organization. The decisions they make with regards to operations are expected to be
final and must be implemented. For example, the university president, the dean, and
the department heads all have line responsibilities.
2. Staff managers are in charge of units that provide support to the line units. In doing their
work, they use special expertise to advise the line workers. The director of personnel and the
controller are examples of staff managers.
3. Administrators are managers working in government or in nonprofit organizations
Examples include school administrators, provincial administrators, and hospital
administrators
MANAGEMENT SKILLS
The effective and efficient performance of management functions such as planning
organizing, leading, and controlling are possible only if the manager is well-equipped with
the necessary management skills. Such requirements may be briefly described as follows:
1. Technical skills refer to the abilities to use special proficiencies or expertise in
performing specific tasks. They refer to the use of tools, techniques, and specialized
knowledge Examples of technical skills are an accountant preparing a financial report
an architect working on a building plan, and a professor writing a book
2. Human skills refer to the abilities to work well in cooperation with other persons; whether
they are subordinates, peers, or superiors. A person with good human skills will have a high
degree of self-awareness and a capacity for understanding or empathizing with the feelings of
others.
3. Conceptual Skills refer to the ability of the manager to see the organization as a whole and
to solve problems in ways that benefit the total system.
The Required Management skills at Different Levels of Management
The application of various management skills differ from level to level in the
management
hierarchy. First line manager needs less conceptual skills in the performance of his work, and
more human and technical skills. Compared to the first line managers, middle managers need
more conceptual skills, the same degree of human skills as that of first line managers, but less
on technical skills.
MANAGERIAL ROLES
The manager is expected to lead his unit or department in achieving its objectives. As
such, he is bound to interact with people and deal with processes. In the attempt to produce
results, the manager assumes roles as varied as the following:
1. Interpersonal Roles. These are the roles the manager plays when he interacts with
others. The specific roles under this category are
a. Figurehead. When the manager performs this role, he acts as the symbolic head of the
0rganization and as a result , he is expected to perform a number of duties of a legal
or social nature.
b. Leader. This role makes the manager responsible for the motivation and activation of
subordinates. As such, he is responsible for actions in staffing training, and other
associated duties. He performs the role of leader in virtually all managerial activities
involving subordinates
c. Liaison. In assuming the liaison role, the manager makes contacts with individuals in
and out of the organization to facilitate the accomplishment of work in his
department. Examples of such activities are acknowledgment of mail, external board
work, and other activities involving outsiders.

2. Informational Roles. A very important aspect of the manager's job is to receive and
communicate information. Such roles are vital to his decision making tasks. If he
wants his subordinates to improve the quality of their decisions, he provides them
with information. On receiving and sharing information, the manager assumes three
specific roles. These are briefly described as follows:
a. Monitor. In making the right decisions concerning the various aspects of an
organization, the manager is expected to collect information that will be useful in
performing his job. This information is shared with other members of the organization
whenever they are needed.
b. Disseminator There are certain types of information that the manager may consider
useful to his subordinates. When he receives such information from outsiders or from
subordinates, he transmits them to the concerned members of the organization Some
of this information may be factual, and some may involve interpretation and
integration.
c. Spokesperson There are occasions when outsiders seek information about the
organization and the manager as spokesperson accordingly. He also serves as expert
on organization's industry
3. Decisional Roles. The major part of the managers job is to make decision. As such,
he must use the information e processes to make decisions that solve problems.
a. Entrepreneur
b. Disturbance handler
c. Resource Allocator
What is an Organization?
An organization is a collection of people working together to achieve a common
purpose. It means used by people to achieve certain objectives.
The Function of Organization
There are certain objectives that the individual will find hard. If not, impossible to
achieve. The mass production of appliances like television sets and cellular phones, for
instance, will be impossible for a single person to undertake.
Common Characteristics of Organization
The following are the four characteristics commonly shared by organization:
a. Coordination of effort
b. Common Goal or Purpose
c. Division of Labor
d. Hierarchy of Authority
Basic Principles of Management and Organization
1. Management Principle . the various management principles applicable to managing a
business enterprise are as follows:
a. Division of Labor. This means breaking a job into specialized tasks to increase
productivity.
b. Authority. This is the right of a person in position to give orders and the power to
exact obedience.
c. Discipline
d. Unity of command
e. Subordination of the individual interest to their General Interest.
f. Remuneration
g. Unity of direction
h. Centralization
i. Scalar chain
j. Order
k. Equity
l. Initiative
m. Esprit de corps
2. Principles of Organization
a. Principle of Objective
b. Principle of Analysis
c. Principle of Simplicity
d. Principle of Functionalization

End of Topic!
Chapter Exercise:
1. Briefly explain the importance of studying management.

Management is the process in which an entity prepares, organizes, guides and

manages the organization or company's activities and resources to achieve its mission
in an effective and efficient way in an ever-changing world. It is the process of
overseeing and controlling the organization's business affairs. Management also
means setting up a business environment for workers and employers so that they can
work together efficiently and competently to accomplish the goal of the company. It
guides a group of individuals to combine their work in a planned way in order to
achieve the organization's goal.

IT IS IMPORTANT BECAUSE:

1. Management helps in achieving group goal:

Management aims to align people 's aspirations with corporate goals. Management
directs the actions of all employees in the shared goal of achieving organizational
goals.

2. Management improves efficiency:

Managers aim to lower costs and increase efficiency with limited resource wastage.
Through planning, scheduling, staffing, directing and regulating, management focuses
on quality and efficiency in the job.

3. Management creates a dynamic organization:

In dynamic environments, companies have to thrive so that managers continue to
make improvements in the organization to meet the changes in the environment. In
general, the workers in the organization are resistant to change. Efficient leadership
motivates employees to make changes willingly by convincing them that change not
only benefits organizations, but also improves the work of employees in the
competitive world.

4. Management helps in achieving personal objectives:

The one who gives full happiness to both the employer and workers is a successful
manager. Managers direct individuals in such a way that the individual target of
workers is often accomplished along with the organizational goal. As an
organizational objective and as an individual objective, there is only one way.
Individuals want more to earn and organizations want maximum output. By producing
more, workers can earn more. This would satisfy all the groups' goals.

5. Management helps in development of society:

Effective management often has several priorities, giving due consideration to social
responsibilities to various groups of people, such as workers, clients, suppliers, etc. It
focuses on delivering quality products, helping with competitive wages, creating
opportunities for jobs, etc. Increasing production management also contributes to
GDP growth (gross helps to carry domestic product) and leads to nation growth
 through increasing production management.

6. Management brings harmony in work:

Employees in an organization come from different backgrounds, have different
attitudes and different working styles, and if everyone starts following their own style,
it can lead to organizational chaos and confusion. Managers bring uniformity and
harmony to the actions of employees by providing directions.

2. Contrast effectiveness with efficiency.

In the management process, Effectiveness is a central element that requires the

achievement of an objective. A producer, for example, selects a supplier that provides
the materials needed at the time and quantity necessary. The action is classified as
effective, Efficiency is also a crucial aspect of the management process, which needs
the least amount of resources to be used to accomplish a target in the above example,
the manufacturer might be able to obtain products from its preferred source, however
if the purchase costs are too expensive, the operation would be inefficient and will put
the company in an inefficient position. The difference between efficiency and
effectiveness is that efficiency refers to doing things right, while effectiveness refers
to doing the right thing. Efficiency focuses on the means, while effectiveness focuses
on the end result. Moreover, efficiency is short term i.e. current state, while
effectiveness is long term.

3. Construct a table showing the amount.

                Effectiveness                      Efficiency

Effectiveness is about accomplishing a task or Efficiency is about performing a task in a best

producing a desired result possible manner

It focuses on maximum result with least time and

It focuses on achieving the objective effort

Being effective means doing the right things Being efficient means doing things in right manner

Efficiency focuses on completing task using

Effectiveness focuses on producing the result minimum time, effort and resources

Higher quality result can be expected from an Quick and intelligent work can be expected from an
effective person efficient person

Efficiency is primarily concerned on the use of

Effectiveness is primarily concerned about results, time, energy and resources, not necessarily the
not use of resources results

It is not process and time oriented It is process and time oriented

It looks at whether the something is done or not It looks at how the activity is done

Effectiveness has no/less economic sense Efficiency has higher economic sense

Efficiency looks at the process/means of doing a

Effectiveness is the end result task
It is result oriented It is yield oriented

Effectiveness has long run perspective. It is used Efficiency has short run perspective. It is used to
to achieve sustainable growth and long term profits achieve short term goals

Here, the effectiveness of strategies are measured It is measured in operations of the organization

Effectiveness can be considered as an extroverted Efficiency can be considered as an introvert

approach as it is measured between one or more approach as it measures the performance issues
organizations (cost, time and resources) within the organization

It refers to the usefulness of a thing It refers to the way in which something is done

Being effective means producing better and higher Being efficient means, there is minimum waste,
degree of success expenses and unnecessary effort

Effectiveness does not look at input to output ratio Efficiency looks at input to output ratio

Effectiveness in a work/organization should come

first Efficiency should be followed by effectiveness

Being effective means being on the right track with Being efficient may not necessarily mean being on
regard to the objective the right track with regard to the objective

4. Choose one principle of management and provide specific.

Scalar Chain:

The chain of command, sometimes known as scalar chain, is within an organization's

formal line of authority, communication, and responsibility. The chain of command
is generally represented on an organizational hierarchy that defines in the
organizational structure, the superior and subordinate relationships. Or it is the line of
authority from top to bottom of the company. The unity-of-command principle is
implemented by this chain and enables the orderly flow of information. The
instructions flow downward along the chain of command under the unity of command
principle, and accountability flows upward. The clearer the chain of command, the
more efficient the decision-making process is and the more efficient it is. These
management principles of Henri Fayol are universally accepted. They work as a
guideline for managers to do their job according to their responsibility.
5. Choose a particular business or industry and rank the roles of managers frequently
being used.
 Suggested Item for Research
Prepare a short report on the business management course offered in the
undergraduate level of a university of your choice. What is your opinion regarding the
subjects indicated in the curriculum?

The Bachelor of Science in Entrepreneurship is a four-year degree program that centers on

how to start and manage a business by combining management, accounting, finance, and
marketing principles. This program is designed in order to equip students with the necessary
knowledge and skills in identifying business opportunities, business planning, financing,
company valuation, and business management. 

Subjects and Curriculum

 Principles of Management
 Management Accounting
 Production and Operations Management
 Business Mathematics
 Business Communications
 Financial Accounting
 Cost Accounting
 Taxation
 Business Law

Entrepreneurship courses are appropriate for anyone interested in starting and growing a
successful business. Learn the theory and practice of entrepreneurship, frameworks for social
entrepreneurship, and how to foster a culture of innovation to help your business stay ahead.
Entrepreneurship is an interdisciplinary course designed to teach students how to think and
act entrepreneurial. Students learn how to start-up and operate a business while in school,
thus turning their learning into earning. The course will build on cross-curricular academic
skills, by integrating inquiry-based learning and business tools that will enable students to
analyze, create, develop and pilot small businesses in a safe campus environment. Those who
manage and operate a small business will bring their products directly to the consumer via the
local marketplace or present venture to potential investors for financing. Concepts and skills
are reinforced by a strong emphasis on hands-on experiences. Applications to soc iety,
individuals, and the utilization of technology are included.