AHR 101

MIDTERM

LESSON 1

BY SIR PEE 2020

Planning
a) Definition and Nature of Planning

b) Types of Plan at the Different Management Levels

I- Intended Learning Outcomes

At the end of the lesson, you are expected to:

 Know the definition and nature of planning;

 Differentiate the types of plan at the different management levels;

 Explain the importance of decision making;

II- Gear Up!

OVERVIEW OF GOALS AND PLANS.

Goal is a desired future state that an organization attempts to realize.

Plan is a blueprint for goal achievement and specifies the necessary resource allocations,
schedules, tasks, and other actions.

The word PLANNING usually incorporates both ideas.; It means determining the organization’s
goal and defining the means for achieving them.
Definition & Nature Of Planning

Meaning, Definition & Nature

Planning is the first and foremost function of management. It is an intellectual process of

thinking resorted to decided a course of action which helps achieve the pre-determined
objectives of the organization in future. It is also the fundamental function of management and
all other function like organizing, staffing, directing and controlling must reflects planning
function of management. It is most important for higher level but this function is performed by
every manager at their respective jobs. While planning the manager projects a course of action
for the future aimed at achieving desired results for the enterprise as a whole and each
department with in it.
          It deals with future involves forecasting. A manager does not plan about the past but he is
guided by the post performance in the process of planning it requires projecting future activities
at the organization. So, we can say that planning is forecasting and deciding in advance a course
of action to be followed in the future.
          According to Terry, “ Planning is the selecting and relating of facts and the making and
using of assumptions regarding the future in the visualization and formulation of proposed
activities believed necessary to achieved desired results.”
          H. Fayol says, “ Planning is deciding the best alternatives among others to perform
different managerial operations in order to achieve the pre-determined goals.”

WHAT ARE THE STEPS IN PLANNING?

Steps are the FF:

1. Being aware of Opportunities- All managers should take a preliminary look at

possible future opportunities.
2. Establishing Objectives- It specifies the expected results and indicate the end
points of what is to be done.
3. Developing premises- This is to establish , calculate, and obtain agreement t
utilize critical planning.
 4. Determining Alternative courses- The planner must usually make a preliminary
examination to discover the MOST fruitful possibilities.
5. Evaluating alternatives- Examining the strong and weak points.
6. Selecting course- adopted the real point of decision making.
7. Formulating the derivative plans- Derivative plans are almost invariably
required to support the basic plan.
8. Quantifying plans by BUDGETING. The final step is giving them meaning.

What are the types of planning?

There are three major types of planning, which include operational, tactical and
strategic planning.

A fourth type of planning, known as contingency planning, is an alternative course of

action, which can be implemented if and when an original plan fails to produce the anticipated
result.

Decision making is important to achieve the organizational goals/objectives within

given time and budget. It searches the best alternative, utilizes the resources properly and
satisfies the employees at the workplace. As a result, organizational goals or objectives can be
achieved as per the desired result.

III-Rev Up!

ACTIVITY 1

Essay: Assuming that you are newly hired Manager of 711 retail store. How would you give
importance in Planning?

______________________________________________________________________

________________________________________________________________________
 ACTIVITY 2

Interview a manager in your area and ask about his company’s planning process.

______________________________________________________________________

V. References

R3. Serrano, A.C (2015). Principles of Organization and Management.Unlimited

Books Library Services & Publishing Inc.
R4.Spencer, Jena (2016). Business Management.6th Edition. McGraw-Hill
International Edition

MIDTERM

LESSON 2

Organizing
a) Nature of Organization
b) Types of Organization Structures
c) Organization Theories and Application
d) Delegation
e) Formal and Informal Organizations

I. Intended Learning Outcomes

At the end of the lesson, Offline students are expected to:

 Describe the nature of organization;

 Know the different types of organization structures;

  Identify the organization theories and application;

 Explain what is delegation;

 Discuss formal and informal organizations;

II. Gear Up!

Organizing is the function of management that involves developing an organizational

structure and allocating human resources to ensure the accomplishment of objectives. The
structure of the organization is the framework within which effort is coordinated.

REASONS FOR ORGANIZING.

Organizing is undertaken to facilitate the implementation of plans. In effective

organizing, steps are undertaken to break down the total job into more manageable man sized
jobs.

In turn, these will help facilitate the assignment of authority, responsibility and
accountability for certain functions and tasks.

What does it take for companies and organizations to be successful?

There are many answers to that question. Some would say it’s having an effective
mission; others would say it’s selling a product or service that’s in high demand.

Ultimately, it’s a company’s organizational structure that helps determine success.

 An organizational structure is defined as “a system used to define a hierarchy within an
organization. It identifies each job, its function and where it reports to within the organization.”
A structure is then developed to establish how the organization operates to execute its goals.

Types of Organization Structure:

There are many types of organizational structures. There’s the more traditional functional
structure, the divisional structure, the matrix structure and the flatarchy structure. Each
organizational structure comes with different advantages and disadvantages and may only work
for companies or organizations in certain situations or at certain points in their life cycles.

“Poor organizational design and structure results in a bewildering morass of contradictions:

confusion within roles, a lack of coordination among functions, failure to share ideas, and slow
decision making bring managers unnecessary complexity, stress and conflict,” wrote Gill
Corkindale in the Harvard Business Review. “Often those at the top of an organization are
oblivious to these problems or, worse, pass them off as challenges to overcome or opportunities
to develop.”

Ultimately, it’s important to get a group’s organizational structure correct in order for its
aims to be successful.

Types of Organizational Structures

A.Functional

If you’ve had a job, you likely worked in a functional organizational structure.

The functional structure is based on an organization being divided up into smaller groups with
specific tasks or roles. For example, a company could have a group working in information
technology, another in marketing and another in finance.
Each department has a manager or director who answers to an executive a level up in the
hierarchy who may oversee multiple departments. One such example is a director of marketing
who supervises the marketing department and answers to a vice president who is in charge of the
marketing, finance and IT divisions.

An advantage of this structure is employees are grouped by skill set and function, allowing them
to focus their collective energies on executing their roles as a department.

One of the challenges this structure presents is a lack of inter-departmental communication, with
most issues and discussions taking place at the managerial level among individual departments.
For example, one department working with another on a project may have different expectations
or details for its specific job, which could lead to issues down the road.

In addition, with groups paired by job function, there’s the possibility employees can develop
“tunnel vision” — seeing the company solely through the lens of the employee’s job function.

B.Divisional

Larger companies that operate across several horizontal objectives sometimes use a
divisional organizational structure.
 This structure allows for much more autonomy among groups within the organization.
One example of this is a company like General Electric. GE has many different divisions
including aviation, transportation, currents, digital and renewable energy, among others.

Under this structure, each division essentially operates as its own company, controlling
its own resources and how much money it spends on certain projects or aspects of the division.

Additionally, within this structure, divisions could also be created geographically, with a

company having divisions in North America, Europe, East Asia, etc.

This type of structure offers greater flexibility to a large company with many divisions,
allowing each one to operate as its own company with one or two people reporting to the parent
company’s chief executive officer or upper management staff. Instead of having all programs
approved at the very top levels, those questions can be answered at the divisional level.

A downside to this type of organizational structure is that by focusing on divisions,

employees working in the same function in different divisions may be unable to communicate
well between divisions. This structure also raises issues with accounting practices and may have
tax implications.

C.Matrix

A hybrid organizational structure, the matrix structure is a blend of the functional

organizational structure and the projectized organizational structure.

In the matrix structure, employees may report to two or more bosses depending on the
situation or project. For example, under normal functional circumstances, an engineer at a large
engineering firm could work for one boss, but a new project may arise where that engineer’s
expertise is needed. For the duration of that project, the employee would also report to that
project’s manager, as well as his or her boss for all other daily tasks.

The matrix structure is challenging because it can be tough reporting to multiple bosses
and knowing what to communicate to them. That’s why it’s very important for the employees to
know their roles, responsibilities and work priorities.
Advantages of this structure is that employees can share their knowledge across the different
functional divisions, allowing for better communication and understanding of each function’s
role. And by working across functions, employees can broaden their skills and knowledge,
leading to professional growth within the company.

On the other hand, reporting to multiple managers may add confusion and conflict between
managers over what should be reported. And if priorities are not clearly defined, employees, too,
may get confused about their roles.

Organization theories and application

Organizational theory attempts to explain the workings of organizations to produce

understanding and appreciation of organizations. Organizational theory draws from various
bodies of knowledge and disciplines. Some types of organizational theories include classical,
neoclassical, contingency, systems and organizational structure. These variations on
organizational theory draw from multiple perspectives, including modern and postmodern
views.
 Classical Organizational Theory

The classical perspective of management originated during the Industrial Revolution. It

focuses primarily on efficiency and productivity and does not take into account behavioral
attributes of employees. Classical organizational theory combines aspects of scientific
management, bureaucratic theory and administrative theory. Scientific management involves
obtaining optimal equipment and personnel and then carefully scrutinizing each component of
the production process, states StatPacInc, an international software development and research
company. Bureaucratic theory places importance on establishing a hierarchical structure of
power. Administrative theory strives to establish universal management principles relevant to
all organizations.

Neoclassical Organizational Theory

Neoclassical organizational theory is a reaction to the authoritarian structure of classical

theory. The neoclassical approach emphasizes the human needs of employees to be happy in
the workplace, cited StatPac Inc. This allows creativity, individual growth and motivation,
which increases productivity and profits. Managers utilizing the neoclassical approach
manipulate the work environment to produce positive results.

Contingency Theory

Contingency theory accepts that there is no universally ideal leadership style because
each organization faces unique circumstances internally and externally. In contingency theory,
productivity is a function of a manager’s ability to adapt to environmental changes. Managerial
authority is especially important for highly volatile industries. This allows managers the
freedom to make decisions based on current situations. The contingency theory reveals
situations that require more intense focus and takes account of unique circumstances.

Systems Theory

Systems theorists believe all organizational components are interrelated. Changes in

one component may affect all other components, according to StatPac. Systems theory views
organizations as open systems in a state of dynamic equilibrium, which are continually
changing and adapting to environment and circumstance. Nonlinear relationships between
organizational components create a complex understanding of organizations in systems theory.

Organizational Structure

Organizational structure became an important aspect of organizational theory due to the

increasing complexities of multinational organizations and the need to more quickly and
efficiently reach the market. Project-focused structures enable a greater responsiveness to
market demands than purely functional or bureaucratic structures. Projectized organizational
structures focus on the project manager or project management office for information and
activities related to business projects. The matrix organizational structure features vertical
hierarchies of functional departments that facilitate projects along a horizontal axis. The
continual exchange of information and energy characterizes the relationship between
organizational structure and environment.

What is a DELEGATION?

Delegation is the assignment of any authority to another person (normally from a

manager to a subordinate) to carry out specific activities. It is one of the core concepts

of management leadership. However, the person who delegated the work remains accountable

for the outcome of the delegated work. Delegation empowers a subordinate to make decisions,

i.e. it is a shifting of decision-making authority from one organizational level to a lower one.

Delegation, if properly done, is not fabrication. The opposite of effective delegation

is micromanagement, where a manager provides too much input, direction, and review of

delegated work. In general, delegation is good and can save money and time, help in building

skills, and motivate people. On the other hand, poor delegation might cause frustration and

confusion to all the involved parties.[1] Some agents, however, do not favour a delegation and

consider the power of making a decision rather burdensome.

TYPES OF ORGANIZATION.

 Formal Organization is an organization in which job of each member is clearly

defined, whose authority, responsibility and accountability are fixed. ...
Conversely, 
 Informal organization is formed spontaneously by members. Formal
organization is aimed at fulfilling organization’s objectives.
III. Rev Up!

Activity no.1 – ESSAY- 20 points.

Kindly give the importance of Delegation assuming that you’re the President of the Philippines
facing Pandemic crisis.

___________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

______________________________________________________________________

V. References

R1. Brown, B &Clow, J. (2016).Introduction to Business. McGraw-Hill Education

R2. Medina, R. G. (2015).Business Organizationand Management. Manila: REX
Book store.
R3. Serrano, A.C (2015). Principles of Organization and Management.Unlimited
Books Library Services & Publishing Inc.
R4.Spencer, Jena (2016). Business Management.6th Edition. McGraw-Hill
International Edition