CHAPTER 1

NATURE AND CONCEPT OF MANAGEMENT

Management is essential for an organization. It is like a root of a plant holding

all the strength to stand and stay firmly just as it holds the power of an organization
to either be successful and productive or left behind of outgrowth in the industry.
Managers were the one holding all the control and decision for effective and efficient
flow of everything inside and outside the organization. Managers should posses all the
skills necessary to carried out the organizations objective such as: Technical Skills
(technique and method to keep with the latest trend of technology in your job),
Interpersonal Skills (people skills or the relationship with all individual with
understanding, communication, cooperation and motivation) and Decision Making Skills
(conceptualize, analyze, diagnose, solve problem, manage time and grab all
opportunities). Ensuring that the function of planning, organizing, leading and
controlling be performed effectively everyday. Manager is the most important person
in any organization or business and has all the responsibility to be a leader, figurehead,
liaison to monitor, disseminate, speak and be the entrepreneur, disturbance handler,
resource allocator and negotiator. Manager are also liable for the company or business
he/she holds, workers, suppliers, investors, customers and even competitors.
Management is the way in which managers act to control and manage the organization.
It is adapted and evolved on certain theories. Started since 18 th century where there is
a specialization or division of labor into craft style(did all work) and production
(specialized worker) and nowadays adapted in a modern way. It include the Scientific
Management Theory which is the study of people and tasks relationship,
Administrative Management Theory which study on how to create effective and
efficient organizational structure, Behavioral Management Theory a study of managers
behavior to encourage and motivate employees, Management Science Theory about
techniques in essential use of resources, Organizational Environment Theory which set
of forces and conditions beyond organizations boundaries and lastly the Contingency
Theory consist of organization and control systems manager choose depend on the
contingent characteristics of external environment.

Everyone is a manager. I am a manager and other’s as well. I am the manager of

my life. I live my life the way I want to. The flow of my journey just depends on me.
Performing management for oneself isn’t easy just like the typical management in
organization. It comes with great responsibility. Before doing any action considering
circumstances and others must be first. Before deciding something consulting with
parents or think it all over again. Being the manager of my own is being able to be the
manipulator, leader, controller and handler of my action. I am the manipulator in a sense
of bringing out my talents, overcome my fears and improve my strengths as a living
person. I am the leader because I know I can lead myself into a better way turning
down any distraction, stress, problems and drive my way back to journey. I am the
controller because I can manage my time for my family, friends, household, works and
many things. I am the handler because I can make things impossible to possibility in a
way of surpassing all the problems preventing my success. Being a manager and
performing management requires a lot of dedication, compassion, eagerness, effort and
responsibility.

If I were to put up my own business in the near future I learned that I should
be knowledgeable and skilled enough to handle and manage it successfully Being the
future manager I make sure to be prepare and ready before putting up one business. I
will make sure to do the right decision for my business, my workers, my suppliers and
especially my customers. In decision making it is for all considerations and involves all
the persons inside my business. Begin to be a good listener for all the ideas and
information with regards to formulating business techniques and plans. Be the
figurehead who can stand in firmly from the start until end. Be the spokesperson who
confidently represents the business in some gatherings or meetings. Be the efficient
allocator of all the resources including money. Fulfilling tasks and works with
dedication, perseverance and responsibility. But before I became a manager in a
business I need to study hard the way I used to be. Managing myself first before
managing other.
CHAPTER 2

THE FIRM AND ITS ENVIRONMENT

There are many different businesses frim in our country. They come in many
form such as Sole Proprietorship (owned by one person), Partnership (association of
two person) and Corporation (association of many people and capital). Establishing a
business firm has a lot of requirement which includes capital or money, people;
employee and suppliers, Resources: materials, equipment, machines and most important
is customers. The Business have micro and macro forces that is either in two way
affecting or helping a business operations, Micro forces were all the external factors
such as government intervention, demographics, political system, inflation and cultural
forces. Business firms were scattered around the world not only in our locality, country
but also internationally and have its own environment. A nation will improve its economy
by the emergence productive businesses creating money not only for one’s own need but
also for the country’s wealth and through it political and social well being of people also
improved. Economic development has phases starting prehistoric time until to our
modern day. In the means of livelihood includes from hunting and fishing were the
people make a living through the help of environment and animals as their food then
pastoral phase, handicraft phase, agricultural phase, and today is the industrial phase
where people learn to work and build manufacturing companies to earn a living. For the
extent of economic activity and medium of exchange starting from household economy
or family contribution, then village economy, and begin to engage in National economy
into bigger and broader scope. For medium of Exchange since from barter economy
where traders exchange goods for goods, goods for services, services for goods and
services to services, then started using money to circulate in the market and most
common today is the addition of credit economy as exchange promise to pay for
purchase goods or services. That’s the business firm and its environment all about.

People are different. As in a saying “No two people are alike”. We are created as
imperfectly unique person with flaws. We have our different identities and attitudes
just like business have different form and environment. People’s development depends
on the person itself. A business success will also depend on the people who handle and
manage it. Both requires a lot of time and effort to fulfill. Problems are inevitable and
is a challenging part of life. It can put a barrier to success or can be surpass as lesson
learned. The firm is similar to a person’s body as it serves as asset or starting capital
of a person. The body is the essential part of human which will be the one to move,
make action in fulfilling development. The business firm is like a human body which have
organs who is connected and functioning together. In the universal law, “Everything is
connected with everything else”. This is true both on people and business firm. In a
sense that the different organs inside the body needs function properly to sustain
human life while in a business each components of the business especially the people
should perform their designated tasks with the aim of achieving goal and to stay on the
industry.

As for now I’m not the business minded person but I still have future plans of
building my own business which is an Internet Café. The knowledge on this lesson
enables me to understand the environment of a business firm. Acquiring and applying
the knowledge about the business firm and its environment will surely be a great help
for me to make my Internet Café possible. I have the awareness of the steps to do,
strategies to make and technique to apply. Progress, success and development were
everyone’s long time goal as an individual or in a business setting. But before equipping
with my future plans I know I should first be prepare and ready to face the present
reality.
CHAPTER 3

PLANNING

“Thinking before doing.” Everyday we engage in planning. In a business setting it

is quite complex and time consuming. One must need to prepare the materials, capital,
look for labor, manage time and exert all effort. Planning is the first thing to do before
anything else. It deals with chalking out a future source of action and deciding action
for the achievement of one common goal. The blueprint of an enterprise which may
layout all the things needed to do and to happen in the future. A plan of the business
enterprise that will lead its day to day operation to achieve the short and long-term
goals. To engage in planning, you should be “SMART” (Specific, Measurable, Achievable,
Attainable and Timed) with the plan of your actions. Forecasting is necessary to map
out the factors you need to prepare or prevent in realizing the plan. Planning is
conducted for a particular objective to mention are: providing economy an edge in
management and gives direction and certainty to all activities of the organizations.
Planning also have different types depending on the way it is utilized by the manager or
top executive. At first without planning there would be nothing to organize, activate
and take in control. Before doing it one should have the good analyzation, awareness on
opportunities it can give and possible problem to face together with it. Planning will
work depending on the person who will make it work especially the manager and the
level of the firm where to apply this. Planning is involving decision making, considering
firm’s priorities, objectives, common goal, philosophy, policy, purpose and premises.
Planning is the first step to success. It may be time consuming, costly, limited and
rigidity, but it a must and most important managerial function to do as it lays the
overall foundation of a business enterprise.

Planning is very useful and essential in life. We naturally make a lot of plans
everyday but sometimes it came to the point that those plans were just a piece of
paper to imagine. Curiosity of people will lead to enthusiasm and soon will lead to aim
and will result to planning. Planning will vary in its simplicity and complexness. For a
student like me, it can be a layout of activities that should be done for a particular
period of time consisting of plan of actions with specific time and date to perform. It
is very broad consisting of different outlook of plans. It can be plan of events, plan of
outing, plan of travels, plan of building house, plan for the future, plan of the family,
plan of organization, plan of business and many more. As one of the component of
planning is setting goal so as a person it is related in determining life goals, short term
and long term. There can be unlimited goals in life depending on the person since when
we are a little child unconsciously we started to overview our future life and set simple
dreams. Now that we are growing up and constantly maturing it is getting complex and
difficult to achieve within short period of time but it is aimed with eagerness,
compassion and enthusiasm.

Planning already starts in me. Planning will continue by my effort through time.
Planning is an essential blueprint before doing any action. I’ve learned so much -- as a
student, as a teenager, and just in general, as a person. In times of full load of school
works I should have the efficient and effective planning involving time management and
division of labors to balance and finish all the needed things to do. This scenario is one
of mere fact about a students life. I learn to develop new skills and abilities, exercise
old ones, and more importantly, I had fun while doing it. While learning so much about
myself and others, I developed aspirations about my future, and I have made plans to
achieve and complete my aspirations and dreams. To achieve my goals of fulfilling my
high school to take a leap to a more higher education. I will need to pursue a realistic
plan and actions towards this goal along with completing development, self-awareness
and knowledge gained. For my future, I know what I want to do and I know I need to do
it with perseverance and effort.
CHAPTER 4

ORGANIZING

Establishing a business will not end in planning. It should also be provided with
everything useful for its functioning including material, tools, capital and this was based
on Henry Fayol’s idea of Organizing. As a manager organizing is also an important thing
to do. It is the process of bringing together physical, financial human relationship and
developing productive relationship for the achievement of goals. It may also involve a
structure of employment dividing to the different employees to ensure that they are
directed toward the end goal of the business. Business will only be effective if the
manager or owner developed the skills for all the functions to be performed properly.
Organizing is guided by Organization Theory which consist of concepts, and principles
that provide framework for systematic study of structure, functioning, performance of
organization and behavior of individuals working. It also explains how organization
structure are build to improve their effectiveness. An organization will vary its
structure either it is natural or rational and open or closed systems. Natural system as
the organization of natural organisms exist within environment and the Rational system
are controlled purposeful and coordinated while Open system when there is connection
of many parts that makes up the organization and Closed system when there is only a
few contact and no change in the environment. It can also be formal type and informal
type of organization. Formal Organization structure is created by management for
achieving objectives and network have official authority and responsibility. Informal
Organization structure have pattern of activity interactions and human relationship
which emerge spontaneously due to social and psychological forces operating at the
work place. In organizing people have the control and authority over the organizations
day to day operations.

As a person, organizational skills is the ability to efficiently allocate time,

energy and resources to achieve a goal and it is important to every position in the
community. To a student being organized is key when facing multiple school work tasks.
We will be able to achieve the desired results we want if we are organize in action.
Organizing the availability of resources, awareness in the current business trend, the
use of money for production, selling and expenses. An organized people reflects an
organized business. Organize in everything that constitute to performing day to day
activities or in work as day to day operations.
 Before I decide to establish my own business, I should be wise enough to
complete all the necessary requirements. I should bring all the materials, tools, capital
and resources to be prepare in fulfilling my dream business. Organizing will not just end
on the outside physical component but it will continue from the inside. I know that I can
apply organizing in any kind of situations because this learnings is utmost applicable in
reality.

CHAPTER 5

STAFFING

Without the “Man” in organization it will not function and operate harmoniously.
Staffing as part of establishing a business enterprise is the process of manning
organization structure through proper and effective selection, appraisal and
development of the personnel to fill the roles assigned to the employee or workers. It
undergoes process of selection and recruitment before hiring qualified person that will
work to operate the day to day activities of an organization. Employee or workers will
be recruited either internally or in external way. Internal recruitment takes place
within the concern of organization. It includes the internal sources such as Transfers,
Promotions and Re-employment of Employee. External recruitment is through soliciting
from outside the organization but involves a lot of time and money. It can be through
Advertisement, Employment exchanges, Agencies, Educational Institutions,
Recommendations and Labor Contractors. After recruitment it will be filtered out
through employee selection as putting right men on the right job and matching the
organizational requirements with the skills and qualifications of the people. The process
of selection is conducted through interview, tests and assessment centers. When the
candidates are selected it is fitted through the right job or place. Orientation of
employees is through making it aware of the mission and vision of the organization. The
employee will also undergo trainings to enhance the skills, capabilities and knowledge in
doing a particular job. In accordance with the equity theory the individuals compare
their job inputs and outcomes in a sense of fairness. Wages are paid to blue-collar
workers on the other hand salary is paid to white-collar workers. Compensations are
additional privilege as benefits, allowances and rewards. Wages are in different kind
such as Minimum Wage to provide the bare sustenance of life for the workers
efficiency; Living Wages as a protection against ill health, deficiency, social need and
insurance and Fair Wages in between the Minimum and Living wages but below living
wages. Wage policy of the company is guided by the” Minimum Wage Act 1948” as
enacted to safeguard the interest of workers by providing fixation of minimum wagers.
The demand of labor is always supported by supply of wages.

The man of a business has a great impact in its overall operations. Establishing
staffing method with effective compensation system to attract, retain and encourage
best employee, strengthen employee relations and when difficulties came will be able to
manage successfully. Selection is like a strainer which filters and leave the most
qualified person for specific job. Staff can be supported through training, mentoring
and other opportunities for learning and professional growth. The more friendly and
comfortable working environment the more employees will last longer. Managers should
motivate every employees inside the organization since motivated employees are likely
to be on time, hands on, creative and actively working to its own extent while
unmotivated one are likely to avoid their place of work and responsibilities. People are
diverse with different characteristics and attitudes in different environment such as
in school, work and even at home. But when there is an engagement and interaction
there can be a foundation of understanding and acceptance within one another.

Staffing in life is not an easy process. Staffing include selection as the persons
that will be a part of one’s existence. Through time we are interacting with different
people, some are permanent but mostly are temporary as visitor in life. But it is based
on our treatment whether they will be satisfied or not. Those that stay in our life for a
very long time is like the satisfied employee in a business that constitute most of great
effort in working. The people in in our lives is as important as the man in organization
for a business operation and day to day functions. A manager should always have the
care, understanding, acceptance, good relationship with its personnel. It is not in the
money that will make the person stay it is always in the attitude and treatment towards
the other.
CHAPTER 6

LEADING

According to Stephen Covey, “Effective Leadership is putting things first”.

Inside an organization there are person who handles every factor that will constitute
to look forward with the goals. Either being a manager or leader they both use
leadership in working. Leadership is the process of motivating other people to act in
particular way in order to achieve specific goals. It includes the willingness to accept
responsibility and enhance skills ability. Leading the people to work perseveringly on
present and after should look forward on future. Through Leadership one can perform
influencing function in aims of motivating the people to work in achieving the desired
goals of an organization. The most effective quality of leadership is that the managers
are also leaders. Leadership is categorize into three types; Situational Leadership
which recognize the right person in the right place at right moment, Transitional
Leadership as the right time but wrong circumstances and Hierarchical Leadership
assumes leadership roles because it is the right circumstances but wrong time or it is
“their turn”. Depending on the types of leadership as either authoritative, affiliative,
pacesetting, coercive, democratic or coaching way of leading the people, organization
and the operation processes. To carry out leadership there should be an effective
communication process between the managers down to the workers. Communication will
start from the sender who is the one encoding a clear and well crafted messages that
is transmitted through the best channel in application of the KISS (Keep It Simple and
Straight forward) and the receiver for whom the message is intended shall successfully
decode, understand and interpret the information enable to accurately response in
either verbally or nonverbal way. Even in a group or organization where diversity exist
there should be an effective communication between one another. Diversity and
Differences are interrelated though it should not be the hindrance to facilitate good
relationship among employee and harmonious flow of operations. It facilitates and
facilitated by social change in the environment. Diversity exist when there is change
for example in the influence of culture from Filipino adopted or influence by foreign
one. Either a regular people or professional we have our own way of leading everything
in this world.

Leaders can arise in any situation either plan or unplan. Leaders take a step
forward and take charge of situations at home, work or at any other place. Some
leaders are born but mostly they are created because they have the ability, credibility
and people love to follow them. Embracing own roles and responsibility is an act of
leadership. This is the acceptance of duty for oneself to lead one’s own life to success.
Everyone is a leader in our own way whenever we are aware of it or not. Thus, effective
leadership begins with being self-aware. As a leader one must work hard to fully
understand owns strength and weaknesses which may reflect the actions and behavior
in any kind of situations. One must have the matter of value for his/her words so that
people will have the full trust. But it seems not an easy thing to do all the time
especially when there is a need for time management for different activities to do or
accomplish. The essence of leadership is not in telling others what to do, but in being
your best self and inspiring those around you to do the same.

In life we must first lead ourselves, only then we can lead others. Most of us
want to make everything in place or in betterment. To do it so we must start within
ourselves, where we are, making one change at a time, and we must not stop reflecting
until we are done. Thus, I must be flexible with changes overtime. In the future any
career or profession we choose and achieve at the end we will always be a leader. It’s
not the popularity but it’s the actions that matter in leadership. Leader on how we
perform our responsibilities and fulfill our works. One day when I became a
professional teacher I will make sure that I will lead my students through inspiring
them to study hard and value education.
CHAPTER 7

CONTROLLING

Management control system is the process of evaluating, monitoring and

controlling the various sub-units of the organization so that there is effective and
efficient allocation and utilization of resources in achieving the predetermined goals.
The involvement of people, information about the actual state of people, action taken
by people and the decision of people is involve in control system of an organization. In
control the actual performance is compared with the planned performance so the
organization plans can be achieved in a given time framework. There are responsibility
centers that is responsible for the organization unit activities such as Revenue Center
which is in charge with the output measured in monetary terms, Expense Center is
responsible for production of product and services, Profit Center responsible for both
revenue and costs and Investment Centers is in charge with production, marketing and
investment in the assets employed in the segment. The elements of control system are
the Detector, assessor, effector and communication network. The detector which
informs what is actually happening then it is compare with the standards by Assessor
and later on the effector alters the behavior if necessary and it is transmitted in a
cycle process. Control methods and system influences the behavior of organizational
resources. It is concerned with coordination, resource allocation, motivation, and
performance measurement. Through this process the managers can influence other
member of the organizations to implement the strategies. The four steps of control
process are; first, establishing standards and methods; second, measuring the
performance; third, determining whether performance matches standards and fourth
and lastly is taking corrective actions. There is a role that the budget plays in planning
and control as it serves as a valuable tool that can be use for spending and managing
money. Planning and monitoring a business or organizations budget will help identify
wasteful expenditures, adapt quickly to financial situation changes, and achieve
financial goals. Management Control System will be successful through the role of
monetary terms as in relation with efficient allocation of resources.

The value of controlling is that it enables directed planning, it empowers the

employees and can protect the workplace. Management control is essential because it is
the only one tool that the managers use in implementing the desired objectives.
Controlling the inside business operations may form an integrated whole where people
are working in accordance with their guts to achieved the desired goals together with
the aim of self-improvement and development. There is a need for control system
within an organization because the it has organizational objectives, the managers must
be ambivalent in view of their own personal goals, business situations which is full of
uncertainty should be settle and there is a necessity for human endeavors allocation of
effort and resources in achieving the objectives. Control is related with taking the
right action. Controlling is related with putting “first things first” as it aims to ensure
that everything occurs in conformity with the standards. In reflection in a school
setting there are norms that serves as the same as the working standards. This school
norms guide every students attitude and behavior inside or even outside the school
enable them to be a morally upright individual. These school norms is in accordance with
the mission and vision of the school that everyone of us should uphold. Though we are
aware that anyone of us is imperfect having flaws but one should work to its great
effort and dedication because at the end good things will always be the result.

For any kind of plan to be successfully achieve, control is in need. Through Just-
in-time management built into small activities that will lead to big success. Management
control system is essential in a business to manage both the financial and non-financial
aspects of its operations. With the control process there can be an effective allocation
of costs and earnings that will support the output and quality services of the employee
and business as well. On the right time when I’ll be able to own a business I will make
sure that I will apply the control method, systems and management.
CHAPTER 8

INTRODUCTION TO THE DIFFERENT FUNCTIONS AND AREAS OF

MANAGEMENT

This chapter covers 3 sub-topics namely; Human resource management,

Marketing and operating management and Financial Management and Information.
Human Resource Management is also a function of management, concerned with hiring,
motivating and maintaining people in an organization. It focuses on people in the
organization. Marketing Management is concerned with the product and services for
customers value and satisfying relations. It concerns itself with the customer
satisfaction and delight. Another areas of management is the financial management
concerns with harmonizing individuals and enterprise goals. Functioning within the three
levels such as investment decisions as related to asset selection which funds will be
invested, Financing decisions with the financing mix or capital structure and dividend
decisions in terms of influence on the market price and dividend policy. People,
products/services and money would not be properly utilize without the areas of
management and its functions.

Organizations does not only consists of building, machines or inventories, it is

the people they manage and staff of the organizations. The role of Human resource
management is important in developing and maintaining the people in the organization.
Human resource decisions are integrated with making decision and must influence
effectiveness of the organizations leading to better service to customer and high
quality product and services at reasonable price. Marketing and operation are part of
business functioning. Marketing as a very significant aspect in business as financial
success greatly depends on it. Marketing is a kind of operation or a never ending task.
Marketing concerns itself with arranging all the resources in a way that meets the
needs of the customers. Financing is in funds for business day to day operation
expenses and profitability. It’s all about money and wise decision of using this money. A
fact that no business ignore this matter. In life we have our assets and liabilities as
organizations do so. We are financing this to be useful in our functioning. We even
engage in careful decision making on how to effectively use it in the present and
efficiently save it in future. I am the human resource manager, marketing manager and
financial manager of my existence like any other individual.
 When I start a business I need qualified and excellent employees, best product
and services and efficient budget and resources allocation. Since these people of
organization is essential and having human resource management teams to develop their
skills, motivate them to higher level of performance and ensure that they continue and
maintain commitment to the organization in view of achieving objectives. I must also be
wise in managing the money inflow and outflow of my business. One wrong move
everything will be at risk not just the people working but also the main business and my
own effort, tired will turn into waste.
CHAPTER 9
SPECIAL TOPIC IN MANAGEMENT

This last chapter is all about the special topic in management and is related to
the summarization of the entire lesson. Entrepreneurs is the person who starts,
organizes and manages any enterprise or business with considerable initiative and
directing factor of production. An entrepreneur should have the desire to be the own
boss having the special skills and abilities. Not all business owners and managers are
entrepreneurs because they have unique skills and personal characteristics.
Entrepreneurs are contributing to the economy’s employment, finance and productivity.
There are different types of business as small, medium or large one. Small business
operates in one or very few location which the owner is usually the manager and
dominant in the field. Its main purpose is to meet the customer needs and to provide
unique services. Family business operates within the concern of family relationship and
control is in the members of a family. Its main purpose is to keep the business of the
family through the year.

The manager or owner can follow the business-first or family first rule. If its
family first so the business becomes part of lifestyle and secrecy is often paramount
to protect each other while if its business first so the business discourages family
relationship employment and it is formally operating. The new entrepreneurs that will
follow the path of business operations in the industry must look forward to manage
profitability even of the challenges brought by changes and the commitment for
continuous growth is firm and final.

In starting any kind of business either it is big or small, corporations or family

type there are things that we should consider first. The opportunities and risks need
to think about. First, we should conduct an environmental scanning to identify the needs
and wants of the people in a particular community where the propose business is to be
constructed. After identifying we can now generate business ideas that is ideal and
profitable through time. Decision making is in need to broke down the ideas into smaller
and smaller which is close in reality of pursuing. Prepare the materials including the
resources and capital necessary to build the physical layout of the business. The owner
should coordinate with the suppliers, seek information about the other business
competitors, look for prospect workers and be firm with the decisions. There are more
requirements needed such as the legal form in permission to operate. Engaging in a
business setting is like a challenge of survival. Survival of the fittest who can adapt
with the gradual changes of the world. Business is complex but if a person is a real
business minded one it is in nature to value it even of the mere difficulties.