Chapter 1

An Overview of
Management and
Organization
What is Management?

Management may be defined as

the achievement of organizational
objectives through people and other
resources.
Functions of Management
1. Decision Making

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

Planning is the process of establishing

objectives and suitable courses of action
before taking action.

Planning emphasizes prevention rather than

correction of delays
3. Organization

Organization is the process of arranging

an organization’s structure and coordinating
its managerial practices and use of resources
to achieve its goals.
4. Staffing

Staffing refers to the process of recruiting,

placing, training and developing personnel.
5. Communicating

Communicating refers to transferring

information from one communicator to
another.
6. Motivation

Motivation refers to the act of giving

employees reasons or incentives to work in
order to achieve organizational objectives.
7. Leading

Leading is the process of directing and

influencing task-related activities of
organizational members.
8. Controlling

Controlling is the process of monitoring

actual organizational activities to see that
they conform to planned activities and
correcting deviation or flaws.
Functions of Management (Classical)

1. Planning
2. Coordinating
3. Directing
4. Controlling
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.
 “
“Doing the right thing”
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 to
excessive, the operation will be inefficient
and may place the organization in a
disadvantageous position. This is especially
true if profitability is compromised.
 “
“Doing things right”
What is a Manager?
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
There are times when the size of the organization justifies setting up three levels of managers: The top
management, the middle management, and the lower management.
�Top managers are responsible for the overall
performance of the organization. They :
 formulate strategies
 provide leadership
 evaluate and shape the method of
organizing
 and control the direction of the organization
in the effort to accomplish goals
�Top managers usually hold the titles such as chief
executive officer, president, chairman or senior
vice president.
�Middle managers direct the activities of
other managers and sometimes also of those
operating employees. They work with top managers
and coordinate with peers to develop and implement
action plans to accomplish organizational objectives.
Examples of middle managers are the dean of the
business school in a university, the plant manager in
a manufacturing concern, and the branch manager
of a trading firm.
�Lower level managers are responsible for
leading employees in the day-to-day tasks, which
contribute to the organization’s goals. Of the various
levels of managers, they are the ones in the direct
contact with the employees. Because of this, they
are also referred to as “first line” or “front line”
managers. Apart from performing other managerial
functions of planning, directing, and organizing, their
task include correcting errors or soling problems
directly related to the production of goods and
services.
Types of Managers
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.
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.
1. Line Managers

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

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

Administrators are managers working in

government or in non profit organizations.
Examples include school administrators,
provincial administrators, and hospital
administrators.
Management Skills
Management Skills

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 financial
report, an architect working on a building plan, and a
professor writing a book.
Management Skills

2. Human Skills refer to the abilities to work

well in cooperation with the 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.
Management Skills

3. Conceptual skills refer to the ability of the

manager to see the organization as a whole and to
solve problems in a way that benefit the total system.
Specifically, the manager who possesses these skills
is expected to analyse and solve complex problems.
Thus, the manager with good conceptual skills will
have the mental capacity to perform the following:
a. identify the problems and opportunities
b. gather and interpret relevant information; and
c execute problem-solving decisions that serve
the organization’s purpose
Managerial Roles
The manager is expected to lead his unit or
department in achieving its objective. As such, he is
bound to interact with people and deal with
processes. In attempt o produce results, the
manager assumes roles as varies as the following:
1. Interpersonal Roles.

These are the roles the manager plays when he

interacts with others. The specific role under this
category are:
a. Figurehead. He acts as the symbolic head of the
organization 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 of staffing, training and other
associated duties.
c. Liaison. The manager makes contacts with individuals
in and out of the organization to facilitate the
accomplishment of work in his department.
 2. Informational Roles.

A very important aspect of the manager’s job is to

receive and communicate information.
a. Monitor. The manager is expected to collect information that
will be useful in performing his job. In acting as monitor, he
handles all mails and contacts categorized as concerned
primarily with receiving information using such sources as news
bulletin, special magazines and observational tours.
b. Disseminator. There are certain types of information that the
manager may consider useful to his subordinates. The manager
sees to it that relevant incoming information is properly shared
with subordinates.
c. Spokesperson. There are occasions when outsiders seek
information about the organization and the manager, as
spokesperson accordingly. The manager sees to it that his views
are heard on occasions requiring his presence such as board
meetings.
3. Decisional Roles.

As decision maker, the manager assumes the

following roles:
a. Entrepreneur. The manager searches the organization
and its environment for opportunities and initiates projects
to bring positive change. He also supervises the design of
certain projects. His role as entrepreneur requires
participation in strategy and review sessions involving
initiative or design of projects to improve performance
b. Disturbance Handler. The manager is expected to
respond to unwelcome pressures by formulating strategies
and reviewing such disturbances.
c. Resource Allocator. The manager is responsible for the
allocation of organizational resources of all such as
personnel, funds, machines or buildings and facilities to
individual employees or units.
 What is an
Organization?
An Organization is a collection of people working
together to achieve a common purpose. It is the
means used by people to achieve certain objectives.
Types of Organization
Common Characteristics of Organization

1. Coordination of Effort
2. Common Goal or Purpose
3. Division of Labor
4. Hierarchy of Authority
Basic Principles of Management

a. Division of Labor
b. Authority
c. Discipline
d. Unity of Command
e. Unity of Direction
f. Subordination od the Individual Interest to the
general interest
g. Remuneration
h. Centralization
i. Scalar Chain
j. Order
Basic Principles of Management

k. Equity
l. Stability of Tenure
m. Initiative
n. Esprit de Corps
Basic Principles of Organization

a. Principle of Objective
b. Principle of Analysis
c. Principle of Simplicity
d. Principle of Functionalization