Lecture 2.

Organization and
Management
INTRODUCTION:
The driving force behind every organization is its
management team. Different teams operate in different
ways.There is no universal accurate management to define
the one that is best.

What is Organization Management ?

Organization management refers to the art of getting
people together on a common platform to make them work
towards a common predefined goal.
Organization management enables the optimum use of
resources through meticulous planning and control at the
workplace.
Organizational Structure of a small Enterprise:

The Owner is usually the Manager

Daily contact with all the people in his organization
One who establishes the policies
Assign the job to be done
Follow up on the job for the purpose of direction
and coordination
WHAT IS ORGANIZATION?
Organization
 group of individuals who are cooperating
willingly and effectively for a common goal.
Seeks to know who is to do and what is to be
done.
Structured to promote better management
( A good excecutive maybe able to secure good results with a
poor organization, and a good organization may produce
results from a poor executive.)
“Who is to do and What to do”
“ It is the performance of the people who fill the
position that determines the success of the
enterprise and not the organizational design itself”

A management structure is only a vehicle used to

attain the objectives and goals of an institution, and
therefore, must be realistic and responsive to the call
for a change of those needs.
 THE STRUCTURAL ORGANIZATION
Structural organization is the formal arrangements that
are established to coordinate all activities in order
implement a given strategy.
A project organization is a structure that facilitates the
coordination and implementation of project activities.
 The structure defines the relationships among members
of the project management and the relationships with the
external environment.
THE STRUCTURAL ELEMENTS OF AN ORGANIZATION
1. Men. These men are different members of the
organization starting from the very top of the last
workman in the enterprise.
2. Materials. Represents the materials necessary
in the distribution of functions or in the attainment
of its objectives.
3. Machine. The tools necessary in producing
its desired output.
4. Methods. The procedures and ways used in
the course of its actions.
5. Money. The financial resources of the
organization
SIX ELEMENTS OF STRUCTURAL ORGANIZATION
THE MAJOR ELEMENTS OF ORGANIZATIONAL
STRUCTURE

1. Distribution of functions.
The functions to performed
The groupings of functions
The vertical and horizontal task relationship
among functions
2. Vertical and Horizontal Authority
 Relationship ( who are the authority to do
what.)
3. Communication and Decision Process.
 The manner which formal decisions are
made and by whom.
4. Policies.
 The decision, rules or guidelines established.
“Traditional structures are no longer adequate
for today‟s complex organizations”.
 A management structure is a means of
attaining the objectives and goals of an
institution. Thus, should responsive to respect
needs and changes on those needs.

Peter Drucker
 PRINCIPLES OF GOOD ORGANIZATION

1.Principle of objective
 A clear and complete definition of the objective
must be known.

The objective serves as the guide to future planning

and action.
It integrates policies, projects and programs
It anables everybody to act consistently according to a
common goal.
2. Analysis.
 A sound business judgement attempts to build an
organization through full knowledge of the
requirements of the business.

There should be a study as to whether the project

could be finished at the right time and the right
price the client will be able to pay.
3. Simplicity.
 The simplest organization that will serve to attain the
desired objective considered the best.

All activities which are not absolutely necessary,

should be eliminated, and those retained should be
handled in the simplest practical way.

Creation of position should be based on paramount

necessary and all activities which do not pay in terms
of pesos and centavos, should be eliminated.
4. Functionalism.
The organization should be built around the main
functions of the business and not around the
individuals.

If an organization of any concern is built around

the functions, proper distributions of work could
easily be done, thus, eliminating any one man to
become so powerful and so dependable upon to be
indispensable.
5. Departmentalization.
To achieve a smoother flow of operations.

Can be through:
 functions,
products
 location
or by projects of the organization
6. Centralization of Authority and Responsibility.
Necessary in order to have authority and
responsibility definitely fixed.
When there is unity of command, every person
knows:
What he can perform within his scope of authority
Knows the things for which he is responsible of,
Whom to report and to consult in case of problems
or doubts.
7. Limited Span of Control.
 The number of subordinates an executive can
manage effectively.

Organization and Business

Business had been defined as an organization
of people with varied skills, which uses capital
and talents to produce goods or services,
which can be sold to others more than thier
cost.
It may be Considered;
The system through which economic activity was
organized by those who seek to make profit.

Experienced prove that higher accomplishment is

dependent upon the interest and willing
cooperation of both the project supervisor and the
workers.
What is Management?
Management is a process.
A process of direct and facilitating the work of people
who are organized for a common purpose.
It is the process of combining the efforts and resources
of individuals with a common interest to achieve a
desired objective.
Management is a function.
Function of geeting things done through the efforts of
others.
It is the application of authority and the assumption of
responsibility.
An art of handling people..
Management Concept
Management to be effective must be
systematic.
 Management to be successful must be
scientific
 Management must be Humanistic

( Assignment: Defined/Discuss each of the

Management Concept, present your assignment
orally.)
The Management Structures.
The primary objective of management structure is
to facilitate the coordination and control over the
activities of the company.
No two companies are identical.
Each company should be studied in terms of its
purpose, size and the nature of its business.
In any sizeable organization, there should
be delegation of responsibility because:
It is physically impossible for one person
to control effectively all the works of a
large organization through personal
contact with it.
No person possesses the skills necessary
to guide personally the highly specialized
activities in a modern construction
business.
The line of responsibility works in two ways:
1. From the executive to the supervisor down to
the workers under his jurisdiction and
conversely.
2. From the workers to those who are in
authority over him.
Management Control
Control is a function of management which helps
to check errors in order to take corrective actions.
This is done to minimize deviation from standards
and ensure that the stated goals of the
organization are achieved in a desired manner.
To check or regulate
To keep within limits
Effective Communication System
To the manager, information has four purposes
to serve.
1. It must answer the questions what are we
going to do?
2. How well we are doing?
3. How can we do better?
4. Does it serve as an aid to coordination?
The Manager
A manager is a person who is responsible for a part
of a company, i.e., they „manage„ the company.
Managers may be in charge of a department and the
people who work in it. In some cases, the manager is
in charge of the whole business.
A manager is a person who exercises managerial
functions primarily. They should have the power to
hire, fire, discipline, do performance appraisals, and
monitor attendance. They should also have the power
to approve overtime, and authorize vacations. He or
she is the boss.
Quality of an Effective Manager
1. Analyzes and dissects his job.
2. Knows how to delegate the administrative
details of his job.
3. Willing to delegate to and share with his
subordinates the credit of a job well done.
4. Trains and develops his men to prepare them
to assume delegate work.
5. Knows how to control and plan his time.
6. Institutes controls for effective performance.
Group Reports:
Group 1= Executive Functions
Executive Leadership
Delegation of Authority
Group 2 = Responsibility and Authority Defined
Personnel Coordination
Scientific Management
Group 3 = Humanistic Management
Directing People on the Job
Group 4 = How to give Effective Orders
The Knowledge Workers
Thats All for Lecture 2:Organization and
Management

Oral Presentation Next Meeting

(Group Reports)

Prepare by:

Engr. Jane K. Zaportiza

CE 413 Instructor