Module Number: 1

Module Title: BUSINESS

Covered Period: Week 1 & 2
Module Objective:
At the end of the module, students will identify the following.
1. Identify business in each function
2. Types of Business Organization
3. Identify principles of Management
Module Content:
Information sheet 1.1 BUSINESS
BUSINESS
- A profit seeking activities of an individual or group of persons that produces
goods and services intended for selling for more than their cost.
Why People Go into Business
- For Profit
- For Living
- Power
- Protection
- Social Approval
Controlling Factor Business
- Availability of Funds
- Location
- Availability of Materials
- Education, Skills and Training.
- Government Restriction
Types of Business
- Merchandising – refers to buying and selling, best example is Sari-Sari
store
- Services – refers to catering the needs of individual.
a. Personal Services
b. Recreational Services
- Manufacturing – refers to goods from raw materials to finish product
a. Genetic – refers to “genesis” which means from the beginning (Fishing,
farming, forestry)
b. Extractive – refers to derivation from natural resources (Mining, rubber
production)
c. Assembly/Production – from raw materials to finish product, and this
finish product are again a raw materials of other company
Management
- Any activities to be undertaken to meet or attain organizational
goal/objective.
Objectives of Business
- To maximized profit
- To minimized cost

Function of Business (POSDCORB)

- P- Planning-setting up all alternative courses of action or creating
possible solution to the problem.
- O- Organizing – systematic arrangement of all resources of business
- S- Staffing- selecting the most qualified employee in the right position
in the right job.
- D- Directing- giving off task with supervision
- CO- Coordinating- refers to communication (SYNNERGISM) -
synchronized energy)
- R- Reviewing- refers to evaluation and documentation
- B- Budgeting-refers to allocation of funds
Principle of Management

1. Division of Labor – means breaking a job down into specialized task to increase
productivity.
2. Authority and Responsibility – is the right given to a person in position to give
plus the power to extract obedience.
3. Discipline – provides uniform application of behaviour.
4. Unity of Command – means that each employee must have only one supervisor.
5. Unity of Direction – means that the efforts of everyone in the organization must
be coordinated and focused on the same direction.
6. Subordinate of Individual – refers to the goal of organization that should take
precedence over individual goal.
7. Remuneration – employee should be paid fairly in accordance with their
contribution to the organizational effort.
8. Centralization – power and authority must be centralized as much as possible.
9. Scalar Chain – means that subordinates should observe the official chain of
command
10.Orders – means that human and non-human resources should be in their
proper places.
11.Equity – this is the result of kindness and justice and is principle to guide
management employee relations.
 12.Stability of Tenure – high employee turnover is counterproductive, motivate
employee to stay with company.
13.Initiative – management should encourage employee to act on their own
violation
14.Esprit-de-corps – means management should emphasize teamwork.

CASE 1 ATENEO DE SAN ANTONIO (What am I living for?)

There are 11,214 students enrolled in the various offered by Ateneo de San
Antonio. Located in San Antonio, Zambales, the School is composed of different
colleges offering courses in engineering, nursing, business administration, arts and
science and education.
The School is owned by Coll family headed by Ms. Mina Coll, a widow, in spite
of the number of students, the School appears not to be making profits to the
dissatisfaction of the five Coll children. Some of the building need repair and at least
one is recommended by the Dean of Engineering for demolition. A few of the brightest
members of the faculty have already moved to better paying jobs. Instructional
materials are always in short supply. The Coll children feel that these problems could
be solved with the infusion of additional funds.
When Ms. Mina Coll assembled her children to a meeting, she presented the
difficulty of securing funds. She mentioned that maybe each of the five could
contribute a million pesos or more from their own pockets. At this point, Mr. Mack
Coll, the eldest blurted out the following:
“Ma, you’re running the School as if it is a charitable institution. Look how
many students you have adopted as Scholar…. More than a thousand! How many of
our relatives are in the payroll even if they don’t deserve to be!
“You reward employees not because of good performance. Our tuition fees are
the lowest in the region. You are not even interested in knowing the return on
investment the School generates.
“Ma it’s time for us to run the School like a business. It must make enough
profits so that we can continue serving the community. We should hire at least a few
professional managers.
Ms. Mina Coll, this is the way we have been running this School ever since your
father and I founded it. We started with a few students and with our method; it grew
what it is now”.
“We were able to help many people get a degree and many of them are grateful.
You are able to get a good education in prestigious Universities here and abroad
because of the income we derive from this School.
“Your father and I believe that by helping others, our needs will be taken care
of”.
Statement of the Problem
Statement of the Objectives

Statement of the Alternatives

1.

2.

3.
Evaluation of Alternatives
Advantages

1.

2.

3.

Disadvantages

1.

2.

3.
Choose the Best Alternatives

Implementation