ORGANIZATION & MANAGEMENT

1ST TERM EXAM REVIEWER

NATURE AND CONCEPT OF MANAGEMENT

➔ “Process of ​coordinating and overseeing the work performance of individuals working together in an
organization to ​effectively and efficiently accomplish their chosen aims or goals​.” (Cabrera 2016)
➔ “... process of ​using resources​ in order to reach organizational goals.” (Tibon, 2016)
➔ “The act or art of managing: the ​conducting ot supervising of something​ (such as a business)”

EFFICIENCY VS EFFECTIVENESS
➔ Efficiency​ - doing things right
➔ Effectiveness​ - doing the right things

FIVE FUNCTIONS OF MANAGEMENT

➔ PLANNING - involves determining the ​organization’s goals or performance objectives, defining ​strategic
actions​ that must be done to accomplish them, and developing​ coordination and integration activities.
◆ Important Terms
● Mission statement​ - describes a company’s ​reason for existence
● Vision statement - describes what the company ​wants to achieve and where it wants to go in the
future
● Goals - specific accomplishments or action plans that are usually obtained after a ​long period of
time
● Objectives - refer to action plans that obtained after ​shorter periods of time and more ​measurable
outputs
◆ Types of Plans
● Top-level Management Planning
○ Essential for a diversified company or a​ company with multiple businesses
○ Needed for crucial tasks such as identifying ​which industries a company will invest in or
which business ventures it should undertake​ in the future
○ Formulates the ​general business strategy to build a ​competitive advantage for the
company
○ STRATEGIC PLANS
◆ Designed by top management
◆ Usually ​broad plans based on the company’s ​vision, mission, and values, ​and ​address
the company as a whole
◆ Used as ​references for more specific plans that will enable the company to achieve
growth and profitability, boost productivity, and return on investment and improve
customer service
● Middle-level Management Planning
○ Formulated the ​tactical strategy which determines a ​particular function or process and is
formulated by middle-level management officers
○ The one responsible for ​crafting a functional strategy is usually the ​manager in charge of
the department or area concerned
○ TACTICAL PLANS
◆ Create​ specific plans for specific areas​ of the company
◆ Translate broader plans into functional goals​ for each area or department
◆ Elements are ​budget, resources, and goals​ with specific deadlines
● Frontline Management Planning
 ○ Formulates the​ operational strategy ​which is ​narrower and more focused
○ Requires the identification of resources that can be utilized to achieve the outlines plans and
goals
○ OPERATIONAL PLANS
◆ Specific​ procedures and processes made by ​frontline managers
◆ Operational plans often involve specific events such as ​marketing campaigns, campus
recruitment​ and others
◆ Involve the​ formulation of ongoing plans ​that​ ​define​ specific ​operation​ ​of the organization
◆ Planning Techniques and Tools
● Forecasting - the process of ​making predictions of the future ​based on past and present data
and most commonly​ by analysis of trends
● Benchmarking - ​adapting other organization’s processes that mat fit in own organization’s needs
and culture
● Contingency Planning​ - a plan devised for ​an outcome rather than in the usual ​(expected) plan
● Program Evaluation and Review Technique ​- a statistical tool used in project management, which
was designed ​to analyze and represent the tasks involved ​in completing a given project
● SWOT and PEST (Strengths, Weaknesses, Opportunities, and Threats and Political, Economic,
Social, and Technological) - closely related approaches to business analysis
● GANTT Charts - illustrate the ​start and finish dates of the terminal elements and summary
elements of a project
◆ Decision-making Process
● Identify the problem
● Develop alternative solutions
● Evaluate the alternatives
● Choose one alternative solution
● Evaluate and control
● Implement the decision
➔ ORGANIZING - assigning tasks, setting aside funds, and bringing harmonious relations among the
individuals and work groups in the organization to achieve a common purpose
◆ Important Terms
● Organization - a collection of people or groups of people working together to achieve a common
goal
● Organizational Chart ​- a visual representation of the organization’s structure showing the different
job positions in the firm and their hierarchical arrangement for the purpose of dividing labor and
providing a picture of the reporting structure
● Division of Labor ​- the assignment of different parts of manufacturing process or task to different
people in order to improve efficiency
● Specialization ​- the process of concentrating on a task depending on skills and becoming expert in
a particular subject
◆ Organizational Structures
● Pre-bureaucratic
○ Most common in smaller organizations and is best used to solve simple tasks
○ Totally centralized
○ The strategic leader makes all key decisions and most communication is done by one on one
conversations
○ It is particularly useful for new business as it enables the founder to control growth and
development
● Bureaucratic
 ○ Have a certain degree of standardization
○ Better suited for more complex or larger scale organizations
○ Usually adopt to a tall structure
○ Very much complex and useful for hierarchical structured organization
● Post-bureaucratic
○ Often used to describe a range of ideas
○ Smaller group of theorists have developed this theory that provides a detailed discussion which
attempts to describe an organization that is fundamentally not bureaucratic
◆ Delegation
● Sharing or transfer of authority and the associated responsibility, from an employer or superior (who
has the right to delegate) to an employee or subordinate
● Steps in delegating:
○ Defining the goal clearly
○ Selecting the person who will be given the task
○ Assigning of responsibility
○ Asking the person assigned about his or her planned approaches to accomplish the task
objectives
○ Granting the assigned person the authority to act
○ Granting the assigned person enough time and resources to do the task while at the same time
emphasizing his or her accountability
○ Checking the task accomplishment progress
○ Making sure that the task objective has been achieved
◆ Formal vs Informal Organizations
● Formal - organizations formed by the company or manager to help the firm accomplish its goals;
made up of formal groups (work groups/project team/committee) similarly formed by company
authorities to support their activities and achieve their activities
● Informal Organizations - organizations that exist because of friendship or common interests; made
up of informal groups which exist for the members need for social affiliation
➔ LEADING - entails ​influencing or motivating subordinates to do their best so that they would be able to
help the organization’s endeavor to attain their goals
◆ Leading vs Managing
● Leading​ - involves ​inspiring and influencing​ people in the organization to achieve a common goal
● Managing - the process of ​working with and through others ​to achieve organizational objectives
efficiently and ethically ​amid constant change
◆ Theories of Motivation
● Theory X and Y
○ Theory X - ​negative view on workers which assumes that workers have little ambition, dislike
work, and avoid responsibilities; they need to be closely monitored or controlled in order for
them to work effectively
○ Theory Y - ​positive view on workers which assumes that employees enjoy work, seek out and
accept responsibility, and are self-directed
● Hawthorne Effect - refers to the fact that people will modify their behavior simply because they are
being observed
● Expectancy Theory - an individual tends to act in a certain way based on the expectation that the
act will be ​followed by an outcome which may be attractive or unattractive​ to him/her
➔ CONTROLLING - involves ensuring that the work performance of the organization’s members are ​aligned
with the organization’s values and standards through ​monitoring, comparing, and correcting their
actions
 ◆ Importance
● Makes sure that the firm’s operating ​cash flow is sufficient, efficient, ​and if possible, ​profitable
when invested
● Ensures that there is a ​continuous monitoring of the organization’s activities followed by
corrective actions​ based on previously planned programs of action
● Sees to it that tasks are completed with ​less errors
◆ Control Process
● Involves ​establishing standards, measuring and reporting actual performance, and
comparing it with standards, and taking action
○ Setting Criteria for Performance - establishing standards
○ Monitoring of Performance - establishing standards, measuring and reporting actual
performance, and comparing it with standards
○ Correction of Deviations - taking action
◆ Control Methods and Systems
● Based on Timeliness
○ Feedforward Control - ​anticipated the occurrence of potential problems so that ​preventive
measures ​can be implemented ​before the actual operation
○ Concurrent Control - practiced ​monitoring the present activity as it happens and ​address the
problems as they occur
○ Feedback Control - done ​after the activity to ​gather information ​and ​determine whether the
activity is a success or not
● For The Conduct of Company Operations
○ Evaluation - involves ​collection and analysis of information to make decisions
○ Financial reports - provide ​information on how money is spent ​and how ​profits are
maximized ​by the company
○ Performance Appraisal - provides a ​general impression of performance ​by giving the
supervisors and employees a chance to​ discuss how to correct and improve performance
○ Policies and Procedures - ensure that employees ​carry out tasks in an effective and efficient
fashion​ and that ​directives and instructions are consistent
○ Quality Control - relies on the ​quality of products and services as a basis for establishing
performance standards, monitoring results with standards
➔ STAFFING - refers to ​filling in all organizational job positions and keeping these filled by identifying
job position vacancies, job requirements, workformace requirements, checking the internal environment of
the organization for the human resources available, recruiting, selecting, placing, promoting, evaluating,
career planning, development and training, and compensation, among others.
◆ Important Terms
● Recruitment - a set of activities designed to ​attract qualified applicants for job position
vacancies​ in an organization
● Selection - the process of ​choosing one candidate among all the other candidates applying for the
same job position
● Employee Relations ​- the ​connection created among employees as they go about their assigned
tasks for the organization to which they belong
● Training - learning given by an organization to its employees that concentrates on ​short-term job
performance​ and ​acquisition or improvement of job-related skills
● Development - learning given by an organization to its employees that is ​geared toward the
individual's acquisition and expansion for his/her skills in preparation for ​future job
appointments and other responsibilities.
● Compensation - ​all forms of pay given by employers to their employees for the performance of
their jobs
● Performance Evaluation - a process undertaken by the organization, ​usually done once a year​,
designed to ​measure employees’ work performance
● Rewards - something ​given or done in return especially in the form of salary, gift, prize, incentive
pay, benefits or merits which may have a motivating effect on the employee
● Monetary Rewards​ - rewards which to pertain to ​money, finance or currency
● Non-monetary Rewards ​- rewards which do not pertain to money, finance, or currency
◆ Methods of External and Internal Recruitment
● Advertisements
● Unsolicited applications
● Internet recruiting
● Employee referrals
● Executive search firms
● Educational institutions
● Professional associations
● Labor unions
● Public and private employment agency
◆ Hiring Process
● Job analysis
● Recruitment, screening and selection, interview
● Making a decision, notification and employment offer
● Orientation
◆ Types of interview
● Structured
● Unstructured
● One-on-one
● Panel
◆ Kinds of Employees
● Engaged
● Not engaged
● Actively disengaged
◆ Training Process
● Training Needs Analysis
● Training Implementation
● Training Evaluation
◆ Kinds of Compensation
● Monetary
● Non-monetary
◆ Monetary Rewards
● Pay/salary
● Benefits
● Incentives
● Executive pay
● Stock options
◆ Non-monetary Rewards
● Award
● Praise