ORGANIZATION MANAGEMENT 11
“FUNCTIONS OF MANAGEMENT” 1. GOALS - are the targets or desired ends that
1. Planning
2. Organizing
3. Staffing
4. Leading
5. Controlling
PLANNING
– It provides direction to all of the desired targets is a MUST before establishing
organization’s human resources. Both
managers as well as employees.
– It reduces uncertainty. it compels terms of:
managers to consider future events that
– may affect their company.
– It minimize wastes.
– It establishes goals and standards during
planning that may be used for
controlling.
Without planning, goals and standards will be
absent and controlling will not be possible since
there will be no standard to compare or assess
work effort with.
Is there a clear relationship between planning
and performance?
There is NO clear relationship between planning
and performance because there are other
environmental factors that also affect individual or
organizational performance, and thus, result in
reducing the impact of planning to performance.
Therefore, the relationship between planning and
performance is mainly due to systematic planning’s
association with the excellent financial status of the
organization and higher return of investments,
higher income, and profit that could be traced to the
excellent performance of its human resources.
A well-thought-out plan requires a longer period of
preparation: its execution or application must also
be done for a certain period of time (months or
years) before it begins to affect performance.
Can you differentiate GOALS from PLANS?
management wants to reach.
2. PLANS - are the actions o means that
administrators/managers intend to use to achieve
organizational goals.
Therefore, goals serve as the foundation of
planning; it precede plans because knowing the
plans for reaching them
Organizational plans can be generally describes in
1. Comprehensiveness
2. Length of time covered or time frame
3. Specificity
4. Frequency of Use
TERM DESCRIPTION
Comprehensiven Refers to the completeness of
ess panning coverage.
EX:
Strategic Plan – covers the
entire organization.
Operational Plan – apply to a
partikular operational area only.
Time Frame Long-Term Plans – covers more
than 3 years and set by top-level
management
Short-Term Plans – cover one
year or less and set by low-level
management
Specificity Refers to a very detailed, clearly
defined plans wherein objectives
are clearly stated and could
easily be understood. Simple
language must be used for
better understanding
Frequency of Refers to number of times or
Use instances a plan is used.
 (Strategic Plan has a single use flexible or give general
while operational plans are guidelines only.
usually used frequently for several Specific Are plans that are
times) clearly stated and which
have no room for
SWOT Analysis – one of the most structured and interpretation.
used planning method to evaluate a business
venture. Single-Use Are plans used or stated
once only as this applies
to the entire
TYPES OF PLAN organization.
1. Strategic
2. Operational Standing Are plans that are
3. Long-Term ongoing.
4. Short-Term
5. Directional 5 STEPS IN PLANNING PROCESS
6. Specific (Schermerhorn, 2008)
7. Single-Use
8. Standing 1. Define your goals/objectives
2. Determine where you stand in relation to
PLANS DEFINITIONS set goals/objectives
3. Develop premises regarding future
Stategic Are plans that establish conditions
the organization's 4. Analyze and choose among action
overall goals and apply alternatives
to the entire firm. 5. Implement the plan and evaluate results

(Responsibility of the
CEO, President, and
General Management of
the Company.)
Operational Are plans that apply to a
particular unit are only.
Their scope if narrow.
Achievement of
company goals may not
be achieved if
operational plans are
not clear.
Long - Term Are plans that go beyond
three years. Everyone
must understand the
organization's long-term
plans to avoid confusion
that may divert the
organization member's
attention.
Short – Term Are plans that cover one
year or less.
Directional Are plans that are
Planning at the different levels of management
include:
1. Strategic Planning (Top-Level)
2. Tactical Planning (Middle-level)
3. Operational Planning (Lower-Level)
Strategic Planning (Top-Level)
– Involves decisions about the organizations'
long-term goals and strategies which is
being developed and executed by the CEOs,
company presidents, and senior executives.
– They do not formulate or execute the plan
on their own.
– A management team supports and helps
top-level managers in carrying out these
tasks.
Tactical Planning (Middle-Level)
– A set of procedures for changing or
transforming broad strategic goals and
plans that are applicable and needed in one
 unit/portion of the org.
– It is focused on major actions that must be
done by a unit in order to contribute its
share for the achievement of the strategic
plan.
Operational Planning (Lower-Level)
– Involves identifying the specific procedures
and processes required at the lower levels of
the organization.
– This also involves routine tasks or
repeatedly done by the organization's lower
level units.
Internal Benchmarking – to encourage all the
employees in their different work units to learn and
improve by sharing one another's best practices.
5. Participatory – include the people who will
be affected by the plans and those who will
be asked to implment them in all planning
steps.
Decision Making – a process which begins with
problem identification and ends with the evaluation
of implemented solutions.
STEPS OF DECISION MAKING
1. Identify the problem
2. Identify the decision criteria
3. Allocate weights to the criteria (prioritizing)
4. Develop alternatives
5. Analyze the alternatives
6. Select an alternatives
7. Implement the chosen alternative
8. Evaluate decision effectiveness (See if the
problem was resolved)

Techniques and tools to be used for planning to be TYPES OF DECISIONS

effective: • Structured/Programmed – a decision that
is repetitive and can be handled using a
1. Forecasting routine approach.
2. Contigency
3. Scenario • Unstructured/non-Programmed –
4. Benchmarking Decisions are unique, non-recurring and
5. Participatory need custom-made decisions.
1. Forecasting – an attempt to predict what
may happen in the future. TYPES OF DECISION MAKING CONDITIONS
2. Contigency – offers alternative courses of 1. Certainty Conditions – ideal condition in
actions when the unexpected happens or deciding problems. A manager can make a precise
when things go wrong. decisions because the results of all alternatives are
3. Scenario – planning for future states of known.
affairs.
EX: Banks interest are made known to clients so it is
4. Benchmarking – involves external easier for the business managers to decide.
comparisons of a company's practices and
2. Risk or Uncertainty – compel the decision
technologies with those of other companies
maker to do estimates regarding the possible
to find out what other people and
occurrence of certain outcomes that may affect
organizations do well and then plan how to
his/her chosen solution to a problem. Data from
incorporate these practices into the
his experience and other secondary information
company's operations.
may be used as bases for decisions to be made by
External Benchmarking – a common
the decision maker under such risk conditions.
benchmarking technique used by other
organizations.
EX: Manager is asked to invest some company funds
 passageways that unite the work of diff. Individual
ORGANIZING persons/groups.
To function well:
• Organization structures and their specific TYPES OF ORG STRUCTURES
roles must be understood by members of
Vertical Clears out issues related to authority
the organization.
rights, responsibilities, reporting
relationships
• Rules and Regulation principles must also
be put into practice.
• Authority Rights – refer to the
legitimate rights of individuals,
Organization – a collection of perople or groups of
appointed in positions like
people working together to achieve a common goal.
president, vp, manager, and the
like, to give orders to their
Organizing – a management function which
subordinated, who in turn,
involves assigning tasks, allocating resources, and
report to them what they have
coordinating work activities in order to achieve a
common purpose. done.
Horizontal Refers to the departmentalization of an
Organization Chart – a visual representation of the organization into smaller work units as
organization's structure showing the different job tasks become increasingly varied and
positions in the firm and their hierarchical numerous.
arrangement for the purpose of dividing labor and
providing a picture for the reporting structure.
VERTICAL STRUCTURE
Division of Labor – involves assigning diff. Tasks to
diff people.

Specialization – process in which diff. Individuals

and units perform diffent tasks.

(The bigger the organization, the more work units or

work divisions and specializations are to be
expected).

Integration – another in the orgs internal Two Types of Departments

environment which involves the collaboration and 1. Line – deals directly with ther firm's primary
coordination of its different work units/ work goods and services; responsible for manufacturing,
divisions. selling, and providing services to clients.

Coordination – procedures that connect the work 2. Staff – support the activities of the line
act of the different work divisions/units of the firm departments by doing research, attending to legal
in order to achieve its overall goal. matters, performing public relations duties, etc.

Structural mechanisms may be devised in order to

APPROACHES OF DEPARTMENTALIZATION
increase collaboration and coordination. The more
highly differentiated one's organization is, the Functional Where the subdivisions are formed
greater the need for integration among the different based on specialized activities such as
units. marketing, production, finance
Organization Structure – a system made up of management, and human resourse
tasks to be accomplished, work movement from one management.
work level to other work levels in the system. Divisional Is where departments are formed
Reporting relationships, and communication
 based on management of their MAIN CLASSIFICATIONS OF THEORIES
products, customers, or geographic • Traditional Design pertains to the usual or
areas covered. old-fashioned theories.
Matrix Is a hybrid form of
• Modern Design refers to contemporary or
departmentalization where managers
new design theories.
and staff personnel report to the
superior, the functional manager, and
A. Traditional Design Theories:
the divisional manager.
• Simple – has few depts, wide spans of
control, or a big number of subordinates
FUNCTIONAL STRUCTURE directly reporting to a manager; has a
centralized autority figure and has very little
formalization of work; usually used by
companies that start out as entrepreneurial
ventures.

STRENGTHS WEAKNESSES
Flexible Risk that
overdependence with
over-dependence on a
DIVISIONAL STRUCTURE single person
Fast-decision making No longer appropriate as
and results the company grows
Clear accountability

• Funtional – where they group together

similar/related specialties. It is generally
functional departmentalization utilized and
put into practice in an entire organization.

STRENGTHS WEAKNESSES
Cost- saving advantages Managers have little
knowledge of other
MATRIX STRUCTURE
units' functions
Management is
facilitated because
workers with similar
tasks are grouped
together

• Divisional – is made up to seperate

business divisions/units, where the parent
corporation acts as overseer to coordinate
and control the different divisions and
provide financial and legal support services.

STRENGTHS WEAKNESSES
Focused on results Possible duplication of
 activities and resources STRENGTHS WEAKNESSES
Managers are Increased cost and Being highly flexible and Lack of control
responsible for what reduced efficiency responsive
happens to their
Problems in
products and services
communication

B. Modern Design Theories

DELEGATION refers to assigning a new or
• Team – where the entire org is made up of traditional task to a subordinate. It also refer to
work groups or teams. getting work done through others by giving them
the right to make decisions and take action.
STRENGTHS WEAKNESSES
Empowerment of team Clear chain of command STEPS IN DELEGATION
members • Defining the goal clearly
• Selecting the person who will be given the
Reduced barriers among Great pressure on teams
task
functional areas. to perform
• Assigning of responsibility
• Matrix – refers to an organization where
specialists from different departments work • Asking the person assigned about his or her
on projects that are supervised by a project planned approaches to accomplish the task
manager. Results to double chain of objectives.
command where in workers have two
managers – their functional and their
• Granting the assigned person the authority
project manager who share authority over
to act
them.
• Giving the assigned person enough time and
STRENGTHS WEAKNESSES resources to do the task, while at the same
Specialists are involved Task and personality time emphasizing his/her accountability
conflicts
• Check the task accomplishment progress
• Project – refersto an org design where • Make sure that the task objective has been
employees continuously work on a project. achieved

DELEGATION
STRENGTHS WEAKNESSES
ADVANTAGES DISADVANTAGES
Flexible Designs Complexity of assigning
people to projects and It prevents work May cause laziness
tasks overload among among organization
orgnaization managers managers
Fast decision-making Personality conflicts
Provides opportunities May encourage too
for employee/ much dependence on
• Boundaryless – the design is not defined or subordinates assigned other
limited by vertical, horizontal, and external to do the task to fully
boundaries. There are no hierarchical levels utilize their talents on
that seperate employees, no the job
departmentalization, and no boundaries
that seperate the org from customers, Leads to empowerment Cause lack of control
suppliers, and other stakeholders. of employees, as it over priority
allows the freedom to management problems
contribute ideas and to
perform their job in the A systems approach to staffing is the step by step
best possible way way of filling job positions inorganizations,
considering variables like number and kinds of
Increases job May cause low self human resources needed, open managerial and
satisfaction among the confidence among non-managerial positions, potential successors to
assigned to employees, managers open job positions, etc.
that may lead to better
job performance The number of managerial personnel or non-
managerial human resources needed by an
• Formal Org. - formed by the company organization depends on the size and complexity of
owner/manager to help the firm accomplish its operations.
its goals; made up of formal groups similarly
formed by company autorities to support The qualifications for the individual positions must
their activities and achieve ther objectives. be identified so that the best-suited individuals for
Characterized by hierarchical and reporting the job positions may be selected for hiring.
relationship among groups/members.
Human Resource Inventory for Managerial
• Informal Org. - Exists because of Positions
friendship/common interest; made up of • Inventory Chart or (management
informal groups which exist for the succession/replacement chart) is used by
members' need for social affiliation. companies to identify the names of potential
successors. Recruitment by external means
STAFFING may follow if there are no qualified
Human resources are also called human capital, successors.
intellectual assets, or management or company
talents which implies that human resources are the Human Resource Inventory for Managerial
drivers of the organization's performance, hence Positions
STAFFING must be considered as a crucial function • Replacement are usually done as the need
of managers. arises since these are less sensitive
positions. External recruitment follows if no
STAFFING refers to filling in all organizational job one if fitted for the job position.
positions and keeping these filled.
EXTERNAL AND INTERNAL FORCES AFFECTING
ACTIVIES OR PROCESSES INVOLVED IN PRESENT AND FUTURE NEEDS FOR HUMAN
STAFFING RESOURCES/STAFFING
• Identifying the job vacancies
EXTERNAL FORCES
• Job Requirements
• Economic
• Workforce Requirements
• Social
• Selecting
• Technological
• Placing
• Political
• Development and Training
• Legal Factors
• Checking the internal environment of the
organization for the human resources
INTERNAL FORCES
available
• Firm's goals and objectives
• Recruiting • Technology
• Evaluating • Types of work to be done
• Career Planning • Salary Scales
• Compensating • Kinds of people employed by the company
• Promoting