HAND-OUTS (ORGANIZATION AND MANAGEMENT)

GRADE 12 GENERAL ACADEMIC STRAND

NATURE OF PLANNING
Planning is a primary management function. It involves setting the direction and goals of an organization,
establishing a system that will define the activities of the organization, and formulating a plan to ensure that the
system works toward achieving the goals of the organization.
PLANNING PROCESS: Formulate the goals and objectives-> Identify the courses of action->
VMGOs
VISION- describes what the company wants to achieve and where it wants to go in the future.
MISSION- describes a company’s reason for its existence.
GOALS- specific accomplishments or action plans that are usually attained after a long period.
OBJECTIVES- refer to action plans that involve shorter periods and more measurable outputs.

PLANNING TECHNIQUES AND TOOLS

QUALITATIVE TECHNIQUES
a.) Brainstorming b.) Nominal group technique c.) Delphi technique
QUANTITATIVE TOOLS
a.) Decision tree b.) Payback method
DECISION-MAKING
COMMON TYPES OF DECISION MODELS
1.) Rational Decision Model- this process involves a logical step-by-step analysis of several possible
contributing factors in making the decision.
2.) Intuitive Decision Model- Managers do not use objective methods in decision making but instead use
their “gut feeling”
3.) Predisposed Decision Model- the manager, once he or she decides on a solution, will no longer look for
other alternative solutions.
COGNITIVE BIAS- this refers to the tendency to look at situations based on subjective standards or perspectives.
EXAMPLES OF COGNITIVE BIASES:
1. Escalating commitment- this type of error happens when a manager, despite his or her knowledge of a
project’s failure, continues to acquire more resources to pursue the project instead of abandoning it.
2. Prior hypothesis bias- this happens when a manager holds on to his or her prior belief that a project will
succeed even when evidence to the contrary has been provided.
3. Representativeness- It is the tendency to make generalizations based on a small sample or single
experience.
4. Reasoning by analogy- It refers to the tendency to conclude that the results of one situation can be
repeated in a similar situation.
5. Illusion of control- it is a type of error that many top-level managers commit when they become
overconfident regarding their ability to solve problems.
6. Framing bias- kind of bias correlates the outcome with how a problem or decision is framed.
7. Availability error- this error is committed by managers when they immediately use available resoures on
a project that is expected to immediately provide profit, rather than holding off and waiting for a later
opportunity that will generate even greater profit.
NATURE OF ORGANIZATIONS
Organization is defined as a social group that has well- coordinated processes and activities for the purpose of
achieving its objectives and is connected to the environment where it exists.
Organization as management function entails the structuring and grouping of jobs and ensuring that these are
performed by qualified and competent personnel.
Organizing Process
Identification of Activities->Departmentalization->Definition of Authority->Integration of Authority and Responsibility
Organizational structure is the framework that shows how each component of the company relates to each other.
ELEMENTS:
• Work Specialization- refers to the way jobs are divided into steps or individual tasks.
• Departmentalization-refers to the grouping of similar functions, jobs, and tasks into departments.
• Chain of command- indicates the communication and work relationship between employees and
managers. It indicates who reports to whom.
• Span of control- refers to the number of employees a manager can effectively and efficiently manage.
• Degree of centralization- refers to the extent authority and decision-making is given to a small group of
people in the organization. Centralization occurs when major decisions are made by the top management
and actions of lower management and employees must have the approval from the top. Decentralization
occurs when lower management is allowed to make important decisions. This is applicable to companies
that are widely dispersed in several areas
• Formalization- the process of standardizing jobs and establishing rules and guidelines that guide
employees.
TYPES OF ORGANIZATIONAL STRUCTURE:

• Simple Organizational Structure

the most basic structure and is applicable to small businesses where majority of the power and decision-
making rests on the owner.
• Functional Organizational Structure
Emphasizes hierarchy and specialization among departments
• Divisional Organizational Structure
This structure allows employees in each division to concentrate on their own division’s performance
however this leads to duplication of functions, expertise, and resources and is more costly to maintain.
• Matrix Organizational Structure
It combines features of functional and divisional structures. The matrix structure is often used in larger
companies and is set up as a grid where employees have dual reporting relationships.
• Team-based Organizational Structure
A horizontal design structure that organizes employees into teams whose members performed varied
functions.
• Network Organizational Structure
A company using this structure hires only a few employees, which amounts to lesser costs for salaries and
benefits.
ORGANIZATION THEORIES
Bureaucracy- emphasizes a formal rigid structure and legitimate authority in organizations. It is associated
with formality, rigidity, and low commitment.
Scientific Management Theory- emphasize efficiency in work process. It allows managers to distinguish
essential tasks from unproductive ones.
Systems Theory- emphasizes that a system is a collection of parts that are coordinated in accomplishing
a particular goal.
Contingency Theory- this theory recognizes that there is no single best way of managing an organization.
Situational differences are given consideration and different management principles are applied depending
on the task, the size of the firm, and the nature of its environment,
NATURE OF STAFFING
STAFFING OR HUMAN RESOURCE MANAGEMENT
Involves acquiring and developing human resources that will carry out and perform the various activities of
the organization.
FUNCTIONS INVOLVED:
1. HUMAN RESOURCE PLANNING- a process in which an organization attempts to estimate the demand for
labour and evaluate the size, nature and sources of supply which will be required to meet the demand.
2. JOB ANALYSIS- the procedure for determining the duties and skill requirements for a job or position, as
well as other qualifications sought for in an employee or applicant.
JOB ANALYSIS TECHNIQUES: 1.) Observation 2.) Interview 3.) Questionnaire 4.) Logbook
JOB DESCRIPTION- a written summary of the duties, responsibilities, reporting relationships, and the job
specifications for each job or position in the company.
• Essential Parts:
A.) Job title or position- describes the exact name of the job
B.) Reporting Relationships- 3.) Job classification
4.) General description of the job 5.) Specific Duties and responsibilities 6.) Job Specification
3.) RECRUITMENT-the process of attracting qualified applicants to occupy vacant positions in the company.
This consists of various activities that entice and influence qualified applicants to work with the company.
2 Types of Applicants:
Internal applicants- are company employees who are considered for promotion to higher positions.
External applicants- are individuals who are recruited by the company or directly apply to join the
company.
Means: referrals, job fairs and trade events, campus job fairs, advertisement, notices in print media, walk-in
applicants, job portals etc.
• SELECTION- This process starts when applicants who qualify after preliminary screening are scheduled
for the preliminary interview and psychological testing conducted by Human Resource Department (HRD).
• PLACEMENT- the last part of hiring process.
4.) TRAINING AND DEVELOPMENT
• Training- is an organized activity that increases and enhances employees’ knowledge and skills on their
job to improve their current performance.
• Development- is the enhancement of the competencies of employees by giving them opportunities for
greater responsibilities as well as challenging tasks that will help them achieve their total growth.
TRAINING PROCESS: Pre-training Assessment->Designing the training program-> Training Implementation-
> Training Evaluation
5.) COMPENSATION-any tangible equivalent or reward for services rendered or for the performance of a
task performed in the organization.
Common Modes of Payment
1. Payment for time worked- employees are paid on the basis of time worked.
Adjusments on Payments based on: 1. Across-the-board increase 2. Merit increase 3. Cost-of-living
allowance 4. Seniority pay
2. Flat rates
3. Compensation through incentives: a. Merit pay b. Piece rate pay c. Commission d. Group incentives
4. Payment based on skills
5. Payment based on knowledge or credentials
6. Executive Payment
7. Special Payment: a. Overtime Pay b. Holiday Pay c. Premium Pay d. Night differential payment e. Service
Charge f. Severance or Separation Pay g. Retirement Pay h. Thirteenth Month Pay
Employee Benefits
2 main groups: Government-mandated benefits and Voluntary Benefits
Government-mandated benefits- are those required by law
1. Social Secutiry System (SSS) /Government Service Insurance System (GSIS)
2. Employees’ compensation program
3. Pag-ibig (Home Development Mutual Fund) benefits
 4. Philhealth (Philippine Health Insurance Corporation) benefits
5. Service incentive leave
6. Maternity leave
7. Paternity leave
8. Special leave for women
Voluntary benefits- are those that are voluntarily given by the company.
Ex: Vacation leaves, Sick leaves, Emergency leaves, Summer outings, Sportsfest, Rice subsidy, Meal subsidy,
Shuttle service, Hospitalization, Group life insurance program, Bonuses, Profit sharing, Stock options, Christmas
parties/packages, Cash bonuses, Emergency loan, Free uniform and laundry allowance, Executive perks
6.) Performance Appraisal- refers to the process where employee performance is documented and
evaluated. Methods : Objective methods- measures of actual output and performance test
Judgemental methods- include ranking (employees are compared to other
employees) and rating techniques ( compares an employee to a fixed standard)
7.) Employee Movements
• Vertical movement- entails the movement of an employee from a lower position to a higher one (vice
versa)
Promotion- movement to a higher level or position.
Demotion- movement to a lower level or position.
• Horizontal movement- involves the transfer of an employee to another department or position with similar
responsibilities or status.
Transfer- movement to another position but with the same level or scope of responsibility.
• Separation- employee’s departure from the organization.
1. Resignation- employee’s voluntary decision to leave the organization
2. Separation with authorized cause – company’s decision to terminate employees due to business reasons
like redundancy (duplication of functions) and closure of a firm
3. Separation with just cause-this occurs when an employee is terminated due to theft, fraud, and other
serious offenses.
4. Retirement- end of a worker’s employment with the company due to old age, illness or infirmity.
8.) Employee Relations
To maintain harmonious employee relations, there should be harmony, unity, joint effort, fairness and
rapport. The following elements should also be present in an organization: drive for commitment,
harmonization of terms and conditions of employment, emphasis on mutuality, policies and practices for
communication.
LEADERSHIP AND MANAGEMENT
Leadership refers to a process of social influence that enables a person to encourage others and enlist their aid
and support in the performance of tasks in achieving a particular goal.
Directing is the process by which managers instruct, guide, and monitor the performance of employees.
MOTIVATION – is the psychological process of directing behavior.
3 ELEMENTS IN THE PROCESS OF MOTIVATION: MOTIVE, BEHAVIOR, AND GOAL
A.) MOTIVE- is something that arouses or induces an individual to behave in a certain way or do a certain
thing. It is also known as need or desire. It can be internal (based on an individual’s own personal drive
or external (based on forces or influences that are outside of the person). It can also be primary
(physiological needs) or secondary (need for stimulus Ex: curiosity and social needs Ex: power )
B.) BEHAVIOR is comprised of actions aimed at accomplishing or achieving a particular motive or need.
C.) GOAL- refers to achievement or fulfillment of a motive
Example : Hunger (Motive) motivates people to go and search for food (Behavior).
A hungry person found some food and has eaten it (Goal)