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MANAGEMENT
● It allows managers to see the greater
context and set long and short term
company targets and objectives
● Basically, it means TEAMWORK. The
manager should be able to work with his
subordinates.
● It is essential that in any organization, the
leadermanager must realize
importance of people working
harmoniously with the aim of effectively
reaching the target goals of the company
Process: of getting things done effectively and
efficiently, with and through people.
Effectiveness: Doing the right things
Efficiency: Doing things right
The three common characteristics that
organizations share:
Goals: which express the distinct purpose of a
particular organization
People: who make decisions and engage in work
activities to reach the organization’s goals
Deliberate structure: which systematically
defines and limits its members’ behavior
Managers- The people responsible for supervising
the use of an organization’s resources to meet its
goals.
How Are Managers Different from
Non-managerial Employees?
NON-MANAGERIAL EMPLOYEES/OPERATING
STAFFS
● Work directly on tasks and are not
responsible for overseeing others’ work
MANAGER
● Direct and oversee the activities of
others and may have work duties not
related to overseeing others.
● Someone who works with and through
the other people by coordinating their work
activities in order to accomplish goals
● Managers perform certain activities, tasks
or functions as they direct and oversee
other’s work .
5 Functions of Management
(Acronym: POSDICON)
➔ PLANNING
➔ ORGANIZING
➔ STAFFING
➔ DIRECTING
➔ CONTROLLING
PLANNING
● includes identifying the aims & purposes
of the business, its tactics and developing
plans to incorporate and synchronize
activities
ORGANIZING
● a function that ensures that each job or
position is not duplicated and the
corresponding authority is properly
identified with the responsibilities
assigned to the person concerned.
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ORGANIZATION AND MANAGEMENT
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STAFFING Manager, Branch Manager, General

● identifies the qualified potential Manager, Plant Manager etc
employees .
FIRST-LINE MANAGERS
DIRECTING (LEADING OR MOTIVATING) ● Administers the work of operating
● refers to encouraging people to work employees.
towards the attainment of the company’s ● They manage the work of
goals and objectives. non-managerial employees who typically
are involve with producing the
CONTROLLING organization’s products or servicing the
● involves evaluating the actual organization’s customer.
performance, compare it with the ● They are often called: supervisor, shift
standards and take the action needed. manager, district manager, department
manager, office manager
CLASSIFICATION OF MANAGERS
TEAM LEADERS
TOP MANAGERS ● Team leaders are a special category of
● They are in-charge of making lower-level managers that have become
company-wide decisions and setting more common as organizations have
purposes, plans, and objectives that affect moved to using employee work teams to
the whole firm. do work.
● Are responsible for making organization ● They typically report to a first-line
wide decisions and establishing the manager.
plans and goals that affect the entire
organization. AREAS OF MANAGERS
● They are often called: Executive Vice
President (EVP), President, Managing Department/Unit/Division - A group of managers
Director (MD), Chief Operating Officer and employees who work together and possess
(COO), Chief Executive Officer (CEO), similar skills or use the same knowledge, tools, or
Chief Finance Officer (CFO) techniques

MIDDLE-MANAGERS Skills and Competencies of a Manager

● Administers the task of the supervisors
and in his absence, the activities of the
operating employees.
● They manage to work to the first-line
managers
● They are often called: Regional Manager,
Project Manager, Store Manager, Division
Technical Skill – refers to the expertise of the
person in his area of specialization. Possessing
expert job knowledge
Human Skills – refers to how one can blend with
other people. Working well with others

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ORGANIZATION AND MANAGEMENT
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Conceptual Skill – refers to the capability of the

INFORMATIONAL
manager to conceptualize ideas for the entire
organization. Analyze and diagnose ROLE DECRIPTION Identifiable
Activity
Mintzberg’s Managerial Roles
Henry Mintzberg studied CEOs at work and Monitor Manager receives Reading
created a scheme to define what managers do on and collects magazines and
the job. These are commonly referred to as information reports;
Mintzberg’s managerial roles. These can be maintaining
grouped into three primary headings: personal contacts
interpersonal, informational and decisional
Communi Manager Holding meetings;
cation distributes making phone
INTERPERSONAL
(Dissemin information calls to relay
ator) within the information;
ROLES DESCRIPTION Identifiable
organization email/memos
Activity

Spokespe Manager Holding board

Figurehead Manager serves as Greeting visitors;
rson distributes meetings; giving
an official signing legal
information information to the
representative of documents
outside the media
the organization
organization
or unit

Leader Manager guides Staffing,

and motivates training
staff and acts as a DECISIONAL
positive influence
ROLES DESCRIPTION Identifiable
in the workplace
Activity
Liaison Manager interacts Acknowledging
Entreprene Manager Organizing
with peers and mail/email;
ur initiates sessions to
with people serving on
change develop new
outside the boards;
programs;
organization to performing
supervises
gain information activities that
design of
involve
projects
outsiders

Disturbanc Manager Steps in when

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ORGANIZATION AND MANAGEMENT
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● Carefully select workers with the right

e Handler decides how an employee
abilities for the job. •
conflicts suddenly
● Carefully train these workers and provide
between leaves or an
proper incentives.
subordinates important
should be customer is ● Provide these workers with the necessary
resolved lost support.
● Taylor emphasized the importance of
Resource Manager Scheduling; using the “One-best method” in order to
Allocator decides how the requesting systematize the process of creating a
Negotiator organization will authorization; product.
use its budgeting ● He also initiated the “Differential Rate
resources Participating System” wherein he encouraged the
Manager in union owner of the company to increase the
decides to contract wages of workers who are considered to
negotiate major negotiations be productive
contracts with or in those ● Taylor’s followers – the husband & wife
other with suppliers tandem named Frank & Lillian Gilbreth
organizations or devised the Scientific Management theory
individuals later on

Contributions of Scientific Management theory

Evolution of Management Theories a. Production miracle
b. Efficiency techniques
Management existed many years ago although c. Encouraged the managers to seek the
during those times the term “manager” doesn’t “one best method” of getting a job done.
exist.
INDUSTRIAL REVOLUTION came in when
Limitations of Scientific Management
machinery was introduced during the
pre-twentieth century. This resulted in mass Theory
production and expansions of factories. In effect,
these developments demanded formal a. Poor performers were laid off as well as the
management guidelines in order to guide increased production resulted from terminating the
managers. Thus, the emergence of Management services of some workers.
Theories. b. Changes in piece-rate left the workers
producing more output for the same income.
Scientific Management Theory (Frederick Taylor) c. Stress & tensions among the workers speed up
their work
● Develop a science for every job, including
d. Social needs of the workers were overlooked.
rules of motion, standardized work
e. Unionism emerged due to the exploitation of the
implements, and proper working
workers. There was also the exploitation of
conditions. •
customers in terms of product quality.

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Henry Gantt
an associate of Taylor; he abandoned the
“differential rate system” due to its small incentive
effect on production; he also initiated the charting
system for production scheduling known today as
the Gantt chart. It refers to a table or diagram
that reflects the status of the stages of
production.
Frank & Lillian Gilbreth
This husband and wife tandem made a device
called MICROCHRONOMETER. It is intended to
identify the hand-and-body motions of a laborer
primarily to determine the length of time spent
doing each motion.
General Administrative Theory
➔ The study of how to create an
organizational structure that leads to
high efficiency and effectiveness
➔ This was developed by Henri Fayol to
address the issue as to how a complex
company such as factories can be
managed efficiently and effectively.
Rules, SOP’s and Norms
➔ Rules – formal written instructions that
specify actions to be taken under
different circumstances
➔ Standard Operating Procedures (SOPs)
– specific sets of written instructions
about how to perform a certain aspect of
a task
➔ Norms - unwritten, informal codes of
conduct that prescribe how people should
act in particular situations
Fayol’s Principles of Management
1. Division of Labor: allows for job specialization. •
jobs can have too much specialization leading to
poor quality and worker dissatisfaction.
2. Authority and Responsibility -Authority means
the power or the right entrusted to make the work
possible. Responsibility means the duty of work
assigned to a particular position. The two terms are
inseparable.
3. Unity of Command –There must only be one
superior that gives directives/orders to employees
to avoid confusion.
4. Discipline – giving respect and comply with the
policies of the organization.
5. Unity of Direction – an organization should have
a single plan of action to guide its manager and
employees.
6. Subordination of individual interest over
general interest – the welfare of the organization
should come first over that of the interest an
individual.
7. Remuneration (Salary/Wage) – compensation
must be fair.
8. Centralization – authority is concentrated at the
top hierarchy of an organization.
9. Scalar chain – pertains to the sequence of
positions from the highest to the lowest rank.
10. Order – people (HR Dept.) and materials/office
supplies (Purchasing Dept.) should be in the right
place at the right time.
11. Equity – respect, fairness, impartiality
12. Stability of tenure – the organization should
promote long term employment. (Contractual,
probationary, Regular, Tenure)
13. Initiative – subordinates exercising creativity
without directives from subordinates . Managers
should encourage them to propose and execute
their ideas or plans
14. Esprit de Corps –French word which means
“Unity is strength . ” Managers should promote
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ORGANIZATION AND MANAGEMENT
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team spirit and each employee should be a team
player
Max Weber
● A German theorist who introduced
BUREAUCRACY – a form of the
organization that emphasized division of
work, the rules and regulations, chain of
command and impersonal work
relationships.
Mary Parker Follet
● She stressed the significance of belonging
to a group as a way for people to grow in
the organization.
Organizational Behavior Theory
● A theory that refers to the behavior of
people at work.
● Contributors to this theory include
Chester Bernard, Mary Parker Follet,
Robert Owen, and Hugo Munsterberg.
● The best approach to work and
productivity is through the understanding
of the worker. Hence, the manager is
expected to be good in human skills.
Human Resource Approaches
Basic Assumption: People are Social and
Self-Actualizing by Elton Mayo.
The Hawthorne Studies
• Established the human resource as an essential
concern for management, and one that has unique
properties.
• We learned that the nature of the Work Group
should be important.
• We learned about the tendency of people who are
singled out for special attention to perform as
anticipated merely because of expectations
created by the situation
Building a Positive Organizational
Culture
•Organizational culture
-A set of shared values and norms that support the
management system and that guide management
and employee behavior.
-We also call it Corporate Culture.
Example of fabulous Work Culture
• Netflix – Where Trust is the Keyword of Culture •
Wonder why Netflix makes to this organizational
culture examples list? Because they actually trust
their employees! They trust their employees to put
in their best efforts at work. Unlike most
organizations, Netflix doesn’t measure employees’
efforts by the number of hours they work, but
rather on the end product they deliver. In turn,
employees love this sense of trust and flexibility.
What Sets Them Apart:
• Did you know that Netflix has no set schedule, but
offers unlimited vacation days to its employees?
It’s not for all companies and certainly easier said
than done. Netflix’s culture was set up and
formulated in its early days of existence by Patty
McCord with a 124-page slideshow known as
‘Netflix Culture: Freedom & Responsibility‘. The
company culture has got its own share of
naysayers but the fact remains that people love
working for them.
Why study management?
➔ The universality of management- The
reality that management is needed in all
types, sizes, level, areas of organizations.
➔ The reality of work You will either
manage or be managed in your future
career
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ORGANIZATION AND MANAGEMENT
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➔ Rewards and challenges of being a
manager
➔ Helps people deal with their bosses and
coworkers
➔ Opens a path to a well-paying job and a
satisfying career
ORGANIZATION
A group of people working together to accomplish
some specific purpose/goals.
Organizational system
consists of an assortment of interacting
mechanism (resources/people) that acquires
inputs (goals) from the outside environments,
processes them (structure and processes) and
creates an output (Product/services) to be
consumed back by the outside environment
(customers / consumers / clients = buyers/final
or end-users).
The Basic Tasks of Organization
● Achieving high levels of productivity
requires SPECIALIZATION
● Specialization by individuals necessitates
COORDINATION
● For coordination to be effective requires
COOPERATION
● But goals of employees == goals of
owners THE ORGANIZATIONAL
PROBLEM
THE ORGANIZATIONAL CHALLENGE:
To design structure & systems that:
● Permit specialization
● Facilitate coordination by grouping
individuals & link groups with systems
of communication, decision making, &
control
● Create incentives to align individual &
firm goals
BUSINESS ENVIRONMENT
Environment refers to all internal and external
factors which have a bearing on the functioning of
the business. It refers to those aspects of the
surroundings of business enterprise and
circumstances of business unit which affect or
influence its activities and operations and decides
its effectiveness.
External environment: everything outside an
organization’s boundaries that might affect it. The
uncontrollable environment.
Internal environment: the conditions and forces
within an organization. The controllable
environment
Aspects of the business environment:
Microenvironment/internal: Actors close to the
company Macro-environment/external: Larger
societal forces
The Internal Environment
Owner: someone who has legal property rights to a
business.
Board of directors: governing body elected by a
corporation’s stockholders and charged with
overseeing the general management of the firm.
Employees: those employed by the organization.
Physical work environment: the firm’s facilities.
Internal Environment / Microenvironment
➔ It includes forces affecting operations
that are within the control of the
company, that is, the company is able to
manipulate these forces towards the
firm’s advantage.
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ORGANIZATION AND MANAGEMENT
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➔ The internal environment consists of
five (5) equally powerful forces, namely,
Management, Marketing, Finance,
Production and Operations, and Human
Resources
The Microenvironment
Management - This refers to the organizational
setup, including objectives and goals, managerial
composition, company philosophy, organizational
structure, policies and programs, plans, tactics and
strategies, and visions missions etc.
Marketing - is the process of teaching consumers
why they should choose your product or service
over those of your competitors, and is a form of
persuasive communication.
Finance - This contains the resources of the
company. Items covered under this are financial
performance, profitability indices, balance sheet,
and income statement results, and operating
expenses, among others.
Production and Operations- This includes all
aspects of manufacturing (pertaining to industries)
or operations (for commercial and service
enterprises). Specific items falling under this force
are quality and sources of raw materials,
machinery and equipment, production efficiency,
service reliability, technical expertise, production
credo, scheduling, delivery, sales service,
maintenance, factory location, etc.
Human Resources- This aspect pertains to the
people in the organization. Specifically, it includes
motivation, compensation, training and
development, promotion, recruitment, selection,
placement, hiring policies and procedures, fringe
benefits, performance appraisal, grievance
handling mechanisms, management-labor
relations, etc
External Environment / Macroenvironment
factors, forces, situations, and events outside the
organization that affect its performance.
The General Environment
Economic environment: the overall health and
vitality of the economic system in which the
organization operates.
Resources Supporting Economic Systems (1)
➔ Economics
Production, distribution, and consumption of goods
and services to satisfy wants and needs
Market-based systems interact through sellers and
buyers Supply and demand determines prices
Resources Supporting Economic Systems (2)
➔ Natural capital + Manufactured capital +
Human capital = Goods & Services
The General Environment
Technological environment: This refers to the
advancement of science and technology and
includes discoveries or inventions, research and
development, technological breakthroughs,
scientific experiments, information technology, etc.
➔ McDonald’s Automated Kiosk
➔ Fast Food Chain and Restaurant POS
Systems
Socio-cultural environment: This environment
pertains to people and their culture. Examples of
forces under this type of external environment are
religious affiliations, customs, and tradition,
education, perception, cultural values, ethnic and
racial diversity, demography, etc.
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ORGANIZATION AND MANAGEMENT
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➔ Showing the thumb held upwards in Latin
America, especially Brazil, means
"everything's ok", while it is understood in
some Islamic countries as a rude sexual
sign
➔ Cross cultural communication
➔ The Meaning of Color: Red signifies good
luck and celebration in China, Yellow
indicates a merchant in India, In England
and the U.S., “Something Blue” on a
bride’s garter symbolizes fidelity.
Political-Legal environment: the government
regulation of business and the general relationship
between business and government.
Natural environment: This includes earthquakes
typhoons, the La Niňa and El niῇo phenomena,
deforestation, ozone depletion, pollution,
preservation and extinction of animal species.
The Task Environment
➢ Competitors: an organization that
competes with other organizations.
➢ Customer: whoever pays money to
acquire an organization’s products or
services.
➢ Suppliers: an organization that provides
resources for other organizations.
➢ Regulator: a unit that has the potential to
control, legislate, or influence an
organization’s policies and practices.
Task Environments Continued
Interest group: a group organized by its members
to attempt to influence organizations. (liberal
party)
Strategic partner: an organization working
together with one or more organizations in a joint
venture or other partnership.
➔ Strategic Partners of ColgatePalmolive:
Colgate Philippines, the leading
toothpaste brand in the country, is
continuing its mission to keep Filipino
families strong, healthy and smiling as it
strengthens its commitment to work
collectively with the Department of
Education (DepEd), the Department of
Health (DOH), Local Government Units
(LGUs), and various Public Health Dental
Associations in promoting proper oral
care.
➔ Strategic Partner of Safeguard:
SM Cares and Safeguard team up for the
#SafeHandsAtSM and #SafeMallingAtSM
campaign to educate and encourage
people to practice the five steps of proper
hand washing – especially in this time of
pandemic.
➔ Since 1989, their partnership has granted
a total of 379 scholarships and has
produced 267 medical technology
graduates
FORMS AND ECONOMIC ROLES
A business can be organized in one of several
ways, and the form its owners choose will affect the
company's and owners' legal liability and income
tax payment.
What is a Business Organization
The term "business organization" refers to how a
business is structured. It refers to a commercial or
industrial enterprise and the people who constitute
it
3 Types of Business
1. Service Business
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ORGANIZATION AND MANAGEMENT
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➔ A service type of business provides
intangible products (products with no
physical form). Service type firms offer
professional skills, expertise, advice, and
other similar products.
➔ Examples of service businesses are:
schools, banks, accounting firms, and law
firms or technical skills (repair shops or
salons)
2. Merchandising Business
➔ This type of business buys products at
wholesale price and sells the same at
retail price. They are known as "buy and
sell" businesses. They make profit by
selling the products at prices higher than
their purchase costs.
➔ A merchandising business sells a product
without changing its form. Examples are:
grocery stores, convenience stores,
distributors, and other resellers.
3. Manufacturing Business
➔ Unlike a merchandising business, a
manufacturing business buys products
with the intention of using them as
materials in making a new product. Thus,
there is a transformation of the products
purchased.
➔ A manufacturing business combines raw
materials, labor, and overhead costs in its
production process. The manufactured
goods will then be sold to customers.
Hybrid Business
Hybrid businesses are companies that may be
classified in more than one type of business. A
restaurant, for example, combines ingredients in
making a fine meal (manufacturing), sells a cold
bottle of wine (merchandising), and fills customer
orders (service). In this case, restaurants are more
of this service type – they provide dining services.
Choosing a Form of Ownership
● There is no one “best” form of ownership.
● The best form of ownership depends on
an entrepreneur’s particular situation.
● Key: Understanding the characteristics of
each form of ownership and how well they
match an entrepreneur’s business and
personal circumstances.
Your choice depends on your needs and goals
Sole Proprietorship
is a business owned by ONE person who is known
as the proprietor/owner. The business is prevalent
in retail industry, handicrafts, agriculture, forestry,
fishery, other service or family workshops
➔ Single ownership
➔ No sharing of profit & loss
➔ One man’s capital
➔ Unlimited liability
➔ Less legal formalities
➔ One man control
How can I start one?
● Few legal requirements
● Can be run at home, garage, or van
Examples of Sole Proprietorship
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ORGANIZATION AND MANAGEMENT
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Direct or online selling, freelance writers and
consultants, run a bookkeeping business,
landscape artist or graphic designers, computer
repair shops, local restaurants and shops, and
home-based businesses, day care owner or offer
tutorial services .
Partnership
An association of two or more people who co-own a
business for the purpose of making a profit. The
Philippine Civil Code provides for a definition of a
partnership as follows: Art. 1767. By the contract of
partnership two or more persons bind themselves
to contribute money, property, or industry to a
common fund, with the intention of dividing the
profits among themselves.
Characteristic
➔ Membership
➔ Unlimited liability
➔ Sharing of profit & loss
➔ Mutual agency
➔ volunary registration
➔ Continuity
➔ Contractual relationship
➔ Transfer of interest
Types of Partnership
General partners- Take an active role in managing
a business. Have unlimited liability for the
partnership’s debts. Every partnership must have
at least one general partner
•Limited partners- Cannot participate in the
day-to-day management of a company. Have
limited liability for the partnership’s debts
How to register a partnership business in the
Philippines
1. Register Your Business Name at the Securities
and Exchange Commission (SEC)
2. Obtain a Barangay Clearance
3. Register with the Social Security System (SSS)
4. Obtain Permit from the Mayor’s Office
5. Register Your Business with the Bureau of
Internal Revenue (BIR)
•Additional requirements
➔ Endorsement/clearance from other
government agencies, if applicable
➔ For partnership with a foreign national as
a partner (FIA Form - 105)
Corporation- A business that is chartered by a
state and legally operates apart from its owners. It
is typically owned and controlled by its
shareholders/stockholders who have purchased
units of shares of the company. Corporations can
either be stock or non-stock and are controlled by
the Board of Directors or Trustees. Registration of
corporations is with the SEC
Corporations- Basic Concepts
➔ Small portions of corporate ownership
that are owned publicly are called stocks
or shares. Individuals who own shares of a
➔ Corporation are called shareholders and
become owners of the business.
Shareholders have limited liability. A
board of directors runs a corporation that
is owned by shareholders.
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ORGANIZATION AND MANAGEMENT
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➔ A publicly traded corporation that makes Health and Nursing Services, Social
a profit may pay out dividends to Services and the Volunteer Services.
shareholders ➔ An international, non-sectarian
organization advocating for the cause of
street children throughout the world.
ADVANTAGES DISADVANTAGES ➔ Haribbon Foundation- Protecting nature.
Protecting Life. Committed to nature
Lmitited liability Double taxation conservation through community
empowerment, and scientific excellence.
Transfer of ownership Forming a corporation franchise
a contractual agreement to use the name and sell
Perpetual life Disclosure of the products or services of a company in a
information designated geographic area. To run a franchise,
you have to invest money and pay franchise fees or
External source of Employee-owner
a share of the profits
funds separation

Expansion potential Franchising- refers to the method of practicing

Cooperative
an organization that is owned and operated by its
members. The purpose of a cooperative is to save
money on the purchase of certain goods and
services. It is formed so that members have
advantages in buying and selling products and
services.
and using another’s perfected business concept. In
a franchise relationship, the franchisee (individual
merchant) is granted the right to market a product
or a service under a marketing plan or a system
that uses the trademark, name, logo and
advertising owned by the franchisor (company
owned or Mother company).

Franchisor / Franchiser - the person or mother

Nonprofit organization
company that grants the franchisee the right to do
a type of business that focuses on providing a
business under their trademark or trade name.
service, not making a profit. A nonprofit
organization does not pay taxes because it does
Franchisee - the person or company that gets the
not make a profit
right from the franchisor to do business under the
➔ SM FOUNDATION- WE CARE for the
franchisor’s trademark or trade name and benefits
education of our youth. We give college
from it.
and technical-vocational scholarships to
deserving and qualified students, and Franchise Agreement - the legal, written contract
build school buildings for underserved between the franchisor and franchisee which tells
communities. each party what each is supposed to do
➔ The PRC provides six major services:
Blood Services, Disaster Management Types of Franchising
Services, Safety Services, Community

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ORGANIZATION AND MANAGEMENT
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.Product franchising 5. TGP- Pharmacy, P290,000-750,000, RF:

1% gross sales
➔ Also known as trade name franchising.
➔ - Type of franchising wherein a
manufacturer grants a franchisee the
right to sell its products, but with no IMPORTANCE OF PLANNING
method of doing business.
➔ - Examples of this type of franchising are
car dealerships and service stations. Planning: The primary management function.
refers to the method of assessing in advance the
purpose and goals of an organization and the
appropriate courses of action to help achieve the
Business Format Franchising said purpose and goals.

➔ Also identified as a name and process

Purposes of Planning
franchise.
➔ It can provide direction to managers and
➔ Aside from granting the right to use the
staff.
name and market the products and
➔ It reduces improbability
services of the franchisor, the franchisee
➔ It lessens waste and redundancy
is also provided a complete plan for
➔ It sets the standards used in controlling.
managing and operating the business – a
➔ Formulate a decision from several
transfer of the proven way of doing
alternatives
business that has been developed by the
franchisor
TYPES OF PLANS
➔ This plan often includes a full range of
Robbins & Coulter, 2016 identified the most
services, including site selection, training,
popular ways to describe organizational plans
product supply, marketing plans and even
assistance in obtaining financing.

Breadth Time -frame Specificity

2022 Top 5 Franchises Ranking in the Philippines
Strategic Long-term Directional
1. Jollibee- Fast food, P1.3 - P2.5M Cash ,tactical, plan, & specific
Requirement: P750,000, RF: 5% (Net of operatio intermediat plan
sales) nal plan e plan, short
2. Potato corner- french fries, NO RF just term plan
monthly service: P5k
3. 7/11 convenience store- P3.5M - 5M Breadth
RF: 5%
4. Petron- petroleum, P1M-2.5M + CASH Strategic plans – applies to the whole organization
BOND: P100,000 create the company’s overall goals and seek to
place the firm in terms of its environment.

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ORGANIZATION AND MANAGEMENT
ABM THIRD QUARTER / SECOND SEM

➔ For Example – Strategic Plans consist of

Type Created Scope Includes Level of
the Vision, Mission, Values, and
of Plan by: detail
overall-Objectives of the organization.
These are the key elements that clearly Strateg Top Entire Mission Very broad
define the state of the business in terms ic Plan Manage organi of the and
of what to achieve in the future. ment zation compan general
y, future
Tactical plans – are formulated to create the
goals
blueprint for the strategic plan. These plans clearly
and
define how the strategic plan will be implemented
ambition
➔ For Example – Managers of the company s
create plans to allocate required
Tactica Mid-Lev Single Specific Specific
resources to support the strategic plan.
l Pla el Are of actions actions and
HR Manager make plans to manage
Manage the to ideas, but
Human Resources of the company.
ment busine support not very
Production managers make plans to
ss as a or work detailed
smooth the production process of the
whole towards
business.
(divisi the
on of strategic
Operational plans – plans that specify the the plan
information of how the overall goals are to be comp
attained. any)
➔ For Example: Team leaders have to
manage daily shift timing schedules and Operati Low-Lev A unit Specific Extremely
allocate tasks to their subordinates, onal el within plans for detailed
Supervisors make strategies to reach daily Plan Manage a low level (who, what,
targets that should be completed ment single and where and
according to the daily plan area day-to-d when)
of the ay
busine activities
Contingency Plan- An operations team may ss ( a and
develop a contingency plan as part of risk depar processe
management. A contingency plan lists risks tment s that
together with an estimate of their probability and within will
the steps required to reduce each risk. a support
divisio and
3 Levels of Planning n enable
the
tactical

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ORGANIZATION AND MANAGEMENT
ABM THIRD QUARTER / SECOND SEM
plan
Time Frame
Short-term plans
➔ planning includes operational objectives
for specific departments and individuals.
➔ -These plans are created by Supervisors
and Team Leaders. And they have to
report their manager of the department. -
➔ It has a time period of 3 to 6 months or
within a year.
Intermediate plans
➔ period ranges 1-5 years.
➔ Middle-level managers are involved in the
intermediate-term plan and they report to
top management before the
implementation of these plans
Long-term plans
➔ plans beyond five years.
➔ Top management is involved in the
formulation of Long term plans.
Specificity
Directional – plans that are bendable and that set
out universal guidelines.
➔ Example: the Sales Manager provides a
guideline to his subordinates to the
expected target and now how
subordinates will achieve that it’s up to
them. They are free to opt for any mode of
practice. Hence we can say that the
Directional plans are outcome focus
Specific – plans that are visibly defined and leave
no room for explanation.
➔ Example : the Production Manager
briefing the plan to his subordinates as to
what, when, where, how much, and by
whom task will be performed. Hence we
can say that the Specific Plans are
Process Focused.
Frequency of use
➔ Single-use plan – A one-time plan
specifically designed to meet the needs of
an exceptional situation. Examples are
projects, budgets, and targets.
➔ Standing plan – Ongoing plans that
provide direction for activities performed
over and over again. Examples are
organizational mission, and long term
objectives, strategies, policies, procedures
and rules
ROLES OF PLANNING & CONTROLLING IN
MANAGEMENT PROCESS
Planning- to set the direction, decide where you
go, and decide how to best go about it.
Organizing- creating structures
Controlling- to ensure results, make performances,
take corrective action
Leading- to inspire effort
PLANNING AT DIFFERENT LEVELS OF THE FIRM
Senior management- policy & strategy
Middle Management- procedure & tactics
Line Management- execution & operations
Planning Techniques & Tools
Environmental Scanning – examines a large
amount of information to predict and infer changes
in the environment.
➔ Competitor intelligence – it seeks to
classify who are the business competitors,
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ORGANIZATION AND MANAGEMENT
ABM THIRD QUARTER / SECOND SEM
its’ strength and as to how their actions
will influence the organization.
Forecasting – predictions of outcomes. It has 2
categories
➔ Quantitative forecasting – applies a set
of mathematical rules to a series of past
data to foresee outcomes.
➔ Qualitative forecasting – It uses the
judgment and opinions of knowledgeable
individuals to predict outcomes.
Benchmarking – the quest for the best practices
among the competitors or noncompetitors that
lead to their higher performance
Decision Making- Choosing the appropriate course
of action among alternatives to generate the
desired outcome
The Manager as Decision Maker
● Almost everybody in an organization
makes decisions from the lowest level to
the highest level of management. In fact,
even rank and file employees do make
decisions.
● Managers, as to be expected, are
expected to become the decision-makers
simply because their positions require
them to do so.
ORGANIZING
A management function which involves assigning
tasks, allocating resources, and coordinating work
activities in order to achieve a common purpose
ORGANIZATIONAL STRUCTURE- specification of
the jobs to be done within an organization and the
ways in which they relate to one another
ORGANIZATIONAL CHART-A diagram that shows
how employees and tasks are grouped and where
the lines of communication and authority flow
WHAT DOES AN ORGANIZATION CHART SHOW
The management structure and main departments
within an organisation
➢The relationship between departments
➢The reporting structure
➢The span of control of each employee (the
number of people a person has responsibility for)
WHO WOULD USE AN ORGANIZATION CHART?
➢Visitors to the organisation
➢New members of staff
➢Receptionist/ Concierge/Customer Service
CHAIN OF COMMAND
➔ Reporting relationships within a company
➔ It is used for the purposes of overall
accountability and responsibility in the
attainment of stated objectives and goals
through the use of orders one direction
and reports of conformity in the other
direction.
➔ Board of Directors- Managing Director
Sales Director -Sales Manager
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ABM THIRD QUARTER / SECOND SEM

➔ Authority pertains to the right inherent in

a managerial position to communicate to
Characteristics of Organizing people what to do and to expect them to
do it. In the chain of command, managers
1. Orientation towards goals - all Business
have authority to do their job of
organization has its own objectives and
overseeing and coordinating the work of
purpose. Organizing is structuring and
others
arranging work to accomplish the goals of
➔ Responsibility refers to an employee's
an organization. Organization
obligation or the expectation to perform
complements the individual objectives of
any assigned duties or activities.
the employees with overall goals of the
➔ Accountability is the requirement to
firm.
show performance results to a supervisor
2. Composition of individuals and groups - in the chain of command
Individuals create a group and the groups form an
organization. Hence, the organization is the
combination of individuals and groups. Individuals Forms of Authority
are grouped into departments and their work is
coordinated and directed towards organizational Line Authority - organizational structure in which
goals. authority flows in a direct chain of command from
the top of the company to the bottom
3. Continuity - An organization is a group of people
with a definite connection in which they work
together to achieve the goals of the organization.
This connection does not come to conclusion after Staff Authority- authority based on expertise that
finishing each task. Organizing is a never-ending usually involves counseling and advising line
process. managers

4. Division of work and specialization- The Staff Members- advisers and counselors who help
complete thinking of the organization is focused on line departments in making decisions but who do
the concepts of work specialization and division of not have the authority to make final decisions
work/labor division of work is a breakdown of jobs
Departments- Unique group of resources
into narrow and monotonous tasks handing over
established by management to perform
responsibility for each organizational element to a
organizational tasks
specific individual or group of people thereof. It
becomes work specialization when the job for a
specific task lies with a chosen expert in that field.
Unique group of resources established by
management to perform organizational tasks

THREE CONCEPTS A. Activities grouped by common function

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ABM THIRD QUARTER / SECOND SEM
B. All specific skills and knowledge are
consolidated
C. Promotes economies of scale
D. Slow response to environmental changes
E. Prevalent approach but few companies
can respond in today’s environment
without horizontal linkages
Functional Departmentalization dividing an
organization according to groups’ functions or
activities
Geography Departmentalization
Geographic Departmentalization dividing an
organization according to the areas of the country
or the world served by a business
➔ Organizing to meet needs of
users/customers by geography
➔ Many multinational corporations are
organized by country
➔ Focuses managers and employees on
specific geographic regions
Product Departmentalization
Product Departmentalization dividing an
organization according to specific products or
services being created
➔ Divisions organized according to
products, services, product groups
➔ Good for achieving coordination across
functional departments
➔ Suited for fast change
➔ Loses economies of scale
➔ Lacks technical specialization
Customer Departmentalization dividing an
organization to offer products and meet needs for
identifiable customer groups
Matrix Departmentalization- Multi focused with
strong horizontal linkage
Conditions for Matrix:
➔ Share resources across the organization
➔ Two or more critical outputs required:
products and technical knowledge
➔ Environment is complex and uncertain
Allows organization to meet dual demands .
Largest weakness is that employees have two
bosses and conflicting demands
Virtual Teams- A virtual team, also known as a
geographically dispersed team or a remote team, is
a group of people who interact through electronic
communications.
➔ Members of a virtual team are usually
located in different geographical regions.
Since communication is not in-person,
trust and good communication are crucial
to the success of a virtual team
Flat and Tall Organizations
Flat Organizational Structure - characteristic of
decentralized companies with relatively few layers
of management
• Tall Organizational Structure -characteristic of
centralized companies with multiple layers of
management
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Span of Control

● number of people supervised by one

manager.
● The distribution of authority in an
organization also affects the number of
people who work for any individual
manager.

The Delegation Process

Delegation - process through which a manager

allocates work to subordinates

1. Assigning responsibility - the duty to perform

an assigned task

2. Granting authority - the power to make the

decisions necessary to complete the task

3. Creating accountability - the obligation

employees have for the successful completion of
the task

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