Department of Education Many SME’s young entreprenuers and students alike aspire to be

Saint Ignatius Loyola Academy like the already established business tycoons of the country in the likes
Liloan, Southern Leyte of Henry Sy. John Gokongwei, and Jaime Zobel de Ayala. Let us study
and define each functional areas and discover why they are important in
the organization’s success.
Learning Materials in Organization and Management 11
Quarter 2 • Week 11
Career Anchors

Edgar Henry Schein a former professor at the MIT Sloan School of

Name of Student: ___________________________ Grade & Section:_____________ Date:__________ Management developed the idea of a career Anchor.
MELC: *Explain the nature and role in the firm of the following functional areas of
A career anchor is one's self-concept and consists of one's perceptions of
management: a. Human Resource Management b. Marketing Management c.
Operations Management d. Financial Management e. Material and Procurement
one's talents and abilities, one's basic values, and one's perceptions of
Management f. Office Management g. Information & Communication Technology motives and needs as they pertain to career
Management (https://en.wikipedia.org/wiki/Edgar_Schein)
CONCEPT: ⦁The Different Functional Areas of Management His original research in the mid -1970s yielded five possible career
anchor composition as follows:
LESSON 11 The Different Functional Areas of Management

The Specialized Functional Areas of

Management
The Management expertise in the general functions of
management such as; planning, organizing, staffing, leading and
controlling is a great factor to determine success of the business. Aside
from this, the Management should also be skillful in the specialized
functions of management. These areas includes: human resource
management, marketing management, Operations management, financial
management, material and procurement management, office
management, and information & communication technology management.
Specialized skills in the above-mentioned areas are crucial to
ensure success and development in both small and big businesses. The
higher the skills of the Management in the general and specialized areas,
the better chance for the business to thrive and ensure success.
1. Autonomy or independence -
People chose to be independent and work their way to
success. They set their own rules and work according to it at
their own pace and totally independent. These are the people
who tends to be consultants or independent businespersons.
They have a hard time following rules like wearing company
uniform and company policies
2. Security and Stability
These are the people who love secure jobs and success.
Good salaries and benefits like housing and clothing
allowances, insurance and bonuses. No matter how skillfull
they are they prioritize job offers that could secure their
continous financial needs and a brighter future for them and
their loved ones.
 3. Technical-functional competence
These highly skillfull individuals love to be challenged
and they want to get the higher position within the field of
their expertise. They may reject Managerial positions because
they always want to practice their expertise in their respective
fields like Engineering, Accounting, Quality control and
statistics.
4. General managerial competence
These people wants to lead and make decisions.
They only feel satisfied when they are promoted to general
manager positions. They always exercise their problem solving
skills and want other people feel their influence in every thing
they say and do. They considered themselves successful when
they see that the business organization they lead is also
successful.
5. Entrepreneurial creativity
These people feel satisfaction when they create new
innovative business or products. Starting up something new
creatively is most important to them. They considered money
as secondary as compared to the reward they get in starting up
something new in the business world.
Additional studies made in the 1980s identified three additional
career anchors composition:
6. Service or dedication to a cause
These people put their attention in serving other people.
They love to do things for other people benefits. They adhere
and completely believe what the scriptures has said about
service. People in this professions are Preachers or Pastors,
Social workers, Doctors, Lawyers, nurses and teachers. They
may not be necessarily religious but they believe in uplifting
other people lives is more important than their self
improvement.
7. Pure challenge, and
People who delight in challenges. They are competitive.
They are happy and satisfied when they beat their toughest
opponent in tough situations. For them any job that is
challenging is acceptable.
8. Life style.
People who value work and family at the same time. They Prefer flexible
work shifts that would fit their daily time table. Personal and family life
is as important as their career and they want to be successful in both of
them.
Functional Areas of Management in the Organization
1. Human Resource Management –
The main job of Human Resource Department is to hire skilled
employees needed in the different departments of the organization.
Other jobs include training of personnel in order to acquire necessary
skills needed to qualify and perform efficiently in the organization. This
is to ensure personal growth within the staff and also with the rank and
file.
Hiring of semi-skilled employees is also one of their big task.
They see to it that the apprentice receives 75% of the current minimum
wage as their salary as stated in the Philippine labor laws and upon
completion of the 6 months’ apprenticeship program, the company can
hire them as their regular employees.
Preparation of semi-monthly or monthly payroll is also one of their
responsibility. The Philippine Labor Laws prescribed the minimum wage
that every employee should receive and also the different benefits that
they are entitled to including bonuses and 13 th month pay. The
timekeeper sees to it that she has an accurate record of the time they
worked for the whole week and compute for their salaries in accordance
with the law.
Work rendered beyond eight hours is considered as overtime. A
worker is entitled to receive additional 25% in every overtime hour. For
example, a worker’s regular time is from Six in the morning until 2 in
the afternoon (6:00am-2:00pm). This is already an eight-hour regular
work. Any working hour beyond this eight-hour period is considered as
overtime and hence a worker will receive an additional payment of 25
percent.
Overtime work on the employee’s rest day will entitle the worker to
receive additional 30% for that day. For example, if you are receiving
P450 as your basic salary, you will receive an additional 30 percent for
that rest day work.
Works during holidays will entitle the worker to receive double
pay. In the above example, if the worker happened to work in a holiday
he/she will receive P900 on that day as his salary (double pay),
(P450+450). In case the worker rendered overtime on that holiday, the
company needed to pay is based on the Labor laws computation of
holiday overtime.
These are just some of the works that the Personnel department is
responsible to perform in accordance with the law and company policy.
Workers on a graveyard shift (night shift) will also compensated based
on the law that is provided.
Other task they are responsible includes keeping of personal
records of each employee. They also see to it that the company is paying
every benefit that the law requires, like SSS (Social Security System),
Pag-Ibig Fund, and Phil-health. They also need to register every
employee at the BIR (Bureau of Internal Revenue) for tax purposes.
The company has also responsible in handling the worker’s
demand through their union association. The union association usually
ask the management for salary increase and other benefits. A conflict
between Management and Union labor Association may sometimes arise
in some difficult situation.
Human Resource department is a vital functional area that is
responsible to recruit skilled and semi-skilled employees that the
company could utilize to achieve its goals. Training is given to those in
need to further enhance their capabilities to be better workers of the
company. One of the Human Resource job is to ensure job satisfaction
among the workers.
2. Marketing Management
Marketing department is in charge of the sales, advertisements,
and promotions of new products being developed by the company. Aside
from this, production is also one of the concern of marketing people,
since the bulk of sales that the company make will primarily depend on
the output of production department. Their primary duty is to find
buyers/customers that will patronize the company products. They see
to it that existing customers are being taken care of. It means, any
complain the customers may have will immediately address and be given
immediate solution.
Advertising is an effective tool to attract buyers and or customers.
Advertisements nowadays becomes easy because of social media.
Almost all people in the world have access in social media especially
here in the Philippines. The interaction between the buyer and seller
becomes fast. This way any complain that the customer has can be
address immediately. Online selling is also one of the blessings of
modern technology. Individuals and business increased their customers
due to the development of online selling.
Big companies have their own marketing and sales department to
take good care the job of finding buyers and selling their products.
They oversee the various activities of the Marketing department.
There are various positions in the Marketing department that helps
and support the business. We have the Marketing Director who is
responsible in managing the whole marketing operations of the
business. Big knowledge in advertising, finance, and planning are very
important in this position.
Marketing Managers on the other hand are responsible with
developing of ways to improve the brand by evaluating the demand for
the product or service. They keep an eye with the behavior of their
competitors and find various ways to maintain the demand for the
brand.
Public relations managers on the other hand, are responsible to
promote the company to maintain its reputation and performance.
Good publicity makes the company maintains its good image in the
market and its distance from its competitors.
The different ideas and strategies applied in marketing includes
advertisements, commercials, and campaigns. Different executives
collaborate to come up with the best way to promote the product the
best way possible. Sales managers set objectives to achieve when it
comes to sales. The sales representative does the actual selling of the
products.
3. Operations Management
Is responsible on crafting a blueprint and regulating production
output. This department has workers that collaborate to each other in
order to carry out the task they are assigned to do. The Production
Manager is responsible with the materials and services needed in the
production process.
Production scheduling is very important task of the Production
Manager to make sure that production deadline can be met. He works
hand in hand with the purchasing department to ensure that production
materials and accessories are bought and available for production.
Lead times should be followed strictly to give enough time for the
supplier to deliver the goods needed in the production. This way, both
purchasing and the production department will have enough time to
perform their task and expect good results.
Maintenance and repair of equipment is also an important task
that the Production in charge is responsible to do. Production inventory
is closely monitored and updated from time to time. The production
system is strictly followed in order to achieve effective and profitable
operations.
4. Financial Management
The finance department is responsible in managing the money
matters of the company. This is very important to ensure the smooth
flow of operation.
The Finance manager is responsible to raise fund and use it in an
efficient way for the business operation. He is also tasked to do life long
and important investment activities of the resources of the company and
allocate the same in achieving the company’s goal the best way possible.
In large companies the head of the Finance department is the
Chief Financial Officer (CFO). The CFO is responsible to report directly
to the Chief Executive Officer (CEO) or the President of the company.
The Finance department personnel includes a Treasurer who is in
charge in the main financial areas of Investment (particularly short-lived
investments and checking it every day) Financing and Asset
Management. He is also responsible to watch over budget preparation
and evaluate the investment chances and the different hazard
associated with it.
The Controller on the other hand is the one who is responsible in
the preparation of Financial Reports such as the Statement of
Comprehensive Income (SCI) or formerly known as Income Statement,
the Statement of Financial Position (SFP) or also known as the Balance
sheet and Cash flows. The Management uses this financial information
to evaluate the financial status of the company. Controllers also are
responsible in overseeing the accounting, audit and budget
departments.
The Finance Manager handles the different tasks of the finance
department and one of this task is the following scope of responsibility:
1. Investment decision
How much of the company resources should put in
safekeeping and how much should be used to improve
productivity.
A careful study is required to determine whether purchasing
a new lot for expansion is better than employing a new
technology to improve production.
What the company needs among these two should be given
the highest priority of investment.
2. Financing decision
A firm decision should be made by the Finance manager
what type of Financing Should the company take to finance its
operations. Should the Finance manager opted to ask for a
loan, he or she should decide how much is the amount and the
interest rate should be determined. The terms of payment
should also be established.
3. Asset Management decision
After bringing in Assets and finally
Opted a financing loan suited for the company’s needs,
the Finance manager takes the responsibility in managing the
funds obtained from investments and loans and see to it that it
would help achieve the company’s goals and will bring profit
with the organization.
Classification of Finance Managers
1. Credit Managers- responsible in the preparation of loan
guidelines and tracking payments of accounts.
2. Cash Managers – Track and create control scheme on the
incoming and outgoing of cash.
3. Finance Managers – are workers of banks, credit companies
and other financial institutions to monitor lending, pledges,
investment and other undertakings related to financial
5. Materials and Procurement Management
Every company has their own procurement department in charge
in purchasing materials and other supplies needed in the production
and other department of the organization.
The purchasing department is involving in monitoring Inventories.
This way they can decide which item is needed to be purchased. The
concern department then will fill out the Material Requisition Form,
once approved, they are now ready to purchase the needed supplies.
Before the Purchase order is prepared, the purchasing department
needs to canvass the price from three suppliers. From these three
suppliers, the company will get the lowest price with the best terms and
conditions.
Many times, the price is not the only factor to consider. The
quality of the product comes first before the price. Other things to
consider, is the time of delivery. When the requirements are met the
Purchase Order is place to acquire the needed materials.
Big projects like repair of building, installation of new machineries
and construction of new structures follows different way in procuring
the services needed. Most if not all business owners apply the
Competitive bidding way of buying goods and services.
Interested suppliers may offer a bid by submitting it to the buyer.
This bid submission shows their willingness to provide the needed
materials and services at a given price.
How does this process take place? The company will issue an
invitation to bid to companies and would be suppliers. The lowest bidder
usually wins in this situation.
 Bidding is done to ensure that the company could avail of the
greatest materials and or services at a reasonable price without
sacrificing the quality of it.
6. Office Management
“Office management, as a function, is that branch of the art and
science of management which is concerned with efficient performance of
office work whenever and wherever that work is to be done.” — William
If. Leffingwell and Edwin M. Rot.
Office management plays an important role in achieving the
organization’s goal of success. Its main purpose is to handle the clerical
part of the different functional departments of the business
organization.
Big companies have their own Administrative office to handle the
transaction of dealing effectively in connecting with people inside and
outside the organization and keeping all the data and information for the
company’s utilization.
This department employee are the secretaries, office managers,
and executive assistants. These staff are expected to perform in an
effective way in order to manage all the information coming from in and
out of the company and effectively do their jobs to reach the organization
goals to succeed.
Importance of Office Management
1. Helps in achievement of targets
Management help people achieve their goals by leading
and guiding them into the things that are helpful like
reporting to work on time and other quantifiable outputs
2. Optimum use of Resource
Maximizing profits is one of the most important
goals an organization can have and they can only do this
if they do things consistently even in the frugal way of
using their resources like raw materials, production and
office supplies. A monitoring log book could be used to
monitor the issuance of office supplies. This is apart
from the stock cards maintain for each office and
production accounts. Stock cards are records of
inventories that includes the incoming and outgoing of
raw materials, office supplies and other stuff.
3. Minimization of Cost
The cost in running the office should be low
enough without sacrificing the quality of work of the
staff. This can be achieve by way of preparing ahead of
time reporting to work on timely manner and the way
they used the machines, electricity and office supplies.
Air-conditioned and electric fans should be turned off
when not in use and same is true with other machines
like photocopier, computers including lightings within
the office.
4. Smooth flow of work
When a system is placed in the office you can
assure that there is continuous flow of work. This is very
helpful and beneficial to all the organization because no
interruptions mean the system is working well for
everybody
5. Provides leadership
Office managers set good example by showing
subordinates which way they should go. They lead their
followers in the path of success and accomplishments.
 6. Managing Change
As what they say, the only constant thing in this
world is change. People in the office may resist change.
But management will explain and show the reason for
the change. This is to hasten work and to keep up with
the fast changing world. The management becomes the
implementer of change.
7. Social benefits
The organization is not the only one who is being
blessed but also the different sectors of the community.
It furnishes the network of the various suppliers and
financial institutions like banks and the different
government division by providing assistance to the
people in various little ways.
The triumph of every organization depends on the competence of its
office. Paper works may come in bulk because of the various
requirements needed but coming up with ways in handling the work will
ensure success of the business.
7. Information and Technology Management
Pertains to the administration of information using computer and
modern technology to expedite the flow of communication inside and
outside the organization. This requires a system to be established. In
this way, the management can easily access customer’s record and
update information such as payment and purchases. There are different
information system in a business organization. Please refer to the
following:
1. Sales and Marketing information system
Involve in studying prices of the product, Sales Projections,
and handling of orders.
2. Finance and accounting information system
Check the company’s properties (assets) cash flows,
Essential in budgeting, accounts receivable, and Financial
planning
3. Human resource system
Monitors the records of the employees, performance, skills
and training and it is being used in analyzing of remuneration
(salaries), cultivation and advancement.a
Activity 1: Post Test
A. In your answer sheet, write T if the statement is correct and write
F if the statement is wrong.
1. A human resource department is responsible for hiring employees
2. Training new employees is important in the success of a
Business.
3. A newly hired employee get a salary as high as a regular employee.
4. The marketing department is responsible for advertising their
products.
5. Production scheduling includes setting up of working time and
how many products should be produced on a daily basis.
6. You can always avail credit from your suppliers to maintain your
operations.
7. The Accounting Manager is responsible in sending communication
to every department.
8. The use of Fax Machine is the most modern technology to
communicate in business.
9. It is the sole responsibility of the purchasing department to
procure materials for production use.
10. The CFO is the head of the finance department in a big company.
11. The main job of the Human Resource Department is to provide
skilled employee for the various departments.
12. Apprentice salaries is equivalent to 80% of the minimum wage.
13. The time keeper is responsible for checking of daily attendance.
14. The Philippines Labor Law required 10 hours regular working
hours every day.
15. An additional 25% will be added to your salary for every regular
overtime rendered

B. Below is the list of the different job opportunities for ABM and
computer courses. As an ABM student, select all the jobs you are
interested in and rank them according to your priority.

Employment opportunities Rank

1. Certified Public Accountant
2. Bookkeeper
3. Personnel Manager
4. Sales Manager
5. Purchasing Manager
6. Account Executive
7. College Teacher
8. Data Encoder
9. Technician
10. Personnel Clerk
 4. _______________________________________________________

5. _______________________________________________________

6. _______________________________________________________

7. _______________________________________________________

8. _______________________________________________________

9. _______________________________________________________

10._______________________________________________________

Department of Education
B.
Saint Ignatius Loyola Academy
Liloan, Southern Leyte Employment opportunities Rank
1. Certified Public Accountant
Answer Sheet in Organization and Management 11
2. Bookkeeper
Quarter 2 • Week 11
3. Personnel Manager
Name:______________________________________________ Date: Dec. 06 – 10, 2021 4. Sales Manager
Grade & Section:_________________________________ Score:_________________________
Teacher: Eric Suco Rivera 5. Purchasing Manager
6. Account Executive
REMINDERS 7. College Teacher
PUT ALL YOUR ANSWERS HERE IN YOUR ANSWER SHEET. DO NOT SUBMIT THE LEARNING
MATERIALS, ONLY THE ANSWER SHEET WILL BE SUBMITTED TO YOUR TEACHER. REFER 8. Data Encoder
TO YOUR LEARNING MATERIALS FOR THE COMPLETE INSTRUCTIONS OR DIRECTIONS IN 9. Technician
EACH ACTIVITY.
10. Personnel Clerk

Activity 1: Post Test

A.
1. _______________________________________________________

2. _______________________________________________________

3. _______________________________________________________