Chapter 1:

AN OVERVIEW OF MANAGEMENT AND

ORGANIZATION
OBJECTIVES:
1.Describe the meaning of management;
2.Identify the scope of management;
3.Recognize the importance of effectiveness and efficiency in organization;
4.Descibe the characteristic of manager;
5.Examine the levels of managers in the organization;
6.Compare the types of managers;
7.Examines the skills required in managing;
8.Identify the various roles of a manager;
9.Describe the nature of an organization;
10.Identify the basic principles of management and organization; and
11.Recognize the importance of educating managers.
WHAT IS MANAGEMENT?
MANAGEMENT
Define as the achievement of organizational
objectives through people and other resources.
Function of Management:
1. Decision making 5.Communicating
2. Planning 6. Motivating
3. Organizing 7. Leading
4. Staffing 8. Controlling
1.Decision making – is the process by which a decision maker
determines the available alternatives and chooses the best
solution that suits a given problem.
2. Planning – the process of establishing objectives and
suitable courses of action before taking action.
3. Organizing – the process of arranging an organization’s
structure and coordinating its managerial practices and use of
resources to achieve its goal.
4. Staffing – refers to the process of recruiting, placing, training,
and developing personnel.
5. Communicating – refers to transferring information from one
communicator to another.
6. Motivating – refers to act of giving employees reasons or
incentives to work in order to achieve organizational
objectives.
7. Leading – is the process of directing and influencing task –
related activities of organization members.
8. Control – is the process of monitoring actual organizational
activities to see that conform to planned activities and
correcting deviations or flows.
Effectiveness and Efficiency: A basic
requirement.
Effectiveness – is central element in the management process, which
requires the achievement of an objective.
For instance:
A manufacturer chooses a supplier who provide needed material at
required time and quantity. The action qualifies as effective.
Efficiency – is also a central element in the management process,
which requires that the minimum amount of resources is used to
achieved an objective.
WHAT IS MANAGERS?
Managers – is one who plans, organizes, leads, and
controls other individuals in the process of pursuing
organizational goals.
Managers vested titles:
- President
- Department Head
- Dean
- Administrator
- Supervisor
- Team leader
THE LEVELS OF MANAGERS:
- managers function according to their levels they are in.
Small Medium Large
organization Organization Organization

Single Top Top

managers Manager Managers

Front Line Middle

Employees
Managers Managers

Figure 1:
Levels of Managers Employees Front Line
Employees
Managers
(by size of organization)
Level of Managers

Top Managers
Middle Managers
Lower Level managers
Top Managers – are responsible for the overall performance of the
organization. They formulate strategies, provide leadership, evaluate and
shape the method of organizing, and control the direction of the
organization in the effort to accomplish goals.
Middle Managers – direct the activities of other managers and sometimes
also those of operating employees. They work with top managers and
coordinate with peers to develop and implement action plans to
accomplish organizational objectives.

Lower Level Manager – are responsible for leading employees in the day-
to-day tasks, which contribute to the organization’s goals.
TYPES OF managers
1. Line Managers
2. Staff Managers
3. Administrators
1.Line managers – are directly concerned with accomplishing the goals of
the organization. The decisions they make with regards to operations are
expected to final and must be implemented.
Ex: the university president, dean, and the department heads all have line responsibilities.
2.Staff Managers – are in-charge of units that provide support to the line
units. In doing their work, they used special expertise to advise the line
workers.
Ex: The director of personnel and the controller.

3.Administrator – are managers working in government or in nonprofit

organizations.
Ex: School administrator, provincial administrator, and hospital administrator.
Management skills
The effective and efficient performance of
management function such planning, organizing,
leading, and controlling are possible only if the
manager is well-equipped with the necessary
management skills.
Management Skills requirements briefly
describe:(Technical, human, and conceptual skills)

1. Technical Skills – the ability to use special proficiencies or expertise in

performing specific tasks. They refer to use of tools, techniques, and
specialized knowledge.
Ex: accountant preparing a financial report, architect working on a building plan, and
professor writing a book.
2. Human Skills – the ability to work well in cooperation with other
persons; whether they are subordinates, peers, or superiors. A person
w/ a good human skills have a high degree of self-awareness and a
capacity for understanding or empathizing with the feeling of the
others.
 The required management skills at
different levels of management:
First Line Managers Middle Management Top Managers
Figure 2:
Management
Conceptual Conceptual Conceptual Skills Needed at
Different Levels
of Management.
Human
Human Human

Technical
Technical Technical

Needs less conceptual
skills in the performance of
his work, and more human
and technical skills.
Need more conceptual
skills, the same degree of
human skill as that of first
line managers, but less on
technical skills
The biggest concern of top manager is on
conceptual skills; the same degree of
human skills as these of first line and
middle managers, and with the list
concern about technical skills.
3. Conceptual Skills – the ability of manager to see the organization as a whole
and to solve problems in ways that benefit the total system. Specifically, the
manager who posses these skills is expected to analyze and solve complex
problem.
- The manager with good conceptual skills will have the mental
capacity to perform the following:
a) identify problems and opportunities
b) gather and interpret relevant information; and
c) execute problem-solving decisions that serve the organization purpose.
Ex: Promulgation of new law ( e.g. the Senior Citizen’s law, or a policy to change the economic
condition of the country; one that addresses the declining prchases power of consumer).
In a company, a manager’s conceptual skills are required in decision such as those that
affect the selling procedures of the organization in choosing where to establish a branch of the
company.
Managerial Roles:
1. Interpersonal Role 3. Decisional Roles
a) Figurehead a) Entrepreneur
b) Disturbance Handler
b) Leader c) Resource Allocators
c) Liaison
2. Informational Roles
a) Monitor
b) Disseminator
c) Spokesperson
1. Interpersonal Role – These are the roles the managers plays when he
interact w/ the others.
Specific Roles under IR
a) Figurehead – when the managers perform this role, he acts as the symbolic head of the
organization and as a result, he is expected to perform a number of duties of a legal or
social nature. Ex: managers cuts the ceremonial ribbon of a company-sponsored project
such as school building.
b) Leader – This role makes the manager responsible for the motivation and activation of
subordinates. As such he is responsible for action in staffing, training, and other associated
duties. He performed the role of leader in virtually all managerial activities involving
subordinates.
c) Liaison – The managers makes contact with individuals in and out of the organization to
facilitate the accomplishment of work in his department. Ex: acknowledgement of mail,
external board work, and other activities involving outsiders.
2. Informational Roles – A very important aspect of the manager’s job is to
receive and communicate information. Such roles are vital to his decision
making tasks. If he wants to his subordinates to improve the quality of their
decisions, he provides them with information.
 In receiving and sharing information, the managers assumes three specific
roles: briefly describes as follows:
a) Monitor – In making the right decisions concerning the various aspect of an
organization, the manager is expected to collect information that will bhe useful
in performing his job. This information is shared with others members of the
organization whenever they are needed.
-In acting as a monitor, he handles all mails and contacts categorized as
concerned primarily w/ receiving information using such sources as news
bulletin, special magazines, and observational tools.
b) Disseminator – There are certain types of information that the manager may
consider useful to his subordinates. When he received such information from
outsider or from subordinates, he transmit them to the concerned members of the
organization.

c) Spokesperson – There are occasions when outsider seek information about the
organization and the manager, as a spokesperson accordingly. He also serves
as expert on organization’s industry.
 To effectively perform the role of spokesperson , the manager sees to it that his
views are heard on occasions requiring his presence such as board meetings.
He also maintains contact w/ outsiders and provides information when they are
required.
3. Decision Roles – The major parts of manager’s job is to make decisions.
As such, he must use the information he processes to make decisions
that solves the problem.
 At decision maker, the manager assumes the following roles:
a) Entrepreneur – The manager searches the organization and its
environment for opportunities and initiates project to bring about
positive change.
- He also supervises the design of certain projects.
- his role as entrepreneur requires his participation in
strategy and review sessions as involving initiative or design of projects
to improve performance.
b) Disturbance Handler – The managers is expected to respond
to such unwelcome pressures by formulating strategies and
reviewing such disturbances.
c) Resource Allocator – The manager is responsible for the allocation
of organizational resources of all kinds such as personnel, funds,
machines, or buildings and facilities to individual employees or units.
As such, he is expected to be actively involved in scheduling , acting
on requests for authorization, budgeting, and the programming of
subordinates 'work.
What is organization?
An organization is a collection of
people working together to
achieve a common purpose. It is
the means used of people to
achieve certain objectives.
 ORGANIZATIONS

GOVERNMENT PRIVATE

CORPORATE NON-CORPORATE PROFIT NOT-FOR-

SEEKING PROFIT
 COMMON CHARACTERISTICS OF
ORGANIZATION
1. COORDINATION OF EFFORT- with coordination and proper direction
people in organization will produce better outputs than they work
independently.
2. COMMON GOAL OR PURPOSE-without common goal or
purpose,organizations run the risk of failure
3. DIVISION OF LABOR-total job is divided into manageable parts and
familiarization with working assignments to avoid poor production.
4. HIERARCHY OF AUTHORITY -in controlling the behavior of
employees , positions are established and linked by a chain of
command in a continuous branching out so that multiple layers exist
in the hierarchy.
 Basic Principles of Management and
Organization
 Management Principles
a. Division of Labor-breaking a job into specialized tasks to increase
productivity.
b.Authority-right of person in position to give orders.
c.Discipline-provides uniform of behavior to certain activities.
d.Unity of Command-each employee must have only one supervisor
e.Unity of Direction-efforts in organization must be coordinated and
focused in the direction
f.Subordination of the Individual Interest to the General Interest- goal
of organization should take precedence over individual goals like a 10%
increase in salaries.
g.Remuneration-employees should be paid fairly in accordance with their
contribution to the organizational effort.
h. Centralization-power and authority must be centralized as much as
predictable.
i. Scalar Chain-subordinates should observe the official chain of command
unless authorized by their respective superiors to communicate with each
other
j. Order-human and non-human resources must be in their proper places.
k. Equity-this is the result of kindliness and justice and is principle to
guide management and employee relations
l. Stability of tenure-to motivate employees to stay with the company.
m. Initiative- management should encourage employees to act on their
own volition when confronted with an opportunity to solve a problem
n. Esprit de Corps – mangers should emphasize teamwork by building
harmony and a sense of unity among the employees.
 PRINCIPLE OF ORGANIZATION
a. Principle of Objective-Objectives in the organization must be
first determined and laid out clearly before any activity is undertaken.
This will serve a guide in determining whether a certain activity is
required or not.
b. Principle of Analysis-analyzing the components to break down the
problem in the organization and come up with a feasible solution.
c. Principle of Simplicity- organization should be built in the
simplest manner that could make the achievement of objective
possible
d. Principle of Functionalization- firms should be built around the
main functions of the business and not supposed to be organized to
accommodate individuals.