CHAPTER 1

ORGANIZATIONS AND
MANAGEMENT

An Introduction
 INTRODUCTORY CASE
R.E. CONSTRUCTION: IT’S NOW or NEVER
 When Engr. Romeo Estabillo finished his Civil
Engineering course at Mapua Institute of
Technology, he took the board examination and
passed it in 1981. Wanting to start independently,
he went back to his hometown (Santiago City) to
organize his own construction firm. In his first few
years of operation, he accepted contracts for the
construction of residential houses. As he gained
experiences, his clients grew in number, and even
the most prominent persons in Province of lsabela
availed of his services.
Continuation….
 At the start, he hired two assistants to help him in his
daily routine as a contractor. One of the two assistants,
Mr. Silvino Santiago, was a third year civil engineering
student who had stopped schooling due to financial
difficulties. His task was as draftsman. His duty was to
produce all documents relating to physical requirements
of the various contracts entered into by boss. Among
the documents are the building plan, specifications, bill
of materials, building permit, etc. His additional duty
was to assist Engineer Estabillo in supervising the
foremen and workers at the various construction sites
Continuation…
 The second assistant, Mr. Romulo Mamaril, was
assigned to coordinate purchasing, bookkeeping,
and other related administrative activities.
 At the third year of operations, Engr. Estabillo was
already directing operations in his newly
constructed office inside his residential compound.
By this time, two more female employees were hired
to assist in the various tasks performed in the office
Continuation….
 By 1994, Engr. Estabillo reviewed his company’s
payroll. It indicated that he has six full-time civil
engineers, two draftsmen, ten administrative
personnel, one messenger, and one security guard.
The foremen and laborers working at the various
projects were contractual
Continuation…
 By June, 1996, Engr. Estabillo felt that business was
continuously growing, so he will have to secure the
services of four additional civil engineers on a full-
time basis. As he was directly supervising all
operations, he now feels that he may not be able to
perform his functions effectively if he will push
through with the plan. He wants to make a decision,
but he is apprehensive. He thinks operations are
now more complex. With this thought, he pondered
on how he will go about solving the problem.
Word for thought:

“Smart people and

smart companies
create their own futures”
Excerpted from Fast Magazines
Organization/s:

 collection of people
working together to
achieve a common Deliberate
Distinct
purpose. Based on Purpose Structure
this definition, an
organization has
People
the following
characteristics:
 Distinct purpose
- goal or set of goals that it hopes to accomplish
- Goal: to produce goods and/or render service
 People
- group of individuals working together with the
same goal
 Structure
- policies, guidelines, regulations etc. that defines
member’s work relationships.
 TRADITIONAL ORGANIZATION VS.
CONTEMPORARY ORGANIZATION
Traditional Organization Contemporary Organization
 Stable  Dynamic
 Inflexible  Flexible
 Job-focused  Skills-focused
 Work is defined by job positions  Work is defined in terms of tasks to be
 Individual oriented done
 Permanent jobs  Team oriented
 Command oriented  Temporary jobs
 Managers always make decisions  Involvement oriented
 Rule oriented  Employees participate in decision
 Relatively homogeneous workforce making
 Workdays defined as 9 to 5  Customer oriented
 Hierarchical relationships  Diverse workforce
 Work at organizational facility during  Workdays have no time boundaries
specific hours  Lateral and networked relationships
 Work anywhere, anytime
WHAT IS MANAGEMENT?
Management:
-Process of reaching organizational goals by working
with and through people and other organizational
resources. Hence, it has the following three main
characteristics:
1. It is a process or series of continuing and related
activities.
2. It involves and concentrates on reaching
organizational goals
3. It reaches these goals by working with and through
people and other organizational resources.
As managers use their resources, they must
strive to be both effective and efficient.
  Managerial Effectiveness refers to
management use of organizational resources in
meeting organizational goals. It is often described
as “doing the right things” – that is doing those
work activities that will help organization reach its
goals.
  Managerial Efficiency is the degree to which
organizational resources contribute to productivity.
It refers to getting the most output from the least
amount of inputs.
Efficiency and Effectiveness in
Management
Efficiency Effectiveness
(Means) (Ends)

Resource Usage Goal Attainment

Low Wastage High Attainment

Management Strives for:

Low Resource Waste (high efficiency)
High Goal Attainment (high effectiveness
 Effectiveness vs Efficiency
Efficient
(most resources Not reaching goals Reaching goals and
contribute to and not wasting not wasting
RESOURCE USE

production) resources resources

Inefficient
(few resources Not reaching goals Reaching goals and
contribute to and wasting resources wasting resources
production0
Ineffective Effective
(little progress toward (substantial progress
organizational goals) toward
organizational goals)
G O A L AT TA I N M E N T
 The Universality of Management
 Management is universally
needed in all organizations. All Sizes of Organizations
Organizations that are well
managed develop a loyal Small Large
customer base, grow and
prosper.
 By studying management, one
will be able to recognize poor
management and work to get All organizational Areas
All types of organizations
it corrected. Manufacturing – Marketing Management is
Human Resources – Accounting needed in
 In addition, one will be able Information Systems – etc.
Profit Non-Profit
to recognize good
management and encourage
it, whether it is an
organization with which one is
simply interacting or whether All organizational Levels
it is an organization in which
one is employed. Bottom Top
WHO ARE MANAGERS?

Manager:
-is someone who coordinates and oversees the
work of other people so that organizational goals
can be accomplished. Serving in positions with a
wide variety of titles, they mobilize people and
resources to accomplish the work of
organizations and their subunits.

A manager’s job is not about personal achievement –

it’s about helping others do their work
Types of Manager in a traditionally
structured organization
President
CEO, COO
Top
VP’s Managers
Divisionl/ Regional
Middle Head/Plant Manager

Supervisor Managers
Team Leader
Line Manager
First-Line Managers Worker
Operators
Laborer
Non-managerial
Employees
Upside-down view of organization

CUSTOMERS & CLIENTS

Ultimate beneficiaries of the organization’s effort

serve

OPERATING WORKERS Client/Customer is

Do the work directly affecting customer/client satisfaction
at the top of the
organization which
support signify that the
company values
TEAM LEADERS
Helps the operating workers do their jobs
them first and
and solve problems
foremost
support

TOP MANAGERS
Keep org’n. mission
& vision clear
WHAT DO MANAGERS DO?
 Describing what managers do isn’t easy or
simple. Just as no two organizations are
alike, no two managers’ jobs are alike.
Despite this fact, management researchers
have, after many years of study,
developed three specific categorization
schemes to describe what manager do:
functions, roles and skills
Management Functions
Planning – defining goals, PLANNING

establishing strategy and Setting performance

objectives and deciding how

developing plans to integrate to achieve them

and coordinate activities.

Organizing – determining
what needs to be done, how it
will be done and who is to do CONTROLLING ORGANIZING

it. Measuring performance and

taking corrective action to
ensure results
THE MANAGEMENT
PROCESS
Arranging tasks, people and
other resources to
accomplish the work

Influencing – motivating,
leading and any other actions
involved in dealing with
people.
INFLUENCING
Controlling – monitoring Inspiring people to work hard
to achieve high performance

activities to ensure that they

are accomplished as planned
Management Roles
 refers to specific categories of managerial behavior. (think of the
different roles you play – student, employee, student group member,
sibling and so forth – and the different behaviors you’ve expected
to play in these roles).

Mintzberg’s Managerial Roles:

 Interpersonal roles – involve people (subordinates and persons
outside the organization) and other duties that are ceremonial and
symbolic in nature
 Informational roles – involve collecting, receiving and disseminating
information
 Decisional roles – entail making decisions or choices; involve using
information to make decisions to solve problems or address
opportunities
 Mintzberg’s Managerial Roles
Role Description Examples of Identifiable
Activities
Interpersonal
Figurehead Symbolic head; obliged to perform a Greeting visitors; signing
number of routine duties of a legal legal documents
or social nature.
Leader Responsible for the motivation of Performing virtually all
subordinates; staffing, training, and
activities that involve
associated duties. subordinates
Liaison Maintains self develop network of Acknowledging mail; doing
outside contacts and informers who external board work;
provide favors and information. performing other activities
that involve outsiders
Negotiator Responsible for representing the Participating in union
organization at major negotiations contract negotiations
 Continuation…..

Informational
Monitor Seeks and receives wide variety of Reading periodicals and
internal and external information to reports; maintaining
develop thorough understanding of personal contacts
organization and environment.
Disseminator Transmit information received from Holding informational
outsiders or from subordinates to meetings; making phone
members of the organization. calls to relay information
Spokesperson Transmits information to outsiders Holding board meeting;
on organization’s plans, policies, giving information to the
actions, results, etc. media
 Continuation….
Decisional
Entrepreneur Searches organization and its Organizing strategy and
environment for opportunities and review sessions to develop
initiates “improvement projects” to new programs
bring about changes.
Disturbance Responsible for corrective action Organizing strategy and
Handler when organization faces important, review sessions that involve
unexpected disturbances. disturbances and crises
Resource Responsible for the allocation of Scheduling; requesting
Allocator organizational resources of all kinds authorization; performing
– making or approving all significant any activity that involves
organizational decisions budgeting and the
programming of
subordinates’ work
Management Skills
 A skill is an ability to translate knowledge into
action that results in desired performance.
 The most important managerial skills are those that
allow managers to help other become more
productive in their work. Robert L. Katz concluded
that managers needed the following three essential
skills:
Continuation…
 Technical Skill – job-specific knowledge and
techniques needed to proficiently perform specific
tasks; expertise that could initially be acquired
through formal education and are further
developed by training and job experience. These
skills tend to be more important for lower level of
managers because they typically are managing
employees who are using tools and techniques to
produce organization’s products or service the
organization’s customers.
Continuation….
 Human Skill – ability to work well with other people
individually and in a group. It emerges in the workplace
as a spirit of trust, enthusiasm and genuine involvement
in interpersonal relationships. These skills are
consistently important across all levels of management
because managers deal directly with people. Manager
with good human skills are able to get the best out of
their people. They know how to communicate, motivate,
lead and inspire enthusiasm and trust. A manager with
good human skills will have a high degree of self-
awareness and a capacity to understand or empathize
with the feelings of others
Continuation….
 Conceptual Skill – ability to think and formulate
(conceptualize) about abstract and complex situations;
it involves the ability to break down problems into
smaller parts, to see and analyze the relations between
parts and to recognize the implications of any one
problem for other to solve complex problems. Using
these skills managers must see the organization as a
whole, understanding the relationships among various
subunits and visualize how organization fits into
broader environment. These skills are most important at
the top management level.
 AMA Managerial Skills

Conceptual Skills
 Ability to use information to solve business
problems
 Identification of opportunities for innovation
 Recognizing problem areas and implementing
solutions
 Selecting critical information from masses of data
 Understanding of business uses of technology
 Understanding of organization’s business model
 AMA Managerial Skills…..

Communication Skills
 Ability to transform ideas into words and actions
 Credibility among colleagues, peers and subordinates
 Listening and asking questions
 Presentation skills; spoken format
 Presentation skills; written and/or graphic formats
AMA Managerial Skills…..
Effectiveness Skills
 Contributing to corporate mission/departmental objectives
 Customer focus
 Multi-tasking: working at multiple tasks in parallel
 Negotiating skills
 Project management
 Reviewing operations and implementing improvements
 Setting and maintaining performance standards internally
and externally
 Setting priorities for attention and activity
 Time management
AMA Managerial Skills…..

Interpersonal Skills
 Coaching and mentoring skills
 Diversity skills: working with diverse people and
cultures
 Networking within the organization
 Networking outside the organization
 Working in teams; cooperation and commitment
Thought to ponder…
 In today’s demanding and dynamic workplace,
employees who want to be a valuable assets to an
organization must be willing to constantly upgrade
their skills and take on extra work outside their own
specific job area. There’s no doubt that skills will
continue be an important way of describing what a
manager does. .
 HOW THE MANAGER’S JOB IS CHANGING?
CHANGES IMPACT OF
CHANGES

 Managers have
always had to
Shifting organizational
boundaries
Changing Technology Virtual workplaces
(Digitization) More mobile workforce

deal with changes Flexible work arrangements

Empowered employees

taking place Risk management

inside and outside Increased Security Threats

Work life – personal life balance
Restructured workplace
Discrimination concerns

their organization.
Globalization concerns
Employee assistance

Increased emphasis on Redefined values

Organizational and Rebuilding trust
Managerial Ethics Increased accountability

Customer service
Increased Innovation
Competitiveness Globalization
Efficiency/productivity
Current Trends and Issues
 GLOBALIZATION
- Working with people from different cultures
- Coping with anti-capitalist backlash
- Movement of jobs to countries with low cost labor
 ETHICS AND SOCIAL RESPONSIBILITY
- concerns for the environment, ethical and social
responsibility issues, behavior of employees and the
changing needs of an increasingly global economy
Continuation….
 WORKFORCE DIVERSITY
- a worker force that is heterogeneous in terms of
gender, race, ethnicity, age and other characteristics
that reflect differences
 EMPLOYMENT VALUES AND HUMAN RIGHTS
- employees’ right to privacy, due process
protection against job discrimination and freedom
from sexual harassment
Continuation…
 INFORMATION AND TECHNOLOGICAL CHANGE
- impact of emerging information and computer
technology and the age of “knowledge worker”
 CAREERS AND CAREER PORTFOLIOS
- “portfolio of skills” that must be up-to-date and
valuable to potential employers
The Reality of Work
 Another reason for studying management is the reality
that for most of us, once we graduate from college and
begin our career, one will either manage or be
managed. For those who plan to be managers, an
understanding of the management process forms the
foundations upon which to build your management skills.
On the other hand, for those of us who don’t see himself
managing, one is likely to have to work with managers.
Also, assuming that we will have to work for a living
and recognizing that we are very likely to work in an
organization, one probably have some managerial
responsibilities even if one is not a manager.
 Reward and Challenges of Being a
Manager
Rewards
 Create a work environment in which
organizational members can work to the
best of their ability
 Have opportunities to think creatively and
use imagination
 Help others find meaning and fulfillment in
work
 Support, coach and nurture others
 Work with a variety of people
 Receive recognition and status in
organization and community
 Play a role in influencing organizational
outcomes
 Receive appropriate compensation in form
of salaries, bonuses and stock options
 Good managers are need by organizations
Challenges
 Do hard work
 May have duties that are more clerical than
managerial
 Have to deal with a variety of personalities
 Often have to make do with limited
resources
 Motivate workers in chaotic and uncertain
situations
 Successfully blend knowledge, skills,
ambitions and experiences of a diverse
work group
 Success depends on others’ work
performance.
 Managers often may have to deal with a variety of
personalities and often have to make to with limited
resources. It can be a challenge to motivate
workers in the face of uncertainty and chaos.
Managers may find it difficult to effectively blend
the knowledge, skills, ambitions and experiences of
a diverse work group.
 Finally, as a manager, you’re not in full control of
your destiny. Your success typically is dependent
upon, others’ work performance.
Becoming a Manager:
 Keep up with current business news.
 Read books about good and bad examples of managing.
 Remember that one of the things good managers do is to discover
what is unique about each person and capitalize on it.
 Keep in mind the simple advice that “management is about people”
from Peter Drucker.
 Work on your “soft” skills – work ethics, communications, information
gathering and people skills. These are what employers cite as the
most important factors for getting jobs.
 Observe managers and how they handle people and situations.
 Talk to actual managers about their experiences – good and bad.
 Get experience in managing by taking on leadership roles in student
organizations
 Start thinking about whether you’d enjoy being a manager.