G11 ABM – Organization and Management

Lesson 3 (part 2): Functions of

Management (Decision Making
and Organizing)

Presented by: Leonides B. Suing

 Decision Making

Decision Making refers to making choices among alternative

courses of action, which may also include inaction.

Here are some basic questions you can ask yourself to assess the
ethics of a decision:
① Is this decision fair?
② Will I feel better or worse about myself after I make this
decision?
③ Does this decision break any organizational rules?
④ Does this decision break any laws?
⑤ How would I feel if this decision was broadcasted on the news?
 Decision Making

Four decision-making approaches starting

with:
① rational decision-making model,
② moving to the bounded rationality decision-
making model,
③ the intuitive decision-making model, and
④ ending with the creative decision-making
model.
 Decision Making

Rational decision-making model

 Decision Making

Bounded rationality model of decision-making

 Decision Making

Intuitive decision-making model

 Decision Making

Creative decision making model

 Decision Making

The Decision Making Process

 Functions of Management: Organizing

Organization is the detailed arrangement of work and

working conditions in order to perform the assigned
activities in an effective manner.
According to McFarland, “An identified group of people
contributing their efforts towards the attainment of goals is
called an organization.”
According to George R. Terry, “Organizing is the
establishing of effective behavioral relationships among
persons so that they may work together effectively and gain
personal satisfaction in doing selected tasks under given
environmental conditions for the purpose of achieving some
goal or objective.”
 Functions of Management: Organizing

Functions of an Organization
① Determination of activities
② Grouping of activities
③ Allotment of duties to specified persons
④ Delegation of authority
⑤ Defining relationship
⑥ Coordination of various activities
 Functions of Management: Organizing

Characteristics of an Organization
① Division of labor
② Co-ordination
③ Objectives
④ Authority-responsibility structure
⑤ Communication
 Functions of Management: Organizing

Classification of an Organization
1) Formal Organization
 Functions of Management: Organizing

2) Informal Organization
 Functions of Management: Organizing

Theories of Organization
① Classical theory
② Neo-Classical Theory
③ Modern Theory
④ Motivation Theory
⑤ Decision Theory
 Functions of Management: Organizing

Classical Theory
 Functions of Management: Organizing

Neo-Classical Theory
 Functions of Management: Organizing

Modern Theory
 Functions of Management: Organizing

Motivation Theory
 Functions of Management: Organizing

Decision Theory