ORG AN I Z A TI O N

A ND
MAN A G EM E N T
WHAT IS ORGANIZATION?
• GROUP OF INDIVIDUALS WHO ARE COOPERATING WILLINGLY AND EFFECTIVELY FOR A COMMON GOAL. IT IS
NOTHING MORE THAN A MECHANISM BY WHICH ADMINISTRATION DIRECTS, COORDINATES AND CONTROLS
ITS BUSINESS.

• THE VERY FOUNDATION OF ADMINISTRATION.

• SEEKS TO KNOW WHO IS TO DO AND WHAT IS TO BE DONE
• ORGANIZATIONS ARE STRUCTURED TO PROMOTE BETTER MANAGEMENT. ( HOWEVER IT IS THE
PERFORMANCE OF THE PEOPLE WHO FILL THE POSITIONS THAT DETERMINES THE SUCCESS OF THE
ENTERPRISE AND NOT THE ORGANIZATIONAL DESIGN ITSELF.)
“ A GOOD EXECUTIVE MAY BE ABLE TO SECURE GOOD
RESULTS WITH POOR ORGANIZATION, AND A GOOD
ORGANIZATION MAY PRODUCE RESULTS FROM A POOR
EXECUTIVE. BUT THE IDEAL SET UP IS, A COMBINATION
OF A GOOD SET UP IS, A COMBINATION OF A GOOD
ORGANIZATION AND A GOOD EXECUTIVE.”
STRUCTURAL ORGANIZATION
• FORMAL ARRANGEMENTS THAT ARE ESTABLISHED TO COORDINATE ALL
ACTIVITIES IN ORDER TO IMPLEMENT A GIVEN STRATEGY.
• STRUCTURE REFLECTS THE ANATOMY OF A FIRM THROUGH ITS FOCUS ON
MECHANISMS AND PROCESSES THAT LINK BOTH VERTICALLY AND
HORIZONTALLY THE VARIOUS PARTS OF AN ORGANIZATION.
STRUCTURAL ELEMENTS OF AN ORGANIZATION
1. MEN. THESE ARE THE DIFFERENT MEMBERS OF THE ORGANIZATION STARTING FROM THE VERY TOP
OF THE LAST WORKMAN IN THE ENTERPRISE
2. MATERIALS. REPRESENTS THE MATERIALS NECESSARY IN THE DISTRIBUTION OF FUNCTIONS OR IN
THE ATTAINMENT OF ITS OBJECTIVES.
3. MACHINE. THE TOOLS NECESSARY IN PRODUCING ITS DESIRED OUTPUT.
4. METHODS. THE PROCEDURES AND WAYS USED IN THE COURSE OF ITS ACTIONS.
5. MONEY. THE FINANCIAL RESOURCES OF THE ORGANIZATION.
MAJOR ELEMENTS OF ORGANIZATIONAL STRUCTURE

1. DISTRIBUTION OF FUNCTIONS. THE FUNCTIONS TO BE PERFORMED, THE GROUPINGS OF FUNCTIONS,

AND THE VERTICAL AND HORIZONTAL TASK RELATIONSHIPS AMONG FUNCTIONS.
2. VERTICAL AND HORIZONTAL AUTHORITY RELATIONSHIPS (WHO ARE THE AUTHORITY TO DO WHAT)
3. COMMUNICATION AND DECISION PROCESSES. THE MANNER IN WHICH FORMAL DECISIONS ARE MADE
BY WHOM.
4. POLICIES. THE DECISION, RULES OR GUIDELINES ESTABLISHED.
THE COMMON FAILURE OF MANAGEMENT IS ITS FAILURE TO
ADOPT ITS ORGANIZATIONAL STRUCTURE, POLICIES AND
PROCEDURES, TO THE GROWTH IN SIZE AND COMPLEXITY OF THE
ENTERPRISE.
PRINCIPLES OF GOOD ORGANIZATION
1. PRINCIPLE OF OBJECTIVES. A CLEAR AND COMPLETE DEFINITION OF THE OBJECTIVE MUST BE KNOWN.
ANY BUSINESS CONCERN OR ANY INDIVIDUAL MUST ADHERE TO A DEFINITE PURPOSE OR AIM. THIS
SERVE AS A GUIDE TO FUTURE PLANNING AND ACTION. IT INTEGRATES POLICIES, PROJECTS, AND
PROGRAMS. IT ENABLES EVERYBODY TO ACT CONSISTENTLY ACCORDING TO A COMMON GOAL.
2. ANALYSIS. A SOUND BUSINESS JUDGMENT ATTEMPTS TO BUILD AN ORGANIZATION THROUGH FULL
KNOWLEDGE OF THE REQUIREMENTS OF THE BUSINESS. THERE SHOULD BE A STUDY AS TO WHETHER A
PROJECT COULD BE FINISHED AT THE RIGHT TIME AND AT THE RIGHT PRICE THE CLIENT WILL BE ABLE
TO PAY.
3. SIMPLICITY. THE SIMPLEST ORGANIZATION THAT WILL SERVE TO ATTAIN THE DESIRED OBJECTIVE IS
CONSIDERED THE BEST. ALL ACTIVITIES WHICH ARE NOT ABSOLUTELY NECESSARY SHOULD BE ELIMINATED,
AND THOSE RETAINED SHOULD BE HANDLED IN THE SIMPLEST PRACTICAL WAY.
4. FUNCTIONALISM. THE ORGANIZATION SHOULD BE BUILT AROUND THE MAIN FUNCTIONS OF THE BUSINESS
AND NOT AROUND THE INDIVIDUALS. A FUNCTION IS A NORMAL OR CHARACTERISTIC WAY OF DOING A TASK
THAT STANDS OUT DISTINCTIVELY BY ITSELF. THE NATURE OF THE BUSINESS DETERMINES THE MAIN
FUNCTION OF THE BUSINESS.
5. DEPARTMENTALIZATION. IN BIG ORGANIZATION, THE SCOPE OF OPERATION CAN BE VERY BROAD,
NECESSITATING DEPARTMENTALIZATION CAN BE THROUGH FUNCTIONS, PRODUCTS, LOCATION, OR BY
PRODUCTS OF THE ORGANIZATION.
6. CENTRALIZATION BY AUTHORITY AND RESPONSIBILITY. IN EVERY
ORGANIZATION, THERE SHOULD BE CENTRALIZED EXECUTIVE CONTROL OR
COMMAND AUTHORITY. THIS IS NECESSARY IN ORDER TO HAVE AUTHORITY AND
RESPONSIBILITY DEFINITELY FIXED. WHEN THERE IS UNITY OF COMMAND, EVERY
PERSON KNOWS WHAT HE CAN PERFORM WITHIN HIS SCOPE OF AUTHORITY,
KNOWS THE THINGS FOR WHICH HE IS RESPONSIBLE OF, AND ALSO WHOM TO
REPORT TO AND CONSULT IN CASE OF PROBLEMS OR DOUBTS.
7. LIMITED SPAN OF CONTROL. THE NUMBER OF SUBORDINATES AN EXECUTIVE CAN
MANAGE EFFECTIVELY.
WHAT IS MANAGEMENT?
• MANAGEMENT IS A PROCESS. IT IS THE PROCESS OF DIRECTING AND FACILITATING THE
WORK OF PEOPLE WHO ARE ORGANIZED FOR A COMMON PURPOSE. IT IS THE PROCESS
OF COMBINING THE EFFORTS AND RESOURCES OF INDIVIDUALS WITH A COMMON
INTEREST TO ACHIEVE A DESIRED OBJECTIVE.

• MANAGEMENT IS A FUNCTION. IT IS THE FUNCTION OF GETTING THINGS DONE THROUGH

THE EFFORTS OF OTHERS. IT IS THE APPLICATION OF AUTHORITY AND ASSUMPTION OF
RESPONSIBILITY. IT IS AN ART, THE ART OF HANDLING PEOPLE.
MANAGEMENT CONCEPT
• MANAGEMENT TO BE EFFECTIVE MUST BE SYSTEMATIC. THINGS CAN BE DONE BETTER BY MEANS OF PLAN OF
ACTION. THE PLAN IS A STEP BY STEP OUTLINE OF WHAT IS TO BE DONE AND WHO DOES WHAT.

• MANAGEMENT TO BE SUCCESSFUL MUST BE SCIENTIFIC. SCIENTIFIC MANAGEMENT HAS DONE MORE TO ADVANCE
AND WIN THE STATUS OF MANKIND TODAY THAN HAS ANY OTHER SINGLE FACTOR. BU THE APPLICATION OF THE
SCIENTIFIC METHOD TO THE STUDY AND ANALYSIS OF THE OPERATIONS OF A PARTICULAR JOB, MEN HAVE
DISCOVERED THE EBST KNOWN METHOD OF PERFORMING THE OPERATION.

• MANAGEMENT MUST BE HUMANISTIC. WHERE MACHINE MAY HAVE STANDARD OF EFFICIENCY AND BE SET TO RUN
AT A GIVEN SPEED, HUMAN BEINGS, WHETHER MANAGER OR WORKERS, CANNOT BE SO EASILY REGULATED TO A
PRE-DETERMINED POINT OF ACCOMPLISHMENT.
MANAGEMENT STRUCTURES

THE PRIMARY OBJECTIVE OF MANAGEMENT STRUCTURE IS TO FACILITATE

THE COORDINATION AND CONTROL OVER THE ACTIVITIES OF THE COMPANY.
NO TWO COMPANIES ARE IDENTICAL. THUS, EACH COMPANY SHOULD BE
STUDIED IN TERMS OF ITS PURPOSE, SIZE AND THE NATURE OF ITS
BUSINESS.
MANAGEMENT CONTROL
• CONTROL INCLUDES ACTIVITIES THAT REQUIRE RESTRICTIVE OR
CORRECTIVE ACTION. FOR INSTANCE, MATTERS LIKE EXCESSIVE LABOR
COST, UNDUE EQUIPMENT FAILURE OR DISPROPORTIONATE FUEL AND
MAINTENANCE COSTS AND THE LIKE ARE POINTS THAT REQUIRES
MANAGEMENT ACTION AND WILL BE ACCOMPLISHED ONLY IF
MANAGEMENT IS AWARE THAT THE CONDITIONS EXIST.
EFFECTIVE COMMUNICATION SYSTEM
• IMPORTANT ELEMENT OF THE EXECUTIVE CONTROL. ADEQUATE AND RELIABLE DATA ARE COLLECTED AND
DISSEMINATED TO THE PROPER PERSONS AND UNITS AT THE RIGHT TIME.

• TO THE MANAGER, INFORMATION HAS FOUR PURPOSES TO SERVE.

- IT MUST ANSWER THE QUESTIONS WHAT ARE WE GOING TO DO?

- HOW WELL ARE WE DOING?

- HOW CAN WE DO BETTER?
- DOES IT SERVE AS AN AID TO COORDINATION?
THE MANAGER
• MOST DIFFICULT AND WITH THE HIGHEST DEGREE OF RESPONSIBILITY. THE NATURE OF HIS JOB IS
VARIED FROM THE SIMPLEST TO THE MOST COMPLICATED ONE. BEING THE BRIDGE BETWEEN THE BOARD
OF DIRECTORS AND STOCKHOLDERS OR BETWEEN TOP MANAGEMENT AND THE REST OF THE AGENCY
PERSONNEL OR BETWEEN THE AGENCY ITSELF AND THE GENERIC PUBLIC, HE IS ALWAYS BLAMED FOR
MISMANAGEMENT , AND YET HE IS OFTENTIMES NOT PRAISE FOR HIS SUCCESS. BUT HIS JOB IS ALWAYS
IN HIS MIND NO MATTER WHERE HE IS.
QUALITY OF AN EFFECTIVE MANAGER
1. HE STUDIES, ANALYZES AND DISSECTS HIS JOB.
2. HE KNOWS HOW TO DELEGATE THE ADMINISTRATIVE DETAILS OF HIS JOB.
3. HE IS WILLING TO DELEGATE TO AND SHARE WITH HIS SUBORDINATES THE CREDIT OF A JOB WELL
DONE.
4. HE TRAINS AND DEVELOPS HIS MEN TO PREPARE THEM TO ASSUME DELEGATED WORK.
5. HE KNOWS HOW TO CONTROL AND PLAN HIS TIME.
6. HE INSTITUTES CONTROLS FOR EFFECTIVE PERFORMANCE.
EXECUTIVE FUNCTIONS

MANAGERS DO NOT DO THE ACTUAL WORK OF AN ORGANIZATION. HIS SPECIFIC FUNCTIONS ARE
1. TO PLAN
2. TO ORGANIZE
3. TO DIRECT
4. TO CONTROL
PLANNING
• JOB OF MAKING THINGS HAPPEN THAT WOULD OTHERWISE NOT OCCUR. IT IS AN INTELLECTUAL PROCESS, THE
CONSCIOUS DETERMINATION AND DIRECTION OF ACTION.

• PLANS MAY BE CLASSIFIED AS

1. OBJECTIVE OF THE ENTERPRISE
2. POLICIES
3. PROCEDURES
4. BUDGET AND
5. PROGRAMS
ORGANIZING

• A GOOD ORGANIZATIONAL STRUCTURE DOES NOT GUARANTEE GOOD

PERFORMANCE, BUT A POOR ONE MAKES GOOD PERFORMANCE
IMPOSSIBLE, EITHER THE CALIBER OF THE INDIVIDUAL MANAGERS
NOTWITHSTANDING.
DIRECTING

• GUIDING AND OVERSEEING SUBORDINATES. ONE CAN PLAN, ORGANIZE AND

STAFF , BUT UNTIL SUBORDINATES ARE TAUGHT WHAT TO DO AND TOLD TO
GET ON WITH THE JOB, NOTHING GETS DONE.
• LEADERSHIP AND COORDINATION.
CONTROL

• PROCESS BY WHICH AN EXECUTIVE GETS THE PERFORMANCE OF HIS

SUBORDINATES TO CORRESPOND AS CLOSELY AS POSSIBLE TO CHOSEN
PLANS, ORDERS, OBJECTIVES, OR POLICIES.
EXECUTIVE LEADERSHIP
• BRIDGE BETWEEN OBJECTIVE AND RESULT. HUMAN PROGRESS IS THE
CROWNING GLORY OF SUCCESS. SUCCESS IS THE RESULT OF GOOD
MANAGEMENT. AND MANAGEMENT IS THE EFFECTIVE, EFFICIENT,
ECONOMICAL UTILIZATION OF THE RESOURCES OF MAN, MONEY,
MATERIALS, MACHINE METHODS AND MEMORANDA .
DELEGATION OF AUTHORITY
• KEY TO EFFECTIVE MANAGEMENT. IN ORDER TO HAVE CONTROL, THE
MANAGER MUST HAVE AUTHORITY.
• AUTHORITY IS THE POWER OF AN ADMINISTRATOR TO DELEGATE
FUNCTIONS TO THE ENXT RANKING EXECUTIVE, WHO IN TURN TRANSMIT IT
TO THE EMPLOYEES WHO ARE CHARGED WITH THE ACTUAL OPERATIONS.
PERSONNEL COORDINATION
• THE COMPANY ORGANIZATION IS ALSO DEPENDENT UPON THE SPECIAL ABILITIES AND SKILLS OF
PERSONNEL TO PERFORM THE WORK. THIS IS TRUE PARTICULARLY IN THE ESTABLISHMENT OF LEADERS,
SUPERVISORS, AND FOREMEN. TWO FACTORS ARE SIGNIFICANT.
1. THE NEED FOR CLOSE SUPERVISIONS AS JUDGED BY THE SKILL OF THE WORKERS AND THE DIFFICULTY
OF THE OPERATIONS.
2. THE AVAILABILITY OF EXPERIENCED AND TRUST WORTHY PERSONNEL CAPABLE OF ACTING IN
SUPERVISORY CAPACITY.
THE SHORTAGE OF PEOPLE WHO ARE CAPABLE OF LEADERSHIP AND SUPERVISION
OF OTHER IS ONE OF THE BIGGEST DIFFICULTIES ENCOUNTERED BY COMPANIES,
AND THIS MAY BE DUE TO :

1. LACK OF INCENTIVE IN THE SUPERVISORY POSITIONS.

2. INADEQUATE OR INEFFECTIVE RECRUITMENT OF THOSE PROCESSING
POTENTIAL LEADERSHIP ABILITY.
3. INSUFFICIENT TRAINING OF PRESENT AND POTENTIAL SUPERVISORY
PERSONNEL.
THE SCIENTIFIC MANAGEMENT
• THE ROOT OF MANAGEMENT SCIENCE EXTEND TO THE WORK OF FREDERICK TAYLOR, WHO PROPOUNDED
THE MACHINE MODEL OR SCIENTIFIC OR TASK MANAGEMENT THEORY WITH THE FOLLOWING
PECULIARITIES:
1. DIVISION OF LABOR AND SPECIALIZATION.
2. UNITY OF COMMAND AND CENTRALIZATION OF DECISION MAKING.
3. ONE WAY AUTHORITY.
4. NARROW SPAN OF CONTROL.
• BARTH INTRODUCED TO THE WORLD THE USE OF MATHEMATICS,
WHICH HE MERGED WITH HIS KNOWLEDGE OF MACHINE TOOLS.
GANTT CONTRIBUTED TO THE RECOGNITION OF WORKER
PSYCHOLOGY, THE DEVELOPMENT OF BONUS PLAN, AND THE CHARTS
USED IN PRODUCTION SCHEDULING. ENGINEERING THUS COME TO BE
CLOSELY ASSOCIATED WITH THE MANAGEMENT OF VARIOUS
ENTERPRISES. OUT OF THIS, INDUSTRIAL ENGINEERING WAS BORN.
DESCRIPTION OF THE WORK OF THE FUNCTIONAL STAFF
RESPONSIBLE FOR ACTIVITIES SUCH AS:

1. INCENTIVE STANDARD
2. METHODS ANALYSIS
3. QUALITY CONTROL
4. PRODUCTION CONTROL
5. MATERIAL HANDLING
“ ENGINEERS AS EXECUTIVE ARE NOT PAID
FOR DOING THINGS THEY LIKE TO DO. THEY
ARE PAID FOR GETTING THE RIGHT THINGS
DONE AND MOST OF ALL IN THEIR SPECIFIC
TASK, THAT IS, THE MAKING OF RIGHT
DECISIONS.”
TO BE EFFECTIVE EXECUTIVE. ENGINEERS HAS FIVE
HABITS IN MIND:
1. THEY KNOW WHERE THEIR TIME GOES. THEY WORK SYSTEMATICALLY AT MANAGING THE LITTLE OF THEIR TIME.
2. THEY FOCUS ON OUTWARD CONTRIBUTION. THEY GEAR THEOR EFFORTS TO RESULTS RATHER THAN TO WORK.
3. THEY BUILD ON STRENGTHS. THEY DO NOT BUILD ON WEAKNESS. THEY DO NOT START OUT WITH THE THINGS THEY CANNOT DO.
4. THEY CONCENTRATE ON A FEW MAJOR AREAS WHERE SUPERIOR PERFORMANCE WILL PRODUCE OUTSTANDING RESULTS. THEY
FORCE THEMSELVES TO SET PRIORITIES. THEY HAVE NO CHOICE BUT TO DO FIRST THINGS FIRST AND SECOND THINGS NOT ALL
5. ENGINEERS FINALLY MAKE EFFECTIVE DECISIONS. THEY KNOW THAT THIS IS ABOVE ALL A MATTER OF SYSTEM OF THE RIGHT
STEPS IN THE RIGHT SEQUENCE. AND THEY KNOW THAT TO MAKE MANY DECISIONS FAST MEANS TO MAKE THE WRONG
DECISIONS. WHAT IS NEEDED ARE FEW, BUT FUNDAMENTAL DECISIONS.
HUMANISTIC MANAGEMENT
1. WE HAVE A GOOD STAFF.
2. OUR POLICIES WERE CLEAR.
3. WE UPHELD AN IDEAL TO BE STRIVEN FOR.
4. OUR CHOSEN FIELD OF BUSINESS WAS APPROPRIATE AT THE TIME.
5. WE DID NOT ALLOW FACTIONS TO FORM WITHIN OUR COMPANY.
6. WE REGARDED THE COMPANY AS A PUBLIC INSTITUTION.
7. WE FOLLOWED A POLICY OF OPEN MANAGEMENT.
8. WE WORKED TOWARDS A SYSTEM OF MANAGEMENT BY ALL EMPLOYEES.
5 KEY POINTS SUCCESS IN ENTERPRISE MANAGEMENT

1. TO HAVE A CLEAR MANAGEMENT PHILOSOPHY, CLEAR GOALS, AND DEFINITE IDEAL.

2. TO MANAGE A COMPANY WITH THE FULL REALIZATION THAT EVERY ENTERPRISE IS A PUBLIC
ENTERPRISE.
3. TO PRACTICE OPEN MANAGEMENT.
4. TO COLLECT THE WISDOM OF THE MANY.
5. TO TRY YOUR BEST TO ACQUIRE AN UNFLAPPABLE AND SUPREMELY ADAPTABLE MIND TO ENABLE YOU
TO SEE THINGS AS THEY ACTUALLY ARE WITHOUT CLINGING TO PRECONCEIVED NOTIONS.
DIRECTING PEOPLE ON THE JOB

• TO GET YOUR PEOPLE TO FOLLOW YOU AS YOU WANT THEM TO DO

PROMPTLY, AND WILLINGLY, LEARN THE ART AND TECHNIQUES INVOLVE DIN
GIVING ORDERS EFFECTIVELY AND PRACTICE USING THEM CORRECTLY
UNTIL YOU BECOME SKILLED IN GIVING ORDERS EFFECTIVELY.
WHAT IS AN ORDER?

•SPECIFIC MESSAGE CONVEYED BY A LEADER TO A FOLLOWER FOR

A PURPOSE OF INFLUENCING THE FOLLOWER TO TAKE DESIRED
ACTION. ORDERS ARE EITHER VERBAL OR WRITTEN.
WHEN TO USE VERBAL ORDERS?

1. WHEN THE ORDER IS SIMPLE AND THE MESSAGE CAN BE CLEARLY HEARD.
2. WHEN PRIVACY IS IMPORTANT.
3. WHEN THE FOLLOWER IS INTELLIGENT AND RELIABLE.
4. WHEN A DEMONSTRATION IS INVOLVED.
WHEN TO HAVE WRITTEN ORDERS?
1. WHEN PRECISE FIGURES OR COMPLICATED DETAILS ARE INVOLVED.
2. WHEN ORDERS MUST BE PASSED ON TO SOMEONE ELSE.
3. WHEN THE WORKERS INVOLVED ARE SLOW TO UNDERSTAND AND FORGETFUL.
4. WHEN YOU WANT TO HOLD THE RECEIVER STRICTLY ACCOUNTABLE.
5. WHEN PARTICULAR SEQUENCE MUST BE FOLLOWED EXACTLY
6. WHEN A NOTICE OARD CAN BE SUITABLY USED.
7. WHEN YOU ARE QUOTING GENERAL INSTRUCTIONS ON HIGHER AUTHORITY.
8. WHEN A RECORD IS DESIRABLE, PERHAPS THE ORDER MAY NEED TO BE REFERRED TO IN THE FUTURE.
HOW TO GIVE EFFECTIVE ORDER?
1. CLARIFY YOUR OBJECTIVE.
2. OBTAIN FAVORABLE ATTENTION.
3. MAKE IT SIMPLE AND SPECIFIC.
4. PHRASE IT TACTFULLY FOR BEST RESULTS.
5. EXPLAIN WHY IT SHOULD BE DONE YOUR WAY.
6. LEARN HOW MUCH INFORMATION AND GUIDANCE HE NEEDS .
7. LET HIM HAVE IT.
8. INSPIRE HIS CONFIDENCE IN YOU AND THE CORRECTNESS OF YOUR ORDER.
9. NOTE HIS READINESS TO ACT.
10.GIVE HIM FAITH IN HIS ABILITY TO CARY IT OUT.
 “ MOST BRILLIANT MEN ARE OFTEN NOT EFFECTIVE. THEY FAILED TO
REALIZED THAT BRILLIANT INSIGHT IS NOT BY ITSELF ACHIEVEMENT. THEY
HAVE FORGOTTEN THAT INSIGHTS BECOME EFFECTIVENESS ONLY
THROUGH HARD SYSTEMATIC WORK. INTELLIGENCE, IMAGINATION AND
KNOWLEDGE ARE ESSENTIAL RESOURCES, BUT ONLY EFFECTIVENESS
CONVERTS THEM INTO RESULTS. “
References:
VARIOUS SOURCES
PPT BY ENGR. CYMA ADORACION A. NATIVIDAD