OF MANAGEMENT MANAGEMENT •- process of coordinating & overseeing the work performance of individuals working together in organization, so that they could efficiently accomplish their chosen goals. •- coordination & administration of tasks to achieve a goal. •Definition of terms: ● Coordination -process of organizing people or groups so that they work together properly and well. ● Efficiency -refers to how well something is done. ● Effectiveness -refers to how useful something is. 5 FUNCTIONS OF MANAGEMENT PLANNING -involves determining the organization’s goal or performance objectives, defining strategic actions that must be done to accomplish them, and developing coordination & integration activities. •ORGANIZING -synchronization & combination of human, physical, & financial resources takes place. •STAFFING -indicates filling in the different job positions in the organization’s structure. •LEADING -entails influencing & motivating subordinates to do their best so that they would be able to help the organization’s endeavor to attain their set goals. •CONTROLLING -involves evaluating and, if necessary, correcting the performance of the individuals or work groups or teams to ensure that they are all working toward the previously set goals & plans of the organization. 1. Man 2. Money 3. Machine 4. Materials 5. Method 6. Measurement 7. Marketing •LESSON 2 •EVOLUTION OF MANAGEMENT THEORIES • SCIENTIFIC MANAGEMENT THEORY - makes use of the step by step, scientific methods for finding the single best way for doing a job. - emphasizes efficiency by focusing entirely on employee productivity & rewarding them monetarily.
Frederick W. Taylor (1856-1915) -Father of Scientific
Management. Taylor’s Scientific Management Principles 1. Develop a science for each element of an individual’s work to replace the old rule of thumb method. 2. Scientifically select and then train, teach, and develop the workers. 3. Heartily cooperate with the workers so as to ensure that all work is done in accordance with the principles of the science that has been developed. 4. Divide work & responsibility almost equally between management & workers. • GENERAL ADMINISTRATIVE THEORY • - this theory contributes on the manager’s functions & what makes up good management practice or implementation.
• Henry Fayol’s Management Principles
• 1. Work division or specialization • 2. Authority • 3. Discipline • 4. Unity of command • 5. Unity of direction • 6. Subordination of individual interest to general interest • 7. Remuneration • 8. Centralization • 9. Scalar chain of authority • 10. Maintenance of order • 11. Equity/Fairness • 12. Stability/Security of tenure of workers • 13. Employee Initiative • 14. Promotion of team spirit/ Esprit de corps •Weber’s Bureaucracy • Bureaucracy is an organizational form distinguished by the following components. •1. Division of labor •2. Hierarchical identification of job positions •3. Detailed rules & regulations •4. Impersonal connections with one another • TOTAL QUALITY MANAGEMENT (TQM) • - is a management philosophy that focuses on the satisfaction of customers, their needs, and expectations. • Deming’s 14 Points for Top Management • 1. Create a constant purpose toward improvement • 2. Adopt the new philosophy • 3. Stop depending on inspections • 4. Use a single supplier for any one item • 5. Improve constantly and forever 6. Institute training 7. Implement leadership 8. Eliminate fear 9. Break down barriers between departments 10. Get rid of unclear slogans 11. Get rid of unclear slogans 12. Remove barriers to pride of workmanship 13. Implement education and self-improvement 14. Make "transformation" everyone's job •Juran’s Fitness of Quality •1. Quality of Design -through market research, product, & concept •2. Quality of Conformance -through management, manpower, & technology •3. Availability -through reliability, maintainability, & logistic support •4. Full Service -through promptness, competence, & integrity Juran’s Quality Planning Roadmap 1. Identify your customers 2. Determine their needs 3. Translate them into one’s language 4. Develop a product that can respond to needs 5. Develop processes which are able to produce those product features 6. Prove that the process can produce a product 7. Transfer the resulting plans to the operating forces • ORGANIZATIONAL BEHAVIOR (OB) APPROACH • - involves the study of the conduct, demeanor, or action of people at work.
• Robert Owen (late 1700s) -noticed
lamentable conditions in workplaces & proposed ideal ways to improve the said conditions. May Parker Follett (early 1900s) - introduced the idea that individual or group behavior must be considered in organizational management. Hugo Munsterberg (early 1900s) -proposed the administering of psychological tests for the selection of would-be employees in companies.
Chester Barnard (1930s) -suggested that
cooperation is required in organizations since it is, mainly, a social system. •Quiz: BASIC TYPES OF MANAGEMENT 1. AUTOCRATIC - is a management style wherein one person controls all the decisions and takes very little inputs from other group members. •2. DEMOCRATIC MANAGEMENT STYLE - the majority rules. •3. LAISSEZ-FAIRE •- managers have an attitude of trust and reliance on their employees. •FUNCTIONS •OF A MANAGER •MANAGERIAL FUNCTIONS – pertain to the specific tasks and responsibilities assigned to managers. 1. Top-level Managers • -are the general or strategic managers who focus on long-term organizational concerns and emphasize the organization’s stability, development, progress, and overall efficiency and effectiveness. •2. Middle-level Managers –responsible for controlling and running an organization. •3. Frontline Managers •-operational managers and are responsible for supervising the organization’s day-to- day activities. •-bridges between management and non- management employees. •ROLES OF A MANAGER •(Mintzberg) •INTERPERSONAL • Leader • Liaison • Figurehead •INFORMATIONAL • Spokesperson • Monitor • Disseminator •DECISIONAL OR DECISION- MAKING • Disturbance Handler • Resource Allocator • Negotiator • Entrepreneur •SKILLS OF A MANAGER •CONCEPTUAL SKILLS –enable managers to think of possible solutions to complex problems. •HUMAN SKILLS –enable managers in all levels to relate well with people. •TECHNICAL SKILLS –enable managers to perform their tasks with proficiency with the use of their expertise. •THE FIRM •AND ITS ENVIRONMENT •DEFINITION OF TERMS: •Business Environment –factors or elements affecting a business organization. •Environmental Scanning –ongoing tracking of trends and occurrences in an organization’s external or internal environment that bear on its success, currently and in the future. •BUSINESS ENVIRONMENT: • External Business Environment –factors/elements outside the organization which may affect, either positively or negatively, the performance of the organization. • Internal Business Environment – factors/elements within the organization which may affect, either positively or negatively, the performance of the organization. •COMPONENTS OF THE EXTERNAL BUSINESS ENVIRONMENT MICRO ENVIRONMENT –includes players whose decisions and actions have a direct impact on the company. • Suppliers of Inputs • Customers • Marketing Intermediaries –play an essential role of selling and distributing its products to the final customers. • Competitors • Publics –example: media groups, women’s associations, local groups, etc. •SPECIFIC COMPONENTS OF THE EXTERNAL BUSINESS ENVIRONMENT Stakeholders –a person or group of people who own a share in a business. Customers –those who patronize the organization’s products and services. Suppliers –those who ensure the organization’s continuous flow of products or inputs required for producing their goods and rendering their services. Pressure Groups –are special-interest groups that try to exert influence on the organization’s decisions and action. Investors or Owners –who provide the company with the financial support it needs. Employees –who work for an employer in exchange of salaries/wages or other considerations. MACRO ENVIRONMENT •–refers to broader factors that can affect a business; uncontrollable by the organization. Economic Environment –includes inflation, rates of interest, changing options in stock markets, people’s spending habits. Socio-cultural Environment –includes customer’s changing values of preferences; customs could also affect management practices in companies. Politico-legal Environment –refer to a national or local laws, international laws, and rules and regulations that influence organizational management. Demographic Environment – gender, age, educational level, income, number of family numbers, geographic origin, etc. Technological Environment –use of varied types of electronic gadgets and advanced technology. World and Ecological Environment – related to the increasing number of global competitors and markets, as well as the nature and conditions of the changing natural environment. • COMPONENTS OF THE INTERNAL BUSINESS ENVIRONMENT Resources –includes physical, financial, human, information, and technological resources. Research and Development –work directed toward innovation and improvement of products and processes. Production –takes inputs and uses them to create an output which is fit for consumption. Procurement of Supplies –obtaining goods or services for business purposes. Products and Services it offers. •SWOT Analysis •VS. •PEST Analysis • SWOT & PEST Analysis • These are two analysis tools offer valuable insights into the organization and its position in the world. • It provides an objective look and information a manager need to make a mature and favorable decision. •SWOT ANALYSIS the processing of internal and external operating environment of a firm to analyze its strengths, weaknesses, opportunities, and threats. The SWOT Quadrants 8 Steps to Conduct a SWOT Analysis 1. Decide on the objective of your SWOT Analysis. • You should have a question or problem to solve. •2. Research your business, its industry and market. • You need to understand your business, industry, and market by getting the perspective of your shareholders. •3. List your business’ strengths. • Things that are controllable by the business that may have positive impact on it. • Characteristics that an organization excels and what gives it competitive advantage. Examples: Strengths relating to employees, financial resources, your business location, cost advantages and competitiveness. 4. List your business’ weaknesses. • Things that are controllable by the business that may have negative impact on it. • Characteristics that hinder an organization which might inhibit or restrict its performance. Examples: Absence of new products or clients, staff absenteeism, lack of intellectual property, declining market share. •5. List potential opportunities for your business. • External factors that could have a positive impact on the business. • Characteristics that have the potential to help the organization achieve or exceed its strategic goals. Examples: New technology, training programs, partnerships, change in government. •6. List potential threats to your business. • External factors that may cause a problem to the business. • Characteristics of that may prevent the organization from achieving its goals. Examples: Rising unemployment, increasing competition, higher interest rates, and uncertainty of global markets. •7. Establish priorities from the SWOT. • After completing the list of strengths, weaknesses, opportunities, and threats, you may now have an overall picture of how your business is running and what issues you need to address or prioritize. • 8. Develop a strategy to address issues in the SWOT. • DEVELOPMENT OF STRATEGIES • How can we use our strengths to take advantage of the opportunities identified? • How can we use these strengths to overcome the threats identified? •DEVELOPMENT OF STRATEGIES • What do we need to do to overcome our weaknesses in order to take advantage of the opportunities? • How will we minimize our weaknesses to overcome the identified threats? •GROUP ACTIVITY •Direction: Fill in the SWOT quadrants of Jollibee. Five in every quadrant. •STRENGTHS a management method whereby an organization assesses its macro external factors (political, economic, social, and technological) that influence its operation in order to become more manager to: 1. Understand current external influences on the business so you can work on facts rather than assumptions. 2. Identify what factors could change in the future. advantage of opportunities to remain competitive. •4. Develop a better long-term strategy. Analysis •1. Set a meeting with your team. • Give your team a clear description of the project you want to evaluate. to place the 4 macro environmental factors. •Points to take into account: • Government • Taxation • Trade Policies • Import Restrictions •Points to take into account: • Interest Rates • Unemployment Rates • Inflation Rates • Current Economic Stability • Purchasing Power •Points to take into account: • Demographic Data • Consumers Trends • Population Growth • Income Levels • Consumer Lifestyles factors. •Points to take into account: • Automation • Artificial Intelligence • Level of Innovation • Cybercrimes • Robotics 4 quadrants. • Discuss the pros and cons of the project looking at the macro external factors. • Identify the threats and opportunities. • Act on your team’s findings by taking advantage of the opportunities and managing the threats as soon as possible. CTIVITY irection: Fill in the PEST uadrants of Jollibee. •FORMS OF BUSINESS ORGANIZATION •SOLE PROPRIETORSHIP •-is a business that can be owned and controlled by an individual. •Advantages: •Disadvantages: Partnership -legal form of business operation between two or more individuals who share management and profits. -it is registered with the Securities and Exchange Commission (SEC). •Advantages: •Disadvantages: •Corporation •-is a juridical entity established under the Corporation Code and registered with the SEC. •-is a business entity that is owned by its shareholders, who elect a board of directors to oversee the organization's activities. The corporation is liable for the actions and finances of the business – the shareholders are not. •Advantages: •Disadvantages: •Cooperative •-owned by its members, and it does not need a board to make decisions or enlist control over the entity. •-offer various services to aid the overall economic development of its members. •Disadvantages: • There is a possibility of conflict between members • Provide a service rather than a return of investment • Longer decision-making process Roles of Business Organization to the Economic Development •Economic Growth •Economic means an increase Development means in real national an improvement in income/national the quality of life output. Short term and living standards. process. Long term process. • RISK-TAKERS • CREATING JOBS • PROVIDING INNOVATION • INSPIRATION • INVESTMENT ACTIVITY: In a one whole sheet of paper, write an essay on how to attain Economic Growth and Development thru the help of different business organization. CHAPTER QUIZ 40 items Phases of Economic Development (Walt Whitman Rostow) Stage 1: TRADITIONAL SOCIETY This stage is characterized by a subsistent, agricultural based economy, with intensive labor and low levels of trading, and a population that does not have a scientific perspective on the world and technology. Stage 2: Preconditions to Take-off This stage, people begin to see that they have hope for change and they can see past their regional area to a wider world. Social, political, and economic areas of life progress as educations is made more available. Stage 3: Take-off In which industrialization begins to occur. Economic growth is achieved and better living standards are achieved by most people. An important part of this stage is that the society is able to self-sustain this growth. Stage 4: Drive to Maturity This stage is about diversification and expansion. The economy in this stage of growth will be developing new and more industries. Economies become less dependent upon imports as their emerging industries can complete with them. Stage 5: Age of High Mass Consumption A high standard of living marks this stage. The quantity and quality of products and services increase. ACTIVITY: Using the Graphic Organizer, give your own idea about the five stages of economic development. PLANNING 5 Functions of Management (planning, organizing, staffing, leading, controlling) 1 PLANNING -involves determining the st
organization’s goal or performance
objectives, defining strategic actions that must be done to accomplish them, and developing coordination & integration activities. NATURE OF PLANNING ACTIVITY: Write an essay about: “SIGNIFICANCE OF PLANNING IN AN ORGANIZATION” Significance of Planning in an Organization 1. Planning provides direction: Planning makes clear what employees have to do, how to do, etc. By stating in advance how work has to be done, planning provides direction for action. 2. Planning reduces the risk of uncertainties: Planning helps the manager to face the uncertainty because planners try to foresee the future by making some assumptions regarding future keeping in mind their past experiences and scanning of business environments. 3. Planning reduces over lapping and wasteful activities: If the managers, non-managers and all the employees are following course of action according to plan then there will be integration in the activities. 4. Planning promotes innovative ideas: Planning requires high thinking and it is an intellectual process. Planning process forces managers to think differently and assume the future conditions. 5. Planning facilitates decision making: Planning helps the managers to take various decisions. As in planning goals are set in advance and predictions are made for future. 6. Planning establishes standard for controlling: Controlling means comparison between planned and actual output and if there is variation between both then find out the reasons for such deviations and taking measures to match the actual output with the planned. 7. Focuses attention on objectives of the company: Planning function begins with the setting up of the objectives, policies, procedures, methods and rules, etc.. When employees follow the plan they are leading towards the achievement of objectives. STEPS IN PLANNING QUIZ: 51324 Number the following steps (ONE to FIVE) in planning according to how you understood the discussion. ______1. Execute the idea/plan and assess the outcome. ______2. Identify your targets or desired end result. ______3. Foresee impending eventualities. ______4. Know your assets and edge as well as your flaws and vulnerability. ______5. Study possible actions and make a choice among the options. LEVELS OF PLANNING CORPORATE LEVEL –it constitutes that level of decision-making which dictates the activities of all the other levels. Long-term goals and strategies. BUSINESS LEVEL –it is a set of procedures for translating broad strategic goals and plans into specific goals and plans. Intermediate or medium-term planning. FUNCTIONAL LEVEL –it is a process of identifying the specific procedures and processes required at lower levels of organization. Short-term planning. TYPES OF PLANS 1. Strategic Plans –plans that establish the organization’s overall goals and apply to the entire firm, they are broad in scope. 2. Tactical Plan –refers to procedures and transformation of strategic goals/plans with specific goals. How the manager plans to get the job done or achieve its objective. 3. Operational Plan – plans that apply to a particular unit area only; the scope is narrow; achievement of company goals may not be achieved if operational plans are not clear. 4. Long-term Plans – plans that go beyond three years, longer time to reach and it require more steps.
5. Short-term Plans – plans that cover
one year or less; such plans must lead toward the attainment of long term goals and are the responsibility of the unit/department heads. 6. Single Use Plans – plans used or stated once only as these applies to the entire organization.
7. Standing Plans – plans that are
ongoing; provide guidance for different activities done repeatedly. 8. Directional Plans – plans that are flexible or give general guidelines; although flexible and general, these plans must be related to the strategic plans. 9. Specific plans – plans that are clearly stated and which have no room for interpretation; language must be very understandable. Read and analyze the statements below and identify its level of planning: Corporate Level, Business Level, Functional Level. 1. The company hires the finest designers and brings them to other countries for training. f 2. The company works to increase the production within the year. b 3. The company plans to expand their business internationally. c 4. The company works their way to improve the quality of their bags and lessen customer complaints. b 5. The company works to become the leading manufacturer of bags in the country in five years. c 6. The company plans to implement a social media marketing campaign targeting the new customer. f 1. F 2. B 3. C 4. B 5. C 6. F PLANNING TECHNIQUES AND TOOLS IN BUSINESS DECISION-MAKING 1. Forecasting 2. Contingency Plan 3. Scenario Planning 4. Benchmarking 5. Participatory Planning 6. Management by Objectives (MOB) 7. SMART Goals 8. Charts and Graphs FORECASTING It is determining what is going to happen in the future by analyzing what happened in the past and what is going on now. IMPORTANCE OF FORECASTING 1. It helps you plan for the future. 2. It can inform business decisions. 3. It prevents tax bill surprises. ACTIVITY: Predict what may happen next in the given situations. 1. Poor customer service. 2. Offering good quality of products. 3. Employees are lack of trainings. 4. Good management. 5. Absenteeism of employees. 6. Insufficient supply of facemasks. 7. SCENARIO PLANNING CONTINGENCY PLANS ACTIVITY: Indicate your contingency plans in the given situations. 1. You made a powerpoint presentation last night. Now, you’re going to present it in your class, and suddenly a power interruption occurs. What will you do? ACTIVITY: Create at least 2 Scenario Planning in the given objectives. 1. Cater thousands of customers in your restaurant to increase your sales. 2. You decide to introduce a new product to the market. Indicate your contingency plans in the given situations (items 3-5)
3. You intended to carry your eco-bag to
the market. When you get there, you realized that you didn't pack your own eco-bag. What will you do? 4. You and your friends are going to Mt. Pinatubo. After reaching the city proper of Zambales at 1:00pm, there is no transportation available to go to the crater. What will you do next? 5. You planned to attend mass at 7:00am, but you woke up at 7:45am. What is your plan B in order for you to attend the mass on that day? GRADED RECITATION BENCHMARKING TYPES OF BENCHMARKING PARTICIPATORY PLANNING CHARTS AND GRAPHS Visual representations that help us to understand data quickly. Application of Charts and Graphs: Reports Business & Marketing Plans Infographic MANAGEMENT BY OBJECTIVE (MBO) –is a process that aims to improve performance of an organization by clearly defining objectives that are agreed to by both management and employee. SMART GOALS Application of SMART Goals: Personal Goal Vision and Mission Thesis or Research Title DECISION-MAKING It is a process which begins with a problem identification and ends with the evaluation of implemented solution. DECISION-MAKING PROCESS (Robbins and Coulter) 1. Identify the problem. 2. Identify the decision criteria 3. Allocate weighs to the criteria. 4. Develop alternatives. 5. Analyze the alternatives 6. Select an alternative. 7. Implement the chosen alternative. 8. Evaluate decision effectiveness. TYPES OF DECISION 1. STRUCTURED OR PROGRAMMED DECISION –repetitive and can be handled using a routine approach. 2. UNSTRUCTURED OR NONPROGRAMMED DECISION –applied to the resolution of the problem that are new or usual, or which information is incomplete. ORGANIZING Organization –is collection of people working together under a division of labor and a hierarchy of authority to achieve a common goal. NATURE OF AN ORGANIZATION NATURE OF AN ORGANIZATION NATURE OF AN ORGANIZATION NATURE OF AN ORGANIZATION NATURE OF AN ORGANIZATION TYPES OF AN ORGANIZATION 1. Vertical Structure 2. Horizontal Structure 3. Network Structure 1. VERTICAL STRUCTURE –your business has a pyramidal top-down structure and clears out issues related to authority, responsibility, and accountability. 2. HORIZONTAL STRUCTURE –refers to the departmentalization of an organization into smaller work units as tasks become increasingly varied and numerous. Types of Department: •Line departments –deal directly with the firm’s primary goods and services. •Staff departments –support the activities of the line departments. Approaches in Departmentalization: •Functional Approach –departmentalization around specialized activities such as Marketing and Sales, Production and Operation, Accounting and Finance, and Human Resources. •Divisional approach –where departments are formed based on management of their products, customers, or geographic areas covered. •Matrix Approach –is a hybrid form of departmentalization where managers and staff personnel report to the superiors, the functional manager, and the divisional manager. 3. NETWORK STRUCTURE –is a collection of independent, usually single function organizations, that work together in order to produce a product or service. Thank you! May God be with you always. LAST TOPIC https://www.indeed.com/career-advice/career-development/ horizontal-vs-vertical-organizational-structure ORGANIZATION THEORIES •Classical Organization Theory •Neoclassical Theory •Modern Organization Theory CLASSICAL ORGANIZATION THEORY 1. Scientific Management Approach •Proponent –Frederick W. Taylor •States that increase productivity and to make work easier by scientifically studying work methods and establishing standards. TAYLOR’S SCIENTIFIC MANAGEMENT PRINCIPLES 1. Develop a science for each element of an individual’s work to replace the old rule of thumb method. 2. Scientifically select and then train, teach, and develop the workers. 3. Heartily cooperate with the workers so as to ensure that all work is done in accordance with the principles of the science that has been developed. 4. Divide work & responsibility almost equally between management & workers. 2. Bureaucratic Management Theory •Proponent –Max Weber •Everyone is treated equal and the division of labor is clearly described for each employee. BUREAUCRACY CHARACTERISTICS •Task specialization •Hierarchical layers of authority •Rationality on recruitment and selection •Formal rules and regulation •Impersonal •Career oriented 3. Administrative Theory •Proponent –Henry Fayol •Identified the skills that were needed to manage an organization well. 14 PRINCIPLES OF MANAGEMENT NEOCLASSICAL THEORY 1. Humanistic Model •Proponents –Elton Mayo, Kurt Lewin •Emphasizes individual or group behavior and human relations in determining productivity. Productivity can be increased through social and human relations at: •Individual •Work group •Participative management MODERN ORGANIZATION THEORY 2. Socio-technical System 3. Contingency or Situational Approach a. Fiedler’s Contingency Model b. Path-Goal Theory c. Hersey & Blanchard’s Situational Model a. Fiedler’s Contingency Model •Proponent –Fred Fiedler •States that your effectiveness as a leader is determined by how well your leadership style matches the situation. b. Path-Goal Theory •Proponent –Robert House •States that a leader's traits and behaviors can directly affect the satisfaction, motivation, and performance of their team members. c. Hersey & Blanchard’s Situational Model •Proponent –Paul Hersey & Kenneth Blanchard •Focuses on the ability and willingness of individual employees. Leadership Styles: •Directing •Coaching •Supporting •Delegating