GOOD GOVERNANCE

AND SOCIAL
RESPONSIBILITY
BSBA FM 3B | GROUP 1
 1
Dimensions of Organizational Structure
• Allocation of individual tasks and
responsibilities, job specialization
and definition Consequences of Structural
• Formal reporting relationships, levels Deficiencies (Child)
of authority and spans of control • Low motivation and morale
• Grouping together of sections, • Late and inappropriate
departments, divisions and larger units decisions
• Systems for communication of • Conflict and lack of
information, integration of effort and coordination
participation • Poor response to new
• Delegation of authority and procedures opportunities and external
for monitoring and evaluating the change
action • Rising costs- e.g.
• Motivation of employees through systems diseconomies of scale
for performance appraisal

BSBA FM 3B | GGSR
 Principles of Organizational Design 2
and Diagnosis

• Simple structure: a centralized, perhaps autocratic

arrangement typical of the entrepreneur founded company.
Little hierarchy or control exercised by the chief
executive.
• Machine bureaucracy: best at mass produced tasks and is
characterized by many layers of management and formal
procedures
• Professional bureaucracy: likely to include some parts of
the administration is set by independent professional
bodies. It tends to be more democratic and more highly
motivated, with its lines of authority is less clearly set.
• Divisionalized form of bureaucracy: applies more to
multinational or industrial corporations where a small
central core controls key guidelines for a number of
otherwise autonomous units.
 3
Types of Organizational Structure

• Functional -grouping of major functions e.g. contracting,

information, finance, personnel and public health in
health authorities
• Product/service- grouping by service/product. For example,
in a hospital, into orthopedic, surgical, psychiatric
rather than medical, nursing, paramedical, hotel services
(functional).
• Geographical- a national service develops regions, areas
or district authorities
• Divisional- grouping of services and/or geography and
functionality (but with functions such as finance,
personnel, planning retained at headquarters).
• Matrix- grouping of projects and functions

BSBA FM 3B | GGSR
 4
CENTRALIZATION AND
DECENTRALIZATION

CENTRALIZATION when all

DECENTRALIZATION If the
the power of decision
power is dispersed
making rests at a single
among many people/groups,
point in the organization
it is known as
ultimately in the hands of
decentralized or
one person or group, the
distributed.
structure is centralized.

BSBA FM 3B| GGSR

 LEVELS OF THE ORGANIZATION 5

According to Drucker, organizations are layered into three main levels:

1.The technical level of the organization is concerned with specific

operations and defined tasks, with actual jobs to be done, and with
performance of the technical function.
2. The managerial level (or organizational level) is concerned with the
coordination and integration of work, at the technical level, e.g.
resource allocation, administration and control of the operations of
the technical function.
3. The community level (or institutional level) is concerned with the
broad objectives and the work of the organization as a whole.
Decisions made at this level will include the selection of operations,
development of organizations in relation to external agencies and the
wider social environment.
 POLITICAL ENVIRONMENT OF
BUSINESS ENTERPRISE
What is political environment in business?
• The political environment in business
encompasses the governmental
BSBA FM 3B | GGSR
activities and the political
conditions that impact the operations
of a business. Some of the political
factors include political stability
and employment laws.
Business Enterprise
• A business enterprise is any type of
operation that is involved in
providing goods or services with the
anticipated outcome of earning a
profit.
6
Importance of political
environment
• The political environment is
crucial for international
businesses, as it can affect
marketability, investments,
and share price valuation.
• The level of involvement in a
foreign market determines the
need for monitoring the
political climate of the
countries where the business
operates.
• Understanding the political
environment is essential for
businesses to plan their
operations effectively and
make informed decisions.
Changes in government policies and attitudes towards foreign
businesses can lead to changes in the business environment. For
7
instance, a government may introduce new policies that favor local
businesses, making it more difficult for foreign companies to operate
in the country. Conversely, a government may encourage foreign
investment by offering incentives and reducing barriers to trade.

Government ownership of economic activities is still customary in some

countries lacking a well-developed private sector. In such cases, the
government may own significant shares of companies or operate industries
directly. This can impact the company’s operations and decision-making
processes.

Political Stability: Investors should be aware of the stability of

the political environment in the target country. A loss of
confidence in the political environment could lead to a company
having to reduce its operations or withdraw altogether. Frequent
changes in regime are often indicators of political instability.
Import Restrictions: Products and investments seen as undesirable or
a threat to local industry may face import restrictions. Governments
may impose quotas, tariffs, or other barriers to trade to protect
local industries or to promote self-sufficiency. These restrictions
can significantly impact the operations of foreign companies in the
country.
 8
CONTEMPORARY SOCIAL ISSUES

Contemporary social issues-

corporations deal with
various social issues and
problems, both directly
related to their operation
and not. It would not be
possible to satisfactorily
describe all of the social
issues faced by business.
3 Contemporary Social
Issues
• Environmental issues
• Global Issues
• Technological issues
 ROLES OF STATE & ITS' IMPACT 10
ON ORGANIZATION

CONSUMER PROTECTION
o When a vendor fails to honor the guarantee, the purchaser has
recourse in the law. Likewise, when a product causes harm to an
individual, the courts may hold the vendor or the manufacturer
responsible. Other manifestations of this protection are as
following:

a) Businesses need the court system for protecting property rights,

enforcing contracts, and resolving commercial disputes.
b) Government protects consumers from businesses.
c) Government hears and corrects consumers complaint about business
fraud and put into effect recalls of substandard an dangerous
products.

BSBA FM 3B | GGSR
 11
CONTRACT ENFORCEMENT
o Is one of the pillars of the rule of law. Effective contract
enforcement. When two parties strike a bargain, there must be
some mechanism to ensure that each party will stick to the terms.

EMPLOYEE PROTECTION
o Many agencies work to protect the rights of employees (Regular
employment, probationary employment, minimum employable age,
prohibition against stipulation of marriage, anti-sexual
harassment law, etc.)

INVESTOR PROTECTION
o Government mandates the companies make financial information
public, thereby protecting the rights of investors and
facilitating further investment, Generally done through filings
with the Securities and Exchange Commission.

BSBA FM 3B| GGSR


PERMISSION
o Most businesses need to
register with a state
government to operate.
o The function of this
registration is usually to
define the financial
liability the owners of the
company have
12
ENVIRONMENTAL PROTECTION
o When a marketing
transaction impacts a
third party besides the
marketer and purchaser the
effect is called
"externality".
 13
Political parties

o A political party is defined as an organized group of people

with at least roughly similar political aims and opinions,
that seeks to influence public policy by getting its
candidates elected to public office.
BSBA FM 3B | GGSR

o Parties tend to be deeply and durably entrenched in specific

substructures of society in a sustainable and well
functioning democracy. They can link the governmental
institutions to the elements of the civil society in a free
and fair society and are regarded as necessary for the
functioning any modern democratic political system.
 PRESSURE GROUPS
14
A pressure group is an organized group
GOVERNMENTAL UNITS PRESSURE GROUP- are
that seeks to influence not only organizations set up in order to
government policy but also private influence government policy-making,
enterprises’ operating policy. legislation, and public opinion. They
are also known as lobbying groups,
The following are the types of pressure advocacy groups, special interest
groups which can become variables to groups and protest groups. Political
pressure groups vary significantly by
consider in laying down platform of size, influence and the methods they
government not only in government but employ to exert influence.
also in private enterprises. Additionally, the interests advocated
o Economic pressure groups by political pressure groups are wide-
o Public pressure groups ranging and groups are motivated to
o Sectorial pressure groups come together in support of a
particular action through commonly
o Religious/attitude pressure groups
held interests or beliefs
o Governmental units pressure group

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THANK YOU FOR

LISTENING!
Alvarez, Charlene
Baccay, Levy Anne
Baligod, Jamaica C.
Binarao, Christine
Denna, Lendy
Gazzingan, Anjulyn B.
Guillermo, Leah Rose
Orpilla, Arden
Rance, Trisha
Rivera, Kimberly
Vidad, Mary Rose V.