Organization and Management

ORGMAN
Description:
 This subject is designed to familiarize the students with the basic
concepts, principles, and processes related to business organization,
and the functional areas of management. Particular emphasis will be
given to the study of management functions like planning,
organizing, leading, and controlling, and orient the students on the
importance of these functions and the role of each area in
entrepreneurship
Coverage:
 CHAPTER 1. THE JOB
 CHAPTER 2. REQUIREMENT OF THE JOB
 CHAPTER 3. THE ORGANIZATION AND ITS ENVIRONMENT
 CHAPTER 4. THE BUSINESS ENVIRONMENT
 CHAPTER 5. GOAL-SETTING PROCESS
 CHAPTER 6. EXECUTING THE PLAN
 CHAPTER 7. MANAGING PEOPLE
 CHAPTER 8. MEASURING RESULTS
 CHAPTER 9. SUSTAINING OPERATIONS
 CHAPER 10: GLOBAL COMPETITIVENESS
 CHAPTER 1: THE JOB
 LEARNING OBJECTIVES:

 TO UNDERSTAND THE MEANING OF MANAGEMENT AND THE EVOLUTION OF

MANAGEMENT THEORIES.
 TO APPRECIATE THE IMPORTANCE OF THE APPLICATION OF GEMS CYCLE FOR
THE SUCCESS AND GROWTH OF THE BUSINESS.
 TO BE AWARE OF THE CRITICAL ROLE OF MANAGER AND HIS/HER DUTIES
AND RESPONSIBILITIES.
EVOLUTION OF MANAGEMENT THEORIES
 MANAGEMENT – The simplest definition of management is getting things
done through people. It implies that an organization, whether small, medium, or
large, is composed of people.

 1910s – 1940s: Management as a Science

- Management as a science was developed in the early 20th century and focused on increasing
productivity and efficiency through standardization, division of labor, centralization, and
hierarchy. A very ‘top down’ management with strict control over people and process
dominated across industries.
EVOLUTION OF MANAGEMENT THEORIES
 1950s – 1960s: Functional Organization
- Human Resource (HR) moment.
 1970s: Strategic Planning
- SWOT (strategic planning).
 1980s: Competitive Advantage
- TQM , Six Sigma and Lean Management.
EVOLUTION OF MANAGEMENT THEORIES
 1900s: Process Optimization
- Benchmarking
 2000s: Big Data
- Technology Focus for growth
 PRINCIPLES OF MANAGEMNT
 HENRI FAYOL (1841-1925) – developed fundamental notion of principles of management. His
14 principles of management are the following:
1. Division of Work –whole work is divided into small task. More on specialization.
2. Authority and Responsibility – Issue of commands followed by responsibility for their
consequences.
3. Discipline – refers to obedience, proper conduct in relation to others, respect of authority.
4. Unity of Command – This principle states that each subordinate should receive orders and be
accountable to one superior.
5. Unity of Direction – All those working in the same line of activity must understand and
pursue the same objectives.
6. Subordination of Individual Interest – The management must put aside
personal considerations and put company objectives first.
7. Renumeration – Workers must be paid sufficiently.
8. The degree of Centralization – implies the concentration of decision-making
authority at the top management.
9. Scalar Chain – refers to the chain of superior ranging from top management
to the lowest rank.
10. Order – ensures the fluid operation of a company through authoritative
procedure.
11. Equity – Employees must be treated kindly and justice must be enacted to
ensure a just workplace.
12. Stability of Tenure of Personnel – The period of service should not be too
short and employees should not be moved from positions frequently.
13. Initiative – Using the initiative of employees can add strength and new ideas
to an organization.
14. Espirit de Corps – the need of managers to ensure and develop morale in the
workplace; individually and communally.
 KEY ROLES
Fayol also divided the management function into five key roles.
1. To Organize
2. To Plan and forecast (Prevoyance)
3. To command
4. To Control
5. To Coordinate
 Management GEMS
 The 4 GEMS of Management, by analogy stand for the four important
management cycles:
1. Goal
2. Execution
3. Measurement
4. Sustenance
- These are the four pillars that propel organizations to survive, grow, and
reach greater heights. These are the tools that leaders use to galvanize a work force into action.
They are solid anchors that ensure the organization’s staying power when crisis looms.
 Stage 1: Goal Setting
- In setting up a goal or objectives, it should be derived from the essence of the
Purpose, Vision and Mission of the organization.
1. Synthesizing Information – more on data gathering. (Demand)
2. Formulating Alternatives – go for plan B or C if A doesn’t work well.
3. Deciding on Courses of Action – selecting the best option.
4. Establishing Goals – setting daily target or quota.
 Stage 2: Executing the Plan
 - It involves directing the attainment of project or business goals. To do this, the
manager or business owner engages in three sub-stages:
1. Organizing – Identifying your suppliers, developing of your retail goods, and identifying
your staff and their roles.
2. Communicating – orienting the workforce about the business plans, goals, policies, and
system.
3. Guiding – teaching them on how to relate to customers, especially the difficult and
demanding ones.
 Stage 3: Measuring Results
 This is the EVALUATION STAGE.
Proper evaluation allows the manager to detect deviations from the plan in time
to take corrective action. This is done by comparing actual activities with the planned activities.
Quantitative evaluation – increase or decrease in customers. (helps in determining if the
business is selling the right product, if the owner needs to go for a variety, or to pull out products
that is not sellable.)
Qualitative evaluation - basically it’s all about customer’s satisfaction (feedbacks,
complaints through survey forms.)
 Stage 4: Sustaining Growth
“Only if you are able to ensure the continuity and growth of your company can you say
that you are truly successful.”
1. Promoting Change – change is synonymous with improvement. Therefore, in order to keep
improving, you must welcome changes.
2. Developing People – Setting criteria even before the hiring stage is very important. In this
way, you will have that opportunity to start with the right people.
 Roles and responsibilities of a Manager
1. Staffing – writing job descriptions, job adv, reviewing and interviewing
prospect applicants, hiring and firing.
2. Communication – relaying correct information from the top. Resolving
conflicts, motivating and interacting with the public in behalf of the company
to preserve customer relation.
3. Training – Identifying people who are qualified to another level. Evaluating if
a specific function needs additional training.
4. Administrative Investigation and Discipline – Decision making. (termination,
sanctions)
 Roles and responsibilities of a Manager
5. Employee Relations - Maintain a healthy relationship among employees.
6. Business Growth and Sustainability – Actions should be geared towards
business growth and sustainability. Review Financial aspect and operation.
 CHAPTER 2: REQUIREMENTS OF THE JOB
 LEARNING OBJECTIVES:
 To know the distinction between “hard skills” and “soft skills” and their key roles for
superior performance of a job holder.
 To understand the Iceberg Theory in a manager’s search for the right person for the job.
 To appreciate the importance of core job competencies.
 To be aware of the different value systems that influence employees’ behavior in the
workplace.
Difference between Hard skills and Soft skills
A. To be good at hard skills, it usually utilizes the Intelligence Quotient or IQ (left brain) and
to be good at soft skills usually takes Emotional Quotient or EQ (right brain).
B. Hard skills are rules where rule stay the same regardless of circumstance, organization
culture, and co-employee. In contrast, soft skills are skills where the rules change
depending on the circumstances and etc.
C. Hard skills can be learned in school or trainings while soft skills are not directly taught in
school and have to be learned during interaction with other people in school or during
OJT.
 Definition of Job Competency
 It is the ability of an individual to do a job properly.
 It is also a capacity to follow a set of defined behaviors.
 It is the combination of knowledge, skills, abilities, and personal attributes that
contribute to enhanced employee performance and ultimately result in
organization success.
 The following are some common core competencies required of an employee for excellent
performance:
 Adaptability
 Commitment
 Creativity
 Motivation
 Foresight
 Leadership
 Independence
 Emotional Stability
 Analytical Reasoning
 Communication Skills
 Customer Focus
 Team and Cooperation
 Results Orientation
 The Iceberg Theory
 Also known as “Theory of Omission”
 Like an iceberg, what can be seen among the employees is the surface – “hard skills”. The “soft
skills” are not visible; they lie beneath the surface like an iceberg.
 What you see in the surface is not the whole thing; there could be a mountain-sized iceberg
below the visible iceberg on the surface.
 Personal Values
 The word ‘values is taken from the root word “valor” which means strength.
 Values are sources of strength because they give people the power of action.
 Values are lasting beliefs or ideals that are shared by all members of a company.
 Example: Excellence, Customer Focus, Integrity, Teamwork, Creativity and Innovation.
 FILIPINO VALUES
 Hiya
 Amor Propio or “self-esteem”
 Hospitable
 Religious
 Respectful to elders and female members of the society.
 Bahala na
 Utang na loob
Two models of Filipino Value: Exogenous model (foreign model) and Indigenous model (traditional
model.)