ORGANIZATION

AND MANAGEMENT
CHAPTER 1
01. Structural elements of an 04. Management Structure
organization

02. Principles of good

organization
05. Management Control

03. Management 06. Executive Function

07. Executive Leadership

 What is Organization?

● Is a group of individuals who are

cooperating willingly and effectively for
a common goal

● Are structured to promote better

management
 Structural Organization

● The 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 process that
Structural Organization link both vertically and
horizontally the various parts of
an organization
 Structural Elements of an Organization

Men Materials
These are the different members of the organization Represents the materials necessary in the
starting from the very top of the last workman in the distribution of functions or in the attainment of its
enterprise. objectives.
 Structural Elements of an Organization

Machine Methods Money

The tools necessary in The procedures and ways The financial resources of the
producing its desired output. used in the course of its organization.
actions.
 Major elements of Organizational Structures

Distribution of functions
1 The functions to be performed, the groupings of functions, and
the vertical and horizontal task relationships among functions.

Vertical and horizontal authority relationships

2 Vertical - Upper-level management gives orders and employees
follow them without inputs or objections.. Horizontal –
Employees are backed to make suggestions to improve work
processes with authority to implement changes.

3 Communication and decision processes

The manner in which formal decisions are made by whom.

4 Policies
The decisions, rules or guidelines.
Principle of Good Organization

Principle of Objective
A clear and complete adefinition of the objective must be
known.

Analysis
A sound business judgement attempts to build an organization
through full knowledge of the requirements of the business.

Simplicity
Simplest organization that will serve to attain the desired
objective is considered the best.
Principle of Good Organization

Functionalism
The organization should be built around the main functions of
the business and not around the individuals.

Departmentalization
The scope operation cen be very broad. Necessitating
departmentalization to achieve a smoother flow of operations.

Centralization of Authority and Responsibility

This is necessary in order to have authority and responsibility
definitely fixed.
Principle of Good Organization

Limited span of control

The number of subordinates and executive can manage
effectively.
 What is Management?

● Management is a process

● Management is a function
Management Concept

● Must be systematic

● Must be scientific

● Must be humanistic
Management Structures

Objective: to Facilitate the

coordination and control over the
activities of the company.

No two companies are identical.

Each company should be studied

in terms on its purpose, size and
the nature of its business,.
 Management Structures
In any sizable organization, there should be delegation of
responsibility because:

1. It is physically impossible for one person to control effectively all the

works of a large organization through personal contact with it.

2. No person possesses the skill necessary to guide personally the highly

specialized activities in a modern construction business.
 Management Structures
The line of responsibility works in two ways:

1. From the executive to the supervisor down to the workers under his
jurisdiction and conversely,

2. From the workers to those who are in authority over him.

Note: the line of authority must kept clear at all times in order to
facilitate the ready flow of communication and control.
 Management Control

● “ to check or regulate “ , “ to keep within limits “ – Webester’s New

College Dictionary

● In Broader interpretation to apply: not only to check nor command, but

also the whip. Not only to regulate, but also to stimulate.

● Control include activities that require restrictive or correction action.

 Management Control

Effective Communications System

- Important element of executive control.
- To the manager, information has four purpose to serve. It must be
answer the question:

1. What are we going to do?

2. How well are we doing?
3. How can we do better?
4. Does it serve as an aid to coordination?
 Manager

● The bridge between the board of directores and strockholders or between

top management and the rest of agency personnel

● Most difficult and with the highest degree of responsibility

 Manager
Quality of an effective manager:

1. Studies, analyzes and dissect his job.

2. Know to delegate the administrative details.

3. He is willing to delegate to and share with his subordinates the credit of

a job well done..

4. Trains and develops his men to prepare them to assume delegated

works.

5. Knows how to control and plan his time.

6. Institutes control for effective performances

 Planning
- Is the job of making happen.

Plans may be classifies as:

Objective of the enterprise

Policies

Procedures

Budget

Programs
 Executive Functions

To plan To direct

To organize To control
To plan
PLANS may be classified as:

• Objective of the enterprise

• Policies

• Procedures

• Budget

• Programs
Organizing

- Arrange into a structured order.

Directing
- Guiding and oversees subordinates.

Two process:

1. Leadership – by which an executive

imaginatively directs, guides or influences the
work of others in choosing and attaining
particular ends.

2. Coordination – Is the process whereby an

executive develops an orderly pattern in
group effort among the subordinates and
secures unity of action in pursuit of among
purpose.
 Executive Functions
How can executives coordinate efforts in their organization?

Clarifying authority and responsibility

Careful checking and observation

Facilitating effective communication

Utilizing leadership skills

 Control

- Defined as the process by which an

executive gets the performance of
his subordinates to correspond as
closely as possible to chosen plans,
orders, objectives or policies.

• Policies – are general statements,

which guide or channel the thinking
and action of members of an
organization.

• Procedures – are reflection of

policy.
 Executive Leadership

He is the fellow who He is the fellow at the He is the leader of the

gets things done through top of the organizational organization, and a good
the efforts of the others. pyramid. leader usually makes a
good manager.
 As a leader, the manager should be an exemplar of
good personal appearance, pleasant mannerism,
friendliness, cheerfulness, and good health so that he
can command respect among his subordinates.
 Example of Executive Leadership

● Sports captains (depending on the nature of the sport) coordinate and

direct the actions of individual players to fit in with the overall game
plan, issuing directions and then monitoring each players actions to
ensure they are in the right place or doing the right thing.

● Orchestral conductors use a similar approach, using the musical score (as
the equivalent to the game plan) to ensure that each musician plays the
right part and that the timing of all the musicians is coordinated.

● Mr. Carlson’s guiding principles is that “ a political leader should never

ask others to do what he himself was unable to do” .
 Example of Executive Leadership
Principles they stand for:

● Commitment
● To be strict
● Good leader
● Focuses on contribution

Conclusion:
Whether in politics or within a company or organization, one is to make the
people wise and the other is to keep them ignorant.
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