MODULE 1 - AN OVERVIEW OF MANAGEMENT AND ORGANIZATION

Module Title: An Overview of Management and Organization

Course Title: Organization and Management
Course Number: CBMEC 101
Course Description: This course deals with the fundamentals of business organizations and
management. The theories and principles of organization and management, as well as their
application in business and industry are thoroughly discussed. The functions of management
(Planning, Organizing, Staffing, Directing and Controlling) and the different forms of business
ownership with their strengths and weaknesses form part of the course coverage. The course
covers the benefits derived from entrepreneurship and importance of social responsibility as
another goal of business.
Total Leaning Time: (3 hours/week) 54hours
Pre-requisites: None
Overview
This course deals with the fundamentals of business organizations and management. The
theories and principles of organization and management, as well as their application in business
and industry are thoroughly discussed. The functions of management (Planning, Organizing,
Staffing, Directing and Controlling) and the different forms of business ownership with their
strengths and weaknesses form part of the course coverage. The course covers the benefits
derived from entrepreneurship and importance of social responsibility as another goal of
business.
This introductory course is also a chance for the students to develop their academic skills, in
particular their critical approach to the ideas they are presented with. Studying at this level
means actually engaging with what they are reading: considering what is being said in relation
to other theories, practical examples, and their own reflections.
It is important to understand all of these at the beginning to ensure that that the students are
able to get the most out of the course. The subject of business and management is an important
and exciting one. They will learn about the workings of business organisations, how they
function, and how they interact with the environment.
Learning Outcomes
At the end of the module, the students’ must:
1. Have adequate knowledge of organization and management.
2. Recognize the importance of effectiveness and efficiency.
3. Describe and examine the characteristics of a manager, levels of management, types
of managers, and the various roles of a manager in an organization.
4. Look at the skills required in managing
5. Discuss the principles of organization and management and their application to
business.
6. Recognize the importance of educating manager

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Indicative Content
Module I. An Overview of Management and Organization
A. What is management?
B. Effectiveness and Efficiency: A Basic Requirement
C. What is a Manager
The Levels of Managers
Types of Managers
D. Managerial Skills
Managerial Roles
E. What is an Organization
Basic Principles of Management and Organization
F. Educating Managers
G. History of Management Thought
o Pre-scientific management period
o Classical theory
o Neo-classical theory or behaviour approach
o Bureaucratic Model of Max Weber

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 I. AN OVERVIEW OF MANAGEMENT AND ORGANIZATION

What is management?

Good management is the success of any

organization. According to Mary Parker Follet
“Management is the art of getting things done
through people”. Management is necessary for
organized activity and needed to run all types
of management areas.

Each and every organization such as political,

business, social or culture and more involved
in this management because management is
the process of planning, organizing, directing
and controlling to achieve organization goal.

The responsibility of management to generate such conditions which are helpful to maximum
achievement so that people are able to execute their business. So, let us know the various
definitions of what is management?

Management is the act of getting people together to accomplish desired goals and objectives
using available resources efficiently and effectively. Since organizations can be viewed as
systems, management can also be defined as human action, including design, to facilitate the
production of useful outcomes from a system.

Efficiency - Means doing the thing

correctly; refers to the relationship
between inputs and outputs; seeks to
minimize resource costs

Effectiveness - Means doing the right

things; goal attainment

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 Management
Process Planning
Activities Includes defining goals,
establishing strategy, and
developing plans to
coordinate activities.

Organizing
Includes determining what
tasks to be done, who is to
do them, how the tasks are to
be grouped, who reports to
whom, and where decisions
are to be made.

Leading
Includes motivating employees, directing the activities of others, selecting the most effective
communication channel, and resolving conflicts.

Controlling
The process of monitoring performance, comparing it with goals, and
correcting any significant deviations.

Organizational Levels
First-line managers
o Supervisors responsible for directing the day-to-day activities of operative employees

Middle managers
o Individuals at levels of management between the first-line manager and top
management

Top managers
o Individuals who are responsible for making decisions about the direction of the
organization and establishing policies that affect all organizational members

Managerial Skills

When we talk about managerial skills, we talk about the skills of a manager to maintain high
efficiency in the way how his or her employees complete their everyday working tasks.
Because of that, managers will need skills that will help them to manage people and technology
to ensure an effective and efficient realization of their working duties.

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Technical Skills

As the name of these skills tells us, they give the manager’s knowledge and ability to use
different techniques to achieve what they want to achieve. Technical skills are not related only
for machines, production tools or other equipment, but also they are skills that will be required
to increase sales, design different types of products and services, market the products and
services, etc.

For example, let’s take an individual who works in the sales department and has highly
developed sales skills achieved through education and experience in his department or the same
departments in different organizations. Because of these skills that he possesses, this person
can be a perfect solution to become a sales manager. This is the best solution because he has
excellent technical skills related to the sales department.

Conceptual Skills

Conceptual skills present knowledge or ability of a manager for more abstract thinking. That
means he can easily see the whole through analysis and diagnosis of different states. In such a
way they can predict the future of the business or department as a whole.

Think about marketing and production as a business function and their specific goals. You’ll
see the essential difference. The conceptual skills will help managers to look outside their
department’s goals. So, they will make decisions that will satisfy overall business goals.

Human or Interpersonal Managerial Skills

Human or interpersonal management skills present a manager’s knowledge and ability to work
with people. One of the most critical management tasks is to work with people. Without people,
there will not be a need for the existence of management and managers.

These skills will enable managers to become leaders and motivate employees for better
accomplishments. Also, they will help them to make more effective use of human potential in
the company. Simply, they are the essential skills for managers.

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Managerial Roles

For better understanding, Henry Mintzberg (Canadian academic and author on business and
management) categorized all activities into ten managerial roles performed over the course of
a day. These are as follows:

Interpersonal Informational Decisional

Entrepreneur
Figurehead Monitor Disturbance
Leader Disseminator handler
Liaison Spokesperson Resource
allocator

Interpersonal Roles

o Figurehead – includes symbolic duties which are legal or social in nature.

o Leader – includes all aspects of being a good leader. This involves building a team,
coaching the members, motivating them, and developing strong relationships.
o Liaison – includes developing and maintaining a network outside the office for
information and assistance.

Informational Roles

o Monitor – includes seeking information regarding the issues that are affecting the
organization. Also, this includes internal as well as external information.
o Disseminator – On receiving any important information from internal or external
sources, the same needs to be disseminated or transmitted within the organization.
o Spokesperson – includes representing the organization and providing information about
the organization to outsiders.

Decisional Roles

o Entrepreneur – involves all aspects associated with acting as an initiator, designer, and
also an encourager of innovation and change.
o Disturbance handler – taking corrective action when the organization faces unexpected
difficulties which are important in nature.
o Resource Allocator – being responsible for the optimum allocation of resources like
time, equipment, funds, and also human resources, etc.

The Nature of Organization and Management In the real world of administration, organization
and management are essential elements through which human actions and objectives are
carried out and accomplished. In a manner of speaking, organization and management become
a means to an end.
Organization
An organization is an entity comprising a group of people, established to accomplish certain
goals. A mere grouping of people will not qualify as an organization, the group must have some
objectives to achieve and to be able to do so, they must interact, use knowledge and techniques,
and work together in patterned relationships.

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The main reason for the existence of an organization is to accomplish some common goals.
The structure of the organization is bound by a common purpose.

It is people who constitute the dynamic element of an organization. They work in groups in the
various departments of an organization. Organizations are needed in order to address the
different difficulties that individual may find hard if not impossible to achieve.

Organizations also help in the performance of

tasks and job through coordination and
collaboration.

Organization also helps management to achieve

its goals and objectives. Organization may also
contribute to the stability, development and
growth of an enterprise.

Common Characteristics of Organization

Coordination of effort - Persons working in coordination with others will produce better outputs
than when they work independently.

Common goal or purpose - A common purpose unifies employees or members and gives
everyone an understanding of the organization’s direction.

Division of Labor - It involves delegating specific parts of a broader task to different people
within the organization based upon their particular abilities and skills.

Hierarchy of Authority - Hierarchy of authority is essentially the chain of command—a control

mechanism for making sure the right people do the right things at the right time.

Basic Principles of Management

Division of labor/work Centralization
Authority Scalar chain
Discipline Order
Unity of command Equity
Unity of direction Stability of tenure of personnel
Subordination of the individual interests to the Initiative
general interests
Remuneration Esprit de corps

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Division of labor/work
Employees are specialized in different areas and they have different skills. Different levels of
expertise can be distinguished within the knowledge areas (from generalist to specialist).

Authority
In order to get things done in an organization, management has the authority to give orders to
the employees. The accompanying power or authority gives the management the right to give
orders to the subordinates.

Discipline
It is often a part of the core values of a mission and vision in the form of good conduct and
respectful interactions. This is essential and is seen as the oil to make the engine of an
organization run smoothly.

Unity of command
An individual employee should receive orders from one manager and that the employee is
answerable to that manager.

Unity of direction
All employees deliver the same activities that can be linked to the same objectives. All activities
must be carried out by one group that forms a team.

Subordination of the individual interests to the general interests

The primary focus is on the organizational objectives and not on those of the individual. This
applies to all levels of the entire organization, including the managers.

Remuneration
There are two types of remuneration namely non-monetary (a compliment, more
responsibilities, credits) and monetary (compensation, bonus or other financial compensation).

Centralization
Centralization implies the concentration of decision making authority at the top management
(executive board).

Scalar chain
“Hierarchy” management principle states that there should be a clear line in the area of
authority (from top to bottom and all managers at all levels).

Order
Employees in an organization must have the right resources at their disposal so that they can
function properly in an organization.

Equity
Employees must be treated kindly and equally. Employees must be in the right place in the
organization to do things right.

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Stability of tenure of personnel
Deployment and managing of personnel should be in balance with the service that is provided
from the organization. Management strives to minimize employee turnover and to have the
right staff in the right place.

Initiative
Employee initiatives are a source of strength for the organization. This encourages the
employees to be involved and interested.

Esprit de corps
This stands for striving for the involvement and unity of the employees. Managers are
responsible for the development of morale in the workplace; individually and in the area of
communication.

Basic Principles of Organization

Principle of Objective - Organizational goals, departmental goals, and individual goals must
be clearly defined and must have uniformity.

Principle of Analysis - Managers in organization must be able to break a problem down into
its components, analyze these components and come up with a solution.

Principle of Simplicity - The organizational structure should be simple and be made clear so
that it is easily understood by each and every person.

Principle of Functionalization - Business firms are not supposed to be organized to

accommodate individuals but it should be built around the main functions of the business.

Educating Managers

Offer leadership training programs for managers

The roles of managers and leaders are often labelled distinct. Where managers command
people to take action, leaders inspire them. You can transform your managers by enrolling them
on leadership training for managers. These programs should be designed to cover both
knowledge and practical leadership skills and abilities. Leadership training courses for
managers could also include opportunities to learn and practice skills.

Teach managers how to coach their reports

Coaching is all about facilitating the development of others and guiding them towards the
achievement of their personal goals. Provide them with opportunities to learn through
workshops and online courses. These training efforts should help managers understand that
their own goals are not their only priority anymore. That they need to be focused on the goal
achievement and development of their reports, too.

Encourage managers to practice, reflect, learn and repeat

Encourage them to adopt a cycle of practicing, reflecting, learning and repeating. Give them
the time, freedom and confidence to put their new leadership and coaching skills to use in real-

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time situations. Sometimes these opportunities for practice will be structured, like performance
review meetings and team talks. The important part is that managers unpack the feedback they
succeeded or failed to offer, and how they could improve their skills in the next situation.

Train managers to leverage technology

The soft skills that managers need to become great leaders and coaches are important, of course.
But today, managers also have the advantage of technology. Heaps of tools and apps that help
them connect and inspire others with ease, even when teams are remote. Make sure that your
training stays current, and includes new manager training topics on communication, goal
setting, teamwork, collaboration, and all the other important management skills of the 21st
century.

The Evolution of Management Thought and the Evolution of Management Theories

The evolution of management thought is a process that started in the early days of man. It began
since the period man saw the need to live in groups. Mighty men were able to organize the
masses, share them into various groups. The sharing was done accord to the masses’ strength,
mental capacities, and intelligence.

o Pre-scientific management period

o Classical theory
o Neo-classical theory or behaviour approach
o Bureaucratic Model of Max Weber

The Pre-Scientific Management Period

The industrial revolution that took place in the 18th century had a significant impact on
management as a whole. It changed how businesses, as well as individuals, raised capitals;
organize labor and the production of goods. Entrepreneurs had access to all the factors of
production such as land, labor, and capital.

However, the new dimension that management took following the industrial revolution cannot
be discussed without mentioning notable personalities who contributed their quarter. They
were able to introduce useful ideas and approaches to give management a precise and
universally acceptable direction. Here are some of them.
 Professor Charles Babbage – United Kingdom (1729 – 1871)
Prof Babbage, a renowned professor in mathematics at Cambridge University discovered that
manufacturers were relying on guesswork and suggestions and urged them to utilize
mathematics and science to be more accurate and productive.
 Robert Owens – United Kingdom (1771 – 1858)
Robert was regarded as the father of personnel management because of his approach and focus
on employee welfare. He introduced co-operation and trade unions. Robert believed that
employee welfare could determine their performance to a large extent. He encouraged the
training of workers, education for their children, canteens in the workplace, shorter working
hours, among others.
Other Contributors to the Pre-Scientific Management Period Include:
 Henry Robson Towne – USA
 James Watt Junior – United Kingdom
 Seebohm Rowntree – United Kingdom

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The Classical Theory

Prof Babbage, Robert Owens, and other names earlier mentioned can be regarded as the
pioneers of management. But their contribution to the evolution of management is little. The
beginning of what is known as the science of management started in the last decade of the 19th
century. Names like Emerson, F.W. Taylor, H.L. Grant, and others, paved the way for the
establishment of what is called scientific management.

During the classical period, management thought was focused on job content, standardization,
the division of labor, and a scientific approach towards the organization. It also was closely
related to the industrial revolution as well as the rise of large-scale enterprises.

The Neo-Classical Theory

This period of evolution of management thought is an improvement of the classical theory. In

other words, it modified and improved upon the classical theory.
For instance, Classical theory focused more on the area of job content, including the
management of physical resources, while the neo-classical theory gave more profound
emphasis on employee relationships in the work environment.

The Bureaucratic Model

A German Sociologist called Max Weber proposed this model. And it includes a system of
rules, division of labor hinged on functional specialization, legal authority, and power, the
hierarchy of authority and placement of employees based on their technical competence.

The Evolution of Management Theories

Organizations have been shaped and through the writings of several writers. Their write-up
consisted of governance of kingdoms and management of humans. And these formed the
literature that helped in the development of management theories. And these management
models were also offered by the military, political and religious organizations.

For instance, Sun Tzu’s book “The Art of War” was written in the 16th century BC. Sun was
also a Chinese army general. However, the writings in Sun’s book were also used for
managerial purposes. The book highlights that it’s possible to achieve success by using the
strength of the organization to exploit the weakness of rivals.

Another great book was Chanakya’s Arthashastra. It was written in the third century BC and
focused on the governance of the kingdom concerning the formulation of policies of
governance and management of people.

The evolution of management started from civilization. So, what we have now is refined and
improved management thoughts and theories. But knowing how this evolution came about is
vital. It will help to improve one’s knowledge of the process and effectively utilize management
principles for the betterment of the organization.

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 MODULE 1 – Exercise
CBMEC 101 – Organization and Management

Name: ________________________Course & Year: ___________ Date: ______Score_____

Instruction: Answer the questions with your own words. Cite some examples if needed. Write
your answer on the space provided. (You can use the back page) Answer should not be less
than 8 sentences.

1. Contrast effectiveness with efficiency.

2. Why are businesses so important not only to individuals and families but to the nation’s
economy as well?

3. Why Study management?

4. Why are organizations important?

5. Choose one Principle of Management & provide specific business situation where it can
be used.

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 MODULE 1 - Case
CBMEC 101 – Organization and Management
Name: ________________________Course & Year: ___________ Date: ______Score_____
Instruction: Answer the questions with your own words. Cite some examples if needed. Write
your answer on the space provided. (You can use the back page) Answer should not be less
than 10 sentences.
CASE I: CAPIZ COLLEGE OF BUSINES AND TECHNOLOGY (CCBT): Who’s next?
After the death of her husband, Mrs. Cecilia Protacio started operating her own elementary
school. After five years she was requested by the parents of her students to open a high school
department and she reluctantly obliged. When the total enrolment exceeded one thousand
students, she opened the college department.
By the year 2019, the school has become popular throughout Western Visayas and as of 2019,
the number of students enrolled are as follows:

Elementary = 1130 High School = 1000 College = 6500

In educating students, CCBT has an excellent record. The passing rate of its graduates is above
the national average in the various licensure examinations.
Mrs. Protacio is already 60 years old and is beginning to worry for her replacement as president
of CCBT. She has three sons and wants one of them to take over soon as possible.
Mrs. Protacio’s eldest son Elmer is 35 years old, an electronics engineer, and is working as
network administrator of a big communication firm in Iloilo. Elmer is the immediate superior
of five other professional engineers. Elmer’s wife is also an electronics engineer and is working
in the same company as head of planning department. They have a daughter and a son. They
are very much contented with their jobs.
Mrs. Protacio’s second son is Cleo who is 33 years old and a professional civil engineer. He
works as associate engineer in the biggest public utility firm in Bacolod, a car for him and
another for his wife, and enough cash to open a business when they retire. His wife is a
professional engineer and is also connected with Cleo's company as supervisor of the IT
Department.
Mrs. Protacio’s third son, Dino, is enrolled in college course in a big university in Manila just
like his two old brothers. Out of 50,000 who took the entrance examinations, he obtained the
tenth highest score. Inspire of that score, he failed to finish his college course.
Dino worked for two years in a call centre as a customer relations agent and also handled an
English class exclusively for Koreans. He enrolled in specialized courses in computer and
lately he established his own small business using the computer as his main equipment.
Reviewing the credentials of her sons, Mrs. Protacio seems to have struggle in making her final
choice. She is contented to know, however, that whatever weaknesses her children may have,
they can be remedied by proper training.
Assessment:
1. Assess who is the most desirable successor of Mrs Protacio based on the various
characteristics and skills required of a manager.
2. Describe other acceptable factors that Mrs Protacio may use to come up with the best
choice.

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Additional Readings:
Medina, R. (2017). Business Organization and Management. Sampaloc Manila, Philippines:
Rex Book Store.
Payos,R., Espinosa E., Zorilla, O. (2016) Organization and Management. Sampaloc Manila,
Philippines: Rex Book Store.
Robbins S., Coulter M. (2013) Management, Eleventh Edition. Essex, England: Pearson
Education
https://ec.europa.eu/programmes/erasmus-plus/project-result-content/9a1c8bee-11f3-48f0-
8e25-
c86b14cf445a/Business%20Management%20And%20Organization%20Booklet.pdf
https://saylordotorg.github.io/text_principles-of-management-v1.1/2012
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