ORGANIZATION AND MANAGEMENT (Part 2)

MANAGEMENT CONCEPT

• Management to be effective must be systematic. Things can be done better by means of plan of action. The plan is
a step by step outline of what is to be done and who does what. Good decisions and actions are based on the
systematic application of sound principles of complete and reliable facts, and of good practices. When
management is systematic, there can be no room for personalities, prejudices, and unfair judgement.

• Management to be successful must be scientific. Scientific management has done more to advance and win the
status of mankind today than has any other single factor. By the application of the scientific method to the study
and analysis of the operations of a particular job, men have discovered the best known methods of performing the
operation. Since there is always a better way of doing a job, men will keep on experimenting and analyzing the
different factors affecting their work in search of the one best way. They will develop better methods of
increasing production without increasing work time and operation cost.

• Management must be humanistic. Where machine may have standard efficiency and be set to run at a given
speed, human beings, whether manager or workers, cannot be so easily regulated to a pre-determined point of
accomplishment. Human being preferably should be led by goals they accept as justifiable, worthy, and fair to all
concerned. This led us to human relations. It has been proven many times in the past that application of good
human relations “pays off” through cooperation and coordination leading towards greater accomplishment.

MANAGEMENT STRUCTURES

• The primary objective of management structure is to facilitate the coordination and control over the activities of the
company. Now two companies are identical. Thus, each company should be studied in terms of its purpose, size and the
nature of its business. in any sizable organization, there should be a 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. The manager must rely on other persons to be responsible for designated phases of the work.

2. No person possesses the skill necessary to guide personally the highly specialized activities in a modern construction
business. an expert on every line of activities must be responsible of such department. An architect assumed the
responsibility of planning works, Engineer for civil works, electrical work etc.

Top management should segregate these highly specialized activities and get someone with the knowledge and skill to
coordinate and be responsible for them. The principles of delegation of authority must extend all the way through the
company from the president and general manager to the supervisors, foreman, down to the utility workers.

• The line of responsibility must be fixed. Everyone in the company should know to whom they are responsible. Line
responsibility which are fringy or not distinct, will only lead to grumping and misunderstanding throughout the personnel
of the organization. For instances, the foreman will order a certain work to be performed in one way and another
supervisor will order the other way or sometimes stop the operations. This will result to confusion and dissatisfaction of
the workers and the foreman. The result is inefficiency of the work. On the other hand, a supervisor who cannot be sure of
the bounds of his responsibility lives in fear of the possibility that he was either meddling with someone else business or
neglecting a responsibility of which he is not aware of.

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. The line authority must be kept clear at all times in
order to facilitate the ready flow of communications and control.

MANAGEMENT CONTROL

• Control as a verb is defined by Webster’s new college dictionary as to “check or regulate... to keep within limits.” Yet,
managerial control carries with it a much broader interpretation to apply: not only to check nor command, but also the
whip. Not only to regulate, but also to stimulate.

• Control also includes activities that require restrictive or corrective action. For instances, matters like excessive labor
cost, undue equipment failure or disproportionate fuel and maintenance costs and the like are points that requires
management action and will be accomplished only if management is aware that the condition exist. Control however, only
lead up to specific management action specifying the necessity for action and variation from routine.

• The success or failure of any enterprise depends greatly upon the manager. To him, the most effective tool for success is
management or executive control. This involves setting overall objective or measurements to serve as a yardstick for
allocating resources and for evaluating performance.

• To have effective control, the manager must know by heart the reasons why his business or enterprise exists. He must
have a clear perception of the needs of the business. Thus, a manager must be a good planner a good organizer. A long
range planning is the creative force for executive control. It is an ability to set the mark and anticipate the problems that
block the way to planned results.

• The Manager should be a good organizer. The organization serves as the framework for delegating authority and fixing
responsibility from a higher to a lower executive level. Thus, in developing his organization, the manager should stress on
getting the right men for the right job. he must concentrate on how to get the jobs done and on how to prevent abuse and
waste of resources.

Effective Communication System

• An effective communication system is an important element of executive control. Under this system, adequate and
reliable data are collected and disseminated to the proper persons and units at the right time.
• To the manager, information has four purposes to serve.
1. It must answer the questions 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?

THE MANAGER
• The manger as executive is the most difficult and with the highest degree of responsibility. The nature of his job is
varied from the simplest to the most complicated one. Being the bridge between the board of directors and stockholders or
between top management and the rest of the agency personnel or between the agency itself and the general public, he is
always blamed for mismanagement, and yet, he is oftentimes not praised for his success. But his job is always in his mind
no matter where he is.

• Managers who are not prepared for the difficult task of management, break down earlier than is expected, not only
because
of pressure of work but also because of mental torture caused by problems they met a have to solve.

Quality of an Effective Manager

• An effective manager must have the following qualities:
1. He studies, analyzes and dissects his job.
2. He knows how to delegate the administrative details of his job.
3. He is will to delegate to and share with his subordinates the
4. credit of a job well done.
5. He trains and develops his men to prepare them to assume
6. delegated work.
7. He knows how to control and plan his time.
8. He institutes controls for effective performance.

EXECUTIVE FUNCTIONS
• Managers do not do the actual work of an
organization. His specific functions are:
1. To Plan
2. To Organize
3. To Direct
4. To Control

Planning.
Is the job of making things happen that would otherwise not occur. It is an intellectual process, the conscious
determination and direction of action. Planning is economic and essential control necessary because of uncertainty and
charge.
• Plans may be classified as:
1. Objective of enterprise
2. Policies
3. Procedures
4. Budget and
5. Programs

Organizing.
• A good organizational structure does not guarantee good performance, but poor one makes good performance
impossible, either the caliber of the individual managers notwithstanding. Improving the organization will always improve
performance. In short, a good organization structure is necessary though not a sufficient condition for good performance.

Directing.
• Directing is guiding and overseeing subordinates. One can plan, organize, and staff, but until subordinates are taught to
do and told to get on with the job, nothing gets done.
• In directing, two processes enter the picture; leadership and coordination. Leadership and coordination are intimately
bound together. Without effective leadership, coordination cannot be achieved.

Leadership
• has been defined as; the process by which an executive imaginatively directs, guides or influences the work of others in
choosing and attaining particular end. Leadership is more that excellence in administrative performance.
Coordination
• is the process whereby an executive develops an orderly patter of group effort among the subordinates, and secures unity
of action in the pursuit of common purpose.
• How can Executives Coordinate Efforts in their Organization?
1. Clarifying authority and responsibility
2. Careful checking and observation
3. Utilizing leadership skills

Control.
• Control has been 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.
• Control calls for the evaluation of results, comparison of those with established standards, and the taking of measures to
correct discrepancies that appear.
• The span of control refers to still another principle of organization. The number of persons reporting directly to one
executive should be limited because, the larger the number, the more difficult it is to supervise and coordinate them
effectively.
• The number that can be supervised effectively depends on such factors as the nature of the delegated responsibilities.
The abilities of the subordinates and the assistance available to him by a staff. Common practices are 4 to 8 for the top
levels and 8 to 15 for the bottom levels.

Policies and Procedures

In planning, the critical task is the formulation of
policies.
• Policies are general statements, which guide or channel the thinking and action of members of an organization.
• Procedures are reflection of policy. It involves the selection of a course of action and applied to future activities.
Procedures also detailed the manner in which a certain activity must be accomplished.

EXECUTIVE LEADERSHIP
• Executive leadership is the bridge between objective and result. Human progress is the crowning glory of success.
Success is the result of good management. And management is the effective, efficient and economical utilization of the
resources of man, money, materials, machines, methods, and memoranda.

• The responsibility for management is vested primarily on the manager. He is the fellow who gets things done through
the
efforts of others. He is the fellow at the top of the organizational pyramid. He is the leader of the organization, and a good
leader usually makes a good manager.

• As a leader, the manager should be an exemplar of good personal appearance, pleasant mannerisms, friendliness,
cheerfulness and good health so that he can command respect among his subordinates. He must be a paragon of honesty,
intelligence, enthusiasm, aggressiveness, loyalty, vision, initiative, perseverance, and decisiveness so as to establish
employee’s confidence in him.

• He should possess adaptability, understanding, patience and self-control, so that he will be able to see the two sides of
any problem brought to him and thus, exercising fairness to all. He must have a good judgement and leadership ability. In
short, the manager must not be a boss but a leader.

• Leadership is the ability to motivate subordinates and other people toward the achievement of organizational objectives.
The ability to influence, persuade and motivate followers is based largely upon the perceived power of the leader.
• A leader, who desires to serve, leads by example. He must possess at least a certain degree of imagination and vison. He
must be able to think ahead to visualize and to plan beyond the immediate present.

• A leader must have a goal, which is practical and right. With such qualities, he will certainly command the respect of
others and be a true leader, but the best training in management is actual management.

New Concept of Leadership

• To achieve objective, a leader must use the autocratic style of leadership when he is the expert or when there is an
emergency situation where quick and decisive actions appear to be necessary. However, when each of his people is
capable of functioning independently, he must use the democratic or participatory kind of leadership.

• The new concept of leadership today is a matter of service, not control. Ideal leadership is changing fast where the age of
order from above. Obedience below has come to an end. People resist orders and dictates what they believe is just and fair
unto them. The ideal leadership now is to aid communication and create a sense of unity, enthusiasm, and cooperation
among the members of a team.

• Based from theories and researches, there is certainly no best leader style or theory of leadership. The choice of the
leadership style to employ must take into account the company’s objectives, the company policies and the organizational
climate. Definitely, the best leadership style to use is the one that consider the environment existing in the organization.

Example of an Ideal Leadership

• Historical record shows that the Iroquois league, a confederation of five indigenous nations in what is now the United
States, adopted a constitution known as Great Law of Peace, which spelled out the qualities it required of leaders. The
chief of the league of five nations shall be the mentor of the people at all time.

• The thickness of their skin shall be seven layers. Meaning, they shall be proof against anger. Their hearts shall be full of
peace and goodwill. They shall carry out their duty with endless patience. Their firmness shall be tempered with
tenderness for their people. Neither anger and actions shall be marked by calm deliberation.

• According to one historian, when the Native Americans met a group, it was immediately clear who was the leader.
Why? It was certainly not because he was the one putting on the biggest and strongest voice. In fact. The chief was the
most unassuming and modest in manner.

• One modern leader the former Swedish Prime Minister Ingvar Carlson, even after he became prime minister, he
continued his habit of riding a bus to work. No matter how tired he might be, he refused to ride taxis or his official cars.
Whenever he entertained guests, Mr. Carlson would contact first the accounting department in advance to obtain
authorization for expenditures. One of Mr. Carlson’s guiding principles is that; “a political leader should never ask others
to do what he himself was unable to do.” Like Mr. Carlson, leader should reflect those who are most deeply committed to
the principles they stand for.

• Commitment implies sincerity and deep sense of responsibility, which enables us to tap our courage, wisdom and
energy. It is most unfair to expect others to work for goals that you as a leader are not making absolute effort to realize.

• To be strict with yourself, but gentle with others, is the spirit of a true leader, but part of this strictness is to keep striving
to grow and improve. Good leader focuses on contribution. He looks forward to attain the goal. He asks what can I
contribute that will significantly push the performance of the organization I served? His stress is on responsibility.

• To ask what can I contribute is to look for the unused potential in the job. Leaders who do not ask themselves of these
questions. Is not only like to aim too low, but likely to aim at the wrong
things.
• Generally speaking, there are two approaches to being a leader. Whether in politics, or within a company or
organization, one is to make the people wise, and the other is to keep them ignorant. The difference is the difference
between leadership and dictatorship.

DELEGATION OF AUTHORITY

• Delegation of authority is the key to effective management. In order to have control, the manager must have authority.
Authority is the power of an administrator to delegate functions to the next ranking executive, who in turn transmit it to
the
employees who are charged with actual operations.

• Authority however, should have a definite limitation to avoid confusion. The authority vested upon an executive should
preferably be in writing. It should be interpreted clearly to avoid misunderstanding between the boss and the subordinates.

• When a work is given, it must be within the paths of authority. But before giving an order, it should be determined first
if it is necessary, properly interpreted, and whether the proper authority is behind it.

• Delegation of a task to a subordinate is a manifestation of faith and confidence towards the ability of a subordinate. It
gives subordinate an added responsibility and authority, which will be his tools for growth and improvement. However,
subordinates must be trained and prepared for the job before the additional assignment is given. Otherwise, he may refuse
a delegated work if he believes that he is not prepared for the new task.

• Justifiable praise and commendation should be given the deputy for a work well done. Recognition is a basic human
desire
and is incentive for further achievement. This is one of the means for executive development and or building morale.

RESPONSIBILITY AND AUTHORITY DEFINED

• One famous professor on administration defines responsibility as “Hell” without authority. There are people who
constantly seek for authority, but evade responsibility must go together. But authority cannot be delegated completely. It
can only be shared.

• The president may delegate any or part of his authority because he must share if he expects to get the necessary counsel
of experienced or specialist’s workers in the company. On the other hand, advises which are feed by persons who do not
share in the responsibility is of questionable value.

• Yet, even with the aid of responsible consultants, there is always that element of risk in decisions. The true experts will
be the first to admit the possibility of error in his recommendations. Who will assume the risk? And who will make the
decisions? Probably the best answer is that; decisions should result from the pooling of judgement of those who share in
the responsibility and authority under the situation in question. The president or manager is still held responsible for the
action and liabilities of the company, including the cause of strikes due to labor disputes.

PERSONNEL COORDINATION
• The company organization is also dependent upon the special abilities and skills of personnel to perform the work. This
is true particularly in the establishment of leader, supervisors and foremen. Two factors are significant.
1. The need for close supervisors as judged by the skill of the workers and the difficulty of the operations.
2. The availability of experienced and trust worthy personnel capable of acting in supervisory capacity.
• The shortage of people who are capable of leadership and supervision of other is one of the biggest difficulties
encountered by companies, and this may be due to:
1. Lack of incentive in the supervisory positions.
2. Inadequate or ineffective recruitment of those possessing potential leadership ability.
3. Insufficient training of present and potential supervisory personnel.

• Virtually, project construction brings together people with diverse knowledge and skills. Most of the workers associate
with the project for less than its work duration. Some go from one project to another as their services is needed while
others are on loan either on a full time or part time basis from their regular job. this is usually the case when special
project exists within the framework of a more traditional organizations.

• People with special knowledge and abilities are selected to work on special project. Some workers on the other hand, are
not so eager to join a project because it may mean working for two bosses, disruption of friendship and daily routine and
risking the possibility of being replaced on the project job.

• Aside from these, there is a fear of being connected with unsuccessful project which might affect adversely their career
advancement on several instances, when a project is phased out and the project team disbanded, team members tend to
drift away from the organization for lack of new project and the difficulty is returning back to the former jobs.

• Some workers want to associate with more dynamic environments’. They like challenges of working under pressure and
solving new problems. To them, project offers an opportunity to meet new people and increasing future opportunities
especially if the project is a successful one. And being connected with the project is a successful one.

SCIENTIFIC MANAGEMENT
• The root of management science extends to the work of Frederick W. Taylor, who propounded the machine model or
scientific or task management theory with the following peculiarities:
1. Division of labor and specialization
2. Unity of command and centralization of decision making
3. One-way authority
4. Narrow span of control

• The origin of management science, have started from the work of Frederick W. Taylor, an Engineer who was accredited
the title of father of scientific management. Some of those early contributors to scientific management principles were
graduates in engineering schools but many were practitioners who make industry a working knowledge of engineering
principles. Associated with Taylor in those early years were, Carl G. Barth, Henry L Gantt, Stanford E. Thomson and
many others.

• Barth introduce to the world the use of research mathematics, which he merged with his knowledge of machine tools.
Gantt contributed to the recognition of worker psychology, the development of bonus plan, and the charts used in
production scheduling. Engineering thus come to be closely associated with the management of various enterprises. Out
of this, industrial Engineering was born.

• Today, it is a descriptive of the work of functional staff responsible for activities such as:
1. Incentive standards
2. Methods analysis
3. Quality control
 4. Production control
5. Material handling

• The obvious strength of management science is its objective, quantitative treatment of management problems. The
treatment is characterized by:
1. A statement of the problem in a mathematical form.
2. Reliance on measurable quantities such as costs and income
3. Use of computers
4. Dedication to rational decision making

• Business capitals have long accepted the benefits of engineering expertise in connection with construction and
production operations. They have started to call engineering to supply the same scientific approach to problems in:
• Organization
• Financing
• Office and field operations
• Inventory and control and in fact almost all phases of the business

• History has proven that engineers were effective executives. This is due to their inherent analytical mind, creativeness,
conceptual, and mathematical perceptions as their jumping board in rendering effective decisions. By nature, Engineers
are not talker, just doers. As effective executive, engineers do not make many decisions because a decision on principle
does not as a rule take longer than a decision on symptoms and expediency.

• As an effective executive, Engineer do not need to make many decisions because he solves generic situations through a
rule an policy. He can handle most events as cases under the rule. This is adaptation.

• Engineers as executive are not paid for doing things they like to do. They are paid for getting the right things done and
most of all in their specific task, that, is, the making of right decisions.

• To be effective is the job of the executive. He is first of all expected to get the right things done. And this is simply that
he is expected to be effective.

• To be effective executive, engineers had five

habits in mind.
1. They know where their time goes. They work systematically at managing the little of their time.
2. They focus on outward contribution. They gear their efforts to results rather than to work.
3. They build on strengths. They do not build on weakness. They do not start out with the things they cannot do.
4. They concentrate on a few major areas where superior performance will produce outstanding results. They force
themselves to set priorities. They have no choice but to do first thing first and second things not at all.
5. Engineers finally make effective decisions. They know that this is above all a matter of system of the right steps
in the right sequence.

• Over the many years since scientific management was introduced, specialization has certainly raised efficiency and
productivity, although in some other ways it has also created problems. However, in recent years, it has been proven that
better technology alone cannot produce all the needed solutions. More reliance must be placed on people.

Work Simplifications
• Rank and file employees are frequently called upon to contribute. The term simplification is often used to designate the
cooperative project. Workers acceptance of methods improvement activities is essential to any program. If their
enthusiastic participation can be obtained, results and savings will be felt.
• Resented the persons who spend eight hours or more a day on a job is perhaps the one best informed about and most
interested in the job and how it is performed. Frequently, he can suggest changes that would elude even the trained
method person. The more people in the organization thinking about new methods and techniques, is the better.

HUMANISTIC MANAGEMENT
• In this, the management philosophy adopted by Konosuke Matsushita, the founder of Panasonic Corporation of Japan
was presented to know the secret of his business success.
• Mr. Matsushita was asked; what is the key, to the success of your management? Matsushita answered, there is no
magic phrase that will answer your question, our management is anchored on the following steps:
1. We have a good staff.
2. Our policies were clear.
3. We upheld an ideal to be striven for.
4. Our chosen field of business was appropriate at the time.
5. We did not allow factions to form within our company.
6. We regarded the company as a public institution.
7. We followed a policy of open management.
8. We worked towards a system of management by all employees.

• The first and the most important requirement for a good management according to Matsushita, is to clarify the
management philosophy, goals, and ideals of the company. The manager of the company must be clear in his own mind
about what the purpose of his company is, what its ideals are, how he intends to conduct business and what concrete goals
he should establish for it in the ensuring years.

• Some business development is dependent in having such a well thought out management plan for without such a plan
one cannot use personnel, technology and capital to their full potential.

• Humanistic management is universally applicable. Employees who are given definite goals will clearly understand what
they should concentrate their talents on. they know what is expected and the standards by which they will be measured.

• Nothing is more frustrating for a man not to have his efforts properly evaluated. The way to motivate employees to work
hard is to present them with a definite goal and indicate precisely where their efforts should be directed.

• According to Matsushita, to have a clear management philosophy is not enough. God management requires something
more a vision or ideal of what the company is and should be. In addition to a short-term view of the company, it is
important for good manager to have well defined long-range goals for the company; what should it be like in the distant
future? What
contributions should it make to society? What is its ultimate role? In other words, the manager must have a vision of what
the company should be 100 or even 200 years hence.

• When an enterprise has ideals which command respect, and is acceptable by all, each employee tries to improve himself
and bring his talents into full play. To Matsushita, there are three management philosophies, which are indispensable
factors in the success of enterprise management, namely:
1. A goal
2. An ideal
3. A vison

• If these ideas are perverted to serve selfish ends, oppose justice and truth, and destroy the peace and prosperity of
society, the company will quickly be faced with ruin and its managers chastised.
• The next key to success is to think of an enterprise as a public institution. Even though they be private enterprises in the
formal legal sense, nonetheless all of them should be considered to be essentially public since the objective for any
enterprise is the contribution it makes to improve the life of the community.
• The third key to success is open management. A system of open management does not give the manager any
opportunities to do something dishonest with impurity, for he cannot hide his deeds. Therefore, it serves as a self- control
mechanism for managers who are after all, still humans.
• Any manager can do something dishonest if he has in mid to do so. Whether done unconsciously or deliberately, the
result is the same, and the employees will never be able to forgive or respect him. Confidence between him and his
employees will be lost and they will no longer follow his orders, as they should
if the company is to run efficiently.

• A dedicate and morally upright attitude of a manager sends a persuasive message to his employees. They too must be
careful to act properly at all times. Open management not only encourages employees to work harder but also makes the
manager and his employees to work harder but also makes the manager and his employees realize that dishonest acts are
absolutely inexcusable.

• The fourth key to success is to be collective wisdom of all its employees. There are distinguished managers who always
think things out for and by themselves, decide by themselves, and act by themselves. They may be dramatically successful
for a while, but in the long-term view, such dictatorial managers find difficulty in being truly successful in management.

• A dictatorial manager simply does not feel the need for talented employees with decision making skills, and so good
human resources do not gather about him. He will not take time to develop the talents of any employee who do happen to
be under him. He wants people to simply follow his orders nothing more.

Five Key Points to Success in Enterprise Management

1. To have a clear management philosophy, clear goals, and definite ideal.
2. To manage a company with the full realization that every enterprise is a public enterprise.
3. To practice open management
4. To collect the wisdom of the many
5. To try your best to acquire an unflappable and supremely adaptable mind to enable you to see things as they
actually
1. are without clinging to preconceived notions.