Organization and Management

BA 236
Module 1 – Organization and Its Characteristics
Unit 1- Activity 1

Name : Rofa Mae Medina Course, Yr. n& Section: BSIS 1B

Define organization and its basic characteristics

Management's backbone is organization, because without an efficient organization, no

management can fulfill its functions smoothly. This organization serves as a second step in the

management process, attempting to combine multiple activities in a corporation to achieve pre-

determined goals. It is the structural framework of roles and responsibilities that personnel must

fulfill in order to achieve corporate objectives (Eminent, T.).

“Organisation is the process so combining the work which individuals or groups have to perform

with the facilities necessary for its execution, that the duties so performed provide the best

channels for the efficient, systematic, positive and coordinated application of the available

effort”. Organization helps in efficient utilization of resources by dividing the duties of various

persons (Oliver,Sheldon).

In other words, organization is simply a group of people working together to achieve a common

purpose. It is a collection of people that gather or converge in one area and work together to

achieve a common purpose.

Specialization and division of work. The entire philosophy of organization is centered on

the concepts of specialization and division of work. The division of work is assigning

responsibility for each organizational component to a specific individual or group thereof.

It becomes specialization when the responsibility for a specific task lies with a designated

expert in that field. The efforts of the operatives are coordinated to allow the process at

hand to function correctly. Certain operatives occupy positions of management at various

points in the process to ensure coordination.

Orientation towards goals. Every organization has its own purposes and objectives.

Organizing is the function employed to achieve the overall goals of the organization.

Organization harmonizes the individual goals of the employees with overall objectives of

the firm.

Composition of individuals and groups. Individual forms a group and the groups form an

organization. Thus, organization is the composition of individual and groups. Individuals

are grouped into departments and their work is coordinated and directed towards

organizational goals.

Continuity. An organization is a group of people with a defined relationship in which

they work together to achieve the goals of that organization. This relationship does not

come to end after completing each task. Organization is a never ending process.

Flexibility. The organizing process should be flexible so that any change can be

incorporated easily. It ensures the ability to adapt and adjust the activities in response to

the change taking place in the external environment.

Managers must first create a plan, then arrange their resources and distribute responsibilities to

employees in accordance with the plan, then guide people to efficiently carry out the plan, and

finally evaluate the plan's efficiency as it is being carried out and make any required adjustments.

This leads us to the first function of management the Planning.

Planning

Managers create organizational goals and formulate a plan of action to attain them during the

planning stage. During the planning phase, management makes strategic decisions to set the

organization's direction. Managers might discuss many ideas to attain the goal before deciding

on the best course of action. Managers often conduct an in-depth review of the organization's

existing state of affairs while planning, taking into account its vision and goal and assessing what

resources are available to accomplish organizational objectives.

Managers typically analyze internal and external elements that may effect plan implementation,

including as economic growth, customers, and competitors, when planning. They also develop a

realistic schedule for reaching the goal or goals, taking into account the organization's existing

finances, staff, and resources. Managers may need to take further measures before starting with

the strategy, such as obtaining approval from other departments, executives, or their board of

directors.
There are several approaches to planning:

Strategic planning: This type of planning is often carried out by an organization‟s top

management and usually creates goals for the entire organization. It analyzes threats to

the organization, evaluates the organization‟s strengths and weaknesses and creates a plan

of how the organization can best compete in its environment. Strategic planning usually

has a long timeframe of three years or more.

Tactical planning: Tactical planning is the shorter-term planning of an objective that

will take a year or less to achieve. It is usually carried out by an organization‟s middle

management. Tactical planning is usually aimed at a specific area or department of the

organization such as its facilities, production, finance, marketing or personnel.

Operational planning: Operational planning is the process of using tactical planning to

achieve strategic planning and goals. Operational planning creates a timeframe for

putting a portion of the strategic goal into practice operationally.

Example of Planning Company‟s strategic plan, it shows the plans for the costumers approach,

financial and operational.

Source:1.AcmeCorporation.onepageplan.06052015-12.pdf(onstrategyhq.com)
Example of planning

The X phone company is planning out on how they will increase the company‟s sales in less than

a year. They think of a plan and set a goal to achieve. They will be producing different approach

that was tested for a month to test the efficiency of the plan.

Organizing

The goal of organizing is to distribute resources and assign responsibilities to individuals in order

to meet the goals specified during the planning stage. Managers may need to collaborate with

other organizational divisions, such as finance and human resources, to organize the budget and

workforce. Managers aim to create a productive work atmosphere during the organizing stage.

Managers generally consider employees' motivation and aptitude when assigning responsibilities

and activities that best match their ability.

when allocating team member roles. Managers should ensure that employees are allotted an

adequate quantity of work and an appropriate amount of time to finish their work to help them

feel engaged and productive.

These functions work together in the creation, execution and realization of organizational goals.

The four functions of management can be considered a process where each function builds on

the previous function. To be successful, management needs to follow the four functions of

management in the proper order.

The organizing function is shown in the following examples:

If the company's brand manager works part-time and the goal of the organization is to

launch a new advertising campaign for a product, the brand manager may not take on the

huge duty of overseeing the campaign in addition to their usual duties. The company may

hire an advertising agency to assist with product promotion.

If a company's sales in a particular geographic area have increased rapidly, management

may decide to divide the territory in half, dividing the present team operating in the

territory and hiring new staff members as needed.

number of high-tech companies have continually come into the world and found their

niche markets. The below org chart will tell you what the organizational structure of a

technology startup is. Picture below will show you what is a an organizing looks like and

on how people will be assign to different areas of the company and to do a specific jon

assigned to them to be more effective.

Leading

Leading entails encouraging and influencing employees' behavior in order to achieve

organizational goals. Rather than tasks, leadership focuses on managing people, such as

individual employees, teams, and organizations. Though managers may give orders and control

their teams, strong leaders frequently connect with their employees by using interpersonal skills

to encourage, inspire, and motivate team members to perform to the best of their ability.
Managers can foster a positive working environment by identifying moments when employees

need encouragement or direction and using positive reinforcement to give praise when

employees have done their jobs well.

Managers usually incorporate different leadership styles and change their management style to

adapt to different situations. Examples of situational leadership styles include:

Directing: The manager leads by deciding with little input from the employee. This is an

effective leadership style for new employees who need a lot of initial direction and

training.

Coaching: The manager is more receptive to input from employees. They may pitch their

ideas to employees to work cooperatively and build trust with team members. This style

of leadership is effective for individuals who need managerial support to further develop

their skills.

Supporting: The manager decides with team members but focuses more on building

relationships within the team. This style of leadership is effective for employees who

have fully developed skills but are sometimes inconsistent in their performance.

Delegating: The leader provides a minimum of guidance to employees and is more

concerned with the vision of the project than day-to-day operations. This style of

leadership is effective with employees able to work and perform tasks on their own with

little guidance. The leader can focus more on high-level goals than on tasks.
Example of leading

Managers or the head of the company are the example of people who leads. Managers are the

one who assign and guide the employees to do their best in work. They are also the one

responsible on huge decision making of the business.

“Be a leader not a Boss”

Controlling

Controlling is the process of evaluating plan execution and making changes to ensure that the

organizational goal is met. Managers execute activities such as educating staff as needed and

monitoring deadlines throughout the controlling stage. Managers keep an eye on their staff and

assess the quality of their job. They can conduct performance reviews and provide feedback to

employees, including positive comments on what they are doing well as well as suggestions for

improvement. They may also provide incentive pay raises to high-performing staff.
Example of Controlling:

Budget adjustments

Managers monitor the budget and resources to ensure that they are using the resources

available and not going over budget. For example, a manager may notice that she is going

over budget on a project but be unsure what is causing the project to go over budget. In

this situation, she will need to identify whether there is a general problem with

overspending or whether one department, in particular, is going over budget. Once the

manager identifies the source of the overspending, she must take action to curb overall

spending and make cuts as necessary to balance the budget.

Staffing adjustments

Managers may need to make challenging decisions such as whether to reassign an

employee who produces a low-quality work to a different task or dismiss them from a

project. They may also need to add additional team members to meet an organizational

goal if they conclude that the team is understaffed. If this is the case, they may also need

to consult with organization executives to secure more funding.

Similarly to how different organs in the human body perform and regulate distinct functions,

different parts of a business operate and govern multiple functions. One motivation for dividing

business operations into functional areas is to allow each to operate within its area of

competence, so increasing efficiency and effectiveness across the organization. The following

are the primary functional areas of a business:

Management

Operations

Marketing

Accounting

Finance

Management

The primary role of managers in business is to supervise other people‟s performance. Most

management activities fall into the following categories:

 Planning: Managers plan by setting long-term goals for the business, as well short-term

strategies needed to execute against those goals.

 Organizing: Managers are responsible for organizing the operations of a business in the

most efficient way, enabling the business to use its resources effectively.
  Controlling: A large percentage of a manager‟s time is spent controlling the activities

within the business to ensure that it‟s on track to achieve its goals. When people or

processes stray from the path, managers are often the first ones to notice and take

corrective action.

 Leading: Managers serve as leaders for the organization, in practical as well as symbolic

ways. The manager may lead work teams or groups through a new process or the

development of a new product. The manager may also be seen as the leader of the

organization when it interacts with the community, customers, and suppliers.

Human resource management:

Human resource development or personnel management or manpower management is concerned

with obtaining and maintaining of a satisfactory and satisfied work force i.e., employees. It is a

specialized branch of management concerned with „man management‟.

Production management refers to planning, organization, direction, coordination and control of

the production function in such a way that desired goods and services could be produced at the

right time, in right quantity, and at the right cost. Some authors treat material, purchase and

inventory management as part of production management. Production management involves the

following functions:

 Product planning and development,

 Plant location, layout and maintenance,

 Production systems and machines,

 Management of purchase and storage of materials,

 Ensuring effective production control.

Office management:

Office management can be defined as, “the organization of an office in order to achieve a

specified purpose and to make the best use of the personnel by using the most appropriate

machines and equipment, the best possible methods of work and by providing the most suitable

environment.”
Operations

Operation is where inputs (factors of production) are converted to outputs (goods and services).

Operation is like the heart of a business, pumping out goods and services in a quantity and of a

quality that meets the needs of the customers. The operations manager is responsible for

overseeing the day-to-day business operations, which can encompass everything from ordering

raw materials to scheduling workers to produce tangible goods.

Marketing

Marketing consists of all that a company does to identify customers‟ needs and design products

and services that meet those needs. The marketing function also includes promoting goods and

services, determining how the goods and services will be delivered, and developing a pricing

strategy to capture market share while remaining competitive. In day‟s technology-driven

business environment, marketing is also responsible for building and overseeing a

company‟s Internet presence (e.g., the company Web site, blogs, social media campaigns, etc.).

Today, social media marketing is one of the fastest growing sectors within the marketing

function.
Accounting

Accountants provide managers with information needed to make decisions about the allocation

of company resources. This area is ultimately responsible for accurately representing the

financial transactions of a business to internal and external parties, government agencies, and

owners/investors. Financial Accountants are primarily responsible for the preparation of

financial statements to help entities both inside and outside the organization assess the financial

strength of the company. Managerial accountants provide information regarding costs, budgets,

asset allocation, and performance appraisal for internal use by management for the purpose of

decision-making.

Finance

Although related to accounting, the finance function involves planning for, obtaining, and

managing a company‟s funds. Finance managers plan for both short- and long-term financial

capital needs and analyze the impact that borrowing will have on the financial well-being of the

business. A company‟s finance department answers questions about how funds should be raised

(loans vs. stocks), the long-term cost of borrowing business.

Based on my research there are a lot of functional area in a business click this link for more

example: Untitled-Infographic1.png (1200×5663) (foundersguide.com)

 Organisation: Definitions, Characteristics, Function, Elements, Principles

(economicsdiscussion.net)

 Organizing (management) - Wikipedia

 What Are the 4 Basic Functions of Management? | Indeed.com

 Functional Areas of Business | Introduction to Business [Deprecated]

(lumenlearning.com)

 5 Main Functional Areas of Management | Business Management

(businessmanagementideas.com)