MODULE WEEK NO.

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Gingoog City Colleges, Inc.
Brgy. 24-A Paz Village, Gingoog City 9014
(088) 861 1432 Ext. 7385

Office Administration Department

OA CORE 2: Administrative Office Procedures and Management
1st Semester of A.Y. 2020-2021

Introduction

Since office management is similar to general and administrative management, it performs the same
functions as are performed by the management. In this unit, we are expected to improve our knowledge of
the general principles of management and how these principles are applied in the specific function of the
modern office.

Rationale
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Organizing is one of the fundamental functions of management. After having thought out the objectives or
goals of an enterprise and the courses of action to be followed, it is necessary to give practical shape to the
work to be performed to meet those objectives. In an organization, work is divided and a plan is structurally
prepared.

Intended Learning Outcomes

A. Students will be able to explain the steps for setting and meeting goals and priorities.
B. Student will be able to describe strategies and tools for organizing your work area.
C. Students will be able to describe the benefits of organizations and identify the common types of
workplace teams.
Activity

Your organization is organizing a relief operation to distribute food packs to the nearby community
which is under the “localized lockdown” directive of your LGU. Perform the following steps in
organizing this relief operation and document the results:

1. Briefly, propose a mission statement. This statement must contain the organization’s objective/s
in organizing the event.
2. Determine the major works which needed to be done. Divide these major works into smaller
activities.
3. Group these activities together into “departments”. Appropriately name these departments.
4. Assign these activities to job positions. Appropriately name these positions.

Discussion
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Module 2- Office Organization and Administration

2.1 Definition of Organization

Organizing is one of the fundamental functions of management. After having thought out the objectives or
goals of an enterprise and the courses of action to be followed, it is necessary to give practical shape to the
work to be performed to meet those objectives. In an organization, work is divided and a plan is structurally
prepared.

The following are some of the most popular definitions of Organization:

1. Ralph C. Davis: Organization is a group of people who are cooperating under the direction of a
leader for the accomplishment of a common end.
2. Organization is the arrangement of functions deemed necessary for the attainment of the objective
and is an indication of the authority and the responsibility assigned to individual charged with the
execution of their respective functions.

2.2 Characteristics of an Organization

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On careful analysis of the above definitions, the following characteristics of an organization emerge:

1. It is a group of individual which may be small or large;

2. The group in the organization works under the direction of an executive leader;
3. It is a function of arrangement;
4. It consists of some directing authority which controls the collective efforts of the group;
5. It refers to a structure of duties and responsibilities;
6. It is established for the accomplishment of a common objective;
7. It is a continuous function and is preferred in varying degrees by all levels of management, from the
first line supervisors to the top executive of the enterprise.
8. It cannot be static for the simple reason that an organization which is effective today may not be
satisfactory tomorrow. It needs periodic changes and modifications according to current needs and
situations in terms of objective, jobs and personnel.

2.3 Importance of Organization

The need for organization arises when two or more people work together. A one-man business will have no
difficulty about coordinating the efforts of buying, selling and other management functions of a business.
However, when the business starts to grow, separate departments for buying, selling, accounting and
administration grow with it. With the growing complexities of a large scale organization, the need and
importance or organization grows substantially. The importance of organization can also be judged from the
fact that good organization is now regarded as the foundation of sound management.

2.4 Steps in Organizing the Management

Organizing refers to the grouping of activities necessary for the attainment of objectives. It also indicates
authority and the responsibility assigned to individuals charged with the execution of their respective
functions.

The following steps are involved in organizing the structure of an enterprise:

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1. Knowledge of objectives. While organizing, it is important to bear in mind the objective or target of
the organization or department. The objective must be determined, keeping in view the
environmental situation. They must be clear, precise and complete, and free from ambiguity or
confusion. Unless the manager or supervisor knows the objective, he may not be able to organize
properly and motivate people towards the attainment of the objective.
2. Division of work into activities. After laying down objectives, the manager must identify the total
work involved in achieving them. For instance, the total work involved in a manufacturing enterprise
may be divided into production, finance, personnel, marketing and such other activities.
3. Grouping the activities. The next step is to group the various activities into practical units based on
similarities and importance, and to indicate the person who would do the work. For instance,
purchasing, machining and assembling may be placed under manufacturing while recruiting, training,
job grading and compensation may be placed under personnel.
4. Defining and assigning activities to jobs. Jobs must be clearly defined and the activities related to
them must be clearly identified and assigned. This will help the management to fix the authority and
responsibility of the employees concerned.

2.5 Administration

There is a sharp difference of opinion among experts about the meaning and significance of the term
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“administration “, “management”, and “organization”. Some writers maintain that there is no difference
between these terms, while others are of the view that they are not synonymous and have different meanings.

Management versus Administration

The term administration is that function of an enterprise which relates to the overall determination of policies
and major objectives.

i. Administration is the function of determining the policies upon which the enterprise is to be
conducted, while the function of management is to carry out the policies laid down by the
administration group. -Leffingweel and Robinson
ii. Administration is largely determinative, whereas management is essentially executed. -Oliver
Sheldon
iii. Administration includes broad policy-making, while management is a part or element of
administration. -Prof. Walter

iv. The term “administration “is more often used in non-business enterprises or government
departments. The term management may be used for business and non-business enterprises.

2.6 Formal and Informal Organization

The task of the office manager in planning the organization becomes easier if he takes into consideration the
following general principles of organization:

i. Principles of objective. The objective of an enterprise should be clearly laid down. Within the
enterprise, there should be unity and uniformity in the policies and objectives of different
departments so that every part of the organization, including the office, are geared towards one
common end goal.
ii. Principle of inter-related function. Because organizations no longer have mutually exclusive
function but rather integrated functions, the functional area- for example, sales, production,
finance, marketing and personnel are interrelated.
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iii. Principle of definition. The duties, responsibilities, authority and relations of everyone in the
organizational structure should be clearly and completely defined, preferably in writing.
iv. Principle of work assignment. The work assignment for each individual in the organization
should be taken into consideration, including the special strength and talents of the individuals.
This means that an individual should be given an assignment commensurate with his or her
ability and interests.
v. Principles of ultimate responsibility. The responsibility of a higher authority for the acts of his
subordinate is absolute; if he delegates the responsibility to his workers to do a given job , and
the worker commits a mistake , the supervisor is the one accountable to his superiors. He cannot
escape responsibilities by saying that the mistake was committed by a particular worker.

Formal and Informal Organizations

A formal organization is one in which the position, responsibility, authority and accountability at each level
is clearly defined. A formal organization is bound by the rules, systems, procedures and methods as laid
down by the top management from time to time.

According to George R. Terry , there are four basic components of a formal organization:
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1. The work, which is divisionalised;

2. Persons- who are assigned to perform the divisionalised jobs;
3. The environment- under which the work is done; and
4. The relationships- among persons or work units.

A formal organization is systematically planned and is based on the principle of the delegation of authority
and the principle of responsibilities. It makes use of organization charts and attempts to maintain a balance
among the various types of work to be done, each being given the importance that its true value deserves.

The advantages of formal organizations include:

1. Avoidance of role conflict;
2. Avoidance of overlapping of authority and responsibility;
3. Advantages on specialization;
4. Defining and standardizing systems, rules, policies and procedures of the enterprise.

The limitations are:

1. It does not recognize informal organization;
2. It creates problems of communication;
3. It emphasizes structure rather than people.

An informal organization always exists together with a formal organization in every enterprise. In an
organization, people evolve informal groups among themselves which are bound together by common social,
technological work or other interests. Such groups make up an informal organization.

According to Davis “an informal organization is that network of personal and social relations which is not
established by formal organization.” It is an accepted fact that wherever people work together, social
relationships and groupings are bound to arise on account of their frequent contact with one another which
give rise to informal organizations.

The advantages of an informal organization are:

1. It provides a useful channel of communication;
2. It covers deficiencies of formal organizations;
3. It influences the formal organizations to work carefully;
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4. It brings about mutuality among group members who derive job satisfaction by an exchange of ideas
and views, etc.

Its limitations are:

1. It may tend to act on basis of mob psychology;
2. It may be a source of rumors or wastage of time;
3. It may tend to oppose change.

2.7 Types of Organization

1. Line Organization
2. Functional Organization
3. Line and Staff Organization
4. Committee Organization

Review Questions:
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1. Differentiate a formal from an informal organization.

2. Briefly explain the importance of properly organizing an enterprise.
3. Differentiate Responsibility from Authority.

Assessment

Research on the topic The Types of Organizations and do the following:

1. Discuss the types of organization listed on Part 2.7 of this material.
2. Map out each type of organization using an organizational chart.
3. Compare and contrast each type of organization.

Reflection

“Organizing is a journey, not a destination.” -Anonymous

Even if I got 100% organized today, tomorrow is a new day! Kind of like exercise, organization within the
business is something that needs to be done each day to bring positive results. You don’t need to have a
pristine office or a spotless shop…but it would help to take a few moments to scan items in and out or make a
couple updates in your inventory organization app throughout the day.

Resources and Additional Resources

 Units 1-6, Office Assistantship, http://bieap.gov.in/Pdf/OAPaperIIIYR2.pdf

Additional Resources:

 https://byjus.com/commerce/henri-fayol-14-principles-of-management/

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