LESSON 1

-is art of getting things done through people. -Mark Parker

Follett

Nature Of Management
➢
-management is not an end in itself. It is a means to
achieve certain goals.
➢
-all types of organizations, e. g., family, club,
university, government, army, cricket team, or
business, require management
➢
-the essence of management lies in the coordination
of individual efforts into a team.
➢
-management is done by people, through people,
and for people. It is a social process because it is
concerned with interpersonal relations.
➢
-management has to deal with human behavior
under dynamic conditions
➢
-management is a dynamic and on- going
process.
➢ -
management is an unseen or invisible force. it
cannot be seen but its presence can be felt
everywhere in the form of results.
➢
• Management As an Art
1. it is creative.
2. it involves the use of skill.
3. it involves the use of technical know-
how.
4. it is directed towards getting results.
 5. it is personalized.
• Management As a Science
1. systematic collection and processing
of information
2. outputs may change though the inputs
are the same.
3. principles of management are
universally accepted.
4. management is also a discipline
5. involving specialized training and an
ethical code arising out of its social
obligations.

Roles and Importance of Management

➢
-Each person may be working efficiently, but the
group as a whole cannot realize its objectives unless
there is mutual cooperation and coordination among
the members of the group.
 ➢
-Managers forecast the need for materials,
machinery, money, and manpower.
➢
-By reducing costs and improving efficiency,
managers enable an enterprise to be competent to
face competitors and earn by setting up and
expanding business enterprises, managers create
profits.
➢
-An enterprise must adapt itself to the changing
demands of the market and society.
➢
-By setting us and expanding business enterprises
managers create jobs for the people. People earn
their live hood by working in these organizations

M's of Management
• Manpower • Method
• Materials • Money • Machine
 LESSON 2

-As a process, management involves interdependent

activities or functions.

Major functions of management:

➢
-thinking ahead. In the business world, planning ifs
focused on profits, costs, efficiency, and customer
satisfaction. It consists of setting goals and
specifying ways to attain them.
➢
-the function that involves the allocation of productive
resources and setting up the structure of the
organization.
➢
-concerned with the evaluation, selection, and
development of employees to fit the needs of the
 organizational structure. It is placing the right man in
the right job.
➢
- motivating people to do their jobs towards the
attainment of the organizational goals. This function
requires the manager to possess good leadership in
terms of skills in human relations and
communications. Directing is also known as
influencing
➢
- process of measuring and correcting actual
performance against the standards established by
the organization.

Roles of A Manager
➢
• Figurehead -The manager performs
ceremonial activities, like attending the
wedding of his subordinates, public relations
with customers, and similar human relations.
 • Leader-He leads his subordinates through
proper motivation and techniques.
• Liaison-He does not only interact with his
subordinates and superiors, but also with
suppliers and other clients.
➢
• Entrepreneur – The manager improves the
methods of operations, or introduces new and
better ways of doing things in his department.
• Disturbance handler – He handles crises like
strikes, violations of contracts, and similar
management problems.
• Resource allocator – He allocates productive
resources like money, materials, machines,
and even time.
• Negotiator – He negotiates with suppliers and
other clients in the organization.
 ➢
• Monitor–The manager monitors the needed
information and;
• Disseminator – disseminates this to his
subordinates.
• Spokesperson – He gives information to the
group outside the organization.

Three Types of Managerial Skills:

➢ – refers to the knowledge of and the
ability to use the processes, practices, procedures,
techniques, and tools of a specialized field.
➢ – is the ability to understand the
interrelationship and interdependence of the various
parts of the whole organization.
➢ - refers to human relations.
It is the ability to work with people. As a manager, he
should know how to interact well with his
subordinates.
 LESSON 3

➢
-this style of management gives the manager full
authority to run a department or group and make all
the decisions.
➢
-is one of the most preferred types of management
because it allows for two- way communication
between managers and their subordinates.
➢
-The manager can empower his subordinates and
give them the freedom to carry out their tasks, as
they deem fit.
-‘unconventional‘ is the term that can best describe
laissez
 LESSON 4

- Great feat of humans achievements such as Egyptian

pyramids, the great wall of China, the Colosseum in Rome,
and the Taj Mahal in dia all bear testimony to skilled
management in ancient times (3000 B.C)
- Management thought became an organized body of
knowledge only around 19th Century.

Management Theories:
➢
• - Emphasizes on
improving the effeciency of work.
· Frederick W. Taylor
-he father of Scientific Management
- A mechanical engineer
• -are formal systems
with define rules.
· Max Weber - German sociologist
•
-Oriented towards the application of
management principles for the more
effective and efficient functioning of the
organization.
· Jules Henri Fayol- An engineer and manager
of a group of French mines
▪ 14 Principle of Management Under of A.M.T
1. Division of Work
2. Authority and Responsibility
3. Discipline
4. Unity of Command
5. Unity of Direction
6. Subordination of Individual Interest to Mutual
Interest
7. Remuneration
8. The Degree of Centralization
9. Scalar Chain
10. Order
11. Equity
 12. Stability of Tenure of Personnel
13. Initiative
14. Esprit de Corps
➢

-focuses on understanding human behavior, needs,

and interests.
-Managers should understand the human aspect of
workers and treat employees as important assets.
· Elton Mayo-A Harvard professor
➢
-were used to solve and analyze managerial
problems
-involves the analysis of data
➢
views organizations as sets of interrelated parts to
be managed as a whole with the purpose of
achieving a common goal.
➢
- an organizational theory that claims that there is
no best way to organize a corporation, to lead a
company, or to make decisions.
➢
• -It is the approach of
the management to achieve long-term
success by focusing on customer
satisfaction. The organization works
towards a steady improvement in the quality
at all stages of production.
• -achieve overall
growth and continuously adapt to a
changing market.
-helps your team stay relevant in
an ever-evolving business
environment.
•
-workplace is a place where people use
technology to do their jobs better and more
efficiently.
 LESSON 5

-sum of all the elements and forces present

- potential impact on is ability to achieve its objectives.
- combination of internal & external factors.

➢ External Environment
•
-is the organization's environment that may affect
the organization, usually in the long run.
A. Political Legal Element-is related to government
affairs and laws or regulations. It includes such as
form of government industry regulation, passage of
laws and politics.
B. Economic Element-is related to the use and allocation
of scarce resources in the. economy to create and
distribute wealth It includes factors: such as interest
rate ,price level inflation ,stock market ,fluctuations
 ,exchange rates, income business cycles and phase
of economic development.
C. Social Element - is related to societal s characteristics
it includes demographics and vales of people in
society.
D. Technological Element - is related to new tools, ideas
and approaches vied to produce goods and service
It includes new procedures and equipment.
E. Global Element - this encompasses factors: such as
global trade, cultural exchange, currency exchange
rates, traffs. It influences business operating across
borders and those affected by global supply chain.
F. Environmental Ecological Element - this refers to
natural environment including factors like climate
change, resource, scarcity, natural disasters,
pollution, soil deforestation, etc.
•
- Indicates the elements of external environment
that has direct and immediate impact on the
organization.
A. Customer Element - is related to individual and
entities who buy goods and services produced by
organization.
B. Supplier Element- is related to individual and entities
who provide goods and service needed by the
organization in the production of its outputs.
C. Competitor Element - is related to those whom the
organization monitors and responds to in the battle
for resources and markets.
D. Pressure Group Element - is related to special
interest groups which persist in influencing the
actions of organizations through their campaigns
and programs

➢ Internal Environment
-is the level of environment that is within the
organization. It includes organizational structure
culture and resources. Resources include production
technology and physical facilities.
•
-capital, knowledge, skill or other advantage that a
firm has can acquire over its competitors in meeting.
the needs. of its customers.
•
-is any resource or process that your business lacks,
our need to succeed
-limit your company's ability to reach its potenial.
•
-refers to favorable external tactors that could give
an organization competitive advantage.
•
-includes anything that con negatively affect your
business from the outside ,such as supply chain
problems shifts in market requirements, etc.
 LESSON 6

-refers to the process by which a country on region

improves its economic well-being and overall standard ot
living

-the large-set of inter-related production I consumption and

exchange activities that aid in determining how scare
resources are allocated in a country or for a period of time.

Key Aspects of Economic Development:

-involves sustained economic growth, where the total
values of goods and services: produced within a
country or region increase over time.

-one of the central goals of economic development

to reduce poverty by creating more job opportunities
and increasing income levels for significant portion
of the population.

-Developing countries often invest in building or

upgrading infrastructure.

-Economic development involves investing in

Education and healthcare to improve the skills and
health of the population.

-Shifting from agrarian-based economies to

industrial and science-based economies is a
common feature of economic development

-Ensuring that people have access to clean water,

food, shelter, healthcare is a fundamental aspect of
development.

-in technology play a crucial role in economic

development.
 -that promote fair competition and protect properly
rights are essential for economic development.

- Engaging in international trade can boost economic

Development

- aims to protect the environment while fostering

economic growth.

Stages Of Economic Development

In the 1960's American Economist W.W Rostow developed a
model of economic growth. He suggested that a country
goes through 5 stages as it economically develops.

Five Stages of Economic Development:

-the primarily agrarian with most of the population

engaged in subsistence farming
-certain conditions are put in place that can lead to
economic growth.

-rapid economic growth.

-Industrialization begins to take hold with shift from
agrarian to manufacturing-based economies.

-the economy continues to grow and liuing standard

rise

-widespread affluence and high living standard.

 LESSON 7

➢ According to Nature of Ownership

•
- owned and usually managed by one person.
-Simplest and oldest form of business
organization.
•
-association of two or more person who are co-
owners of business.
Types Of Partnership:
I. General Partnership
- Partners divided responsibility for
management and liability. Equal shares are
assumed.
II. Limited Partnership with limited liability
-Partners have limited liability
 III. Joint Venture
-acts like general partnership but clearly for
limited period of time.
•
-artificial being created by operation of law.
•
-duly registered association of person

➢ According to Primary Activities

•
- the primary product Is the service it renders in
exchange for a fee.
•
-is engaged in the purchase and sale of goods and
earns profit by adding a mark-up to the cost of
goods it's selling.
•
-transforming raw materials to finished goods that
are sold at a price.
Types - Of Manufacturing Business
➢
-combined of service and manufacturing business
➢
-combines the business in primary activities
 LESSON 8

-is a mental predisposition to do things in orderly way, to

think before acting and to act in the light of facts rather
than guesses.

Nature Of Planning:
➢ Goal oriented
➢ Looking ahead
➢ Intellectual process
➢ Involves choice and decision making
➢ Primary function
➢ Continuous process
➢ Pervasive
➢ Designed for efficiency
➢ Flexible
Principle Of Planning:
➢ Planning must be realistic
➢ Planning must be based on felt needs
➢ Planning must be flexible
➢ Planning must be democratic
➢ Planning must start with simple projects
➢ Planning must include social responsibility

Steps Of Planning Process

➢
-must have the following characteristics: Specific
and Measurable, involves important areas and
contribute most to organizational performance
challenging but Attainable. Resource-oriented, lime
bound, properly communicated to organizational
members including rewards associated with its
achievement.
➢
-are those external and internal factors in the
environment
➢
-can pursue their objectives, in various ways. There
are ALTERNATIVE COURSES for EVERY PLAN. These
ALTERNATIVE COURSES are analyzed and examined
and evaluated through the use of planning tools and
techniques.
• Forecasting -is a technique used by the
managers to assess the environment.
➢
-The selection of a course of action among
alternatives is also known as decision-making-is a
term given to the selection of a course among the
alternatives.
➢
-To support the decision, derivative plans have to be
formulated as support to the accomplishment of the
master plan. Derivative plans are the sub plans or
secondary plans which help in the achievement of
main plan.
➢

-The last two steps include managing the people

involved and providing resources necessary for
implementation. Information is used to monitor the
progress of implementation. In the process, the plan
is communicated to the organization
 LESSON 9

➢
-defines organization action steps, including activities
and resource allocations, in the long term.
➢
-is designed to execute a part of the overall
organizational strategy.
➢
-details how the overall organizational objectives are
to be achieved in the lower levels of the organization
and likewise.

Types of Plans Based on Frequency Use:

➢
-they usually focus on tasks that occur repeatedly in
an organization.
 ➢
- programs and projects are usually covered by
single-use plans.

Approaches to Planning:
➢
-when a manager plans in formally -objectives are
not written down and cascaded to the rest of the
organization.
➢
-objectives and plans are done by top management
with the help of planning specialists that are part of
a central planning department. -planning specialists
work directly with managers at all levels of the
organization in developing their respective objectives
and plans.
➢
- individuals in an organization pursue objectives
which are mutually set and agreed upon them and
 their respective managers in a determined time
period.

- is a technique used by managers for resource

allocation which consists of detailing the list of activities to
be done

- is used for scheduling resources, a bar chart

with time on horizontal axis and the resource to be
scheduled on the vertical.
 LESSON 10

- is a group of people working together for a common goal.

Formal Vs. Informal Organization

➢ -is a type of organization formed
to meet specific goals and has laid out rules and a
hierarchical structure.
➢ -is a social structure that
spontaneously arises among people with common
interests.

Organizing as a Process
➢
-objectives, policies and plans change if there is a
change in the environment
 ➢
-Examples of these activities are financing,
production, and advertising
➢
-Examples: Personnel Activities-hiring, training
promoting, retiring and compensating / Marketing
Activities- packaging, advertising, warehousing,
transporting, selling
➢ -
assign activities to competent individuals with
appropriate authority
➢
-organizational structure –indicates levels of
management from top to bottom, vertical and
horizontal relations of the organization

Four Distinct Activities of Organizing:

1. Determines the activities to be performed to achieve
organizational objectives
 2. Clarifies the types of work and groups these into
manageable work units
3. Assigns the work to individuals and delegates
appropriate authority
4. Constructs a hierarchy of decision-making
relationships

The Importance of Organizing

The success of organizing is the success of management.
This means the accomplishment of objectives. When
productive resources and activities are properly organized,
it is much easier and cheaper to attain the established
organizational objectives.

Principal Organizational Concepts:

➢
-is the assignment of formal authority from superior to
subordinate.
-It is process of assigning tasks and the corresponding
authority to specific individuals in the organization.
 Elements Of Delegation
•
-is the right to give orders and make decisions.
These rights are vested in individuals by virtue of
their positions. Authority provides power. This is the
ability to exert influence in the organization.
Types of Authority
1. Line Authority – it is a direct supervisory relationship
between superior and subordinate.
2. Staff Authority- It is the right to advise those in line
authority according to one‘s area of expertise.
3. Functional Authority- it is the authority delegated to
the members of the staff department to control the
activities of other department.
•
– the obligation to perform one‘s assigned duties.
•
–refers to the acceptance of responsibility for
honest and ethical conduct towards others. It means
that the subordinate is answerable to his superior for
his actions.
 Two principles of effective delegation
a. Scalar principle b. Unity of command

-refers to the number of subordinates a

manager should direct.

- is the act by which tasks and

responsibilities are assigned to departments and based on
any of the following factors: task, product, territory,
customer or process.

– if the authority is in the hands of one or few

individuals at the top of the organization, it is centralized
organization.

-If the authority is in the hands of many

from the top to the lower levels of the
organization, it is decentralized organization.
Types of organizational structure
➢ – in this structure, an organization
is set up by function. People are grouped according
to skills, knowledge, and know-how.
➢ – this is characterized by an
organization set up by product, territory, customer
or process.

Approaches To Organizing
➢
-This is applicable to big organizations and giant
business enterprises like multinational corporations.
Regional directors are assigned to different regions
of the country or the world. The geographic structure
is most suitable when different laws, policies,
currencies and cultures exist among the various
regions.
 Figure 1: Geographic Organizational Structure

PRESIDENT

VP-
VP-Luzon VP-Visayas
Mindanao

➢
-This is the most common and basic approach to
organizing. Small enterprises which have limited
product lines adopt the functional organization.
Similar or related activities are grouped under one
department.
Figure 2: Functional Organizational Structure

PRESIDENT

VP- VP- VP- VP-

Finance Production Marketing Personnel
➢
- Large multiproduct corporations are structured on
product organization.
Figure 3: Product Organizational Structure

PRESIDENT

VP-Industrial VP-Consumer VP-Military

Products Products Products

➢
There are group of customers with different
demands, preferences and needs. Such differences
among customers require suitable strategies in order
to maximize customer satisfaction.
Figure 4: Customer Organizational Structure

PRESIDENT

VP-Industrial VP-Consumer VP-Military

Products Products Products
➢ Matrix approach
- is a company structure where teams report to
multiple leaders. Using this structure prevents teams
from needing to realign every time a new project
begins.
Figure 5: Matrix Organizational Structure
 LESSON 11

-is a managerial function by which the manager attracts,

maintains, and develops the company‘s human resources
or workforce so that they can perform their tasks efficiently
and effectively.
-Finding the best and qualified people to perform and fill
in specific positions in the organization is important. Thus,
staffing is a must.

Steps of Staffing Process:

-is a process by which the managers hire, in a timely

manner
-systematic planning to achieve optimum use of an
organization‘s human resources.
-is the initial attraction and screening of a pool of
candidates or human resource prospects available
to fill in a position.
• Job Analysis- is the determination of the tasks
and responsibilities
• Job Description-documentation of tasks and
responsibilities specific to a job position
• Job Position-occupying a certain job position
• Job Specification-set of credentials

-In the recruitment process, a pool of applicants are

sourced internally and externally from which an
employee will be hired.
Steps In The Selection Process
• Completion of job application form
• Preliminary interview
• Testing/examination
• Background investigation
• In-depth interview
 • Physical examination
• Job offering
Types of employment test
• Intelligence Test
• Proficiency and Aptitude Test
• Personality Test
• Vocational Test
P
-is the act of offering the job to a finally selected
candidate. It is the act of finally assigning the rank
and responsibility to an employee, identifying him
with a particular job.
• Compensation-is the financial value that a
team member receives in exchange for their
services. This monetary value can include
wages, salary, commissions and bonuses.
• Benefits-are nonmonetary, additional perks
or rewards that a company provides for a
team member.
 -The chosen applicants are subjected to socialization
process. They are introduced to the superiors and
officemates.

-is subsequently provided to the new hire as well as

to those who have been working in the company to
develop various employee skills.
7.
-is a regular review of an employee's job
performance and contribution to a company.

-are lateral moves

-is a move up the organizational ladder
-are downward moves

-refers to the timing, circumstances and method by

which a person leaves their job. Employee
separation can be a negative or positive experience
for both employees and employers, depending on
the circumstances.
• Termination-is the process of ending an
employee's relationship with an employer.
• Resignation-When an employee chooses to
terminate their employment.
• Retirement-is the point where a person stops
employment completely.
 LESSON 12

-is telling people what to do and seeing that they do it to the

best of their ability.
-consists of mobilizing resources, mainly people, to
implement plans and achieve organizational objectives.
-Directing is leading through proper motivation.
-In modern management directing or leading is also called
influencing

-is a process in which an individual influences the behavior

and attitudes of other people.

Elements of Directing
➢
-refers to a process by which a superior oversees
and ensures the work done by his subordinates
 conform to predetermined requirements and
standards.
➢
-is one of the important elements of directing. It
requires manager to inspire or induce the employees
to act and get expected result.
➢
-is the ability to persuade and motivate others to work
in a desired way for achieving the goal.
-a person who can influence is called a leader

Key Steps Involved in Directing Process:

-Define what you want to achieve so everyone knows

the target.

-Share instructions and information with your team

so they understand their roles.
 • Types of Formal Organizational
Communication

• Effective Communication in Leadership

-Leaders must be good communicators
because they inspire and empower people
around them, and without good
communication skills, a leader would never
be heard or understood by others.
• Communication as a Process
-of transmitting or sharing information with
people. Communication plays a very
important role in leading.It enables the
managers to use and transmit information to
get the job done.

-Encourage and inspire your team with rewards and

recognition to keep them engaged.
 • Motivation-refers to those factors that are
responsible for stimulating proper responses
towards the accomplishment of established
goals.

-Show the behavior you expect from others; be a

good role model.

-Check how well your team is doing and see if

they‘re on track to meet goals
6. P
-Provide helpful comments on what they‘re doing
well and what needs improvement.

-Handle disagreements quickly and fairly to keep the

team working smoothly.

-Adjust plans if things change or if you see that

something isn‘t working.
 -Promote cooperation and communication among
team members.

-Recognize and reward achievements to boost

morale and motivation.

Theories of Motivation
➢ Content models of motivation
-focus on what people need in their lives those
theories that explain what motivates individuals.

Different Kinds of Content Theories:

•
-There are five basic human needs which can be
arranged in a hierarchy of importance.
physiological, safety, social, esteem, and self-
actualization.
•
Similar to Maslow‘s hierarchy of needs. Clayton
reduced Maslow‘s five levels into three groups
existence, relatedness, growth. According to this
theory, people can focus on more than one need at
a time, and if they can‘t satisfy a higher need they
might go back and focus to the lower one.

•
1. Achievements-Desire to accomplish goals,
solve problems and succeed
2. Affiliation-Wanting to build relationships and
belong to a group
3. Power-Wanting to have control or influence
over others

•
1. Hygiene Factor-are work related factors that
contribute to job dissatisfaction. The existence
of these factors does not motivate but their
lack results to dissatisfaction. (salary, job
 security, working conditions, status, company
policies, technical supervision, interpersonal
relations)
2. Motivational Factors-are work-related factors
that are sources of job satisfaction.
(achievement, recognition, responsibility,
advancement, growth, nature of work)

➢ Process Theories of Motivation

-focus on the “hows“ of motivation. Instead of
focusing on what people need, these models focus
on the psychological and behavioral processes that
humans follow. those theories that explain how
individuals are motivated.

Different Kinds of Process Theories:

•
-This theory states that setting specific challenging
goals and being committed to them leads to better
performance. Thus, to be effective in motivating
individuals and directing them to behave for
 organizational goals, a manager must know his
employee‘s needs.
Example: My manager sets clear goals, like boosting
sales by 20%. This motivates me because I know
what to aim for.

•
-According to this theory, efforts given by an
individual to the accomplishment of a task depends
on the perceived value of the reward and the chance
of getting the reward. This explains how people
decide how much effort to put into something based
on their expectations.
Example: I believe if I work hard on a project, I‘ll get
a promotion, so I‘m motivated to put in my best effort.

•
-This theory is about how fairness affects motivation
at work. It says that fairness matters. Employees are
motivated when they feel their contributions are
 balanced with their rewards and that they are
treated fairly.
Example: I work hard but earn the same as a
coworker who does less. This feels unfair, so I might
ask for a raise or do less work.

•
-is based on the idea that behavior is influenced by
its consequences. It emphasizes how reinforcement
(rewards) punishment and extinction can shape
employees‘ behavior.
 LESSON 13

-is the process of checking to see whether organizational

activities are going on as planned.

Features Of an Effective Control System:

➢
It should provide all necessary, precise and correct
information to ensure that decisions made based on
the system are reliable.
➢
-Control needs to happen at the right time and be
related to what is important.
➢
-Control must be aligned to the organizational goals
and the manager should be able to track and
measure its results.
➢
 -A control system is a dynamic process. It conforms
to the changing internal and external environment of
the organization. It should be adaptable, meaning it
can be adjusted when there are changes in the
organization like technology or process.
➢
-The cost of installing control system should be less
or equal to the benefits to be generated. It should be
compatible with organizational realities.

Importance Of Controlling:
➢
- Helps managers assess how well the organization
is performing.
➢
- Ensures that activities align with organizational
objectives.
➢
- Provides data that informs management decisions.
 ➢
- Identifies deviations from plans, allowing for
corrective actions.

Steps in the Controlling Process:

➢
-Define clear, measurable goals and performance
standards.
• Example: Setting sales targets for a specific
period.
➢
-Collect data on actual performance levels.
• Example: Tracking sales figures at the end of
the month.
➢

-Analyze the data to see if performance meets,

exceeds, or falls short of standards.
• Example: Comparing actual sales to the set
targets.
 ➢
-Identify the causes of any performance gaps
between actual results and standards.
• Example: Analyzing whether poor sales are
due to market conditions, lack of product
knowledge, or ineffective sales strategies.
➢
-If performance does not meet standards, identify
the cause and take steps to improve.
• Example: Providing additional training for
sales staff if targets are not met.

Control System Approaches:

➢ – makes use of rules,
regulations, and formal authority to check on
progress in the attainment of organizational
objectives.
➢ – makes use of market mechanism
such as pricing and market share to establish
standards used to guide performance.
 ➢
– makes use of shared values, norms, and goals to
regulate employee behavior.

Types Of Control:
➢
-refers to a proactive control method that anticipates
problems before they occur. It involves taking
corrective actions based on expected outcomes,
allowing the system to adjust before any actual
deviations from the plan happen.
• Examples: training employees before new
system, hiring process with pre-screening
tests, office space layout planning, studying
before exam, classroom rules setup,
preparation of workplace
➢
--monitors processes as they occur. It involves
adjusting or corrections in real-time to prevent
deviations while process is still ongoing.
 • Examples: quality control on a production line,
real-time website monitoring, on-the-spot
feedback in class, coaching, supervisor
monitoring customer service
➢
-takes place after a process is completed. It involves
analyzing the results and comparing them with the
desired outcomes.
• Examples: employees performance reviews,
customer satisfaction review, classroom
feedback session, end- of- quarter financial
audits, post project review

Financial Control:
➢
 –

➢
-refers to the analysis of various pieces of financial
information in the financial statements of a business.
-They are mainly used by external analysts to
determine various aspects of a business, such as its
profitability, liquidity, and solvency.
-provide information needed to measure progress
towards objectives, and to evaluate the financial
performance of conditions of the organization.
➢
-this shows the relationship between the total revenue
and total cost (fixed cost and variable cost)
-tells you how many units of a product must be sold
to cover the fixed and variable costs of production.
 The break-even point is considered a measure of
the margin of safety.
➢
are forms of primary financial control for every
organization. It is a statement of sources of funds
and the corresponding planned activities to be
funded in each period. It serves as both as a plan
and a control.
-Budgets pertaining to labor hours, materials, sales
volume, or units of production are called
nonfinancial budgets.
➢
-These controls are designed to safeguard financial
data from inaccuracies, misrepresentations, and
fraudulent activity, thus ensuring that the audit of the
financial statements provide a truthful
representation of an organization's financial position
and performance.
 -are formal investigation which are intended to
verify if records, reports, statements, and other
relevant information are correct.

General Management Control:

➢
– This is a computer-based information system.
It is useful for effective planning, decision-
making, and control. Managers need
immediate and accurate information to
control the operations or activities of their
department.
➢
– This ensures the orderly flow of supplies, raw
materials, or finished products in an office,
factory or shop.
 LESSON 14

-is a specific means employed by business to carry out a

set of common tasks grouped according to kinds of
knowledge and techniques specific to it. Most businesses
have people doing the following functions.

Functional Areas of Management

➢
-The role of human resource management is to plan,
develop, and administer policies and programs
designed to make expeditious use of an
organization‘s human resources.
➢
-is the process of planning, organizing, staffing,
directing, and controlling the marketing activities.
 -Marketing management areas include the
following:
A. Product and/or service planning
B. Pricing
C. Distribution
D. Promotions
E. Market research
F. Customer service
-Marketing managers are tasked to meet the key
objectives of the 3Cs (customers, competition, and
company) of Marketing:
1. to satisfy the needs, wants and expectations
of target customers;
2. to outperform competitors; and
3. To ensure corporate health and profit
➢
-involves overseeing, designing, controlling the
process of production and redesigning business
operation in the production of goods and services.
-Heizer (2008) lists ten critical decisions made by
operations managers.
 A. Design of goods and services
B. Quality management
C. Process strategy
D. Location strategies
E. Layout strategies
F. Human resources
G. Supply chain management
H. Inventory management
I. Scheduling
J. Maintenance
➢
-means planning, organizing, directing and
controlling the financial activities such procurement
and utilization of funds of the enterprise.
-Part of the finance function is financial analysis.
The function of financial analyst are the following:
1. Provides guidance and analysis in making
investment decisions to business and
individuals.
2. Gathers financial information, analyses, and
makes recommendation
 3. Assesses the economic performance of
companies and industries
4. Evaluates ability of companies to repay debts
5. Creates programs, budgets, costs, and
performs credit analysis
➢
-It is concerned with the management of flow of
materials from initial purchase to the service point.
➢
-It involves the setup of system and procedures for
the work processes within an office. Through this
function, offices in the organization run efficiently.
➢
-is the use of modern electronic equipment to
facilitate information and communication, ideas,
knowledge and skills.