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Organization and Management Week 1 8

The document outlines the fundamentals of management, including its definitions, principles, and various management theories such as Scientific, Administrative, and Behavioral Management. It discusses the functions, roles, and skills required of managers, as well as their social responsibilities towards the community, employees, shareholders, government, and customers. Additionally, it introduces tools for analyzing the business environment, such as PEST and SWOT analysis, to help managers navigate opportunities and threats in their organizational context.

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0% found this document useful (0 votes)
8 views31 pages

Organization and Management Week 1 8

The document outlines the fundamentals of management, including its definitions, principles, and various management theories such as Scientific, Administrative, and Behavioral Management. It discusses the functions, roles, and skills required of managers, as well as their social responsibilities towards the community, employees, shareholders, government, and customers. Additionally, it introduces tools for analyzing the business environment, such as PEST and SWOT analysis, to help managers navigate opportunities and threats in their organizational context.

Uploaded by

saligumba mike
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 31

GOLDENSTATE Rev

Issue No. Reference No.


COLLEGE No.
01 RF-ACA-SHS12-001-20
General Santos City 00
Organization & Effectivity Date: Page No.
Management June 15, 2020
1 of 18

Week 1 – 2
Learning Competencies: The learners…
 Discuss the meaning and functions of management;
 Differentiate the various types of management theories;
 Explain the functions, roles, and skills of a manager; and
 Draw generalization on the basic concepts and theories of management.

NATURE AND CONCEPT OF MANAGEMENT


Management is a process in designing, and maintaining an environment in
which individuals, working together in groups, efficiently accomplish selected aims
(Weihrich and Koontz, 1993).
Basic definitions:
1. As manager, people are employed to carry out the specific functions.
2. Management applies to any kind of organization
3. Management is important to any level in an organization.
4. The aim of all managers whether a senior manager or a junior one is the same.
5. Managing is concerned with productivity.
Principles of Management
The contributions of some key players in the development of management as a
discipline are the following:
Frederick Taylor’ Principles of Management -aimed at achieving harmonious
and cooperative group relationships, developing the full potentials of the
employees and organizations so as to work for maximum output and replacing
rule of thumb with organized body of knowledge. Jones and George (2003)
summarized Taylor’s Principles of Management into four (4).
1. Improvement in Tasks Performance.
2. Codification of new methods of performance into written rules and standard
operating procedures and processes.
3. Selection and training of employees with special abilities to carry on tasks
according to established patterns.
4. Developing a good system of remuneration for workers that excel.
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Max Weber’s Principles of Management- Weber was a German academic with


much interest in developing formalized system of organization and administration
with a view to enhancing effectiveness and efficiency in operations. He placed
much interest in the authority structure of organizations and developed the
principle of bureaucracy. He emphasized that hierarch, authority and
bureaucracy were necessary ingredients for success of all social systems
(Agbaeze, 2006). Jones and George (2003) summarized the Principles of
Management from Weber’s perspective as follows:
1. A manager’s formal authority emanates from the position being held.
2. Occupation of position is derived from a manager’s performance.
3. Clearly specified extent of authority, responsibility and relationship to the
other positions in the enterprise.
4. Hierarchical arrangement of positions.
5. Effective control of organizational members’ behavior.

Henri Fayol’s Principle of Management - a notable guru in management. He


believed that the principles of management are essentially fundamental in the
drive towards enhancing efficiency in the process of managing enterprises.
These principles form of the foundation of contemporary management theory and
practice.
1. Division of Labor
2. Authority and Responsibility
3. Unity of Command
4. Line of Authority
5. Centralization
6. Unity of Direction
7. Discipline
8. Equity
9. Order
10. Subordination of Individual Interests
11. Initiative
12. Remuneration
13. Stability of Tenure
14. Esprit De Corp
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Managerial Thoughts and Theories

 Scientific Management Theory - seeks the use scientific methods to find


the best way of performing a task or job.
 Administrative Management Theory – believe in studying the entire
organization by developing more general theories of what managers do
and what constitutes good management.
 Behavioral Management Theory – opined that the best approach to work
and productivity is through an understanding of the worker and the work
place.

 Organizational Environment Theory – an attempt to view how


managers relate with the external environment. Two of the views that are
important: System Theories and Contingency Theories.
The System Theory- holds that an organization is a diverse and unified
system, composed of numerous interrelated parts.
Contingency Theory - was developed when researchers tried to apply the
concepts of the major theories to real life situations.

FUNCTIONS, ROLES AND SKILLS OF A MANAGER


Functions of Manager
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The task of management involves the use of resources to achieve set

goals. Managers help accomplish this by performing a number of managerial


functions.
Roles of the Manager
The manager performs many roles in the process of managing. These
roles arise because of his position as a manager in an organization and the roles
are many.
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Managerial Skills
For a manager to perform well and be seen to be performing creditably, he needs
some skills which must be brought to bear in his functions.

1. Technical Skills- is the knowledge of and proficiency in activities involving


methods, procedures, and processes. They involve working tools and
techniques.
2. Human Skills- are the abilities on how to work with people. They involve
cooperating with one another as a team by creating an environment where
people feel secured and free to express their opinions.
3. Conceptual Skills- is the ability to see the big picture with the end in view
(objective) of where you are going.
4. Design Skills- is the ability to solve problems in ways that will benefit the
organization. This is done by working out practical solutions to identified
problems.
Social Responsibilities of the Manager
Social Responsibility can be regarded as the obligation of managers to pursue
those policies, to make those decisions or to follow those lines of actions which are
desirable with respect to the objectives and values of our society.
Responsibility to the Community
 Providing for the community
 Provision of Scholarship
 Provision of funds for development
 Support for games
 Provision of goods/ services
 Employment Opportunities
 Conforming to the local norms
Responsibility to the Employees
 Payment of good wages and salaries plus other fridge benefits
 Ensuring that the working environment is safe
 Taking care of welfare matters and job security
 Provision of training facilities
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Responsibility to the shareholders


 Payment of dividends and insurance of bonus shares.
 Efficient performance of the business
 Holding regular annual general meeting

Responsibility to the Government


 Payment of taxes
 Employing citizens of the country
 Complying with government rules and regulations

Responsibility to the Customer


 Producing safe and quality goods
 Proper Education
 Avoiding fake and misleading performance
 Attending to customers complaints

How to be a Successful Manager


 Keep abreast of development
 Seeking of higher responsibilities
 The need to make sound and timely decisions
 Avoid wasting time on the work that -belongs to subordinates
 Assess your own performance
 The manager should be respected
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Management June 15, 2020

Name: ____________________________________________ Rating: _____________


Section:_______________________________________ ____ Date: ______________
Worksheet # 1
1. In your own words, discuss the meaning and functions of management.
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
2. Explain at least three types of management theories.
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
3. In five to ten sentences, draw a generalization on the basic concepts and
theories of management.
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________

4. Without referring back to the previous lesson, explain the functions, roles and
skills of a manager.
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
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Management June 15, 2020

________________________________________________________________
________________________________________________________________
________________________________________________________________
5. Go back to the organization(s) that you have been visiting since you started
talking the firs course in the ABM. Find out their responsibility to: Customers,
Government; Shareholders or Owners of the business, The community, and The
employees. Cite also some cases/ problems and provide recommendation to
eliminate these problems.
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________

6. List the factors that will enhance the success of a manager. Show why the
manager should take timely decisions?
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________

7. Explain the rationale behind the fact that all managers despite the variations in
levels equally require human skills.
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________

8. There are several decisions that the manager can take in the process of
managing the organization. Try as much as you can to identify these decisions.
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
GOLDENSTATE Rev
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Management June 15, 2020

WEEK 3 - 4.
Learning Competencies: The learners…
 Identify various forces/ elements of the firm’s environment;
 Summarize the forces using Political Economic Social and Technological
Analysis (PEST) and Strengths, Weaknesses, Opportunities and Treats
(SWOT) Analysis Framework;
 Describe the local and international business environment;
 Explain the role of business in relation to economy;
 Discuss the various phases of economic growth; and
 Differentiate the various forms of business organization.
THE FIRM AND ITS ENVIRONMENT
Business Environment - is a set of forces and conditions outside the
organization’s boundaries that have the potential to affect the way the
organization operates. These forces and conditions change from time to time.
The business environment presents opportunities which organizations can take
advantage of and threats that the organization should avoid. For example,
changes in the environment such as the introduction of new technology or the
opening of the global markets, create opportunities for managers to obtain
resources or enter into new markets and thereby strengthen their organizations.
In contrast, the rise of new competitors, a global economic recession, or an oil
shortage poses threat that can devastate an organization if managers are unable
to obtain resources or sell the organization’s good and services. The quality of
manager’s understanding of organizational environmental forces and their ability
to respond appropriately to those forces are critical factors affecting
organizational performance.
Features of the Business Environment
These can be identified as:
1. The rate of change of the environment, that is, static, dynamic, and turbulent
environment.
2. Effect of the environment, that is opportunities and threats.
3. Extent of control, for example, controllable or uncontrollable environment.
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Generally, environmental factors can be classified as:


Internal Environment- comprises the forces that affect a business as a separate
entity. It is sometimes called the internal working system or organizational
climate, and consist of people functions and structures, which are generally
regarded as controlled environmental factors.
Task Environment- the direct external environment consisting of individuals or
groups that are customers, financial institution suppliers, labor organizations,
government agencies, and local communities.
Indirect Environment Factors- comprise the forces that affect a business as
well as other business organizations. They include:
 Socio-Cultural Variables
 Technological Environment
 Economic Environment
 Political Legal Environment
 Physical Environment
 International Environment

Political Economic Social and Technological Analysis (PEST)


It is a measurement tool which is used to assess markets for a particular product
or a business at a given time frame. These can influence marketing and relationships
that a company has worked hard to develop. Knowing ahead of time that a change may
be occurring will help in making better business decisions.
Political Factors: Government policies regulate trade markets and
other business environments. Political factors such as trade and safety
regulations, taxes, and employment all affect a business.
Economic Factors: Factors such as interest rates,
stability, taxes, and inflation affect a company’s activity.
Following economic trends is important for the company because without
preparation, a company may be unprepared for the sudden changes.
Socio-Cultural Factors: By examining the socio-cultural aspects of the
environment, you can study the market’s customer demographic, lifestyle
choices, disputes or limitations, and general knowledge. Use this to model
campaigns and strategies to appeal to the customers within that environment.
Education is also a major socio-cultural factor because it molds the mindset of
attitude of millennials.
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Technological Factors: Changes in technology provide windows of opportunity.


With updated technological processes, a company is more prone
to innovation, growth of a company, and may even be able to re-target to
the younger generation. Technology is always changing, and therefore
a company should project how and when to adapt to the change.

Strengths, Weaknesses, Opportunities, and Threats (SWOT) Analysis


It is one of the most commonly used tools to assess the internal and
external environments of a company and is part of a company’s strategic
planning process. In addition, a SWOT analysis can be done for a product, place,
industry, or person. A SWOT analysis helps with both strategic planning and
decision-making, as it introduces opportunities to the company as a forward-
looking bridge to generating strategic alternatives.

Local and International Business Environment


International Business – is any business that is carried out in more than one
country. Daft (1997) maintains that the fundamental tasks of business management,
including financing, production, and distributions of products and services do not
change in any substantive way when a company goes international.
Stages of International Business
 Outsourcing  Importing and Exporting
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 Licensing and Franchising  Joint Venture


 Strategic Alliances  Wholly Owned Affiliates (Build or
Buy
Environmental Challenges of International Business
 Economic System  Government Stability
 Natural Resources  Incentives for International Trade
 Infrastructure  Controls on International Trade
 The Political/ Legal Environment
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PHASES OF ECONOMIC DEVELOPMENT

Forms of Business Organization


SOLE PROPRIETORSHIP A sole proprietorship is a business owned and
operated by one individual. The shops or stores which you see in your locality —
the grocery store, the vegetable store, the sweets shop, the chemist shop, the
paanwala, the stationery store, the STD/ISD telephone booths etc. come under
sole proprietorship.
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Advantages
Disadvantages
• Easy to start
• No registration
• Unlimited liability Employee benefits
• No profit sharing
• Raising funds
• Easy decision-making
• Limited Life
• Easy to windup
• Loss in absence
• Secrets (business
techniques) • No corporate
taxes

Partnership is a legal relationship formed by the agreement between two or


more individuals to carry on a business as co-owners. Each member of such a
group is individually known as ‘partner’ and collectively the members are known
as a ‘partnership firm’.

Advantages Disadvantages
• Relatively easy to start • Unlimited liability
• The ability to raise funds • Profit sharing
• More skilled persons • Conflicts
• Loss sharing • Limited life
• No Loss in absence • Transferability is difficult

Joint Stock Company a voluntary association of persons to carry on business.


Members of a joint stock company are known as shareholders and the capital of the
company is known as share capital.
• Professional Mgt
• Social Benefit
Disadvantages
Advantages
Formation is not easy.
• Limited Liability. Control by a Group.
• Continuity of existence. Excessive government control.
• Benefits of large scale Delay in Policy Decisions.
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Name: ___________________________________________ Rating: ____________


Section:____________________________________________ Date: _____________
Worksheet # 2
1. Explain the various forces of the firm’s environment.
________________________________________________________________
________________________________________________________________
________________________________________________________________
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________________________________________________________________
________________________________________________________________
2. Discuss the usefulness of SWOT analysis.
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
3. Describe the local and international business environment.
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
4. Explain the role business in relation to economy.
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
5. Discuss the various phases of economic growth.
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
6. Differentiate the forms of business organization.
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
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7. If you are to start your own business as a sole trader where will you source of
funds?
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________

WEEK 5-6
Learning Competencies: The learners…
 Define the meaning of planning.
 Discuss the advantages and disadvantages of planning.
 Give the benefits and problems of planning.
 Compare and contrast the different types of plans.
 Describe planning at different levels in the firm.
 Discuss the planning process, technique and tools; and
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 Apply appropriate planning techniques and tools.

DISCUSSION
Planning is defined as the design of a desired future and of effective and efficient way
of bringing it about.
Features of Planning
1. Planning involves design.
2. Planning attempts to bring necessary actions and fit them together to something
we want to make sense of before it happens.
3. Planning is focused on the need to achieve stated and well defined objectives.
4. Planning is also a conscious deliberate response to the negative belief that
unless something is done a desired future state will not occur.
Advantages of Planning
1. Planning focuses on objectives.
2. It off sets uncertainties making the manager to develop some confidence which
will enable him to take decisions with some degree of uncertainty.
3. All unwanted activities are isolated and thrown away.
4. Planning also ensures control through measurement and feedback.
Disadvantages of Planning
1. The effectiveness of planning depends on the quality of gathered and the
assumption made from them.
2. Planning is expensive as it involves considerable amount of time and money.
3. Planning delays action because it is only when the plan is completed that the
desired action take place.
Benefits of Planning
1. It helps identify opportunities for the organization planning requires an
organization to look for opportunities; to earn profit or provide a service that
otherwise may not exist.
2. It helps identify possible problem.
3. It forces managers to set objectives.
4. It forces managers to set standard.
5. It coordinates organizational activity well-developed plans
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Problems in planning
1. Lack of support from top management.
2. Poor performance is a key element in planning.
3. Resistance to change
4. Over or under commitment in plans
5. Managers are not involved in the planning process.
6. Lack of competence in planning

Types of Plan
There are a variety of ways in which we can categorize plans.
1. Breadth –
 Strategic plans- generally apply to the entire enterprise establish the
enterprise’s `overall objectives and seek to place the organization in terms
its environment.
 Operational plans- specify the details required to achieve the overall
objectives.

2. Time frame-
 Short time plans- plans within less than one year.
 Intermediate plans- plans period between 1-5 years
 Long-term plans- plans exceeding five years

3. Specificity-
 Specific plans- are explicit and with clearly defined objectives. It follows,
clear procedures, budget allocations, schedules of activities must be
designed to achieved the target.
 Directional plans- plans that are merely give general guidelines, for
example, providing focus or direction with no specific objectives.

4. Frequency of use-
 Standing plans- provide guidance for events that are repetitive in an
enterprise, for example, the national policy on gender mainstreaming.
 Single-use plans- are planned specifically to meet unique needs. They are
created in response to non-programmed decisions, since managers may
not repeat such plans.
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Planning at different Levels in the Firm


Planning must be developed for all levels of management, although other focus
will differ at different levels of management. Below are the planning activities of top
managers and low level managers which reveal four principal differences.

TOP MANAGERS LOW – LEVEL MANAGERS


1. Develop organizational objectives Develop plans that will fit the overall
and the overall plan to achieve objectives set by top management.
them.
2. Spend a large proportion of their Spend a much smaller preparation time
time on the planning function. on the planning function

3. The time frame for planning The time frame for planning activities is
activities is large (about one year). short (often week to week).

4. Focus on both internal and Focuses largely on internal organization


external factors when planning factors.

Planning Process
1. Managers at all level proceed through these steps when they carry out the
planning functions.
2. The planning process takes place within an organization but is influenced by
factors outside the organization.
3. The planning process is not as neat and orderly as the model implies, some
steps may be repeated several times.
4. Contingencies planning is necessary to take into account unexpected events.
A plan can play a vital role in helping to avoid mistakes or recognize hidden
opportunities, preparing a satisfactory plan of the organizational is essential. The
planners know the business and they have thought through its development in terms
of products and management finances and most importantly markets and
competition, planning helps in forecasting the future, makes the future visible to
some extent, it bridges between where we are want and where we want to go.

Planning Techniques
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1. Readiness to engage in planning- a step to help clarify the organization’s beliefs.


2. Creating a vision- means a statement of purpose and function.
3. Stock taking- implies a vivid understanding of the organization’s current status
and it involves an exhaustive examination of both external and internal context
within the enterprise’s situation.
4. Goals and objectives setting- Goals are simply a clearer statement of the visions
which specify what is to be accomplished so that the vision becomes real.
Objectives are only clearer statements of the specific activities that are required
to achieve set goals.
5. Build a communication plan- Having a successful plan requires much of a sound
communication campaign from the onset to create awareness and acceptance.

Planning Tools
1. Environmental Scanning- An in-depth analysis or screening of volumes of
information to detect emerging trends and create scenarios.
2. Forecasting- From the environmental scanning, forecasts (predictions of future
outcomes) are made.
3. Benchmarking- simply means a search for the best practices among competing
or non-competing firms, leading to their superiority in such industries.
Application of Planning Techniques and Tools
1. Establish and define clearly the central and overall objectives of the organization.
2. Determine your current position relative to your objectives.
3. Develop forecasts and future conditions.
4. Preparation of derivative plans.
5. Implement plan and evaluate its results.

The Six P’s of Planning


1. Purpose- An effective planning system requires a clear understanding of the
organization’s purpose. What are the reasons of the organizations’ existence? Is
it to increase profit or increase market share or generate more employment or
introduce more products? This purpose must be clear and elaborate.
2. Philosophy- incorporates the fundamental beliefs as to show the organization’s
purpose is to be achieved. For long-term survival and growth, a philosophy of
ethical conduct must be adopted. For example, General Motor’s philosophy is
based upon elevate of the salesman to an executive.
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3. Premise- involves the strengths and weaknesses of the organization and its
knowledge and assumption about its environment.
4. Policies- are general guidelines or constraints that aid in managerial thinking and
action.
5. Plans- represent specific objectives and action statements. It guide us step by
step as to how to reach the objectives and also at what stage the progress is at a
given time.
6. Priorities- A particular organizational goal must be given a particular priority.

Name: ___________________________________________ Rating: ____________


Section:____________________________________________ Date: _____________
Worksheet # 3
1. In your own words, discuss the nature of planning.
________________________________________________________________
________________________________________________________________
________________________________________________________________
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________________________________________________________________
________________________________________________________________
2. Compare and contrast the different types of plans.
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
3. Describe planning at different levels in the firm.
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
4. Cite a specific situation where you can apply appropriate planning techniques
and tools. Prepare a simple plan for that specific situation.
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
5. How does planning benefit an organization? What potential problems exist in
planning?
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
6. Assuming you want to buy a car to ease your transportation problem of going to
work and other places. Show how you will use the model to take a decision and
solve the problem.
________________________________________________________________
________________________________________________________________
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________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
7. Explain the advantages and disadvantages of planning.
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________

WEEK 7-8
Learning Competencies: The learners…
 Discuss the meaning and the steps of decision-making;
 Formulate a decision from several alternatives;
 Identify the nature of organization; and
 Illustrate an organizational structure.
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Decision-Making
In the process of planning an organization decision is being made. Decision-
making is where choices are being made of which activity is to be carried out from
other different activities.

Steps in Decision-Making
1. Define problem/issue- The objective has been set, and there is an obstacle
toward the realization of the objective. As a result, before a problem does
exist and becomes an issue there must be an objective to identify which
problem is threatening. That problem must be identified and isolated.
2. Collect relevant data- planning and decision making cannot take place unless
there is data. But the data should be meaningful to the problem already
identified. This is where the information gathered in the management function
of forecasting will be useful.
3. Develop alternative solutions- The solution can never be one if it so then
there can be no choice. The idea of choice suggests that at least there must
be two solutions to the existing problem. Out of these solutions, there can be
a choice.
4. Assess the consequences- But before there can be choice, its consequences
must be carefully considered in the light of the problem threatening the
objective. The manager should determine the required resources needed in
selecting an option.
5. Select optimum solution- The solution having been worked out and ranked in
order or preference, the next stage is to choose. And the choice should be the
most feasible one after taking several factors into consideration vis-à-vis the
objective and the problem at stake.
6. Implement solution-Once the choice has been made, the management should
proceed to implement. While implementing, there should be built-in
motivational system that will enable problem to be tackled satisfactorily.
7. Measure result- While implementing, there must be control and feedback.
There should be regular reports on performance. The reports should be then
be compared with the objective. If there is deviation, these means that there
is no effective solution yet to the problem. Should deviation should be quickly
corrected.
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Nature of Organizing
Organizing is one of the functions of management where the manager is
expected to bring his creativity to bear. He has to be original and innovative in the
discharge of this function. It can be recalled that we treated business objectives and the
necessary skills a manager have in other to satisfactorily perform his functions.
Organizing can be thought of as types of as:
1. Identification and classification of required activities necessary for the
accomplishment of the objectives of the organizations.
2. The grouping of the activities identified.
3. The assignment of the activities which have been grouped (each group of
activities) to a manager.
4. Provision of commensurate authority to the manager so that he can be able to
supervise the group of activities that has been assigned to him.
5. Co-ordination which ensures that the group of activities assigned to other
managers in the organization.
Advantages of Organizing
1. The environment, that is, the internal environment is made clear.
2. Organizing makes it possible to determine who is to do what.
3. Organizing again makes it possible to identify who is responsible for what result.
4. Removes obstacle
5. It makes it possible for smooth decision making network.
6. Presence of communication network.
What is organization?
Organization is one word that people use loosely. In one sense, some people
look at the word as including all the behaviors of the people that work in establishment.
What is organizational structure?
Structure is the pattern of relationship along positions in the organization and
among the members of the organization. The purpose of structure is the division of work
among members of the organization, and the coordination of their activities so they are
directed towards achieving the goals and objectives of the organization. Mullins, 2000).
Drucker (1989), suggest the organization structure should satisfy three
requirements.
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1. It must be organized for business performance.


2. The structure should contain the least possible number of management levels.
3. Organization structure must make possible training and testing of future top
management.

Objectives of Organizational Structure


The objectives of organizational structure according to Knight (1977) are as
follow;
1. The economic and efficient performance and the level of resource utilization;
2. Monitoring the activities of the organization;
3. Accountability for areas of work undertaken by groups and individual members of
the organization;
4. Coordination of different parts of the and different areas of work;
5. Flexibility in order to respond to future demands and developments, and adapt to
changing environmental influences; and
6. The social satisfaction of members working in the organization.

Types of Organizational Structure


1. Functional organizational structure- this structure makes use of expertise since
members engage in one functional activity e.g. production. It is the most basic
structure.
2. Product/Market Structure- It involved in the production or marketing of one or
related product are brought under one division. This explains why it is often
called organization by division. This system is practiced mostly by large
organizations.
3. Matrix Structure-This is basically a hybrid type since it simultaneously combines
the other types. It follows that employees have in effect two superiors, with one
chain of command and the other is horizontal which combines people from
various functional departments into a project team or a business team.
Dimensions of Organizational Structure
1. Formalization- It refers to the amount of written job description, rules, policies
and procedures that guide employee behaviour.
2. Centralization – It deals with issue of how much authority is held at the various
management levels in the organizational hierarchy.
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3. Complexity – It concerns the number of distinctly different job titles and


departments in an organization with many different department.
4. Specialization – It means breaking a complex task into a simple parts so that the
individual or group performing the task can focus on a specific parts of it.

Composition and Members in the Organizational Structure


The structure is important because it shows the duties that should be performed
in order that the goals and objectives can be reached. The structure of an organization
is basically of three layers: Board of Directors, Office of the Managing Director and
Complex layer.

Board of Directors
He is in charge of the day to day activities of the organization. The board
provides leadership and that is why whoever is going to be elected or elected or
appointed to the board must be a matured individual capable of contributing
constructively to the leadership role of the board. These functions include the following:
1. Determination of Organizational Policy
2. Determination of Organization Objectives
3. Carrying out Appraisal on the Organization
4. Determination and Provision Adequate funds
5. Providing Schemes of Control
6. Appointment of the Managing Director

The Managing Director


He occupies dual office, as a member of the board; he shares in the duties of the
board that is in corporate responsibilities with the other board member. His duties
include the following:
1. He presents organizational objectives
2. The managing director issues appropriate instructions.
3. He maintains Co-ordination
4. He creates and sustain morale
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The Operating Executives (Complete Layer)


It is a complex one and it consists of the functional managers.
1. The Financial Department
 They carry out costing
 Financial Accounting
 Records and budget Control
2. The Marketing Department
 Market and marketing resources
 Market information
 Segmentation
 Product Valuation
 Buying and selling
 Pricing and distribution
3. The Production Department
 Planning for and measuring production progress
 Engineering
 Methods and standard
 Manufacturing among others
4. The Personnel Department
 Recruitment
 Selection or interview
 Placement
 Salaries and Wages
 Promotion and training among others

Name: ___________________________________________ Rating: ____________


Section:____________________________________________ Date: _____________
Worksheet # 4
1. In your own words, discuss the nature of organizations.
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2. Illustrate the various types of organization structures.
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3. A cleaner was so hardworking that the manager decided to make him the head
cleaner. What are the decisions he has to make from time to time in exercise of
his authority as the head cleaner?
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4. List the necessary conditions that should be present for an occupant of a position
in organization to perform his role. Cite specific position.
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5. Design and illustrate a specific organization structure for a business and discuss
the functional job description.
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