Chapter 1

Managing in the New Age

The Threats to Company Survival
• Major Calamities
• Terrorist Attack
• Intellectual Liability
• Product Liability
• Workplace Violence
• Supply Chain Issue
• Business Continuity
• Dishonest and Unethical Behavior

Chapter 1
The Three Waves of Organization

2nd wave- evolved in 3rd wave – evolved in

1st wave –built in the Industrial Age the Information Age,
Agricultural Age emphasized mass fast-paced environment
production and growth is needed

Flexibility- adjust and Innovation- risk-taker, new

Creativity- committed to a
reinvent itself to cope in perspective in attitudes ,
vision, with Direction
fast-changing environment values, and behavior

Chapter 1
The Art of Telecommuting
• Is often associated with working at home or away from the office
while the employee’s computer is hooked to the central computer of
the company.
• Employees can actually become more customer-focused because they
can get in touch with customers anytime of the day, work schedule
becomes more flexible giving more time for the family.

Chapter 1
Reengineering
• -system-wide approach to changing the basic processes of an organization to obtain
increases in productivity
• It is fundamental rethinking of radical redesign of business processes to achieve
drastic improvements in performance
• It involves designing of work activities or processes that tries to eliminates and
restructure tasks to eventually replace traditional methods
Reengineering Task

Step 1 Identify vital processes and Step 2 Reengineer the process, related
Step 3 Redesign the process as
performance standards, evaluate works and activities are combined,
necessary, continuous evaluation of the
current process if meeting the standard elimination of items that do not add
activities
performance (customer wants) customer value

Chapter 1
TQM Characteristics of TQM

1. Company-wide – it takes place in any area of an organization

2. The CEO and top managers are visibly supporting it
• Also known as 3. TQM is value ingrained in the corporate culture
4. Continuous improvement penetrates the culture and values of
“Leadership Through organization
Quality (LTQ) and 5. TQM forms a partnership with customers and suppliers
Continuous Quality 6. Each employee in the organization has a customer
7. Cycle times for products and services are reduced.
Improvement (CQI) 8. There are various techniques used in TQM
• To improve 9. TQM is doing it right the first time
10. The organization values and respects everyone (Corporate
productivity and Citizenship)
output quality 11. There is no single formula for everyone
through improving
customer satisfaction
by developing
procedures to manage
quality output.
Chapter 1
Dimensions of Quality

Performance Feature Reliability

Conformance Durability Serviceability

Perceived
Aesthetics
Quality
ASSIGNMENT #1-50 PTS

1. State your Observations

2. Key factors on Jollibee’s
success
2022 Freshmen Orientation
REFERENCES
 Principles and Practices of management and Organization, Samuel Mejia – Salvador; Ellinor Fua- Geronimo

 Principles of Management, Cynthia Zarate

Orientation on PUP and Introduction to the Course Subject

 Lesson 2
The Managers Job
 WHO IS A MANAGER?
• A manager is a person responsible for
the work performance of group members. A
manager holds the formal authority to commit
organizational resources, even if the approval
of others is required. For example, the manager
of a Jackson-Hewitt income tax and financial
service outlet has the authority to order the
repainting of the reception area. The income tax
and financial services specialists reporting to
that manager, however, do not have that
authority.
LEVELS OF MANAGEMENT

• Another way of understanding the nature of a

manager’s job is to examine the three levels of
management shown in Exhibit 1-1. The pyramid in this
figure illustrates progressively fewer employees at each
higher managerial level. The largest number of people
is at the bottom organizational level. (Note that the term
organizational level is sometimes more precise than the
term managerial level, particularly at the bottom
organizational level, which has no managers.)
Top-Level Managers
• C-level manager is a recent term used to describe a top-level manager; these managers usually
have the word chief in their title, such as chief operating officer.
• Top-level managers are empowered to make major decisions affecting the present and future of the
firm.
 Here are a few of the recent c-level positions often found in large organizations:

 Chief of staff. High-level executives in politics and the military have long relied on the services of a
chief of staff; this role has recently become a part of the executive suite in business. The chief of staff is
a top level advisor who serves as a confidant, gatekeeper, and all-around strategic consultant.

 Chief commercial officer. A growing number of large business firms are designating a chief
commercial officer who oversees growth and commercial success. The person in this position has
major responsibility for customer relationships and for managing the company interface with the
customer. The chief commercial officer position has been created because the many different sales
channels, especially digital sales, has forced companies to think differently about their customers and
how they interact with them.

 Chief privacy officer. As illustrated in the accompanying Management in Action, the chief privacy
officer works on such problems as safeguarding customer information in the digital world.
 Middle-level Managers
• are managers who are neither executives nor first-level supervisors,
but who serve as a link between the two groups.
• Middle-level managers conduct most of the coordination activities
within the firm, and they are responsible for implementing programs
and policies formulated by top-level management.
• The jobs of middle-level managers vary substantially in terms of
responsibility and income. A branch manager in a large firm might be
responsible for more than 100 workers.
• . A major part of a middle manager’s job is working with teams to
accomplish work. Middle-level managers play a major role in
operating an organization, and therefore continue to be in demand.
First-level Managers
• Managers who supervise operatives are referred to as first-level managers, first-line managers, or
supervisors.
• Historically, first-level managers were promoted from production or clerical (now called staff support)
positions into supervisory positions. Rarely did they have formal education beyond high school. A
dramatic shift has taken place in recent years, however.
• Many of today’s first-level managers are career school graduates and four year college graduates
who are familiar with modern management techniques.
• The current emphasis on productivity and cost control has elevated the status of many supervisors.
 TYPES OF MANAGERS
• The functions performed by managers can also be understood by describing different types of management jobs. The
management jobs discussed here are functional and general managers, administrators, entrepreneurs and small
business owners, and team leaders.

• Functional and General Managers

• Functional managers supervise the work of employees engaged in specialized activities such as accounting,
engineering, information systems, food preparation, marketing, and sales. A functional manager is a manager of
specialists and of their support team, such as office assistants.

• General Managers are responsible for the work of several different groups that perform a variety of functions.
The job title “plant general manager” offers insight into the meaning of general management. Reporting to the plant
general manager are various departments engaged in both specialized and generalized work such as manufacturing,
engineering, labor relations, quality control, safety, and information systems. Company presidents are general
managers. Branch managers also are general managers if employees from different disciplines report to them. The
responsibilities and tasks of a general manager highlight many of the topics contained in the study of management.
• Administrators

• An administrator is typically a manager who works in a public (government) or nonprofit organization,

including educational institutions, rather than in a business firm. Among these managerial positions are hospital
administrator and housing administrator. Managers in all types of educational institutions are referred to as
administrators. The fact that individual contributors in nonprofit organizations are sometimes referred to as
administrators often causes confusion. An employee is not an administrator in the managerial sense unless he or
she supervises others.

• Team Leaders

• A major development in types of managerial positions during the last 25 years is the emergence of the team
leader. A manager in such a position coordinates the work of a small group of people while acting as a facilitator or
catalyst. Team leaders are found at several organizational levels and are sometimes referred to as project
managers, program managers, process managers, and task force leaders. Note that the term team could also refer
to an executive team, yet a top executive almost never carries the title team leader.
• Entrepreneurs and Small-Business Owners

•By a strict definition, an entrepreneur is a person who founds and operates an innovative
business. After the entrepreneur develops the business into something bigger than he or she can handle
alone or with the help of only a few people, that person becomes a general manager.

•Similar to an entrepreneur, the owner and operator of a small business becomes a manager when
the firm grows to include several employees. Small-business owners typically invest considerable
emotional and physical energy into their firms. Note that entrepreneurs are (or start as) small business
owners, but that the reverse is not necessarily true. You need an innovative idea to fit the strict definition
of an entrepreneur. Simply running a franchise that sells sub sandwiches does not make a person an
entrepreneur, according to the definition presented here. Also, an entrepreneur may found a business
that becomes so big it is no longer a small business.
PROCESS OF MANAGEMENT
 Financial resources are the money
Human resources are the people
the manager and the organization Information resources are the data
needed to get the job done.
use to reach organizational goals. that the manager and the
Managers’ goals influence which Physical resources are a firm’s
The financial resources of a organization use to get the job
employees they choose. A manager tangible goods and real estate,
business organization are profits done. For example, to supply leads
might set the goal of delivering including raw materials, office
and investments from stockholders. to the firm’s sales representatives,
automotive supplies and tools to space, production facilities, office
A business must occasionally the sales manager of an office-
auto and truck manufacturers. equipment, and vehicles. Vendors
borrow cash to meet payroll or to supply company reads local
Among the human resources he or supply many of the physical
pay for supplies. The financial business newspapers and Internet
she chooses are manufacturing resources needed to achieve
resources of community agencies postings to learn about new firms in
technicians, sales representatives, organizational goals.
come from tax revenues, charitable town. These newspapers and Web
information technology specialists,
contributions, and government sites are information resources.
and a network of dealers.
grants.
 THE FOUR MANAGERIAL FUNCTIONS

Controlling generally involves

Planning involves setting Organizing is the process of
Leading means influencing others to comparing actual performance to a
making sure the necessary human
goals and figuring out ways of achieve organizational objectives. As predetermined standard. Any
and physical resources are
reaching them. Planning, a consequence, it involves energizing,
available to carry out a plan and significant difference between
considered the central directing, persuading others, and
achieve organizational goals. actual and desired performance
creating a vision. Leadership involves
function of management, Organizing also involves assigning would prompt a manager to take
dozens of interpersonal processes:
pervades everything a activities, dividing work into corrective action. He or she might,
motivating, communicating, coaching,
manager does. In planning, a specific jobs and tasks, and
and showing group members how for example, increase advertising
specifying who has the authority to
manager looks to the future, they can reach their goals. Leadership to boost lower-than-anticipated
accomplish certain tasks. The
saying, “Here is what we want is such a key component of sales.
staffing function ensures the
to achieve, and here is how managerial work that management is
availability of necessary human
sometimes seen as accomplishing A secondary aspect of controlling
we are going to do it.” resources to achieve
results through people. The leadership is determining whether the original
Decision making is usually a organizational goals. Hiring people
aspect of management focuses on plan needs revision, given the
component of planning, for jobs is a typical staffing activity.
inspiring people and bringing about realities of the day. The controlling
Staffing is such a major activity
because choices must be change, whereas the other three function sometimes causes a
that it is sometimes classified as a
made in the process of functions focus more on maintaining a manager to return to the planning
function separate from organizing.
finalizing plans. stable system. function temporarily to fine-tune
the original plan.
 Strategic Planner. Top-level managers engage in Operational Planner. Operational plans relate to the
strategic planning, usually assisted by input from day-to-day operation of a company or unit. Two such
others throughout the organization. Specific activities are (a) formulating operating budgets and
activities in this role include (a) setting a direction (b) developing work schedules for the unit
for the organization, (b) helping the firm deal with supervised. Middle-level managers are heavily
the external environment, and (c) developing involved in operational planning; first-level managers
corporate policies are involved to a lesser extent.
 Liaison- develop and maintain a network of work- Resource Allocator-divide resources in the manner
related contacts with people. To achieve this end, the that best helps the organization. Specific activities to
manager (a) cultivates relationships with clients or this end include (a) authorizing the use of physical
customers; (b) suppliers, customers, and other persons resources (facilities, furnishings, and equipment); (b)
or groups important to the unit or organization; (c) authorizing the expenditure of financial resources; and
joins boards, organizations, or public service clubs that (c) discontinuing the use of unnecessary,
might provide useful, work-related contacts; and (d)
inappropriate, or ineffective equipment or services.
personal network of in-house contacts through visits,
telephone calls, e-mail, text messages, and
participation in company-sponsored events.

Staffing Organizer(a) designing the jobs of group members;

(b) clarifying group members’ assignments; (c) explaining
organizational policies, rules, and procedures; and (d)
establishing policies, rules, and procedures to coordinate the
flow of work and information within the unit.

Staffing Coordinator. Tries to make sure that competent

people fill positions. Specific activities include (a) recruiting Task Delegator. A standard part of any manager’s job is
and hiring staff; (b) explaining to group members how their assigning tasks to group members. Among these task-
work performance will be evaluated; (c) formally evaluating delegation activities are (a) assigning projects or tasks
group members’ overall job performance; (d) compensating
group members within the limits of organizational policy; (e)
to group members; (b) clarifying priorities and
ensuring that group members are properly trained; (f) performance standards for task completion; and (c)
promoting group members or recommending them for ensuring that group members are properly committed
promotion; and (g) terminating or demoting group members. to effective task performance.
 Spokesperson. When a manager acts as a spokesperson,
Motivator and Coach. An effective manager takes time to the emphasis is on answering inquiries and formally
motivate and coach group members. Specific behaviors in Figurehead. Figurehead managers, particularly high- reporting to individuals and groups outside the manager’s
this role include (a) informally recognizing employee ranking ones, spend some of their time engaging in organizational unit. As a spokesperson, the manager keeps
achievements; (b) offering encouragement and ceremonial activities or acting as a figurehead. Such five groups of people informed about the unit’s activities,
reassurance, thereby showing active concern about the activities include (a) entertaining clients or customers as plans, and capabilities. These groups are (a) upper-level
professional growth of group members; (c) providing an official representative of the organization, (b) serving as management, (b) clients and customers, (c) other
feedback about both effective and ineffective an official representative of the organization at gatherings important outsiders (such as labor unions), (d)
performance; and (d) giving group members advice on outside the organization, and (c) escorting official visitors. professional colleagues, and (e) the general public.
steps to improve their performance. Usually, top-level managers take responsibility for keeping
outside groups informed.

Team Builder. A key aspect of a manager’s role is to build

Negotiator. Part of almost any manager’s job is trying to
an effective team. Activities contributing to this role
make deals with others for needed resources. Three
Team Player. Three behaviors of the team player are (a) include (a) ensuring that group members are recognized
specific negotiating activities are (a) bargaining with
displaying appropriate personal conduct, (b) cooperating for their accomplishments (by issuing letters of
supervisors for funds, facilities, equipment, or other forms
with other units in the organization, and (c) displaying appreciation, for example); (b) initiating activities that
of support; (b) bargaining with other units in the
loyalty to superiors by fully supporting their plans and contribute to group morale, such as giving parties and
organization for the use of staff, facilities, and other forms
decisions sponsoring sports teams; and (c) holding periodic staff
of support; and (c) bargaining with suppliers and vendors
meetings to encourage group members to talk about their
about services, schedules, and delivery times.
accomplishments, problems, and concerns.

Technical Problem Solver. It is particularly important for

first- and middle-level managers to help group members
Entrepreneur. Managers who work in large organizations have some responsibility for suggesting
solve technical problems. Two such specific activities
innovative ideas or furthering the business aspects of the firm. Three entrepreneurial role activities are (a)
related to problem solving are (a) serving as a technical
expert or advisor and (b) performing individual contributor reading trade publications and professional journals and searching the Internet to remain up-to-date; (b)
talking with customers or others in the organization to remain abreast of changing needs and
tasks such as making sales calls or fixing software
problems on a regular basis. The managers most in requirements; and (c) becoming involved in activities outside the unit that could result in performance
improvements within the manager’s unit. These activities might include visiting other firms, attending
demand today are those who combine leadership skill
with a technical or business specialty. professional meetings or trade shows, and participating in educational programs.
 Disturbance Handler. Four typical activities of a
Monitor. The activities of a monitor are (a) developing
disturbance handler are (a) participating in grievance
systems that measure or monitor the unit’s overall
resolution within the unit (working out a problem with
performance, (b) using information systems to
a labor union, for example); (b) resolving complaints
measure productivity and cost, (c) talking with group
from customers, other units, and superiors; (c)
members about progress on assigned tasks, and (d)
resolving conflicts among group members; and (d)
overseeing the use of equipment and facilities (for
resolving problems about work flow and information
example, vehicles and office space) to ensure that they
exchange with other units. Disturbance handling might
are properly used and maintained.
also be considered a leadership role.
FIVE KEY MANAGERIAL
SKILLS

https://ph.video.search.yahoo.com/search/
video;_ylt=AwrKBJflBV5j6UYoN7.1Rwx.?
p=5+managerial+skills&type=E211PH885G91645&fr=mcafee&fr2=p%3As%2Cv%3Ai
%2Cm%3Apivot#id=43&vid=3f8eb9913fb785f6066943bc37712bbb&action=view
Technical skill involves an understanding of and proficiency in a specific activity that involves methods, processes, procedures,
or techniques. Technical skills include the ability to prepare a budget, lay out a production schedule, prepare a spreadsheet
analysis, upload information onto a social networking site, and demonstrate a piece of electronic equipment.
Intricate knowledge of the business, such as developing a marketing campaign for a product, can also be regarded as a
technical skill. Technical skills are frequently referred to as hard skills. A well-developed technical skill can facilitate the rise
into management. For example, Bill Gates of Microsoft Corp. launched his career by being a competent programmer.

Interpersonal (or human relations) skill is a manager’s ability to work effectively as a team member and to build cooperative
effort in the unit. Communication skills are an important component of interpersonal skills. They form the basis for sending
and receiving messages on the job.
Although interpersonal skills are often referred to as soft skills, it does not mean these skills are easy to learn or
insignificant. Interpersonal skills are more important than technical skills in getting to the top and providing leadership to
people. Many managers at all levels ultimately fail because their interpersonal skills do not match the demands of the job.
For example, some managers intimidate, bully, and swear at group members. In the process, they develop such a poor
reputation that it may lead to their being replaced. Have you ever worked for a manager who was so rude and insensitive
that he or she damaged morale and productivity?

Conceptual skill is the ability to see the organization as a total entity. It includes recognizing how the various units of the
organization depend on one another and how changes in any one part affect all the others. It also includes visualizing the
relationship of the individual business to the industry; the community; and the political, social, and economic forces of the
nation as a whole. For top-level management, conceptual skill is a priority because executive managers have the most
contact with the outside world.
Diagnostic Skill - Managers are frequently called on to investigate a problem and
then to decide on and implement a remedy. Diagnostic skill often requires other
skills, because managers must use technical, human, conceptual, or political skills
to solve the problems they diagnose. Much of the potential excitement in a
manager’s job centers on getting to the root of problems and recommending
solutions. An office supervisor, for example, might attempt to understand why
productivity has not increased in his office despite the installation of the latest
office technology.

Political Skills - An important part of being effective is the ability to

obtain power and prevent others from taking it away. Managers use
political skill to acquire the power necessary to reach objectives. Other
political skills include establishing the right connections and impressing
the right people. Furthermore, managers high in political skill possess
an astute understanding of people, along with a fundamental belief
that they can control the outcomes of their interactions with people.
This feeling of mastery often reduces the stress associated with
interacting with people.