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Organization and Management

The Nature of Organization and Management; Structural elements of Management;Management Functions; O and M in Public Sector; O and M Techniques;

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Organization and Management

  1. 1. Organization and Josefina B. Bitonio, DPA A Lecture Presentation for PNP and BJMP
  2. 2. The Nature of Organization and Management Organization and management is twin terms that exist side by side with each other, each one needs and supports the other. Organizations will be inert and useless if there is no management that will steer it; management will be hollow and meaningless if there’s no organization to manage.
  3. 3. The Nature of Organization and Management In the real world of administration, organization and management are essential elements through which human actions and objectives are carried out and accomplished. In a manner of speaking, organization and management become a means to an end.
  4. 4. Organization Organizations are defined differently by different authors. There are, however, certain essential elements that can be discerned from them. In other words, organizations consist of people who, more or less, share common objectives or purpose. The behavior of the organization is directed towards the attainment of these objectives. The members who compromise the organization work jointly in groups and cooperate together in interdependent relationships. This suggests that organizations structure and integrate their activities. Furthermore, organizations use knowledge and techniques to accomplish their goals.
  5. 5. Parts of a system according to KAST and ROSENZWEIG: 1. organization itself; 2. goals and values; 3. technical subsystem (knowledge and skills required to do the task); 4. psycho-social subsystem (composed of individual and group interaction); and 5. managerial subsystem
  6. 6. Organizations help us to accomplish goals which otherwise would be much more difficult, if not impossible, to achieve on an individual basis. Organizations, like public organizations, business enterprises, hospitals, church and military, serve the multifarious and growing needs of the people and society. For most of us, organizations provide a means of livelihood, a vehicle to develop our career, and a source of pride. Others even develop a strong attachment and commitment to their organization that they’d say they are ‘married’ to their jobs there.
  7. 7. Organizations can be formal or informal are “a Formal organizations system of coordinated activities of a group of people working cooperatively toward a common goal under authority and leadership” (Scott and Mitchell as cited in Nigro 1989).
  8. 8. Organizations can be formal or informal Informal organizations, while they exist side by side with formal ones, are “undocumented and officially unrecognized relationships between members of an organization that inevitably emerge out of the personal and group needs of employees” (Stoner and Freeman, 1989). They are, as described by Herbert A. Simon, “the interpersonal relationships in the organization that affect decisions within but either are omitted from the formal scheme or are not consistent with it” (cited in Stoner and Freeman, 1989).
  9. 9. Bureaucracy Government relies on the formal organizations, more popularly known as bureaucracy, to carry out its functions and perform its role in society. Much of government activities are carried out by these organizations which are of varying sizes and functions, scattered all over the country, but all around by a common mission and purpose – that is, to protect and promote the welfare of the people. The familiar usage of bureaucracy has become associated with and often interchanged with government.
  10. 10. Management Management, on the other hand, involves the coordination of human and material resources toward the attainment of organization’s goals (Kast, 1974). In any organization, absolute harmony is hard to attain and, perhaps, unrealistically achievable. What is more realistically bound to happen is for some conflict to arise. Thus, it is the task of management to integrate the varied elements, be these cooperative or conflictive, into a complete organizational undertaking.
  11. 11. Managers – people who are responsible for integrating, coordinating, and directing activities of others – then have to bring together the organization staff, money, materials, time and space into an integrated and effective system to achieve organizational objective. Managers get things done by working with people and physical resources to realize the goals of the organization; they coordinate and integrate the work and activities of others (Kast, 1974).
  12. 12. Because most organizations work in a larger environment where other organizations, institutions, groups of people, demands, pressures, changes, developments, and so on, exist, it behooves the organizations and their managers to relate with the external environment if they have to be effective and assure their existence and relevance.
  13. 13. Management, according to Kast, has the following elements: 1) toward objectives, 2) through people, 3) via techniques and, 4) in an organization. In a short, management is getting the tasks done through people and techniques toward the attainment of objective within the organizational setting.
  14. 14. Management Functions        Planning Organizing Staffing Directing Coordinating Reporting Budgeting
  15. 15. Planning is an organizational management activity that is used to set priorities, focus energy and resources, strengthen operations, ensure that employees and other stakeholders are working toward common goals, establish agreement around intended outcomes/results, and assess and adjust the organization's direction in response to a changing environment. It is a disciplined effort that produces fundamental decisions and actions that shape and guide what an organization is, who it serves, what it does, and why it does it, with a focus on the future. Effective strategic planning articulates not only where an organization is going and the actions needed to make progress, but also how it will know if it is successful
  16. 16. Organizing Organizing is the function of management that involves developing an organizational structure and allocating human resources to ensure the accomplishment of objectives. The structure of the organization is the framework within which effort is coordinated. The structure is usually represented by an organization chart, which provides a graphic representation of the chain of command within an organization. Decisions made about the structure of an organization are generally referred to as organizational design. The matching of organizational form, such as structure, reporting relationships, and information technology, with the organization’s strategy. Decisions.
  17. 17. Staffing After an organization's structural design is in place, it needs people with the right skills, knowledge, and abilities to fill in that structure. People are an organization's most important resource, because people either create or undermine an organization's reputation for quality in both products and service In addition, an organization must respond to change effectively in order to remain competitive. The right staff can carry an organization through a period of change and ensure its future success. Because of the importance of hiring and maintaining a committed and competent staff, effective human resource management is crucial to the success of all organizations.
  18. 18. Directing Directing or Direction function is said to be the heart of management of process and therefore, is the central point around which accomplishment of goals take place. A few philosophers call Direction as “Life spark of an enterprise”. It is also called as on actuating function of management because it is through direction that the operation of an enterprise actually starts. Being the central character of enterprise, it provides many benefits to a concern which are as follows: It Initiates Actions - Directions is the function which is the starting point of the work performance of subordinates. It is from this function the action takes place, subordinates understand their jobs and do according to the instructions laid. Whatever are plans laid, can be implemented only once the actual work starts. It is there that direction becomes beneficial.
  19. 19. Directing It Ingrates Efforts - Through direction, the superiors are able to guide, inspire and instruct the subordinates to work. For this, efforts of every individual towards accomplishment of goals are required. It is through direction the efforts of every department can be related and integrated with others. This can be done through persuasive leadership and effective communication. Integration of efforts bring effectiveness and stability in a concern. Means of Motivation - Direction function helps in achievement of goals. A manager makes use of the element of motivation here to improve the performances of subordinates. This can be done by providing incentives or compensation, whether monetary or non - monetary, which serves as a “Morale booster” to the subordinates Motivation is also helpful for the subordinates to give the best of their abilities which ultimately helps in growth. It Provides Stability - Stability and balance in concern becomes very important for long term sun survival in the market. This can be brought upon by the managers with the help of four tools or elements of direction function judicious blend of persuasive leadership, effective communication, strict supervision and efficient motivation. Stability is very important since that is an index of growth of an enterprise.
  20. 20. Directing Coping up with the changes - It is a human behavior that human beings show resistance to change. Adaptability with changing environment helps in sustaining planned growth and becoming a market leader. It is directing function which is of use to meet with changes in environment, both internal as external. Effective communication helps in coping up with the changes. It is the role of manager here to communicate the nature and contents of changes very clearly to the subordinates. This helps in clarifications, easy adaptions and smooth running of an enterprise. are benefited out of that in form of higher remuneration Efficient Utilization- Direction finance helps in clarifying the role of every subordinate towards his work. The resources can be utilized properly only when less of wastages, duplication of efforts, overlapping of performances, etc. doesn’t take place. Through direction, the role of subordinates become clear as manager makes use of his supervisory, the guidance, the instructions and motivation skill to inspire the subordinates. This helps in maximum possible utilization of resources of men, machine, materials and money which helps in reducing costs and increasing profits.
  21. 21. Coordination Mooney (1953) defines coordination as & the orderly arrangement of group effort to provide unity of action in the pursuit of a common purpose. Coordination is the process of synchronizing activities of various persons in the organization in order to achieve goals. It is undertaken at every level of management.
  22. 22. Reporting Accountability reporting is primary intended to help management better measure performance against target, whereas, insight reporting is focused on providing information to help management better understand the business and react tactically and strategically.
  23. 23. A budget is one of your best tools for reaching your goals . It’s a plan of what money you expect to receive and how you expect to spend it. A good budget is characterized by the following: · Participation: involve as many people as possible in drawing up a budget. · Comprehensiveness: embrace the whole organization. · Standards: base it on established standards of performance. · Flexibility: allow for changing circumstances. · Feedback: constantly monitor performance. · Analysis of costs and revenues: this can be done on the basis of product lines, departments or cost centers. Budgeting
  24. 24. Organization and Management in the Public Sector Organization and management in the public sector may share many similarities with those in the private setting. For instance, both practice division of labor, have an internal organization structure, recruit personnel, give direction and assign tasks to employees, etc.
  25. 25. Public and Private Administration Criteria Public Administration 1.Relations to environment  subject to public scrutiny; public demand and expectations; political pressures Private Administration  Less exposed to public inspection; internal processes are kept from public; response to public guided by market dynamics 2. Accountability  Accountable to the public; transparency in transactions is expected  management accountable to owners of firms/corporations 3. Measure of performance  general public satisfaction is the gauge in the improvement in the quality of life  profit is bottomline 4. Nature of goods and services  open to all  availment based on ones ability to pay
  26. 26. Organization and Management Techniques Organization Development (OD). Organizational development, OD for short, is an approach to planned organizational change. It is a long-term and, oftentimes, complicated effort to bring the organization to a higher level of functioning and, at the same time, improve the performance and sense of satisfaction of the members of organization. While OD includes structural and technological changes, its main focus is on changing people and the nature and quality of their working relationships, in short, the organizational culture.
  27. 27. Organization and Management Techniques To achieve this, OD zeroes in on improving the problem-solving and self-renewal processes of the organization. Problem-solving process refers to the methods by which organizations deal with problems and situations they face. Renewal process allows managers to adjust to environmental changes by adapting their problem-solving style and goals in a way that will be most suitable to given situations. Because organizational development involves the whole organization, support of top management is essential. Another way of saying this is that OD can only take place with the blessings of the top hierarchy or high-ranking officials in the organization (Stoner and Freeman, 1989).
  28. 28. Management and Information System (MIS) Management information system, or MIS, is computer-based information system that provides accurate and timely information to those needing them. MIS is highly important for the effective performance of the managerial functions. MIS facilitates planning, decision-making and control, and enables the organization to carry out these functions more effectively and efficiently (Stoner and Freeman, 1989). It is not surprising that with the increasing sophistication of computer technology today, newer systems that can aid public managers in their job will be developed.
  29. 29. Total Quality Management by Dr. William Edward Deming documented both public and private organizations in their attempt to respond to changes as brought about by the advances in computer and communications technology and trade liberalization and globalization.
  30. 30. O and M Studies As a field of study, public administration has always been concerned with improving our understanding of public organizations, commonly known as bureaucracy, and their effective management. Because much government activities are carried out by the bureaucracy, it is important to investigate how these public organizations work and operate. The knowledge gained can help those working in government manage their agencies more effectively.
  31. 31. The interest in studying the organization and management of public organizations and institutions will not wane. Government has always relied upon its agencies and institutions to carry out its activities and the concern for improving government will undoubtedly involve looking into how these organizations function, their interrelationships with each other and the external environment.
  32. 32. Public administration O and M varies in their approaches and focus. in the United States, the focused were on the formal structures, functions, and processes of the administrative organizations of government. The focus on the internal aspects of public administrative system and the concomitant values of efficiency, economy, and effectiveness with which the organizations function and operate is characteristic of the traditional public administration.
  33. 33. Concepts on System Approach • A system is an organized unitary whole composed of two or more independent parts, components or subsystems and delineated by identifiable boundaries from its environmental suprasystem. (F. Kast and J. Rosenzweig, 1979). • A system can be looked as having inputs, processes, outputs and outcomes. Figure 1 presents a system framework and its major elements.
  34. 34. Inputs: Resources (in terms of manpower, money, materials, equipments and facilities) Conversion Process o Planning o Organizing o Motivating and o Controlling Output Products and services to the market Feedback  Influences from the government  Society  Economics and Technologies Outcomes Enhanced quality life or productivity for customers (with results meaningful and measurable)
  35. 35. Impact Impact is the change in the standard of living of the target group or within the target area from the program (UN, 1978) 1. Self-reliance; 2. Self-sufficiency; 3. Socially responsible; 4. Economically independent and politically dynamic; and 5. Better quality of life
  36. 36. O and M studies focused on structural concerns such as hierarchy, line of authority, division of labor, staff-line functions; span of control, records keeping, unity of command, and the like.
  37. 37. Subsequent studies in organization and management branched out to other concerns, using the behavioral perspective or the human relations model. These studies focused less on the formal structure and more on the human dimension and informal groups and interactions within organizations.
  38. 38. Other approaches to studying organizational phenomena tried to integrate the elements of classical and neoclassical theories such as the open-systems, decision-making and industrial humanism models
  39. 39. Other works on organization have been marked by their quest for innovative approaches (e.g., more flexible organizational forms, more participative processes, and more client-oriented) in managing organizations as well as concern for the impact of government policies and activities on the people and society. These are emphasized, for example, by the New PA.
  40. 40. Other organization studies are more perspective in character in that they recommend specific and concrete measures to improve organizational performance. These studies deal with practical administrative issues and offer solutions to solve them. These studies are what you call applied studies or research and are sometimes referred to as management studies.
  41. 41. A popular example of applied organization studies that we can cite is the reorganization of the bureaucracy. A study of the existing structure, functions, and procedures is conducted with the view to identifying concrete measures that will improve the conduct of government and public affairs.
  42. 42. Generally speaking, the studies made by the Institute during those years were “characteristically inward-oriented” and focused on organization structures, functions, processes, and procedures, concluded by recommendations to apply management tools and techniques that have been employed in the United States. The studies dealt with wide ranging practical issues concerning internal structure, building space, work simplification, salary scale, employee morale, line of authority, line and staff functions, and so on.
  43. 43. Even as the researches continued to adhere to this “inward-looking orientation”, other patterns emerged. Research investigations already included the local governments-their organizations, functions, and management- and not just concentrating on the national government offices and institutions
  44. 44. Studies also began to cover the relations between the bureaucracy and the public at large, as exemplified by the researches on public accountability and program implementation. This “outwardlooking orientation” and interest on social relevance of public administration became more pronounced in the studies following the declaration of martial law and onwards to the ‘80s (Reyes, 1995).
  45. 45. Many of the organization studies conducted by the CPA that the time precisely fitted into the scheme of upgrading the administrative capability of the government. They were a direct and relevant response to the need and call for efficient, economical, and effective government. These studies were of the applied type and addressed practical problems in internal administrative structure, functions, and processes
  46. 46. They also offered concrete measures to improve the system. In a sense, the studies filled the role of providing the government with ideas and solutions to improve government operations and performance and, thus, make it more capable in accomplishing its task of nation building and national development.
  47. 47. Thus far, it is apparent that the bulk of organization studies before were more oriented towards dealing with practical issues in Philippine public administration than building theoretical knowledge about public organizations.
  48. 48. This much was noted by Cariño when she reviewed the researches undertaken by the College. According to her, as cited by Reyes, a little less than three percents of studies made between 1952 and 1972 could be considered as theoretical works. Reyes also reiterates this observation in his article.
  49. 49. For the Filipino public administration scholars, the challenge probably lies not only in discovering new frontiers in the discipline but, more importantly perhaps, in defining a public administration model that brings in the Filipino perspective and the realism of Philippine experience.
  50. 50. Reference • Cariño, Ledivina. “Education for Public Administration in Asia and Pacific: Woodrow Wilson in a Different Time and place”, in L. V. Cariño, (ed), Public Administration in Asia and the Pacific-Survey of Teaching and research in Twelve Countries. Social and Human sciences in Asia and the Pacific. RUSHSAP Series on Occasional Monographs and Papers no. 33, Bangkok: UNESCO, 1991. • Tapales, Proserpina D. “New Challenges to Teaching and Research in Public Administration.” PJPA. 32(1&2) (January-April): 1-6, 1988.
  51. 51. Reference