An overview of Management and Organization

1. MS. GAYNOR A. PEÑAMANTE, MBA
AN OVERVIEW OF MANAGEMENT
AND ORGANIZATION

2. Learning Objectives
• Describe the meaning of management;
• Identify the scope of management;
• Recognize the importance of effectiveness and efficiency in
organization;
• Describe characteristics of a manager;
• Examine the levels of managers in the organization;
• Compare the type of managers;
• Examine the skills required in managing;
• Identifying the various roles of a manager;
• Describe the nature of an organization; and
• Identify the basic principles of management and organization

3. WHAT IS MANAGEMENT?
• Management is the “Art of Getting
Things Done Through People”.
• In other words, the manager
coordinates the work of others to
accomplish goals that might not be
achievable by an individual.

4. MANAGEMENT
• Management may be defined as the
application of planning, organizing, staffing,
leading or directing and controlling functions
in the most efficient manner possible to
accomplish objectives.
• Management may be defined as the
achievement of organizational objectives
through people and other resources. It
consists of several functions, which may be
briefly defined as follows:

5. 1. Decision Making – is the process by which a decision
maker determines the available alternatives and chooses
the best solution that suits a given problem.
2. Planning – is the process of establishing objectives and
suitable courses of action before taking action.
3. Organizing – is the process of arranging an
organization’s structure and coordinating its managerial
practices and use of resources to achieve its goals.
4. Staffing – refers to the process of recruiting, placing,
training, and developing personnel.
5. Communicating – refers to transferring information from
one communicator to another.
6. Motivating – refers to the act of giving employees
reasons or incentives to work in order to achieve
organizational objectives.

6. 7. Leading is the process of directing and
influencing task-related activities of
organization members.
8. Controlling- is the process of monitoring
actual organizational activities to see that
they conform to planned activities and
correcting deviations or flaws.

7. EFFECTIVENESS AND EFFICIENCY:
A BASIC REQUIREMENT
EFFICIENCY
• The relationship to output to input ratio
and focuses on getting the maximum
output with minimum resources.
Efficiency is often referred to as “doing
things right”.

8. EFFECTIVENESS
• Effectiveness refers to goal attainment.
When managers achieve their
organization’s goal then it is called they are
effective. Effectiveness can be described as
“doing the right things”.

9. Efficiency and Effectiveness
Efficiency Effectiveness
• Efficiency = getting the
most output from the least
amount of inputs
• “doing things right”
• concern with means(ways)
of getting things done
• Effectiveness = do those
work activities that will help
the organization reach its
goals
• “doing the right things”
• concern with ends(result) of
organizational goal
achievement

10. Efficiency and Effectiveness in
Management
Resource
Usage
Goal
Attainment
Management Strives for:
Low Resource Waste (high efficiency)
High Goal Attainment (high effectiveness)
Low Waste High Attainment
Efficiency (Means) Effectiveness (Ends)

11. WHAT IS A MANAGER?
• A manager is one who plans, organizes, leads, and
controls other individuals in the process of pursuing
organizational goals. Managers are vested titles like
president, department head, dean, administrator,
supervisor, team leader, and the like.
• The manager is the one responsible of accomplishing the
objectives of his particular unit, which could be a whole
organization, a particular department, or a work group.
• Manager are responsible for using materials and talents in
the most economical and productive manner. As such, they
are regarded as very important, if not most important factor
in the economic development of the nation.

12. Levels of Management
• First-line/Lower Level Managers: have direct responsibility for
producing goods or services. Responsible for leading employees in
the day-to-day task, also referred to as “first line” or “front line”
managers. Foreman, supervisors, clerical supervisors
• Middle Managers:
– Direct the activities of other managers and sometimes also those
of operating employees. They work with top managers and
coordinate with peers to develop and implement action plans to
accomplish organizational objectives.
– Coordinate employee activities
– Determine which goods or services to provide
– Decide how to market goods or services to customers
Assistant Manager, Manager (Section Head)
• Top Managers: are responsible for the overall performance of the
organization. Chief Executive Officer, President, Vice President

13. First-line/Lower Level
Managers
 Directly responsible for production of goods or services
 Employees who report to first-line managers do the
organization’s work
 Spend little time with top managers in large organizations
 Technical expertise is important
 Rely on planning and administration, self-management,
teamwork, and communication competencies to get work
done

14. Middle Managers
 Responsible for setting objectives that are
consistent with top management’s goals and
translating them into specific goals and plans for
first-line managers to implement
 Responsible for coordinating activities of first-line
managers
 Establish target dates for products/services to be
delivered
 Need to coordinate with others for resources
 Ability to develop others is important
 Rely on communication, teamwork, and planning
and administration competencies to achieve goals

16. TYPES OF MANAGERS
1. Line managers are directly concerned with
accomplishing the goals of the
organization. The decisions they make
with regards to operations are expected to
be final and must be implemented. For
example, the university president, the dean,
and the department heads all have line
responsibilities.

17. 2. Staff managers are in charge of units that
provide support to the line units. In doing
their work, they use special expertise to
expertise to advice the line workers. The
director of personnel and the controller are
examples of staff managers.
3. Administrators are managers working in
government or in nonprofit organizations.
Examples include school administrators,
provincial administrators, and hospital
administrators.

18. MANAGEMENT SKILLS
1. Technical Skills - refer to the abilities to use special
proficiencies or expertise in performing specific tasks. They
refer to the use of tools, techniques, and specialized
knowledge. For eg: Engineer, accountant, data entry operator,
lawyer, doctor etc.
2. Human Skills - refer to the abilities to work well in
cooperation with other persons; whether they are subordinates,
peers, or superiors. A person with good human skills will have
a high degree of self-awareness and a capacity for
understanding or empathizing with the feelings of others. For
eg: Interpersonal relationships, solving people’s problem and
acceptance of other employees.

19. 3. Conceptual Skills - Ability of an individual
to analyze complex situations and to
rationally process and interpret available
information. Refer to the ability of the
manager to see the organization as a whole
and to solve problems in ways that benefit
the total system. For eg: Idea generation
and analytical process of information.

20. Management Level and Skills

21. Management Roles
• Specific actions or behaviors expected of
a manager
• 3 types of managerial roles:
– Interpersonal Roles
– Informational Roles
– Decisional Roles

22. Mintzberg’s Managerial Roles
• Interpersonal Roles: these are the roles the managers plays when he
interacts with others. (subordinates and person outside the
organization) and other duties that are ceremonial and symbolic in
nature
• Informational Roles: A very important aspect of the manager’s job
is to receive, communicate information also involve collecting,
receiving, and disseminating information
• Decisional Roles: the major part of the manager’s job is to make
decisions.

23. Mintzberg groups managerial
activities and roles as involving:
Managerial activities Associated roles
interpersonal roles: arising
from formal authority and status
and supporting the information
and decision activities.
•figurehead
•liaison
•leader
Informational roles
•monitor
•disseminator
•spokesman
decisional roles: making
significant decisions
•improver/changer (entrepreneur)
•disturbance handler
•resource allocator
•negotiator
http://www.bola.biz/mintzberg/mintzberg2.html

24. 1. Interpersonal Roles
• Figurehead: When the manager performs
this role, he acts as the symbolic head of the
organization and as a result, he is expected
to perform a number of duties of a legal or
social nature.
Perform ceremonial duties like greeting
company visitors, speaking at the opening
of a new facility, or representing the
company at a community luncheon to
support local charities.

25. 1. Interpersonal Roles (Cont)
• Leader: This role makes the manager responsible for the
motivation and activation of subordinates. As such, he is
responsible for actions in staffing, training, and other
associated duties. He performs the role of leader in
virtually all managerial activities involving subordinates.
• Liaison: deal with people outside their units to develop
alliances that will help in org. goal achievement. In
assuming the liason role, the manager makes contacts with
individuals in and out of the organization to facilitate the
accomplishment of work in his department. Examples of
such activities are acknowledgement of mail, external
board work, and other activities involving outsiders.

26. 2. Informational Roles
• Monitor: scan environment for
information, actively contact others for
information, continually update news/
stories related to their business (inside and
outside org.)
• Disseminator: share the information they
have collected with their subordinates and
others in the company

27. 2. Informational Roles (Cont)
• Spokeperson: share information with
people outside their departments and
companies

28. 3. Decisional Roles
• Entrepreneur: adapt themselves, their
subordinates, and their units to change/
innovation
• Disturbance Handler: respond to pressures
and problems demand immediate attention
and action

29. 3. Decisional Roles (Cont)
• Resource Allocator: set priorities and
decide about use of resources
• Negotiator: continual negotiate schedules,
projects, goals, outcomes, resources, and
employee raises in order to accomplish the
goals

30. What is an Organization
An organization is a collection of people working
together to achieve a common purpose. It is the
means used by people to achieve certain objectives.
A mere grouping of people will not quality as an
organization unless it has some objectives to
achieve. In order to do this, people in a group must
interact, use knowledge and techniques, and work
together in patterned relationships.

31. Type of Organization

32. Common Characteristics of Organization
The following are the four characteristics commonly shared
by organizations:
1. Coordination Effort. When properly directed, persons
working in coordination with others will produce better
outputs than when they work independently. Studies indicate
that persons who cooperate with one another in an organized
manner will produce better output than when they don’t.
2. 2. Common Goal or Purpose. In order to make employees
work with proper direction, they must be provided with a
common goal or purpose. Organizations that do not make
their goals or purposes clear run the risk of failure.

33. 3. Division of Labor. When the total job is divided
into manageable parts, workers will be more
familiar with their assignments, making them
more proficient. A manufacturing firm, for
instance, will undertake various activities like
production planning, materials procurement,
manpower acquisition, manning the production
line, and others. When the firm’s employees are
assigned to do all the functions (e.g., no specific
assignment for each employee), they will find it
hard to master any activity. The result will, most
probably, be poor production.

34. 4. Hierarchy of Authority. In controlling the
behavior of employees, positions are established
and linked by a chain of command in a
continuous branching out so that multiple layers
exist in the hierarchy.

35. BASIC PRINCIPLES OF MANAGEMENT AND
ORGANIZATION
There are certain principles that should be considered in the study of
management and organization of business enterprises. These principles are
enumerated below.
1. Management Principles. The various management principles
applicable to managing a business enterprise are as follows:
a. Division of Labor. This means breaking a job into specialized
tasks to increase productivity. For example, the total job of
financing appliance sales may be divided into tasks such as credit
investigation, collection, sales, and accounting.
b. Authority. This is the right of a person in position to give orders
and the power to exact obedience. For example, a sales manager
has the right to expect from the sales supervisors the required
volume of sales for a given period.

36. c. Discipline. This provides uniform application of behavior to certain
activities; the outcome of which is readily predicted. If discipline is
not practiced, objectives will be very hard to achieve.
d. Unity of Command. This means that each employee must have
only one supervisor. Reporting directly to more than one superior
creates problems and reduces productivity.
e. Unity of Direction. This means that the efforts of everyone in the
organization must be coordinated and focused in the same direction. It
will be hard to achieve an organizational objective if some
components of the organization are not moving toward the identified
objective.
f. Subordination of the Individual Interests to the General Interest.
This means that the goals of the organization (e.g., 25% ROI for the
current year) should take precedence over individual goals like a 10%
increase in the salaries of certain employees. When the reverse
happens, it will be difficult for the organization to succeed because its
goals will always be set aside.

37. g. Remuneration. Employees should be paid fairly in
accordance with their contribution to the organizational effort.
This must be applied to salaries bonuses, and benefits.
h. Centralization. Power and authority must be centralized as
much as practicable Decentralization must be instituted,
however, when the firm grows to a considerable size.
i. Scalar Chain. This means that subordinates should observe
the official chain of command unless authorized by their
respective superiors to communicate with each other.
j. Order. This means that human and non-human resources must
be in their proper places. The production manager, for example,
must hold office at the production site.

38. k. Equity. This is the result of kindness and justice and is a
principle to guide management and employee relations
l. Stability of Tenure. High employee turnover is
counterproductive. To motivate employees to stay with the
company, effective manpower planning and implementation
are necessary.
m. Initiative. Management should encourage employees to act
on their own volition when confronted with an opportunity to
solve a problem.
n. Spirit de Corps. This means that managers should
emphasize teamwork by building harmony and a sense of unity
among employees. Harmony breeds high morale and is more
productive than discord.

39. 2. Principles of Organization. Knowledge of the basic
principles of organization is a useful guide in organizing
business enterprises. These principles are as follows:
a. Principle of Objective. The objective of the
organization must first be determined and laid out
clearly before any activity is undertaken. The objective
will serve as the guide in determining, whether a
certain activity is required or not. If the company’s
objective, for example, is to sell financing services,
then the entire organization must be built around that
objective, and every employee of the company must
think and act in terms of selling financing services.

40. b. Principle of Analysis. Managers in organizations must
be able to break a problem down into its components,
analyze these components, and then come up with a
feasible solution. In the attempt to achieve objectives, the
analytical ability of managers and employees will be
crucial.
c. Principle of Simplicity. The organization should be built
in the simplest manner that could make the achievement of
objectives possible. Only activities that are absolutely
necessary should be undertaken, and those, which are not,
should be eliminated. For example, a business engaged in
manufacturing men and women’s clothing should not
include choir singing in its activities. If it does, it will only
draw their attention from becoming more productive.

41. d. Principle of Functionalization. Business firms
are not supposed to be organized to accommodate
individuals. Rather, it should be built around the
main functions of the business. For example, if the
company’s objective is to sell financing services,
the functions should be related to such objectives
like credit department, collection department,
financial planning department, sales, and so forth.