Organization and management

Organization and Management
Teacher: Mylene G. Almario | ABM
Module 1: THE NATURE AND FUNCTIONS OF MANAGEMENT
MANAGEMENT AS A PROCESS
PLANNING
- The process of identifying the objectives of the task, assignment, or
cause and the corresponding activties to achive those objectives.
- Workplan – is a visula planning tool in a form of summary table
wich usually contains the following information;
o Objectives;
o Corresponding activities to accomplish the given
objectives;
o The persons responsible fro doing the idetified activities;
o The time frame to accomplish each of the actvities; and
o Resources needed
ORGANIZING
- The gathering of resources requred to carry-out the activities and
allocating the effective and efficient use of resources.
- Effectiveness – dong the right things
- Efficiency – doing things right
Best scenario: do this
action always.
Discontinue doing this
action because you are in
the wrong path.
Continue to improve
doing this action.
Worst scenario: never do
this actiion
Effectiveness and Efficiency Matrix
LEADING
- Influencing other people to perfom thw a yu wish them to;
- Directing other popel to achieve the desired objectives;
- Coordinaing the proper implementation of actvities;
- Communciating effectively across various groups; and
- Motivating individual to perfrom their best.
CONTROLLING
- The monitoring and evaluation of actvities undertaken in relation to
the stated objectives.
- Identifying the gap betewwen what was planned and what was
accomplished interms of quantity and quality of works;
- Determining the main cause of problems encountered during
implemenation;
- Finding eays to correct those problems;
- Preventing thse problems from recurring; and
- Seeking new wyas to improve how things will be done in the future.
MANAGEMENT USES RESOURCES
Management is a
PROCESS
Planning
Organizinng
Leading
Controlling
Management uses
RESOURCES
People
Money
Materials &
machines
Time
Management aims
to to achieve
OBJECTIVES
SMART objectives
Perspectives in
management
EFFECTIVENESS (What to do)
EFFICIENCY(Howtodo)

- The resources pertain to people, time, money, materails, machines,
equipment, land, building, technology, information and
communciation systems, and other forms of material and non-
material things.
MANAGEMENT AIMS TO ACHIEVE OBJECTIVES
- Specific – it should be in form of sufficeint details (quantity and
quality).
- Measurable – it can be assessed and verified through objective
performance indicators.
- Attainable – it can be achieved by finding your own ways or
strategies.
- Realistic – it can be accomplished goen the current and planned
level of resources that you have.
- Time-bound – it can be accomplisehd within a definite time period.
Management Perspectives
1. Investment Perspective – the deriving an expected economic
return or material benefit from a given management activity or
business project.
2. Ethical Perspective – the examining whether a desired objective
is morally right or wrong. It was also folliwng the principle of
common good.
3. Individual Fulfillment Perspective – the management looks at
how an organization seeks to satisfy the needs employees and
develop their capabilities.
4. Maintreams Perspective vs. Multistream Perspective – it
emphasizes corporate social resppmsibility, dignification of work,
fairness in dealings, and people’s participation.
Module 2: NATURE, TYPES, AND FORMS OF ORGANIZATIONS
ORGANIZATION
- The social setting composed of several groups of people who bond
and work together to achieve a common purpose.
TYPES OF ORGANIZATIONS (PHILIPPINES)
Types of
Organization
Main Purpose
Structural
Forms
Key
Characteristics
Government
Organization
(GO’s)
Provide
specific
services to the
general public
related to
improvement
of lives and
protection of
liberties.
National
department
agencies;
national
commissions;
national
authorities;
national
councils;
LGU’s
Created, funded,
and being
operated through
specific Philippine
laws
Private business
organizations
Earn profits;
Provided
products or
services to
specific targers
markets;
Develop
capacities and
potentials of
employees;
Help improve
lives in outside
communitiesSP.
Corporation
Ownership by mani
individuals or
groups and other
corporations
throudh shares of
stocks;
Legal entity is
separate from the
owners;
Financial liability is
limited
tocontributed
shares of owners;
Geverned by
board of directors
and manage and
by officers

Partnership
Owned and
managed by two or
more individuals;
shared by
partners.
Limited
Partnetship
Owned and
managed by two or
more individuals;
limited to
contributed share
of partners.
Sole
Proprietorship
Owned and
managed an
individual;
Financial liability
rests solely on
business owner.
Cooperative
Ownership via
equal shares of
members.
Private
Associations
Promote the
common
interest of their
industries.
Industry
Associations
Coalitions of
private companies,
industry leaders,
private individuals.
Government-
owned and
Controlled
Corporations
(GOCC’s
Manage a
governemnt-
owned
enterprise that
delivers a
particular
services to the
general public.
Private
corporations
owned and
operated by
the Philippine
Government
Created, funded,
and being
operated through
specific Philippine
laws
Non-
governmental
Organizations
(NGO’s)
Provide
specific
services to
target
beneficiaries;
Civil society
groups,
corporate
foundations,
educational
Volunteer and non-
profit organization
that actively
engaged in the
development-
Advocate a
specific cause
or raise an
issue to
promote publc
awareness and
support
institutions,
livelihood
enterprises,
research
organizations
oriented projects
information
campaigns, and
other advocacy-
oriented activities.
ORGANIZATIONS AS AN OPEN SYSTEM
- The bordeless nature of organization in relation with its
environment.
Name: _____________________________________
ABM 11
Date: ______________________________________
Seatwork No. 1
Answer the following, briefly but substantialy.
Resource Inputs
People
Materials
Money
Technology
Transformation
Process
Activities that
convert inputs to
outputs
Product Outputs
Finished goods
and services

Module 3: MANAGEMENT THEORIES AND THE FUNCTIONS, ROLES,
AND SKILS OF A MANAGER
THEORIES OF MANAGEMENT
Classical Management Theories
Proponent Ideas Other Features
Frederick Taylor
Scientific Management
Emphasis onscientific
determinatio in finding the
“one best way” for workers
to fulfill the jbs assigned to
them
Job motion study
Careful slection and
training of workers
Aimed for worker’s
productivity
Limited focus on
organizations
Henri Fayol
14 Principles of
Management
1. Division of work
2. Authority
3. Discipline
4. Unity of command
5. Unity of direction
6. Subodination of
individual interests
7. Remuneration
8. Centralization
9. Scalar chain
10. Order
11. Equity
12. Stability
13. Initiative
14. Esprit de corps
Mostly used in
organizing
activities
Adopted by most
of the managers
today
Max Weber
Bureaucracy
Ideal structure
Seen in many
large organization
Characterized by division
of labor, clear authority,
hierachy, formal selection
procedures, detailed rules
and regulations, and
impersonal relationshipds
Behavioral Management Theories
Elton Mayo
Hawthorne Studies
Pressure and acceptance
Focus is on social
nature of work
groups
Chester Barnard
Cooperative System
People’s needs must be
met, and managers must
facilitate communication
and encourage workers to
perform their best.
Attention to the
requiremens of
the job and the
needs of people
who must do them
Douglas McGregor
Theory X and Theory Y
It govern the manager’s
management style
Theory X: the workers are
lazy and hate work
(autocratic management is
adopted)
Theory Y: the workers will
do their best in their work
(participative management
is adopted)
Inspired today’s
mamagement
practices
Paved the way for
the ceration of
challenging jobs
Abraham Maslow
Hierarchy of Human Needs
Progression of five human
needs (physiological,
sfaety, social, esteem, self-
actualization)
Lower-level needs should
be staified before higher-
level needs
Understanding
and satisfaction
oof employees’
need fro their
motivation
Chris Argyris Theory of Adult Personality
Promotion of
better relations

Considerations on the
needs and capabilities of
mature adults
Expansion of job
responsibilities
Taak varieties
Adjusted supervisory styles
to allow more participation
Modern Management Theories
Various proponets of
management science
or operations research
(OR)
Quantitative Analysis and
Tools
Mathematical and
quantitative approaches to
production and operations
Useful in
manufacturing
and services
delivery
Includes value
chain analysis,
inventory
management,
quality control,
business process
analysis
W. Edward Deming
Total Quality Management
- Quality principles
- Continuous
improvement
Promotes quality
as vital strategy
for organizations
Joseph Juran
Plan-Control-Improve
Search of and commitment
to quality;
Cycle of quality
mamagement that
ensures
continuous
improvement of
tasks and
responsibilities
Peter Drucker
Knowledge Management
Importance of intellectual
capital to competitive
advantage
New information
as key for
technological
advancements
Peter Senge
Learning Organization
Continuous learning and
improvement of
organization members
Empahasis on
information
sharing,
teamwork, and
empowerment
Jeffrey Pfeffer
Robert Sutton
Evidence-based
Management
Decision based on hard
facts of what really works
Focus on
meaningful
reaserch for
management
insights and
reports of case
studies
Michael Porter
Competitive Strategy
Techniques for analyzing
indsutries and competitors
Provides features
for internal and
external
competitions and
among industries
FUNCTIONS OF A MANAGER
Manager
- The one who is mainly responsible and accountable for
accomplishing the specific goal or objectives of a particular group
or several groups.
Levels of Managerial Position
1. First-level Supervisor – manage the work of members who are
directly involved in the production of products and delivery of
services of the organization.
2. Middle Managers – manage the work of the supervisors or other
members of the organization. They are the division heads or
department heads, depending on the size and nature of the
organization.
3. Top Managers – the managers at the top level of the organization
manage the middle positioned as the organization and
accountabilities.
a. Chief Executive Officer (CEO)
b. Chief Financial Officer (CFO)
c. Board of Directors

Roles of a Manager
1. Interpersonal Roles
a. Figurehead
b. Leader
c. Liaison
2. Informational Roles
a. Monitor
b. Disseminator
c. Spokesperson
3. Decisional Roles
a. Entrepreneur
b. Disturbance Handler
c. Resource Allocator
d. Negotiator
Skills of a Manager
Skills – the ability to perform a specific task to achieve the desired results.
1. Technical Skills – the abilities or expertise to do the job required.
2. Human Skills – the ability to work well other people.
3. Conceptual Skills – the ability to think critically and analytically.
Module 4: THE FIRM AND ITS ENVIRONMENT
Forces in the Firm’s Environment
Political Forces
- It pertains to legal regulations, political orientations, government
policies, and compliance procedures of government bodies that
affect or control the operations of a firm.
Economic Forces
- It pertains to the economic relevant to the business. It includes the
factors such as employment rates, income levels, inflation rates,
savings and investment rates, insurance rates, and, monetary
policies.
Sociocultural Forces
- These are the people characteristics and lifestyles that impinge on
the operations of a firm. They pertain to social norms, customs, and
values.
Technological Forces
- The recent advancement in technology that lead to product
innovations, process improvements and integrated systems in the
manufacturing and service sectors. (RnD, digital technologies,
breakthroughs in medical science, and waves of inventions in
transportation and communication)
Natural Risks
- The adverse impacts of climate changes and global warming,
business establishments need to assess their exposure to natural
risks.
Environment Scanning and SWOT Analysis
Environmental Scanning – the process of assessing the internal and
external operating environment of a firm to analyze its strength,
weaknesses, opportunities, and threats (SWOT Analysis)
1. External Analysis – the opportunities and threats in the firm based
on the different forces in the environment. (competitors, buyers,
suppliers, and substitutes)
2. Internal Analysis – the strength and weaknesses of the conditions
inside the firm. (employees, capacities of resources, organizational
culture and team spirit)
The Local and International Business Environment of the Firm
✓ Competitive Advantage – the features or characteristics of a
business organization that enable it to perform better than rival
organization.
✓ Environmental uncertainty – the lack of complete information
about the current and future environment of the firm.
✓ Environment complexity – the presence of numerous factors
prevailing in the environment that change over time.

✓ Local Business Environment – the specific industry to which the
company belongs and directly deals with.
✓ International Business Environment – the business activities
performed by companies operating in foreign locations.
Understanding the Local Environment through an Industry Analysis
Industry – the group of companies offering the same or similar products or
services.
Porter’s Five Model Forces
Understanding the International Environment through Global
Management
✓ Global Management – the managemet of business and
organizations with operatons in more than one country.
✓ Global Business – the business environment that poses challenges
in adaptations to the cultures and business conudct in foreign
countries.
✓ Globalization – the growing interdependence to the growing
intedependence among people around the world.
Ways to Compete on Local and International Business
1. Competing by Lower Cost – the efforts of a company to lower its
production cost to enable it to offer a lower price relative to a
comepetitor.
2. Competing by Quality – offering unique or more desirable
features of a product or service.
3. Competing by Speed/Flexibility – faster delivery of the product r
service or quickly responsing to the needs of the customers.
4. Competing by Innovation – creating new products, new ways,or
new features of the products in order to be ahead of the
competition.
Expanding to International Business
1. Exporting - selling locally made products in foreign countries.
2. Importing –buying foreign-made products and selling them in
local markets.
3. Licensing – granting anotehr firm the right to make or sell the
former’s products, for a fee.
4. Franchising – granting another firms the rights to use the former’s
brand name and operating methods.
5. Joint Venture – pooling of resources among foreign and local co-
investors tooperate the business.
6. Strategic Alliances – involve local and foreign firms working
togetehr in specific ways tha benefits both parties.
Corporate Social Responsibility
- The business consciousness of their responsibility. It may be in
form of the following;
Industry Competitors
(rivalry among existing
firms)
Potentials
Entrants
(threat of
new
entrants)
Buyers
(bargaining
power of
buyers)
Substitutes
(threat of
substitute
prodcuts/se
rvcies)
Suppliers
(bargaining
power of
suppliers)

o Free medical and dental services to poor communities to
improve health;
o Cleaning up of clogged waterways and rivers to prevent
the incidence of flooding;
o Sponsoring sports tournament;
o Conducting free tarining on setting up livelihood project to
augment incomes;
o Complying fully with government regulations and
standards for business;
o Responding to consumers’ feedback;
o Using production methods that do not pollute the
environment nor harm the health of the people;
o Adopting energ conservation measures with the company.
Module 5: Planning and Its Nature
Planning - management function that focuses on the setting objective and
determining how to achieve those objectives.
Benefits of Planning
1. It sharpens focus.
2. It provides flexibility.
3. It provides coordination.
4. It tightens controls.
Types of Plans
Long-range Plans (strategic plans) – those that look at three or
more years into the future.
Short-range Plans – it covers a period of one year.
Operational Plans
o Standing Plans – used for situations that occur repeatedly.
It may be in form of;
▪ Policy – general/broad guide for the
actions/behavior of people in the workplace.
▪ Rule – more specific guide to actions/behavior in
the workplace.
▪ Standard Operating Procedure (SOP) – series of
action to be followed for a specific situation in the
workplace.
a. Pre-negotiation Process
b. Negotiation Process
c. Post-negotiation Process
Module 6: Planning at Different Levels of the Firm
Strategic Plans – developed by the top management of the company. The
top managers craft the vision-mission of the company because they reflect
the “heart and soul” of the firm.
Vision – the compelling future scenario desired for the company.
Mission – the guiding purpose of the company.
Functional Plans (Tactical Plans) – the plans are made at the
middle/supervisory management levels and being cascaded to the
different functional department.
Module 7: Planning Techniques and Tools
Forecasting – the use of scientific techniques to predict the likelihood of
certain events or factors to happen in the future.
Contingency Planning – the process of identifying alternative courses of
action courses of action in the event that unforeseen or uncontrollable
events takes place.
Scenario Planning – it involves predicting potential alternative events that
might happen.
Benchmarking – technique finding out what organizations are doing-well
and then incorporating those “best practices” into the operation of one’s
organization to improve its cost and effectiveness.
Module 8: Organizational Structure

Organizational Structure – the system of how tasks are to be allocated
who reports to whom, who has the authority, and what are the coordinating
mechanisms and interaction patterns to ensure that work is done.
Types of Organizational Structures
1. Functional Structure – member with similar skills are grouped
together.
2. Divisional Structure – members of the organization who are
grouped together on the same product, service, process, or serve
similar customers.
a. Product Structure – grouping of members and jobs is by
product/service.
b. Geographical Structure – grouping of members and jobs
is by location of activity.
c. Customer Structure – grouping of members and jobs is by
customers served.
d. Process Structure – grouping of members and jobs is by
related work process.
3. Matrix Structure - the specialists from specific functional
departments are assigned to work on one or more
interdisciplinary.
4. Team Structure – created to complete special project, to solve
problems, or to accomplish daily tasks.
5. Network Structure – formed by having a core of full-time
employees working together with outside partners who provide
support or supply services.
a. Task Force – formed in a temporary basis to accomplish a
complex task that involves a number of organizational sub-
units.
b. Committee – it composed selected members from
different background.
c. Collegial Form – composed of members from professional
backgrounds.
6. Virtual Structure – eliminates boundaries among units that
compose organization by using information technology, and the
Internet to communicate with members and accomplish specific
objectives.
Formal and Informal Organization
Formal Organization – they are officially created to accomplish
specific objectives.
Informal Organization – they are not officially created but are
freely formed by member who have a need for them.
Module 9: Organization Theories and their Business Application
Contingency Theory – the main concern was organizational effectiveness,
which they believe should be the theme of organization.
Resource-Based Theory – tells that resources within a firm that are
considered rare and which cannot be easily copied, duplicated, or
substitute provide the sustainable competitive advantage for the firm.
Stakeholder Theory – takes into account the needs of various stakeholders
of the organization.
Module 10: Delegation and Stages of Team Development
Delegation – a manager assigns and transfers duties, authorities, and
responsibility to his or her subordinates.
SMART Principles
Authority - the power and right conferred to a person to allocate resources,
make decisions, issue orders, or signed documents by virtue of his/her
position.
Responsibility
Accountability
Release
Stages of Development of a Team
Stage 1: Forming – getting-to-know you
Stage 2: Storming – arguing, competing, adjusting for status
Stage 3: Norming – cooperative, establishing norms
Stage 4: Performing – matures, handles complex challenges
Stage 5: Adjourning – task is completed and team breaks up

Classification of Teams
Teams for Functional Units – belongs to the different departments
or groups within an organization.
Teams for Leading Groups – people with responsibilities for
leading their organization and its members.
Teams for Advisory Purposes – set up to analyze problems and
propose recommendations to address those problems.
Subject: Organization and Management (4th Quarter)
Teacher: Mylene G. Almario
Time/Day: 1:00 – 3:00| T_Th
Module 11: STAFFING
The determining of number people with the right skills for specific
units in the organization, getting the right applicants for the vacant
positions, and selecting the right candidate for the job.
It starts with human resource planning.
Human Resource Planning
It done to achieve the organization’s vision, mission, overall
direction and strategies.
It starts by knowing the business objectives of the company and
their impact on each of the different department.
Responsibility for Staffing
1. Line/department managers also share in staffing responsibilities.
2. The department manager and the HRM meet to discuss how they
are going to forecast the human resource needs for their respective
department.
3. The HRM and the department manager try to match information
with an inventory of available current personnel.
4. The HRM and the department prepare a plan such as training and
development, potentials etc.
The Foundation of Staffing: Job Analysis
1. Job Analysis
The collection and analysis of all relevant information and facets
about a job that is done in a systematic and orderly manner.
2. Job Description
The formal statement pf the relevant tasks, duties, and
responsibilities that job entails.
3. Job Specification
The lists of qualification needed for the job such as skills, abilities,
education, experience, and personality.
RECRUITMENT
The process of getting and attracting a pool of qualified applicant
to fill a vacant job position. The goals of recruitment are;
o To attract the qualified applicants;
o To encourage the unqualified applicant to voluntary,
withdraw from the application to make the review process
easier.
Employment Policies and Potential Strategic Issues
1. Hiring regular employees.
2. Hiring fulltime or part-time employees.
3. Hiring through an independent contractor an employment agency.
Typical Steps in Recruitment Process
1. Advertise the Job Vacancy
a. Internal recruitment – giving priority to applicants from
current personnel of the organization. The sources for
internal recruitment;
i. Job posting in company website and bulletin;
ii. Internal recruiting database;
iii. Employee referrals;
iv. Recruiting former employees and applicants.
b. External recruitment – opening the job positions from
outside the company. The sources for external recruitment;
i. Media resources;
ii. Schools, colleges, and universities which may post
job advertisement within their schools or may hold
job fairs;
iii. Job search engines that use the Internet;
iv. Company websites;
v. Labor unions;
vi. Employment agencies.

2. Screen Applicant to Create a Short-list of Candidates
a. Reviewing of application forms and resumes;
b. Separation of basic job requirements;
c. Create a short-list of job candidates;
3. Conduct a Background Check
a. Reference and background check for the short-list
candidates;
b. Verification of documents;
c. Feedback from former employees;
d. Phone interview.
4. Contact Potential Candidates for Preliminary Interviews
a. Contacted and preliminary interview will be arranged;
b. Observation of the candidate’s communication skills and
knowledge about the job;
c. Expectation to the job of the applicant.
Practical Tips for Job-seekers
1. Know more about the company.
2. Identify potential interview questions and practice your
answer to those.
3. Dress in office attire.
4. Arrive on time for the interview.
5. Refine the Short-List of Applicants
a. The qualified candidates will be refined and narrowed
down.
b. New short-list of candidates will undergo the selection
process.
SELECTION
The process of choosing the individual to hire from a pool or short-
list of job applicants.
The Selection Process
1. Conduct Further Interviews
a. Behavioral interviews – the applicant about his past
behavior in a work environment.
b. Situational interviews – the applicant will ask the
applicant how he or she in a specific work situation.
2. Administer Employment Tests
a. Reliability – applicant’s responses even if the tests are
conducted several times.
b. Validity - the test will measure the applicant’s job
performance.
c. Actual demonstration – skills relevant to the topic.
d. Work samples – illustration of his or her actual
capabilities.
3. Offer to Hire the Chose Applicant
a. Chose the candidate to hire.
b. Offer a job for the chosen applicant.
c. Discuss the compensation rate and other benefits, tenure of
the job, starting date for work, and other relevant work
arrangements.
TRAINING
To orient new employees in the workplace;
To develop the skills of employees;
Enhance teamwork in the job.
Forms of Training
1. Employee Orientation Program (induction training) – aim to
introduce the new employee to the job setting.
2. Skills Training and Competency Enhancement Program –
enabling employees to learn necessary skills required to perform
a job or enhance competencies to achieve a higher work
performance.
3. Team Building Program – developing the team spirit among
employees and across units and departments of the company.
4. Coaching and Mentoring
a. Coaching – one-on-one training wherein an experienced
person provides advice to another person to improve the
latter’s work performance.
b. Mentoring – the senior or more experienced staff or
manager gives regular training or advice to a younger or
less experienced staff.
5. Career Development – continuing process of the career of the
personnel within the company.
6. Succession Planning – identifying and developing the potential of
internal staff to fill leadership position in the company.

Compensation Policy
The set of general guidelines established by the top management
of a company in paying and rewarding employees for the work they
rendered.
It attracts applicants, motivate employees and retain them in the
long run.
Management Consideration in a Compensation Policy
1. Economic – capacity to maintain a cost structure that enables a
company to complete effectively and efficiently in its markets.
2. Fairness – the fair must be equitable and fair as perceived by the
employees.
a. Internal Equity - employee perceives fairness in pay
differentials among the different jobs within their
organization.
b. External Equity – employee perceives fairness relative to
others holding the same or comparable jobs outside the
organization.
c. Individual Equity – employee perceives fairness in pay
differentials among co-workers holding identical jobs
within their organization.
Consideration on Compensation Policy
1. Market Competitiveness – the company will adopt employee
salary levels based on the market rates prevailing in the industry in
order to provide a compensation package that is attractive to
current and potential employees.
2. Link with Company Performance – the company that continually
experiences high financial growth for many years is expected to
increase the compensation of its employees.
Components of Compensation
A. Direct Compensation – it was based on the extent of work actually
rendered by the employee.
a. Base Pay – the first and largest component of employee
compensation.
i. Salaries – computed on a fixed, monthly basis.
ii. Wages – computed on an hourly or daily basis.
b. Incentives – given additionally to employees apart from
the base pay.
i. Bonus – it may be monthly, quarterly, semi-
annually, depending on the policy of the company
and its profitability status.
ii. Commissions - payments to employees as a
percentage of a quantity of output that they have
produced or sold.
iii. Profit sharing arrangement – given to employees
based on the outcome of company profitability
rates.
iv. Stock options – stock ownership arrangements
given to employees as additional
compensation/reward for a high performance.
v. Merit increase – compensation given to
individuals who have performed exceptionally
well.
B. Indirect Compensation – it was based on the compliance with the
law or as optional benefits.
a. Legally Acquired Benefits – these are the government-
mandated compensation.
b. Optional Benefits – these are based on the policy and
decision of the top management.
Rewards
a. Extrinsic Rewards – monetary or material rewards.
b. Intrinsic Rewards – non-monetary rewards.
Performance Appraisal an Employee Relations
Performance Appraisal
The evaluation of employee’s performance to provide meaning
information to assess individual needs for improvement, and for the
organization to plan for the future.
o Performance management
o Performance evaluation
o Performance measurement
Purposes of Performance Appraisal
1. Development Process
a. Facilitate employee development;

b. Enhance employee motivation.
2. Strategic Purposes
a. Establish link between the tasks and activities of an
employees and the organization;
b. To undertake research.
3. Administrative Process
a. Determine appropriate rewards and compensation;
b. Undertake decision on employee movement.
Policy Decision in Performance Appraisal
Who Evaluates;
The supervisor, peers/co-workers, self, subordinates, and
clients.
What to Evaluates;
Traits-based measures
Behavior-based measures
Results-based measures
How to Evaluates;
It can be in written questionnaires, online surveys, or customer
feedbacks.
When to Evaluates;
It depends on the company rules.
Employee Relations (Labor-management relations)
The company efforts to enhance and maintain harmonious, peaceful
and productive relations between the management and its
employees.
Labor Unions
Formal association formed by workers within a organizations as a
vehicle for promoting and protecting employees.
Collective Bargaining
The meeting and negotiation between the management and
employees.
Employee Movements
1. Promotion - upward/vertical movement of the employees.
2. Separation – termination of employment of personnel by the
employer. It may be voluntary or involuntary.
3. Retirement – ending the employment of a regular personnel who
reaches the retirement age.
4.
Module 12: LEADING
The ability and the process of influencing others to make them
understand what needs to be done and to work at them to
accomplish the shared objectives.
o Formal Leadership – the influence over other people
because of a person’s appointed or elected position.
o Informal Leadership – the influence over other people not
because of a person’s, but due to his/her special skills
/qualities as a person.
Nature of Directing
It comes after the completion of planning and organizing functions.
It important to know the essential factors to successfully direct other
people’s actions and behavior.
1. Clear Vision and Objectives
Where the organization should go.
2. Leader-Follower Relationship
Maintaining good working relationships between leader
and member.
3. Influence of Persuasive Power
The persuasive power to influence other people to act in a
certain way.
Power – ability to influence other people to do something
that you want them to do.
o Expect Power – leader in his/her skills,
competence, or specialized knowledge.
o Referent Power – leader gains the trust of his/her
member.
Trait Perspective and Behavioral Perspective to Understanding
Leadership
Trait Perspective on Leadership
1. Ambition – clear sense of what to achieve in one’s life.
2. Motivation – inner drive and energy to accomplish an
objective.
3. Honesty – high sense for truth, transparency, and integrity.
4. Self-confidence – strong belief on one’s inner strengths and
capabilities to get a job done or to achieve a target goal.
5. High Need Achievement – commitment to excel or to excel a
worthy goal.

Behavioral Perspective on Leadership
1. High performing leaders – leaders are more productive have
accomplished a greater number concrete output/project
deliverable to the company.
2. Low performing leaders – leaders have produced concrete
output, but they have maximized opportunities to produce more for
the company.
Differences between Leading and Managing
Leader Manager
More concerned in setting a
direction for the organization in the
long-term;
Highly focused crafting strategies;
Strives to empower others;
Mostly inspires people
More concerned with short-term
challenges in the workplace;
Highly focused on implementing
strategies
Strives to accomplish tasks;
Mostly direct people
Leadership Styles
To pertains to those recurring or relatively consistent patterns of
behavior shown by leaders when they go about doing their work.
Leadership Grid – is a graphic portrayal of a framework for
classifying leadership styles.
o Concern for production – focused on accomplishing tasks
or giving priority to profits and results.
o Leader’s concern for people – focused on accommodating
or giving priority to people’s needs.
Five Resulting Leadership Styles
1. Impoverished Management – leader has low concern for
employee satisfaction and work deadlines.
2. Task Management – leaders are more concerned about
production and have less concern for people.
3. Middle-of-the-Road – leader tried to maintain a balance between
of company and the needs of people.
4. Country Club – leader gives thoughtful attention to the needs of
people.
5. Team Management – leader feels that empowerment,
commitment, trust, and respect.
Types of Leadership Styles (Based on the Leadership Grid)
Autocratic style – task management/dictatorial style.
Human relation style – country club/collegial style.
Laissez-faire style – improvised managerial style.
Democratic style – team management style.
Middle-of-the-road style – balancing.
Additional Types of Leadership
1. Charismatic – leadership of those exceptional figures whose
personal qualities and abilities make them capable of having
profound and extraordinary effect on their followers.
2. Transactional leadership – the leader-follower relationship borne
out of routine accomplishment of tasks and activities in the
workplace.
3. Transformational leadership – the leader-follower relationship
that goes beyond routine accomplishment of tasks and activities.
Informal Leadership
It can be found in informal organization, in which the highest
amount of influence and status is ascribed to an informal leader.
Module 13: MOTIVATION THEORIES
Motivation
The internal needs and drives of a person that gives direction to
his/her behavior and determines the level of energy and effort that
he/she puts in his/her work.
Law of Individual Differences – belief that each person is
different from others.
Selective perception – person’s views become filtered by his/her
own beliefs, values, backgrounds, experiences, expectations.
Nature of Motivation
1. Intrinsic – the work behavior is being performed for its own
inherent value.

2. Extrinsic – work behavior is being performed to acquire some
reward, which may be material or social in nature.
Theories of Motivation
Needs Theories
o Maslow Hierarchy of Needs – it assumes that individuals
should satisfy first the physiological needs at the bottom of
the hierarchy proceeding to the next level.
▪ Physiological needs – food, water etc.)
▪ Safety needs – protection from the harm from the
environment.
▪ Security needs – stability in work.
▪ Esteem needs – need to be with people.
▪ Self-actualization – be possible can be.
o Alderfer’s ERG Theory – individuals have unfulfilled
needs that form different levels existence.
▪ Existence – physiological and safety needs.
▪ Relatedness – interpersonal relationships.
▪ Growth – individual development needs.
o Herzberg’s Two-factor Theory
▪ Maintenance factors – potent dissatisfiers and can
cause negative feelings to employees.
• Status;
• Relation with supervisors, peers, and
subordinates;
• Quality of supervision;
• Company policy and administrations;
• Job security;
• Working conditions;
• Pay.
▪ Motivational factors – the real satisfiers, and
therefore can motivate people in the workplace.
• Work itself;
• Achievement;
• Possibility of growth;
• Responsibility;
• Advancement;
• Recognition.
Behavior Modification Model – focus on the external
environment that influences employee behavior, particularly in
administering rewards and punishment.
o Law of effect – maintains that a person will likely repeat a
certain behavior if it is accompanied by favorable
consequence, and that a person will likely not repeat a
certain behavior if it is accompanied by an unfavorable
consequence or lack of consequence.
Goal Setting Model – focus to the actions of individuals in the
workplace.
o Goal acceptance –goals must accept by the employees.
o Goal specificity – goals must specific, measurable, and
clear to the employees.
o Goal challenge – goals must be stimulating and
challenging enough to motivate employees to work on
them.
Expectancy Model – an approach to motivation by making
employees aware on their work expectation.
o Valence – the strength of a person’s preference for an
outcome.
o Expectancy – the strength of belief that one’s effort will be
successful in accomplishing a task.
o Instrumentality – the strength of belief that successful
performance will e followed by a reward.
Equity Model – the balancing of employee’s effort and the rewards
that he/she gets for it.
o Manager must ensure fairness in rewards and
compensation systems.
o Managers must adopt transparent procedures in
formulating policies on rewards and compensation system.
o Managers must adopt an appropriate performance
appraisal system.
o Managers must ensure a mechanism for grievance
system to ensure that worker’s complaints about
compensation are heard and addressed.

Module 14: COMMUNICATION AND COORDINATION
COMMUNICATION
The process of sending and receiving a message that contains a
meaning and purpose intended for a specific audience.
Top managers must communicate to the department heads and to
all organizational members the mission, vision, values, and
strategies.
Middle managers and those supervisory roles communicate to
employees on how to perform their work properly and efficiently.
Elements of Communication
1. Sender – the source of an ideas that is intended to conveyed or
delivered to another person/group.
2. Message – the specific idea that the sender wants to transmit to the
receiver.
3. Channel – method or medium for transmitting the message.
4. Receiver – the target audience of the message transmitted by the
sender.
5. Effect – the intended outcome/result that the sender has in mind
for transmitting the message.
Barriers to Communication
1. Physical barriers – noise, physical walls, impaired hearing
capability, or physical interference dur to natural disasters.
2. Personal barriers – elements that prevent the transmission of the
message due to the person’s mood, emotions, and personal
background.
Directing People through Non-verbal and Verbal Communication
Non-verbal Communication
The facial expressions, body movements, eye contact and other
subtle physical sign that reveal some inner feelings or emotional
state of a person.
Verbal Communication – the oral and written communication.
COORDINATION
The linking with the sperate units of an organization for the purpose
of achieving a shared objective.
Type of Coordination
1. Cross-functional coordination – managers coordinate with head
of the other department.
2. Hierarchical coordination – the different layers of management
coordinate with each other to supervise and monitor the
performance and outputs of all the members in the organization.
Methods of Coordination
1. Personal Methods – it maybe in form of direct contact, face-to-face
interaction, use of emails, phone calls, video conferencing, text
messages, social media, and other forms of interpersonal
communication.
2. Impersonal Methods – it maybe in form of established systems
and procedures, policies, manuals, management information
systems, and budget control systems.
Module 15: MANAGEMENT OF CHANGE, DIVERSITY AND
ORGANIZATIONAL CULTURE
Dimension of Change
1. Content – the topic or subject of change (office location, change in
leadership, change in operational systems and procedures).
2. Process – the approach or manner in which change is introduced
or implemented.
3. Pace – the speed of effecting the change.
Complex Nature of Change
1. Planned change – it occurs in purposive effort to address a
performance or deviation.
a. Minor change – little effect on company performance.
b. Major change – substantial or significant effects on
company performance.
2. Unplanned change – it occurs spontaneously or randomly without
someone directing.

3. Transformational change – involves the development of
organizational structure, processes, and people to ensure a change
in organizational culture.
Workforce Diversity
The mx of people working within in a company who are different
in respect to age, gender, race, ethnicity and physical capabilities.
Organizational Culture
The shared assumptions, shared beliefs, shared practices, and
shared values among members of an organization.
Elements in Shaping the Company
1. Company policies and guidelines.
2. Customs and traditions
3. Office physical arrangements
4. Leadership or management styles
Cross-sectional Management: Filipino Culture and Foreign Culture
Cultural Intelligence (CI)
The process of knowing how to easily adjust to people from those
areas.
Module 16: Management Control Methods and Systems
CONTROLLING
The management function that pertains to design and
implementation of systems, approaches, and procedures that
measure performance against plans or standards, help solve
problems or prevent the, from occurring, and ensure that the
desired objectives and results are achieved.
The Link Between Planning and Controlling
Without controlling, the other three management functions have no
use at all. This is because one cannot know if things are going well
as expected.
Control Systems
The systems used to gather information on the difference an actual
output and the desired output.
Steps in Control Systems
Control Methods
The specific tools and techniques used to ensure that performance
standards are met.
o Statistical Process Control – commonly used in
Operations Department.
o Total Quality Management – the adoption and
application of quality principles throughout the
organization.
Application of Control Methods
1. Accounting Control
It used for the keeping financial records and preparing financial
reports.
Standards
•Establish standards for perfromance.
Monitor
•Monitor the performance.
Evaluate
•Evaluate the performance.
Act
•Do the required action.
Communicate
•Communicate the results.

o Accrual accounting method – recognizes both income
and expenses at the time they earned or incurred, and not
when the cash is actually paid.
o Cash accounting method – recognizes financial
transaction only when there is cash actually paid or
received by the company.
2. Marketing Control
o Customer relationship management (CRM) –
supported by special software that track information on
customer behavior, wants, and preferences.
3. Feedforward Control
o The preventive control that are established before the start
of work activities.
o Solve problems before they occur.
4. Concurrent Control
o It established during the actual implementation of work
activities.
o Solve problems while they are occurring.
5. Feedback Control
o It established after the work is completed.
o Solve problems after they occurred.
6. Supply Chain Management
o It links all operation within the company that deal with
suppliers.
7. Manuals
o The document for instructions, procedure and policies.
Module 16: INTRODUCTION TO THE DIFFERENT FUNCTIONAL
AREAS OF MANAGEMENT
HUMAN RESOURCES MANAGEMENT
The collection of programs, practices, and policies concerned with
developing, motivation, transforming, and maintaining the
workforce to achieve the organization’s objectives.
a. Traditional Human Resource Management – performs
the clerical and administrative functions pertaining to
employee concerns.
b. Strategic Human Resource Management – they facilitate
the execution of the organization’s strategies.
MARKETING MANAGEMENT
The systematic and consistent efforts to attract customers and keep
them through effective delivery and communication of the value of
the product or service from the customers’ point of view.
o Market – the physical location where buyers and sellers
are gathered to buy and sell products and services.
Tasks and Functions of the Marketing Management
1. Analysis of Target Market, Positioning, and Segmentation
(Market Research)
a. Market Segmentation – classifying groups of people
according to geographic, demographic, psychographic,
and behavioral differences.
b. Target Market – identifying which segment presents
greatest opportunities.
2. Analysis of Value Proposition for Products and Services
a. Value Proposition – the benefits of the products or service
that are communicated to target customers.
3. Design and Delivery of the Marketing Mix: the 4P’s
a. Product - offering the customers the specific features and
qualities of the product or service that they prefer.
b. Price – the pricing decisions and strategies to market
company product or services.
c. Place – the locating the target markets, choosing the
marketing channels, and the mode and timing of delivery.
d. Promotion – marketing strategies to attract customers to
buy the company products and services such advertising,
offering product samples, and giving discounts.
4. Analysis of Marketing Channels
a. Marketing channel – the means through which the target
market is reached.
i. Communication channels – media
ii. Distribution channels – used to display, sell, or
distribute the products or services.

iii. Service channels - the transportation companies,
banks, and insurance companies.
5. Analysis of Competitors – involves a systematic of strategies and
strategies for timely delivery of right products and services to
target customers.
OPERATIONS MANAGEMENT
The processes, approaches and strategies in the production system
involving the transformation of inputs into finished goods and
services.
This department handles the responsibility of improving the
production system in terms of quality, efficiency, and
responsiveness to customers.
a. Production system – system for acquiring inputs,
converting them into outputs, and then distributing the
outputs.
b. Operational manager – the responsible for managing the
organization’s production systems in terms of quality.
i. Acquisition of inputs
ii. Control of conversion processes
iii. Distribution of goods and services
FINANCIAL MANAGEMENT
The activities and strategies related to procurement and utilization
of funds that seek to maximize the profits of the company.
a. Capital Determination, Balanced Capital Structure,
and Funds Sourcing – the financial manager estimates the
capital requirements of the company.
b. Management of Cash – the financial manager handles and
decides on the cash outlays of the company.
c. Financial Control – regular monitoring and analysis of the
financial health of the company.
MATERIAL AND PROCUREMENT MANAGEMENT
The sourcing, planning, and management of the supplies required
by business activities/project of the company.
a. Materials requirement planning (MRP) – identifying,
quantifying, and scheduling the acquisition of materials and
equipment needed at specified periods corresponding to the
production schedules.
b. Preparing Guidelines for Supplier Selection – develops
policies, procedures, and guidelines for selection of suppliers
and procurement of materials.
c. Purchasing supplies and materials – actual procurement of
specific supplies and materials for the identified project of the
project.
OFFICE MANAGEMENT
The planning, coordination, management, and supervision of the
administration of the company.
a. Delineating Responsibilities and Work Load of Staff –
assigning the specific responsibilities of the administrative
staff.
b. Maintaining Orderliness – maintaining the well-being
and orderliness of the company.
c. Customer Relations - ensures that customers and guest
who visit office are greeted courteously and are well
attended.
INFORMATION AND COMMUNICATION TECHNOLOGY
MANAGEMENT
a. Information and Communication Technology (ICT)
management – involves the planning, coordination,
maintenance, and control of the computer usage for business
operational.
b. Development of ICT Capabilities – developing the
capabilities for using ICT for business operations.
c. Maintenance of Computer Hardware, Software – the
physical and technical maintenance of computer technology.
d. Assessment of Staff Capabilities of Technological System –
the analysis of company-wide staff and training required to
enhance and update the company’s ICT systems.
Module 17: SPECIAL TOPIC IN MANAGEMENT
ENTREPRENEUR
A person who establishes a business by identifying a need or
opportunity to exploit, and takes on the responsibility and financial
risk for owning and operating the business.
o Identifies business opportunities

o Market plans and decisions
o Invest time, efforts, and money
o Takes calculated risks
o Introduces innovation and change
o Earns profits and develops society
Starting Up Your Business
1. Identify and select a business opportunity
2. Prepare a business plan – document that contains the goals, plans,
strategies, and resources of a business.
a. Marketing aspects
i. Market research to determine the demand for the
product or services;
ii. Feasibility of the business;
iii. Analysis of competitors, market shares, sales
volumes, and selling prices.
b. Technical/production aspects
i. How to make product or services, the sources and
costa for materials;
ii. Quality features, and operating processes and their
costs.
c. Financial aspects
i. Determining the sales revenues;
ii. The costs and expenses in producing the product
or service;
iii. The means of financing;
iv. Analysis of profitability of the venture;
v. Cash flows and the balance sheet.
d. Organizational aspects
i. Legal forms for business;
ii. Organizational structure and personnel
requirements for the business;
iii. Roles and responsibilities of manager and staff;
iv. Location of the business office,
manufacturing/production plant and sales outlets.
3. Finance Your Business
4. Register Your Business
Forms of Business and How to Register
Legal Forms of
Business
How and Where to Register
Single Proprietorship
Apply for a business name and registration at
the DTI;
Get a barangay clearance and apply for
mayor’s permit;
Apply for TIN at the BIR;
Secure SSS for your business and for yourself
as an employee or self-employed individual.
Partnership
Register with the Securities and Exchange
Commission (SEC);
Submit other documents same as in a sole
proprietorship;
Get a mayor’s permit.
Corporation
Get a Certificate of Registration from SEC;
If you employ at least five (5) workers.
Register your business in DOLE;
Secure SSS for your business and for yourself
as an employee or self-employed individual;
Register your business with Pag-IBIG Fund,
naming yourself and your business as
member of the fund;
Register your business with PhilHealth. You
workers should also be members.
Cooperative
Register at the Cooperative Development
Authority (CDA);
Get a mayor’s permit.

Stages in Setting up a Business
Growth of a Family Enterprise
1. A family member sets up a small business;
2. Children of the owners of the family enterprise join the family
business;
3. Children of the owners of the family enterprise assume over the
family business;
4. Second-generation family members continue to build family
enterprise;
5. Third-generation family members continue to build family
enterprise;
Small Business Enterprises in the Philippines
Magna Carta for Micro, Small and Medium Enterprise (RA
6977) – promotes entrepreneurial spirits among Filipinos by
providing government support.
o Micro enterprises - assets value of not more that P3,
000,000.
o Small enterprises – assets value of from P3, 000, 001 to
P15, 000, 000.
o Medium enterprises – assets values of from P15, 000, 001
to P100, 000, 000.
Go Negosyo Act (RA 10544) – it helps the business application,
training, and fund support of small and medium enterprises.
Barangay Micro Business Enterprise Act (RA 9178) – provide
additional support to micro enterprises.
o Tax exemption
o Access to credit
o Technology transfer
o Exemption from coverage of Minimum Wage Law
References:
Covey, Stepgen R. (2004). The 7 Habots of Highly Effective People:
Powerful Lessons in Personal Change. New York Free Press. New York
DeNisi, Angelo S. and Griffin, Ricky W. (2012). Human Resource
Management. Cengage Learning Asia. Philippines
Jones, Gareth R. and George, Jennifer M. (2007). Essentials of
Contemporary Management. Mc-Graw-Hill. New York
Quero, Rachel A. (2017). Organization and Management. Diwa
Learning Systems Inc. Makati City.
Carol, Arcjie B. “The Pyramid of Corporate Social Responsibility:
Toward the Moral Management of Organization Stakeholder”, Business
Horizons. 1991.
Cooperative Development Authority
Department of Labor and Employment
Department of Trade and Industry
Philippine Statistics Authority
Securities and Exchange Commission
The Philippine Insider
Identify and
select a business
opportunity
Prepare a pre-
feasibility studies
Prepare a
business plan
Finance your
business
Determine leal
structure for your
business
Register your
business

Organization and management

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