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3 / 1 / 2 0 X X S A M P L E F O O T E R T E X T 1
Management is the process of designing and maintaining
an environment in which individuals working together in
groups efficiently accomplish selected aims.
Management is an important factor for the success of any
organized activity.
Management is an art of getting things done through
others.
MANAGEMENT

Management is to plan, organize, direct and control
the resources of the organization for obtaining
common objectives or goals.
The knowledge of management theory and practice
enables managers to take more realistic view about
organizational and social problems and to find out
their effective solution.
MANAGEMENT

1) According to Taylor: - “Management is the art of
knowing what you want to do and then seeing that
it is done in the best and cheapest way.”
2) According to Lawrence: - “Management is the
accomplishment of results through the efforts of
other people.”
3) According to Henri Fayol: - “To manage is to
forecast and to plan, to organize, to co-ordinate
and to control.”
MANAGEMENT

Controlling
Planning
Organizing
Staffing
Leading

Planning It includes forecasting, formation of
objectives, policies, programs, procedure, and
budget. It is a function of determining the
methods or path of obtaining their objectives. It
determines in advance what should be done, why
should be done, when, where how should be done.
This is done not only for organization as a whole
but also for every division, section, and
department. Planning is thinking before doing.

Organizing It includes departmentalization, delegation
of authority, fixing of responsibility and establishment
of relationship. It is a function of providing everything
useful to the business organization. There are certain
resources which are mobilize i.e., man, machine,
material, money, but still there are certain limitations on
these resources.

A manager must design and develop a structure of
various relations. This structure, results from
identification and grouping work, delegation of
authority and responsibility and establishing
relationship.

Staffing It includes manpower planning, recruitment,
selection, placement, and training. People are basically
responsible for the progress of the organization. Right
man should be employed for right job. It also involved
training of personnel and proper remuneration.

Directing It includes decision making, supervising, and
guidance. It reflects providing dynamic leadership. When the
manager performs these functions, he issues orders and
instructions to supervisors. It also implies the creation of a
favorable work, environment motivation, managing managers,
managing workers, and managing work environment.

Controlling Involves evaluating and if
necessary, correcting the performance of the
individuals or work groups or teams to ensure
that they are all working toward the previously
set goals and plans of the organization.

3 / 1 / 2 0 X X S A M P L E F O O T E R T E X T 1 5

• Initiative: This refers to a personal quality of
employees to show willingness to get things done
and to carry out their responsibilities without being
forced or ordered.
• Equity: This is called the “principle of equal
treatment” which suggests that everyone in the
organization should be treated equally and live in
an environment of kindness.

• Scalar chain: This is a “principle of chain of
command” that says there should be a
communication process from the top level of
management to the lower level or communication
generally flows from top to bottom.
• Remuneration of personnel: This principle refers
to the monetary and non-monetary remuneration
based on the quality of performance levels in an
organization.

• Unity of direction: This is a principle of
one team-one goal.
• Discipline: Employees should observe
the culture of discipline inside the
organization through respect and
obedience of the policies, rules and
regulations.

• Division of work: This is the principle of synergy.
Employees should be given responsibilities based
on their skills and interests to make them more
effective and efficient.
• Authority and responsibility: There must be a
balance between authority, the right to give
commands and make decisions and the
responsibility which is the obligation of an
employee to perform the tasks assigned.

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Functions, Roles,
and Skills of a
Manager

Leader- one who possesses good leadership
qualities or a combination of good moral character,
strong professional will, humility that builds enduring
greatness, and commands loyalty and respect
among subordinates.
Liaison- one who can maintain unity of action in the
organization.
Figurehead- one who has nominal leadership but
without real power, as this power is possessed only
by the company’s President/Owner.

Spokesperson- one who speaks in the name and
behalf of another; as on behalf of the company
President/Owner.
Monitor- regularly seeks out information related to
your organization and industry, looking for relevant
changes in the environment. You also monitor your
team, in terms of both their productivity and their
well-being.
Disseminator- to whom you communicate potentially
useful information to your colleagues and your team.

Entrepreneur- as manager you create and control
changes within the organization, by means of solving
problems, generating new ideas and implementing
them.
Disturbance handler- when an organization or team
hits an unexpected roadblock, it’s the manager who
must take charge. You also need to help mediate
disputes with in it.

Resource allocator- You’ll also need to determine
where organizational resources are best applied. This
involves allocating funding, as well as assigning staff
and other organizational resources.
Negotiator- you may be needed to take part in, and
direct, important negotiations within your team,
department or organization.

MANAGERIAL SKILLS
Conceptual skills enable managers to think of
possible solutions to complex problems. Through
their ability to visualize abstract situations, they
develop a holistic view of their organization and its
relation to the wider external environment
surrounding it. Top-level managers must have these
conceptual skills in order to be successful in their
work.

MANAGERIAL SKILLS
Human skills enable managers in all levels to relate
well with people, Communicating, leading, inspiring,
and motivating them become easy with the help of
human skills. Dealing with people, both in the
organization’s internal and external environment, is
inevitable, so it is necessary for managers to develop
these human skills.

MANAGERIAL SKILLS
Technical skills are also important for managers for
them to perform their tasks with proficiency with the
use of their expertise. Lower-level managers find
these skills very important because they are the ones
who manage the non-management workers who
employ varied techniques and tools to be able to yield
good quality products and services for their company.

Business Environment refers to the factors or
elements affecting a business organization. It may be
divided into External and Internal Business
Environments. The environment in which a business
operates is a major consideration in determining an
organization’s design or structure.

Suppliers are those who ensure the
organization’s continuous flow of needed
and reasonably priced inputs or materials
required for producing their goods and
rendering their services.

Politico-legal situations refer to
national or local laws, international
laws, and rules and regulations that
influence the organizational
management.

Demographic situations such as gender,
age, educational level, income, number
of family members, geographic origin,
etc., may also influence some managerial
decisions in organizations.

The Technological situations of companies involve the use
of varied types of electronic gadgets and advanced
technology such as computers, robotics, microprocessors, and
others that have revolutionized business management; e-
commerce, teleconferencing, and sophisticated information
systems have rapidly changed the ways that business is
conducted in the 21st century.

World and ecological situations are
related to the increasing number of
global competitors and markets, as well
as the nature and conditions of the
changing natural environment.

LOCALAND INTERNATIONAL BUSINESS
ENVIRONMENT OF A FIRM

LOCALAND INTERNATIONAL BUSINESS
ENVIRONMENT OF A FIRM
Currency exchange product- the rate at which central
banks will exchange the country’s currency for another
Cultural intelligence is an individual’s ability to favorably
receive and adjust to an unfamiliar way of doing things. This
will enable them to develop their ability to accept and adapt
to different cultures, both local and international, that may
affect the organization to which they belong.

Cultural Intelligence

The Five Cultural Dimensions
Power Distance- the degree to which a society
accepts or rejects the unequal distribution of power
among people in organizations and the institutions of
society.
Uncertainty Avoidance- the degree to which society
is uncomfortable with risk, change, and situational
uncertainty.

Individualism-Collectivism- the degree to which a
society emphasized individual accomplishments versus
collective accomplishments.
Masculinity-Femininity- the degree to which a society
values assertiveness and feelings of material success
versus concern for relationships.

Time orientation- the degree to which a society emphasizes short-term thinking
versus greater concern for the future or long-term thinking
• The Americans who are risk-takers, prefer short-term thinking. On the
other hand, Filipinos and the Japanese, who are not risk-takers, are
long-term thinkers.
• The local culture of a particular country also influences the
management practices of firms. An example is the mañana habit
which is practiced by some Filipino workers. It is counterproductive
since it encourages the postponement of performing tasks that can be
done immediately to another day.

Ways to analyze Business Environments:
PEST and SWOT Strategy
1. Political, Economic, Social, and Technological Analysis (PEST)
helps you determine the impact of environment factors or conditions to the long-term performance and
activities of the business.
The outcome of this analysis is best used with another analytical tool called SWOT.

1. Strength, Weakness, Opportunity, and Threat
Analysis (SWOT)
Threat and opportunity are used to analyze
environmental factors or conditions External to the
firm.
Strength and Weakness are used to analyze
environmental factors or conditions Internal to the firm.

The elements are as follows:
• Strength – kind of resource or capability that gives the organization an
advantage over its competitors in selling goods or services.
• Weakness – lack of resource or capability that makes the company
vulnerable to competition.
• Opportunity – a development that is favorable to the operations of the
company and will most likely improve its performance and prospects.
• Threat – an unfavorable development in any element in the general
environment which can slow down the development of the company.

Forms and Economic Roles of Business
Organizations
Organization is a collection of people working together to achieve a
common purpose (Cabrera, Altajeros and Benjamin 2016).
Business organization is a collection of people working together to
achieve a common purpose in relation to their organization’s mission,
vison, goals, and objectives sharing a common organization
structure.
Organizational culture, this is a set of beliefs and values shared by
organization members which guide them as they work together to
achieve their common purpose.

Forms Business Organizations
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 More Expensive and Complicated to Organize
 Double Taxation
 More Extensive Government Restrictions and Reporting
Requirements
 Employees Lack Personal Identification with and
Commitment to Corporate Goals



4. COOPERATIVE
 Business or organization that is owned and controlled by the
people who use its products, supplies or services. The co-op
owns the assets of the business itself. The members purchase
shares and elect a board of directors and officers. They have
equal amounts of democratic control and share the profits or
earnings. The co-op exists to fulfill a common need of its
members, such as improved services or access to unobtainable
supplies.

ADVANTAGES OF COOPERATIVE
 They are easy to form with a minimum of 10 adults and
have limited liability.
They give equal status and democratic control to each
member, who can also access various resources and
services.
They motivate employees and improve their performance,
as they are also the owners of the business.

ADVANTAGES OF COOPERATIVE
They reduce the cost of procurement or selling and
provide high quality services to specific groups.
They are stable, sustainable, and free from speculation,
and pay less taxes.
They have a social benefit, as they give people control
over things that matter to them.

Other Classifications of Business Organizations
Simple business organizations – these
refer to business organizations with few
departments, centralized authority with a
wide span of control and with few formal
rules and regulations.

Divisional business organizations – these are
business organizations made of separate business units
that are semi-autonomous or semi-independent, with a
division head responsible for his or her unit’s
performance. In other words, each division has its own
functional organization and own general manager;
however, the central management maintains
responsibility for the delineation of organizational goals of
the individual divisions.

Non-profit organizations – these are business
organizations designed for the purpose of achieving their
organizations’ mission, vision, goals, and objectives,
providing service to clients without expecting monetary
gains or financial benefits for their endeavors.



Nature and Levels of Planning
Planning is a process that involves the setting
of the organization’s goals, establishing
strategies for accomplishing those goals, and
developing plans of action or means that
managers intend to use to achieve
organizational goals.

Nature and Levels of Planning
Goal-setting – the identification of targets or defined ends that
management wants to reach.
Vision – a mental image of what the organization will be in the
future as desired by the company management and employees.
Mission – basic purpose of an organization and range of
their operations.
Objectives – steps needed to attain desired ends.
3 / 1 / 2 0 X X S A M P L E F O O T E R T E X T 1 0 0

Importance of Planning
✓ Planning provides direction to all the organization’s
human resources – both managers as well as employees. If
they know very well what the organization is trying to
achieve and what are the activities in place to achieve the
company’s mission, vision, and goals, then they will be able
to coordinate their actions and collaborate towards the
achievement of these. Planning will take you where you want
to go.

Say for example, your plan is to become an
engineer at age 21. You need to take STEM
as your strand in Senior High School because
this is a pre-requisite of an engineering
degree in college. Your plan of actions should
gear towards the achievement of your dream.

If the company wants to be known for producing and
selling organic vegetables, all farming activities and
procedures should be aligned to organic farming. They
should not be using inorganic fertilizers and pesticides
in their farms. The sole direction of the company is
only towards organic farming.

✓ Planning is important because it reduces
uncertainty; it compels managers to consider
future events that may affect their company. In
running a business, there is always risk. When
there is uncertainty, there is risk. Through
planning, we can avoid or reduce the risk.

During this time of pandemic, each
company has plan on how to prevent or
combat Covid-19 aligned with the
guidelines set by IATF. This plan will
help reduce the risk of transmission of
Covid-19.

✓ Establishing goals and standards during planning
may be used for controlling. During the planning, you
clearly state what you want to achieve. This standard
set during the planning stage serves as a basis in
gauging the performance of the company or the
employee.

Levels of Planning
The term Levels of Management refers to the line of division that exists
between various managerial positions in an organization. To illustrate
the three levels of management, let us take an example the popular
Filipino fast food chain Jollibee which is owned by Jollibee Food
Corporation (JFC). Jollibee has a lot of stores nationwide and even
abroad. In the Headquarters Office located in Pasig City are the top
executives that include the CEO. These executives lay out the company
policies. They belong to the top-level management. The store manager
is part of the middle-level management. The kitchen supervisor is
considered part of the lower-level management.

Planning at different levels of management include the
following:

Levels of Planning
Strategic Plans - are designed with the entire
organization in mind and begin with an
organization's mission. Top-level managers, such
as CEOs or presidents, will design and execute
strategic plans to paint a picture of the desired
future and long-term goals of the organization.

Levels of Planning
Jefferson is a top-level manager for McJabee Burgers. As a top-
level manager, Jefferson must use strategic planning to ensure the
long-term goals of the organization are reached. For Jefferson, that
means developing long-term strategies for achieving growth,
improving productivity and profitability, boosting return on
investments, improving customer service, and finding ways to give
back to the community in which it operates. In his strategic plan,
Jefferson might include doubling the revenue for the coming year.

Levels of Planning
Tactical Plans - support strategic plans by
translating them into specific plans relevant to a
distinct area of the organization. Tactical plans are
concerned with the responsibility and
functionality of lower-level departments to fulfill
their parts of the strategic plan.

Levels of Planning
For example, when Flor, the middle-level manager at
McJabee Burgers, learns about Jefferson’s strategic
plan for doubling the sales, Flor immediately begins
to think about possible tactical plans to ensure that
happens. Tactical planning for Flor might include
things like increasing the number of stores within the
area or adding up more products.

Levels of Planning
Operational plans - sit at the bottom of the totem
pole; they are the plans that are made by frontline, or
low-level, managers. All operational plans are
focused on the specific procedures and processes that
occur within the lowest levels of the organization.
Managers must plan the routine tasks of the
department using a high level of detail.

Levels of Planning
Using the same example, those directly
involved in the operation of the restaurant
may come-up with a plan to ensure that
customers are fully satisfied which can
guarantee the return of customers.

Specific plans – plans that are clearly stated
and which have no room for interpretation;
language used must be very understandable.
Such plans require specific stated objectives
with no ambiguity.
Example of specific objective is to generate a
total gross sale of P1,000,000 in 2021.

Single-use plans – plans used or stated
once only as this applies to the entire
organization. They refer to the operational
plans of the firm.
An example would be a plan to cut costs
during the next year.

Standing plans - plans that are ongoing;
provide guidance for different activities done
repeatedly; refer to the identified activities of
operational plans.
An employee handbook and conduct policy are
examples of standing plans in a business.

.

RISK OR UNCERTAINTY CONDITIONS – a
more common condition in deciding problems.
It compels the decision maker to do estimates
regarding the possible occurrence of certain
outcomes that may affect his or her solution to
the problem.

A good example is investing in the
market. There is no certainty that the
shares of stocks you purchased from
the money market will appreciate or
depreciate in the future.

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