Organization and Management
Organization and Management
Organization and Management
Characteristics
Work Activities
Reporting Relationships
Departmental Grouping Options
Organizational Design
Organizational Structure
Elements of Organizational Structure -refers to the extended authority and
decision-making is give to a small group of
1. Work Specialization people in the organization.
- refers to the way jobs are divided into Types of Degree of Centralization
steps or individual tasks.
A. Centralization
2. Departmentalization
- authority under top-level managers.
- refers to the grouping of similar
functions, jobs and tasks into departments. B. Decentralization
A. Authority
4. Span of Control
5. Degree of Centralization
3. Divisional Grouping Applicable Theories to Organizations as
Ideologies
- organizes a company into divisions
that correspond to certain products or services or 1. Bureaucratic Management Theory
geographical division.
- by Max Weber
- by Frederick Taylor
4. Contingency Theory
- by Fred Fiedler
- this theory recognizes that there is no - defined by the personal relationships
single best way of managing an organization. established among employees.
- the theory integrates all the mgmt. - the interaction of employees is based
approaches and identifies a specific approach to on friendship and camaraderie.
be applied in the situation at hand.
-------------------Staffing-----------------
Organization Theories in Actual
- also known as “human resource
1. Delegation management”.
- allocation of tasks to employees. - is the managerial function of acquiring
and developing human resources for carrying
Delegation of Authority- allows subordinates out and performing the various activities of the
to do tasks or responsibilities outside of their organization.
regular work, enabling them to exercise certain
level of authority beyond their position; involves - includes recruiting, selecting, training
mutual trust. and developing people in the organization.
Three Elements of Delegation Human Resource Department
Duty - implements human resource
Authority management and its related activities for the
Obligation company.
2. Empowerment Functions of Human Resource Department
- is the act of making employees A. Primary Function
accountable for their own actions.
- human resource planning, job analysis,
- requires that managers trust that their recruitment and hiring, training and
subordinates have the ability to enact decisions development, performance appraisal and
and perform the tasks assigned to them. management, compensation and employee
relations.
- trust empowers and motivates
employees. B. Other Functions
Two Kinds of Organization - ensures the company complies with
workplace safety and labor and employment
1. Formal Organization laws.
- rests on authority and responsibility. Staffing Process
- bound by rules and employees. 1. Human Resource Planning – Job Analysis
- conflict may arise due to A. Human Resource Planning
miscommunication regarding the
implementation of rules and policies, the abuse - identifies people with the right skills
of authority by management and poor and assigns them corresponding tasks in the
performance of members. company.
2. Informal Organization
Environmental Planning- finding out the Sources of Applicants
factors currently affecting the labor market.
Internal Applicants- company employees who
Forecasting and Estimating the Firm’s are considered for promotion in higher
Manpower Complement- status of employment positions.
in the organization.
External Applicants- individuals who are
Gap Analysis- determining the gap between perceived by the company or directly apply to
demand and supply in human resources. join the company.
- the procedure for determining the - the selection process starts when
duties and skill requirements for a job or a applicants who qualify the preliminary screening
position. are scheduled for the preliminary interview and
psychological testing conducted by the Human
Duties and Skill Requirements Resource Department.
Questionnaire- the least expensive technique. -an applicant who accepts the job,
submits the pre-employment requirements and
2. Recruitment – Selection – Placement – New undergo medical exam.
Employee Orientation – Training and
Development Status of Employment
Step 2: Designing the Program- identifies the - refers to the process where employee
training methods/techniques to be used. performance is documented and evaluated.
- determines if the employee
Step 3: Training Implementation- delivery of
performance is effective and conforms to
the training program utilizing the selected
techniques. company standards and expectations.
- it is done periodically.
Step 4: Training Evaluation- to measure the
effectiveness and development of programs. Purpose of Evaluating
- searches for ways to fulfill needs. - states that employee satisfaction is defined
by two factors: hygiene and motivators.
- selects a way to fulfill needs.
- any changes in these factors will bring
- performs to satisfy. about satisfaction or dissatisfaction among
employees.
3. Goals
5. Adam’s Equity Theory
- achieves goals.
- developed by John Stacey Adams
- receives feedback.
- proposes that employees become
Theories of Motivation motivated when they feel they are treated fairly.
1. Maslow’s Hierarchy of Needs - comparison is considered an important
- developed by Abraham Maslow (1943). factor in determining motivation and
satisfaction.
6. Vroom’s Expectancy Theory Position Power- refers to the amount of power a
manager has in directing workers and in giving
- developed by Victor Vroom.
rewards and punishments.
- explains that employees are motivated to
4. Transactional Theory
work when they expect to achieve something
from their jobs - considers the relationship between
followers and leaders as the key to achieving
- this assumes that employees know exactly goals.
what they have to do to be rewarded.
- it involves motivation and directing
Leadership Theories and Skills subordinated by appealing to their self-interest.
1. Great Man Theory - the power of transactional leaders comes
- developed by Thomas Carlyle. from their formal authority and responsibility in
the organization.
- this theory was formulated by analyzing
the behavior of renowned men especially 5. Transformational Theory
military leaders. - defines leadership with a moral dimension
where the leader and follower engage each other
- there is the assumption that leaders are
and bring each other to greater levels of
born with innate qualities and renowned leaders
aspiration.
are destined to lead.
Barriers to Communication
2. Theory X and Theory Y
- developed by Douglas McGregor. 1. Physical Barriers
- refers to areas that bar people from
- Theory X assumes that workers inherently
entering or gaining access, such as, closed office
dislike work and will avoid it as much as
doors, screens and separate areas for employees
possible; therefore managers must emphasize
of different ranks.
external motivation (guidelines, punishment
rewards). 2. Perceptual Barriers
- Theory Y assumes that workers take the - a problem arises when people have
initiative in their work and view it as a pleasant different perspectives about their situation or
and productive endeavor. environment.
Income Standards- include the gain or financial - entails establishing procedures and
rewards. policies that ensure efficiency in the activities of
the company.
2. Measure of Performance
5. Delegation
- measured by identifying strategic control
points: income, expenses, inventory, product - assigning an employee to take
quality, number of work hours put in by responsibility.
employees.
6. Evaluation
- can be measured by actual observation.
- involves the collection and analysis of Current Assets- assets that are expected to be
information in order to make decision. converted into cash within a year.
- relies on the quality of products and Preferred Stock- preference in the distribution.
services as a basis for establishing performance
standards and comparing results with the Retained Earnings- net income of the
standards. corporation less dividends.
3. Gut Game
- refers to the ability of the entrepreneur
to use his/her intuition.