ORGANIZING

LESSON 1: NATURE OF ORGANIZATIONS

Differentiation of the Organization’s Internal Environment

Differentiation in organizations involves division of labor and specialization according to

Bateman and Snell (from quiz). These necessarily result from the organization’s composition—many
different work units with different kinds of tasks, using different skills and work activities coordinating
with one another for a common end. Larger organizations require more work divisions and
specializations

Division of labor involves assigning different tasks to different people in the organization’s
different work units. Related to it is specialization, the process in which different individuals and units
perform different tasks. An organization’s overall work is complex and would be too much for any
individual, therefore, the bigger the organization, the more work units or work divisions and
specializations are to be expected.

LESSON 2: TYPES OF ORGANIZATION STRUCTURES

An organization structure is a system made up of tasks to be accomplished, work movements

from one work level to other work levels in the system, reporting relationships, and communication
passageways that unite the work of different individual persons and groups.

The types of organizational structures include:

a. vertical structure - according to Bateman and Snell (2008)clears out issues related to authority
rights, responsibilities, and reporting relationships
b. b. horizontal structure - – refers to a selection of independent, usually single-function organizations
that work together to produce a product or service
c. c. network structure-is a collection of independent, usually single function organizations/companies
that work together in order to produce a product or service

Types of Department:

Line departments – deal directly with the firm’s primary goods and services; responsible for
manufacturing, selling, and providing services to clients.

Staff departments – support the activities of the line departments by doing research, attending to
legal matters, performing public relations duties, etc

 Functional approach – where the subdivisions are formed based on specialized activities
such as marketing, production, financial management, and human resources management
 Divisional approach – where departments are formed based on management of their
products, customers, or geographic areas covered.
 Matrix approach – is a hybrid form of departmentalization where managers and staff
personnel report to the superiors, the functional manager, and the divisional manager

LESSON 3: ORGANIZATION THEORIES AND APPLICATIONS

According to Robbins and Coulter (2009): traditional and modern.

Traditional Theories pertains to the usual or old-fashioned ways.

Modern Theories refers to contemporary or new design theories.

Traditional organizational design theories include:

Simple Organizational Design- this organizational design has few departments, wide spans of
control, or a big number of subordinates directly reporting to a manager

Functional Organizational Design- is characterized by having few departments, a centralized

authority figure, and little formalization of work, making it suitable for entrepreneurial ventures
 Divisional organizational design- is made up of separate business divisions or units, where the
parent corporation acts as overseer to coordinate and control the different divisions and provide
financial and legal support services.

Modern organizational design theories include:

Team Design- the entire organization is made up of work groups or teams. Its advantages include
empowerment of team members and reduced barriers among functional areas. It also has
disadvantages, including a clear chain of command and great pressure on teams to perform.

Matrix-Project Design- are specialists from different departments supervised by a project manager,
resulting in a double chain of command.

Boundary-less Design- this is another modern organizational design where the design is not defined
or limited by vertical, horizontal, and external boundaries.

LESSON 4: DELEGATION

Delegation- refers to assigning in a new or additional task to a subordinate; or getting the work
done through others by giving them the right to make decisions or take action

Steps in Delegation:

1. Defining the goal clearly. Managers must clearly explain the task objective and the work or duties
someone else is expected to do.
2. Selecting the person who will be given the task. The selected subordinate must be competent and
must share the manager’s task objectives.
3. Assigning of responsibility – Managers must explain that the responsibility assigned to the selected
subordinate is an expectation for him or her to perform the assigned tasks well.
4. Asking the person assigned about his or her planned approaches to accomplish the task objectives.
It is expected that the person chosen to do the task already has a tentative plan of action that may be
presented to the manager
5. Granting the assigned person the authority to act. If the manager is satisfied with the tentative plan
of action presented, granting of the authority to act immediately follows
6. Giving the assigned person enough time and resources to do the task, while at the same time
emphasizing his or her accountability. Accountability is the assigned person’s willingness to complete
the job, as agreed upon.
7. Checking the task accomplishment progress. Following up and discussing the task accomplishment
progress at regular intervals is necessary.
8. Making sure that the task objective has been achieved. The above steps of delegation were given by
Weihrich and Krontz (2005)

LESSON 5: FORMAL AND INFORMAL ORGANIZATIONS

Formal organizations – refer to organizations formed by the company owner or manager to help
the firm accomplish its goals; made up of formal groups (work groups/ project team/committee)
similarly formed by company authorities to support their activities and achieve their objectives. It is
formed by company authorities

Informal organizations – refer to organizations that exist because of friendship or common

interest; made up of informal groups which exist for the members’ need for social affiliation. Primarily
driven by social affiliation and common interests

Formal organizations have the following function:

1. Accomplish goals that require cooperation or collaboration among formal groups in the organization;
2. Produce or bring about new and creative ideas and solutions to company problems;
3. Coordinate interdepartmental activities;
4. Implement company rules/regulations and policies; and
5. Orient/train new employees. Meanwhile,

Informal organizations’ function include the following:

1. Satisfy the members’ need for affiliation;

2. Give the individual members a chance to develop their self-esteem;
3. Give individual members an opportunity to share their ideas;
4. Lessen individual members’ insecurities; and
5. Provide a mechanism to solve members’ personal and interpersonal problems.
STAFFING
LESSON 1: DEFINITION AND NATURE OF STAFFING

Staffing- according to Dyck and Neubert (2012), is the Human Resource function of identifying,
attracting, hiring, and retaining people with the necessary qualifications to fill the responsibilities of
current and future jobs in the organization.

Staffing has two main components: recruitment and selection.

Recruitment- The process of identifying and attracting the people with the necessary
qualifications is called recruitment

Selection- The process of choosing and appointing individuals with the appropriate qualifications
for specific roles within an organization or choosing who to hire.

Steps in the staffing process.

LESSON 2: RECRUITMENT

Recruitment – a set of activities designed to attract qualified applicants for job position
vacancies in an organization

Systems approach to staffing – is the step-by-step way of filling job positions in organizations,
considering variables such as numbers and kinds of human resources needed, open managerial and
nonmanagerial positions, potential successors to open job positions, etc

Recruitment may either be external or internal.

External- refers to recruitment from outside sources

Internal- refers to recruitment done within the organization

Methods of External and Internal Recruitment:

External recruitment methods include:

Advertisements Unsolicited applications Internet recruiting

Employee referrals Executive search firms Educational institutions

Educational institutions Labor unions Public and private employment

As mentioned earlier, internal recruitment is done within the organization. Most managers prefer to
follow a policy of filling job openings through promotions and transfer.
LESSON 3: SELECTION

Selection – the process of choosing individuals who have the required qualifications to fill
present and expected job openings.

Selection process typically includes the following steps:

1. Establishing the selection criteria

2. Requesting applicants to complete the application form
3. Screening by listing applicants who seem to meet the set criteria
4. Screening interview to identify more promising applicants
5. Interview by the supervisor/manager or panel interviewers
6. Verifying information provided by the applicant
7. Requesting the applicant to undergo psychological and physical examination
8. Informing the applicant that he or she has been chosen for the position applied for

Interview – the determining of an applicant’s qualifications in order to gauge his or her ability to do the
job.

Types of Job Interviews

Structured interview – the interviewer asks the applicant to answer a set of prepared questions
—situational, job knowledge, job simulation, and worker requirement questions

Unstructured interview – the interviewer has no interview guide and may ask questions freely

One-on-one interview – one interviewer is assigned to interview the applicant

Panel interview – several interviewers or a panel interviewer may conduct the interview of
applicants; three to five interviewers take turns in asking questions

Types of Employment

Tests Intelligence test Proficiency and aptitude tests

Personality tests Vocational tests

LESSON 4: TRAINING AND DEVELOPMENT

Training – refers to learning given by organizations to its employees that concentrates on short-
term job performance and acquisition or improvement of job-related skills. Emphasizes immediate job
skills and knowledge is the primary focus of employee training.

Development – refers to learning given by organizations to its employees that is geared toward
the individual’s acquisition and expansion of his or her skills in preparation for future job appointments
and other responsibilities. Focuses on preparing employees for future roles is the best characterizes
employee development.

LESSON 5 COMPENSATION/WAGES AND PERFORMANCE EVALUATION

Compensation/wages – all forms of pay given by employers to their employees for the performance of
their jobs

Types of Compensation:

Direct compensation – includes workers’ salaries, incentive pays, bonuses, and commissions

Indirect compensation – includes benefits given by employers other than financial

remunerations; for example: travel, educational and health benefits, and others
 Nonfinancial compensation – includes recognition programs, being assigned to do rewarding
jobs, or enjoying management support, ideal work environment, and convenient work hours

Bases for Compensation;

Piecework basis Hourly basis Daily basis Weekly basis Monthly basis

Performance evaluation – a process undertaken by the organization, usually done once a year, designed
to measure employees’ work performance

Purposes of Performance Evaluation: Administrative and Developmental

Improving individual job performance through performance evaluation is just one of the reasons why
employees are subjected to assessments on a continuous basis.

Administrative Purposes – These are fulfilled through appraisal/ evaluation programs that
provide information that may be used as basis for compensation decisions, promotions, transfers, and
terminations. Human resource planning may also make use of it for recruitment and selection of
potential employees

Developmental Purposes – These are fulfilled through appraisal/ evaluation programs that
provide information about employees’ performance and their strengths and weaknesses that may be
used as basis for identifying their training and development needs.

Performance Appraisal Methods

Methods of evaluating workers have undergone development in order to adapt new legal employment
requirements and technical changes.

Trait methods – performance evaluation method designed to find out if the employee possesses
important work characteristics such as conscientiousness, creativity, emotional stability, and others

Graphic rating scales – performance appraisal method where each characteristic to be

evaluated is represented by a scale on which the evaluator or rater indicates the degree to which an
employee possesses that characteristic

Forced-choice method – performance evaluation that requires the rater to choose from two
statements purposely designed to distinguish between positive or negative performance; for example:
works seriously— works fast; shows leadership—has initiative

Behaviorally anchored rating scale (BARS) – a behavioral approach to performance appraisal

that includes five to ten vertical scales, one for each important strategy for doing the job and numbered
according to its importance

Behavior observation scale (BOS) – a behavioral approach to performance appraisal that

measures the frequency of observed behavior

LESSON 6 EMPLOYEE RELATIONS

Employee relations – the connection created among employees/workers as they do their assigned tasks
for the organization to which they belong

Effective Employer Relations and Social Support

Social support is the sum total of perceived assistance or benefits that may result from effective
social employee relationships. The quantity and quality of an employee’s relationship with others
determine social support. In short, social support and effective employee relations must always go
together like “a horse and carriage,” where one would be useless without the other.
Below are some barriers to good employee relations:

• Anti-social personality; refusal to share more about oneself to co-employees; being a loner
• Lack of trust in others
• Selfish attitude; too many self-serving motives
• Lack of good self-esteem
• Not a team player
• Being conceited
• Cultural/subcultural differences
• Lack of cooperation
• Communication problems; refusal to listen to what others seek to communicate
• Lack of concern for others’ welfare

Here are some ways to overcome barriers to good employee relations:

• Develop a healthy personality to overcome negative attitudes and behavior

• Find time to socialize with coworkers.
• Overcome tendencies of being too dependent on electronic gadgets.
• Develop good communication skills and be open to others’ opinions.
• Minimize cultural/subcultural tension.

Three Types of Employees; ENGAGED, NOT ENGAGED, ACTIVELY DISENGAGED

LESSON 8 REWARDS SYSTEM

Reward – gift, prize or recompense for merit, service or achievement, which may have a motivating
effect on the employee

Monetary reward – refers to money, finance or currency reward

a. pay/salary b. benefits c. incentives d. executive pay e. stock options

Non-monetary reward – refers to intrinsic rewards which do not pertain to money or finance

a. award b. praise
LEADING
LESSON 1 WHAT LEADING IS

Leading – a management function that involves inspiring and influencing people in the organization to
achieve a common goal

Managing – the process of working with and through others to achieve organizational objectives
efficiently and ethically amid constant change.

LESSON 2 MOTIVATION

Motivation – refers to psychological processes that arouse and direct goal-directed behavior

Theory – a body of fundamental principles verifiable by experiment or observation

According to Kreitner and Kinicki (2013), early Theories of Motivation revolved around the idea
that motivation is brought about by the employees’ desire to fulfill their need, their work habits, and
their job satisfaction

Maslow’s Hierarchy of Needs Theory – refers to Maslow’s Hierarchy of Five Human Needs:

physiological, safety, social, esteem, and self-actualization

McGregor’s Theory X and Theory Y – refers to the theory that was proposed by Douglas McGregor

Theory X is a negative view of workers which assumes that workers have little ambition, dislike
work, and avoid responsibilities; they need to be closely monitored or controlled in order for them to
work effectively. A manager who closely monitors and controls every aspect of their team's work.

Theory Y is a positive view of workers which assumes that employees enjoy work, seek out and
accept responsibility, and are self-directed.

Herzberg’s Two Factor Theory – was proposed by Frederick Herzberg

This theory is also known as the Motivation-Hygiene Theory which states that:

Intrinsic factors are associated with job satisfaction, also are the motivators. (achievement,
recognition, growth, and responsibility)

Extrinsic factors are associated with job dissatisfaction, also are called hygiene factors.(company
policy, salary, security, and supervision)

McClelland’s Three Needs Theory – was proposed by David McClelland and states that individuals have
three needs that serve as motivators at work.

The three needs McClelland referred to are:

the need for Achievement (nAch) the need for Power (nPow) the need for Affiliation (nAff)

Alderfer’s ERG Theory – was developed by Clayton Alderfer in the 1960s.

For Alderfer, a set of core needs explains behavior. E stands for existence needs, R refers to
relatedness needs, and G pertains to growth needs.
Modern Theories of Motivation

Goal Setting Theory – a theory stating that specific goals motivate performance
Reinforcement Theory – a theory states that behavior is a determined of its consequences.
Job Design Theory – a theory which states that employees are motivated to work well by
combining tasks to form complete jobs.

a) job enlargement—the horizontal expansion of a job by increasing job scope

b) job enrichment—the increasing of job depth by empowering employees
c) job characteristics model—where employees are motivated to perform well

Equity Theory – a theory developed by J. Stacey Adams which states that employees assess job
outcomes
Expectancy Theory – states that an individual tends to act in a certain way

LESSON 3 LEADERSHIP STYLES AND THEORIES

Leadership – the process of inspiring and influencing a group of people to achieve a common
goal

Trait Theory – a theory based on leader traits or personal characteristics that

differentiate leaders from followers.
Behavioral Theory – a theory that focuses on the behavior, action, conduct, demeanor,
or deportment of a leader

Contemporary Theories of Leadership

Fiedler Model – it is a situational leadership theory proposed by Fred Fiedler, an organizational behavior
scholar. This theory is based on the assumption that a leader’s effectiveness is contingent or dependent.

Hersey-Blanchard Model – focuses on subordinates' readiness to accomplish a specific task, considering

both ability and willingness.

Path-Goal Theory – states that the leader’s task is to lead his other followers or subordinates in
achieving their goals

Modern Leadership Views

1. Transactional Leadership Model – a theoretical model which states that leaders guide their
subordinates toward the achievement of their organization’s goals
2. Transformational Leadership Model –It states that leaders inspire or transform followers to
achieve extraordinary outcomes.
3. Charismatic Leadership Theory –which states that leaders who have a charismatic personality
are able to influence their subordinates to follow them.
4. Visionary Leadership Theory – is a theory which states that leaders are able to make their
subordinates follow because of their ability to create and articulate a realistic, credible, and
attractive vision.
5. Team Leadership Theory – is a theory that emerged because of the fact that leadership is
increasingly taking place within a team context
6. Servant Leadership Theory – a theory proposed by Robert Greenleaf in 1970 stating that
servant-leaders must focus on increased service to others rather than to one’s self.
LESSON 4 COMMUNICATION

Barriers to Communication

Filtering – the shaping of information communicated in order to make it look good or

advantageous to the receiver.

Emotions – the interpretation of communications which may be influenced by extreme

emotions felt by the receiver.

Information overload –since there are too many pieces of information received by an individual
may have a negative effect on a person’s processing capacity

Defensiveness – the act of self-protection when people are threatened by something or

someone.

Language – could also hamper good communications because words used may have different
meanings to different people belonging to different age, educational background, or cultural group

National culture – just like language, the prevailing national culture may also cause problems in
communication among members of an organization, especially if it is multinational company

Overcoming Communication Barriers

Using feedback – This is usually done by asking questions about a memo sent to subordinates or
by asking them to give their comments or suggestions.

Using simple language – This is done by avoiding uncommon terms and flowery words that may
just cause misinterpretation.

Active listening – This means listening well in order to grasp the full meaning of the
communication

Controlling emotions – This is another method of overcoming communication misinterpretation.

Observing body language – This also influences how communication is interpreted.

CONTROLLING
LESSON 1 DEFINITION AND NATURE OF MANAGEMENT CONTROL

Controlling – a management function involves ensuring the work performance of the organization’s
members are aligned with the organization’s values and standards through monitoring, comparing, and
correcting their actions

Management control -makes sure that the firm’s operating cash flow is sufficient, efficient, and,
if possible, profitable when invested.

The Control Process- Control techniques used for controlling financial resources, office
management, quality assurance, and others are essentially the same. The typical control process
involves establishing standards, measuring and reporting actual performance, and comparing it with
standards, and taking action.

LESSON 2 THE LINK BETWEEN PLANNING AND CONTROLLING

Planning sets the goals for the organization and controlling ensures its accomplishment. Planning
decides the control process and controlling provides sound basis for planning.

Control- is integrated planning.

Planning- involves a thorough process which is essential to the creation and refinement of a
blue print or its integration with other plans that may combine forecasting of developments in
preparation for future scenarios.

LESSON 3 CONTROL METHODS AND SYSTEMS

Control methods are techniques used for measuring an organization’s financial stability, efficiency,
effectiveness, production output, and organization members’ attitudes and morale.

Methods of Control- A firm may apply control techniques or methods which are either quantitative or
nonquantitative.

Quantitative methods -make use of data and different quantitative tools for monitoring and
controlling production output. Budgets and audits are among the most common quantitative tools.

 Budgets. The budget remains the best known control device. Budget and control
are, in fact, synonymous.
 Audits. Internal auditing involves the independent review and evaluation of the
organization’s nontactical operations, such as accounting and finances.

Nonquantitative methods- refer to the overall control of performance instead of only those of
specific organizational processes. These methods use tools such as inspections, reports, direct
supervision, and on-the-spot checking and performance evaluation or counseling to accomplish
goals.
Other control methods;

 Feedforward control prevents problems because managerial action is taken before the
actual problem occurs.
 Concurrent control takes place while work activity is happening. The best example of
this type of control is direct supervision or management by walking around.
 Feedback control is control that takes place after the occurrence of the activity.
 Employee discipline is a control challenge for managers. Concerns regarding this include
workplace privacy, employee theft, and workplace violence, among others.
 Project management control ensures that the task of getting a project’s activities done
on time, within the budget, and according to specifications, is successfully carried out.