ORGANIZATION AND MANAGEMENT ensure the accomplishment of

1st Quarter objectives.

● This is where the execution of the
Management plan happens.
● a process of organizing, leading,
controlling, and planning activities in Staffing
an organization in a systematic way ● It ensures that necessary human
to achieve a common goal. resources are available to execute
plans and achieve the organizational
Management is a universal phenomenon goals.the process of hiring people

Mary Parker Follett defines management Leading

as an art of getting things done through ● the process of motivating and
people. influencing people for the common
goal of the organization and achieve
Management is a purposive activity organizational objectives for the
according to Peter Drucker. common good both organizations
and its members.
Frederick Taylor defines management as a
multi-purpose organ that manages the Controlling
business and manages managers and ● Function of management that
manages workers and work involves determining the
organization’s goal or performance
Harold Koontz “Management is an art of
creating an environment in which people
can perform and individuals and can THEORIES OF MANAGEMENT
co-operate towards attainment of group Scientific Management
goals” Management should use scientific
approaches for efficiency.
Henri Fayol Management is “to manage is ● Frederick W. Taylor- Father of
to forecast and to plan, to organize, to Scientific Management.
command, to coordinate, and to control”
Administrative Management
People should work in a clear unity of
FUNCTIONS OF MANAGEMENT direction.
Planning ● Henri Fayol- Father of the Modern
● It is considered to be the central Theory of General and Industrial
function of management. Management
“management can be taught”
Organizing ● Division of Work- employees have
● It is the function of management that complementary skill sets that allow
involves developing an them to specialize in certain areas.
organizational structure and
allocating human resources to
 ● Unity of Command- employees Human Relations Motivational Theory
should receive orders from only one It emphasizes praise and teamwork as
superior. motivational factors.
● Centralization- there should be a ● Elton Mayo- a research belief by
balance between decision-making him
power.
● Scalar Chain- A chain of authority Systems Theory
exists from the highest A business is a system, much like a living
organizational authority to the lowest organism.
ranks. ● Ludwig Von Bertalanffy- the
● Equity- a combination of kindliness biologist who proposed this theory in
and justice. the 1940s
● Stability of Tenure- businesses
should try to limit turnover and keep Theory X and Y
employees around as they A two contrasting theories that explained
accumulate knowledge and improve. how managers' beliefs about what motivates
● Initiative- employees should share their people can affect their management
ideas and be rewarded for style.
innovative thinking and taking on ● Douglas McGregor (1960)- a social
new tasks. psychologist who developed this
● Eprit de Corps- employee morale theory. (The Human Side of
matters. Enterprise)
● Theory X managers create
Bureaucratic Theory situations where workers become
Uses standard rules and procedures to dependent and reluctant.
organize itself. ● Theory Y manager creates
● Max Weber- He created the situations where workers respond
bureaucratic theory with initiative and high performance.
● Division of Labor- Jobs are
well-defined and workers become
highly skilled at performing them. ROLES OF A MANAGER
● Formal Rules and Procedures- Role is a set of connected behaviors, rights,
Written guidelines, direct obligations, beliefs, and norms as
behaviors,the decision in jobs, and conceptualized by people's social situation.
written files
● Impersonality- Rules and INTERPERSONAL CATEGORY
procedures are impartially and providing information and ideas
uniformly applied 1. Figurehead
● Hierarchy and Authority- Authority - the manager has social, ceremonial,
and responsibility are well defined and legal responsibilities.
for each position. 2. Leader
● Meritocracy- Workers are selected - the manager manages the
and promoted based on ability, performance and responsibilities of
performance, and qualifications. everyone in the group.
 3. Liaison SKILLS OF A MANAGER
- the managers must communicate Robert Katz
with internal and external contacts. ● an american social and
organizational psychologist stated
INFORMATIONAL CATEGORY that there are three basic types of
processing information management skills include:
1. Monitor
- the manager regularly seeks out 1. Technical Skills
information related to your - the skills needed to boost sales,
organization and industry, looking for design different types of products
relevant changes in the and services, and market the
environment. services and the products.
2. Disseminator 2. Conceptual Skills
- the manager communicates - It enables the managers to see an
potentially useful information to your entire concept, analyze and
colleagues and your team. diagnose a problem, and find
3. Spokesperson creative solutions
- the manager is responsible for 3. Human or Interpersonal Skills
transmitting information about your - It enables the managers to make
organization and its goals to the use of human potential in the
people outside it. company and motivate the
employees for better results.
DECISIONAL CATEGORY
using information ● Six Essential Management Skills
1. Entrepreneur 1. Planning
- the manager creates and controls ● one’s ability to organize activities in
change within the organization line with set guidelines
2. Disturbance Handler
- when an organization or team hits 2. Communication
an unexpected roadblock, it's the ● It involves the flow of information
manager who must take charge. within the organization, whether
3. Resource Allocator formal or informal, verbal, or written.
- involves allocating funding, as well 3. Decision-Making
as assigning staff and other ● This skill increases the chances that
organizational resources. you will choose the most satisfying
4. Negotiator alternative possible.
- the manager takes part in, and 4. Delegation
direct, important negotiations within ● The act of passing on work-related
your team, department, or tasks and/or authorities to other
organization. employees or subordinates.
5. Problem-Solving
● It involves identifying a certain
problem or situation and then finding
 the best way to handle the problem of individuals and groups
and get the best solution. affect
6. Motivating 5. Technological conditions-
● helps bring forth a desired behavior skills and ability that are
or response from the employees or implemented into production,
certain stakeholders. the materials and technology
- Intrinsic motivation: we do things 6. World and Ecological
because we enjoy them not because Environment conditions-
we have to. how the firms can meet the
- Extrinsic motivation: when you are needs of their customers
motivated to perform, achieve, learn, while advancing the well
or do something based on a highly being of the natural
considered outcome, rather than for environment.
the fun.
Micro
● the factors in the immediate
VARIOUS FORCES/ELEMENTS OF THE FIRM area of operation affecting its
Environmental Scanning performance and decision-making
the process of identifying and analyzing the freedom.
various forces/elements interacting with the ● also called a task environment or
organization competitive environment.
● External Environment- composed 1. Customers- patronize the
of all the outside factors or organization’s products
influences that impact the operation and services.
of the business. 2. Employees- those who
execute the company’s
Two types of external environment: strategies and are important
Macro for the maintenance of the
● the most general elements that can company’s stability.
potentially influence the strategic 3. Suppliers and Distribution
and long-term decisions of the firm. Channels- manages the
1. Demographic conditions- supply chain and
the statistical study of people distribution network
and the human population. 4. Competitors- rival firms
2. Economic conditions- the within the same industry
overall health of the 5. Shareholders and
economy. Investors- you share both
3. Political-Legal conditions- your risks and profits with
refers to national or local them.
laws, international laws, and 6. Public and Media- public
rules and regulations supports
4. Socio-cultural conditions-
the structure and dynamics
 ● Internal Environment- those Business Climate
elements that exist within or inside ● business operates within a complex
the organization network of political, legal, and
institutional framework conditions
1. Owners and Shareholders-
people who invested in the Geert Hofstede (1928)
company and have property ● He developed a model in which
rights and claims on the worldwide differences in culture are
organization. categorized according to five
2. Board of Directors- the dimensions.
governing body of the 1. Power Distance – a society accepts or
company rejects the unequal distribution of power
3. Employees- the most among people in organizations
important element of an 2. Uncertainty Avoidance – society is
organization’s internal uncomfortable with risk, change, and
environment situational uncertainty.
4. Organizational Culture- the 3. Individualism-Collectivism – a society
collective behavior of emphasizes individual accomplishments
members of an organization versus collective accomplishments.
attach 4. Masculinity-Femininity – a society
5. Resources of the values assertiveness and feelings of
Organization material success versus concern for
6. Organization’s relationships.
Image/Goodwill- the 5. Time Orientation – a society
reputation of an organization emphasizes short-term thinking versus
greater concern for the future or long-term
thinking
LOCAL AND INTERNATIONAL BUSINESS
ENVIRONMENT OF THE FIRM International Business
Cultural Intelligence ● All the economic activities indulged
● an individual’s ability to favorably in cross-border transactions come
receive and adjust to an unfamiliar under international or external
way of doing things. business.

Local Business Globalization

● The producer and customers of the ● refers to changes in the dimensions
firm both reside in the country. of the external environment

Domestic Trade
● the buyer and seller belong to the
same country
Components or factors of the global Challenges of Globalization Faced by
business environment include: Business Environment:
1. International Legal and Political 1. International Recruiting
System 2. Managing Employee Immigration
It governs a complete set of rules, 3. Incurring Tariffs and Export Fees
regulations, institutions, and attitudes. 4. Payroll and Compliance Challenges
5. Loss of Cultural Identity
2. Trade Agreements and Trade Barriers 6. Foreign Worker Exploitation
Between Countries 7. Global Expansion Difficulties.
8. Immigration Challenges and Local Job
● Trade Agreement Loss
exists when two or more countries
agree on terms that help them trade
with each other. PESTLE and SWOT Analysis
PESTLE Analysis
● Trade Barriers ● the external/bigger picture
are government-induced restrictions ● It helps avoid starting projects that
on international trade. are likely to fail for reasons beyond
control.
3. Regional Economic Alliance ● helps spot business or personal
- It is a treaty that is signed by two or more opportunities and gives advanced
countries to encourage the free movement warnings of significant threats.
of goods and services across the borders of ● reveals the direction/shape of
its members. change within the business
environment.
4. Global Outsourcing ● help businesses break free of
Global outsourcing is enabling business unconscious assumptions when they
without barriers in a borderless enter a new country, region, or
world. market, see objectives

Benefits of Globalization Faced by Political: the influences that a government

Business Environment: may have upon the business environment
1. Access to New Cultures Economic: inflation rates, interest rates,
2. The Spread of Technology and economic growth, demand and supply
Innovation trends
3. Lower Costs for Products Social: the analysis of cultural trends,
4. Higher Standards of Living Across the demographical determinants, and age
Globe distribution.
5. Access to New Markets Technological: the rate at which the
6. Access to New Talent innovations are occurring
Legal: laws and policies that directly impact
the way your business is run and the
decisions that fuel its momentum.
Environmental: effects in the environment Profit business organization
it operates in ● Maintains their organizational
stability through income generation
SWOT Analysis and profit-making activities.
● it can help decision-makers
determine whether a particular Non-profit organizations
objective must be selected and the ● without expecting monetary gains or
analytical process is repeated. financial benefits for their endeavors.

Strengths and Weaknesses - represents Open/flexible business organizations

the internal factors of the SWOT Analysis. ● one that can adapt and respond
relatively quickly to changes in its
Opportunities and Threats - represents external environment
the external factors of the SWOT Analysis.
Team structures
Forms of Business Organization ● made up of work teams that work
Business Organization together to achieve the
● a collection of people working organization’s purpose;
together to achieve a common
purpose about their organization’s Matrix business organizations
mission, vision, goals, and ● exhibit dual reporting relationships in
objectives, sharing a common which the manager report to two
organizational culture. superiors.

Simple Business Organization Project business organization

● business organizations with few ● a business organizational form with
departments, with few formal rules a flexible design, where the
and regulations employees continuously work on
projects assigned to them.
Functional Business Organization
● with similar or related specialized Boundaryless business organization
duties that introduce the concept of ● business organization design
delegation of authority to functional eliminates vertical, horizontal, or
managers. external boundaries, and is
described to be flexible and
Divisional Business Organization unstructured.
● experts or specialists belonging to
different functional departments to Virtual Business Organization
work together on one or more ● members usually communicate
projects; exhibit dual reporting online.
relationships. (semi independent)
Roles of Business Organization in Economy Stage 1: TRADITIONAL SOCIETY
1. Businesses employ different factors of - This stage where a large proportion
production. of productive resources are devoted
2. Developing new products. to agriculture.
3. Investing in the capital and new
technology. Stage 2: PRE-CONDITIONS TO
4. Providing goods and services for the TAKE-OFF
consumer. - This stage of economic development
5. The principle of creative destruction. is a result of the industrial revolution.
J. Schumacher named the phrase “creative - A change in society’s attitudes
destruction”. when the inefficient business towards science, risk-taking, and
went out of business it profit- earning
enabled a redistribution of resources - External investment and greater
towards more efficient uses of resources. exploitation of natural resources.
-
Possible Challenges of Business Stage 3: THE TAKE-OFF
● Negative externalities of - This stage is characterized by
production dynamic economic development.
● Monopoly power - large-scale investment in
● Short-termism manufacturing and infrastructure.

- Business plays a vital role in the Stage 4: DRIVE TO MATURITY

economic development and wealth - economic and technical progress
of a country. dominates.
- Businesses employ different factors - the development of a large
of Production. commercial economy and
- Economy is a system of making and favorable integration into the
trading things of value. global economy.

Phase of Economic Development Stage 5: AGE OF MASS CONSUMPTION

Economic Growth - It refers to an increase - most of the society live in prosperity,
in the given amount of goods and services and persons living in the society are
produced by the ountry’s earning. offered both abundance and a
multiplicity of choices.
Economic Development - It is a total - consumerism and mass
process which includes not only economic consumption.
growth or the increase in the given amount
of goods and services produced by the Rostow's Stages of Economic Growth
country’s economy. include all of the following
EXCEPT Postmodern Society.
ROWSTOW STAGES OF GROWTH
MODEL
- Walt Whitman Rostow
Nature of Planning IMPORTANCE OF PLANNING
Planning - the first management function A. Planning provides direction to all of
and a very essential component of the organization’s human
Management. “the central function of the resources
management” B. Planning is important because it
reduces uncertainty.
CHARACTERISTIC OF PLANNING C. Minimizing of wastes will result if
1. Planning is goal-oriented. there is proper coordination of
made to achieve the desired objective of the activities due to planning.
business. D. Establishing goals and standards
2. Planning is looking ahead. during planning may be used for
Planning is done for the future. controlling.
3. Planning is an intellectual process.
a mental exercise involving creative
thinking, sound judgment, Process of Planning
and imagination. 1. Setting Objectives
4. Planning involves choice & decision ● the primary step in the process of
making. planning which specifies the
involves a choice among various ● objective of the organization a
alternatives. Decision making is an integral results which the management
part of planning. wants to achieve by its operations.
5. Planning is the primary function of
management. S.M.A.R.T
Planning lays the foundation for other Specific - precise and exact.
functions of management. Measurable - quantify desired results.
6. Planning is a Continuous Process. Attainable - realistically achievable
a never-ending function due to the dynamic Relevant - the overall purpose of the
business environment. Organization.
7. Planning is all Pervasive. Time-bound - a target date for completion.
It is required at all levels of management
and in all departments of the enterprise. The 2. Situation Analysis
scope of planning may differ from one level ● This process analyzes past events,
to another. examine the current conditions, and
8. Planning is designed for efficiency. attempts to forecast future trend.
leads to the accomplishment of objectives at
the minimum possiblecost. 3. Scenario Analysis
9. Planning is Flexible. ● the process of analyzing future
cope with the changes in customer demand, events by considering possible
competition, government policies, etc. alternatives outcomes.
 4. Development and Analysis of ● refer to more specific and
Alternatives detailed steps on how the
● Identification of alternative courses strategy is to be implemented.
of action that may be undertaken to
achieve predetermined goals.
A. MARKETING PLAN - controlling an
organizational marketing activity related
5. Implementation of the Plan
to a particular marketing strategy.
● The final step in the planning
B. PRODUCTION PLAN - the quantity
process.The identified action
of output a company must produce in
steps are now carried out.
broad terms and by product family
C. FINANCIAL PLAN – summarizes the
6. Monitoring of the Plan
current financial situation of the firm,
● Monitoring the plan constantly
D. HUMAN RESOURCE PLAN - the
and taking feedback at regular
human resource needs of a company
intervals is called follow-up.
detailed in terms of quantity and quality
E. FACILITIES PLAN - dealings with
VISION: It is the futuristic statement of
facilities and work layouts.
what the organization wants to become
in the long-term.
OPERATIONAL PLAN
● short term plan
MISSION: It describes the fundamental
● Identified specific procedures and
reason for the existence of the
processes required at the lower
organization – a purpose behind why
level of the organization and
does what it does and why it would like
usually focus on the routine task.
to become what it envisions to be in the
future
PLANS ACCORDING TO VARIED
FREQUENCY OF USE
Types of Plan
● Long-range plans – 3 or more STANDING PLANS
years - used again and again, and recur
● Intermediate plans – 1-2 years repeatedly.
● Short-age plans – 1 year or less
POLICIES – broad guidelines used by
STRATEGIC PLAN managers to help make decisions and
● Long range plans take actions
● Expresses what is to become in PROCEDURE – the exact series of
the future. actions
RULES – requires or forbids a certain
TACTICAL PLAN action.
● Intermediate plans
SINGLE-USED PLAN Planning Tools and Techniques In Business
- courses of action that relatively Making

unique and are unlikely to be Tools – is any physical item that can be
repeated. used to achieve a goal
BUDGET PLAN– explains where the
required funds will come from. Technique – is a systematic procedure,
PROGRAM PLAN– is designed to formula, or routine by which a task is
coordinate a large set of activities. accomplished.
PROJECT PLAN– is usually more
limited in scope than a program 1. TECHNIQUES IN ASSESSING THE
ENVIRONMENT
A. Environmental Scanning - interpret
Planning at Different Levels of Firm changes in the environment.
Corporate Level B. Competitor intelligence - gathering
A leader in this case provides a mission information about one’s
and a vision that is duly needed in the competitors.
organization towards accomplishing the C. Forecasting - Refers to the process
set goals and objectives. of making assumptions about what
● Those heading up the large will happen in the future.
corporate groups such as ● Quantitative forecasting, a set
finance, human resources, of mathematical rules
marketing is under this level ● Qualitative forecasting, uses
the judgment and opinions of
Business Level knowledgeable individuals to
On this level, managers focus on predict outcomes.
determining how they are going to D. CONTINGENCY PLANNING
compete effectively in the market. It anticipates that things can go wrong,
● this level addresses the that changes in the environment will
questions “who are our direct eventually occur and crises and
competitors” emergencies may occur.
E. BENCHMARKING
Functional Level Is a technique that makes use of
This level, the managers focus on how external comparison to better evaluate
they can facilitate the achievement of current performance and identify
the competitive plan of the business. possible actions for the future.

2. TECHNIQUES IN ALLOCATING
RESOURCES
determine how those goals are going to
be accomplished.
A. Budgeting ● the second function of
a numerical plan for allocating resources management
to specific activities. ● the process of arranging people
B. Scheduling and other resources to work
Detailing what activities have to be done together to accomplish
C. Breakeven Analysis predetermined goals.
Breakeven analysis is a widely used ● It involves dividing work to be
resource allocation technique to help performed and coordinating
managers determine the breakeven resources to achieve a common
points. purpose.

3. CONTEMPORARY PLANNING IMPORTANCE OF ORGANIZATION

TECHNIQUES
A. Project Management - a one-time 1. Mechanism for management in
project or set of activities that is done action
on time, the completion of its goals 2. Facilitate management and
and objectives on the specified date. operation
B. Scenario Planning - a long-term 3. Effective Delegation
version of contingency planning that 4. Facilitate Growth and
identifies several alternative future Diversification
scenarios 5. Provide Optimum Use of
Technology
6. Promote the Development of
Nature of Organizations Human Resources.
3 points of view in defining 7. Flexibility and Creativity
organization: 8. Productivity increment
1. Organization as a group of people 9. Facilitate Organizational Stability
2. Organization as a system 10. Help reduce employee turn-over
● system defined as a structural
mechanism composed of
interrelated parts that work Types of Organizational Structure
together to undertake a stated Organization Structure
function. a system made up of tasks to be
● organization is considered as a accomplished, unite the work of different
system because it is composed individual persons and groups.
of people with cooperative
activities Divisional Structure
3. Organization as a process These types of structures that are
4. Organization as a management complex and have diverse
function
operations, numerous product
territories, or geographical regions
customers, and work processes.

Functional Structure
This type of organizational structure
works well for a small organization that
produces only one or a few product or
services.

Matrix Structure
This kind of structure may have
members of different groups
working together to develop a new
product line.

Team Structure
This structure is meant to disrupt the
traditional hierarchy, focusing more on
problem -solving, cooperation, and
giving employees more control.

Network Structure
These structures also describe an
internal structure that focuses
more on open communication and
relationships rather than hierarchy.

Hierarchical Structure
Employees are grouped with every
employee having one clear supervisor.