PRINCIPLES OF MANAGEMENT

DR. JERRYSON S. JORDAN

Professor
Head - Quality Assurance
Chairman – Accreditation Committee
Chairman – 5S Committee
Consultant – CLB 101 Module(Founders, History and Values
Local Address:
Aries Street, Carmel Ville Subd, Alangilan, Batangas City

Foreign Address:
120 N. Syracuse Street, Anaheim, CA, USA 92801
 MY PROFESSIONAL WORK EXPERIENCES
BANK COSULTANT July 2015 to present
Batangas Federation of Rural Bankers
Calabarzon Region, Philippines

PROPRIETOR/OWNER up to the present

BCJC AUTOMATED PRINTING SYSTEM
JORDAN’s PROFESSIONAL TRAINING SERVICES

GENERAL MANAGER/HUMAN RESOURCE DIRECTOR 2016 -2017

Ultimate Care Megaventures Corporation
Lipa City, Batangas
 
 SUNHILL EDUCATION SYSTEM
VICE-PRESIDENT FOR ACADEMICS
VICE-PRESIDENT FOR OPERATION  
SCHOOL ADMINISTRATOR/SCHOOL PRINCIPAL
CHIEF OPERATING OFFICER/TRAINOR(E.Learning @workPhilippines)
CHIEF OPERATING OFFICER (Sunhill International College of Business & Mgt. )
HONORARY CONSULTANT (Sunhill Developmental Education)

COLLABORATOR in the ACADEME Year 2014

USAID – PBED Joint Project
Higher Education and Productivity Project (HEPP)
GENERAL MANAGER 2002 – 2006
Denny’s Restaurant Branches
Mancha Development Corporation
Simmons St., North Las Vegas, NV, USA/Hacienda Heights, Los Angeles, CA, USA
 
ADMINISTRATOR – CURRICULUM AND INSTRUCTION 1999 – 2002
Admiral Herbert Hopwood Middle School
Commonwealth of the Northern Mariana Islands, USA

RESEARCHER, PACIFIC REGIONAL LABORATORY (PREL) 1999 – 2002

A Self-Study Report on Special Education – Annual Data
Reporting for Department of Education, USA for the Pacific
Region and Outlying Territories of the United States

ADJUNCT FACULTY MEMBER – Northern Marianas College 1999 – 2002

School of Continuing Education
Commonwealth of the Northern Mariana Islands
New Accounts Specialist 1997 – 1999
Bank of Hawaii – Pacific Branches
Commonwealth of the Northern Mariana Islands

FOOD AND BEVERAGE CONTROLLER 1995 – 1997

Pacific Islands Club,
Northern Mariana Islands, USA

INTERNATIONAL ACADEMIC EXPOSURE:

WRITING PROGRAM FOR HIROSAKI MINAMI MIDDLE SCHOOL, SAPORRO, JAPAN SY2000
A Collaboration between Hopwood Middle School and Hirosaki Minami Middle School
FOCUS: Introduction of Advance English Writing and Communication Skills Development among Students of two Middle
Schools through Exchange of Writing .

PREL CONFERENCE - Pacific Regional Educational Laboratory SY2002

Presentor: Student Learning and Assessment Program
American Samoa Department of Education
American Samoa
 EDUCATIONAL COURSEWORK: POST GRADUATE STUDIES

DOCTORAL DEGREE IN EDUCATION ADMINISTRATION (Ed.D)

Madison University, Gulfport MS, USA

MASTERS DEGREE IN EDUCATION (MA.Ed) CHILD DEVELOPMENT

Baker University, Overland Park, KS, USA Distance Learning Program
Thesis Paper: Fullerton College, Fullerton, CA USA
SY 1999-2001 SY 2004 -2006

INTER-DISCIPLINARY STUDIES EARLY CHILDHOOD EDUCATION

Distance Learning Program Distance Learning Program
Mt. San Antonio College, Walnut, CA, USA Ashworth College, Norcross, GA, USA
SY 2004-2006 SY 2004-2006

EDUCATIONAL COURSEWORK: TERTIARY/SECONDARY/ELEMENTARY

BACHELOR OF SCIENCE IN INDUSTRIAL ENGINEERING
Far Eastern University, Manila
SY: 1984-1989

SECONDARY EDUCATION
Class Salutatorian
Melgar National High School
Naujan Oriental Mindoro, Philippines
School Year: 1979-1983
QUESTIONS AND ANSWERS

MUNA   
• The Commission on Higher Education (CHED) urges high school graduates who have been
unable to proceed to tertiary education, or college students who stopped schooling, to go
back to college this SY 2017-2018 before the new higher education curriculum is
implemented in SY 2018-2019.
• Collectively called “Lifelong Learners,” these are graduates who have obtained high school
diplomas in SY 2014-2015 or earlier under the old 10-year basic education curriculum.
• “Now is really the best chance to go back to college. By next year, Lifelong Learners who
would want to continue their undergraduate studies will face more requirements in going
back to school, as colleges and universities may require them to take bridging programs or
additional subjects in line with the competencies required in the new GE curriculum,“
CHED Chairperson Patricia B. Licuanan said.
• Licuanan further explains that these requirements are brought about by
the full implementation of the K to 12 Program, particularly the
transition to the revised general education (GE) curriculum starting June
2018.

• “We fully recognize the financial constraints that hamper our Lifelong
Learners from pursuing their education. As such, we will be
implementing a free tuition scheme in our SUCs this year and continue
to provide scholarship programs to eligible students. These interventions
underline our efforts and commitment here at CHED to provide wider
access to quality higher education nationwide,” Licuanan added.
• At the same time, CHED is also calling on all higher education
institutions (HEIs) nationwide to accommodate Lifelong Learners this
coming school year by extending the deadline for applications and
enrollment in SY 2017-2018, and directing students to apply for the
Student Financial Assistance Program (StuFAPs) offered by CHED.
• HEIs are also encouraged to offer special programs that will address the
needs of this group, such as support for adult learners that have been out
of formal education for a long time, and arrangements such as distance
learning, modularized programs, and assessments in line with the
Expanded Tertiary Education Equivalency and Accreditation (ETEEAP).
• As part of the long-term strategy of the government in addressing skills
mismatch and ensuring employability of all graduates including Lifelong
Learners, HEIs are also encouraged to 1) enhance and update their
curricula and program offerings to respond to industry needs; 2) explore
partnerships with other HEIs, private sector, government, and civil
society; 3) and align strategies with regional development plans, national
priorities, and emerging trends. The CHED K to 12 Transition Program
is offering grant programs to support HEIs and personnel in this
undertaking.
Rank University Location Rank University Location
1 Massachusetts Institute of Technology (MIT) United States 51 University of British Columbia Canada
2 Stanford University United States 52 City University of Hong Kong Hong Kong
3 Harvard University United States 53 Universite PSL France
4 University of Oxford United Kingdom 54 Zhejiang University China
5 California Institute of Technology (Caltech) United States 55 Technical University of Munich Germany
6 ETH Zurich - Swiss Federal Institute of Technology Switzerland 56 University of Wisconsin-Madison United States
7 University of Cambridge United Kingdom 57 Brown University United States
8 UCL (University College London) United Kingdom 58 Tokyo Institute of Technology Japan
9 Imperial College London United Kingdom 58 Monash University Australia
10 University of Chicago United States 60 Shanghai Jiao Tong University China
11 National University of Singapore (NUS) Singapore 60 Ecole Polytechnique France

11 Nanyang Technological University, Singapore (NTU) Singapore 62 University of Warwick United Kingdom

13 Princeton University United States 63 Ludwig-Maximilians-Universität München Germany

14 Cornell University United States 64 University of Amsterdam Netherlands
15 University of Pennsylvania United States 65 University of Texas at Austin United States
16 Tsinghua University China 66 Ruprecht-Karls-Universitat Heidelberg Germany

17 Yale University United States 67 University of Glasgow United Kingdom

18 Columbia University United States 68 University of Washington United States

18 EPFL - Ecole Polytechnique Federale de Lausanne Switzerland 69 National Taiwan University (NTU) Taiwan
20 University of Edinburgh United Kingdom 70 Universiti Malaya (UM) Malaysia
21 University of Michigan United States 71 Osaka University Japan
22 Peking University China 72 Georgia Institute of Technology United States
22 University of Tokyo Japan 72 University of Copenhagen Denmark
24 Johns Hopkins University United States 74 Universidad de Buenos Aires (UBA) Argentina
25 University of Hong Kong Hong Kong 75 University of Illinois at Urbana-Champaign United States
25 Duke University United States 76 University of Zurich Switzerland
27 University of Manchester United Kingdom 77 Sorbonne University France
28 University of California, Berkeley (UCB) United States 78 Durham University United Kingdom
29 Australian National University Australia 78 University of Sheffield United Kingdom
29 University of Toronto Canada 80 KU Leuven Belgium
31 Northwestern University United States 81 University of Birmingham United Kingdom
32 Hong Kong University of Science and Technology Hong Kong 82 Tohoku University Japan
33 King's College London United Kingdom 83 Korea University South Korea
33 Kyoto University Japan 84 Lomonosov Moscow State University Russia
35 McGill University Canada 85 Rice University United States
35 University of California, Los Angeles (UCLA) United States 86 University of Western Australia Australia
37 Seoul National University South Korea 87  Pohang University of Science and Technology (POSTECH) South Korea
38 University of Melbourne Australia 88 University of Auckland New Zealand
39 New York University (NYU) United States 89 University of Science and Technology of China China
40 Fudan University China 90 University of North Carolina, Chapel Hill United States
41 KAIST - Korea Advanced Institute of Science & Technology South Korea 91 Hong Kong Polytechnic University Hong Kong
42 University of Sydney Australia 92 Lund University Sweden
43 University of New South Wales (UNSW Sydney) Australia 93 Pennsylvania State University United States
44 London School of Economics and Political Science (LSE) United Kingdom 93 University of Leeds United Kingdom
45 University of California, San Diego (UCSD) United States 95 Sungkyunkwan University (SKKU) South Korea
46 Chinese University of Hong Kong (CUHK) Hong Kong 96 University of Nottingham United Kingdom
47 University of Queensland Australia 97 University of Southampton United Kingdom
48 Carnegie Mellon University United States 98 Boston University United States
49 University of Bristol United Kingdom 98 KTH Royal Institute of Technology Sweden
50 Delft University of Technology Netherlands 100 University of St Andrews United Kingdom
 PWEDE NA TAYONG MAG-ARAL, MAG FOCUS AT
MATUTO?
PWEDE RIN GA NA MAGING PROFESSIONAL KAYO
DURING CLASS?
PWEDE RIN GA NA MAGING CONSIDERATE KAYO SA
ORAS NG KLASE?
PWEDE RIN GA NA ANG PAG-GAMIT NG CELLPHONE AT
ILAGAY SA LUGAR AT HUWAG GAWING ASAL NA NAGSE
CELPON SA ORAS NG KLASE.
PWEDE RIN GA NA MAG EEFORT KAYO KUNG SAKALING
ABSENT AT MAY IPINAGAGAWA, AY MAGTANONG SA
KAKLASE KUNG ANONG MERON?
 PWEDE RIN GA NA MAGING MAAYOS KAYO SA PAG-
GAMIT NG REST ROOM AT HINDI BALASUBAS?
PWEDE RIN GA NA WAG GAWING ASAL ANG KAKABANYO?
PWEDE RIN GA NA MAPANATILING MAAYOS AT MALINIS
ANG MGA CLASSROOM?
PWEDE RIN GA NA PAPASOK KAYO SA TAMANG ORAS, AT
HINDI HULI.?
PWEDE RIN GA NA KAYO AY UMAKTONG STUDYANTE SA
ORAS NG KLASE?

PWEDE RIN GA NA MAGRESPETUHAN TAYO?

 Vision and Mission Statements
Core Values
Goals and Objectives, and Beliefs
Seal and Hymn
 VISION
CLB is committed to transform individuals into excellent and benevolent
professionals primed to lead for global development

MISSION
To prepare students to become useful citizens, God-fearing,
value-oriented, and disciplined individuals engaged in the
noble task of uplifting the quality of life in the community.
 CORE VALUES
CLB is inspired by the ideals of:
EXCELLENCE – we are committed to continuous improvement towards
excellence to meet global standards
BENEVOLENCE – we strive to contribute to the greatest benefit of the
community through education
DIGNITY – we hold high standards of character to ensure a harmonious college
environment.
COMMITMENT – we advocate a strong sense of commitment to individual and
career growth
LEADERSHIP – we support service and social responsibility for nation-building
BOLDNESS – we encourage scholarly challenges for professional success.
 BOARD OF TRUSTEES (BOT)

Chairman of the Board Hon. Beverly Rose A. Dimacuha

  City Mayor, Batangas City
Vice-Chairman Dr. Lorna L. Gappi
  College Administrator
Member Hon. Alyssa Renee A. Cruz-Atienza
  Chairman on Education, Sanggunian ng Lungsod ng Batangas

Member Mrs. Karen A. Bunquin

  President, Association of CLB Faculty
Member Mr. Jayson D. Dimaano
  CLB Alumni President
Member Realyn C. Villena
  Student Executive Council President
Member Mr. Manolo Perlada
  College Secretary
Dr. Lorna L. Gappi College Administrator

Dr. Leonor A. De Guzman VP for Administration, Head of Medical

Services
Dr. Feliciana F. Adarlo VP for Academic Affairs, Dean, College of
Education
Dr. Doringer P. Cabrera VP For REPD, Dean, College of Business and
Accountancy, College Accountant

Mr. Mark Macarandang VP for Finance

Mr. Manolo M. Perlada College Secretary

Mr. Andrew Brian B. Deguito Budget Officer - UNIFAST Focal Person

Ms. Jesusa D. Arellano HR Personnel Officer

 Sub-Offices under VP-Admin

Head, Corporate Communication Mrs. Ritchie M. Guico

Head, Human Resource Management Office Mr. Carlo D. Garcia

Head, Medical and Dental Services Dr. Leonor A. De Guzman

Head, Information and Technology Services Ms. Jerramie G.Meliton

Head, Maintenance and Facilities/Security Mr. Jerrime M. Mendoza

Coordinator, Training and Development Ms. Imelda Marino

 Sub-Offices under VP-Academic Affairs
Program Chair, BEED Mrs. Margorie E. De Jesus
Program Chair, BSBA Mrs. Anabelle B. Peres
Program Chair, BSESS/Head Linkages & Mrs. Karen A. Bunquin
Partnership
Program Chair, BSC Ms. Ma. Corazon C. Castillo
College Registrar Mrs. Kimberly Ann M. Villanueva
College Librarian Mrs. Maria Isabel L. Alea
Head, Admission, Testing and Guidance Services Mr. Gail B. Magalang
Head, Office of Student Affairs Mrs. Deborah B. Catilo
Head, Sports and Development Ms. Mena Montialto
Head, Community Extension and Services / NSTP Mr. James Macalalad
Head, Culture and Arts Office Mr. Peter John M. Caringal
 Sub-Offices under VP-Research, Extension, Planning and Development

Dr. Marilou Hernandez Head, GAD and Extension Services

Dr. Jerryson S. Jordan Head, Quality Assurance

  Chairman, Accreditation Committee
  Chairman, 5S Committee
Consultant: CLB 101 Module Upgrade
Mrs. Rose ME Ann G, Laumanglas Head, Alumni Relations

Ms. Ma. Christina G. Morfi Head, Research and Development

Mrs. Karen A. Bunquin Head, Linkages & Partnership

Sub-Offices under VP for Finance

Mr. Andrew Brian B. Deguito UNIFAST Focal Person

Mr. Glenn H. Lumanglas Head, Supply and Property Management

 WHAT IS MANAGEMENT?
Management is the organizational process that aids us in creating a service or product from the
raw materials we have at hand. It is the sum of the input processes that allow us to mold
something useful from what otherwise is a disarray of human resources and raw components.

Principles of Management is has drawn concepts from various “principles” of economics,

sociology, philosophy, statistics and so many others. The result is that each group had defined
management differently.
For example, economists see management as a factor of production;
sociologists see it as a class or group of persons;
practitioners of management treat is a process;
Let us identify terms use in “MANAGEMENT”
1. Management is an art or technique of getting things done.
2. Management is a process of planning, organizing, leading and controlling.
3. Management is a distinct activity of any organization.
4. Management is a discipline, which represents a body of knowledge
5. Management denotes group of people.

MANAGEMENT is the process of designing and maintaining an environment in which

individual working together in groups efficiently accomplish the selected arm.
WHO ARE MANAGERS?
MANAGERS - persons carry out the managerial function of planning, organizing, leading
and controlling.
 MODULE 1: ORGANIZATION: STRUCTURE, FUNCTIONS, AND
OBJECTIVES (3 HOURS)

OBJECTIVES: Students are expected to

1. Explain the nature and elements of an organization

2. Classify the organizations and enumerate their advantages and
disadvantages
3. Compare the different types of businesses
4. Identify the environment effecting organizations
NATURE OF ORGANIZATION
WHAT IS AN ORGANIZATION?

IT IS A GROUP OF PEOPLE WHO WORK TOGETHER TO ACHIEVE SOME SPECIFIC

PURPOSE. THE PURPOSE FOR WHICH AN ORGANIZATION WOULD ACCOMLISH
WOULD EITHER BE FOR PROFIT OR NOT-FOR-PROFIT.

PEOPLE IN AN ORGANIZATION MAY HAVE DIFFERENT CHARACTERISTICS,

BELIEFS AND PERSONALITIES,YET THEY ARE HARMONIZE TO A CERTAIN
OBJECTIVE AND EACH OF THEM PLAYS AN IMPORTANT ROLE IN ACHIEVING A
WIDE VARIETY OF GOALS RO DESIRED OUTCOME.
 FOUR (4) ELEMENTS OF ORGANIZATION
1. OBJECTIVES
THESE ARE THE DEFINED GOALS TO ACCOMPLISH AS A GROUP. COMMON GOAL OR PURPOSE
IS THE PRIMARY REASON WHY PEOPLE COORDINATE THEIR MENTAL AND/OR PHYSICAL EFFORTS.
2. RELATIONSHIPS
ORGANIZATION INVOLVES INTERACTION AMONG THE PEOPLE TO ACHIVE THE GOAL.
3. SYSTEMS
THE METHODS OR PLAN OF PROCEDURE COMBINED WITH RESOURCES AND PEOPLE TO
ACHIEVE THE OBJECTIVE. THIS IS WELL-PLANNED AND DESIGNED TO GET TH EMOST OF LIMITED
RESOURCES.
IT INCLUDES COORDINATION OF EFFORTS AND DIVISION OF LABOR WHICH MUST BE DEFINED
TO PERMIT INDIVIDUALS TO KNOW WHAT MUST BE DONE AND HOW PARTICULAR JOBS RELATE
TO ONE ANOTHER.
4. AUTHORITY
THE KEY TO A MANAGEMENT JOB SINCE WITHOUT AUTHORITY ORGANIZED ACTION WILL BE
UNATTAINABLE. MANAGERS NEED AUTHORITY NOT ONLY TO CARRY OUT THEIR MANAGERIAL
RESPONSIBILITIES, BUT IN ORDER TO DIRECT AND COORDINATE ACTIVITIES OF SUBORDINATES.
 CLASSIFICATION OF ORGANIZATIONS
“COMMERCIAL” and
“NON-COMMERCIAL”
What is BUSINESS?
ANY ECONOMIC ACTIVITY CONDUCTED PRIMARILY FOR PROFIT. TO ENGAGE IN
BUSINESS IS TO SUPPLY GOODS AND SERVICES TO EARN PROFIT OR INCOME.
THIS IS THE PURPOSE OF A COMMERCIAL ORGANIZATION .
THE COMMON CLASSIFICATION OF COMMERCIAL OR BUSINESS
ORGANIZATIONS ACCORDING TO OWNERSHIP ARE:

SINGLE PROPRIETORSHIPS
PARTNERSHIPS
CORPORATIONS
 WHAT IS SINGLE PROPRIETORSHIP
IT IS WHEN A BUSINESS IS OWNED (AND USUALLY MANAGED) BY ONE EPERSON,
It Is a Single (Sole) Proprietorship. The person is called a “single proprietor”
A sole proprietor may be engaged in the practice of his profession (like medical doctor, lawyer
or CPA) or small commercial activities other than a practice of profession (like the owner of a
sari-sari store or a beauty parlor)
ADVANTAGES DISADVANTAGES
*easiest to start and set up; *unlimited liability – owner is legally
only few legal requirements liable for all business debts.
*only one (owner) decides for *limited resources (capital, managerial skills , etc.)
the business
*all profits are for the owner*all losses are borne by owner
*the owner, not the business, *limited life – business is automatically
is taxed terminated due to owner’s death, insanity or
imprisonment
 PARTNERSHIP
What is a “PARTNERSHIP”?
When two or more persons bind themselves to contribute resources to a common fund in their
co-owned business for a profit, it is called a “Partnership”. The owners are called “partners”
ADVANTAGES DISADVANTAGES
*Easy to form – mere agreement *Unlimited liability – a general partner
organizes a partnership is legally liable for the unpaid debts of
*joint resources of resourcespartnership
(capital, skills, etc) *all partners may be held liable of the action of one partner.
*lesser government supervision *consensual and restricted transfer of
ownership.
*Tax-exempt, if professional partnership, *limited life – disagreement or change
but subject to tax corporate tax if of partner may dissolve the partnership.
Commercial partnership Incapacity, insanity or death of a partner
terminates the partnership
 CORPORATION
What is CORPORATION?
A “CORPORATION” is a more formal business organization than a partnership. It is
composed of five or more owners generally called “incorporators,” “corporators,” and/or
“stockholders.”

A “CORPORATION” is a business registered as an artificial person under the operation of

the law. Its existence is evidenced by its Articles of Incorporation and Corporate By-Laws
registered with the Securities and Exchange Commission (SEC)

A “CORPORATION” that issues shares equity to shareholders is called a “profit

corporation”, A “corporation” that does not issue share equity is a “non-profit corporation.”
ADVANTAGES DISADVANTAGES
*Limited liability – shareholders are not *most costly and difficult to organize
Legally liable for the corporate unpaid *only the Board of Directors and other
Liabilities authorized officers can bind the
*power of succession - it can continue corporation in contracts.
to exist in spite of death, withdrawal *shareholders have limited access &
or changes of officers and shareholders control over management and
*unrestricted transfer of ownership operations.
*greater source of resources(capitalization *more stringent government super-
skills, etc) vision and restrictions
*renewable and perpetual life – a corp *corporations are taxed at a flat
may renew its registered life every 50 years. 30% income tax rate (effective
2009) if a corporation incurred
loss in its 4th year of operation,
it should still be taxed of 2% based
on its gross income.
 LET US CLARIFY FIRST
IMPORTANT QUESTIONS.

SECURITIES AND EXCHANGE COMMISSION

 PRIMARY ACTIVITES OF BUSINESS
A business may be classified based on its primary activities. The most common types of
business as to their nature or main activities are as follows:

1. SERVICING –
to earn revenue, this business renders services to clients in exchange for a fee. Therefore,
the primary “product” of this business is “service”
2. MERCHANDISING –
this business engages in the “buying” and “selling” of goods. Its earning are primarily
derived from the mark-up (profit) it adds to the cost of goods it sells to the customers.
3. MANUFACTURING -
this business converts raw materials into finished goods that are to be sold at selling
price.
 NON-COMMERCIAL ORGANIZATIONS
NON-COMMERCIAL ORGANIZATIONS
are organized primarily not for profit. These organization s are formed for service to its
members or to the public.
The common classifications of non-commercial organization are:
1. Public Sector Organization
This refers to a tax-funded government organization, including their agencies engage in
governmental functions.
Government is the most examined organization by the public because it uses public money for
public service. It faces sheer size, huge budget deficits and mounting pressure for greater
efficiency in government.
Basically, government officials and employees are called “bureaucrat” which carries a strong
negative connotation of inefficiency, waste and red tape. As a consequence, the public longed for
leaders in the government that are efficient, effective and honest to make sure the public funds are
used as intended.
NONPROFIT ORGANIZATIONS
foundations,
association,
not-for-profits, or tax-exempts.
They are considered to be those businesses that do not directly seek to financially enrich
members, management or associations.
Typically, they promote education, health care, religion, or other benevolent goals.
While profit-making organizations exist under the premise of earning and distributing taxable
business earnings to shareholders, the nonprofit organization exists primarily to provide
programs and services that are of benefit to others and might not be provided by local and
national government.
While nonprofit organizations are able to earn a profit, more accurately called ‘surplus”, such
earnings are retained by the organization for its future provisions of programs and services,
and are not owned by nor distributed to individuals or stakeholders.
 KEY PERSONNEL
The Key Personnel in an organization refer to the top level management group.
For Sole Proprietorship business –
it refers to the “owner” and/or the “manager” of the small business – the person involve in the
day-to-day economic decisions in achieving business goals.
It has a simple organization structure because owner/manager has direct contact with the work
and the workers. Most of the time, the owner of this small business is the one directly working
to achieve business goals.

For Partnership form of business,

the key person is the managing partner. He is appointed to run the partnership business. Also,
the other partners of the business are considered key personnel because that may act to
represent the business in any contract within the normal business activities.
Partnership form of business greatly encourages management participation among the
partners. Basically, partners are assigned to a specific task as contribution to achieve business
goals.
The corporate form of business plays a more complex key personnel structure because no
owners who are called “shareholders” can directly participate in managing the affairs of the
business.
In a profit oriented corporate business, to become a shareholder (part owner of the corporation,
an investor would simply purchase capital shares. Because of the huge number of
shareholders, their corporate ownership is represented by a “certificate of stock”. Most of the
time minor shareholders are represented by proxy for corporate meetings.
 Below are the key personnel of a corporate organization.
The Shareholders (stockholders) are the owners of the business from
STOCKHOLDERS which the BOD are elected. The members of the BOD are the policy
makers and vested with the power to exercise the powers of the
corporation. The BOD is headed by the Chairman of the Board.
Below the BOD are the Operations and Managers of the
BOARD OF DIRECTORS Corporations.

• The Corporate President must be a member of the BOD

PRESIDENT according to law.
• Other Officers of the corporation need not be members of the
BOD unless stated in the Corporate By-Laws.
• The corporation may employ several Vice-Presidents who may
be assigned to the operation, finance, marketing production, etc.
• The Corporate Secretary is responsible to keep the corporate
VICE- CORPORATE CORPORATE records such minutes of the meeting, entries of stockholders
PRESIDENTS SECRETARY TREASURER votes, directors and stockholder’s resolutions in directing the
affairs of the corporation.
• The Corporate Treasurer is authorized to receive and keep the
money of the corporation . He may disburse the funds of the
corporation based on the authorization given to him.
 RESTRUCTURING ORGANIZATIONS
An organizational structure resembles the framework of a building or skeleton of the body.
Works are subdivided through it to accomplish organizational goals.
Structuring an organization is simply means that the organization’s components – its
departments, divisions, boards, committees or any sub-unit – are designed, arranged and
interrelated in achieving organizational objectives.
An important aspect of structuring an organization is defining the degree of formalization -
the extent to which the units of the organization are explicitly defined and its policies,
procedures and goals are clearly stated.
It also includes such factors as technology, spans of control, the number of levels in the
hierarchy (layers) of management.
 FUNCTIONS WITHIN ORGANIZATION S
The numerous affairs in an organization can be classified into three (3) major functions as
follows:
1. ADMINISTRATION
Responsible for the welfare of personnel and safeguarding of physical resources. This
function is headed by the VP for Administration.

2. FINANCE
Responsible of safeguarding corporate funds including cash flows and budgeting. This
function is headed by the VP for Finance.

3. OPERATION
Concern with activities, work, productivity and production of product. This function is
headed by the VP for Operations.
 ORGANIZATIONAL ENVIRONMENT
An Organization operates in an internal and an external environment.

The organization’s Internal Environment includes factors that affect performance from within
its boundaries. They are called internal factors because they are within the organization’s
control which may include:
1.MANAGEMENT
Managers are responsible for the organization’s performance. They perform the task of
planning, organizing, leading and controlling.
Top managers usually receive credit for the success and failure of the company because they
regulate its affairs. They made decisions to direct the organizations in the attainment of its
objectives. The Leadership style used in an organization may either create a healthy or
unhealthy working environment affecting employee’s performance
2.EMPLOYEES
They are the workers managed by managers to accomplish the organizational objectives.
The educational background, trainings, skills, belief, values and attitude of employees affect
greatly the nature of organizational environment.
3.ORGANIZATIONAL CULTURE
It consists of shared values, beliefs and assumption s of how the members of organization
should behave. It is the organization’s personality that reflects its image within and outside its
boundaries. It gives meaning to the organization’s way of doing things.
Managers are also responsible for linking employees to the organizational culture.
4.MISSION
The organization’s mission is its purpose or being. It guides the direction and behavior of the
individuals within the organization towards its goal. Managers with vision changes
organization’s mission by offering products in demanded by customers.
The organizational mission should be relevant to all stakeholders. Stakeholders are people whose interests are
affected by organizational behavior. Some of the stakeholders include employees, shareholders, customers,
suppliers, creditors and the government.
5.RESOURCES
These include human, financial, physical and informational possessions that an organization uses to achieve its
goals.
Human resources
are responsible for achieving the organization’s mission and objective.
Physical resources
include the organizations facilities that are used to aid workers in performing their jobs easier.
Financial resources
are necessary to purchase and maintain the physical resources and to pay employees.
Informational resources
includes data processing system to facilitate preparation of reports and communication within the organization.
6. SYSEM PROCESS
This factor refers to the methods or procedures an organization used in producing its products or rendering its
services to satisfy customer’s needs.
QUALITY
is an internal factor within a system process because it is within the control of the organization that is embodied in
its inputs, transformation and outputs. Customers determine quality by comparing actual use to determine value of
products or service.
Customer Value
is the purchasing benefits used by customer to determine whether or not to buy a product of service.
The system process has four (4) components:
1. INPUTS –
inputs are the start-up forces that provides the organization with operating necessities. The inputs are the
organization’s resources (human, physical, financial and informational).
2. TRANSFORMATION -
it is the conversion of inputs into outputs. It is the production process that combines the required resources to
bring out the needed product or service.
3. OUTPUTS –
it refers to the product or services offered to customers.
4. FEEDBACKS –
it provides a means of control to ensure that the inputs and transformation process are producing the desired
results.
STRUCTURE –
it refers to the manner in which the organization classifies its resources to accomplish its
mission.

THE EXTERNAL ENVIRONMENT

The external environment is a set of forces and conditions outside the organization’s
boundaries that have the potential to affect the way an organization operates.
These forces change overtime and thus present the organization with opportunities and treats.
Changes in the environment such as the introduction of new technology or the opening of
global markets create opportunities for organizations to obtain resources or enter new markets.
On the other hand, the new competitors, global economic recession, or new governmental
sanctions are critical factors affecting organization performance.
The external environment of an organization maybe classified into
task environment , and
general environment.

General Environment

Task Environment

The Organization
TASK ENVIRONMENT
Forces and conditions on task environment have immediate and direct effect on management
decision because they affect the day-to-day business operations.

These FORCES are;

SUPPLIERS –
they provide an organization with the needed input resources (such as raw materials, operating
supplies, component parts or manpower) that are used to make products or render services.
Global outsourcing is the process by which organizations purchase inputs from other
companies or produce inputs themselves throughout the world to lower their production costs
and improve the quality or design of their products.
DISTRIBUTORS –
these are organizations that help other organizations sell their goods or services to customers.
The changing nature of distributors and distribution methods can bring opportunities and
threats for managers. If distributors become so large and powerful, they can threaten the
organization by demanding that it reduce the prices of its goods and services.
CUSTOMERS-
they are individuals and groups that buy the goods and services that are being produced by an
organization.
Changes in the number and types of customers or changes in customers’ tastes and needs result
in opportunities and threats. A manager’s ability to identify an organization’s main customers
and produce the goods and services they want is a crucial factor affecting organizational and
managerial success.
COMPETITORS –
these are organizations that produce goods or services similar to a particular organization’s
goods or services.
Rivalry between competitors is potentially the most threatening force that managers must deal
with. A high level of rivalry often results in price competition and falling prices reduce access
to resources and lower profits.
GENERAL ENVIRONMENT
Opportunities and threats resulting from changes in the general environment are often more difficult
to identify and respond to. Changes in these forces can have major impacts on managers and their
organizations.

FORCES included in the general environment are:

ECONOMIC FORCES
They affect the general condition of a country or world region. These forces include interest rates,
inflation, unemployment and economic growth.
Economic forces bring many opportunities and threats to managers. For example, low levels of
unemployment and falling interest rates mean a change in the customer base. More people have more
money to spend, and as a result organizations have an opportunity to sell more goods and services.
TECHNOLOGICAL FORCES
A technology is a combination of tools, machines, computers, skills, information and knowledge that
managers use in the design, production and distribution of goods and services. Technological forces
are outcomes of changes in technology use by an organization.
Technological forces can have profound implications for managers and organizations. They
can make established products obsolete. They can also create a host of new opportunities for
designing , making or distributing new and better kinds of goods and services.
SOCIO-CULTURAL FORCES
There refer to pressures deriving from the social structure of a country or society or from the
national culture.
Social structure
is the arrangement of relationships between individuals and groups in a society.
National culture
is the set of values that a society considers important and the norms of behavior that are
approve or sanctioned in that society.
Managers and organizations must be responsive to changes in, and differences among the
social structures and national cultures of all countries in which they operate. In today’s
increasing integrated global economy, managers live and work abroad. Effective managers are
sensitive to differences between societies and adjust their behaviors accordingly.
DEMOGRAPHICS FORCES
These forces are results of changes in, or changing attitudes toward the characteristics of a
population such as age, gender, ethnic, origin, race, sexual orientation and social class.
Demographic forces present organizations with opportunities and threats and can have major
implications for organizations.
For instance, the aging of population has several implications for the workplace. Most
significant are a relative decline in the young people joining the workforce and an increase in
the number of active employees willing to postpone retirement.

POLITICAL ABD LEGAL FORCES

These are the offshoot of changes in laws and regulations resulting from the political and legal
developments within a society. Laws and regulations constrain the operations of organizations
and managers, and thus create both opportunities and threats
Throughout much of the industrialized world there has been a strong trend toward deregulation of
industries previously controlled by the State and privatization of organizations once owned by the State.
Other examples of political and legal forces that can challenge organizations are increased emphasis on
environmental protection and the preservation of endangered species, increased emphasis on safety in
the workplace, legal constraints against discrimination on the basis of race, gender, or age.

GLOBAL FORCES
These are outcomes of changes in international relationships, changes in nations’ economic, political
and legal systems and changes in technology.

The most important global force affecting managers and organizations is the increasing economic
integration of countries around the world such as the General Agreement on Tariffs and Trade (GATT),
World Trade Organization (WTO) and the growth of European Union (EU) have led to a lowerinbg of
barriers to the free flow goods and services between nations.
Falling trade barriers have created enormous opportunities for companies in one country to sell goods
and services in other countries. By allowing comp-anise from other countries to compete fro domestic
customers, however, falling trade barriers also pose a serious threat because they increase competition
in their task environment.

MODULE1: REVIEW QUESTIONS AND DISCUSSIONS

1. What is an organization?
2. Explain the elements of organization.
3. Differentiate the three types of business organization.
4. Why is corporation more advantageous than a partnership form of business?
5. Explain the primary business Activities of servicing, merchandising and manufacturing firms.