ORGANIZATION AND MANAGEMENT

The would-be-manager’s responsibilities

are to:
1. Peruse (scrutinize, read thoroughly
and carefully) the case
2. Define the problem or problems
correctly
3. Identify the cause or causes of the
problem or problems
4. Recommend and justify the action
or actions to be taken
5. Specify how the problem or
problems could have been avoided
6. Formulate a policy to be used as a
guide in future situations

Si “Bossing” at si “Lider “

Si “Bossing” ay palautos,
Si “Lider”, isang inspirasyon;
Si “Bossing” ay nananangan sa kapangyarihan,
Si “Lider” ay naniniwala sa kabutihang asal;
Si “Bossing” ay kinatatakutan,
Si “Lider” ay nagpapakita ng pagmamahal,
Si “Bossing” ay tinuturo kung sino ang mali,
Si “Lider” ay ipinapakita kung ano ang tama;
Alam ni “Bossing” kung paano ginawa ang isang bagay;
Ang kay “Lider” nama’y itinuturo ang wastong paraan;
Si “Bossing” ay nanghihingi ng paggalang,
Si “Lider” ay sadyang ibinibigay ng nasasakupan.
IKAW, gusto mo bang maging “BOSSING” o maging
“LIDER” na lang?
 IN A QUANDARY ( dilemma, difficulty, predicant)

I’m the company president of a large

up scale retail store in Davao City.
I know for a fact as president my
chief task is to think and plan for
the company’s future, but how can I
do these when I’m extremely busy
with the store’s day-to-day
operations?

Ph. D. WITH AN ATTITUDE

Our product development laboratory was headed by a

nationally acknowledged specialist who holds as
M.S. degree. Over the years through hard work he
has built up the laboratory into a highly accredited
one.
To help him in his work, we hired a young man
who holds a Ph.D. degree to be his assistant, and
this was where our problem began. The young man
refused to take orders from his superior whose
academic background was inferior to his.
I have explained to him repeatedly that while
his superior does not have a doctorate, he is a
nationally recognized authority in the field and
taking instructions from him does not demean his
professional standing. He was unconvinced.
The laboratory war escalated (rise).

THE MANAGER’S DILEMMA

We are in the beer business. When our chief chemist died
last year, we pirated the chief chemist or our competitor
who has an almost similar beer. When he moved over to
our company, he offered me the secret beer formula of
our competitor. I turned the offer down as I felt it would
be unethical to use it.
In the meantime, we have done extensive research
ourselves and have developed a new kind, a beer which is
of great potential in the market. Naturally, our chief
chemist knows its formula.
Lately, our chief chemist has brought us a lot of problems.
He has become a source of discontent in our laboratory.
He has become an autocrat who loves to humiliate his
subordinate in public. As a result of his nasty behavior,
four of our very competent chemists, who have been with
us for years, have resigned.
I tried correcting him thrice, but to no avail. His character
flaw is so ingrained that there is no possibility to change
it.
I thought of firing him, but I know if I do, he will go to our
competitor and sell them our valuable beer formula.
 CASTING THE FIRST STONE

I’m the president of a reputable fashion

house.
Two days ago, I received a call informing
me that our buyer of fashion merchandise was
a convicted prostitute before her employment
with us. I had this information investigated
and I found it to be true.
The lady in question has been with us for
10 years and has done an excellent job.
As we guard our company’s reputation
zealously (passionately, enthusiastically) , I
wonder if I should dismiss her or retain her.

ORGANIZATION AND MANAGEMENT

Managing is an increasingly important activity in

today’s complex society. Our society breeds
more and more organizations everyday. In each
of these organizations, managing is an essential
activity. Managers are constantly needed to
plan, organize, direct, and control operations to
ensure that organizations accomplish their
goals. There is, and will continue to be, a
demand for managers to do these jobs.

Management is not a closed system, all managers

deal and interact with different environments –
economic, technological, social, political, legal,
and ethical – in which they operate.

Organizing – is the process of grouping and assigning

activities and providing the necessary authority to
carry out the activities.

- the manager decides what jobs will have to be

filled and what the people who hold them must do.
1. Management is a process ( a systematic way of
doing things)
2. It utilizes resources efficiently.
3. It gets things done through and with others.
4. It achieves a stated goal.

Therefore we can define MANAGEMENT - as the

process by which a manager of an organization
efficiently utilizes resources to achieve its
overall goals at minimum cost and maximum
profit.

When we used collectively, the term

MANAGEMENT – refers to the group of people
who are responsible and accountable for
directing the workforce and seeing to it that
the organization meets its goals or objectives.

 The 21st century has brought with it a

new workplace, one in which everyone
must adapt to a rapidly hanging society
with constantly shifting demands and
opportunities. The economy has become
global and is driven by innovations and
technology and organizations have to
transform themselves to serve new
customer expectations. Today’s economy
presents challenging opportunities as
well as dramatic uncertainty. The new
economy has become knowledge based
and is performance driven.

The themes in the present context area ‘respect’,

participation, empowerment, teamwork and self
management. In the light of the above
challenges a new kind of leader is needed to
guide business through turbulence. Managers in
organizations do this task.

A manager is someone who coordinates and

oversees the work of other people so that
organizational goals can be accomplished. It is
not about personal achievement but helping
others do their job. Managers may also have
additional work duties not related to
coordinating the work of others.
Managers can be classified by their level in the
organization, particularly in traditionally
structured organizations—those shaped like a
pyramid

 1) First-line managers (often called supervisors)

are located on the lowest level of management.

 2) Middle managers include all levels of

management between the first-line level and the
top level of the organization.

 3) Top managers include managers at or near

the top of the organization who are responsible
for making organization-wide decisions and
establishing plans and goals that affect the
entire organization.

Management involves coordinating and overseeing

the work activities of others so that their activities
are completed efficiently and effectively.

1) Coordinating and overseeing the work of others is

what distinguishes a managerial position from a non
managerial one.

2) Efficiency is getting the most output from the least

amount of inputs in order to minimize resource
costs. Efficiency is often referred to as “doing things
right”

Effectiveness is completing activities so that

organizational goals are attained and is often
described as “doing the right things”

No two managers’ jobs are exactly alike. All managers

perform certain function, enact certain roles and
display a set of skills in their jobs.

Management Functions
According to the functions approach managers
perform certain activities to efficiently and
effectively coordinate the work of others. They can
be classified as

1) Planning involves defining goals, establishing

strategies for achieving those goals, and developing
plans to integrate and coordinate activities.
- a process of setting the objectives to be
accomplished by an organization during a future
time period and deciding on the methods of
reaching them.
2) Organizing involves arranging and structuring
work to accomplish the organization’s goals.
 - - Process of grouping and assigning activities
and providing the necessary authority to carry
out the activities.

3) Leading involves working with and through

people to accomplish organizational goals.
Staffing – the process of filling positions in the
organizational structure with the most qualified
people available.

4. Motivating – the process of getting people to

contribute their maximum effort toward the
attainment of organizational objectives.

5) Controlling involves monitoring, comparing,

and correcting work performance. Since these
four management functions are integrated into
the activities of managers throughout the
workday, they should be viewed as an ongoing
process and they need not the done in the above
sequence.
- the process of ensuring the achievement of an
organization’s objectives.

The two essential process are involved in the five

managerial functions :
1. Decision – making
2. Communicating

1. Decision – making - is the process of choosing from

two or more alternatives. In planning, for instance,
the manager decides among alternative ways of
accomplishing objectives. In organizing, he evaluates
different grouping of jobs and patterns of authority
and responsibility. Staffing, motivating and
controlling also require that decisions be made.

2. Communicating . It is impossible to perform the

managerial functions without communication, which
is the process of exchanging facts, ideas, opinions
and emotions between two or more persons. The
manager must receive much needed information to
be able to plan effectively. The plan must be
communicated if it is to be put into action. Proper
organizing, staffing, motivating, and controlling
cannot be done without communication. It must be
emphasized that most problems in management are
actually caused by breakdowns in communication.
Management: A Science and an Art

Management is a science. Knowledge about it has

been organized and systematized through the
application of the scientific method. Causal
relationships between management variables have
been ascertained and underlying principles have
been discovered. Techniques of management which
are susceptible to measurement and factual
determination have evolved. These techniques have
in part replaced reliance on subjective personal
judgment.

As a science, however, it is not as exact as the

physical sciences like physics and chemistry, for
management deals with the complex phenomena
about which little is known – the structure and
behavior of groups of people.

If art is defined as the “know how” to achieve a

desired result, then the management is an art.
Management uses organized body o knowledge
about it and applies it in the light of
environmental realities or contingencies to
achieve predetermined objectives.

Management is an art because managers use

judgment based on common sense and
experience rather than merely following a
prescribed set of management rules.
Management is an art because skill and
experiential character of the manager will
always be major factors in their performance
and the performance of their organizations.

If art is defined as the “know how” to achieve a

desired result, then the management is an art.
Management uses organized body o knowledge
about it and applies it in the light of
environmental realities or contingencies to
achieve predetermined objectives.

Management is an art because managers use

judgment based on common sense and
experience rather than merely following a
prescribed set of management rules.
Management is an art because skill and
experiential character of the manager will
always be major factors in their performance
and the performance of their organizations.
2) Informational roles include monitoring,
disseminating, and spokesperson activities.

3) Decisional roles include entrepreneur,

disturbance handler, resource allocator, and
negotiator.

Although the functions approach represents the

most useful way to describe the manager’s job,
Mintzberg’s roles give additional insight into
managers’ work. Some of the ten roles do not
fall clearly into one of the four functions, since
all managers do some work that is not purely
managerial.

Management Skills (ability, talents, expertise)

Managers need certain skills to perform the
challenging duties and activities associated with
being a manager. Robert L. Katz found through his
research in the early 1970s that managers need three
essential skills

1) Technical skills are job-specific knowledge and

techniques needed to proficiently perform specific
tasks. (scientific, practical)

2) Human skills are the ability to work well with other

people individually and in a group.

3) Conceptual skills are the ability to think and to

conceptualize about abstract and complex situations.

These skills reflect a broad cross-section of the

important managerial activities that are
elements of the four management functions
significant changes in the internal and external
environments have a measurable impact on
management. Security threats, corporate ethics
scandals, global economic and political
uncertainties, and technological advancements
have had a great impact on the manager’s job.
Two significant changes facing today’s
managers are importance of customers to the
manager’s job and importance of innovation to
the manager’s job organizations need managers.
An ORGANIZATION is a deliberate arrangement
of people to accomplish some specific purpose.
Organizations share three common
characteristics:
(1) Each has a distinct purpose
(2) Each is composed of people
(3) Each develops some deliberate structure so
members can do their work.
Although these three characteristics are
important in defining what an organization is,
the concept of an organization is changing. The
characteristic of new organizations of today
include: flexible work arrangements, employee
work teams, open communication systems, and
supplier alliances. Organizations are becoming
more open, flexible, and responsive to changes.

Organizations are changing because the world

around them has changed and is continuing to
change.
These societal, economic, global, and
technological changes have created an
environment in which successful organizations
must embrace new ways of getting their work
done. The importance of studying management
in today’s dynamic global environment can be
explained by looking at the universality of
management, the reality of work, and the
rewards and challenges of being a manager.

The Universality of Management: Management is

needed in all types and sizes of organizations, at all
organizational levels, and in all organizational work
areas throughout the world.

The Reality of Work: All employees of an organization

either manage or are managed.

Rewards and Challenges of Being a Manager

Challenges

a) Managers may have difficulty in effectively blending

the knowledge, skills, ambitions, and experiences of
a diverse group of employees.
b) A manager’s success typically is dependent on
others’ work performance.
Rewards

a) Managers have an opportunity to create a work

environment in which organizational members can
do their work to the best of their ability and help the
organization achieve its goals.
b) Managers often receive recognition and status in
the organization and in the larger community;
influence organizational outcomes; and receive
appropriate compensation.
c) Knowing that their efforts, skills, and abilities are
needed by the organization gives many managers
great satisfaction.

The manager of today must integrate management

skills with new approaches that emphasize the
human touch, enhance flexibility, and involve
employees.

Managerial and Organizational Performance

- The success of an organization will depend on
the managers function within the organization. The
performance of its organization as a group is a key
factor in the performance of a society or a nation.
- Drucker has argued that a manager’s
performance can be measured in terms of two
concepts: 1. efficiency and 2. effectiveness
As he puts it efficiency

MANAGEMENT YESTERDAY AND TODAY

Organizations and managers have existed for

thousands of years. The Egyptian pyramids and
the Great Wall of China were projects of
tremendous scope and magnitude, and required
good management. Regardless of the titles given
to managers throughout history, someone has
always had to plan what needs to be
accomplished, organize people and materials,
lead and direct workers, and impose controls to
ensure that goals were attained as planned.
Two historical events significant to the study of
management are work of Adam Smith, in his
book,’ The Wealth of Nations’, in which he
argued brilliantly for the economic advantages
of division of labor (the breakdown of jobs into
narrow, repetitive tasks).

The Industrial Revolution is second important

pre-twentieth-century influence on
management. The introduction of machine
powers combined with the division of labor
made large, efficient factories possible.
Planning, organizing, leading, and controlling
became necessary activities.

There are six major approaches to management.

They are explained as follows:

1) SCIENTIFIC MANAGEMENT

Scientific management is defined as the use of

the scientific method to determine the “one best
way” for a job to be done. The most important
contributor in this field was Frederick W.
Taylor who is known as the “father” of
scientific management. Using his principles of
scientific management, Taylor was able to
define the “one best way” for doing each job.

Frank and Lillian Gilbreth were inspired by

Taylor’s work and proceeded to study and
develop their own methods of scientific
management. They devised a classification
scheme to label 17 basic hand motions called
therbligs in order to eliminate wasteful motions.

Guidelines devised by Taylor and others to

improve production efficiency are still used in
today’s organizations. However, current
management practice is not restricted to
scientific management practices alone.
Elements of scientific management still used
include:
1. Using time and motion studies
2. Hiring best qualified workers
3. Designing incentive systems based on output
2) GENERAL ADMINISTRATIVE THEORIES

This group of writers, who focused on the entire

organization, developed more general theories of
what managers do and what constitutes good
management practice. Henri Fayol and Max Weber
were the two most prominent proponents of the
general administrative approach. Fayol focused on
activities common to all managers. He described
the practice of management as distinct from other
typical business functions.

He stated 14 principles of management which are as

follows:
1. Division of Work
2. Authority
3. Discipline
4. Unity of Command

5. Unity of Direction
6. Subordination of individual interest to group
interest
7. Remuneration
8. Centralization
9. Scalar Chain
10. Order
11. Equity
12. Stability
13. Initiative
14. Esprit de corps