Management and

Organization

Midterm Coverage
 OBJECTIVES
At the end of the lessons, the students are
expected to:

› Name the various forms of organization

› Recognize decision making as responsibility of
management
› Define the meaning and describe the nature of
planning
REVIEW OF LESSONS
 What is business?

- All profit-seeking activities and enterprises that

provide goods and services.

Kinds of Business
1. Commerce – buying and selling of goods
and services.
2. Industry – production
3. Services – sells service to the buyer
 Business Environment

- refers to the factors or elements affecting

business organization. It divided into two:

1. Internal Business Environment

2. External Business Environment
 FORMS OF BUSINESS
ORGANIZATIONS
1. Sole Proprietorship
2. Partnership
3. Corporations
 Sole Proprietorship

 Owned by one person

 Owner keeps all the profits
 Relatively unlimited control
 Easy to form
 Partnership

 Owned by two or more people

 Share profits equally
 Share all the risk equally
 Corporations

 Legal entity/artificial person (including right

to conduct a business, to own, to sell proper
ty, to borrow money, and to sue or be sued.
)
 Separate from its owners
 Owners risk losing their investments
 Owners are called stockholders
 Modifications of the Corporate
Form of Ownership
 The corporate form of ownership has been
modified to cater to special needs.

1. Cooperatives
2. Mutual Companies
 Cooperative
 An organization composed of individuals or
small businesses that have banded together
to reap the benefits of belonging to a larger
organizations.
Types of Cooperatives:
1. Credit union
2. Producers cooperative
3. Marketing cooperative
4. Consumers cooperative
5. Service Cooperative
1. Credit Union – accepts deposits from members
and lends money to its members at a very reasona
ble interest rate.
2. Producers Cooperative- assist one another in
the procurement of raw materials, machinery, equi
pment, and other time-saving devices.
3. Marketing cooperative – assist members in
the marketing of their produce.
4. Consumers Cooperative- provides members
with quality goods and services at reasonable p
rices.
5. Service cooperative – makes services readily
available at a lower price.
 Mutual Companies

 Is a financial-service firm such as:

1. Mutual Saving Banks – owned by depositors

and specialized in mortgage loans.
2. Mutual Insurance Company – organized and
owned by its policyholders.
 PLANNING

 Defined as selecting the best course of

action in anticipation of future trends so that
the desired result may be achieved.
 Planning at Various
Management Levels
1. Strategic Planning for Top Management
- refers to the process of determining the major
goals of the organization and the policies and strate
gies for obtaining and using of resources to achieve
those goals.

2. Intermediate Planning for Middle Management

- refers to the process of determining the
contributions that subunits can make with allocated
resources.
3. Operating Planning for Lower Management
- is the process of determining how specific
tasks can best be accomplished on time with a
vailable resources.
 The Planning Process

1. Setting Organizational, Divisional, or Unit

Goals
2. Developing Strategies or Tactics to Reach
Goals
3. Determining Resources Needed
4. Setting Standards
 Types of Plans

1. Functional Area Plans

a. Marketing Plan
b. Production Plan
c. Financial Plan
d. Human Resources Plan
2. Plans with time Horizon
a. Short-range plan
b. Long-range plan
3. Plans with Varied Frequency of use
a. Standing Plans
i. Policies
ii. Procedures
iii. Rules
b. Single-Use Plans
i. Budget plan
ii. Program plan
iii. Project Plan
 Parts of the Various Functional
Area Plans
1. Marketing Plan
2. Production Plan
3. Financial Plan
4. Human Resource Plan
5. Strategic Plan
Quiz # 1