Republic of the Philippines

Polytechnic University of the Philippines

COLLEGE OF BUSINESS ADMINISTRATION
Department of Human Resource Management

LESSON 1: MANAGEMENT CONCEPTS

OVERVIEW

An organization is a group of people working together in a structured and coordinated fashion to

achieve a set of goals, which may include profit, the discovery of knowledge, national defense (such
as the Philippine National Police or Philippine Airforce), the coordination of various charities (such
as the shelter for the abandoned children and elderly), or social satisfaction (this are fraternity or
sorority).

To understand fully the administrative office management concept, the foundation of which is
covered in this lesson, one needs to be aware of its “roots” and how the evolution of management
theory has enabled the concept to develop to its current state. Certain aspects of each of the
various movements comprising the evolution of management theory can be found as integral
aspects of the administrative office management concept.

An administrative office manager spends a considerable portion of his/her time with the organizing
function. The extent to which the organizing function is performing effectively is a significant
determinant of whether organizations maximize the efficient use of their resources.

Communication within an organization often has a significant impact on determining its success.
Communication is also one of the significant activities of the administrative office manager. In fact,
the communication proficiency of the administrative office manager is a significant determinant of
his/her success.

LEARNING OUTCOMES
After successful completion of this lesson, you should be able to:

Appreciate the essence of taking up the course and the importance of possessing right
attitude and behavior in the workplace
Develop and explain the appropriate philosophy regarding the organizing function of
administrative office management Outline the process of communication.
Develop an appropriate management strategy for use by an administrative office manager,
taking into consideration the evolutionary nature of the broader field of management.
Develop an appropriate philosophy regarding the important role communication plays in
administrative office management.

COURSE MATERIALS

THE MANAGERIAL PROCESS

Evolution of management theory

§ Scientific Management – Popular during the late 1800s and early 1900s and
conceptualized by Frederick W. Taylor. It has two goals:
Two goals of Scientific Management are:
1. Increase output of employees
2. Improve operating efficiency of management

Instructional Material – ADMINISTRATIVE OFFICE MNGT. (HRMA 30013) Compiled by: PROF. MARIFEL I. JAVIER 1
 Republic of the Philippines
Polytechnic University of the Philippines
COLLEGE OF BUSINESS ADMINISTRATION
Department of Human Resource Management

Scientific Management – is Based on time and motion study

Time study — is concerned with amount of time task completion takes
Motion study — is concerned with efficiency of motion involved in task performance

§ Administrative Movement – Popular during the 1930s and conceptualized by Henri Fayol
Concepts:
1. Focused on whole firm
2. Management functions were identified during this era
3. Comprised of a group of universal principles involving management

§ Human Relations Movement – it was emerged during the 1940s and 1950s. Elton Mayo
was a proponent. Its concepts are:
1. Emerged because of a failure of organizations to treat their employees in humane
manner
2. Believed that the human element had a greater impact on determining output and
reaction to change than did the technical factora

§ Modern Movement – It began in the early 1950s with two approaches:

Quantitative approach - Known as the operations approach.
a. Is concerned with decisions about which operations should be undertaken.
b. Is concerned about how they should be carried out

Nonquantitative approach - Known as the behavioral sciences approach.

a. concerned with the scientific study of observable and verifiable human behavior

Other management concepts are the following:

§ Contingency Management – It recognizes that no one best way exists in all situations.

§ Total Quality Management (TQM) – It puts emphasis on teamwork, empowerment of

employees, and organization-wide recognition.

Common elements:
1. Focus on customer satisfaction.
2. Ongoing improvement of the organization's products and/or services.
3. Work teams based on empowerment, trust, and cooperation.
4. Statistical measurement techniques designed to identify causes of production problems
and to provide benchmark data.

§ Theory Z – this theory has the following assumptions:

1. Employees have lifetime employment.
2. Employees are hired for their specific talents.
3. Decision-making uses a consensus process.
4. Managers and employees trust one another.
5. Managers are concerned about employees' well-being.

Instructional Material – ADMINISTRATIVE OFFICE MNGT. (HRMA 30013) Compiled by: PROF. MARIFEL I. JAVIER 2
 Republic of the Philippines
Polytechnic University of the Philippines
COLLEGE OF BUSINESS ADMINISTRATION
Department of Human Resource Management

RESPONSIBILITIES OF THE ADMINISTRATIVE OFFICE MANAGER

Challenges affecting the administrative office manager

The following are challenges that an Administrative Office Manager are facing in the
organization. This are 1.) Serving as change agent, 2.) Coping with new technology, 3.) Coping
with government regulations, 4.) Enhancing organizational productivity, 5.) Dealing with office
systems that fail to perform as expected, 6.) Accommodating Diversity, 7.) Accommodating
globalization

Qualifications of administrative office managers

1. Completion of relevant courses
2. Specialized knowledge of pertinent areas
3. Capable of leading
4. Commitment to ethical behavior
5. Capable of delegating

Roles
Set of behaviors and job tasks employees are expected to perform, including the following:

a. Decision-making roles
b. Information-management roles
c. Interpersonal roles

Abilities individuals possess that enable them to carry out their specified roles well.

Technical skills – this are often important in selecting an individual for his or her first
managerial job. Nature of skills needed is determined by the manager's areas of responsibility.
Skills are typically acquired through training.

Conceptual skills – this enable the manager to perceive quickly how one phenomenon may
impact on another. Help managers determine the full impact of a change or a variety of
changes. Often seen as possessing a "fifth" sense in dealing with organizational matters. Some
conceptual skills are learned; others are intuitive.

Human skills – this enable a manager to maximize cooperation of subordinates, motivating

them, or maintaining their loyalty. These skills give the manager greater insight into working
effectively with each subordinate in each situation. Can be learned through on-the-job training or
through courses.
Instructional Material – ADMINISTRATIVE OFFICE MNGT. (HRMA 30013) Compiled by: PROF. MARIFEL I. JAVIER 3
 Republic of the Philippines
Polytechnic University of the Philippines
COLLEGE OF BUSINESS ADMINISTRATION
Department of Human Resource Management

THE ORGANIZING PROCESS

An administrative office manager spends a considerable portion of his/her time with the organizing
function. The extent to which the organizing function is performing effectively is a significant
determinant of whether organizations maximize the efficient use of their resources.

Organizing function is helpful by assuring more efficient use of the organization's resources.
- Improving employee understanding of job duties and responsibilities.
- Improving employee morale.
- Providing a sense of direction for each of the organization's functional areas.

Organization's objectives – This should be written in context of outcomes, understood, and

accepted by employees, be measurable, contain a time reference, and be challenging but
attainable.

1. Span of control - Refers to the number of subordinates an individual can supervise.

2. Interrelated functions – Organization's functions have become so interrelated that when a
problem arises in one functional area, other related functions are also likely to be affected.
3. Chain of command – Identifies who reports to whom within an organization.
4. Unity of command – States that each employee should be directly responsible to one
supervisor.
5. Authority and responsibility – States that individuals who are given the responsibility to
undertake a task must also be given an appropriate amount of authority to ensure task
completion.
6. Work assignment – States that each employee's work assignments should be based on
his/her special strengths and talents.
7. Employee empowerment – States that empowered employees are encouraged to participate
as much as possible in making decisions that affect all aspects of their job tasks.

CENTRALIZATION VS. DECENTRALIZATION

Centralization – it places related activities under jurisdiction of one individual.

Decentralization – it places related activities under jurisdiction of several individuals throughout
the organization.
Factors that determine feasibility of centralization:
1. Nature of the organization.
2. Size of the organization.
3. Diversification of the organization.
4. Conformity to standardized processes.
5. Quality of personnel.
6. Distribution of operations.
7. Attitude of personnel.

Instructional Material – ADMINISTRATIVE OFFICE MNGT. (HRMA 30013) Compiled by: PROF. MARIFEL I. JAVIER 4
 Republic of the Philippines
Polytechnic University of the Philippines
COLLEGE OF BUSINESS ADMINISTRATION
Department of Human Resource Management

ORGANIZATIONAL STRUCTURES
ORGANIZATIONAL
ADVANTAGES DISADVANTAGES
STRUCTURE
Line structure Employees are fully aware of Fails to provide
Is the oldest and simplest of the boundaries of their jobs. specialization needed
structures. It has direct Decision making is expedited. when organization begins
authority flowing vertically from Is a simple structure to to grow.
the top. understand.
Line managers need to
Is generally found in small Employees can be held begin to perform
organizations because support directly accountable when specialized activities.
staff is needed once they begin they fail to perform as
to grow. expected.
Line and staff structure 1. Line employees have time 1. Line and staff
Has line authority like line to focus on those activities employees sometimes
structure. directly related to the conflict with one
organization's primary another.
Specialized staff activities are objectives.
added that support line 2. Line employees
activities. Staff employees 2. Staff employees can lend sometimes suppress
assist the line function. their specialized support. the talents of staff
employees.
Difference between line and 3. Flexibility of staff units
staff employees: Line facilitates undertaking new
employees are directly projects.
concerned with the
organization's primary
objectives. Staff employees
support the line employees.
FUNCTIONAL STRUCTURE ADVANTAGES DISADVANTAGES
Tends to parallel the 1. It provides expertise by 1. Some employees may
departments in many functional specialists. appear to have two or
organizations. more supervisors.
2. It prevents employees from
Line managers have both line slighting certain specialized 2. Some managers
and functional authority. areas in the organization. evade those areas for
which they have
Line managers can take functional authority.
disciplinary action against
those for whom they have line
authority.

Line managers cannot take

disciplinary action against those
for whom they have functional
authority.

Instructional Material – ADMINISTRATIVE OFFICE MNGT. (HRMA 30013) Compiled by: PROF. MARIFEL I. JAVIER 5
 Republic of the Philippines
Polytechnic University of the Philippines
COLLEGE OF BUSINESS ADMINISTRATION
Department of Human Resource Management

PRODUCT STRUCTURE ADVANTAGES DISADVANTAGES

Company's products 1. Enables divisions to Divisions can "go their own
provide the basis for its develop processes that way" to the extent that they do
structure. best meet their needs. not work toward common
Each major product is given goals.
division status. 2. Divisions can coordinate
their own activities Problems of some divisions
Incorporates line and staff without constraint from may eventually be felt
structure into these main unit. throughout the entire
divisions. organization.
Each product tends to
operate independently of
other divisions.
COMMITTEE ADVANTAGES DISADVANTAGES
STRUCTURE
Is often used in conjunction 1. Recommendations are 1. It sometimes takes a
with line, line and staff, and often widely accepted long time to function properly.
functional structures.
2. Widely varying views of
Some committees perform committee members
important managerial broaden the nature of their
functions; others are recommendations.
advisory.
Its use reduces the risk of
making an incorrect decision.
MATRIX STRUCTURE ADVANTAGES DISADVANTAGES
Is often used by 1. Allows companies to Employees often have two
organizations undertaking assign employees based supervisors.
complex projects. on their expertise.
Employees may experience
Results in the formation of 2. Helps companies avoid job-related pressures.
temporary new units to having to hire new
accommodate the employees for a project. Managers may have
undertaking of a new difficulties coordinating
project. 3. Enables companies to employee activities.
adapt quickly to new
Involves temporarily situations.
borrowing employees from
other areas of the
organization and assigning
them to the new temporary
unit.

ORGANIZATION CHART – an organization chart should have the following characteristics such as
it depicts formal relationships between various individuals and the organizational structure,
Instructional Material – ADMINISTRATIVE OFFICE MNGT. (HRMA 30013) Compiled by: PROF. MARIFEL I. JAVIER 6
 Republic of the Philippines
Polytechnic University of the Philippines
COLLEGE OF BUSINESS ADMINISTRATION
Department of Human Resource Management

identifies lines of authority, it provides employees a better understanding of the formal structure of
the organization and helps identify areas of overlapping responsibility that should be eliminated.
Also, an organizational chart should Identify promotional opportunities for job applicants and new
employees as well as to Identify areas suitable for training and orientation.

Guidelines for preparing organization charts

1. Place individuals/departments in relation to their hierarchical level.
2. Identify vertical and horizontal authority by solid lines.
3. Identify functional authority by dotted lines.
4. Use complete titles on the chart.
5. Include on the chart the name of organization and the date the chart was prepared.

Informal organization – an information organization refers to the spontaneous personal and

social relationships that exist within organizations. There are two (2) common elements of
information organization:
1. Informal groups
2. Informal communication patterns

THE COMMUNICATION PROCESS

Communication within an organization often has a significant impact on determining its success.
Communication is also one of the significant activities of the administrative office manager. In fact,
the communication proficiency of the administrative office manager is a significant determinant of
his/her success.

There are variables affecting the communication process, this are the following: Nature of
message, background of sender or even the background of receiver. The Relationship between
sender and receiver, the time of day and the Unusual circumstances of those communicating.

Elements of the communication process – there are six (6) elements in a communication
process. First is the Sender, second, Receiver, third, Message, fourth, the Channel, fifth, is the
feedback and last is Noise.

Encoding is a process that involves translating the thoughts or information into words, signs, or
symbols.

Decoding occurs when the receiver interprets the message and gives it meaning from his or her
own perspective.

COMMUNICATION FLOWS IN THREE DIRECTIONS

In the organization, there are three ways od communication direction. The UPWARD in which
information comes from the Top management down to its subordinates. Then, in the organization
we also have DOWNWARD, this is where information comes from subordinates up to the Top
management to act on certain issues or concern within the organization and the last way of
communication is the HORIZONTAL (lateral) communication. This is either within the level of field
or specialization. Example of this is inter-department like accounting department to finance
department and the like

Grapevine – The grapevine is a type of informal communication in which it is often a fast and
surprisingly accurate communication process. That management sometimes uses the grapevine to
assess employee reaction to a proposed change. This is earthier via office outlook or what the
Instructional Material – ADMINISTRATIVE OFFICE MNGT. (HRMA 30013) Compiled by: PROF. MARIFEL I. JAVIER 7
 Republic of the Philippines
Polytechnic University of the Philippines
COLLEGE OF BUSINESS ADMINISTRATION
Department of Human Resource Management

organization called inter-office communication channel, or it may be an announcement thru bulletin

board in the office

Reasons people belong to small groups are the following reasons such as 1. Security, 2. power or
strength in numbers, 3. Ready access to advice and last is Moral support.

Below is a chart of the different communication flows directions description to further understand.

DOWNWARD UPWARD HORIZONTAL

COMMUNICATION COMMUNICATION COMMUNICATION
This is used by This communication is This communication, which
administrative office used by employees to takes place between
managers for the following: convey to their supervisors individuals of equal
and managers their hierarchical rank, is more
1. To keep their feelings, ideas, aspirations, informal than either
subordinates informed. and attitudes. downward or upward
2. Give them job-related communication.
instructions.
3. Provide them with
feedback regarding their
job performance.
Factors to consider in Variables that affect the Functions of horizontal
selecting appropriate success of type of communication are the
downward medium of communication: following:
communication are the 1. The nature of the 1. It helps employees fulfill
following: relationship between the their socialization needs
subordinate and the 2. It helps employees and
1. Permanency of record. manager. departments coordinate
2. Immediacy – Need for 2. The quality of the their activities with one
evidence of understanding subordinate's presentation another.
or feedback. of the message. 3. It helps others better
3. Formality 3. The extent to which the understand individual and
content of the message is departmental
positive or negative. responsibilities.
4. The timeliness of the 4. It helps individuals solve
message. their own problems
5. The extent to which the before others must
substance of the message become involved.
is useful.
Factors that affect the
success of downward
communication are the
following:
1. Appropriateness of
communication channel.
2. Timing and clarity of the
message.
3. Attitudes of those involved
in the communication
process

Instructional Material – ADMINISTRATIVE OFFICE MNGT. (HRMA 30013) Compiled by: PROF. MARIFEL I. JAVIER 8
 Republic of the Philippines
Polytechnic University of the Philippines
COLLEGE OF BUSINESS ADMINISTRATION
Department of Human Resource Management

Nonverbal cues impact the communication process by:

- Confirming-these cues confirm a verbal message.
- Replacing-these cues replace spoken words.
- Contradicting-these cues contradict the verbal message, adding an element of confusion to
the communication process.
- Emphasizing-these cues support the verbal message.

Nonverbal communication is expressed by the following such as 1.) Body language, 2.)
Paralanguage, 3.) Proxemics and 4.) Time.

BODY LANGUAGE PARALANGUAGE

PROXEMICS INVOLVES
INVOLVED INVOLVES
Gestures such as the This is a type of non-verbal Structure of territory and
following communication to be said as space
1. Kinesics or paralanguage communication
posture such as Ambience of the room
2. Oculesics or facial 1. Speaking range
expressions 2. Speaking rate Seating arrangement
3. Eye contact 3. Pitch
4. Tactilics of touch 4. Volume Artifacts and objects in
5. Pauses room
6. Intrusions

Here are Barriers to effective communication, taking things or people for granted, Incorrect
assumptions regarding subordinate interest, Characteristics of upward, downward, and horizontal
communication, Semantics (word meanings) and Perception of something.

ELEMENTS OF THE LISTENING PROCESS

Internal elements
- The listener must be able to hear the message.
- The listener must be able to attach proper meaning to the words in the message.
Contextual elements
- Are concerned with the environment in which communication occurs.
- Are affected by noise, time constraints, accessibility of sender and receiver to each
other, and the communication channel being used.
Relationship elements
- A cordial relationship enhances the listening process.

STEPS IN THE DECISION-MAKING PROCESS:

1. Defining and limiting the problem (or situation).
2. Analyzing the problem (or situation).
3. Defining criteria to be used in evaluating various solutions.
4. Gathering the data/information.
5. Identifying and evaluating possible solutions.
6. Selecting the best solution.
7. Implementing the solution.

Instructional Material – ADMINISTRATIVE OFFICE MNGT. (HRMA 30013) Compiled by: PROF. MARIFEL I. JAVIER 9
 Republic of the Philippines
Polytechnic University of the Philippines
COLLEGE OF BUSINESS ADMINISTRATION
Department of Human Resource Management

The following are the Sources of conflict; 1.) Limited resources that must be shared, 2.)
Incompatibility of goals, 3.) Organizational reward systems thought to treat some unfairly, 4.)
Changes in the organizational environment.

This are the Steps in the nominal group technique, first the Listing, second, the Recording, third
Voting, forth the Discussing, and the Final voting

SUPPLEMENTAL READING

WORKING KNOWLEDGE
Harvard Business School
Business Research for Business Leaders

Top restaurant operators share their experiences attempting to survive the

pandemic, and how they see the future.
by Michael S. Kaufman, Lena G. Goldberg, and Jill Avery
16 JUL 2020

It has never been easy to make money in the restaurant industry. A highly fragmented sector
dominated by 70 percent independent owners and operators, the average restaurant’s annual
revenue hovers around $1 million and generates an operating profit of just 4-5 percent. A financially
sustainable business model for small independents is often elusive.
So, when a crisis of the magnitude of the COVID-19 global pandemic forces restaurants to close,
and their revenue drops to zero overnight, things get particularly dire. Unlike the oligopolistic airline
industry, where a few large firms can easily band together to lobby for government support, the
concerns of restaurant owners and the unique realities and concerns of their industry remain largely
unaddressed by government programs designed to help small businesses.
Two months into the pandemic, 40 percent of America’s restaurants were shuttered and 8 million
employees out of work—three times the job losses seen by any other industry. While some
restaurants began reopening in May and June, most featured only takeout, delivery, or outdoor
dining options due to local restrictions. The number of diners in June remained down more than 65
percent year over year, and the National Restaurant Association projected an industry revenue
shortfall of $240 billion for the year.

Second-order effects of restaurant closures ripple through the American economy, bringing
economic pain to farmers, fishermen, foragers, ranchers, manufacturers, and other producers who
supply the industry. Equally hit are supply chain partners who move goods across the country.

"IT’S GOING TO TAKE SOME TIME TO RETOOL OPERATING MODELS TO BE ABLE TO

SUCCEED IN THIS NEW ENVIRONMENT.”

Coming into 2020, the restaurant industry was thriving. Within a few short months, we now see an
industry back on its heels, massively disrupted by an external force so unprecedented it is almost
unfathomable.

The severity of this business interruption will continue to endure and be further complicated by the
mandate of many local governments that dine-in capacity be limited to 25-50 percent even after
restaurants are permitted to reopen. It is still an open question how skittish the American public will
be about returning to one of its favorite past times.

Instructional Material – ADMINISTRATIVE OFFICE MNGT. (HRMA 30013) Compiled by: PROF. MARIFEL I. JAVIER 10
 Republic of the Philippines
Polytechnic University of the Philippines
COLLEGE OF BUSINESS ADMINISTRATION
Department of Human Resource Management

As a result, the restaurant industry that emerges from the global pandemic will likely look
fundamentally different from the one that existed in early March. How will the COVID-19 crisis
change the landscape of the industry, and what do restaurants need to do to survive? And what
should consumers, desperate to return to their favorite restaurants but wary about whether it is safe
to do so, expect?

Stories from the inside

The future of the restaurant industry is especially of concern to us. We collectively share 35 years of
restaurant and food industry experience, navigating our way through as waitstaff and bartenders, as
managers and senior leaders of restaurant groups and the industry’s primary trade association as
well as the food and beverage brands that supply them. We’ve invested in the industry and served
as corporate board members and leaders of industry coalitions, and we now, as educators, prepare
future founders and leaders of restaurants to operate in this unique industry. We have spent the last
few years in deep study of the restaurant industry to create and deliver an MBA-level course at
Harvard Business School called Challenges and Opportunities in the Restaurant Industry.

Leveraging this work, we virtually convened in April a diverse group of restaurateurs, chefs,
investors, and industry leaders to participate in a course capstone panel discussion of the COVID-
19 crisis and what it means for the future of the industry. What we heard was that the restaurant
industry was in deep economic trouble and that ill-conceived government bailout plans were not
helping to shore it up. However, we also heard that restaurateurs remained steadfastly committed
to their goal of nurturing and nourishing people, providing a place of succor and community in a
strange new world. Our conversations with the panel and our field research inform our vision for the
future of the industry and the advice to restaurant owners, staff, investors, and patrons that we offer
below.

How did it deteriorate so quickly?

Restaurants are universally labor intensive—by any productivity metric they rank among the least
productive industries. Labor is required to both produce food in the kitchen and serve to consumers
in the dining area. On average, restaurants spend 30 percent of their revenue on labor. With
increasing focus on fair wages and legislated wage increases, restaurants may easily exceed that
average. Moreover, restaurants spend roughly equivalently for cost of goods sold (COGS).
Independent restaurants typically purchase without the ability to hedge or otherwise lock in pricing,
and so are at the mercy of supply-price fluctuations.

A third cost challenge for restaurants is occupancy. Locations are generally leased on a triple net
fixed rent basis, occasionally with an additional percentage rent above a specified revenue
threshold. Normatively, the industry seeks to spend no more than 10 percent of revenue on
occupancy costs, but when entering leases, restaurateurs may well be optimistic about their
projected revenue and therefore agree to a fixed rent expense that winds up exceeding that
percentage of actual revenue. Other expenses—insurance, credit card processing, marketing,
utilities, repairs—mount up.

Assuming adequate working capital upon opening, a restaurant’s cash from daily sales is used to
pay for supplies previously purchased as well as for payroll, rent, and other expenses. As a result,
restaurants typically operate with modest cash reserves. If revenue is disrupted, accrued payables
as well as payroll and rent remain to be settled. When JPMorgan Chase sampled almost 600,000
businesses in 12 representative industries, restaurants had the lowest cash buffer.

Instructional Material – ADMINISTRATIVE OFFICE MNGT. (HRMA 30013) Compiled by: PROF. MARIFEL I. JAVIER 11