ORGANIZATION & MANAGEMENT REVIEWER

WEEK 1: FUNCTIONS, TYPES & THEORIES OF MANAGEMENT

Management
- Is the process of coordinating and overseeing individuals to efficiently achieve
organizational goals.
- It spans the entire organization and requires coordination, efficiency, and effectiveness.
- Managers play a crucial role, distinct from other employees, and are essential for achieving
organizational objectives.

FUNCTIONS OF MANAGEMENT
1. Planning
- Setting goals and outlining steps to achieve them.
2. Organizing
- Structuring resources and tasks to implement plans.
3. Staffing
- Recruiting and managing employees.
4. Leading
- Motivating and guiding employees to achieve goals.
5. Controlling
- Monitoring performance and making necessary adjustments.

Coordination, Efficiency, and Effectiveness

- These are essential practices in management for coordinating and overseeing work
performance.
- The five management functions rely on coordination, efficiency, and effectiveness to
succeed.
- Managers at all levels must be aware of these practices.
- Coordination ensures harmonious teamwork; efficiency maximizes output from minimal
input; and effectiveness means doing things correctly to achieve organizational goals.

NATURE AND CONCEPTS OF MANAGEMENT: Evolution of Management Theories

Scientific Management Theory:

- Focuses on improving efficiency.
- Uses task analysis, standardization, and training.
- Developed by Frederick Taylor.

General Administrative Management Theory:

- Concentrates on the manger’s functions and what makes up a good management practice or
implementation.
- Developed by Henri Fayol.
Total Quality Management (TQM):
- Aims for continuous improvement of processes and products.
- Focuses on customer satisfaction and employee involvement.
- Uses systematic problem-solving.
- Developed by W. Edwards Deming and Joseph M. Juran.

Organizational Behavior Approach:

- Studies human behavior within organizations.
- Emphasizes motivation, leadership, teamwork, and communication.
- Aims to improve productivity by enhancing work environment and relationships.
- Robert Owen, Mary Parker Follett, Hugo Monsterberg, and Chester Barnard were the early
supporters of this theory.

WEEK 2: BASIC CONCEPTS AND THEORIES OF MANAGEMENT

MANAGERIAL SKILLS
Technical Skills
- involves a person's knowledge and ability to use processes or techniques effectively.
- essential for solving and troubleshooting issues that employees cannot handle.

Human Skills
- helps managers at all levels to relate well with people.
- They facilitate communication, leadership, inspiration, and motivation.
- These skills enable effective cooperation and teamwork.

Conceptual Skills
- Helps managers find solutions to complex problems by visualizing abstract situations and
understanding the organization as a whole.
- Enables them to analyze complex scenarios, process information rationally, and generate
ideas.

MANAGERIAL ROLES
Interpersonal Role
1. Figurehead
- Performs ceremonial duties such as greeting visitors and representing the company.
2. Leader
- Issues commands and makes decisions to achieve organizational goals.
3. Liaison
- Coordinates with people outside their unit, links departments, and forms alliances with other
organizations.
Informational Role
1. Monitor
- Scans the environment for information.
2. Disseminator
- Shares information from external sources with organizational members.
3. Spokesperson
- Communicates plans and results within and outside the organization, acting as an industry
expert.

Decisional Role
1. Entrepreneur
- Initiates and supervises improvement projects.
2. Disturbance Handler
- Takes corrective action to address unexpected problems.
3. Resource Allocator
- Decides on the distribution and quantity of resources.
4. Negotiator
- Represents the organization in major negotiations.

Manager
- plans, organizes, staffs, leads, and controls individuals to achieve organizational goals.
- manages activities, supervises, and is responsible for the work of their team or department.

MANAGERIAL LEVELS
Top-Level Managers (Corporate Managers)
- Focus on long-term goals and overall organizational effectiveness.
- Examples include CEOs, COOs, presidents, and vice presidents.
- Oversee all human resources and are responsible for overall performance and strategy
formulation.

Middle-Level Managers (Tactical Managers)

-handles department operations, set specific objectives based on top-level goals, and manage
other managers.
- they interact with customers and frontline managers, coordinating with peers to implement
plans.

Lower-Level Managers (Operational Managers)

- Supervises daily activities, act as a briged between management and staff, and lead
employees to achieve organizational goals.
TYPES OF MANAGERS
Line Managers
- Focus on achieving organizational goals with final decisions on operations that must be
implemented.

Staff Managers
- Provide support and expertise to line units by advising line workers.

Administrators
- Manage government or nonprofit organizations, such as schools, provinces, or hospitals.

WEEK 3: THE VARIOUS FORCES/ELEMENTS INFLUENCING LOCAL AND

INTERNATIONAL BUSINESS USING PEST AND SWOT STRATEGIES

Business Environment
- Classified into two types (internal & external) that affects a company's operations.
Internal Environment
- conditions and forces within the organization
- Includes the following:

1. Owners
- has legal property rights to business
2. Board of Directors
- elected by the stockholders
- incharge of overseeing the general management of the firm
3. Employees
- major element in the organization
- perform daily operations
4. Managers
- responsible for combining and coordinating the resources of an organisation.
5. Culture
- collective behavior of humans in an organisation.
External Environment
- also known as Immediate Operational Environment
- has profound impact on the operations of a firm
- Includes the following:

1. Suppliers
- provide input resources (raw materials) to an organisation
[Link]
- helps other organisations sell their goods or services to customers.
3. Customers
- buys the goods and services of an organisation.
4. Competitors
- produce similar goods and services

Indirect Environment Factors

- Forces impacting businesses and organizations include:

1. Political-Legal Environment
- Involves laws, regulations, and government actions affecting enterprises.
2. Economic Environment
- Assessed through the economic system, business cycle, and economic policies.
- Main effects on businesses are fiscal and monetary policies:

Fiscal Policies
- Concerned with government spending and taxation to enhance economic conditions.

Monetary Policies
- Managed by the Central Bank of the Philippines to regulate money circulation.

3. Socio-Cultural Environment
- Includes people's lifestyles, attitudes, beliefs, education, and customs.
- Society’s view of a business depends on its responsiveness to societal needs and aspirations.
4. Technological Environment
- Involves innovations and improvements in methods, machines, and materials.

PEST Analysis
- A management method where an organisation can assess major external factors that can
influence its operation.

P - political
E - economic
S - social
T - technological
SWOT or TOWS Analysis
- found within the business environment in which the organisation operates.
- a systematic identification

S - strength (things your company does well)

W - weakness (emerging needs of your product)
O - opportunity (things your company lacks)
T - threats (emerging competitors)

Environmental Analysis or Scanning

- Environmental analysis involves scanning for changes or trends that could create
opportunities or threats to an organization’s strategies.
- It can be done informally or with advanced analytical tools, depending on the firm's
approach and resource availability.

Stages of International Business

1. Outsourcing
- also called Global Sourcing
- engaging in international division of labor
- manufacturing can be done in the cheapest sources of labor and supplies.
2. Importing
- bringing goods, services or capital into the home country from abroad.
3. Exporting
- making of a product or in the firm's domestic marketplace and selling it to foreign countries.
4. Strategic Alliances
- involves two or more firms jointly cooperating for mutual gain.
- involves partnership between an organization and a foreign company which share resources
and knowledge in developing new products or building production activities.
5. Joint Venture
- specific type of strategic alliance
- partners agree to form a separate, independent organization for some business purpose.
- occurs when two existing companies collaborate to form a third company.
6. Wholly Owned Affiliates (Build or Buy)
- companies enter foreign companies through wholly owned affiliates.
Environmental Challenges of International Business
1. Economic System
- Many countries are moving toward market economies, where consumers freely choose
products and services.
2. Natural Resources
Resources vary by country and are vital for economic activities.
3. Infrastructure
Includes physical elements like roads, railways, schools, hospitals, and communication
systems essential for international business.

Political/Legal Environment
- second environmental challenge

1. Government Stability
- Refers to the government's ability to remain in power and the consistency of its policies
towards business.
2. Incentives for International Trade
- Includes measures like reduced loan interest rates, construction subsidies, and tax incentives
to attract foreign business.
3. Controls on International Trade
- Governments may impose controls to protect domestic businesses from foreign competition,
including tariffs, quotas, export restraint agreements, and "buy national" laws.

Tariff
- A tax on goods shipped across national boundaries, used to discourage imports or raise
government revenue.
Quota
- A limit on the quantity or value of traded goods to protect domestic market share.
Export Restraint Agreements
- Voluntary agreements between countries to limit the volume or value of traded goods.
Cultural Environment
- A key global challenge, involving cultural differences and their impact on international
business.
 WEEK 4: FORMS AND ECONOMIC ROLES OF BUSINESS ORGANIZATIONS

Economic Development
- A total process which includes the economic, socio-political, cultural and spiritual aspects of
the country's growth.
Economic Development Phases
- Distinct stages involved in the total process of economic development of a particular
country.
Economic Growth
- Increase in the given amount of goods and services produced by the country's earnings.
Organization
- A group of people working together to achieve a common purpose.
Business Organization
- A group of people working together to achieve a common purpose in relation to their
organization’s mission, vision, goals and objectives.
Organizational Culture
- Set of beliefs and values shared by organization members.

FORMS OF BUSINESS ORGANIZATIONS

Simple Business Organizations
- Refers to orgs with few departments
- Centralized authority
- Wide span of control
Few formal rules and regulations
Functional Business Organizations
- Refers to business orgs that group together those with similar or specialised duties.
Divisional Business Organizations
- Made up of separate units
- Semi-autonomous
- Semi-independent
- Division heads are responsible for their unit's performance.
Profit Business Organizations
- Maintain their stability through income generation and profit-making activities.
Non-Profit Business Organizations
- Provides service without monetary gains or financial benefits
Team Structure
- Made up of work teams that work together to achieve the organization’s purpose.
Matrix Business Organizations
- Assigned experts or specialists to different functional departments.
Project Business Structure
- Business organizational form with a flexible design
- Projects are short/long term
- Members disband when projects are completed.
Boundaryless Business Organizations
- Eliminates vertical, horizontal, or external boundaries
- Flexible and unstructured
- No barriers to information flow
- Completion of work is fast

BUSINESS STRUCTURES
Single Proprietorship
- Owned by a single individual
Partnership
- Owned by two or more people
Corporation
- Separate legal identity
- Owned by five or more people
Cooperative
- Group of enterprise made up of several trades, consumers or producers.

WEEK 5: PLANNING

Planning
- involves setting of objectives/goals
- determines a course of actions to achieve the objectives
NATURE OF PLANNING
Goal-oriented
- provide guidelines for planning
Primary Function
- provides the basic foundation
Persuasive
- not an inclusive function
- required at all levels of management
Based on facts
- take into consideration the Vision, Mission, Objections of the organization.
Integrated process
- structured in a systematic and logical sequence
Continuous process
- ongoing process of adapting
Flexible
- based on future forecasts of events and situations.

Goals/Objectives should be S.M.A.R.T

S - specific
M - measurable
A - achievable
R - relevant/realistic
T - time-bound

Importance of Planning
- Reduces uncertainty
- Provides direction
- Minimization of wastes will result if there is proper coordination in activities.
- Established goals may be used for controlling
- Goals/standard and controlling will be absent without planning.

TYPES OF PLANS
Strategic
- Establish the organization’s overall goals
Tactical
- Intermediate range (1-3 years)
- designed to develop a concrete & specific means to implement the strategic plan.
- middle-level managers often engage here
Operational
- applies to a particular unit
- scope is narrow
Long-term
- plans that go beyond 3 years
Short-term
- plans that cover 1 year or less
Directional
- flexible
- give general guidelines only
Specific
- clearly stated
Single-use
- used or stated once only
Standing Plans
- plans that are ongoing
 WEEK 6: PLANNING TECHNIQUES AND TOOLS

Planning Techniques
- Forecasting
- Contingency Plan
- Scenario Planning
- Benchmarking
- Participatory Planning

Forecasting
- An attempt to predict future events using qualitative or quantitative methods.
- Affects decisions across various departments:
Accounting: Cost estimates, profit projections, cash management.
Finance: Equipment needs, funding timing.
Human Resources: Hiring, layoffs, training.
Marketing: Pricing, promotions, e-business strategies.
Operations: Scheduling, capacity planning, inventory management.
Product/Service Design: Revising features, designing new products.

Qualitative and Quantitative Forecasting Tools

Qualitative Tools:
- Executive Opinions
- Sales Force Opinions
- Consumer Surveys
- Delphi Method (iterative consensus-building process)

Quantitative Approaches:
- Time-series data analysis
- Associative techniques

Time-Series Data
- A sequence of observations over time.
Behaviors:
Trend: Long-term movement.
Seasonality: Short-term variations.
Cycles: Wavelike variations over years.
Irregular Variations: Unusual circumstances affecting data.
Approaches on Time-Series and Associative Forecasting
Time-Series Approaches:
- Naive Method
- Moving Average
- Weighted Moving Average
- Exponential Smoothing
- Trend-Adjusted Exponential Smoothing
- Simple Average Method

Associative Forecasting Approaches:

- Simple Linear Regression Analysis
- Non-Linear Regression Analysis
- Multi-Regression Analysis

Contingency Plan
- Prepared by managers for unexpected outcomes.
Trigger Points
- Indicators for when to implement alternative plans. Change in attribute, condition, factor,
etc.
Scenario Planning
- A strategic method for flexible long-term planning.
Benchmarking
- Comparing company practices with others to identify improvements.
Participatory Planning
- Involves stakeholders in all planning steps to ensure buy-in and effectiveness.

PLANNING TOOLS
- Fishbone/Ishikawa Diagram
- PERT/CPM
- Pareto Analysis
- Decision Tree
- House of Quality
- Gantt Chart
- Flow Charts

Fishbone/Ishikawa Diagram
- Identify root causes of defects or failures.
- Breaks down causes into successive layers.
- Created by Kaoru Ishikawa
PERT/CPM
- widely used techniques for planning and coordinating large projects.
- PERT or Program Evaluation and Review Technique
- CPM or Critical Path Method
Decision Tree
- Visual representation of decision alternatives.
Pareto Analysis
- Principle: 80% of consequences come from 20% of causes.
- Application: Focus on critical factors for business success.
- Named after Vilfredo Pareto
House of Quality
- Matrix showing how customer requirements relate to company methods.
-Facilitates group decision-making during product planning.
Gantt Chart
- Visual aid for scheduling task, assigning tasks and tracking progress.
- Named after Henry Ghantt
Flow Chart
- Visual representation of processed steps.
- Sequential order

Symbols:
Start/End (oval)
Process (rectangle)
Input/Output (parallelogram)
Decision (diamond)

Decision-Making Steps and Types

8 Steps of Decision Making
- Identify the problem
- Identify decision criteria
- Allocate weights to criteria
- Develop alternatives
- Analyze alternatives
- Select an alternative
- Implement the chosen alternative
- Evaluate decision effectiveness

Types of Decision Making

Programmed Decisions:
Routine, and has repetitive problems.

Non-Programmed Decisions:
Dealing with difficult problems which can't be solved easily.
Routine & Strategic Decisions:
Routine Decisions: Taken on routine basis for daily fuctions.
Strategic Decisions: Key decisions influencing the goals and objectives of the organization.

Organizational & Personal Decisions:

Organizational Decisions: Official capacity
Personal Decisions: Personal matters.

Tactical (Policy) & Operational Decisions:

Tactical (Policy) Decisions: Concerned with distinct policy matters
Operational Decisions: Related to daily operations.

Individual & Group Decisions:

Individual Decisions: Taken by a single individual
Group Decisions: Taken collectively by management.

Major & Minor Decisions:

Major Decisions: Key aspects of business org.
Minor Decisions: Taken by people at lower levels of business org.
 WEEK 7: NATURE OF ORGANIZATIONS AND TYPES OF ORGANIZATON
STRUCTURES

NATURE OF ORGANIZATIONS
DIFFERENTIATION OF THE ORGANIZATION’S INTERNAL ENVIRONMENT
Division of Labor
- Assigning different tasks to different people in the organization’s different work units.

Integration of Work Units

- Another process in the organization’s internal environment
- involves the collaboration and coordination of its different work units or work
divisions.
- Coordination refers to the procedures that connect work activities of the different
work divisions of the firm in order to achieve overall goals.

TYPES OF ORGANIZATION STRUCTURES

1. Vertical Structure
- clears out issues related to authority rights, responsibilities, and reporting
relationships.

Vertical Organizational Structure

- a strict hierarchical structure
- power emanating from top to bottom
- a chain of command that is well defined
- decisions usually move from the top down through layer by layer
- people at the bottom have the least autonomy.
- each person is supervised by the one directly above him.
- employees can clearly monitor their roles and duties.

2. Horizontal Structure
- departmentalization of an organization into smaller work units
- tasks become increasingly varied and numerous

3. Network Structure
- a collection of independent, usually single function organizations/companies
- works together in order to produce a product or service

TYPES OF DEPARTMENTS
1. Line Department
- deals directly with firm’s primary goods and services
- responsible for manufacturing, selling, and providing services to clients.

2. Staff Department
- support activities of the line departments by doing research, attending to legal matters,
performing public relations duties, etc.
DEPARTMENTALIZATION CAN BE DONE IN THREE APPROACHES:
1. Functional Approach
- subdivisions are formed based on specialized activities
Example: marketing, production, financial management and human resource
management.

2. Divisional Approach
- departments are formed based on management of their products, customers, or
geographic areas covered.

3. Matrix Approach
- a hybrid form of departmentalization
- managers and staff personnel report to the superiors (functional manager j divisional
manager).