Organizational Management
Organizational Management
Implementation (I)
Definition of Management g. Experience (E)
Management – act on how to control something, it is 3. Total Quality Management – system of management
about making decisions in business, that we can use in based principle that every staff member must be
our life, committed to maintaining high standard of work in
- process of coordinating and foreseeing the every aspect of the company's operation.
work performance of individuals working together in an Max Weber's Four Principles of Bureaucracy
organization. So that they can efficiently and effectively Components
accomplish those chosen goal. a. Division of Labor (DOL) – divide then look for
- process of designing and maintaining the specialization
environment or efficiently accomplishing selected b. Hierarchical Identification of Job Positions (HIJP)
works. c. Detailed Rules and Regulations (DRR)
Management Functions d. Impersonal Connections with One Another
1. Planning – involves determining the organization's (IMPw/Another) – professionalism
goals, performances and objectives, finding strategic Henri Fayol's Management Principles
actions that can be done to accomplish them and a. Work Division Specialization (WDS) – dividing the
developing coordination and integration activities. specialization
2. Organizing – demands assigning tasks, setting aside b. Authority/Discipline (A/D)
finds, and bringing harmonious relation among c. Unity of Command (UC) – standard and consistent
individuals and workloads or teams in organization. command
3. Staffing – controls all recruitment and personnel d. Unity of Direction (UD) – one goal and objective
needs of the organization. The main purpose is to hire e. Subordination of Individual Interest to General
the right people for the right job. Interest (SII-GI) – opinion of an individual and if valid
4. Leading – leadership is the core value of will be done by all workers
management. f. Renumeration or Pay (R/P)
5. Controlling – involves evaluating and if necessary g. Centralization (C)
correcting the performance of the individuals or h. Scalar Chain of Authority (SC-A) – protocols
workloads or things to ensure that they are all working i. Maintenance of Order (MO)
toward the previews and goals and plans of the j. Equity and Fairness (EQ/F)
organization. k. Employees Initiative (E-I) – employees initiate
6. Coordinating – coordinating with coworkers, and l. Promotion of Team Spirit (PTS) – working as a team
having written, oral, and interpersonal communication Managerial Roles and Functions
with them. Managers – supervise, sustain, uphold and assume
Theories of Management responsibility for the work of others in his or her work
1. Scientific Management Theory group, team, department, or the organization.
a. Scientific Management Theory (SMT) Organizational success is mainly dependent on
b. Frederick W. Taylor (FWT) managers who practice optimal utilization of their
c. Father of Scientific Management (FSM) human and material resources, and one who encourage
d. Develop New System (DNS) – to replace the performance, effectiveness, and efficiency.
old and traditional way of management by supervising 1. Top Level Managers – strategic managers - - they
the workers. focus on long term organizational goals and concerns.
e. Select, Train, Teach, and Develop new - emphasizes organization's stability,
workers (STTD) development, progress, and overall efficiency and
f. Coordinating (C) – seeing the results and effectiveness.
making sure that the workers know what they are - concerns with the company's external
thought. environment
g. Staffing (S) – picking the right people for the - set the company's general direction by
right job by putting them in their expertise designing strategies and controlling various resources.
2. General Administrative Theory - organizational guide who reminds, elaborate
a. Henri Fayol and Max Weber (HF&MW) on wider purpose of their organizational existence so
b. General Administrative Theory (GAT) – that their subordinates could identify and be committed
implores management functions to its success.
c. Management Function (MF) 2. Middle Managers – tactical managers - - they have a
d. Authority, Structure, and Coordination plan to achieve a specific goal
(ASC) – bureaucratic in nature - formulate specific objectives based on
e. Bureaucracy (B) strategic or general goals and objectives developed by
TL managers. - responsibility of the unit or department heads
- traditional role is to act between higher and 5. Directional Plans
lower levels of the organization. - flexible and give general guidelines only
- Announces and interpret top management - related to strategic plans
priorities to human resources in the middle hierarchical 6. Specific Plans
level of the company. - clearly stated
- more aware of the company's problems - language used must be understandable
compared with the top level managers. They are more 7. Single-Use Plans – top level managers
closer to customers and frontline managers and - stated once only as this applies to the entire
subordinates. organization
Key to be a Successful Middle Level Managers -refers to the strategic plans of the firm
a. Creative so that they can provide sound ideas 8. Standing Plans
regarding operational skills - ongoing in nature
b. Problem-solving skills to keep the organization afloat - provide guidance in different activities done
3. Front Level Managers – operational managers - - repeatedly
functional - identified activities of operational plans
- responsible for supervising the organization's Environmental Forces and Scanning
day to day activities External Environment Factors
- bridge between management and non 1. Economic Situations (external)– economic situation
management employees of people (wealth)
- controlled and instructed by TL and ML 2. Sociocultural Situations (external) – social culture
managers (friendly)
Planning Different Levels in the Firm 3. Politicolegal Situations (external) – system of
TOP LEVEL MANAGERS LOWER LEVEL government, peace and order, progressive leaders
MANAGERS 4. Demographic Situations (external)– changes that
occur in large groups of people over a period of time
1. Develop organizational Develop plans that will fit5.
theTechnological Situations (in/external)– technology in
objectives and overall plans to overall objectives set by top an environment, available service providers in the
achieve them management environment
2. Spends a large time on Spend smaller time for 6. World and Ecological Situations (external)–
planning preparation on planning consideration for international environmental factors
7. Stakeholders (in)– what the company primarily caters
3. The time frame from The time frame for planning is business ex. Students of the school
in the
planning is large about one short and often week to week
8. Suppliers (in) – if there are available suppliers for the
year company
4. Focus on both internal and Focus largely on internal 9. Pressure Groups (ex) – those who pressure you in
external factors organizational factors terms of maintaining the standard of your work
(ex. Food Inspection – food stores)
Types of Planning
10. Investor and Owners of Business (external) – how
1. Strategic Plan
many owns the same kind of business and if they still
- broad in scope
gain profit
- establish the organization overall goals
11. Employees (internal) – consideration of employees
- responsibility of the top level managers
Internal Business Factors
2. Operational Plans
1. Resources – main product
- plans for a particular unit area only
2. Research and Development – Marketing Research
- scope is narrow
and improvement
- company goals may not be achieved if the
(ex. 10000 people walking in a place to have Jollibee -
operational plans are not clear
Research)
3. Long-Term Plans
3. Production -
- plans that go beyond 3 years
4. Procurement and Supplies – capability to procure (to
- everyone must understand the organizational
buy things)
long term plan
5. Products and Services being offered -
4. Short-Term Plans – middle or lower level managers
Environmental Scanning
- plans that cover at least a year or less
1. Developing a competitive mindset
- plan must lead to the attainment of long-term
2. Considering Future Business Scenarios
goals
3. Business Prediction
4. Benchmarking b. Matrix Business Organization – those which
Local and International Business assign experts or specialist belonging to different
Environment/Decision Making functional department to work together in one or more
Forms of Business Organization projects; exhibit dual reporting relationships in which
Organization – a collection of people working together managers reports to two superiors – the functional
to achieve a common purpose managers and the divisional managers.
Business Organization – a group of people working c. Project Business Structures – business
together to achieve a common purpose in relation to organizational form with a flexible design, where the
their organization's mission, vision, goals, and employees continuously work on projects assigned to
objectives, sharing a common organizational culture. them; projects maybe short term or long term and
Organizational Culture – the set of beliefs and values members disband when the project is completed
shared by organization members which guide them as Different Kinds of Planning Techniques
they work together to achieve their common purpose 1. Forecasting – aimed at calculating or predicting what
1. Simple Business Organization – business organization is likely going to happen in the future
with few departments, centralized authority with a wide 2. Benchmarking - evaluate or check (something) by
span of control and few formal rules and regulations. comparison with a standard
These are easy to manage because of their simple form. 3. Contingency Planning - serves as a backup in cases
However, change of form follows as the company where a business veers off course from one or more
expands it operations. intended outcomes
2. Functional Business Organizations – business 3. Contingency Planning – taking into account
organizations that group together those with similar or unexpected events
related specialized duties that introduce the concept of
delegation of authority to functional managers like the
personnel managers, sales manager, or financial
manager but allow CEOs to retain authority of strategic
decisions.
3. Divisional Business Organization – business
organization made up of separate business units that are
semi-autonomous or semi-independent with a division
head responsible for his/her unit’s performance. In other
words, each division has its own functional organization
and its own general manager; however, the central
headquarters management maintains responsibility for
the delineation of organizational goals of the individual
divisions
4. Profit Business Organization – designed for the
purpose of achieving their organization’s mission,
vision, goals, and objectives and maintaining their
organizational stability through income generation and
profit making activities. Immediate revenues or cost
factors account for their success or failure.
5. Non-profit Organization – designed for the purpose of
achieving their organization’s mission, vision, and
objectives, providing service to clients without
expecting monetary grains or financial benefits for their
endeavors. The high or low evaluation score they obtain
may measure success or failure.
7. Open/Flexible Business Organization – formed to
meet today’s changing work environment. These affect
and are affected by the environment and change,
therefore, becomes inevitable; other forms that may
emerge from this form are:
a. Team Structures – organization as a whole is
made up of work teams (small but focused) that work
together to achieve the organization’s purpose, popular
in collectivist culture.