Organization Management
GROUP 1: Nature And Concept Of Business Leading
DEFINITION AND FUNCTIONS OF MANAGEMENT - Refers to the process of motivating, inspiring,
and influencing others to work for their
Management common goals and objectives. Leadership
- is the process of reaching organizational goals involves the process of communicating,
by working with and through people and other mentoring and showing group members how
organizational resources. they can reach their full potential and develop a
- is also defined as the process by which a sense of community that is essential to achieve
cooperative group directs action towards a common organizational goal.
common goals
Controlling
3 Characteristics - It is considered as the feedback mechanism of
It is a process or series of continuous and the management process. Through controlling,
related activities. managers investigate significant differences
It involves and concentrates on reaching between actual and desired results and
organizational goals. determine whether any corrective action is
It strives for organizational goals by working necessary.
with and through people and other - Controlling involves comparing actual
organizational resources. performance to a predetermined standard,
measuring work performance, comparing
5 Functions: results to objectives and taking corrective
1. Planning action as needed.
2. Organizing
3. Staffing
4. Leading MANAGEMENT THEORIES
5. Controlling
Evolution of Management
Planning Since eighteenth century, the rise of the industry
- This involves choosing tasks that must be revolution has been evolving to a variety of
performed to attain organizational goals, to contemporary management theory including the
outline how the tasks must be performed and classical, behavioral, quantitative and new theories.
to indicate when they should be performed. It Each theory is inclusive with a view on specific
focuses on attaining goals and outlines exactly time frames to meet the specific phenomenon and
what should be done to be successful. existing management needs.
Organizing CLASSICAL THEORIES
- Involves the act of assigning and arranging Scientific Management
tasks developed in the planning stages to (Taylorism)
various individuals or groups to create a Ideas of early management proposed by Taylor,
mechanism that carries out plans into action Jill Perth and Gantt was developed by the impact of
and achieve organizational goals. natural methodology and it stressed rational thinking
based on the scientific work to improve individual
Staffing staff capacity.
- It ensures that necessary human resources are Make use of careful planning, standardized
available to execute plans and achieve methods, and clear instructions to make tasks more
organizational goals. Hiring and selecting the efficient.
right people for the job as well as providing
them with necessary training & development
are all part of the staffing activity.
Administrative View
The administrative view proposed by Henri Fayol goods or services within a company. It aims to make
and Max Weber highlighted the importance of these operations more efficient and effective, often by
operational efficiency on the whole organization to improving workflows, managing resources, and
develop a general theory explaining the good meeting customer demands.
management of the elements required which include In simple terms, operations management is about
infrastructure. making sure a business runs smoothly by managing
In simple terms, it's about how things are the processes involved in producing goods or
organized and managed to make sure everything runs delivering services
smoothly and efficiently.
NEW THEORIES
BEHAVIORAL THEORIES Systems Perspective
Hawthorne Experiment a framework that views organizations as complex
This is a well-known study which revealed that systems composed of interconnected and
Classical Theory is mainly focused on the organization interdependent parts. It emphasizes the interactions
and staff with mechanical perspective concentrated between various components within the organization
on the point of view of human nature, importance of and their relationships with the external environment.
individual attitudes and behaviors, methods for It's about understanding how different parts of a
managers to motivate employees for improving company work together and how changes in one area
productivity can affect the whole organization
In simple terms, the experiments discovered that In simple terms, the systems perspective in
productivity increased not because of changes in the management theories means seeing organizations like
work conditions themselves, but because the workers big puzzles with many pieces that all fit together.
felt valued and appreciated due to the attention they
received during the experiments. Contingency Perspective
The contingency perspective in management
Interpersonal Perspective theory suggests that there is no one-size-fits-all
This was proposed by Maslow and McGregor that approach to management. Instead, the effectiveness
provided a basic foundation of the behavioral view on of managerial actions depends on the specific
human relations and was further derived from the situation or context. This perspective acknowledges
Hawthorne experimental results showing that the that different situations require different
productivity of employees is affected by the management approaches, and what works well in one
interaction and affective atmosphere of the situation may not work as effectively in another.
management that leads to better performance. In simple terms, what works depends on the
In simple terms, it's about how we connect and specific circumstances. It's like saying that there's no
relate to others in our everyday lives. universal solution for every problem—you have to
consider the details of each situation and adjust your
QUANTITATIVE THEORIES approach accordingly.
Management Science
This perspective uses mathematical and
analytical methods to tackle complicated FUNCTIONS, ROLES, AND SKILLS OF A MANAGER
management issues. It involves creating models and
conducting quantitative analysis to find optimal Responsibilities of Managers
solutions to problems like resource allocation, A manager wears many hats. He is not only team
scheduling, and logistics. leader but also a planner, organizer, cheerleader,
In simple terms, management science is a way of coach, problem solver, and decision maker — all
using math and analysis to solve complex problems in rolled into one.
business. In addition, schedules of managers are usually
jam‐packed. Whether they are busy with employee
Operations Management meetings, unexpected problems, or strategy sessions,
This perspective focuses on designing, managers often find little spare time on their
overseeing, and enhancing processes that produce calendars.
Common Responsibilities: battles that those lower in the organization are left
1. Hire great people. When employees are of great to fight.”
talent, the rest is easy. Sometimes, managers 6. Produce unique quality outputs. This pertains
instruct the Human Resource employees in the on the fact that CEOs have to do things that just
sourcing, screening and selecting of potential cannot be delegated and entrusted. The
workers. accomplishment of these tasks lie on the wings of
2. Exhibit performance management. the manager alone though assistance from other
Performance management covers the people- employees and officials may be sought.
management aspect of a manager’s job. It includes 7. Manage resources. Managers have to make sure
clarifying and setting expectations and goals, that the team has the resources they need to do
coaching, measuring, and monitoring employees’ they work while at the same time making sure that
work, addressing performance problems, providing a team does not overspend or waste resources.
feedback and recognition, coaching, developing, 8. Improve processes and quality. While individual
training, and doing performance reviews. should take responsibility for the quality of their
3. Promote team development. In addition to own work, managers are usually in the best
individual employee management and position to see the overall workflow and make
development, a manager is responsible for the adjustments and improvements.
development of a high performing team. An 9. Encourage self-development. Managers are not
interdependent team is usually more productive just responsible for the development of their
than a group of individuals working independently. employees and teams but also with their own
4. Set overall directions. A manager sets the long development achieved through management
and short term direction of the team or training, mentor seeking, feedback consolidating,
organization. This includes the vision, mission, and advanced education pursuance.
goals, objectives and strategy. Strategic managers 10.Communicate and disseminate information.
spend a lot of time thinking about mission and Managers make sure information is flowing from
direction which make them always on the look-out above, sideways, and upwards. They are never the
for the need to change or reinvent priorities. This bottleneck in the information highway.
involves others, including their team members but
they take ultimate responsibilities for final In case you are wondering where “leadership”
decisions. fits into the role of a manager, it is accurate to say
5. Support team members. This is explained by that is woven throughout these ten essentials roles
Patrick Lencioni, a famous author of a for each of them require leadership in order to be
management book entitled, The Five Dysfunctions truly effective. Leadership is not a separate “do” but a
of a Team when he quoted, “We all know that if way of being!
there is any daylight between executive team
members, it ultimately results in unwinnable
Business Ethics
GROUP 1: The Role of Business in Social and
Economic Development
FORMS OF BUSINESS ORGANIZATION
Business Organization
- a collection of people working together to
achieve a common purpose in relation to their
TYPES OF SOLE PROPRIETORSHIP, PARTNERSHIP,
organization’s mission, vision, goals, and
AND CORPORATION
objectives, sharing a common organizational
purpose.
Different Types of Sole Proprietorship
Sole Proprietorship Self-Employed Business Owner
- A self-employed business owner is someone
- is a kind of business or an organization that is
who conducts a trade or business with the
owned, controlled and operated by a single
intent of making a profit. The self-employed
individual who is the sole beneficiary of all profits
individual may conduct the business on a full-
or loss, and responsible for all risks. It is the
time basis or as a part-time venture
simplest form of business organization.
Franchise
- A franchise may also take on the form of a sole
proprietorship. In a franchise, the sole
proprietor, also referred to as a franchisee, pays
a fee to a franchisor in exchange for the right to
use the company brand. The franchisee is
obligated to follow a predetermined business
model that controls such areas as operations,
marketing, pricing and the ability to expand.
Partnership The franchisee must also pay the franchisor
- is a formal arrangement by two or more parties royalties, which are typically a percentage of
to manage and operate a business and share its the franchise unit's gross sales.
profits.
Different Types of Partnership
General Partnership
- An association of two or more persons that
carry on as the co-owners of a business in order
to generate a profit. The default rule is equality
between all members and the only way to
change this is through a formal written
agreement. Each partner possesses an equal
voice in management and the authority to act
Corporations as agent for the partnership. Each partner can
- are businesses that are treated like individual be held liable for all debts of the partnership,
people by the law. A corporation can own and for torts committed by other partners
assets, hire employees, sign contracts, and within the course of the partnership's business.
exercise individual rights.
Limited Partnership
- A limited partnership is formed by two or more
persons, having one or more general partners
and one or more limited partners. A limited
partner has no voice in the active management
of the limited partnership, which is conducted
by the general partner(s). Every limited laws. May also refer to overseas corporations
partner's liability is limited to the capital he has doing business in the Philippines.
contributed to the partnership.
Non-Profit Corporation
Limited Liability Partnership - A corporation organized for some purpose
- With an LLP, partners will receive the same other than making a profit. Non-profits are
beneficial taxation provided by a general typically granted special tax treatment.
partnership, and will also be shielded from the
debts, and liabilities of the business. In addition, Private Corporation
every partner in an LLP will be protected from - A corporation founded by and composed of
the actions of other partners. private individuals principally for a nonpublic
purpose, such as manufacturing, banking, and
Different Types of Corporation railroad corporations (including charitable and
Business Corporation religious corporations).
- A corporation formed to engage in commercial
activity for a profit. Another name for this type Professional Corporation
is a "for-profit" corporation. - A corporation that provides services of a type
that requires a professional license. These are
C Corporation typically corporations made up of architects,
- A corporation whose income is taxed through accountants, lawyers, physicians, veterinarians,
the corporation rather than its shareholders. etc.
Any corporation that does not choose S
Corporation tax status (see below) under the Public Corporation
Internal Revenue Code is a C Corporation by - A corporation whose shares are traded to and
default. among the general public. These are
government-owned corporations that engage in
Close Corporation activities benefiting the general public, usually
- Any corporation whose stock is freely traded while remaining financially independent. Such a
and is held by only a few shareholders who are corporation is managed by a publicly appointed
often within the same family. The requirements board.
and privileges of Close Corporations vary by
jurisdiction. S Corporation
- A corporation whose income is taxed through
Controlled Corporations its shareholders rather than the corporation
- A corporation in which the majority of stock is itself. Only corporations with a limited number
held by one individual or firm. of shareholders can elect S-corporation tax
status under the Internal Revenue Code.
Cooperative Corporations
- A corporation primarily organized for the
purpose of providing services and profits to its MAJOR CONTRIBUTION OF DIFFERENT
members rather than for a corporate profit. The ORGANIZATION IN SOCIO-ECONOMIC
most common kind is one formed to purchase DEVELOPMENT
real property (such as an apartment building),
so that its shareholders may lease the 1. Economic Stability and Growth
apartments. Businesses, both small and large, contribute
to economic stability and growth by providing
Foreign Corporation valuable services, generating revenue, creating
- A corporation that is registered in one state, but jobs, driving innovation, and promoting
is also "authorized to do business" in one or sustainability.
-
more different states. Usually created to take 2. Job Creation
advantage of tax breaks and state incorporation
Business, especially small businesses and - Transparency, at the individual level, considers
startups, are crucial for job creation. intrinsic or ethical salience as an important
3. Innovation and Entrepreneurship feature of the relational dimension of a person. It
Entrepreneurship drives innovation, which is is described as a personal quality which is
key for economic growth and prosperity. necessary to develop unity between and among
individuals. A transparent approach makes a
4. Community Development person more honest and sincere in his/her
Healthy businesses contribute to the development relationships, in communicating his/her points of
of healthy communities. view, and in working actively to find shared
meanings and goals.
5. Socio-Economic Impact Beyond CSR - Transparency helps people to consider how the
Business organizations have a positive socio- actions of social organizations such as
economic impact that goes beyond Corporate multinational agencies and non-governmental
Social Responsibilities (CSR). groups offer meaningful support to civil society
and whether funding is being properly spent.
THE CORE PRINCIPLES UNDERLYING FAIRNESS,
ACCOUNTABILITY, AND TRANSPARENCY IN
BUSINESS AND NON-PROFIT ORGANIZATION
Fairness
- This is the standpoint of judging which is
exempted from bias or prejudice. Employees
think of their organizations as just when the
rewards and the way they are distributed are fair.
- Fairness is giving to a person what is due to
him/her. It has something to do with justice
because the employer checks whether the
members have the benefits and burdens
distributed evenly to them
Accountability
- The most important aspect of preventing and
detecting corruption is the sound accountability
structures. A civil society organization without
proper systems of accountability is fragile and
open to rumors of mismanagement and abuse of
authority. Worst of all, lacking it will prevent the
organization from enjoying full respect and
legitimacy in the eyes of its stakeholders,
including those bearers of duties that it intends
to advocate with.
- Accountability is the explication and justification
process. It is about testing, forming a judgment,
and taking an action if necessary. It also comes
with responsibilities. Holding people to account
for those actions which they are responsible for is
fair.
Transparency
