ORGANIZATION

AND
MANAGEMENT
THE FIRM AND ITS ENVIRONMENT
 SWOT - Strength, Weakness (Internal Analysis)
Opportunities and Threats (External Analysis)

 PESTEL - Political, Economic,

Sociocultural,Technological, Ecological and
Legal Factors
 INDUSTRY COMPETITORS
(Rivalry among Existing Firms)
 Potential Entrants - Threat of new entrants
 Buyers - Bargaining power of buyers
 Suppliers - Bargaining power of suppliers
 Threat of subtitute products or services
 WAYS TO COMPETE IN LOCAL AND
INTERNATIONAL BUSINESS

 Exporting and Importing

 Licensing and Franchising
 Joint Ventures and Strategic Alliances
THE ROLE OF BUSINESS IN ECONOMY AND
THE DIFFERENT PHASES OF ECONOMIC
DEVELOPMENT
 CSR - Corporate Social Responsibility
 Giving free medical and dental services to poor
communities to improve health.
 Cleaning up of clogged waterways and rivers to
prevent the incidence of flooding
 Sponsoring sports tournaments such as basketball
and marathon events for wellness.
 Conducting free training on setting up livelihood
projects to augment incomes
 Complying fully with government regulations and
astandards for business
 Responding to consumers' feedback, such as
complaints on products or services
 Using production methods that do not pollute the
environment nor harm the health of people
 Adopting energy conservation measures within the
company
TRIPLE BOTTOM LINE (or 3 P's)

 Profit - financial performance

 People - Social Benefits
 Planet - Environment Impacts
 DIEFFERENT PHASES OF ECONOMIC
DEVELOPMENT
 Developing economies Phase (Agriculture based)

 Industrialization Phase (Industry based)

- manufacturing, mining, construction, electricity,
gas, and water sectors

 Globalization Phase (Interdependence among

countries; worldwide competition)
- importation and exportation
NATURE AND BENEFITS OF PLANNING
PLANNING - A management function that focuses
on setting objectives and determining how to achieve
those objectives.
- It needs clarity of purpose
- Clarity of planning gives a direction to where you
want to go.
 Benefits of Planning

 It sharpens focus
 It provides flexibility
 It improves coordination
 It tightens control
 Long-range
Plans and
Short-range
Plans

Types of Plans

Objectives of
the Company

Operational
Strategic Plans:
Plans and Standing
Functional Plans and
Plans Single-use
Plans
Long-range Plans - 3 or more years

Short term Plans - 1 yr or less

- monthly, quarterly,
midyear and annual plans
 Operation Plans : Standing Plans and
Single-use Plans
 Policy - A general or broad guide for the actions or
behavior of people in the workplace.
 Rule - A more specific guide to actions or behavior in the
workplace.
 Standard Operating Procedure (SOP) - A series of action
to be followed for a specific situation in the workplace.
a. Pre-Negotiation Process
b. Negotiation Process
c. Post-Negotiation Process
 Planning at Different Levels of the Firm
 Strategic Plans - developed by the top management of the
company.
a. Vision - must be well thought out since it is the
compelling future scenario desired by the company.
b. Mission - pertains to guiding purpose of the
company.
c. Values - a company need to be carefully identified
and assessed since they stand for the strong
character and ideal qualities of the organizational
members.
 Funtional Plans / Tactical Plans - developed at the middle and
supervisory levels
Cascading of Plans from Top Level to Lower Levels

Top Develop the Strategic Plans

Management

Middle Develop the

Management Functional/tactical Plans

Supervisory Develop more Detailed

Management functional/tactical Plans
PLANNING AND DECISION-MAKING
 PLANNING TECHNIQUES AND TOOLS
 FORECASTING - pertains to the use of scientific
techniques to predict the likelihood of certain events or
factors to happen in the future.
Techniques:
a. Quantitative forecasting techniques
- statistical tools and analyses to predict the
future
a. Qualitative forecasting techniques
- make use opinions or perceptions from
experts for prediction purposes.
 CONTIGENCY PLANNING - Process of identifying
alternative cources of action in the event that
unforeseen or uncontrollable events take place.
- must have multiple plans/back plans
Plan A, Plan B, Plan C, Plan D
 SCENARIO PLANNING - involves predicting
potencial altenative events that might happen.
Different approaches :
Scenario 1
Scenario 2 Scenario 1 Scenario 2
Scenario 3
Scenario 3 Scenario 4

Alternative scenario

Official Vision
Future
 BENCHMARKING TECHNIQUE - finding out what
other organizations are doing well and then
incorporating those “best practices” into the
operations of one's organization to improve its cost
and effectiveness.
 ACTIVITIES OF BENCHMARKING
 How inventories are manage
 How costumer complaints are handled
 How raw materials are purchased
 How wastes are reduced and recycled
 How preventive maintenance is performed
 How factory defects are eliminated
 Other practices that can be examined in terms of
competitiveness
 STEPS IN DECISION-MAKING
STEP 1. Identify and define the problem
STEP 2. Generate and evaluate alternative courses of
action
STEP 3. Choose the most appropriate course of action
STEP 4. Implement the chosen courses of action
STEP 5. Evaluate the results
 TIME MANAGEMENT IN DECISION-
MAKING
Tips:
 Identify the “time wasters” and avoid them. Better
still, get rid of them.
 Follow priorities by working first on what is most
important and urgent.
 Do not get too p reoccupied with details to the point
that you miss the big picture of things.
 Avoid individuals who tend to monopolize your time
unnecessarily.
 Be the master of your calendar by not letting others
control your time.
 Break complex tasks into smaller chunks that can be
done gradually.
 Stay calm even under time pressure. A relaxed mind
avoids mistakes.
 ORGANIZATIONAL STRUCTURES

- Defined as the system of how tasks are to be

allocated, who reports to whom, who has the authority,
and what are the coordinating mechanisms and
interaction patterns to ensure that work is done.
 TYPES OF ORGANIZATIONAL
STRUCTURES
 FUNCTIONAL STRUCTURE - members with similar
skills are grouped together into functional departments.
CHIEF EXECUTIVE
OFFICER

HUMAN
MANUFACTURING FINANCE ACCOUNTING MARKETING
RESOURCES
  DIVISIONAL STRUCTURE - members of the organization who are grouped
together work on the same product, service, process, or serve similar customers.

OWNER-
PRESIDENT

REGION 1 REGION 2

MARKETING OPERATIONS FINANCE

MARKETING

OPERATIONS FINANCE
 MATRIX STRUCTURE - combines the functional and
divisional structures
Functional Units

A B C D

2
Projects
3

4
 TEAM STRUCTURE- created to complete special
projects, to solve problems, or to accomplish daily
tasks.
 NETWORK STRUCTURE - is formed by having a core of
full-time employees working together with outside
partners who support or supply services.

Types of Network Structure

Task force -is a structure formed on a
temporary basis to accomplish a complex
task that involves a number of
organizational subunits
Committee form - another form of network
structure composed of selected members from
different backgrounds
Collegial Form - another network structure
composed of members from professional
backgrounds
 VIRTUAL STRUCTURE - eliminates the boundaries
among units that compose the organization by using
information technology (IT) and the Internet to
communicate with members and accomplish specific
objectives
 FORMAL ORGANIZATION
- a formal structure
- They are officially created to accomplish specific
objectives.
- Members are bound to perform the jobs or tasks
assigned to them.
 INFORMAL / SHADOW STRUCTURE
- Have informal structure
- They are not officially created, but are freely formed
by members who have a need for them.
ORGANIZATION THEORIES AND THEIR
BUSINESS APPLICATIONS
ORGANIZATIONAL THEORIES:
 CONTIGENCY THEORY - it implies that there is no
one best way to manage things in the workplace.
Factors that affects organizational structure and
effectiveness.
- technology
- size of organization
- Strategy or strategic choice
 RESOURCE-BASED THEORY - the resources
within a firm that are considered rare and which
cannot be easily copied, duplicated, or substituted
provide the sustainable competitive advantage for
the firm.
 STAKEHOLDER THEORY - it takes into account
the needs of various stakeholders of the
organization
Stake holder - a person or entity who interacts with
a business.
Internal stakeholders - are the board of
directors, the top management and employees.
External stakeholders - are the customers, the
suppliers, the regulators, the financial providers, the
competitors, the government, and media.
CSR - Corporate Social Responsibility
The 4 levels of CSR by Carroll (1991)
DELEGATION AND STAGES OF TEAM
DEVELOPMENT
 responsibility to his or her
subordinates.
ASSIGNMENT AND TRANSFER OF
DUTIES
S - Specific
M - Measurable
A - Attainable
R - Realistic
T - Time-bound
E - Ethical
R - Recorded
AUTHORITY AND RESPOSIBILITY

 Responsibility
 Accountability
 Release
STAGES OF DEVELOPMENT OF A TEAM
THANK YOU!