ORGANIZATION
AND MANAGEMENT
CHAPTER 1
01. Structural elements of an 04. Management Structure
organization
02. Principles of good
organization
05. Management Control
03. Management 06. Executive Function
07. Executive Leadership
What is Organization?
● Is a group of individuals who are
cooperating willingly and effectively for
a common goal
● Are structured to promote better
management
Structural Organization
● The formal arrangements that are
established to coordinate all
activities in order to implement a
given strategy.
● Structure reflects the anatomy of
a firm through its focus on
mechanisms and process that
Structural Organization link both vertically and
horizontally the various parts of
an organization
Structural Elements of an Organization
Men Materials
These are the different members of the organization Represents the materials necessary in the
starting from the very top of the last workman in the distribution of functions or in the attainment of its
enterprise. objectives.
Structural Elements of an Organization
Machine Methods Money
The tools necessary in The procedures and ways The financial resources of the
producing its desired output. used in the course of its organization.
actions.
Major elements of Organizational Structures
Distribution of functions
1 The functions to be performed, the groupings of functions, and
the vertical and horizontal task relationships among functions.
Vertical and horizontal authority relationships
2 Vertical - Upper-level management gives orders and employees
follow them without inputs or objections.. Horizontal –
Employees are backed to make suggestions to improve work
processes with authority to implement changes.
3 Communication and decision processes
The manner in which formal decisions are made by whom.
4 Policies
The decisions, rules or guidelines.
Principle of Good Organization
Principle of Objective
A clear and complete adefinition of the objective must be
known.
Analysis
A sound business judgement attempts to build an organization
through full knowledge of the requirements of the business.
Simplicity
Simplest organization that will serve to attain the desired
objective is considered the best.
Principle of Good Organization
Functionalism
The organization should be built around the main functions of
the business and not around the individuals.
Departmentalization
The scope operation cen be very broad. Necessitating
departmentalization to achieve a smoother flow of operations.
Centralization of Authority and Responsibility
This is necessary in order to have authority and responsibility
definitely fixed.
Principle of Good Organization
Limited span of control
The number of subordinates and executive can manage
effectively.
What is Management?
● Management is a process
● Management is a function
Management Concept
● Must be systematic
● Must be scientific
● Must be humanistic
Management Structures
Objective: to Facilitate the
coordination and control over the
activities of the company.
No two companies are identical.
Each company should be studied
in terms on its purpose, size and
the nature of its business,.
Management Structures
In any sizable organization, there should be delegation of
responsibility because:
1. It is physically impossible for one person to control effectively all the
works of a large organization through personal contact with it.
2. No person possesses the skill necessary to guide personally the highly
specialized activities in a modern construction business.
Management Structures
The line of responsibility works in two ways:
1. From the executive to the supervisor down to the workers under his
jurisdiction and conversely,
2. From the workers to those who are in authority over him.
Note: the line of authority must kept clear at all times in order to
facilitate the ready flow of communication and control.
Management Control
● “ to check or regulate “ , “ to keep within limits “ – Webester’s New
College Dictionary
● In Broader interpretation to apply: not only to check nor command, but
also the whip. Not only to regulate, but also to stimulate.
● Control include activities that require restrictive or correction action.
Management Control
Effective Communications System
- Important element of executive control.
- To the manager, information has four purpose to serve. It must be
answer the question:
1. What are we going to do?
2. How well are we doing?
3. How can we do better?
4. Does it serve as an aid to coordination?
Manager
● The bridge between the board of directores and strockholders or between
top management and the rest of agency personnel
● Most difficult and with the highest degree of responsibility
Manager
Quality of an effective manager:
1. Studies, analyzes and dissect his job.
2. Know to delegate the administrative details.
3. He is willing to delegate to and share with his subordinates the credit of
a job well done..
4. Trains and develops his men to prepare them to assume delegated
works.
5. Knows how to control and plan his time.
6. Institutes control for effective performances
Planning
- Is the job of making happen.
Plans may be classifies as:
Objective of the enterprise
Policies
Procedures
Budget
Programs
Executive Functions
To plan To direct
To organize To control
To plan
PLANS may be classified as:
• Objective of the enterprise
• Policies
• Procedures
• Budget
• Programs
Organizing
- Arrange into a structured order.
Directing
- Guiding and oversees subordinates.
Two process:
1. Leadership – by which an executive
imaginatively directs, guides or influences the
work of others in choosing and attaining
particular ends.
2. Coordination – Is the process whereby an
executive develops an orderly pattern in
group effort among the subordinates and
secures unity of action in pursuit of among
purpose.
Executive Functions
How can executives coordinate efforts in their organization?
Clarifying authority and responsibility
Careful checking and observation
Facilitating effective communication
Utilizing leadership skills
Control
- Defined as the process by which an
executive gets the performance of
his subordinates to correspond as
closely as possible to chosen plans,
orders, objectives or policies.
• Policies – are general statements,
which guide or channel the thinking
and action of members of an
organization.
• Procedures – are reflection of
policy.
Executive Leadership
He is the fellow who He is the fellow at the He is the leader of the
gets things done through top of the organizational organization, and a good
the efforts of the others. pyramid. leader usually makes a
good manager.
As a leader, the manager should be an exemplar of
good personal appearance, pleasant mannerism,
friendliness, cheerfulness, and good health so that he
can command respect among his subordinates.
Example of Executive Leadership
● Sports captains (depending on the nature of the sport) coordinate and
direct the actions of individual players to fit in with the overall game
plan, issuing directions and then monitoring each players actions to
ensure they are in the right place or doing the right thing.
● Orchestral conductors use a similar approach, using the musical score (as
the equivalent to the game plan) to ensure that each musician plays the
right part and that the timing of all the musicians is coordinated.
● Mr. Carlson’s guiding principles is that “ a political leader should never
ask others to do what he himself was unable to do” .
Example of Executive Leadership
Principles they stand for:
● Commitment
● To be strict
● Good leader
● Focuses on contribution
Conclusion:
Whether in politics or within a company or organization, one is to make the
people wise and the other is to keep them ignorant.
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