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I. COURSE INFORMATION
This course is designed to give students a fundamental knowledge to one of the most
important and interesting disciplines of business – the field of management. As the first step
towards managerial empowerment, this aims to provide a valuable glimpse of introduction
to the concepts of management and business, as well as, essential skills in planning,
organizing, staffing, directing and controlling, decision-making, motivating and
communicating. The course will further help students in addressing challenges inherent to
managing people in preparation for future careers in a very competitive, diverse and
dynamic environment.
COGNITIVE
1. Analyze brief background of business in local, national and international
perspectives
2. Identify and examine management principles, role, skills, levels, and functions
3. Trace the origin of various concepts which concern the science of modern
business management
4. Recognize the art of planning, organizing, staffing, directing and controlling as
those classified to be essential management functions in the conduct of both
classical and contemporary business undertaking
5. Explain the link between the five functions of management
PSYCHOMOTOR
1. Support the Vision, Mission, Goals and Objectives of the Department, the
College and the University as a whole
2. Demonstrate ethical leadership and good business practices
3. Apply appropriate management approaches to respond to critical conflicts
affecting people in an organization
4. Build a strong foundation in the pursuit of effective, efficient and well-managed
business organizations
AFFECTIVE
1. Reflect on their future role as good Managers and Business leaders in uplifting
their subordinates’ Quality of Work Life and the nation’s welfare as a whole
2. Demonstrate knowledge on the impact of management to physical, financial
and human resources
3. Diagnose current issues and challenges facing managers such as Total Quality
Management (TQM), Human Resource Management, team building and
information systems
4. Actively participate in the deeper understanding of Business Management as a
crucial field of study
MANAGEMENT 101/11 – PRINCIPLES OF MANAGEMENT MS. ASMA GURO BENITO (INSTRUCTO
IV. TEXTBOOK(S) AND REFERENCE(S)
MANAGEMENT
By: Feliciano R. Fajardo
PRINCIPLES OF MANAGEMENT
By: Cynthia A. Zarate
VII. POLICY
Academic Dishonesty
All students are expected to be academically honest. Cheating, lying and other forms of unethical behavior
will not be tolerated. Any student found guilty of cheating in any assignment, quiz, examination or
plagiarism in submitted course requirement will receive a grade of 5.0 or failure in the said quiz or
examination or plagiarism in submitted course requirements.
Gadget
Unless authorized by the professor, use of cell phone, laptop, tablet and other similar gadgets inside the
classroom is strictly prohibited.
Seat Plan
A seat plan shall be adopted. Any student not in his/her designated seat shall be considered absent.
Dress Code
The university dress code is hereby adopted. If the students (3rd Year and 4th Year) shall agree among
themselves to have a uniform, the same shall be voluntary.
Submission of Course Requirement, if any
All course requirements, if any, shall be submitted on the date scheduled, otherwise the professor may at
his discretion refuse to accept such requirements. If a professor would accept late course requirement,
points at a rate of 10 points per day of delay shall be deducted.
Others
The university code of conduct on matters not covered by this syllabus shall be adopted.
Under the free enterprise system, the growth of the economy lies in the ability of
private individuals to achieve economic objectives. The quest for profit is usually
undertaken by engagement in business operations. Business firms and the government are
expected to provide goods and services to the society. The major part of this task, however, is
assigned to the private business firms. Under the system, firms are free to compete with each
other and competition leads to the offering of new and improved products and services to the
society. The standard of living is raised or lowered depending to a large extent on the
performance of business firms.
Business is largely responsible for bringing into the market a wide array of products,
which were not made available in the past. High technology items like colored television, video
equipment, cellular phones and computers are sold openly in the market. This happens even
as business firms continue to provide mankind with basic necessities like food and shelter.
Even amusement centers like Disneyland and resorts like Boracay are made possible because
of business.
Business may be defined as all profit-seeking activities and enterprises that provide
goods and services necessary to an economic system.
A business firm is established primarily for profit. There are other reasons, however, why
anyone would want to start a business. Some of these are to do work that is enjoyable, to do
something for pleasure and pride, and to achieve financial independence.
Professional managers maintain that a business firm should achieve the following multiple
objectives: 1 creation and distribution of product or service; 2 satisfaction of personal
objectives like profits for owners, salaries and other compensation for executives, wages and
other compensation for employees, psychic income for all, including pride in work, security,
recognition and acceptance; 3 protection and enhancement of the human and physical
resources of society; and 4 economy and effectiveness of operation.
3. Corporation is an enterprise chartered by law, with most of the legal rights of a person,
including the right to conduct a business, to own and sell property, to borrow money, and to
sue or be sued. Owners of corporations are called stockholders and they are issued with
certificates of ownership called stocks.
Advantages:
a. Limited liability
b. Ease of expansion
c. Ease of transferring ownership
d. Relatively long life
e. Greater ability to hire specialized management
Disadvantages:
a. More expensive and complicated to organize
b. Double taxation
c. More extensive government restrictions and reporting requirements
d. Employees lack personal identification with and commitment to corporate goals
ASSIGNMENT
Submit a list of 10 examples of firms classified according to its kinds and forms.
DEFINITION OF MANAGEMENT
Management is defined in so many ways depending upon the viewpoint, beliefs, and
interpretations of the manager. But the generally accepted definition used is: Management is a
distinct process of planning, organizing, staffing, directing and controlling (POSDICON),
performed to determine and accomplish stated objectives by the use of human being and other
business resources. In other words, there are different activities that make up a management
process. Furthermore, these activities are performed to accomplish stated objectives and are
performed by men with the help of other resources.
Management is a function that directs and coordinates the efforts of the people to
accomplish goals and objectives by using available resources efficiently and effectively. It is also
a process of accomplishing the organization’s goals by working with and through people. Its task
includes planning, organizing, staffing, leading or directing and controlling.
ACTIVITY 2
Here is an alphabetical list of 15 qualities associated with effective leaders. From the following list, rank
the top 5 characteristics based on the following questions: “What 5 qualities are most important in a
manager for you to consider them to be good leaders?”
_____Ambitious _____Flexible
_____Caring _____Honest
_____Competent _____Humorous
_____Courageous _____Innovative
_____Dependable _____Inspiring
_____Empathetic _____Kind
_____Enthusiastic _____Loyal
_____Fair
After several decades of trying to manage people through the different management theories, one
has to realize that what worked before just simply is not enough anymore. Traditional management
is fine if one wants compliance, but if one wants innovation and growth, management has to engage
its people on a whole new level. Top down control is a thing of the post. Succeeding in today’s
environment requires a management style that inspires and is participatory.
MANAGEMENT 101/11 – PRINCIPLES OF MANAGEMENT MS. ASMA GURO BENITO (INSTRUCTOR)
5.6 CLASSICAL APPROACH TO MANAGEMENT
a. Classical Scientific School - arose because of the need to increase productivity and
efficiency. The emphasis was on trying to find the best way to get the most work done by
examining how the work process was actually accomplished and by scrutinizing the skills of the
workforce.
iii. Frank and Lilian Gilbreth (a husband-and-wife team, studied job motions)
- the basic ideas regarding scientific management were developed.
- Developing new standard methods for doing each job
- developed ideal motions required to perform a job
-17 therbligs (elemental hand or arm motion, resulted to 200% productivity rate)
- Selecting, training, and developing workers of allowing them to choose their own
tasks and train themselves
- Developing a spirit of cooperation between workers and management to ensure
that work is carried out in accordance with devised procedures
- Dividing work between workers and management in almost equal shares, with
each group taking over the work for which it is best fitted
i. Max Weber
- In the late 1800s, Max Weber disliked that many European organizations were
managed on a “personal” family-like basis and that employees were loyal to
individual supervisors rather than to the organization. He believed that
organizations should be managed impersonally and that a formal organizational
structure, where specific rules were followed, was important. In other words, he
didn’t think that authority should be based on a person’s personality. He thought
authority should be something that was part of a person’s job and passed from
individual to individual as one person left and another took over. This nonpersonal,
objective form of organization was called a bureaucracy.
PRINCIPLES OF MANAGEMENT
1. Division of Work
According to this principle, the whole work is divided into small tasks. The
specialization of the workforce according to the skills of a person, creating personal
and professional development within the labor force, and therefore increasing
productivity, leads to specialization which increases the efficiency of labor. By
separating a small part of work, the worker’s speed and accuracy in his/her
performance increases. This principle is applicable to both technical as well as
managerial work. This can be made useful in case of project works, too.
2. Authority and responsibility
This refers to the issue of commands followed by responsibility for their
consequences. Authority means the right of a superior to give enhanced order to
his subordinates; responsibility means obligation for performance. Henri Fayol
finds authority and responsibility to be related and inseparable. Authority is the
right to give orders and the power to exact obedience. A manager has official
authority because of her position. Authority creates responsibility.
3. Discipline
Discipline refers to obedience, proper conduct in relation to others, respect
of authority, etc. it is essential for the smooth functioning of all organizations. This
will also help shape the culture inside the organization. Discipline is absolutely
necessary for enterprises to function well.
4. Unity of Command
This principle states that each subordinate should receive orders and be
accountable to one superior. If an employee receives order from more than one
superior, it is likely to create confusion and conflict. Unity of command also makes
it easier to fix responsibility for mistakes.
5. Unity of Direction
All those working in the same line of activity must understand and pursue
the same objectives. All related activities should be put under one group, there
should be one plan of action for them, and they should be under the control of one
manager.
It seeks to ensure unity of action, focusing on efforts, and coordination of strength.
6. Subordination of Individual Interest
Key Roles
Fayol also divided the management function into five key roles:
▪ To organize
▪ To plan and forecast
▪ To command
▪ To control
▪ To coordinate
Maslow broke down the needs hierarchy into five specific areas:
As a group, these theorists discovered that people worked for inner satisfaction and not
materialistic rewards, shifting the focus to the role of individuals in an organization’s
performance.
a. Management Science
The management science school emerged to treat the problems associated with global
warfare. Today, this view encourages managers to use mathematics, statistics, and other
quantitative techniques to make management decisions.
Management can use computer models to figure out the best way to do something-saving
both money and time. Managers use several science applications.
▪ Mathematical forecasting helps make projections that are useful in the planning
process.
▪ Inventory modeling helps control inventories by mathematically establishing how
and when to order a product
▪ Queuing theory helps allocate service personnel or workstations to minimize
customer waiting and service cost.
b. Operations Management
Operations management is a narrow branch of the quantitative approach to management.
It focuses on managing process of transforming materials, labor and capital into useful goods
and/or services. The product outputs can be either goods or services; effective operations
management is a concern for both manufacturing and service organizations. The resource
inputs, or factors of production, include the wide variety of raw materials, technologies, capital
information, and people needed to create finished products. The transformation process, in turn,
is the actual set of operations or activities through which various resources are utilized to
produce finished goods or services of value to customers or clients. Operations management
today pays close attention to the demands of quality, customer service, and competition. The
process begins with attention to the needs of customers: What do they want? Where do they
want it? When do they want it? Based on the answers to these questions, managers line up
resources and take any action necessary to meet customer expectations.
THEORISTS
i. F.W. Lanchester – predicts success or probability towards success or defeat
ii. Thomas Alba Edison – studied anti-submarine warfare to come up with a means to
evade and destroy submarines with the use of surface ship
iii. A.K. Erlag – Danish Mathematician, who makes formula which are fundamental to
telephone traffic
The definition of quality as per the ISO 9000 standard is: “The totality of features and
characteristics of a product or service, that bear on its ability to satisfy a given or implied
need”.
APPROACHES:
a. Kaizen Approach
The commitment to work toward steady, continual improvement. The best support for
continuous improvement is an organization of people who give a high priority in learning. In this
process, everyone in the organization participates by identifying opportunities for improvement,
testing new approaches, recording the results and recommending changes.
b. Reengineering Approach
The reengineering approach to management focuses on creating change-big change-and
fast. It centers on sensing the need to change, seeing change coming and reacting effectively
to change when it comes.
Reengineering is the radical design of business process to achieve dramatic
improvements in cost, quality, service and speed.
QUALITY GURUS (spiritual guide who are considered to have attained complete insight on quality)
Although the Japanese revered Deming, he was largely unknown to business leaders in
the United States. In fact, he worked with the Japanese for almost 30 years before he
gained recognition in his own country. Before his death in 1993, U.S. companies
turned their attention to Deming, embraced his philosophy, and requested his assistance
in setting up quality improvement programs.
Deming compiled a famous list of 14 points he believed were the prescription needed to
achieve quality in an organization. His message was that the cause of inefficiency and
poor quality is the system, not the employees. Deming felt that it was management’s
responsibility to correct the system to achieve the desired results. In addition to the 14
points, Deming stressed the need to reduce variation in output (deviation from a
standard), which can be accomplished by distinguishing between special causes of
variation (i.e., correctable) and common causes of variation (i.e., random).Deming’s
concept of profound knowledge incorporates the beliefs and values about learning
that guided Japan’s rise to a world economic power.
Genichi Taguchi. “ANY DEVIATION FROM THE TARGET VALUE REPRESENTS POOR
QUALITY”
Taguchi is best known for the Taguchi loss function, which involves a formula for
determining the cost of poor quality. The idea is that the deviation of a part from a
standard causes a loss, and the combined effect of deviations of all parts from their
standards can be large, even though each individual deviation is small. An important part
of his philosophy is the cost to society of poor quality.
Taguchi Loss Function
A Japanese quality expert, holds a nontraditional view of what constitutes poor
quality, and hence the cost of poor quality. The traditional view is that as long as
output is within specifications, there is no cost. Taguchi believes that any deviation
from the target value represents poor quality, and that the farther away from target
a deviation is, the greater the cost. The implication for Taguchi is that reducing the
variation inherent in a process (i.e., increasing its capability ratio) will result in
lowering the cost of poor quality, and consequently, the loss to society.
Shigeo Shingo. “ERRORS ARE INEVITABLE, AND DEFECTS, ARE RESULT WHEN AN
ERROR REACHES A CUSTOMER”
Shigeo Shingo made a very significant contribution to lean operation (highly skilled
workforce and flexible equipment) with the development of what is called the single-
minute exchange of die (SMED) system for reducing changeover time. It involves first
MANAGEMENT 101/11 – PRINCIPLES OF MANAGEMENT MS. ASMA GURO BENITO (INSTRUCTOR)
categorizing changeover activities as either “internal” or “external” activities. Internal
activities are those that can only be done while a machine is stopped (i.e., not running).
Hence, they contribute to long changeover times. External activities are those that do not
involve stopping the machine; they can be done before or after the changeover. The
Poka-yoke or mistake proofing system is the principle of stopping error before it becomes
defect. One the error is detected, the production is stopped, error is corrected and once
corrected, the production continues.
BIG DATA focuses on using technology for growth and value creation. Big data is a broad
term for data sets so large or complex that traditional data processing applications are
inadequate. Accuracy in big data may lead to more confident decision-making. And better
decisions can mean greater operational efficiency, cost-reductions, and reduced risks.
▪ Definition: datasets that grow so large that they become awkward to work with using on-hand
database management tools
▪ Challenge: capturing, storing, searching, sharing, analyzing, and visualizing.
▪ Characteristics:
1. Volume - large amount of data we are getting from many sources as the world becomes
more and more instrumented
2. Variety - data we receive can be structured, semi-structured, or unstructured
3. Velocity - we are being bombarded with these data at huge speeds, all the time, any time
4. Veracity - level of uncertainty and reliability associated with the types and sources of data
(e.g., the utility of www.snopes.com to verify viral posts on the internet)
ACTIVITY 3
Decide what is the appropriate management approach. Discuss.
Planning is defined as selecting the best course of action in anticipation of future trends so that the
desired result may be achieved. It must be stressed that the desired result takes first priority and
the course of action chosen is the means to realize the goal.
Before a manager can tackle any of other functions, he must first devise a plan. A plan is a blueprint
for goal achievement that specifies the necessary resource allocations, schedules, tasks and other
actions.
1. Strategic Planning for Top Management. Strategic Planning refers to the process of
determining the major goals of the organization and the policies and strategies for obtaining
and using resources to achieve those goals. In here, the whole company is considered,
specifically its objectives and current resources. The output of strategic planning is the
strategic plan, which spells out the decision about long-range goals and the course of action
to achieve those goals.
2. Intermediate Planning for Middle Managers. Intermediate planning refers to the process of
determining the contributions that subunits can make with allocated resources. In here, the
goals of a subunit are determined and a plan is prepared to provide a guide for the realization
of the goals. It is designed to support the strategic plan.
It is the responsibility of the leader/manager to define the company vision, mission, goals, objectives,
goals and values and to share these to everyone in the organization.
Vision
A commonly shared picture of what the organizations wants and is committed to become sometime
in the future. It is the guiding and motivating compass of the organization-capturing the desired spirit
of its people can passionately make the organization to become. A vision can be expressed as the
state in the future of what the organization’s services, customers, stakeholders, core competencies,
processes, and structure may be.
Mission
It is an enduring statement of purpose of an organization’s existence that distinguishes itself from
others. It answers the questions: Who are we? Why do we exist?
Objectives
Prime parts of the plan. The estimated end results/direction desired or expected by the organization
in the future.it is usually expressed in quantifiable manner.
Values
Are fundamental and shared beliefs that will provide the organization’s behavior in meeting its
objectives and in dealing with others. It is the organization’s moral compass. They answer the
question, “What is important to us?”
ASSIGNMENT
What is your MISSION, VISION, GOALS, OBJECTIVES and VALUES in life?
ACTIVITY 4
Arrange in order the Formal Planning Process
2. Developing Strategies or Tactics to Reach Goals. After determining the goals, the next
task is to devise some means to realize them. the ways chosen to realize the goals are called
strategies and these will be the concern of top management. The middle and lower management
will adapt their own tactics to implement their plans.
Strategy is a course of action aimed at ensuring that the organization will achieve its
objectives. Tactic is a short-term action by management to adjust to negative or external
influences. They are formulated and implemented in support of the firm’s strategies.
The decision of a construction firm’s management to diversify its business by also engaging in
the trading of construction materials and supplies. (strategy)
Hiring of contractual workers to augment the company’s current workforce. (tactic)
3. Determining the Resources Needed. When particular sets of strategies and tactics have
been devised, the manager will then determine the human and non-human resources required
by such strategies and tactics. Even if the resource requirements are currently available, they
must be specified.
A new business unit will be organized to deal with the buying and selling of construction
materials and supplies. The amount of P55million shall be set aside to finance the activity.
Qualified persons shall be recruited for the purpose.
4. Setting Standards. The standards for measuring performance may be set at the planning
stage. When actual performance does not match with the planned performance, corrections may
me made or reinforcements given.
Standard is a quantitative or qualitative measuring device designed to help monitor the
performance of people, capital, goods, or processes.
The minimum number of units that must be produced by a worker per day in a given work
situation.
1. Recognizing the planning barriers. Various barriers can inhibit successful planning. In order
for plans to be effective and yield the desired results, managers must identify any potential
problems and work to overcome them.
Manager’s inability to plan or inadequate planning. Managers are not born with the
ability to plan. Some managers are not successful planners because they lack the
background, education, and/or ability. Other may have never been taught how to plan.
When these two types of managers take the time to plan, they may not know how to
conduct planning as a process.
Improper planning process. The development of a plan is hard work; it is much easier
for a manager to claim that he or she doesn’t have the time to work the required planning
process than to actually devote the time to developing a plan.
Lack of commitment to the planning process. Fear of failure of managers may result
to choosing to do little thing or nothing to help in the planning process.
Improper information. Facts are out-of-date, of poor quality, or of insufficient quantity.
Focusing on the present at the expense of the future. Failure to consider the long-
term effects of a plan because of emphasis on short term problems may lead to trouble
in preparing for the future. Managers should try to keep the big picture-their long-term
goals-in mind when developing their plans.
Too much reliance on the planning department. Many companies have a planning
department or a planning and development team. These departments conduct studies,
do research, build models, and project probable results, but they do not implement plans.
Concentrating on only the controllable variables. Managers can find themselves
concentrating on the things and events that they can control, such as new product
development, but then fail to consider outside factors, such as poor economy.
2. Using the aids in planning
Gathering as much information as possible
Developing multiple sources of information
Involving others in the planning process
3. Adapt appropriate tools and techniques
Qualitative Techniques – the use of intuition and subjective judgment in planning
Quantitative Techniques – the use of rational and analytical methods in planning
➢ Forecasting – attempting to predict future
➢ Scheduling – planning time for completion of activities
➢ Management by Objectives – a philosophy of converting organizational objectives
to personal objectives
ACTIVITY 5
1. Prove or disprove the statement: “Planning is everyone’s job in the organization including those
in the non-management levels”.
2. Summarize ways to make planning effective
The manager’s decision making skills are very crucial to his success as a professional. A major
blunder in his decision making may be sufficient to cause destruction of his organization. On the
other hand, when good decisions are made, the right environment is provided for continuous growth
and success of any organized effort.
Decisions are made at various management levels and at various management functions. Because
of this, decision making is regarded as “the heart” of all management functions.
2. Analyzing the Environment. The environment where the organization is situated plays a
very significant role in the success or failure of such an organization. It is, therefore, very
important that an analysis of the environment is undertaken. In here the objective is the
identification of constraints, which may be internal or external limitations.
Internal Environment consists of organizational activities within a firm that surround
decision making. External Environment refers to variables that are outside the organization
and not typically within the short-run control of top management. The government, labor
unions, suppliers, banks, public, competitors, climate, and professional managers comprises
the external environment while the organizational structure, policies, procedures, rules, ability
of management, products strategy, promotion strategy, recruitment processes, incentive
systems, inventory control, plant facility layout, and profitability of the organizations are the
internal environment of a firm.
3. Develop Viable Alternatives. Oftentimes, a problem may be solved by any of the solutions
offered. In solving a problem, however, the best among the alternative solutions must be
considered by management. This is made possible by using a procedure with the following
steps: prepare a list of alternative solutions; determine the viability of each solutions; and
revise the list by striking out those which are not viable.
4. Evaluate Alternatives. After determining the viability of the alternatives and a revised list is
made, an evaluation of the remaining alternatives is necessary. This is important because
the next step involves making a choice. Proper evaluation makes choosing the right solution
less difficult.
How the alternatives will be evaluated will depend on the nature of the problem, the objective
of the firm, and the nature of the alternatives presented. Each alternative must be analyzed
and evaluated in terms of value or the benefits that can be expected from it, cost (out-of-
pocket cost, opportunity cost, and follow-on cost) and risk characteristics which refer to
the likelihood of achieving the goals of the alternatives.
5. Make a Choice. After the alternatives have been evaluated, the decision-maker must now
be ready to make a choice. This is the point where he must be convinced that all the previous
steps were correctly undertaken.
6. Implement Decision. After decision has been made, implementation follows. This is
necessary or decision making will be an exercise in futility. Implementation refers to carryout
out the decision so that the objectives sought will be achieved. To make implementation
effective, a plan must be devised.
At this stage, the resources must be made available so that the decision may be properly
implemented. Those who will be involved in implementation must understand and accept the
solution; otherwise, the execution of the plan will be a failure.
7. Evaluate and Adapt Decision Results. In implementing the decision, the results expected
may or may not happen. It is, therefore, important for the manager to use control and
feedback mechanisms to ensure results and to provide information for future decisions.
Feedback refers to the process which requires checking each stage of the process to assure
that the alternatives generated, the criteria used in evaluation, and the solution selected for
implementation are in keeping with the original goals and objectives. Control refers to
actions made to ensure that activities performed match the desired activities or goals that
have been set.
In this stage of the decision making process, the manager will find out whether or not the
desired result is achieved. If the result was positive, one may assume that the decision made
was good. Otherwise further analysis is necessary.
ACTIVITY 6
Essay on one poor decision made in the past and how are you going to make better decisions in the
future.
Classification of Organizations
Formal and Informal Organizations
Formal Organization “is the part of the system that has legitimacy and official
recognition”. It is the planned structure representing the intended configuration of
positions, job duties, and lines of authority among the components parts of the
organization.
Informal Organization is not a part of the formal organization and it does not have a
formal performance purpose. It is formed through friendship, common interest,
proximity, need satisfaction, collective power, group goals, and etc.
Advantages
• span of control is narrower, supervisory load is less
• more opportunities for promotion, more levels of position
• opportunities to specialize
• less demand for managers with multiple skills
• managers are afforded with more time to attend to other important problems
Disadvantages
• communications tend to be slower and distorted because of the number of levels
it has to pass through
• number of management levels also hinders effective decision making
• more expensive to maintain as there are more to compensate
Advantages
• communication is generally faster and less distorted
• decisions can be made quickly
• supervisor’s salaries are eliminated
Disadvantages
• require manager’s with experience in the various tasks
• a manager may have a little time for all subordinates
• when the manager is out, the group has no leader
• managers may have a little time to anticipate problems
2. Staff Function supports line authority by advising, servicing and assisting but the
authority is typically limited. An example of staff functions are HR, Quality
Assurance, and Corporate Planning.
Advantages
• provide expertise, advice, and support for the line positions
• managers have assistants delegated with specific advisory responsibility
Disadvantages
• limited authority
• they don’t have to be obeyed
Advantages
• efficient use of resources
• in-depth skill development
• clear career paths
• unity of direction
• enhanced coordination within functions
Disadvantages
• slow decision making
• less innovation
• unclear performance responsibility
• poor coordination across functions
2. Divisional Design is that type where all activities needed to produce a good or
service are grouped together into independent units
.
Advantages
• adaptation to unstable environment
• high customer satisfaction
• high task coordination
• clear performance responsibility
Disadvantages
• inefficient use of resources
• focus is on division objectives
• loss of control
• costly
Advantages
• allows demands from the environment to be met simultaneously
• provides flexibility
• encourages resource efficiency
• enhances skill development
• increases motivation and commitment among employees
• aids top management in planning
Disadvantages
• creates confusion
• power struggles within the group are potential problems
• place stress on individuals
• Organizational Chart
The visual representation of the structure of the organization.
8.3 Delegation
The downward transfer of authority from a manager to a subordinate.
Most organizations today encourage managers to delegate authority in order to provide maximum
flexibility in meeting customer needs. In addition, delegation leads to empowerment, in that people
have the freedom to contribute ideas and do their jobs in the best possible ways. This involvement
can increase job satisfaction for the individual and frequently results in better job performance.
Without delegation, managers do all the work themselves and underutilize their workers. The ability
to delegate is crucial to managerial success.
PRINCIPLES IN DELEGATION
Principle 1 Match the Employee to the Task. Managers should carefully consider the employees
to whom they delegate tasks. The individual selected should possess the skills and
capabilities needed to complete the tasks. Perhaps even more important is to delegate
to an individual who is not only able to complete the task but also willing to complete
the task. Therefore, managers should delegate to employees who will view their
accomplishments as personal beliefs.
Principle 2 Be Organized and Communicate Clearly. The manager must have a clear
understanding of what needs to be done, what deadlines exist, and what special skills
are required. Furthermore, managers must be capable of communicating their
instructions effectively if their subordinates are to perform up to their expectations.
Principle 3 Transfer Authority and Accountability with the Task. The delegation process is
doomed to failure if the individual to whom the task is delegated is not given the authority
to succeed at accomplishing the task and is not held accountable for the results as well.
Managers must expect employees with the necessary resources and power to succeed,
giving them timely feedback on their progress, and holding them fully accountable for
MANAGEMENT 101/11 – PRINCIPLES OF MANAGEMENT MS. ASMA GURO BENITO (INSTRUCTOR)
the results of their efforts. Managers also should be available to answer questions as
needed.
Principle 4 Choose the Level of Delegation Carefully. Delegation does not mean that the manager
can walk away from the task or the person to whom the task is delegated. The manager
must maintain some control of both the process and the results of the delegated
activities. Depending upon the confidence the manager has in the subordinate and the
importance of the task, the manager can choose to delegate at several levels.
Departmentation is the grouping of jobs based on criteria that managers believe to help in the
coordination and control of activities. A decision must also be made on whether the organization
would be departmentalized or not. Departmentation advantages are:
- Supervision is made easier
- The sharing of resources results in maximum use of resources
- Common measures of performance are established
- Communication is encouraged
TYPES
1. According to Knowledge and Skills
2. According to Work Process and Function
3. According to Time
4. According to Product
5. According to Customer
6. According to Location
8.5 Reorganization
Reorganization is the process by which an existing organization undergoes changes in the size
and shape of the organization structure. It involves changes in hierarchy of authority, goals,
structural characteristics, administrative procedures and management systems.
Opposition to Change
➢ Uncertainty and insecurity
➢ Reaction against the way change is presented
➢ Threats to vested interests
➢ Cynicism and lack of trust
➢ Perceptual differences and lack of understanding
➢ Faulty thinking
➢ Inadequate change process
➢ Insufficient resources
➢ Lack of commitment to change
➢ Poor timing
➢ A culture resistant to change
ACTIVITY 7
Discuss the statement:
“When the appropriate structure is determined, the firm no longer has to worry about structure.”
Staffing is a managerial function that determines human resources needs, recruits, selects, trains,
and develops human resources for jobs created by an organization. It is undertaken to match
people with jobs so that the realization of the organization’s will be facilitated. Attracting,
developing, rewarding and retaining the people needed to reach organizational goals are the
activities that make up the staffing function.
2. Recruitment. When different positions had been identified as necessary and the decision to
fill them with persons had been made, the next logical step is recruitment. Recruitment refers
to attracting qualified persons to apply for vacant positions in the company so that those who
are best suited to serve the company may be selected.
Keep in mind that recruiting strategies differ among organizations. Although one may
instantly think of campus recruiting as a typical recruiting activity, many organizations use
internal recruiting, or promote-from-within policies, to fill their high-level positions. Open
positions are posted, and current employees are given preferences when these positions
become available. Internal recruitment is less costly than an external search. It also
generates higher employee commitment, development and satisfaction because it offers
opportunities for career advancement to employees rather than outsiders.
If internal sources do not produce an acceptable candidate, many external recruiting
strategies are available, including the following:
MANAGEMENT 101/11 – PRINCIPLES OF MANAGEMENT MS. ASMA GURO BENITO (INSTRUCTOR)
• Newspaper Advertising
• Recruitment Firms (private, public or temporary agencies)
• Employee Referrals
• Internship Programs
• Internet Employment Sites
• Schools/Universities
• Competitors
3. Selection. This refers to the act of choosing from those that are available individuals the
most likely to succeed on the job. A requisite for effective selection is the preparation of a list
indicating that an adequate pool of candidates is available. The purpose of selection is to
evaluate each candidate and to pick the most suited for the position available.
4. Induction and Orientation. After an applicant is finally selected and subsequently hired, the
next step to be undertaken are induction and orientation.
In induction, the new employee is provided with the necessary information about the
company. His duties, responsibilities, and benefits are relayed to him. Personnel and health
forms are filled out, and passes are issued. The company history, its products and services,
and the organization structure are explained to the new employee.
In orientation, the new employee is introduced to the immediate working environment and
co-workers. Location, rules, equipment, procedures, training plans, and performance
expectations are discussed. The new employee also undergoes the “socialization process”
by pairing him with an experienced employee and having a one-on-one discussion with the
manager.
Training refers to the learning that is provided in order to improve job performance. It is a
systematic development of the attitude/ knowledge / behavior patterns for the adequate
performance of a given job or task.
b. Training Programs for Managers. The training needs of managers may be classified
into four types: decision-making skills, interpersonal skills, job knowledge and
organizational knowledge.
2. Interpersonal Competence
i. Role-Playing. In this method, the trainees are assigned with roles to playing
a given case incident. They are provided with a script or a description of a
given problem and of the key persons they are to play. Th purpose of this
method is to improve the skill of the trainees in human relations, supervision
and leadership.
ii. Behavior Modeling. It attempts to influence the trainee by showing model
persons behaving effectively in a problem situation. The trainee is expected
to adapt the behavior of the model and use it effectively in some instances
later on.
iii. Sensitivity Training. Under this method, awareness and sensitivity to
behavioral patterns of oneself and others are developed.
iv. Transactional Analysis. This method intends to help individuals not only
understand themselves and others but also improve their interpersonal
communication skills. This is actually the study of social transactions
between people so as to develop improved communication and human
relationships.
ACTIVITY 8
Briefly explain the statement:
“A right person for the right job determines work performance.”
ASSIGNMENT
1. Discuss the benefits of effective staffing in the face of competition and survival
2. Explain the value of HR Planning in ensuring achievements of organizational goals
Assets, even if they are abundant, cannot, on their own, achieve company objectives. Human
resources, even if they are fully trained and properly motivated, may still proceed to move toward
the wrong direction. Some employees are easily affected by disruptions and minor failures. The
potential damage may be great if these few persons perform key functions. The effective use of
assets will need the wisdom of somebody who will provide guidance on their proper utilization.
Somebody must console the employees who are distracted by minor setbacks. Somebody must
uplift their spirits when they feel demoralized.
Successful firms recognize the need to address the above-mentioned concerns and the answer
lies on effective directing. As a result, they place a high priority on providing trainings on
leadership, communication and motivation.
Managers, in whatever level they happen to be, are not exempted from the problem of effective
directing. If this is really so, then they must be concerned with the management function of
directing.
10.2 Communication
People organize themselves into groups to facilitate the achievement of objectives. The
synchronization of activities will make the organization more effective and efficient. This
may be made possible, however, if each member knows exactly what his responsibilities
are, where and when his actions will be required, and how intense his action should be.
Proper understanding of responsibilities is a function of effective communication. A
person will perform according to what he perceives to be his role and the right perception
of roles happens with sufficient motivation. The success of efforts to motivate, however,
will depend on whether or not they are properly communicated.
Communication Defined
Communication is the process of sharing information through verbal and nonverbal
means, including words, messages, and body movements.
Communication is the transfer of information and understanding from one person to
another person. It is a way of reaching others by transmitting ideas, facts, thoughts,
feelings, and values. Its goal is to have the receiver understand the message as it was
intended. When communication is effective, it provides a bridge of meaning between the
two people so that they can share what they feel and know. By using this bridge, both
parties can safely cross the river of misunderstanding that sometimes separates people.
Importance of Communication
Organizations cannot exist without communication. If there is no communication,
employees cannot know what their co-workers are doing, management cannot receive
information inputs, and supervisors and team leaders cannot give instructions.
Coordination of work is impossible, and the organization will collapse for lack of it.
Cooperation also becomes impossible, because people cannot communicate their needs
and feelings for others. We can say with confidence that every act of communication
influences the organization. Communication helps accomplish all the basic management
functions-planning, organizing, leading and controlling – so that organizations can
achieve their goals and meet their challenges.
MANAGEMENT 101/11 – PRINCIPLES OF MANAGEMENT MS. ASMA GURO BENITO (INSTRUCTOR)
When the communication is effective, it tends to encourage better performance and job
satisfaction. People understand their jobs better and feel more involved in them. In some
instances, they even will voluntarily give up some of their long-established privileges
because they see that a sacrifice is necessary.
Poor Communication is probably the most frequently cited source of interpersonal conflict.
Because individuals spend nearly 70 percent of their waking hours communicating –
writing, speaking, listening – it seems reasonable that one of the biggest inhibitors of
group performance is lack of effective communication. Good communication skills are
critical to career success. Polls or recruiters nearly always show communication skills
among the most desired characteristics.
No individual, group or organization can exist without sharing meaning among its
members. It is only thus that we can convey information and ideas. Communicating is
more than merely imparting meaning, that meaning must be understood. Communication
must include both the transfer and the understanding of meaning.
Functions of Communication
Communication may be used to serve nay of the following functions:
1. Information Function. Information provided through communication may be used in
decision making at various levels in the organization. Decisions are often dependent
upon the quality and quantity of information received.
2. Motivation Function. Communication is used to motivate employees to commit
themselves to the organization’s objectives. When objectives are clearly stated,
direction is provided, and achieving them becomes a matter of course.
3. Control Function. When reports, policies and plans define roles; clarify duties,
authorities and responsibilities are property communicated then effective control is
facilitated.
4. Emotive Function. When feelings are repressed, employees are affected by anxiety,
which in turn, affects performance. Whatever types of emotions are involved, whether
satisfaction, dissatisfaction, happiness, or bitterness, communication provides a
means to decrease the internal pressure affecting the individual.
Communication Symbols
1. Words – main communication symbol used on the job. “Words do not provide meaning,
but people do”
2. Pictures – used to clarify word communication such as blueprints, charts, diagrams,
causal maps, visual aids in training programs, scale models of products and similar
devices. “A picture is worth a thousand words”
3. Action (nonverbal Communication) – “Actions speak louder than words” body
language, facial expressions
2. UPWARD COMMUNICATION
Upward communication flows to a higher level in the group or organization. It’s used to
provide feedback to higher-ups, inform them of progress toward goals, and relay current
problems. Upward communication keeps managers aware of how employees feel about
their jobs, co-workers, and the organization in general. Managers also rely on upward
communication for ideas on how conditions can be improved.
3. HORIZONTAL COMMUNICATION
When communication takes place among members of the same work group, members of
work groups at the same level, managers at the same level, or any other horizontally
equivalent workers, is describe as lateral communication. Lateral communication saves
MANAGEMENT 101/11 – PRINCIPLES OF MANAGEMENT MS. ASMA GURO BENITO (INSTRUCTOR)
time and facilitates coordination. Among the techniques appropriate for horizontal
communication are: memos, meetings, telephones, picnics, dinners, and other social
affairs.
The purpose of horizontal communication are:
a. To coordinate activities between departments;
b. To persuade others at the same level of organizations; and
c. To pass on information about activities or feelings.
BARRIERS TO COMMUNICATION
Various factors may impede the efficient flow of communication. Any or all of these factors
may, at any stage, derail the process. Even if the message is transmitted by the channel,
the timing and the meaning of the message may be affected by some factors. The barriers
to communication may be classified generally as:
Emotion cloud the communicator’s ability to correctly judge the real meaning of the
messages received, assuming that this could even be received at all. People with
different values will find it hard to communicate with each other. Poor listening habits
of a receiver frustrate the communication efforts of the sender. The sex, age, race,
socioeconomic status, religion, and education of both the sender and the receiver
provide formidable barriers to effective communication.
Physical barriers include distances between people, walls, a noisy sound system near
a phone, etc. an office that is too classy may sometimes inhibit a person from meeting
the occupant of the office face-to-face. A menacing pet dog (or secretary) posted near
the door may also prevent a person from directly communicating with the object
person behind the door.
For example, the words “wise” and “salvage” will be interpreted differently by an
English-speaking foreigner from the way the Filipinos, interpret them.
ACTIVITY 9
1. “Watch what we do, not what we say.” Is this a good practice in organizations? Explain.
2. Poor communication of the organization’s goals is often given as the reason for low performance
of the organization. do you think that this is usually a valid explanation?
10.3 Motivation
Business must produce outputs that will help maintain their competitive stance in the
market. Products or services must be produced with the least cost, even if it is only one
of the factors required for business survival and growth.
Economy in production, however, will depend on how motivated the employees are in the
performance of their assigned tasks. As the outputs will be needed by customers in
various qualities and quantities, at different times and places, the firm must be able to
deliver the requirement, or it will be driven out of the market.
It will take a different motivation level to meet quality standards than to produce the
required quantity. Although motivation is a common ground among the various activities,
the levels may not be so, and this makes motivation a complicated undertaking.
Motivation Defined
The process of activating behavior, sustaining it and directing it towards a particular goal.
Motivating refers to the act of giving employees reasons or incentives to work to achieve
organizational objectives.
Elements of Motivation
The three key elements are intensity, direction and persistence. Intensity describes
how hard a person tries. This is the element most of us focus on when we talk about
motivation. However, high intensity is unlikely to lead to favorable job-performance
outcomes unless the effort is channeled in a direction that benefits the organization.
Therefore, we consider the quality of effort as well as its intensity. Effort directed toward
that consistent with the organization’s goals, is the kind of effort we should be seeking.
Finally, motivation has a persistence dimension. This measures how long a person can
maintain effort. Motivated individuals stay with a task long enough to achieve their goal.
If he finds a job, he will put his best efforts to satisfy his employers. With his good
performance and ability, he is then rewarded for his efforts. Then, his need is satisfied.
In motivating through the use of job design, two approaches may be used:
a. Fitting People to Jobs. Routine and repetitive tasks make workers suffer from
chronic dissatisfaction. To avoid this, the following remedies may be adapted:
i. Realistic Job Preview – undertaken by management by “conveying to
applicants what organizational life will actually be like on the job, warts and
all.”
ii. Job Rotation – undertaken when people are moved periodically from one
specialized job to another.
iii. Limited Exposure – undertaken when a worker’s exposure to a highly
fragmented and tedious job is limited.
Employees must believe that efforts will lead to reward. Otherwise, they will not strive to
turn in more efforts in their particular job assignments.
Rewards that are not equitable will not produce the desired motivation. When employees
know that reward is tied up with individual performance, management may expect extra
efforts from them. a negative example is the practice in some government offices where
every employee, regardless of performance, is given a productivity bonus. As a result,
the majority is not motivated to exert extra efforts.
The self-managed team works on their own, turning out a complete product or
service and receiving minimal supervision from managers who act more as
facilitators then supervisors. When a product or service is produced by a group of
MANAGEMENT 101/11 – PRINCIPLES OF MANAGEMENT MS. ASMA GURO BENITO (INSTRUCTOR)
professionals or specialists, they might as well be formed as a self-managed team
to save on supervisory costs.
A. CONTENT THEORIES - focus on human wants and needs or desires that are
internalized and give impetus to individual behavior
This approach proposes that unsatisfied needs motivates behavior, and that as
lower level needs are satisfied, they become less important. Higher level needs
though, become more important as they are satisfied, and if these needs are not
met, a person may move down the hierarchy, which Alderfer calls the frustration-
regression principle. What he means by this term is that an already satisfied
lower level need can become reactivated and influence behavior when a higher-
2. Need for Power (nPow) - The need to make others behave in a way in which
they would not have behaved otherwise.
3. Need for Affiliation (nAff) - The desire for friendly and close interpersonal
relationships.
People with the need for affiliation seek companionship, social approval, and
satisfying interpersonal relationships. People needing affiliation display the
following behaviors:
Take a special interest in work that provides companionship and social
approval
Strive for friendship
Prefer cooperative situations rather than competitiveness
Desire relationships involving a high degree of mutual understanding
May not make the best managers because their desire for social approval
and friendship may complicate managerial decision making
6. SELF-DETERMINATION THEORY
A theory of motivation that is concerned with the beneficial effects of intrinsic
motivation and the harmful effects of extrinsic motivation.
Edwin Locke proposed that intentions to work toward a goal are a major
source of work motivation. That is, goals tell an employee what needs to be
done and how much effort is needed. Evidence strongly suggests that
specific goals increase performance; that difficult goals, when accepted,
result in higher performance than do easy goals; and that feedback leads
to higher performance than does non-feedback.
The best way for a manager to use verbal persuasion is through the Pygmalion effect or
the Galatea effect. The Pygmalion effect is a form of self-fulfilling prophecy in which
believing something can make it true. This strategy has been used in the workplace.
Sailors who were told convincingly that they would not get seasick were in fact much less
likely to do so. Intelligence and personality are absent from Bandura’s list, but they can
increase self-efficacy. People who are intelligent, conscientiousness, and emotionally
stable are so much more likely to have high self-efficacy that some researchers argue
self-efficacy is less important than prior research would suggest. They believe it is partially
a by-product in a smart person with a confident personality. Although Bandura strongly
disagrees with this conclusion, more research is needed.
Finally, if I’m rewarded, are the rewards attractive to me? The employee works
hard in the hope of getting a promotion but gets a pay raise instead. Or the employee
wants a more interesting and challenging job but receives only a few words of praise.
Unfortunately, many managers are limited in the rewards they can distribute, which
makes it difficult to tailor rewards to individual employee needs. Some incorrectly
assume all employees want the same thing, thus overlooking the motivational effects
of differentiating rewards. In either case, employee motivation is sub maximized.
Harvard’s John Kotter says that management is about coping with complexity, and
leadership is about coping with change. He also states that leadership is an important
part of management, but only a part; management also requires planning, organizing,
staffing, and controlling. Management produces a degree of predictability and order.
Leadership produces change. Kotter believes that most organizations are underled and
overmanaged. He sees both strong leadership and strong management as necessary for
optimal organizational effectiveness.
MANAGEMENT 101/11 – PRINCIPLES OF MANAGEMENT MS. ASMA GURO BENITO (INSTRUCTOR)
We need leaders today to challenge the status quo, create visions of the future, and
inspire organizational members to want to achieve the visions. We also need managers
to formulate detailed plans, create efficient organizational structures, and oversee day-
to-day operations.
Leadership Defined
The ability to influence a group toward the achievement of a vision or set of goals.
APPROACHES TO LEADERSHIP
b. According to the way the leader uses power. Leadership styles also vary
according to how power is used.
i. Autocratic Leadership. Leaders who make decisions without consulting
subordinates. Motivation takes the form of threats, punishment, and
intimidation of all kinds. The autocratic style is effective in emergencies and
when absolute followership is needed. The disadvantage is that the leader
receives little, in any, information, ideas, and suggestions from his subordinates
as inputs into his decision making.
ii. Participative Leadership. When a leader openly invites his subordinates to
participate or share in decision making, policy-making, and operation methods.
The advantage is that it generates a lot of good ideas, an increase in support
for decisions made and the reduction of the chance that they will be
unexpectedly undermined. The disadvantage is that it is time-consuming and
frustrating to people who prefer to see a quick decision made.
iii. Free-rein Leadership. Leaders who set objective and allow employees or
subordinates’ relative freedom to do whatever it takes to accomplish those
objectives. They are also referred to as laissez faire leaders. This is most
applicable to certain organizations manned by professionals like doctors and
engineers.
If free-rein leadership fits the situation, there is a full managerial delegation
resulting in optimum utilization of time and resources. This happens because
many people are motivated to full effort only if allowed to work under the free-
rein leadership style. The weakness of free-rein leadership is that there is a
very little managerial control and a higher degree of risk. If the leader does not
know well the competence and integrity of his people, as well as their ability to
handle this kind of freedom, the result could be disastrous.
ACTIVITY 12
What type of controlling technique do you believe that you must know to ensure that you accomplish
your plans and objectives?
ASSIGNMENT
Submit an essay on 3 practical experiences applying the functions of POSDICON
FINAL ASSIGNMENT
Submit a journal on the learnings in Management 101/11 (Principles in Management) and how
MGT101/11 can help you in the future.