Organization Management

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Organization
- An ordered structure where people with various roles, responsibilities or positons coexist and
interact to achieve a particular goal.

Management
- 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 the
people. Its task includes planning, organizing, staffing, leading or directing and controlling.

Frederick W. Taylor
- Father of Scientific Management

William Edward Deming

- Father of Quality Management

Henri Fayol
- French Management Theorist
- Developed the fundamental notion of principles of management

Management as Science
- Developed in the early 20th century and focused on increasing productivity and efficiency through
standardization, division of labor, centralization, and hierarchy.
- A very “top down” management with strict control over people and processes dominated across
industries.

Authority and Responsibilities

- Refers to the issues 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.
- This principle suggests that there must be parity between authority and responsibility. They are
coexistent and go together, and are two sides of the same coin, and the authority must be
commensurate with responsibility.

Scalar Chain
- Refers to the chain of superiors ranging from top management to the lowest rank. The principle
suggests that there should be a clear line of authority from top to bottom linking all managers at all
level. It is considered a chain of command.
- However, there is a concept called a “gang plank”, in which a subordinate may contact a superior
in case of emergency, defying the hierarchy of control. In this event, the immediate superiors must
be informed about the matter.

Equity
- Employees must be treated kindly, and justice must be enacted to ensure a just workplace.
Managers should be fair and impartial when dealing with employees, giving equal attention toward
all employees.

Esprit de Corps
- Refers to the need of managers to ensure and develop morale in the workplace: individually and
communally. (Team Spirit)

Hard Skills
- It usually utilizes the Intelligence Quotient or IQ–also known as your left brain–the logical center.
- Rules where rule stays the same regardless of circumstance, organization culture, and co-employee.
- Can be learned in school or trainings. There are usually designated levels of expertise and a direct
path as to how one excels with each hard skill.

Soft Skills
- Usually takes Emotional Quotient or EQ–also known as your right brain–the emotional center.
- Skills where the rule change depending on the circumstances, organizational culture, and people
you work with.
- Most soft skills are not directly taught in school and have to be learned during interaction with
other people in school or during the on-the-job training.
The Iceberg Theory
- Originated from the writing style of the famous, Nobel-awarded novelist, Earnest Hemingway.
- Also know as the “Theory of Omission”
- Like an iceberg, what can be seen among the employees is the surface—“hard skills”. The “soft
skills” are not visible as they lie beneath the surface like an iceberg.

Values / Valor
- The word ‘values’ is taken from the root word ‘valor’ which means strength.
- Values are sources of strength because they give people the power of action.
- Our values are deep-seated standards that influence almost every aspects of our lives: our moral
judgements, our responses to others, our commitments to personal and societal goals.
- Values are lasting beliefs or ideals that are shared by all members of a company.

Different Types of Organizational Structures

- Structures are designed to accomplish different goals
- The structure of an organization is a crucial part in the progress of an organization since it can help
or hinder the organization in the movement toward accomplishing these goals.
• Line Structure
o has only direct, vertical relationships between different levels in the firm. There are line
departments inside a line structure. Line department are directly involved in accomplishing
the primary goals of the organization.
o A position that has direct chain of command that is responsible for the achievement of an
organization’s goals.

Three Common Types of Organizational Structures

1. Functional
▪ It is a set-up/structure wherein each department of the organization is grouped
according to its function or purpose. For example, there may be a marketing
department, sales department, and production department.
▪ It works very well for small businesses in which each department can support itself
by relying on the talents and knowledge of its workers.
2. Divisional
▪ Typically used in a larger companies or organizations with several branches or
outlets that operate in a wide geographic area or that have separate smaller
organizations within the umbrella group to cover different types of products or
markers areas.
3. Matrix Structure
▪ A hybrid of two structures namely, divisional and functional structure.
▪ Typically used in large multinational companies, the matric structure allows for
the benefits of functional and divisional structures to exist in one organization.

Two Broader Organizational Structure

1. Formal Organization Structure
▪ Usually represented with organizational charts and with position
descriptions.
2. Informal Organization Structure
▪ A set of evolving relationships and patterns of human interaction
within an organization that actually does exist but are not officially
prescribed.
▪ Are the informal leaders who sometimes exert influence to
organizational behavior.

PESTEL
- Stands for Political, Economic, Social, Technological, Environment, and Legal

Political Economic Social Technological Environmental Legal

1. Wage Order 1. Domestic 1. Media 1. Technology 1. Environmental 1. Current and
Increases Economy Views Development Issues Future
2. Government 2. Global 2. Company / 2. Competing 2. Environmental Legislation
Policies Economy Technology Technology Regulations 2. Regulatory
3. Shareholder 3. Taxation Image Development 3. Ecological Body and
/ Stockholders Issues 3. Education 3. Maturity of Processes
Needs and 4. Exchange / University Technology 3. Employment
Demands Rate Offerings Law
5. Inflation
 4. Lobbying / 4. Generation 4. Waste 4. Labor Cases
Pressure of Learners Removal / Filed
Group (Union- 5. War of Recycling
related groups) Talent

SMART Method
- Goals should be Specific, Measurable, Attainable, Results-focused, and Time-bound.
▪ Specific – Goals should reflect accomplishments that are desired, not ways to accomplish
them. Goals should generate specific actions and be detailed enough to be understandable
and give direction to others. “To improve operations” is not specific. “To increase
profitability by 10% by the end of the year” is a more specific statement of the goal.
▪ Measurable – Goals should be measurable to determine when they have been
accomplished. A method for measuring must be defined, preferably in quantitative terms
such as: in pesos, kilos, boxes, frequency, etc. There are however certain goals that are
difficult to quantify. At most, such goals can be defined only in terms of easily observable
behavior, ie, always smile to customers, safe work, place, etc.
▪ Attainable – The real art of setting goals is to create challenging, achievable target. A goal
is a standard of achievement. It should be challenging, but should not demand the
impossible. It should be attainable considering available resources.
▪ Result-focused – Goals should specify an end-result or outcome. You may instruct group
“to work together as a team” but if you don’t specify what the group is supposed to
accomplish, you are not results-focused. Working as a team might be the way for the group
to accomplish a results-focused goal such as “Ten sets of cell phones sold a week.”
▪ Time-bound – Specify a relatively short time for meeting the goal, from a few weeks to no
more than a year. Goals are generally more manageable this way.

SWOT Analysis
- The SWOT is a powerful planning tool. It stands for “Strengths, Weaknesses, Opportunities, and
Threats.”
▪ Strength – refers to internal competencies possessed by an organization that will enable it
to achieve its objectives.
▪ Weaknesses – refers to the areas that limit or inhibit an organization’s overall success.
▪ Opportunities – refers to economic, socio-cultural, political, technological, demographic,
and industrial trends and events that could significantly benefit an organization in the
future.
▪ Threats – refers to economic, socio-cultural, political, technological, demographic, and
industrial trends and events that are harmful to an organization’s present and future
competitive position.
- A SWOT should be prepared for each company business / product activities. The results of SWOT
analysis will guide you in making the action plans:
▪ Capitalize on “Strengths”
▪ Reduce “Weaknesses”
▪ Use “Opportunities”
▪ Neutralize, Convert “Threats” into Opportunities

Four Steps in Goal Setting

1. Data Gathering & Synthesizing Information
▪ Data gathering is useful for identifying crucial business requirements, as well as market
needs and tends
▪ Synthesizing Information is examining the entire scenario carefully; the nature of business,
the kind of product or service it will offer, its market demand, competition, etc.
2. Formulating Alternatives
▪ Come up with alternatives, or even a Plan B and Plan C, in case Plan A does not work
3. Deciding on Courses of Action
▪ The most difficult stage in the management process
▪ It includes an assessment of possible choices and chances along the way. You will be
confronted with challenges requiring objective analysis and judgement to deal with varying
situations, people with different interests, and critical incidents that offer opportunity to
succeed or fail.
▪ Deciding on the coursed of action also involves self-analysis. You have to know who you
are, what you have, and what you are capable of. Then, you have to look into where you
are, what resources outside or yourself you can use, the situation you are faced with, and
the foreseeable developments – favorable and unfavorable.
4. Establishing Goals
▪ Defining your goals is the fourth and final step in the planning process. You will not find
it difficult to set your goals if you have tool or technique to use. (SMART and KRA/KPI)
o SMART – Specific, Measurable, Attainable, Results-focused, Time-bound
o KRAs or Key Result Areas are high selective areas (usually four to five) in which
an organization must achieve a high level of performance. They are critical success
factors for the business.
o KRIs are indicators of performance established for each KRA.