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Organizational Management 1

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THE JOB

Chapter I
1. Would you like to be an ordinary employee of any
establishments/offices/firms or at least own a business? Why?
2. Why do you want to have your own business? or to be an
employee?
Learning Objectives:

1. To understand the meaning of management and


the evolution of management theories
2. To appreciate the importance of the application
of the GEMS cycle for the success and growth of
the business
3. To be aware of the critical role of a Manager and
his/her duties and responsibilities
TOP 10 COMPANIES TO WORK FOR IN 2018,
ACCORDING TO JOBSTREET
1. San Miguel Corp. 6. Coca-Cola Philippines
2. Nestle Philippines 7. SM Investment
3. Accenture Philippines8. Google Philippines
4. BDO Bank 9. Procter & Gamble Phils.
5. Ayala Corporation 10. ABS-CBN Corp.
Name: San Miguel Corporation
Products and Services: Food, beverage and
packaging company
Fuel and oil (Petron)
Power generation
Infrastructure
Information: Is the largest publicly listed food
beverage and packaging company in Southeast
Asia as well as the Philippines’ largest corporation
in terms of revenue with over 17,000 employees in
over 100 major facilities throughout the Asia-
Pacific region.
Its flagship product, San Miguel beer, is one
of the largest selling beer brands in the world.
(Manufacturing operations extend beyond)
Hong Kong, China, Indonesia, Vietnam, Thailand,
Malaysia, and Australia.
Management is the function that co-
ordinates the efforts of people to accomplish
goals and objectives by using available
resources efficiently and effectively.
It includes planning, organizing, staffing,
leading, or directing and controlling to
accomplish the organization’s goals.
The concern of business to improve
employee’s productivity and efficiency
triggered the development of
management theories.
It began in the late 19th century after
the Industrial Revolution but saw more
definitive form in the 20th century.
EVOLUTION OF MANAGEMENT THEORIES
1910s–1940s: Management as Science
Management as Science was 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.
1950s–1960s: Functional Organizations

Due to growing and more complex


organizations, the 1950s and 1960s saw the
emergence of functional organizations and the
Human Resource (HR) movement. Managers began
to understand the human factor in production and
productivity and tools such as goal setting,
performance reviews, and job descriptions were
born.
1970s: Strategic Planning
The focus is from measuring function to resource
allocation and tools like Strategic Planning, Growth Share
Matrix, and SWOT (identification and analysis of the
company’s Strengths, Weaknesses, Opportunities, and
Threats) were used to formalize strategic planning processes.
After several decades of ‘best practice’ and ‘one size fits all’
solutions, academics began to develop contingency theories.
1980s: Competitive Advantage
As the business environment grew increasingly competitive
and connected, and with a blooming management consultancy
industry, Competitive Advantage became a priority for
organizations in the 1980s. Tools like Total Quality
Management (TQM), Six Sigma, and Lean Management were
used to measure processes and improve productivity.
Employees were more involved by collecting data, but
decisions were still made at the top, and goals were used to
manage people and maintain control.
1990s: Process Optimization
Benchmarking and business process reengineering became
popular in the 1990s, and by the middle of the decade, 60% of
Fortune 500 companies claimed to have plans for or have already
initiated such projects. TQM, Six Sigma, and Lean remained popular
and a more holistic, organization-wide approach and strategy
implementation took the stage with tools such as Strategy Maps and
Balance Scorecards.
2000s: Big Data

Largely driven by the consulting industry under the banner


of Big Data, organizations in the 2000s started to focus 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
risk.
Henri Fayol (1841–1925) ––
French management theorist who
developed the fundamental notion of
principles of management.
FAYOL’S 14 PRINCIPLES OF
MANAGEMENT
 Division of Work  Equity
 Authority and Responsibility  Stability of Tenure of
 Discipline Personnel
 Unity of Command  Initiative
 Unity of Direction  Esprit de Corps
 Subordination of Individual
Interest
 Remuneration
 The Degree of Centralization
 Scalar Chain
 Order
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 specific personal and
professional development within the labor force and
therefore increasing productivity; leads to specialization
which increases the efficiency of labor.
Authority and Responsibility – 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.
Discipline – refers to obedience, proper conduct in relation to
others, respect of authority, etc.

Unity of Command – states that each subordinate should


receive orders and be accountable to one and one superior.
Unity of Direction – all those working in the same line
of activity must understand and pursue the same
objectives.

Subordination of Individual Interest – the management


must put aside personal considerations and put
company objectives firstly.
Remuneration – workers must be paid sufficiently as this is a
chief motivation of employees and therefore greatly
influences productivity.
Degree of Centralization – the amount of power wielded with
the central management depends on company size.
Scalar Chain – refers to the chain of superiors ranging from
top management to the lowest rank.
Order – social order ensures the fluid operation of a company
through authoritative procedure.
Equity – employees must be treated kindly, and justice must
be enacted to ensure a just workplace.
Stability of Tenure of Personnel – the period of service
should not be too short and employees should not be moved
from positions frequently.
Initiative – using it can add strength and new ideas to
an organization.
Esprit de Corps – refers to the need of managers to
ensure and develop morale in the workplace;
individually and communally.
FAYOL’S MANAGEMENT FUNCTION
 To organize
 To plan and forecast (Prevoyance)
 To command
To control
To coordinate
THE FOUR GEMS OF
MANAGEMENT:
Goal
Execution
Measurement
Sustenance
THE MANAGEMENT PROCESS

Management is a process, a non-stop process of


ensuring continuity and growth within an organization.
It involves Goal setting, Executing the plan,
Measuring results, and Sustaining operations, the 4
GEMS of Management.
THE GEMS MANAGEMENT CYCLE
THE GEMS MANAGEMENT WHEEL
THE GEMS MANAGEMENT CYCLE
Stage 1: Goal Setting

1. Synthesizing Information
2. Formulating Alternatives
3. Deciding on Courses of Action
4. Establishing Goals
THE GEMS MANAGEMENT CYCLE
Stage 2: Executing the Plan
5. Organizing
6. Communicating
7. Guiding
Stage 3: Measuring Results
Stage 4: Sustaining Growth
8. Promoting Change
9. Developing People
SHORT CASE FOR DISCUSSION
You are assisting in the small restaurant business of your
father. As it located in the university belt, sales was brisk and
pretty good. Your 10 employees consisting of a cook,
dishwasher, waiters/waitresses were paid properly in
accordance with the Minimum Wage Law. You complied with
all the Labor Standards such as SSS, PhilHealth, Pag-Ibig,
Medicare, etc. Your business permit was renewed yearly.
SHORT CASE FOR DISCUSSION
As they were handling foods. Your employees were duly
certified as healthy by the DOH. One day, 10 of your customers
suffered from nausea, vomited and were hospitalized.
Suddenly, health inspectors swooped down on your
restaurant. Knocking the inside portions of your refrigerators,
a swarm of cockroaches jumped out of them. Rats were found
running in your kitchen. Your restaurant was instantly closed.
What part of the GEMS cycle
you have failed to comply?
ROLES AND RESPONSIBILITIES
OF A MANAGER
a. Staffing
b. Communication
c. Training
d. Administrative Investigation and
Discipline
e. Employee Relations
f. Business Growth and Sustainability

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