Prelims Org Man

Reviewer in OrgMan
Five Functional Areas of Business

1. Research and Development
- New product or innovation
2. Marketing
- Planning and executing the conception, pricing, promotion and distribution of ideas,
goods, and services to create exchanges that satisfy individual.
3. Finance
- Revenue, expenses, budget, financial records, and financial statements.
4. Production
4.1 Extraction and Cultivation – obtained from natural resources.
4.2 Processing –Changing and improving product.
4.3 Manufacturing – combines raw and processed materials.
5. Human Resources
- People who work for the business.
- Planning and Staffing, Performance Management, Compensation and Benefits, and
Employee Relations.
-
Manager- Leads or Manage
Traditional Pyramid Form of Management Level
TOP III. Upper Level of Management

MANAGERS
MIDDLE MANAGERS II. Middle Level of Management
FIRST-LINE MANAGERS I.Lowest level of Management
NON-MANEGERIAL EMPLOYEES
Management- involving coordination and overseeing.

Efficiency- getting the most output from the least amount of inputs.
- Concern with ways of getting done. “Doing things right”
Effectiveness- helps the organization reach its goal.
- Concern with end result of organizations. “Doing the right things”
Efficiency (Means) Effectiveness (Ends)
Resource Usage Goal Attainment
Low Waste High Attainment

Management Function:
1. Planning
- Define Goals
- Strategies for achieving
- Develop Plans
- Setting Goals and Plans
2. Organizing
- Task to be done
- Task are to be grouped
- Reports to whom
- Decisions to be made
- Arrange task and other resources to accomplish organization’s goals.
3. Leading
- Motivate subordinates
- Help resolve group conflicts
- Influence individual or teams as they work.
- Most effect communication
- Deal with employee behavior issue
- Hire, train, motivate (lead) people
4. Controlling
- Monitor activities performance
- Compare performance
- Evaluate activities
- Correct any disturbance
- Ensure all activities are accomplished as planned
Roles of Manager
Skills of a Manager
1. Conceptual Skills- cognitive ability to see the organization as a whole and the
relationship between its parts. Thinking, information processing, as well as
planning and decision-making all constitute this important skill.
2. Human Skills- Manager’s ability to work with and through other people and to
work effectively as a group member.
- Other writers ang scholars refer to this as People Skill in the sense that this
is very crucial in dealing with all members of the organization, at whatever
level.
3. Technical Skills- involves the specialized procedures, techniques, and
knowledge to get the job done.
Preclassical Contributors
Contributor Pioneering Ideas

Robert Owen Advocated concern for the working and living conditions of workers.
Charles Babbage Build the first practical mechanical calculator and a prototype of
modern computers; predicted the specialization of mental work;
suggested profit sharing
Henry R. Towne Outlined the importance of management as a science and called for
the development of management principles.
The Classical Management Perspective
A. Scientific Management- Emphasizes the scientific study of work methods in

order to improve worker efficiency.
B. Bureaucratic Management- Emphasized the need for organizations to
operate in a rational manner rather than relying on the arbitrary whims of
owners and managers.
C. Administrative Management- An approach that focuses on principles that
can be used by managers to coordinate the internal activities of
organizations.
Henri Fayol 14 General Principles of Management

1. Division of Work – When employees are specialized, output can increase because
they become increasingly skilled and efficient.
2. Authority – Managers must have the authority to give orders, but they must also
keep in mind that with authority comes responsibility.
3. Discipline – Discipline must be upheld in organizations, but methods for doing so
can vary.
4. Unity of Command – Employees should have only one direct supervisor.
5. Unity of Direction – Teams with the same objective should be working under the
direction of one manager, using one plan. This will ensure that action is properly
coordinated.
6. Subordination of Individual Interests to the General Interest – The interests of
one employee should not be allowed to become more important than those of the
group. This includes managers.
7. Remuneration – Employee satisfaction depends on fair remuneration for everyone.
This includes financial and non-financial compensation.
8. Centralization – This principle refers to how close employees are to the decision-
making process. It is important to aim for an appropriate balance.
9. Scalar Chain – Employees should be aware of where they stand in the
organization's hierarchy, or chain of command.
10. Order – The workplace facilities must be clean, tidy and safe for employees.
Everything should have its place.
11. Equity – Managers should be fair to staff at all times, both maintaining discipline as
necessary and acting with kindness where appropriate.
12. Stability of Tenure of Personnel – Managers should strive to minimize employee
turnover. Personnel planning should be a priority.
13. Initiative – Employees should be given the necessary level of freedom to create and
carry out plans.
14. Esprit de Corps – Organizations should strive to promote team spirit and unity.
The General Environment
1. International- includes events originating in foreign countries as well as

opportunities for local (or Philippine) companies in other countries. Provides
new competitors, customers, and suppliers and shapes social, technological,
and economic trend as well.
2. Technological- includes scientific and technological advancements in a
specific industry. Advance in technology drive competition and help innovative
companies gain market share.
3. Sociocultural- demographic characteristics as well as the norms, customs,
and values of the general population. Include geographical distribution and
population density, age, and educational level.
4. Economic- represents economic status or level of development of the
country or region in which the organization operates. Includes consumer
purchasing power, unemployment rate, inflation rate, and interest rates. The
economic dimention has become increasingly complex and creates both
opportunities and threats for managers.
5. Legal Political- Includes laws and regulations adopted by a country’s
government. Political and legal forces, according to Jones and George are
outcomes of change in laws and regulations.
6. Natural- includes all elements that occur naturally on earth, including plants,
animals, rocks, and natural resources such as air, water, and climate.
Task Environment
1. Competitors- One of the most important forces an organization confronts in its

task environment in competitors (Jones & George). Competitors are
organizations that produce goods and services that are similar and comparable
to a particular organization’s goods and services.
2. Suppliers- Provides raw materials the organization uses to produce its output.
3. Customers- Purchase the goods or services an organization offers (Bateman &
Snell, 2011). Without them, a company won’t survive.
4. Labor Market- Represente people in the environment who can be hired to work
for the organization.
People
 Max Weber- Bureucrazy, economist
 Henri Fayol- 14 principles of management
 Abraham Maslow- Hierarchy of needs
 F.W. Taylor- father of the scientific management
 Frank Gilbreth- Motion Study
 Peter Drucker- to create customer (purpose of business).
 Adam Smith- Job specialization
Internal External
- Customer Service - Weather Condition
- Strength, Weaknesses - Opportunities, Threats
- Inflation Rate

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Reviewer in OrgMan

Five Functional Areas of Business

Traditional Pyramid Form of Management Level

TOP III. Upper Level of Management

MIDDLE MANAGERS II. Middle Level of Management

FIRST-LINE MANAGERS I.Lowest level of Management

Management- involving coordination and overseeing.

Efficiency (Means) Effectiveness (Ends)

Resource Usage Goal Attainment

Low Waste High Attainment

Contributor Pioneering Ideas

The Classical Management Perspective

A. Scientific Management- Emphasizes the scientific study of work methods in

Henri Fayol 14 General Principles of Management

The General Environment

1. International- includes events originating in foreign countries as well as

1. Competitors- One of the most important forces an organization confronts in its

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