ORG-AND-MGT_REVIEW-GUIDE_Q2 PDF

8. Discuss the Different Phases of Economic Development (ABM_AOM11-Ic-d-8) Traditional Economy: An economy based on customs, traditions, and barter trade, with limited use of currency and technology. Agricultural Phase: The early phase of economic development dominated by farmi...

8. Discuss the Different Phases of Economic Development (ABM_AOM11-Ic-d-8) Traditional Economy: An economy based on customs, traditions, and barter trade, with limited use of currency and technology. Agricultural Phase: The early phase of economic development dominated by farming and agriculture as primary economic activities. Industrial Phase: Characterized by manufacturing and industry as the main economic drivers, leading to urbanization and technological advancements. Service Economy: An economy focused on providing services rather than goods, including finance, healthcare, education, and retail. Information Economy: A modern economy driven by information technology, innovation, and knowledge-based industries. Digital Economy: The current phase, heavily reliant on digital technologies, e-commerce, and the internet, which facilitates global trade and connectivity. 9. Differentiate the Various Forms of Business Organizations (ABM_AOM11-Ic-d-9) Sole Proprietorship: A business owned and operated by one person. It is easy to set up, but the owner has unlimited liability. Partnership: A business owned by two or more people who share profits and liabilities. Partnerships can be general (equal responsibility) or limited (one or more partners have limited liability). Corporation: A legal entity separate from its owners, providing limited liability to shareholders. Corporations can raise capital by issuing shares but are subject to more regulations and taxes. Limited Liability Company (LLC): A hybrid structure that provides limited liability to owners (like a corporation) while allowing profits to be taxed on a personal level (like a partnership). Cooperative: A business owned and operated by a group of individuals for their mutual benefit, commonly seen in sectors like agriculture and retail. Non-Profit Organization: An organization that operates for a charitable, educational, or social purpose rather than for profit. Non-profits are tax-exempt but must reinvest earnings back into their mission. LESSON 3: BUSINESS PLANNING 10. Discuss the Nature of Planning (ABM_AOM11-Ie-g10) Planning: A fundamental management function involving defining goals, setting objectives, and outlining strategies and actions to achieve organizational objectives. Strategic Goals: Long-term, high-level goals that provide direction for the entire organization, aligned with its mission and vision. Objectives: Specific, measurable, and time-bound outcomes that support the achievement of broader goals. Vision and Mission Statements: Statements defining an organization's core purpose (mission) and aspirational future direction (vision), which serve as a foundation for all planning activities. Forecasting: Predicting future conditions and trends to make informed decisions in the planning process. 11. Compare and Contrast the Different Types of Plans (ABM_AOM11-Ie-g11) Strategic Plan: A long-term plan that focuses on the organization's overall direction and key objectives, typically spanning 3-5 years or more. Tactical Plan: A short- to medium-term plan that translates strategic goals into specific departmental or divisional actions, usually within a 1-2 year timeframe. Operational Plan: A detailed, day-to-day plan that outlines specific tasks and activities needed to implement tactical plans, often focusing on a month, quarter, or year. Contingency Plan: A backup plan designed to address potential risks or unexpected changes, ensuring the organization can adapt if unforeseen issues arise. Single-use Plan: A plan created for a one-time project or unique event, such as launching a new product. Standing Plan: An ongoing plan that guides recurring organizational activities, such as policies, procedures, and rules. 12. Describe Planning at Different Levels in the Firm (ABM_AOM11-Ie-g12)  Corporate-Level Planning: Involves top management setting overall strategic direction, mission, and long-term objectives for the entire organization. Business-Level Planning: Involves strategic planning specific to a business unit or division within the organization, focusing on competitive positioning and goals at the division level. Functional-Level Planning: Involves developing short-term and specific action plans at the departmental level (e.g., marketing, finance, human resources) to support business-level goals. Departmental Planning: Focuses on detailed, operational goals and actions within specific departments or teams, ensuring day-to-day tasks align with higher-level plans. 13. Apply Appropriate Planning Techniques and Tools (ABM_AOM11-Ie-g13) SWOT Analysis: A tool used to assess a firm's Strengths, Weaknesses, Opportunities, and Threats in order to make strategic decisions. PEST Analysis: A tool to analyze Political, Economic, Social, and Technological factors in the external environment that may impact the business. SMART Goals: A goal-setting technique ensuring goals are Specific, Measurable, Achievable, Relevant, and Time-bound. Balanced Scorecard: A strategic planning and management tool that measures organizational performance from multiple perspectives, including financial, customer, internal processes, and learning and growth. Gantt Chart: A project management tool used to plan and schedule tasks over time, showing task durations and dependencies. Critical Path Method (CPM): A project planning tool that identifies the sequence of tasks critical to completing a project on time. 14. Formulate a Decision from Several Alternatives (ABM_AOM11-Ie-g14) Decision-Making Process: A step-by-step approach to making choices, typically involving problem identification, generation of alternatives, evaluation, selection, and implementation. Alternatives: Different possible actions or options that a decision-maker considers in response to a particular problem or opportunity. Cost-Benefit Analysis: A decision-making tool used to evaluate the financial costs and benefits of each alternative to determine the most viable option. Risk Assessment: The process of identifying, evaluating, and estimating potential risks associated with each decision alternative. Decision Matrix: A tool that helps weigh and prioritize different decision options based on specific criteria and assigns scores to compare alternatives objectively. Feasibility Study: An assessment conducted to determine whether an option is viable based on factors such as resources, time, and risk. LESSON 4: ORGANIZING 15. Discuss the Nature of Organizations (ABM_AOM11-Ih-j15) Organization: A structured group of individuals working together to achieve specific goals or objectives through coordinated activities. Organizational Structure: The framework defining how tasks, responsibilities, authority, and communication flow are organized within an organization. Hierarchy: A system of ranking and organizing individuals within the organization from top management down to front-line employees. Coordination: The process of aligning and integrating activities across different departments and functions to achieve organizational goals. Organizational Culture: The set of values, beliefs, and behaviors that shape the social and psychological environment of an organization. 16. Distinguish the Various Types of Organization Structures (ABM_AOM11-Ih-j16) Functional Structure: An organizational structure where employees are grouped based on their specific functions or roles (e.g., finance, marketing, human resources).  Divisional Structure: An organization structure where divisions operate semi-autonomously, often based on product lines, geographic regions, or customer segments. Matrix Structure: A hybrid structure where employees report to both functional managers and project or product managers, allowing flexibility and collaboration across departments. Flat Structure: An organizational structure with few or no levels of middle management, promoting faster decision-making and a more collaborative environment. Network Structure: A flexible structure that relies on a network of interconnected units, often leveraging external partners and contractors to handle certain functions. Team-Based Structure: A structure where work is organized around teams rather than a traditional hierarchy, encouraging collaboration and adaptability. 17. Apply Organization Theories in Solving Business Cases (ABM_AOM11-Ih-j17) Classical Organization Theory: Focuses on efficiency, productivity, and hierarchy, with key principles from theorists like Frederick Taylor (Scientific Management) and Henri Fayol (Administrative Theory). Human Relations Theory: Emphasizes the importance of employee satisfaction, motivation, and relationships within the workplace; developed by Elton Mayo and others. Contingency Theory: Argues that the best organizational structure depends on various factors like environment, technology, and business goals, making flexibility essential. Systems Theory: Views the organization as an interrelated system where each part affects the whole, highlighting the importance of inputs, processes, outputs, and feedback. Bureaucratic Theory: Developed by Max Weber, it emphasizes a clear hierarchy, strict rules, and formal processes to ensure consistency and accountability. Organizational Behavior: The study of how individuals and groups interact within an organization, focusing on motivation, leadership, and team dynamics. 18. Identify the Different Elements of Delegation (ABM_AOM11-Ih-j18) Authority: The power assigned to an individual or role within the organization to make decisions and command resources. Responsibility: The obligation to carry out assigned tasks and duties to meet organizational objectives. Accountability: The requirement for employees to justify their actions and accept consequences for their performance in delegated tasks. Delegation: The process of assigning responsibility and authority from a manager to a subordinate to complete a specific task. Empowerment: Giving employees the authority, resources, and confidence to make decisions and take action within their roles. Span of Control: The number of employees directly managed by a supervisor, which affects delegation levels and organizational efficiency. 19. Differentiate Formal from Informal Organization (ABM_AOM11-Ih-j19) Formal Organization: The officially defined structure, roles, and relationships within an organization, established by management to achieve objectives. Informal Organization: The network of personal and social relationships that develop naturally among employees, often influencing communication and culture. Chain of Command: A formal organizational structure defining the hierarchy and flow of authority and communication. Social Networks: Informal connections among employees that can facilitate collaboration, information sharing, and mutual support. Rules and Procedures: Explicit guidelines and policies that govern behavior and operations in a formal organization. Group Norms: Unwritten, informal rules that influence behavior and interactions within the workplace, often reinforcing the culture and dynamics of the informal organization.  LESSON 5: STAFFING 20. Discuss the Nature of Staffing (ABM_AOM11-IIa-b20) Staffing: The process of recruiting, selecting, developing, and maintaining a workforce to meet the organization's needs. Human Resource Management (HRM): The strategic approach to managing people and workplace culture and environment to improve performance. Job Analysis: The process of gathering and analyzing information about job roles, including required skills, responsibilities, and conditions. Workforce Planning: Determining the organization’s future workforce needs and developing strategies to meet those needs. Talent Acquisition: The process of identifying and recruiting skilled workers to meet organizational needs. 21. Explain the Steps in the Recruitment and Selection Process (ABM_AOM11-IIa-b21) Job Posting: Advertising the open position internally and externally to attract applicants. Screening: Reviewing applications and résumés to shortlist candidates who meet the basic qualifications. Interviewing: Conducting structured or unstructured interviews to assess candidates' suitability. Testing: Using assessments (like aptitude or personality tests) to evaluate candidates' skills or fit. Reference Check: Verifying candidates’ qualifications, experience, and performance with former employers or references. Onboarding: Introducing and integrating new hires into the organization’s culture, policies, and work environment. 22. Recognize the Different Training Programs (ABM_AOM11-IIa-b22) Orientation Training: Training provided to new employees to familiarize them with the organization, its culture, and their roles. Skills Training: Targeted training to improve specific job-related skills, such as technical abilities or soft skills. Cross-Training: Training employees to perform tasks outside of their primary responsibilities to increase flexibility. Leadership Training: Programs designed to develop leadership skills among employees, preparing them for managerial roles. Compliance Training: Training on regulatory, legal, and policy-related topics to ensure adherence to organizational standards. On-the-Job Training (OJT): Practical, hands-on training conducted in the actual work environment under supervision. 23. Identify the Policy Guidelines on Compensation/Wages and Performance Evaluation/Appraisal (ABM_AOM11-IIa- b23) Compensation: The total amount of monetary and non-monetary benefits provided to employees in exchange for their work. Wages: Payment to employees based on hours worked or tasks completed, typically associated with hourly employees. Salary: A fixed, regular payment made to employees, often monthly or biweekly, irrespective of hours worked. Performance Appraisal: A formal assessment process where an employee’s work performance is evaluated against predefined criteria. Merit Pay: Additional compensation awarded to employees based on their performance, often as a raise or bonus. Job Evaluation: The process of analyzing and assessing job roles to determine their relative worth and appropriate compensation. 24. Discuss the Importance of Employee Relations (ABM_AOM11-IIa-b24) Employee Relations: Efforts to create and maintain positive relationships between employees and the organization, often handled by HR. Workplace Culture: The values, beliefs, and behaviors that shape the social and psychological environment of an organization. Conflict Resolution: Techniques and strategies used to resolve disputes and maintain a harmonious work environment. Employee Engagement: The emotional commitment employees have to their organization and its goals, impacting motivation and productivity.  Grievance Handling: The process of managing employee complaints or dissatisfaction regarding workplace issues. Labor Relations: The management of the relationship between the organization and employees, often concerning unions or collective bargaining. 25. Differentiate Various Employee Movements (ABM_AOM11-IIa-b25) Promotion: The advancement of an employee to a position with greater responsibility and higher compensation. Transfer: Moving an employee from one department, job, or location to another within the same organization. Demotion: Reassignment to a position with lower responsibility or pay, often due to performance issues or organizational restructuring. Job Rotation: Moving employees through different jobs to increase their skills and flexibility within the organization. Resignation: The voluntary decision by an employee to leave the organization. Retirement: When an employee permanently leaves the workforce due to age or years of service. 26. Adopt Effective Rewards System (ABM_AOM11-IIa-b26) Intrinsic Rewards: Non-monetary rewards, such as recognition, career growth opportunities, and job satisfaction. Extrinsic Rewards: Tangible rewards provided by the organization, like bonuses, salary increases, and benefits. Incentives: Additional benefits or payments offered to employees to encourage higher performance, such as commissions or sales bonuses. Recognition Programs: Formal systems that recognize employees' contributions through awards, certificates, or other acknowledgments. Profit-Sharing: A reward system where employees receive a share of the organization’s profits, fostering a sense of ownership. Employee Benefits: Non-wage compensation, such as health insurance, retirement plans, and paid leave, offered as part of the reward system. LESSON 6: LEADING Discuss the Nature of Directing (ABM_AOM11-IIc-e27) Directing: The management function that involves guiding, instructing, motivating, and leading employees to achieve organizational goals. Guidance: Providing clear instructions and support to help employees understand and complete their tasks effectively. Motivation: The process of stimulating employees to act in ways that contribute to the achievement of organizational objectives. Supervision: Overseeing employees' work to ensure it meets set standards and offering guidance as needed. Coordination: Harmonizing individual and departmental efforts to ensure efficient workflow and task completion. 28. Differentiate Leading from Managing (ABM_AOM11-IIc-e28) Leading: The ability to influence and inspire people to work toward organizational goals, focusing on vision and motivation. Managing: The administration and coordination of tasks, processes, and resources to maintain organizational efficiency. Vision: The forward-looking aspect of leadership that involves setting a direction for the organization’s future. Control: A key aspect of managing, involving monitoring and regulating processes to ensure goals are met. Influence: A leader’s ability to shape attitudes and behaviors through personal charisma, communication, and relationship-building. 29. Identify the Different Theories of Motivation (ABM_AOM11-IIc-e29) Maslow's Hierarchy of Needs: A motivational theory proposing that people are motivated by a hierarchy of needs, from physiological needs up to self-actualization. Herzberg's Two-Factor Theory: A theory suggesting that job satisfaction and dissatisfaction arise from two distinct sets of factors: motivators (e.g., recognition) and hygiene factors (e.g., pay). McClelland's Theory of Needs: A theory focusing on three primary motivators: achievement, affiliation, and power. Expectancy Theory: Proposes that employees are motivated when they believe their effort will lead to good performance and rewards.  Equity Theory: Suggests that employees are motivated by fairness in the workplace and compare their efforts and rewards to others. Goal-Setting Theory: Argues that specific, challenging goals, combined with appropriate feedback, enhance employee performance. 30. Differentiate Styles of Leadership (ABM_AOM11-IIc-e30) Autocratic Leadership: A style where leaders make decisions unilaterally, often without input from team members. Democratic Leadership: A collaborative style where leaders involve employees in decision-making processes. Laissez-Faire Leadership: A hands-off approach where employees have freedom to make decisions and manage their tasks. Transformational Leadership: A style focused on inspiring and motivating employees to exceed expectations by promoting change and innovation. Transactional Leadership: A leadership style based on rewards and penalties tied to performance outcomes. Situational Leadership: A flexible approach where leaders adjust their style based on the needs of the team and task. 31. Appreciate the Role of Communication in Directing People Within the Organization (ABM_AOM11-IIc-e31) Communication: The process of exchanging information and ideas between individuals or groups in an organization. Feedback: Information provided by employees or managers on performance or actions, critical for improvement and alignment. Channels of Communication: The methods used to communicate, such as face-to-face, emails, meetings, or memos. Downward Communication: Flow of information from managers to employees, often for instructions or guidance. Upward Communication: Flow of information from employees to managers, often for feedback or reporting issues. Barriers to Communication: Obstacles that hinder effective communication, such as misunderstandings, language differences, or noise. 32. Explain the Management of Change and Diversity in the Workplace (ABM_AOM11-IIc-e32) Change Management: The process, tools, and techniques used to manage change within an organization to ensure a smooth transition. Resistance to Change: Employee opposition to changes due to uncertainty, fear, or discomfort with new methods or practices. Organizational Diversity: Inclusion of employees from various backgrounds, including different cultures, genders, ages, and experiences. Inclusion: Creating a work environment where all employees feel valued, respected, and have equal opportunities. Adaptability: The ability of an organization and its employees to adjust to new conditions, technologies, and market demands. Cultural Competency: The ability to understand, respect, and work well with people from diverse backgrounds. 33. Recognize the Interrelationship of Filipino and Foreign Cultures (ABM_AOM11-IIc-e33) Cross-Cultural Interaction: Engagement between individuals from different cultural backgrounds, fostering understanding and collaboration. Cultural Sensitivity: Awareness of cultural differences and an understanding of how these differences impact interactions and behavior. Globalization: The process of increasing interconnectedness and interdependence among countries, affecting cultural exchange in organizations. Cultural Adaptation: Adjusting to cultural norms and practices when working in diverse or international environments. Ethnocentrism: The belief in the superiority of one's own culture, which can hinder cross-cultural understanding. Multiculturalism: The practice of valuing and promoting cultural diversity within an organization or society. LESSON 7: CONTROLLING 34. Discuss the Nature of Controlling (ABM_AOM11-IIf-h34) Controlling: A management function that involves monitoring and evaluating organizational activities to ensure that they align with established goals. Standards: Benchmarks or criteria set by management against which actual performance is measured. Performance Measurement: The process of evaluating the results of actions or processes to determine if goals are being met. Corrective Action: Steps taken to address any discrepancies or issues identified during performance evaluations to bring activities back on track. Accountability: The responsibility of employees to meet performance expectations and adhere to organizational standards. 35. Describe the Link Between Planning and Controlling (ABM_AOM11-IIf-h35) Goal Alignment: Ensuring that both planning and controlling efforts are focused on achieving organizational goals. Feedback Loop: The continuous cycle where the results of control measures are fed back into the planning process to improve future plans. Performance Standards: Established in the planning phase and used in controlling to assess progress toward goals. Plan Revision: Modifying plans based on feedback from control measures to adapt to changing circumstances or improve effectiveness. Preventive Control: Actions taken during the planning phase to anticipate and address potential issues before they arise in the execution stage. 36. Distinguish Control Methods and Systems (ABM_AOM11-IIf-h36) Feedforward Control: Measures taken to anticipate and prevent problems before they occur by focusing on inputs. Concurrent Control: Real-time monitoring of activities and processes to ensure they conform to standards as they happen. Feedback Control: Evaluating the output after a process has been completed to determine if corrective actions are necessary. Financial Controls: Methods, such as budgets and financial ratios, used to monitor and control financial performance. Quality Control: Ensuring products or services meet a set standard through processes like testing and inspection. Management Information System (MIS): A computerized system used to collect and analyze information that aids in decision-making and controlling. 37. Apply Management Control in Accounting and Marketing Concepts and Techniques (ABM_AOM11-IIf-h37) Cost Control: Techniques used in accounting to monitor and manage expenses, ensuring they do not exceed budgets. Variance Analysis: The comparison of actual financial performance to planned performance, identifying deviations for corrective actions. Break-even Analysis: A method of determining the sales level at which total revenues equal total costs, resulting in no profit or loss. Sales Forecasting: Estimating future sales volumes and revenue, helping marketers control inventory and manage promotional efforts. Return on Investment (ROI): A measure used to evaluate the profitability of an investment, guiding marketing expenditure decisions. Budget Control: Monitoring expenses against the budget to ensure financial resources are allocated efficiently and align with financial objectives. 38. Prepare a Budget Plan (ABM_AOM11-IIf-h38) Budgeting: The process of creating a financial plan that outlines expected revenues, expenses, and resource allocation. Fixed Budget: A budget that does not change, regardless of the actual levels of activity or sales achieved. Flexible Budget: A budget that adjusts based on actual activity levels, allowing for more accurate control of costs.  Operating Budget: A projection of income and expenses related to the day-to-day operations over a specific period. Capital Budget: A plan for major investments in assets like equipment, buildings, or new projects. Cash Flow Projection: An estimate of the cash inflows and outflows over a period, ensuring there is enough cash to meet obligations. LESSON 8: DIFFERENT FUNCTIONAL AREAS OF MANAGEMENT 39a. Human Resource Management (HRM) Recruitment and Selection: The process of attracting, evaluating, and hiring the right candidates for job positions. Training and Development: Programs designed to enhance employees' skills, knowledge, and career growth. Performance Appraisal: Evaluation of employee performance against established standards to guide rewards and improvements. Compensation and Benefits: The total package of salary, wages, bonuses, and other perks given to employees. Employee Relations: The management of relationships between employers and employees, promoting a positive work environment. Labor Law Compliance: Ensuring adherence to employment laws and regulations affecting wages, safety, and employee rights. 39b. Marketing Management Market Research: The process of gathering, analyzing, and interpreting information about a market, including customers and competitors. Product Development: Creating new products or improving existing ones to meet consumer needs and stay competitive. Branding: Establishing a unique image and identity for a product or company in the market. Pricing Strategy: Setting a price for products or services based on factors like cost, demand, and competitor pricing. Promotion: Activities that communicate a product's value to potential customers, including advertising, sales promotions, and public relations. Distribution Channels: The pathways through which products are delivered from manufacturers to consumers. 39c. Operations Management Process Optimization: Improving processes to increase efficiency, reduce costs, and enhance quality. Quality Control: Ensuring products or services meet a set standard, often through inspections and testing. Supply Chain Management: Coordinating the production, shipment, and delivery of products. Inventory Management: Managing stock levels to meet demand without overstocking or understocking. Capacity Planning: Determining the amount of resources needed to meet production goals. Lean Management: A methodology focused on reducing waste and maximizing value. 39d. Financial Management Capital Budgeting: The process of planning and managing a company's long-term investments. Cash Flow Management: Ensuring there is enough cash to meet the firm's obligations as they come due. Financial Analysis: Assessing the company's financial health through tools like ratio analysis, income statements, and balance sheets. Risk Management: Identifying, assessing, and controlling financial risks to protect the firm’s assets and earnings. Working Capital Management: Managing short-term assets and liabilities to maintain liquidity. Return on Investment (ROI): A metric used to assess the profitability of an investment. 39e. Material and Procurement Management Procurement: The process of sourcing and acquiring the goods and services a company needs to operate. Supplier Relationship Management: Building and maintaining relationships with suppliers to ensure reliability and quality. Inventory Control: Monitoring and managing inventory levels to meet production needs and minimize costs. Just-In-Time (JIT): A strategy that reduces waste by receiving goods only as they are needed in the production process. Cost Reduction: Strategies aimed at minimizing expenses in acquiring materials and supplies.  Quality Assurance: Ensuring that procured materials meet quality standards. 39f. Office Management Administrative Support: Providing clerical and administrative support to ensure efficient office operations. Records Management: Organizing and maintaining company records for easy access and compliance. Office Layout: Arranging workspaces to improve productivity and flow. Facilities Management: Overseeing the physical workplace, including maintenance, safety, and space planning. Resource Allocation: Efficiently assigning resources, such as equipment and supplies, to meet office needs. Time Management: Organizing and planning how to divide time between activities to improve efficiency. 39g. Information & Communication Technology (ICT) Management IT Infrastructure: The physical and virtual resources that support the storage, processing, and transmission of data. Cybersecurity: Protecting IT systems from threats like hacking, data breaches, and viruses. Data Management: Organizing, storing, and retrieving data to support decision-making. System Integration: Ensuring that different technology systems work together smoothly. Cloud Computing: Using remote servers to store, manage, and process data, providing flexibility and scalability. Digital Transformation: Adopting digital tools and technologies to improve efficiency, productivity, and innovation.