PCM Chapter 1 reviewer.docx

1-2 ORGANIZATION **1-3 STRUCTURAL ORGANIZATION** STRUCTURAL ELEMENTS OF AN ORGANIZATION 1. **MEN** -- THESE ARE THE DIFFERENT MEMBERS OF THE ORGANIZATION STARTING FROM THE TOP TO THE LAST WORKMAN IN THE ENTERPRISE. 2. **MATERIALS** -- REPRESENTS THE MATERIALS NECESSARY IN THE DISTRIBUT...

1-2 ORGANIZATION **1-3 STRUCTURAL ORGANIZATION** STRUCTURAL ELEMENTS OF AN ORGANIZATION 1. **MEN** -- THESE ARE THE DIFFERENT MEMBERS OF THE ORGANIZATION STARTING FROM THE TOP TO THE LAST WORKMAN IN THE ENTERPRISE. 2. **MATERIALS** -- REPRESENTS THE MATERIALS NECESSARY IN THE DISTRIBUTION OF FUNCTIONS OR IN THE ATTAINMENT OF ITS OBJECTIVES 3. **MACHINE** -- THE TOOLS NECESSARY IN PRODUCING ITS DESIRED OUTPUT. 4. **METHODS** -- THE PROCEDURES AND WAYS USED IN THE COURSE OF ITS ACTIONS. 5. **MONEY** -- THE FINANCIAL RESOURCES OF THE ORGANIZATION. MAJOR ELEMENTS OF ORGANIZATIONAL STRUCTURE 1. **DISTRIBUTION OF FUNCTIONS** -- THE FUNCTIONS TO BE PERFORMED, THE GROUPINGS OF FUNCTIONS 2. **VERTICAL AND HORIZONTAL AUTHORITY RELATIONSHIPS** -- WHO ARE THE AUTHORITY TO DO WHAT 3. **COMMUNICATION AND DECISION PROCESSES** -- THE MANNER IN WHICH FORMAL DECISIONS ARE MADE AND BY WHOM 4. **POLICIES** -- THE DECISIONS, RULES OR GUIDELINES ESTABLISHED ACCORDING TO **PETER DRUCKER**, TRADITIONAL STRUCTURES ARE NO LONGER ADEQUATE FOR TODAY\'S COMPLEX ORGANIZATIONS. A MANAGEMENT STRUCTURE IS A MEANS OF ATTAINING THE OBJECTIVES AND GOALS OF AN INSTITUTION. THUS, SHOULD BE RESPONSIVE TO RESPECT NEEDS AND CHANGES ON THOSE NEEDS. 1-4 PRINCIPLES OF GOOD ORGANIZATION 1. PRINCIPLE OF OBJECTIVE 2. ANALYSIS 3. SIMPLICITY 4. FUNCTIONALISM 5. DEPARTMENTALIZATION 6. CENTRALIZATION OF AUTHORITY AND RESPONSIBILITIES 7. LIMITED SPAN OF CONTROL **PRINCIPLE OF OBJECTIVE** -- A CLEAR AND COMPLETE DEFINITION OF THE OBJECTIVE MUST BE KNOWN. ANY BUSINESS CONCERN OR ANY INDIVIDUAL MUST ADHERE TO A DEFINITE PURPOSE OR AIM. **ANALYSIS** -- A SOUND BUSINESS JUDGMENT ATTEMPTS TO BUILD AN ORGANIZATION THROUGH FULL KNOWLEDGE OF THE REQUIREMENT OF THE BUSINESS. **SIMPLICITY** -- THE SIMPLEST ORGANIZATION THAT WILL SERVE TO ATTAIN THE DESIRED OBJECTIVE IS CONSIDERED THE BEST. **FUNCTIONALISM** --- THE ORGANIZATION SHOULD BE BUILT AROUND THE MAIN FUNCTIONS OF THE BUSINESS AND NOT AROUND THE INDIVIDUALS. A FUNCTION IS A NORMAL OR CHARACTERISTIC WAY OF DOING A TASK THAT STAND OUT DISTINCTIVELY BY ITSELF. **DEPARTMENTALIZATION** -- IN BIG ORGANIZATIONS, THE SCOPE OF OPERATION CAN BE VERY BROAD, NECESSITATING DEPARTMENTALIZATION TO ACHIEVE A SMOOTHER FLOW OF OPERATIONS. DEPARTMENTALIZATION CAN BE THROUGH FUNCTIONS, PRODUCTS, LOCATION OR BY PROJECTS OF THE ORGANIZATION. **CENTRALIZATION OF AUTHORITY AND RESPONSIBILITIES** -- WHEN THERE IS UNITY OF COMMAND, EVERY PERSON KNOWS WHAT HE CAN PERFORM WITHIN HIS SCOPE OF AUTHORITY, KNOWS THE THINGS FOR WHICH HE IS RESPONSIBLE OF AND ALSO WHOM TO REPORT AND CONSULT IN CASE OF PROBLEMS OR DOUBTS. **LIMITED SPAN OF CONTROL** -- THE NUMBER OF SUBORDINATES AN EXECUTIVE CAN MANAGE EFFECTIVELY. 1-5 ORGANIZATION AND BUSINESS **BUSINESS** -- DEFINED AS AN ORGANIZATION OF PEOPLE WITH VARIED SKILLS, WHICH USES CAPITAL AND TALENTS TO PRODUCE GOODS OR SERVICES 1-6 WHAT IS MANAGEMENT **MANAGEMENT IS A PROCESS.** DIRECTING AND FACILITATING THE WORK **MANAGEMENT IS A FUNCTION.** GETTING THINGS DONE **1-7** MANAGEMENT CONCEPT 1-8 MANAGEMENT STRUCTURES --FACILITATE THE COORDINATION AND CONTROL OVER ACTIVITES OF THE COMPANY 1-9 MANAGEMENT CONTROL **CONTROL** -- VERB IS DEFINED BY WEBSTER\'S NEW COLLEGE DICTIONARY AS \"*TO CHECK OR REGULATE; TO KEEP WITHIN LIMITS*\". YET, MANAGERIAL CONTROL CARRIES WITH IT A MUCH BROADER INTERPRETATION TO APPLY: NOT ONLY TO CHECK NOR COMMAND, BUT ALSO THE *WHIP*. NOT ONLY TO REGULATE BUT ALSO TO *STIMULATE*. CONTROL ALSO INCLUDES ACTIVITIES THAT REQUIRE RESTRICTIVE OR CORRECTIVE ACTION. **EFFECTIVE COMMUNICATION SYSTEM** IS AN IMPORTANT ELEMENT OF EXECUTIVE CONTROL. UNDER THIS SYSTEM, ADEQUATE AND RELIABLE DATA ARE COLLECTED AND DISSEMINATED TO THE PROPER PERSONS AND UNITS AT THE RIGHT TIME. To the manager, information has four purposes to serve. 1\. It must answer the questions what are we going to do? 2\. How well are we doing? 3\. How can we do better? 4\. Does it serve as an aid to coordination? 1-10 THE MANAGER --IS THE MOST DIFFICULT AND WITH THE HIGHEST DEGREE OF RESPONSIBILITY QUALITY OF AN EFFECTIVE MANAGER 1. HE STUDIES, ANALYZES AND DISSECTS HIS/HER JOB. 2. HE KNOWS HOW TO DELEGATE THE ADMINISTRATIVE DETAILS OF HIS/HER JOB. 3. HE IS WILLING TO DELEGATE TO AND SHARE WITH HIS SUBORDINATES THE CREDIT OF A JOB WELL DONE. 4. HE TRAINS AND DEVELOPS HIS MEN TO PREPARE THEM TO ASSUME DELEGATED WORK. 5. HE KNOWS HOW TO CONTROL AND PLAN HIS TIME. 6. HE INTITUTES CONTROLS FOR EFFECTIVE PERFORMANCE. 1-11 EXECUTIVE FUNCTIONS MANAGER FUNCTIONS: 1. TO PLAN 2. TO ORGANIZE 3. TO DIRECT 4. TO CONTROL 1. OBJECTIVE OF THE ENTERPRISE 2. POLICIES 3. PROCEDURES 4. BUDGET 5. PROGRAMS **ORGANIZING** -- IS NECESSARY THOUGH NOT A SUFFICIENT CONDITION FOR GOOD PERFORMANCE **DIRECTING** -- IS GUIDING AND OVERSEEING SUBORDINATES 1. **LEADERSHIP** -- PROCESS WHICH AN EXECUTIVE IMAGINATIVELY DIRECTS, GUIDES OR INFLUENCES THE WORK OF OTHERS 2. **COORDINATION** -- PROCESS WHEREBY AN EXECUTIVE DEVELOPS AN ORDERLY PATTERN OF GROUP How Can Executives Coordinate Efforts in their Organization 1. Clarifying authority and responsibility 2. Careful checking and observation 3. Facilitating effective communication 4. Utilizing leadership skills **CONTROL** -- PROCESS BY WHICH AN EXECUTIVE GETS THE PERFORMANCE OF HIS SUBORDIANTES TO CORRESPOND AS CLOSELY AS POSSIBLE COMMON PRACTICES ARE 4 TI 8 FOR THE TOP LEVELS AND 8-15 FOR THE BOTTOM LEVELS. **POLICIES** -- ARE GENERAL STATEMENTS **PROCEDURES** -- REFLECTION OF THEPOLICY 1-12 EXECUTIVE LEADERSHIP --IS THE BRIDGE BETWEEN OBJECTIVE AND RESULT **LEADERSHIP** -- THE ABILITY TO MOTIVATE SUBORDINATES AND OTHER PEOPLE TOWARD THE ACHIEVEMENT OF ORGANIZATIONAL OBJECTIVES 1-13 DELEGATION OF AUTHORITY --THE KEY TO EFFECTIVE MANAGEMENT 1-14 RESPONSIBILITY AND AUTHORITY 1-15 PERSONNEL COORDINATION TWO FACTORS 1. THE NEED FOR CLOSE SUPERVISIONS AS JUDGED BY THE SKILL OF THE WORKERS AND THE DIFFICULTY OF THE OPERATIONS. 2. THE AVAILABILITY OF EXPERIENCED AND TRUST WORTHY PERSONNEL CAPABLE OF ACTING IN SUPERVISORY CAPACITY 1-16 SCIENTIFIC MANAGEMENT 1. DIVISION OF LABOR AND SPECIALIZATION 2. UNITY OF COMMAND AND CENTRALIZATION OF DECISION MAKING 3. ONE WAY AUTHORITY 4. NARROW SPAN OF CONTROL 1-17 HUMANISTIC MANAGEMENT 3 INDISPENSABLE FACTORS IN THE SUCCESS OF ENTERPRISE MANAGEMENT: 1. A GOAL 2. AN IDEAL 3. A VISION 1-18 DIRECTING PEOPLE ON THE JOB **ORDER** -- IS A SPECIFIC MESSAGE CONVEYED BY A LEADER TO A FOLLOWER FOR THE PURPOSE OF INFLUENCING THE FOLLOWER TO TAKE DESIRED ACTION TWO TYPES OF ORDER 1. VERBAL 2. WRITTEN WHEN TO USE VERBAL ORDERS - WHEN THE ORDER IS SIMPLE AND THE MESSAGE CAN BE CLEARLY HEARD. - WHEN PRIVACY IS IMPORTANT. - WHEN THE FOLLOWER IS INTELLIGENT AND RELIABLE. - WHEN A DEMONSTRATION IS INVOLVED. WHEN TO HAVE WRITTEN ORDERS - WHEN PRECISE FIGURES OR COMPLICATED DETAILS ARE INVOLVED. - WHEN ORDERS MUST BE PASSED ON TO SOMEONE ELSE. - WHEN THE WORKERS INVOLVED ARE SLOW TO UNDERSTAND AND FORGETFUL. - WHEN YOU WANT TO HOLD THE RECEIVER STRICTLY ACCOUNTABLE - WHEN PARTICULAR SEQUENCE MUST BE FOLLOWED EXACTLY. - WHEN A NOTICE BOARD CAN BE SUITABLY USED. - WHEN YOU ARE QUOTING GENERAL INSTRUCTIONS ON HIGHER AUTHORITY. - WHEN A RECORD IS DESIRABLE, PERHAPS THE ORDER MAY NEED TO BE REFERRED TO IN THE FUTURE. 4 DISTINCT CATEGORIES OF ORDERS 1. A REQUEST 2. A SUGGESTION 3. ASKING FOR VOLUNTEERS 4. A DIRECT ORDER **REQUEST** -- WHEN THE LEADER ASKS THE FOLLOWER TO ACT AS THE LEADER WISHES - ANYONE WHO IS INTERESTED IN HIS WORK - SOMEONE WHO WELCOMES RESPONSIBILITY - SOMEONE WHO IS INTERESTED IN ADVANCEMENT - A GROUP OF EXPERIENCED PERSONNEL WITH GOOD MORALE - SOMEONE WHOSE INITIATIVE YOU WANT TO DEVELOP **ASKING FOR VOLUNTEERS - TASK** IS **EXPLAINED** AND ASK FOR **VOLUNTEERS** TO DO IT - JOBS THAT ARE DANGEROUS OR DISAGREEABLE - FOR EXTRA HEAVY WORK - FOR JOBS THAT REQUIRE OVERTIME - WHEN YOU WANT A SKILLED WORKER TO DO A SPECIAL UNSKILLED JOB **DIRECT ORDER OR COMMAND** - ONLY USE THIS UNDER THE FOLLOWING CIRCUMSTANCES: 1. INCASE OF DANGER OR EXTREME URGENCY. 2. WHEN HASTE IS IMPORTANT. 3. LAZY AND INDIFFERENT WORKERS, OR CHRONIC OBJECTORS. 4. FOR CARELESS WORKERS. 5. WHEN ALL OTHER METHODS HAVE FAILED REPEATEDLY. TO PHRASE ORDERS EFFECTIVELY: 1. CLEAR 2. COMPLETE 3. CONCISE 4. ACCEPTABLE To make an order *clear*, phrase it in simple terms and repeat anything that might be forgotten or misunderstood. To make an order *complete*, answer all the questions who, what, how, when, where and why. To make an order *concise*, is to make it short enough for the reover to be able to repeat it to prove that he received it fully. To make an order *acceptable* is to ensure more that the receiver will readily act on the order as he sees it justified, practical tactful, challenging and accompanied by sufficient authority a. You make *your order justified* when you explain why the action must be taken. You convince the receiver that it is practical when you explain how it is to be done. This is automatically done if you make the order complete. b. To make *your order tactful*, you deliver it in a way that will not adversely affect your relationship with the receiver. Think of his emotional reactions rather than your own. c. To make the *order challenging*, present it to him in a way that makes him see it is a worthwhile challenge to his knowledge, skill and experience. This will help him enjoy carrying out your order. d. Give *sufficient authority*. This is very important. Whenever you give an order, make sure it is accompanied by sufficient authority by giving the receiver enough authority to enable him to carry out the order without being frustrated by the refusal of others to cooperate. To make sure you that you constantly give orders which are clear, complete, concise and acceptable, always remember that every order has three meanings 1\. The meaning **you think** you convey. 2\. The meaning **you do convey**, directly and by implication. 3\. The meaning the **receiver thinks** you convey 1-19 HOW TO GIVE ORDERS EFFECTIVELY --THE WAY TO GIVE ORDERS EFFECTIVELY, AND EARN YOURSELF A REPUTATION AS COMPELLING LEADER, YOU MUST; 1. CLARIFY YOUR OBJECTIVE. 2. OBTAIN FAVORABLE ATTENTION 3. MAKE IT SIMPLE AND SPECIFIC 4. PHRASE IT TACTFULLY FOR BEST RESULTS 5. EXPLAIN WHY IT SHOULD BE DONE YOUR WAY 6. LEARN HOW MUCH INFORMATION AND GUIDANCE HE NEEDS 7. LET HIM HAVE IT 8. INSPIRE HIS CONFIDENCE IN YOU AND THE CORRECTNESS OF YOUR ORDER 9. NOTE HIS READINESS TO ACT 10. GIVE HIM FAITH IN HIS ABILITY TO CARRY IT OUT OBTAIN FAVORABLE ATTENTION - YOUR MAIN OBJECTIVE IS TO GET HIM TO DO WHAT YOU WANT TO DO AND LIKE IT. **MAKE IT SIMPLE AND SPECIFIC** - THE ORDER WILL ONLY BE CLEAR AND CONCISE WHEN IT IS SIMPLE AND SPECIFIC. **PHRASE IT TACTFULLY FOR BEST RESULTS** - CHOOSE THE MOST SUITABLE KIND OF ORDERS AND PHRASE IT IN WAY THAT WILL PRODUCE THE DESIRED EFFECT. **EXPLAIN WHY IT SHOULD BE DONE YOUR WAY** - EVEN THEY DON'T FULLY AGREE WITH THE REASONING INVOLVED, THEY APPRECIATE BEING TOLD ABOUT IT LET HIM HAVE IT - GIVE THE INFORMATION AND GUIDANCE HE NEEDS AS CLEARLY AND CONCISELY AS POSSIBLE. NOTE HIS READINESS TO ACT - WATCH HIS REACTION TO YOUR ORDER TO SEE WHETHER HE HAS UNDERSTOOD IT CORRECTLY AND IS READY TO ACT ON IT. GIVE HIM FAITH IN HIS ABILITY TO CARRY IT OUT - IF THERE IS ANY DIFFICULTY INVOLVED IN HIS CARRYING OUT YOUR ORDER, HE WILL PERFORM AT HIS BEST WHEN HE BELIEVES IN HIS ABILITY TO DO IT. **1-20 THE KNOWLEDGE WORKERS** - HIGH LEVEL WORKERS WHO **APPLY THEORETICAL AND ANALYTICAL KNOWLEDGE** IN PRODUCT AND SERVICES DEVELOPMENT - INCLUDES PROFESSIONALS SUCH PROGRAMMERS, PHYSICIANS, PHARMACIST, ARCHITECTS, ENGINEERS, LAWYERS, AND ANY OTHER **WHITE COLLAR JOBS** - THEY PRODUCE **GOOD IDEAS, INFORMATION, AND CONCEPTS** - BUT SOMETIMES, THEY PRODUCE DIRECT MATERIAL AS THE RESULT OF THEIR KNOWLEDGE, WHICH HAS A DIRECT IMPACTS TO THE COMPANY, ALSO KNOWN AS **INTELLECTUAL PROPERTY** - UNLIKE MANUAL WORKERS, THEY **INNOVATE THE TECHNOLOGIES, AND OPTIMIZE THE USE OF RESOURCES** TO GET THINGS DONE RIGHT. -