Organization & Management PDF

ORGANIZATION & MANAGEMENT  OBJECTIVES At the end of the lesson, the learner is expected to: 1. Differentiate the phases of economic development and its impact on the business environment; 2. Understand the phases of economic development and its impact on the bus...

ORGANIZATION & MANAGEMENT  OBJECTIVES At the end of the lesson, the learner is expected to: 1. Differentiate the phases of economic development and its impact on the business environment; 2. Understand the phases of economic development and its impact on the business environment; and 3. Appreciate economic development that leads to a different impact on the business environment.  LESSON 1: PHASES OF ECONOMIC DEVELOPMENT AND ITS IMPACT TO BUSINESS ENVIRONMENT  Although material wealth accumulation is among the concerns of genuine economic development, its greater concern is the total improvement of the quality of people’s lives. This, in turn, is related to sustainable economic development issues in a country which greatly influences business management. Sustainable economic development ensures that the present needs of a particular generation are fully met without endangering the ability of future generations to also fully meet their own needs. Business managers must be conscious of their decisions to avoid the abuse of ecological elements – air, water, and soil – as this will threaten sustainable economic development.  Different countries have different management strategies to encourage ecological respect and prevent damage to the environment. Common environmental and ecological problems that have to be dealt with by business managers include the destruction of natural habitats, depletion of clean water resources, urban, industrial, and agricultural pollution, and many more.  In September 2000, world leaders gathered for the Millennium Summit and this adopted the United Nations (UN) Millennium Declaration. By doing so, they had committed their nations to a global partnership toward the reduction of extreme poverty and the pursuit of the Millennium Development Goals (MDG).  The MDGs, according to the UN, is “the world’s time-bound and quantified targets for addressing extreme poverty in its many dimensions – income poverty, hunger, disease, lack of adequate shelter and exclusion – while promoting gender equality, education and environmental stability.” The deadline for the fulfillment of the MDGs was set for 2015. The following are the MDG’s: 1. Eradicate extreme hunger and poverty. 2. Achieve universal primary education. 3. Promote gender equality and empower women. 4. Reduce child mortality. 5. Improve maternal health. 6. Combat HIV/AIDS, Malaria and other diseases. 7. Ensure environmental sustainability. 8. Develop a global partnership for development.  Meanwhile, the National Economic and Development Authority (NEDA) has laid out the Philippine Development Plan (PDP) 2011-2016, which “adopts a framework of inclusive growth, which is high growth that is sustained, generates mass employment and reduces poverty.” The PDP is focused on the following areas: 1. Pursuit of Inclusive Growth. 2. Macroeconomic Policy. 3. Competitive Industry and Services Sectors. 4. Competitive and Sustainable Agriculture and Fisheries Sector. 5. Accelerating Infrastructure Development. 6. Resilient and Inclusive Financial Sector. 7. Good Governance and the Rule of Law. 8. Social Development. 9. Peace and Security. 10. Conservation, Protection and Rehabilitation of the Environment and Natural Resources.  It is evident from the PDP focused areas that they cover not only the economic and industrial goals of the Philippines but also the social, environmental, and peace and security aspects. The MDGs and the PDP can help guide the management of businesses in the Philippines setting. In particular, the PDP must be taken into consideration in order to deem management as appropriate or country- specific.  Another potential means for economic growth and development is the planned integration of the 10 Southeast Asian nations in 2015 which include the Philippines. The association of Southeast Asian Nations (ASEAN) Economic Community (AEC) could help the Philippines achieve its goal of inclusive growth that creates jobs and reduces poverty.  According to a joint study by the International Labor Organization (ILO) and the Asian Development Bank (ADB) titled “ASEAN Community 2015: Managing Integration for Better Jobs and Shared Prosperity.” Released in October 2014, the success of the AEC lies indecisive actions taken by member states regarding policy recommendations, strengthening regional cooperation that may bring about structural changes, improvement of business and job opportunities and job quality, enhancement of skills boosting productivity, better wages and management of labor development are shared among member countries and sectors.  Since the AEC is envisioned to become a single common market and production base for an estimated 600 million people of different nationalities, it means a freer flow of goods, services, investments, and labor. The study concluded that “new opportunities for growth and prosperity may emerge, but the challenge is to ensure that growth is inclusive and prosperity is shared.”  Obviously, managers of businesses here in the Philippines must be concerned about the findings of the study, as these are new challenges for them. The improvement of management style and the skills training and education of their human resources are needed in order to cope with the possible changes that will be brought about by the ASEAN integration in 2015. Economic Development – is a total process which includes not only economic growth or the increase in the given amount of goods and services produced by the country’s economy, but also consider the social-political, cultural, and spiritual aspects of the country’s growth. Economic Development Phases – are the distinct stages involved in the total process of economic development in a particular country. These include 1. economic growth, 2. improvement of the Human Development Index (HDI), 3. availability of benefits provided by science and technology, and 4. societal improvement of the opportunities and general welfare of its members. Economic Growth – increase in the given amount of goods and services produced by the country’s earning. Improvement of the Human Development index (HDI) is a summary measure of average achievement in key dimensions of human development; a long and healthy life, being knowledgeable and have a decent standard of living.  FORMS OF BUSINESS ORGANIZATION The form of a business organization may depend on its purpose, nature of operations, and resources. However, a business organization’s form may change with the changing times and the demands they present. Changing Forms of Business Organizations Change is constant and organizations change to undergo various changes to ensure effectiveness, efficiency, and relevance in the world of business. Business organizations may be traditional (simple, functional, divisional, profit, or non-profit) or open/flexible in form according to Robbins and Coulter (20019). Simple Business Organization Refer to business organizations with few departments, centralized authority with a wide span of control, and with dew formal rules and regulations. These are easy to manage because of their simple form. However, change of form follows as the company expands its operations. Functional Business Organizations these pertains to business organizations that group together those with similar or related specialized duties that group together those with similar or related specialized duties that introduce the concept of delegation of authority to functional manager, sales manager or financial manager but allow CEO’s to retain authority for strategic decisions. Divisional Business Organizations these are business organization made up of separate business units that are semi-autonomous or semi- independent, with a division head responsible for his or her unit’s performance. In other words, each division has its own functional organization and its own general manager; however, the central headquarters management maintains responsibility for the delineation of organizational goals of the individual divisions. Profit Business Organizations – these are business organization design for the purpose of achieving thief organizations’ mission, vision, goal, and objectives and maintaining their organizational stability through income generation and profitmaking activities. Immediate revenues or cost factors account for their success or failure. Non-Profit Business Organizations – these are business organizations designed for the purpose of achieving their organizations’ mission, vision, goals and objectives, providing service to clients without expecting monetary gains or financial benefits for their endeavors , their success or failure may be measured by the high or low evaluation scores they obtain. Open/Flexible Business Organizations these are formed to meet today’s changing work environment. Business organizations affect and are affected by the environment; therefore, change becomes inevitable. Other forms of business organizations: 1. Team Structures – where the organization as a whole is made up of work teams (small, but focused) that work together to achieve the organization’s purpose; popular I collectivist culture. 2. Matrix Business Organizations – those which assign experts or specialists belonging to different functional departments to work together on one or more projects; exhibit dual reporting relationship in which managers’ report to two superiors – the functional manager and the divisional manager. 3. Project Business Structure – a business organizational form with a flexible design, where the employees continuously work on projects assigned to them; projects may be short-term or long-term and members disband when the project is completed. 4. Virtual Business Organization – made up of a small group of full-time workers and outside experts who are hired on a temporary basis to work on assigned projects; members usually communicate online.  Other basic forms of business that are legal in the Philippines are single proprietorship, partnership, corporation and cooperative. Different organizations have different preferences as to the business form that is appropriate for their needs and the purpose of their existence. Managers, therefore, must be creative in finding ways to structure or design and organize work in their respective firms. REFERENCES 1. Vibal Cabrera,Altarejos, Riaz,(2016) Organization and Management 2. Zarate C.A. (2016) Organization and Management 3. Payos,Espinosa,Zorilla,(2017) Organization and Management