LECTURE_1st-quarter_OAM-2.docx

COURSE DESCRIPTION: ORGANIZATION AND MANAGEMENT **CHAPTER 1: NATURE AND CONCEPT OF MANAGEMENT** **LESSON 1: MEANING AND FUNCTIONS OF MANAGEMENT** - Came from Italian word "maneggiare" -- means "to handle (tools or equipments)" - Maneggiare derives from latin word: - manus-...

COURSE DESCRIPTION: ORGANIZATION AND MANAGEMENT **CHAPTER 1: NATURE AND CONCEPT OF MANAGEMENT** **LESSON 1: MEANING AND FUNCTIONS OF MANAGEMENT** - Came from Italian word "maneggiare" -- means "to handle (tools or equipments)" - Maneggiare derives from latin word: - manus- means "hand" - agree -- means "to act" - Mary Parker Follet -- mother of modern management - It is the art of getting things done through people. - Henri Fayol -- father of principles of management - To manage is to forecast and to plan, to organize, to command, to coordinate and to control. - Frederick Taylor -- father of scientific management - It is the art of knowing what to do, when to do and see that it is done in the best and cheapest way. - Peter Ferdinand Drucker --management consultant, educator and author and considered as the Father of modern management. - It is a multi-purpose organ that manages the business and manages managers and manages workers and work. - It is a **process** of managing the resources **effectively** and **efficiently.** - **The process of planning, organizing, leading and controlling.** - **Management is both science and art.** - **It is considered as a science because managers need facts and information based on gathered data to come up with a sound solution.** - **It is considered an art because managers need specific skills which are innate in a manager.** **FOUR TYPES OF RESOURCES:** - **Physical Resources** - **Human Resources** **- the personnel of a business or organization. Examples: employees, managers** - **Financial Resources** - **Information Resources** **FUNCTIONS OF MANAGEMENT** 1. **PLANNING** - **It refers to the formulation of objectives, programs, policies, procedures, rules and regulations, in order to achieve the goals of the business.** - **It is the process of determining objectives and organizational goal, establishing strategies and integrating coordinated activities in the organization to achieve the goals and objectives. Planning provides a clear direction to the organization, it requires decision making with the purpose of anticipating the future.** **Top management is often responsible in handling or creating a plan for the company. Deciding in advance:** - - 2. **ORGANIZING** - - - - **How many units or sub-units or departments are needed?** - **How many posts or designations are needed in each department?** - **How to distribute authority and responsibility among employees?** - - - **Identification of activities** - **Classification of grouping of activities** - **Assignment of duties** - **Delegation of authority and creation of responsibility** - **Coordinating authority and responsibility relationship** 3. **STAFFING** - **Involves filling and keeping filled the positions provided in the organization structure.** - **It is the function of manning the organization structure and keeping it manned.** **The main purpose of staffing is to put right man on right job.** - **Involves:** a. **Manpower Planning** b. **Recruitment, selection and placement** c. **Training and Development** d. **Remuneration** e. **Performance Appraisal** f. **Promotion and Transfer** 4. **LEADING/DIRECTING** - - - - 5. **CONTROLLING** - - - **gathers information that measures performance;** - **compares present performance to pre-established performance norms; and** - **determines the next action plan and modifications for meeting the desired performance parameters.** - - - g. **Establishing of standard performance;** h. **Measurement of actual performance;** i. **Comparison of actual performance with the standards and finding out deviation if any; and** j. **Corrective action** **COURSE DESCRIPTION: ORGANIZATION AND MANAGEMENT** **CHAPTER 1: NATURE AND CONCEPT OF MANAGEMENT** **LESSON 2: TYPES OF MANAGEMENT THEORIES** 1. **CLASSICAL APPROACHES TO MANAGEMENT** A. **SCIENTIFIC MANAGEMENT** - **Spearheaded by Frederick Winslow Taylor (1856- 1915) a young engineer who started his working career at Midvale Steel Company. He is also the Father of Scientific Management.** - **He focused on analyzing the work and how to complete a task efficiently. He believed that a "mental revolution" would have to take place before management and workers could see that their positions were compatible. He pointed out that as productivity rose, the salaries of both managers and employees would also rise.** - **Advocated the concept of units, a worker would be paid higher rate per unit for any additional units he proceeds.** - **Uses scientific techniques in improving performance of the people in the production, emphasizing in the maximizing of outputs.** - **Taylor's Principles of Scientific Management** - 1. **Piece-rate incentive system. The purpose of piece-rate incentive system is to** **reward the workers who produced the maximum output. Under the system, if the worker met the established standard of performance, he earned the base rate set by the management using scientific methods. If the worker's output exceeded the set standards, his wage would go up. Increase in output, increase in profits even though they would be paying more in wages.** 2. **Time-and-motion study. Taylor** **relied primarily on the stopwatch, to focus on the amount of time required to complete a particular job. Thus, he is called the "father of time study."** - - B. **MOTION STUDY- is the reducing or breaking a task to its basic physical motions and eliminating unnecessary or redundant motions.** - - - C. **ADMINISTRATIVE MANAGEMENT** - - - 3. **DIVISION OF WORK- divide work into specialized tasks and assign responsibilities to specific individuals.** 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. - **Can be defined as a rational and efficient form of organization founded on logic, order, and legitimate authority.** - **It is characterized with a high degree of division of labor and hoas principles of rationality and impersonal relationship. More suitable in government organization.** **2. BEHAVIORAL MANAGEMENT THEORY/ HUMANS RELATIONS MANAGEMENT** - **ELTON MAYO (1880- 1949) is a researcher who conducted studies at Hawthorne Works Plant of Western Electric in Chicago.** - **ABRAHAM MASLOW (1908-1970) is a professor and psychologist who developed a motivational theory in which it is considered to be the best-known theory of motivation.** - **Maslow's Hierarchy of Need:** 4. **PHYSIOLOGICAL THEORY- known as the basic needs.** 5. **SAFETY NEEDS- need for security and protection from physical and emotional needs.** 6. **SOCIAL NEEDS- known as Belongingness needs. Need for love and affection, acceptance and friendship.** 7. **ESTEEM NEEDS- involves self-respect, recognition and achievements.** 8. **SELF- ACTUALIZATION NEEDS- highest level and also known as self- fulfilment; are realizing one's full potential and abilities.** - - **Intrinsic or Motivation factors-** **job satisfaction such as achievement and recognition.** - **Extrinsic or Hygiene factors-** **job dissatisfaction such as working conditions, company policies, pay and job security.** - - **THEORY X represents a negative end or view of people who:** - **THEORY Y represents a positive end of view of workers who:** **3. QUANTITATIVE APPROACHES TO MANAGEMENT** - - D. **Operations Management** - - **4. MODERN APPROACHES TO MANAGEMENT** - - - - **Open System -- interacts with its environment** - **Closed System -- has no interaction with its environment.** B. C. 9. 10. 11. 12. 13. - **Introduced by quality experts W. Edwards Deming (1990-1993) and Joseph M. Juran (1904-2008) eventually became the foundation of today's quality management practices.** - **It is a management** **philosophy that focuses on the satisfaction of customers, their needs, and expectations.** **COURSE DESCRIPTION: ORGANIZATION AND MANAGEMENT** **CHAPTER 1: NATURE AND CONCEPT OF MANAGEMENT** **LESSON 3: FUNCTIONS, ROLES, AND SKILLS OF A MANAGER** **LEVELS OF MANAGEMENT:** **Top Level Management** - - - - **Middle Level Management** - **They are the middle managers.** - **They are responsible for translating the general goals and plans that are developed by strategic managers into more specific objectives and activities (Bateman and Snell, 2008, p.23)** - **Often called tactical managers. (Actual steps)** - **Examples:** **Division Manager, Branch Manager, Area Manager, General Manager, Department Manager** **Front Line Management** - **Also called first line managers or operational managers.** - **They are responsible in training and motivating employees.** - **They supervise and monitor the operational activities of the firm and they report directly to the middle managers. (day-to day output)** - **Examples:** **Store Supervisor, Section Heads** **ROLE- is a set of behaviors that people are expected to perform because they hold certain positions in an organization. (McShane &Glinow, 2008 p. 272)** - - 1. 2. 3. - 1. **MONITOR -- In this role, you regularly seek out information related to your organization and industry, looking for relevant changes in the environment.** 2. **DISSEMINATOR -- This is where you communicate potentially useful information to your colleagues and your team.** 3. **SPOKESPERSONS -- Managers represent and speak for their organization. In this role you\'re responsible for transmitting information about your organization and its goals to the people outside it.** - 1. **ENTREPRENEUR -- As a manager, you create and control change within the organization. This means solving problems, generating new ideas, and implementing them.** 2. **DISTURBANCE HANDLER -- When an organization or team hits an unexpected roadblock, it\'s the manager who must take charge. You also need to help mediate disputes within it.** 3. **RESOURCE ALLOCATOR-- You\'ll also need to determine where organizational resources are best applied. This involves allocating funding, as well as assigning staff and other organizational resources.** 4. **NEGOTIATOR -- You may be needed to take part in, and direct, important negotiations within your team, department, or organization.** **SKILL- Is an ability or capacity that one possesses which may translate knowledge into action that result in desired performance. (Schermerhorn, 1999 p. 15)** - **MANAGEMENT SKILLS:** 1. **TECHNICAL SKILL - It is the ability which involves expertise performing a specialized task.** 2. **INTERPERSONAL SKILL- Also known as people skills is an ability to lead, motivate, encourage, inspire, understand and communicate directly with individuals or group** 3. **CONCEPTUAL SKILLS- This is the ability which include identifying, thinking in abstract, conceptualizing analytical situations and solving complex problems with broader scope.** 4. **DECISIONAL SKILLS- It involves an ability of making decisions or resolving problems. All managers are expected to possess these skills most especially the top-level management.** **COURSE DESCRIPTION: ORGANIZATION AND MANAGEMENT** **CHAPTER 2: THE FIRM AND ITS ENVIRONMENT** **LESSON 1: ENVIRONMENTAL FORCES AND ENVIRONMENTAL SCANNING** ***Business* is an organization that converts inputs or resources such as materials, labor, and overhead into outputs which are usually either goods and services to earn profit.** **COMPETITIVE ADVANTAGE** - Pertains to the distinguishing features or characteristics of a business organization that enable it to perform better than rival organization. **CHALLENGES IN GAINING COMPETITIVE ADVANTAGE** - **Environmental Uncertainty -** pertains to the lack of complete information about the current and future environment of the firm. - **Environmental Complexity -** is the presence of numerous factors prevailing in the environment that change over time. Pertains to political, economic, social and technological (PEST) conditions. **BUSINESS ENVIRONMENT** - **Defined as the total surroundings, which have a direct or indirect bearing on the functioning of business.** - **Refers to the factors or elements affecting a business organization. It can be divided into external and internal business environment.** **CLASSIFICATION OF BUSINESS ENVIRONMENT** - **External Business Environment-** refers to the factors/ elements outside the organization which may affect, either positively or negatively, the performance of the organization. These are the uncontrollable forces outside of your organization. - **Internal Business Environment-** refers to the factors/elements within the organization which may affect, either positively or negatively, the performance of the organization. comprises of the activities inside your organization. These refer to your controllable variables to achieve a set of objectives. **COMPONENTS OF THE EXTERNAL BUSINESS ENVIRONMENT: GENERAL AND SPECIFIC** - Systematic monitoring of the major external forces influencing organization is necessary to improve the management of the companies. Failure to consider a company's general and specific business environment may affect the strategies that management will make use. **General Business Environment includes:** 1. **Economics-** Economic situations such as **inflation, rates of interest**, **changing option in stock markets**, and **people's spending habits** may affect management practices in organization. Ex: companies may postpone expansion plans if bank loan interests are too high. 2. **Sociocultural-** include the customer's changing values and preferences; customs could also affect management practices in companies. Ex: Filipino customers are now conscious about the importance of avoiding fatty foods, so many food companies now make sure that the products they offer are cholesterol free or are low in cholesterol. In doing so, they avoid losing their customers. 3. **Political and legal-** refers to national or local laws, international laws, and rules and regulations that influence organizational management. Ex: labor laws related to preventing employees from firing their employees without due process require the former to allow the latter to exercise the right to present their position during disciplinary action before their employment can be terminated. 4. **Demographic --** such as gender, age, education level, income, number of family members, geographic origin, etc. Ex: decision regarding hiring of human resources may be affected by an organization's management policy that shows the prejudice to the hiring of married females who are in child-bearing age because they would like to minimize payment of maternity benefits. 5. **Technological** -- involve the use of varies types of electronic gadgets and advanced technology such as computers, robotics, microprocessors, and others that have revolutionized business management; e-commerce, tele-conferencing, and sophisticated information systems have rapidly changed the ways that business is conducted in the 21^st^ century. 6. **World and ecological-** are related to the increasing numbers of global competitors and markets as well as the nature and conditions of the changing natural environment. Products produced by companies must cater the changing needs of people in the global community, while, at the same time, considering their impact on the natural environment. Ex: car manufacturing managers must give the go signal for the development of vehicles that are environmental friendly instead of only being focused on the product's speed, fuel economy, and design. 1. **Stakeholders --** are parties likely to be affected by the activities of the organization. 2. **Customers-** are those who patronize the organization's product and services. Increasing customer satisfaction makes it necessary to managers of organizations to make crucial decisions regarding the development of products with higher value and the improvement of their services to meet their patrons' increasing demands. Also, this has prompted companies to solicit feedback from their customers to avoid the dissatisfaction that may lead to patronize another company offering similar products and services instead. 3. **Suppliers-** are those who ensure the organization's continuous flow of needed and reasonably priced inputs or materials (financial and labor supply) required for producing their goods and rendering their services. Managers decide what, where, and when to buy their supplies and which supplier to favor with their organization's supply orders. 4. **Pressure groups-** are special-interest groups that try to exert influence on the organization's decision or actions. Ex: pressure from FDA on some department stores and drug stores led them to stop selling beauty products containing lead and to stop ordering or importing such products from their suppliers. 5. **Investor's or owners -** provide company with the financial support it needs. The company cannot exist without them; thus, they greatly influence organizational management. Top-level, middle-level, lower-level managerial decisions are all influenced, in one way or another, by the investors or owners of organizations. Offering new products and services and applying for needed loans are all affected by the investors' or owners' way of thinking. 6. **Employees-** are comprised of those who work for another or for an employer in exchange of salaries/wages or other considerations. Employees execute the company's strategies and are important for the maintenance of the company's stability. Ex: managerial decisions are influenced by the company's knowledge workers. **COMPONENTS OF THE INTERNAL BUSINESS ENVIRONMENT** The organization's internal environment must be subjected to internal analysis. Internal strengths and weaknesses, opportunities and threats (SWOT) with regards to its resources (financial, physical, mechanical, technological and human resources), research and development endeavors, production of goods, procurement of supplies (materials, inputs and finance) and products and services must all be considered prior to organizational planning. **Internal Business Environment includes:** - **Resources** - **Research and development** - **Production or procurement of supplies** - **Products and services it offers** **ENVIRONMENTAL SCANNING ** - It is a technique through which images or information are recorded or gathered from conditions, situations and materials in the environment. - It can be done through interviews, sharing ideas with others, reading, observations and advertisement. - **It is a process to identify and assess all external and internal factors/elements, which can affect the organization's performance.** - **Environmental scanning involves seeking for and sorting through data about organization's environment** - An analytical tool shows the interrelationships of important factors that help one understand how things work. **Since business enterprise operates in a complex environment, analytical tool such as PEST and SWOT analyses will help managers make right and relevant decisions.** **ELEMENTS OF ENVIRONMENTAL SCANNING** - **External Analysis** examines the2 opportunities and threats in the firm based on different forces in the environment (PEST). It also includes analysis of the competitive forces in specific industry where the firms belong such as **competitors, buyers, suppliers, and substitutes for the firm's product or service.** - **Internal Analysis** examines the strengths and weaknesses of a condition inside the firm such **as skills and competencies of employees, capacities of resources, organizational culture, and team spirit.** **PEST ANALYSIS** - **PEST ANALYSIS-** the most used detailed analysis of the environment. **Refers to Political, Economic, Sociocultural and Technological that describes a framework of macro-environmental or the uncontrollable external factors used in doing an environmental scanning for market research as part of the strategic management.** - **It is said to be created by Francis Aguilar, a Harvard professor.** The letters in PEST denote the following things: - **P for Political factors- Pertain to legal regulations, political orientations, government policies, and compliance procedures of government bodies that affect or control the operation of the firm.** - takes the country's current political position. Some political factors that you can study are: - **E for Economic factors- involves all the determinants of the economy and its state. These include employment rates, income levels, inflation rates, savings and investment rates, insurance rates, and monetary policies.** Some economic factors affecting your business are listed below: - **S for Socio-Cultural factors- These are people's characteristics and lifestyles that impinge on the operation of the firm such as demographic factors, social norms, customs, and values. It refers to the** distinctive mindset of each country. These might ultimately affect the sales of products and services. Some of the social factors you should study are: - - - - - - - **IMPORTANCE OF PEST ANALYSIS** - Pest Analysis helps the business spot opportunities and red flags on significant threats. It guides the direction of change within business environment and contributes to avoid starting projects that are likely to fail for reasons beyond the control of the business firm. It can also help loosen up unconscious assumptions when for instance the firm plans to enter a new country, venture a market or region because it helps to see the big picture of the environment. **SWOT ANALYSIS** - It is a planning tool used to understand the Strengths, Weaknesses, Opportunities and Threats involved in a project or in a business. Albert Humprey, American business and management consultant who first tested SWOT Analysis. - - **Strengths-** are the capital, knowledge, skill or other advantage that the firm has or can acquire over its competitors in meeting the needs of its customers. These the advantages or the internal attributes that support a positive result, or edge that you have over your competitor. - **Weakness-** refers to the internal defect or shortcoming which increases the risk of the failure or lowering organizational performance. These are the disadvantages or internal characteristics that work against a successful outcome compared to the competitors. - **Opportunity-** means good position, chance or prospect as for the advancement or success. These refers to the current external factors or trends that can be used to be taken advantage. - **Threats-** refer to the negative external forces that inhibit the firm's ability to achieve its objective. These are current external factors which cause a problem to cause a negative impact and can jeopardize the business. **IMPORTANCE OF SWOT ANALYSIS:** - It will help you **FOCUS or CAPITALIZE** on your **Strengths,** **OVERCOME Weaknesses, MINIMIZE threats,** and **TAKES ADVANTAGE** of the **Opportunities** available in the community. **COURSE DESCRIPTION: ORGANIZATION AND MANAGEMENT** **CHAPTER 2: THE FIRM AND ITS ENVIRONMENT** **LESSON 2: THE LOCAL AND INTERNATIONAL BUSINESS ENVIRONMENT OF THE FIRM** **THE LOCAL AND INTERNATIONAL BUSINESS ENVIRONMENT OF THE FIRM** - - - - - - **ROLE OF BUSINESS IN RELATION TO THE ECONOMY** The surviving enterprise is responsible for providing the following: 1. **Products and services for the consumers and producers.** - Products offered for sale reveals a wide choice provided to the customers. - Services which were not previously available are now at the beck and call of the customers. - Continuously innovate and develop new products and services based on what they perceive to be the needs of the society. They also look for ways by which these goods and services could be efficiently produced. The development of new product and the delivery of needed services make life easier and comfortable for society. 2. **Employment** - When entrepreneurs put up business, they often need to hire at least one or two other people in order to get things done. A review of the statistical reports by the government shows that the employment generated by the business organized by entrepreneurs runs to billions of persons. 3. **Taxes** - The taxes paid to the government in the form of licenses, fees and permits applicable to the enterprises, as well as income taxes applicable to the employees and the entrepreneurs, amount to billions of pesos. The taxes collected are, in turn, poured into the development efforts of the government. 4. **Demand for suppliers' products and services** - Enterprises also make sure that the suppliers will have a ready market for their products and services. 5. **Training facilities for future entrepreneurs.** - A number of entrepreneurs were formerly employees of enterprising persons. Many of them acquired skills in opening new business. **THE DIFFERENT PHASES OF ECONOMIC DEVELOPMENT** **Developing Economic Phase: Reliance on Agricultural as the Primary Sector** - Agricultural sector typically plays a dominant role in the economy as compared to other sectors (industry and service). Transformation of the agricultural sector lead to higher productivity and increased in income of people. **Industrialization Phase: Decline in Agriculture and Shift in the Industry Sector** - Transition from "traditional" to "modern" economy, characterized by the following factors: - Increased in consumer demand - Increased in incomes - Growth in the labor force - Accumulation of capital - Introduction of new technologies. **Globalization Phase: Interdependence Among Countries and Worldwide Competition.** - "Global economy" that is characterized by worldwide business competition and the wide scope for markets and supply of resources that go beyond national borders. **FORMS OF BUSINESS ORGANIZATIONS** 1. **SOLE PROPRIETORSHIP-** a sole proprietorship is a business owned and operated by a single person.The individual or person who owns this type of business is referred to as **Proprietor.** **Advantages of Sole Proprietorship**: 1. Ease and cost of formation 2. Secrecy 3. Distribution and use of profits 4. Control of the business 5. Government regulation 6. Taxation 7. Closing the business **Disadvantages of Sole Proprietorship** 1. The owner's possible lack of ability and experience 2. The difficulty in attracting and keeping quality employees 3. The difficulty in raising the capital 4. The limited life of the firm 5. The unlimited liability of the proprietor 2. **PARTNERSHIP-** is a legal association of two or more persons as co-owners of an unincorporated business. The group of individuals who own the partnership is referred to as **Partners.** **Advantages of Partnership** 1. Ease of formation 2. Pooling of knowledge and skills 3. More funds available 4. Ability to attract and retain employees 5. Tax advantage **Disadvantages of Partnership** 1. Unlimited liability 2. Limited life 3. Potential conflict between partners 4. Difficulty in dissolving the business **TYPES OF PARTNERSHIP ACCORDING TO LIABILITY** 1. **General Partnership-**is an association of two or more persons, each is unlimited liability, who are actively involved in the business. 2. **Limited Partnership**- is an arrangement in which the liability of one or more partners is limited to the amount of assets they invested in the business. 3. **CORPORATION-** this business form is initiated by individuals called **incorporator,** numbering from minimum of five to a maximum of fifteen**.** A corporation is "a legally chartered enterprise with most of the legal rights of a person, including the right to conduct a business, to own and sell property, to borrow money and sue or be sued." To get additional capital, shares of stocks are sold to interested parties called the **stockholders.** They are issued certificates of ownership called **stocks.** **Advantages of Corporations** 1. Limited liability 2. Ease of expansion 3. Ease of transferring ownership 4. Relatively long life 5. Greater ability to hire specialized management **Disadvantages of Corporations** 1. More expensive and complicated to organize 2. Double taxation 3. More extensive government restrictions and reporting requirements 4. Employees lack the personal identification with and commitment to zcorporate goals than those for sole proprietorship and partnership. **CHAPTER 3: PLANNING** **PLANNING-** is the process of determining objectives and organizational goals, establishing strategies and integrating coordinated activities in the organization to achieve the goals and objectives. - **TYPES OF PLANS** 1. **SINGLE USE PLANS**- It is a set of activities designed for a specific goal that is unlikely to be represented in the future. - Are used once to meet the needs of well-defined situations in a timely manner. Example: Budget (commit resources to activities, projects or programs) 2. **STANDING PLANS-** It is an ongoing plan designed without a determined time period. It is often created to achieve a continuing set of goals. - These are usually policies, rules, procedures and programs developed to serve as a guidelines or methods to be followed in accomplishing particular objectives. 3. **CONTINGENCY PLANS-** Managers must be able to detect changes before they happen. It's about thinking ahead and preparing for the worst-case scenario. - It involves identifying an alternative course of action to be taken and implemented if the initial plans do not work due to uncontrollable events. **BENEFITS OF PLANNING** 1. Planning reduces uncertainty. 2. Planning create goals that is used in controlling. 3. Planning gives direction 4. Planning improves performance of the people within an organization. 5. Planning improves coordination of work. **PLANNING AT DIFFERENT LEVELS OF THE FIRM** **LEVEL OF MANAGEMENT** **TIME HORIZON** ---------------------- ------------------------- ------------------- Strategic Planning Top 3-7 years Tactical Planning Middle 1-3 years or less Operational Planning Frontline Less than 1 year A. **STRATEGIC PLANNING- involves analyzing and determining objectives and deciding what actions are needed to be taken to achieve them.** - **Top managers are responsible for the development of the plan. The length of the planning horizon will cover 3-7 years that is why it is called long range planning.** B. **TACTICAL PLANNING- is a set of procedures for translating broad strategic goals and plans into specific goals and plans that is relevant to distinct portion of the organization.** - **Middle managers are responsible in the creation of the tactical plans length of horizon will cover 1-3 years or less.** - **It is important that a tactical planning is aligned with the strategic planning.** C. **OPERATIONAL PLANNING- it deals with limited scope and focus on specific areas. It process of setting short-range objectives and determining in advance how they will be accomplished.** - **Frontline or operational managers are the one responsible in developing this plan. The length of horizon usually covers less than one year.** **THE NATURE OF A GOAL IN ORGANIZATION** **CHARACTERISTICS OF GOAL** - **A goal should be S.M.A.R.T.** **SPECIFIC- it means that goal must be accurate and well defined.** **MEASURABLE- it pertains that goal have to be quantifiable.** **ATTAINABLE- it refer that goal need to be achievable and manageable.** **RELEVANT- it means that goal be important and significant.** **TIME-BOUND- it means that goal should have a target date or date of completion.** **TYPES OF GOALS** **SHORT-TERM GOAL- is a type of goal that needs to be achieved in a short period of time.** **LONG-TERM GOAL- is a type of goal that deals in the future because it need to be achieve over a longer period of time and typically not achievable in one simple step.** **THE IMPORTANCE OF DECISION MAKING** **DECISION MAKING- is a process of choosing and selecting best possible alternatives; a decision is useless unless they are not acted on or implemented.** **TYPES OF DECISIONS** A. **PROGRAMMED DECISION- is a type of decision that is highly structured wherein procedures in a decision are provided with predetermined decision rules.** - **Are made in response to repetitive situation.** B. **NON-PROGRAMMED DECISION- is a type of decision that is unstructured with no clear procedures for making a decision.** - **It deals with developing or creating a possible solution and all alternatives should be evaluated.** **BASIC DECISION-MAKING PROCESS** 1. **Identify the problem- this is the first stage of decision making. It involves the assessment of the situation.** 2. **Gather information about the problem- to collect all the necessary information related to the problem. In this stage, managers are expected to find source of the problem to better understand the scenario in order to realize what kind of information is needed.** 3. **Develop alternative solutions- to generate alternatives. Brainstorming is one of the best decision making methods; it is also a good method in alternative solutions.** 4. **Analyze the alternatives- a manager needs to determine the advantages and disadvantages of each alternative. It is necessary to include the different factors such as the benefits, the costs, the acceptability, the impact and the risk involved.** 5. **Select the best alternative-to choose the best alternative. This is the most crucial stage of decision making process. A manager needs to realize the best possible alternative also known as maximizing and not just choosing an alternative that is acceptable enough that meets the minimal requirements but not necessarily the perfect one which is commonly known as satisfying.** 6. **Implement the alternative- to put things in action. For an implementation to be able to succeed, commitment and proper motivation from the manager and other people who are involved in a decision process is needed.** 7. **Evaluate the decision- this is the final step of the decision-making process. A manager needs to examine the consequences of the decision both positive and negative. An evaluation system should provide feedback especially if the desired state was not achieved. A corrective action is necessary. This only proves that a decision making is a ongoing process.** **IMPORTANCE OF MISSION AND VISION** **MISSION STATEMENT- is the reason for organization's existence. It serves as a basis for organizational goals which provides more detail. Managers often times use mission statement as a guide in making decisions because it focuses on the company's present state.** **VISION STATEMENT- is a mental image of a possible and desirable future state of the organization. The best visions are ideal and unique. It sets the direction to the organization. It simply answers the question "Where do you want to go?"** **CRITERIA IN PREPARING MISSION STATEMENT** - **It should be clear and easily to be understood** - **If possible keep it short the ideal mission statements tend to have three to four sentences.** - **It should describe what your company does, who does it for, how you do it and why.** - **It should include the core competencies, values, moral, and ethical positions that are expected in your business.** - **It should be able to with stand the changes and aim for the substances by putting your mission statement at work.** **CHAPTER 4: ORGANIZING** - **ORGANIZATIONAL STRUCTURE** - **DEPARTMENTALIZATION** - - 1. **FUNCTIONAL DEPARTMENTALIZATION- is an arrangement that defines departments by the function each one performs, such as accounting and purchasing.** 2. **GEOGRAPHIC DEPARTMENTALIZATION- is an arrangement of departments according to the geographic area and/or territory served** 3. **PRODUCT-SERVICE DEPARTMENTALIZATION- is the arrangement of departments according to the products or services they provide.** **ORGANIZATIONAL DESIGN** - It is a process that involves decisions about the following six elements: work specialization, chain of command, span of control, centralization, decentralization and formalization. **5rnjjr5n5rnb4JOB DESIGN** - It is a process of laying out the job responsibilities and duties. It also includes the description on how these are performed. **JOB SPECIFICATION** - It refers to the list of the knowledge, skills, abilities, and other characteristics that an individual must have to perform a particular job. F**OUR DIMENSIONS OF JOB DESIGN:** 1. **TASK CHARACTERISTICS-** refers to the focus on how the work itself is accomplished, the range and nature of the tasks associated with a particular job. It can be expressed in four sub-dimensions: a. b. c. d. 2. **KNOWLEDGE CHARACTERISTICS**- refers to an obvious job dimension. It is the demand for knowledge, skill and ability placed on a job holder because of the activities built into the job. It is expressed into five sub dimensions: a. **JOB COMPLEXITY-** refers to the degree of the job tasks are. This measure the complexity and difficulty the job is to perform. b. **INFORMATION PROCESSING**- refers to the degree a job requires attending to and processing of data and information. c. **PROBLEM SOLVING-** refers to the degree a job requires unique ideas or solutions. It also involves diagnosing and solving non-routine problems and either preventing or fixing errors. d. **SKILL VARIETY-** refers to the extent a job requires the incumbent to use a variety of skills to perform the work. e. **SPECIALIZATION-** refers to the extent a job involves performing specialize tasks or processing specialized knowledge and skill. 3. **SOCIAL CHARACTERISTICS-**relate to the interpersonal aspects of a job or the extent the job requires interaction with others. It can be expressed in three sub-dimensions: a. **INTERDEPENDENCE**- reflects the degree the job depends on others-and others depend on the job- to accomplish the task. b. **INTERACTION OUTSIDE THE ORGANIZATION**- refers to how much the job requires the employee to interact and communicate with people outside the organization. c. **FEEDBACK FROM OTHERS**- refers to the extent other workers in the organization provide information about performance. 4. **CONTEXTUAL CHARACTERISTICS-** refers to the setting or environment of the job, such as working in extreme temperatures. It can be expressed in four sub-dimensions: a. **ERGONOMICS**- indicates the degree to which a job allows correct posture or movement. b. **PHYSICAL DEMANDS**- refer to the level of physical activity or effort required for the job, particularly with respect to physical strength, endurance, effort and activity. c. **WORK CONDITIONS-** relate to directly to the environment the work is performed. It includes the presence of health hazards, noise, temperature, and cleanliness of the workplace. d. **EQUIPMENT USE-** reflects the variety and complexity of the technology and equipment incorporated in to the job. **JOB SPECIALIZATION** - According to Dubrin, job specialization is the degree a job holder performs a limited number of tasks. - Advantages: 1. 2. 3. - Disadvantages: 1. Coordinating the work force can be difficult when several employees do small parts on the job. 2. Somebody must take responsibility for pulling together the small pieces of the total task. 3. They become bored by performing a narrow range of tasks. **JOB DESCRIPTION** - It is a written statement of the key features of a job along with the activities required to perform effectively by the job holder. **JOB ENRICHMENT** - It is an approach in including more challenges and responsibilities in jobs to make them more appealing to employees. - Characteristics of job enrichment: 1. **DIRECT FEEDBACK**- employees should receive immediate evaluation of their work. 2. **CLIENT RELATIONSHIP**- A job is automatically enriched when an employee has a client or customer to serve. 3. **NEW LEARNING-** enrichment allows its holder to acquire new knowledge. 4. **CONTROL OVER METHOD-** when worker has some control over which method to choose to accomplish a task, his or her task motivation generally increases. 5. **CONTROL OVER SCHEDULING**- The ability to schedule one's work contributes to job enrichment. 6. **UNIQUE EXPERIENCE**- an enriched job exhibits unique qualities or features. 7. **CONTROL OVER RESOURCES**- Another contribution to enrichment comes from having some control over resources such as money, material or people. 8. **DIRECT COMMUNICATION AUTHORITY-** An enriched job provides workers the opportunity to communicate directly with people who use their output. 9. **PERSONAL ACCOUNTABILITY**- In an enriched job, workers take responsibility for their results.