MODULE 1:
REVIEW ON
ORGANIZATION & MANAGEMENT
3 Elements Of An Organization
•People
•Ideas
•Things
Nature and Importance
Determinants of Organization
Productivity
Human Knowledge
Skills
Ability
PETER DRUCKER
• Father Of Management Thinking
• Father of Modern Management
• Management Guru'
• He believed that
managers should
also be leaders
• “getting things done
Through other people”
Five Functions of Management
Planning
Organizing
Staffing
Directing
Controlling
PLANNING if you fail to plan, you plan to fail
Core function of managers
It makes managers
formulate decisions and
strategies.
*It shapes the goals and
defines the operations and
activities of the organization.
Vision statement - what the company wants to achieve and where it wants to go in
the future.
Mission statement - a company’s reason for existence.
Goals are specific accomplishments or action plans that are usually attained after a
long period of time.
Objectives refer to action plans that involves shorter period of time
Examples of planning types
short- term planning > strategic plans
Long-term planning > tactical plans
Production planning > operational plans- specific procedures and processes
Financial planning policy, rule and procedure
Marketing Planning
Process Involved in Planning
ORGANIZING
>Place everything in order
Arranging tasks and personnel to
ensure that goals are executed
Managers allocate responsibilities to
various team members suited for them to
perform.
• Organizing process brings together all the human,
physical and financial resources and integrates them with
related jobs and positions.
This process ensures that authority and responsibility are
well-defined and internally coordinated within the
organization.
Organizing functions performed
> identification of activities top-level management
> authority is assigned; also called hierarchy- line of authority middle-level
- delegation low-level management
Organizational Design & Structure
• Organizational structure- chart that shows
hierarchy, work relationships and
• Organizational Design communication process.
identifies the essential tasks and • >work specialization
departmental grouping options • >departmentalization
• >chain command – authority, responsibility,
• Organizational structure unity of command
• >span of control
is the framework that shows how
each component of the company • >centralization; decentralization
relates to each other. • > formalization- standardizing jobs and
establishing rules and guidelines to guide
employees
Fayol’s Principles of management
(related to Organizing)
• Division of work work specialization departmentalization
• Scalar chain - chain of command
• Authority and responsibility
• Unity of command
• Span of control
• Centralization; decentralization
Organizational structure example
STAFFING
Putting the right men on the
right job. Hiring and keeping
the positions in the organization
structure filled.
• Identifying work force
• Recruiting, selecting,
promoting, appraising,
compensating, training,
maintaining employees
Staffing process
DIRECTING
> Is a process by which managers instruct, guide
and monitor the performance of the employees.
> includes Leadership- a social influence that
enables a person to encourage others to move/act
> Motivation -motivating employees so that they
will contribute to the success of the group
(department) and organizational goals.
Fayol’s Principles of Management
(related to directing) •Discipline
•Order
•Unity of Command •Esprit De Corps.
•Unity of Direction •Equity
•Subordination of •Remuneration
Individual Interest to • Stability of Tenure
General Interest
•Initiative
Motivation Theories
•MASLOW’S HIERARCHY OF NEEDS
•ALDERFER’S ERG THEORY
•McClelland LEARNED NEEDS THEORY
•HERZBERG’S TWO-FACTOR THEORY
•ADAM’S EQUITY THEORY
•VROOM’S EXPECTANCY THEORY
LEADERSHIP THEORIES & STYLES
• GREAT MAN THEORY
• TRAIT THEORY
• BEHAVIORIST THEORIES
• PARTICIPATIVE LEADERSHIP
• SITUATIONAL LEADERSHIP
• CONTINGENCY THEORY
• TRANSACTIONAL THEORY
• TRANSFORMATIONAL THEORY
Leaders and Managers
• Leaders create vision, managers create • Leaders are in it for the long haul,
goals. managers think short-term.
• Leaders are change agents, they are • Leaders grow personally, managers rely on
innovators, embrace change, thinks that existing, proven skills.
there could be a better way • Leaders build relationships, managers
build systems and processes.
managers maintain the status quo, stick
with what works, refine the systems, • Leaders coach, managers direct.
structures and processes to make them • Leaders create fans(more than followers),
better. managers have employees, staff who
follow .direction and seek to pleas the
• Leaders are unique, managers copy. boss.
• Leaders take risks, managers control risk.
An article from [Link] nov15, 2016
William Arruda
CONTROLLING
Measuring and correcting individual
and organizational performance to
ensure that events and activities
conform to plans.
> Checking errors and addressing
deviations from established
performance standards.
Control Methods and Systems
• Feedforward control- anticipates the occurrence of possible
problems so that preventive measures can be implemented before
the actual operation
• Concurrent control- implemented while the activity is in progress, to
monitor the activity as it happens and address problems as they
occur.
• Feedback control- done after the activity. Feedback enables
managers to gather information and determine whether the
activity is a success or a failure.
VARIOUS CONTROL METHODS AND
MONITORING SYSTEMS
• ADMINISTRATIVE CONTROL- • FINANCIAL REPORTS-
EFFICIENCY IN THE ACTIVITIES OF THE LIQUIDITY RATIO; LEVERAGE
COMPANY RATIO; ACTIVITY RATIO;
• DELEGATION- MAKING PROFITABILITY RATIO
ACCOUNTABLE TO THEIR OWN • PEFORMANCE APPRAISAL-
ACTION. EMPLOYEE
EMPLOYEES MEET GOALS BY
EXERCISECONTROL BECAUSE THEY
MANAGE THTEIR BEHAVIOR AND
CORRECTING AND
ACTIVITIES IMPROVING PPERFORMANCE
• EVALUATION – COLLECETION AND • POLICIES AND PROCEDURES
ANALYIS OFINFORMATION IN • QUALITY CONTROL
ORDER TO MAKE ECISIONS
