MANAGEMENT

- how businesses organize and direct workflow, operations, and employees to meet company goals.
- primary goal of management is to create an environment that empowers employees to work efficiently and
productively.
- So we look into long term value to measure effectiveness of total performance
- Essential discussion further focuses on Managing and Performing, knowing the external and internal
environment and making managerial decisions
- As the world of business is described as dynamic (continuous and productive activity or change), it becomes a
challenge requiring knowledge and skills to adapt to new circumstances, or current business landscape:
- Oxymoron: constant change / loudest whisper / deafening silence / small crowd / jumbo shrimp /
- moving target /working vacation / healthy competition / friendly takeover
a. GLOBALIZATION
o Transcending national borders
o Opened the world for more opportunities
o The change from local to global marketplace gaining its momentum
o Company’s talent and competition can come from anywhere
o E.g. TFC / McDonalds and Jollibee
o The impact of globalization may not be meritorious at all times. If I am to ask you, how does
globalization impact developing nations
o ASSIGNMENT (research and identify major companies worldwide who made success in its
globalization undertaking)
b. TECHNOLOGICAL CHANGE
o The internet’s impact on globalization (narrowing our world, with a click of the finger – news,
production, marketing activities, sales impact)
o Both complicates things and creates new opportunities
-e.g.: personal lives are bothered because you may be on call at any hour of the day
Or issues of threat of AI’s against human resources
The complexity and damage when technological advancement fails (hacking, computer glitch
which has hit banks and disrupted its operation and may result to humungous financial damage
o Why is Internet important to business?
▪ A marketplace, a means of manufacturing goods and services
▪ A distribution channel
▪ Information service (less of printed newspaper)
▪ Improves efficiency of decision making
c. KNOWLEDGE MANAGEMENT
o Knowledge workers are those with primary contributions are ideas and problem solving expertise
o The set of practices aimed to discovering and harnessing the organization’s intellectual resources
(HR as highly competitive, as most companies wont settle of anything less, yes with too many graduates,
they would go looking for t”hose knowledge workers”
o Finding, unlocking, sharing and capitalizing on people’s expertise, skills, wisdom & relationships
e.g. in the field of education, getting a master’s degree or doctorate status, does not only mean good
financial rewards but you become more of the knowledge worker that you should be with growth in
your expertise and ideas
d. COLLABORATION ACROSS BOUNDARIES
o People in different parts of the organization collaborate effectively with one another

COMPETITIVE ADVANTAGE
- generate greater value for a firm and its shareholders because of certain strengths or conditions.
- allow the productive entity to generate more sales or superior margins compared to its market rivals
(B.Q. and Alturas Group of Companies
 - Fundamental Drivers of Performance:
a. INNOVATION – introduction of new goods and services (milk/beer)
b. QUALITY – excellence of your product. Quality is further manifested when companies customize goods and
services to the wished of individual consumer. As Quality gurus, Edwards Deming and J.M. Juran convinced
managers to take a more complete approach to achieving total quality which includes preventing defects
before they occur or termed “ACHIEVING ZERO DEFECTS” and “DESIGNING PRODUCTS” so to live the
philosophy of continuous improvement
e.g. SAMsung Products / Montero Sports /Cellphone Products or Gadgets
c. SERVICE – giving the customers what they want or need, when they want it, making it easy and enjoyable
customers. e.g. Jollibee’s greetings (after sales is also very important)/ service is very important to banks
d. SPEED – isn’t everything, but rapid execution, response and delivery often separates winners from the
losers. It is not just a goal but a strategic imperative (bank tellers)
e. COST COMPETITIVENESS – keeping the cost low, to realize profit and price products and services at levels
attractive to customers (gadgets / on line shopping /between NOVO and Alturas
f. SUSTAINABILITY – a long term perspective on sustaining the natural environment and building tomorrow’s
business opportunities (not just of the business but for your resources)

OVERVIEW OF THE Management process

- The basic foundation of management expounds on overall performance (maximizing of resources which includes
detailing into employee or people performance
- Which is affected by both internal and external factors
- Thus, to make sound Managerial Decisions

- Involves four Basic Functions:

a. PLANNING (Delivering Strategic Values) – specifying the goals to be achieved and deciding in advance
specific actions needed to achieve the goals
o Planning and Strategic Management
o Ethics and Corporate Social Responsibility
o International management (impact of Globalization)
o Entrepreneurship – Value: described as the monetary amount associated with how well a product or
service meets users’ need. (with cost-related concerns for the entity)
o Historically planning is described as a top-down approach where top executives establish business plans,
NOW: a continual process where stakeholders identify opportunities to sustain competitive advantage
IMPLEMENTATION
b. ORGANIZING (Building a Dynamic Organization)
ORGANIZATION
- refers to a collection of people, who are involved in pursuing defined objectives
- encompasses division of work among employees and alignment of tasks towards the ultimate goal of the
company.
- It can also be referred as the second most important managerial function, that coordinates the work of
employees, procures resources and combines the two, in pursuance of company’s goals.
‘
o Defined as assembling and coordinating resources (human, financial, physical, informational) needed to
achieve goals
o Organization and Structure (types of organizational structures)
▪ Most organizational structure are linear, or triangular just like a pyramid where every
subsequent level becomes wider and wider
▪ So it depends on the size of your team, your organization and how your workflows are
structured that you may opt for alternative structures other the customary
▪ Defines how job titles, roles and responsibilities are assigned where it determines who to report
to and who makes decisions on what
▪ Importance
 a. Helps business implement efficient decision-making processes
b. provide a clear org chart that helps businesses keep track of their human resources
c. transparency in the workplace
o BASIC Organizational structure
1. Functional/Role-Based Structure – hierarchical, vertical and centralize
2. Product or Market Based Structure – benefits companies with different kinds of products
3. Geographical Structure – options for companies with broad geographic footprint, that aligns with
the location’s culture, language and professional system
4. Process Based Structure – similar to functional but follows a product’s and/or service cycle
o Alternative Organizational Structures:
1. Matrix Structure – a combination of several structures where there are multiple reporting
obligations. While this offers flexibility, shared resources and presents collaboration, it may cause
confusion about accountability and communication.
2. Circular Structure – while this type promotes collaboration, can still lead to confusion because there
is no clear chain of command (ex: sales and marketing and services departments)
3. Organic Structure – considered the most cost efficient because there is no need for middle
managers where employees don’t feel they have supervisors as this facilitates communication
among its staff. The Challenge: who has the ultimate decision-making authority
o Organizational Agility - when a company can quickly adapt to changes in their business environment.
o Human Resource Management – essential in all business organization, as this department addresses the
concern of our people.
o Managing the Diverse Workforce – understanding and appreciating the interdependence of humanity,
cultures and natural environment
c. STAFFING (The Hiring Process/Recruitment Process)
o finding the right worker with appropriate qualifications or experience to fill a job position or role
o in Human Resource Mgt: Finding the right number of people at the right time with the right qualification
d. LEADING (Mobilizing People) – stimulating people to high performers, relying on a different kind of
leadership: GREAT WORK MUST BE DONE VIA GREAT TEAMWORK
o Leadership – John Maxwell over emphasized that mobilizing people can always be possible if you set
that phase and example, described in the 5 Levels of Leadership
1. POSITION – the entry level as the lowest form of leadership, where people only follow if they believe
they have to. It is a prime place for you to begin investing in your growth and potential as a leader.
2. PERMISSION – when people choose to follow because they want to. Technically based on
relationship, where trust grows which usually leads to respect.
3. PRODUCTION – where best leaders know how to motivate people to GTD where leaders produce
good results build their influence and credibility
4. PEOPLE DEVELOPMENT – referred to as REPRODUCTION where leaders raise up new leaders and
most of the mentoring relationships are meant to last a lifetime.
(generousity of my former boss, taught me to live unselfishly) associated with career growth
5. PINNACLE – the highest level of leadership, where Leadership is about growth – for yourself, your
relationships, your productivity, and your people. This creating a legacy in what they do.
o Motivating for Performance
o Teamwork – Frederick Taylor, a management theorist, says that money as the key incentive for working,
that his initial approach using scientific management evolved into the concept of TEAMWORK
o Communicating
e. CONTROLLING (Learning and Changing) – makes sure that the goals are met, that outcomes are consistent
with goals, and goals are exactly aligned with the business environment.
o Managerial Control
o Managing Technology and innovation
o Creating and Leading Change

What is Evolution of Management Theory?

The practice of Management is as old as human civilization:
 - Ancient Civilization of Egypt, with great strides in building the pyramids
- Greece, with the leadership tactics of Alexander the Great
- Rome’s marvelous results of good management practices
- The Italian Renaissance (means "rebirth", and defines the period as one of cultural revival and renewed
interest in classical antiquity after the centuries during what Renaissance humanists labelled as the
"Dark Ages”
- The Industrial Revolution
- In Asia, Chinese began to develop the idea of bureaucracy, as manifested in early dynasties (rule of
hereditary monarchs), training in the Confucian teaching

***bureaucracy - s a system of organization where decisions are made by a body of non-elected officials.
(convey the images of red tape, excessive rules and regulations, lack of individual discretion, central control
and lack of accountability)

Confucian Teaching
- (a philosopher and a politician) emphasized personal and governmental morality, harmonious social
relationships, righteousness,[2] kindness, sincerity, and a ruler's responsibilities to lead by virtue.
- He championed the Silver Rule, or a negative form of the Golden Rule, advising, "Do not do unto others
what you do not want done to yourself."[4]

1. What were the contributions of the following groups to modern management:

Sumerians, Babylonians, Egyptians, Chinese, Greeks, and Romans?

CLASSICAL APPROACHES
a. SYSTEMATIC MANAGEMENT (1890)
- Emphasizes internal operation focusing on economical operations, adequate staffing, maintenance of inventory to
meet consumer demand and organizational control
- The goals:
Definition of duties and responsibilities to standardized techniques for performing the duties
Cost accounting, wage and production control systems

b. SCIENTIFIC MANAGEMENT (1900)

- A criticism against systematic management: that it failed to lead to widespread production efficiency
- Hence the scientific mgt advocated the application of scientific methods to analyze work and to determine how to complete
tasks efficiently
- The goal: Improving economic efficiency, especially labor productivity
- Frederick Taylor, an engineer, one of the first management gurus discovered that production and pay were poor, inefficiency
and waste were prevalent and companies had tremendous unused potentials
-
c. BUREAUCRACY (1910)
- Max Weber considers bureaucracy as the ideal model of management, but may not be the appropriate model for every
organization
- Advocates that the jobs could be standardized so that personnel changes would not disrupt the organization but rather
organization should have a structured, formal network of relationships among specialized positions in the organization
- While the system is deemed efficient and productive, shortcomings stem from a faulty execution of the bureaucratic principle
like too much authority may be vested in too few people and managers may ignore appropriate rules and regulations
d. ADMINISTRATIVE MANAGEMENT (1920)
- Emphasizes the perspective of senior managers within the organization and that management was a profession and cannot be
taught.
- 1n 1916, Henri Fayol, a French mining engineer and executive summarized his management experience with the five
functions and 14 Principles of management:
Division of Work – divide work into specialized tasks and assign responsibilities to specific individuals
2. Authority- delegate authority with responsibility
3. Discipline – make expectations clear and punish violations
4. Unity of Command – each employee should be assigned to one supervisor only
5. Unity of Direction – employees’ efforts should be focused on organizational objectives
6. Subordination of Personal Interest to the General Interest – the general interest must predominate
7. Remuneration - systematically reward efforts that support organization’s direction
8. Centralization – determines the relative importance of superior and subordinate roles
9. Scalar Chain – keep communication within the chain of command
10. Order – order jobs and material so they support organization’s objectives
11. Equity – fair discipline and order enhance employee commitment
12. Stability – promote employee loyalty and longevity
 13. Initiative – encourage employee to act on their own in support of the organization’s direction
14. Esprit de Corps – promote a unity of interest between employees and management

e. HUMAN RELATION (1930)

- Aims at understanding how the psychological and social processes interact with work situation to influence performance
- THE HAWTHORNE EFFECT
is a type of human behavior reactivity in which individuals modify their behavior in response to being
observed.
CONTEMPORARY APPROACHES
a. QUANTITATIVE MANAGEMENT (1950)
- Emphasizes the application of mathematical analysis to management decisions and problems
(Financial management focuses on the use of financial ratios which aids in coming up with more relevant figures
on the performance growth of the business: current ratios/leverage ratios/P and L ratios etc etc)
- These includes methods as: statistical decision theory linear programming, forecasting inventory modeling,
breakeven analysis
- That there are limitations with the use of quantitative analysis, as many aspects of decisions cannot be expressed
through mathematical formulas

b. ORGANIZATIONAL BEHAVIOR (1960)

- in the 1950’s a transition took place in the human relation approach, recognizing that worker productivity and
organizational success are based more than the satisfaction of economic and social needs.
c. SYSTEMS THEORY (1970)
- this was highly criticized as it stressed one aspect of the organization and ignored the relationship between the
organization and the external environment
- emphasizes that an organization is one system is a series of subsystems
d. CONTINGENCY THEORY (Dependency) (1980)
- leaders are flexible in choosing and adapting to succinct strategies to suit change in situation at a particular
period in time
- understanding contingencies helps a manager know which set of circumstances dictate management action
e.g. the BCP of a bank include among others, a back-up site to provide them continuity of operations in the
event that communications/internet service providers may fail
- Contingencies include:
1. Circumstances in the external environment (flooding/inflation rate)
2. The internal strengths and weaknesses (your resources and challenges)
3. The values, goals, skills and attitudes of managers and workers
4. The task, resources and technologies the organization uses

e. AN EYE ON THE FUTURE (2015)

knowledge of history could help with economic recovery and mitigate future fiascos.
e.g. mortgage crisis in 2007, the general financial panic in 2008 could have been avoided
(the global financial crisis, deemed the most severe economic crisis after the great depression.
Economies worldwide slowed during this period since credit tightened and international trade
declined. As this led to a contraction in world trade, most countries were dragged into the economic
downturn. The Philippines was not spared, as GDP decelerated. Though, unemployment increased
moderately, remittance from OFW continue to grow though at lower rate. A cause of concern was the
fiscal deficit finding the Economic Resiliency Plan as the key component of the government response.
GDP – total value of goods and services produced in a country
▪ one of the most widely used indicators of economic performance
GNP - total value of products and services produced by citizens both domestically and abroad

ORGANIZATION
- refers to a collection of people, who are involved in pursuing defined objectives
- encompasses division of work among employees and alignment of tasks towards the ultimate goal of the
company.
- It can also be referred as the second most important managerial function, that coordinates the work of
employees, procures resources and combines the two, in pursuance of company’s goals.
- Large organizations adopt the concept of types of managers found in three broad organizational levels:
2. TOP-LEVEL MANAGERS
 ▪ Often referred to as strategic managers
▪ Responsible for the interaction between the organization and its external environment
3. MIDDLE-LEVEL MANAGERS
▪ Sometimes called “tactical managers”
▪ Responsible for translating general goals and plans into specific objectives and activities
(note here: VMG’s particularly of HNU)
▪ Closer to day-to-day operations, customers, frontline managers and employees
4. FRONTLINE MANAGERS
▪ Also called the operational managers, who supervise the operations of the organization
▪ Given the freedom, incentives and support to find ways in creating and sustaining quality

- MANAGEMENT SKILLS
1. Technical Skill – the ability to perform specialized task involving a particular method or process
2. Conceptual and Decisions Skills – the ability to identify and resolve problems for the benefit of the
organization and its members
3. Interpersonal and Communication Skills – people skills, the ability to lead, motivate and communicate
effectively with others