Organization and Management 11

First Quarter
Self-learning Module
 FUNDAMENTALS OF MANAGEMENT
Lesson 1

Management and Functions

• Management is the process of administering and coordinating resources effectively and efficiently in an effort to achieve
the goals of the organization.
• At the most fundamental level, management is a discipline that consists of a set of five general functions: planning,
organizing, staffing, leading and controlling.
• Planning is the process of developing a roadmap aimed to achieving a business goal.
• Organizing involves assigning tasks, grouping tasks into departments, delegating authority and allocating resources across
the organization.
• Staffing encompasses everything from hiring the right employees for your business to making sure that key roles are filled
during all of your business’s operating hours.
• Leading refers to how a manager makes decisions, set goals and provide direction in a professional environment.
• Controlling helps in measuring the progress towards the organizational goals and brings any deviations and indicates
corrective action.

Competitive Advantage

• Cost is a primary concern for consumers, so managers must never fail to address this to be competitive.
• Innovation is the introduction of new products and services.
• Quality is the ability of a product or service to meet customer needs.
• Service is an intrinsic requirement for all customers, as they need to have what they want when they need it.
• Speed appears to be the buzz word of this millennium. Fast-food outlets, Internet search engines and automated teller
machines are among the more familiar developments.

Management Levels

• Top-level managers or senior executives are responsible for the overall management of the organization.
• Middle-level managers report to top-level managers.
• Frontline managers supervise the operational activities and are also called operational managers.

Management Skills

• Management skills can be defined as certain attributes or abilities than an executive should possess in order to fulfill
specific tasks in an organization.

• A critical role of a manager is to also ensure that all parts of the organization are functioning cohesively. Without such
integration, several issues can arise and failure is bound to happen.

Types of Management Skills

• Technical skill involves the ability and the knowledge to use a variety of techniques to achieve their objectives.
• Conceptual skill involves manager’s ability to see an entire concept, analyze and diagnose a problem, and find creative
solutions.
• Interpersonal skill presents the manager’s ability to interact, work or relate effectively with people.
• Communication skill is very crucial for a manager. It can determine how well information is shared throughout a team,
ensuring that the group acts as a unified workforce.
• Decision-making is another vital management skill. Manager makes numerous decisions, whether
knowingly or not, and making decisions is a key component in a manager’s success.
• Delegation is a manager’s ability to effectively and efficiently reassign tasks and give authority to the right employees.
• Problem-solving is a manager’s ability to tackle and solve the frequent problems that can arise in a typical workday.
• Motivating skill helps bring forth a desired behavior or response from the employees or certain stakeholders.

Next page
 Activity
(Fundamentals of Management)

Name: _____________________________ Score: ________

I. Direction: Read and analyze each statement carefully. Encircle the letter of the best answer.

1. Which of the following can be classified as a service firm?

a. Coffee Shop c. Carinderia
b. Water station with free delivery d. Massage Parlor

2. Which of the following less describes a CEO?

a. Responsible in setting goals
b. Responsible in developing a corporate plan
c. Responsible in establishing company policies
d. Oversee an organization’s daily operations

3. Whose main obligation is to supervise the operational activities around the firm?
a. Top-level manager c. Frontline manager
b. Middle-level manager d. Senior manager

4. Something can be defined as certain attributes or abilities that an executive should possess in order to fulfill specific tasks in an
organization.
a. Organizational skills c. Executive skills
b. Administrative skills d. Management skills

5. When a manager is able to communicate and build relationships with others. What skill does he/she have?
a. Communication skill c. Problem-solving skill
b. Sociological skill d. Interpersonal skill

6. Which of the following helps forth a desired behavior or response from the employees or certain stakeholders?
a. Communication skill c. Technical skill
b. Interpersonal skill d. Motivating skill

7. This involves the ability and the knowledge to use a variety of techniques to achieve their objectives
a. Technological skill c. Technical skill
b. Scientific skill d. Procedural knowledge

8. A formal written document containing the goals of a business, the methods for attaining those goals, and the time-frame for the
achievement of the goals.
a. Framework c. Business plan
b. Roadmap d. Corporate plan

9. They are responsible in monitoring the business resources such as staffs, stocks, money, materials and etc.
a. Branch Managers c. CEO (Chief Executive Officers)
b. Senior Managers d. Middle-level managers

10. The senior executives who are not irresponsible for the overall management of the organization.
a. Senior managers c. Top-level managers
b. Department heads d. Middle-level managers

II. Direction: Answer the question below with specific and brief explanation.

1. Assuming you are the owner of the Yamaha Motorcycle Manufacturing Company, would you love to bring innovation into your
organization and why?

__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________

Next page
 THE ORGANIZATION AND ITS ENVIRONMENT
Lesson 2

I. EXTERNAL ENVIRONMENT

• External environment refers to the elements outside the company’s control; this includes the Political, Economic,
Sociological, and Technical conditions and other factors which generally affect all organizations.

Political: Changes in tax laws

• If the government reduces income tax, consumers’ disposable income will rise, leading to more spending.
• Conversely, an increase in VAT will increase the price of goods and discourage spending.

Economic: Price fluctuation

• An increase in the price might increase the immediate sales revenue. But, it also increases the competition as other players
start getting into the field to reap the profits from increased costs.
• A fall in commodity prices can lead to a decrease in the immediate sales revenue for the producer.

Sociological: Changes in tastes and preferences

• When the taste and preferences of consumers for a particular commodity go higher, the market for that product heightens
thereby causing a rightward shift on the demand curve.
• Conversely, a drop in the taste and preferences of consumers translates to a decline in the market for that product. The
effect of this change on the demand curve is leftward shift.

Technical: The Internet

• Through the Internet, the organization can build or enhance competitive advantage.
• The latest mobile technologies and high-speed Internet allow consumers to visit your website, read products’ descriptions,
and search for services and reviews on the go.

II. INTERNAL ENVIRONMENT

• Internal environment includes everything within a company’s control like its Human Resource, Capital Resources,
Infrastructure and Innovation. These internal factors are divided into strengths and weaknesses. Strengths are that benefit
the company, while weaknesses hold it.

Human Resources
• Skilled and motivated workers are key assets to any enterprise. However, employees who lack training and show negative
attitudes present challenges.

Capital Resources
• Without capital, companies can’t survive. With enough funds, they can launch projects, expand, and achieve great results.
For example, in 2010, Coca-Cola spent 2.9 billion USD on marketing, more than Microsoft and Apple’s combined budgets,
showing the importance of significant investment and stable finances for success.

Infrastructure
• With the modern and high-quality facilities, stable power, internet and Wi-Fi connection and so on, your company is likely
to perform better.

Innovation
• Innovation boosts productivity, reduces costs, enhances competitiveness, improves brand value, and increases turnover.
Companies that fail to innovate risk losing market share, profits, and key employees.
• To benefit from innovation, businesses must plan, encourage, and strategically invest in innovative initiatives.

Next Page
 Activity
(The Organization and its Environment)

Name: _____________________________ Score: ________

I. Direction: Answer the questions below with specific and brief explanation.

1. Infrastructure is one of the internal factors affecting business. Assuming you are a manager of a developing restaurant, what is
one of the attractive facilities would you build for that restaurant and why is that your preference?

____________________________________________________________________________________________________________
____________________________________________________________________________________________________________
____________________________________________________________________________________________________________
____________________________________________________________________________________________________________
____________________________________________________________________________________________________________
____________________________________________________________________________________________________________
____________________________________________________________________________________________________________

2. What is an example of economic price fluctuation ?

__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________

Next page
 PLANNING
Lesson 3

• Planning is the process of thinking about the activities required to achieve a desired goal. It is the first and foremost activity
to achieve desired results.
• Planning process is the development of goals, strategies, task lists and schedules required to achieve the objectives of a
business.

Specific Steps in Planning Process:

• Situational Analysis entails the gathering, interpretation, and summary of relevant information for the planning issue under
consideration.

• Alternative Goals and Plans involve the generation of choices and options for the identified problem/s in situational
analysis.

• Goal and Plan Evaluation involves the assessment of advantages and disadvantages of each goal, with the objective of
prioritizing, or even removing some of the options.

• Goal and Plan Selection involves the selection of the most suitable and viable option for the identified problems.

• Implementation entails the mobilization of resources to put the chosen goal into operation.

• Monitor and Control involves the measurement of accomplishments versus the goal, often requiring the setting up of
control systems to determine performance.

Strategic Management Process

• Strategic Management Process is an ongoing process of five steps which defines the way an organization makes its strategy
to achieve its goals.

• Vision Statement describes the desired future position of the company.

• Mission Statement defines the company’s business, its objectives and its approach to reach those objectives.

• Goals are short-term directions, often stated in specific metrics, such as geographic, periodic, and other numerical terms.

Types Of Plan

• Strategic plan is a long-term plan that makes apparent the manner on how the organization will serve customers and
position itself among competitors in the industry. Essentially, this looks as ahead to where the organization wants to be in
three, five, even ten years.

• Tactical plan is concerned with what the lower level units within each division must do, how they must do it, and who is in
charge at each level.

• Operational plan is a specific, detailed work plan that identifies how you’ll reach a specific goal or outcome; a document
that outlines the key objectives and goals of an organization and how to reach them.

• Contingency plan is a systematic way to identifying what can go wrong in a situation; it involves identifying alternative
courses of actions that can be implemented when the original plan proves a failure.

Bill Gates wasn’t kidding when he said “ If your business is not on the internet, then your business will be out of
business.”

Next page
 Activity
(Planning)

Name: ___________________________________ Score: _______________

Direction: Answer the questions below with specific and brief explanation.

1. What is the importance of Planning in a business organization?

____________________________________________________________________________________________________________
____________________________________________________________________________________________________________
____________________________________________________________________________________________________________
____________________________________________________________________________________________________________
____________________________________________________________________________________________________________
____________________________________________________________________________________________________________

2. Why is it important to have a contingency plan for a business?

__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________

Next page
 ORGANIZING
Lesson 4

Fundamentals of Organizing

Chief Executive
Officer

Human Marketing Finance Accounting Manufacturing

Resources

• Organizational Chart is a traditional picture of the positions in a firm, how they are arranged, who reports to whom, and
what the specific positions execute in the enterprise.

Differentiation and Integration

• Differentiation means that the enterprise is involved in many tasks, with diverse skills and methods.
• Integration is achieved with coordination, communication, and collaboration as it involves linking parts of the enterprise
into a whole.

Organizational Structures
Vertical Structure

• Owners of enterprises have definitive authority, which is defined as the legitimate right to make decisions and to tell other
people what to do. As shown in the organizational chart, the Chief Executive Officer (CEO) can give orders to the Human
Resources (HR). Marketing, Finance, Accounting, and Manufacturing personnel in the lower boxes.
• In a corporate setup, the authority vested to the Board of Directors in a corporation is assigned to the CEO. The
Organizational Chart shows five subordinates under the CEO. This number of subordinates who report directly to an
executive supervisor is called Span of Control
• The assignment of new or additional responsibilities to a subordinate is called delegation.
• Delegation permits critical decisions to be made at the lower levels of the organization, the term for which is called
decentralization.

Horizontal Structure

• Line functions are actions related to the principal activities of a firm, or have ultimate responsibility for the operational
decisions of the organization.
• Typical line functions include manufacturing tasks, such as design, fabrication, assembly, and distribution.
• Staff functions are specialized or professional skills that support the line departments.

Organization

• Organization is defined as having two or more individuals working toward the attainment of a goal.

Forms of Business Organizations

• Sole proprietorship is where an individual owns all the assets, is the simplest business form.
• Partnership is where association of two or more persons carry on as co-owners of a business for profit.
• Corporation is where a separate body consisting of at least five individuals is treated by law as a unit.

Next page
 Activity
(Organizing)

Name: ________________________ Score: _______

I. Direction: Encircle the letter of the correct answer.

1. A traditional picture of the positions in a firm, how they are arranged, who reports to whom, and what the specific
positions execute in the enterprise.
a. Organizational structure b. Vertical structure c. Horizontal Structure d. Organizational chart

2. When the enterprise is involved in many tasks, with diverse skills and methods this is called ____________.
a. Integration b. Differentiation c. Association d. Delegation

3. It is achieved with coordination, communication, and collaboration, as it involves linking parts of the enterprise into a
whole.
a. incorporation b. coordination c. interrelation d. integration

4. In a vertical structure of the organization, owners of the enterprise have ___________, which is defined as the
legitimate right to make decisions and to tell other people what to do.
a. definitive authority b. span of control c. delegation d. decentralization

5. In a corporate setup, the authority vested to the Board of Directors in a corporation is assigned to the CEO. Then the
number of subordinates who report directly to an executive or supervisor is called ___________.
a. definitive authority b. span of control c. delegation d. decentralization

6. In a vertical structure of the organization, the assignment of new or additional responsibilities to a subordinate is
called ____________.
a. definitive authority b. span of control c. delegation d. decentralization

7. Delegation permits critical decisions to be made at the lower levels of the organization, the term for which is called
_____________.
a. definitive authority b. span of control c. delegation d. decentralization

8. These are actions related to the principal activities of a firm, or have ultimate responsibility for the operational
decisions of the organization.
a. Line functions b. Typical line functions c. Staff functions d. Daily operations

9. The functions that include manufacturing tasks, such as design, fabrication, assembly, and distribution.
a. Lower level functions b. Line functions c. Typical line functions c. Staff functions

10. The functions that are specialized or professional skills that support the line departments.
a. Lower level functions b. Line functions c. Typical line functions c. Staff functions

II. Direction: Give what is being asked in each number.

1. Draw an organizational chart of your student organization or household relationships.

2. What is a Sole proprietorship? and give example

Next page
 LEADING
Lesson 5

What is Leading?

• Leading refers to the process of guiding and directing individuals or teams towards a common goal or objective.

Difference between Leading and Managing

• Leading involves the ability to influence, motivate, and enable others to contribute to the organization’s success.

• Managing involves the ability to control a group or group of individuals in order to achieve a specified objective.

Leadership Styles

• Democratic leadership style is where a leader makes decisions based on the input received from team members.

• Autocratic leadership is the direct opposite of democratic leadership. In this case, the leader makes all decisions on behalf
of the team without taking any input or suggestions from them.

• Laissez-faire leadership is accurately defined as a hands-off or passive approach to leadership. Instead, leaders provide
their team members with the necessary tools, information, and resources to carry out their work tasks.

• Transformational leadership is all about transforming the business or groups by inspiring team members to keep increasing
their bar and achieve what they never thought they were capable of.

• Transactional leadership is more short-term and can best be described as a “give and take” kind of transaction.

• Bureaucratic leadership is a “go by the book” type of leadership. Processes and regulations are followed according to policy
with no room for flexibility.

• Servant leadership involves a leader being a servant to the team first before being a leader.

• Coach-style leadership involves identifying and nurturing individual strengths and formulating strategies for the team to
blend and work well together, cohesively and successfully.

• Charismatic leadership employs charisma to motivate and inspire followers. Leaders use eloquent communication skills to
unite a team towards a shared vision. However, due to the charismatic leaders’ overwhelming disposition, they can see
themselves as bigger than the team and lose track of the important tasks.

• Strategic leadership leads the company’s main operations and coordinates its growth opportunities. The leader can support
multiple employee layers at the same time.

Next page
How can employees be motivated toward positive discretionary behavior?

• Maslow believes that each person is motivated by the need to fulfill unmet needs.

Maslow’s Motivational Theory

• Physiological needs are those things that keep the body alive and reasonably healthy. Examples are food, clothing and
shelter.

• Safety needs are personal security, financial security, and health and well-being, which are more fundamental than
physiological needs. For example, the deer cannot eat on the wild prairie when the wolves chase them. People need to feel
physically safe in their environment.

• Social Needs involves connections with other people and includes family, group belongingness and friendship as well as
romance.

• Self Esteem includes honest achievement, feeling adequate to face the world, confidence , independence and freedom.
Esteem from others involves reputation, respect, attention and recognition.

• Self-Actualization Needs is the highest personal aspirational human need in the hierarchy, meaning that it can only be
fulfilled when one’s physiological, safety, love, and esteem needs are already met.

Next page
 Activity
(Leading)

Name: __________________________________ Score: ________

Direction: Answer the following questions with specific and brief explanation.

1. What is the difference between leading and managing?

____________________________________________________________________________________________________________
____________________________________________________________________________________________________________
____________________________________________________________________________________________________________
____________________________________________________________________________________________________________
____________________________________________________________________________________________________________
____________________________________________________________________________________________________________

2. If you were the manager of the SM Store and you noticed that many of the employees in your company show tardiness, how
would you motivate them in order for them to change?
____________________________________________________________________________________________________________
____________________________________________________________________________________________________________
____________________________________________________________________________________________________________
____________________________________________________________________________________________________________
____________________________________________________________________________________________________________
____________________________________________________________________________________________________________

Next page
 CONTROLLING
Lesson 6

Control
• Control is defined to be any process that directs the activities of individuals toward the achievement of organizational
goals; this helps in measuring the progress towards the organizational goals and brings any deviations and indicates
corrective action.

Managerial Control
• Organizational or Managerial Control is the systematic process through which managers regulate organizational activities
to make them consistent with established expectations detailed in plans, targets, and standards of performance.

The Control Process Steps

1. Establish performance standards

2. Measure actual performance

3. Compare actual performance versus performance standards

4. Take corrective action.

5. Revise standards when necessary

• Establish performance standards

- Standards are established prior to performance. For example, students’ grades are based on their day-to-day
performance in class, such as in class recitations, tests, projects, and participation in class activities.
• Measure actual performance
- For example, students’ grades are monitored.
• Compare actual performance versus performance standards
- For example, students’ grades are compared with the passing and failing marks.
• Take corrective action
- For example, if many students receive failing marks, corrective action is probably necessary, such as changes
in teaching methods.
• Revise standards when necessary
- For example, if many students still get failing marks after the change in teaching methods is effected, the
revision in the grading system maybe be compulsory to meet student expectations.

The Control Process in Business Organization

• For example, a reward may be given to an employee who has never been late in reporting for work over a five-year period.
• A daily time record (DTR) needs to be punched in a bundy clock every time an employee comes into and gets out of the
office to determine punctuality.
• However, a five-year standard may be difficult to achieve, so a six-month to one-year period may be used instead.

Four Types of Control

• Feed Forward or Preliminary Quality Control focuses on the human, material, and financial resources that flow into an
organization.
• Concurrent Control consists on monitoring of ongoing employee activities to ensure their concurrence with established
standards.
• Feedback or Output Control focuses on the organization’s output.
• Bureaucratic Control utilizes rules, policies, hierarchy of authority, reward systems, and other formal mechanisms to
influence employee behavior and assess performance.
The 3 Main Qualities of Effective Control System

• Accurate
Information on performance must be accurate. Evaluating the accuracy of the information they receive is one of the most
important control tasks that managers face.

• Timely
Information must be collected, routed, and evaluated quickly if action is to be taken in time to produce improvements.

• Flexible
Control must have flexibility built into them so that the organizations can react quickly to overcome adverse changes or to
take advantage of new opportunities

Next page
 Activity
(Controlling)

Name: _____________________ Score: _________

Direction: Answer the following questions with specific and brief explanation

1. Why is accuracy very important in a control system?

____________________________________________________________________________________________________________
____________________________________________________________________________________________________________
____________________________________________________________________________________________________________
____________________________________________________________________________________________________________
____________________________________________________________________________________________________________
____________________________________________________________________________________________________________

2. If you were a manager, what would you do in order to control a grocery store from receiving low monthly sales?
____________________________________________________________________________________________________________
____________________________________________________________________________________________________________
____________________________________________________________________________________________________________
____________________________________________________________________________________________________________
____________________________________________________________________________________________________________
____________________________________________________________________________________________________________
____________________________________________________________________________________________________________

Next page
Sources of Information:
ABM k to 12 Curriculum Compliant Book
[Link]
[Link]
[Link]

The End