Manacon Nov.15 Class

8/2/2019 Manacon Nov.15 Class

1/39

MANAGEMENTCONCEPTS

Teresita Flordeliz M. Ragudo, CPA, MM-BMAssistant Professor

School of Management and Entrepreneurship

De la Salle CanlubangLeandro V. Locsin Campus

1


2/39

If a man takes no thought what is distant, He will find sorrow

near at hand. He who will not worry about what is far

off will soon find something worse than worry.

CONFUCIUS

PLANNING &STRATEGIC MANAGEMENT

2


3/39

DevelopVisionand

MissionState-ments

PerformExternal

Audit

EstablishLong-Term

Object-ives

Generate,

Evaluate,and

SelectStrategie

s

ImplementStrategies-Manage-

mentIssues

ImplementStrategies-Marketing,Finance,

Accountin

g, R&D,and MISIssues

Measure and

Evaluat

ePerform

ance

PerformInternalAudit

Strategy FormulationStrategy

ImplementationStrategy

Evaluation

Source: David, Fred R. (2009) Strategic Management Conceptsand Cases

(12thedn). Philippines: Pearson Education South Asia PTE, Ltd.


4/39

Source:

Rue, L.W., and Bars, L.L. (2009) Management Skills andApplication

(13th edn). New York: McGraw-Hill/Irwin.

ORGANIZING4


5/39

Most of us fear change. Even when our minds say change is normal, our

stomachs quiver at the prospect. But for strategists and managers today, there isno choice but change.

ROBERT WATERMAN, JR.

ORGANIZING WORK5


6/39

What is an organization?6

An organization is a group of people workingtogether in concerted or coordinated effort toattain common objectives.


7/39

What is organizing?

C

ON

C

EP

T

The process of organizing is the grouping ofactivities necessary to attain common objectivesand

the assignment of each grouping to a managerwho has the authority required to supervise thepeople performing the activities.

Thus, organizing is basically a process of division

of labor accompanied by appropriate delegation ofauthority.

Proper organizing results in more effective use ofresources.

7


8/39

How is organizing done?

A

P

P

L

I

C

A

TI

O

N

Home Depot began as a three-storestart-up in 1979 and grew to a $45billion chain by 2000, making it

Americas fastest growing retailer over

that time period. In early 2000, HomeDepot hired Bob Nardelli from GE as

CEO following the retirement ofcofounders Bernie Marcus and ArthurBlank. Mr. Nardelli was selected tobring GE-style discipline and focus to

Home Depots management team.

8


9/39

How is organizing done?

A

P

P

L

I

C

A

TI

O

N

Over the next six years, Mr. Nardelliimplemented centralization policies tomake the company more efficient and

hence to save money. These policiesoften limited employees ability to makedecisions. Home Depot also hired moreand more part-timers. While Mr. Nardelliscentralization policies and part-timeemployees did save money, they alsoeroded the employees entrepreneurialspirit and had a negative impact oncustomer service. Mr. Nardelli resigned

amid pressure from stockholders in late

9


10/39

Organizing Work CaseAnalysis

How might takingaway employees

authority for makingdecisions have anegative impact onthe organization?

Suppose you are incharge of building ahomecoming displayfor your school with10 volunteers. Howwould you organizethem?

ANALYZING MANAGEMENT

SKILLS

APPLYING MANAGEMENT

SKILLS

10


11/39

ORGANIZING A HOMECOMING DISPLAY

11

1. First, meet with the person who has given you the assignment (was it the Dean, Coordinator of Student Affairs, thechancellor?). Ask for details like what would be the theme of the display, what are the things to put on display?

2. Second, meet with your group discuss with them the details, the expectations of the school management and what thingsneed to be done to come up to the expectations.

3. Then form groups, related or similar tasks and pooled in one group.

4. Ask who want to take charge of something. The volunteers are expected to handle tasks wherein they have a backgroundor at least a basic knowledge about. This is a democratic way of delegating the task among the volunteers.

5. Ask the groups to appoint their respective leaders.

6. Instruct the groups to lay-out a detailed plan of their activities including the resources needed to carry out the tasks.

7. Review their plan of action and if they are all in line with the instruction of the school management, make sure that eachtask is well understood by everybody, then instruct to proceed if ok.

8. All tasks must be time-bound. Monitor closely the progress of each group. If there are problems help them resolve thesituation or much better yet consult the school management for guidance

9. Should you have additional instructions to the group, your instructions should be given through the leaders. Do not godirect to the members of the group. In this sense you are observing the lines of authority. If you want the group leaders tobe responsible, then authority must also go with it. Say there is somebody in the group that is not doing his assignment ofrefusing to follow instruction, allow the group leader to handle it first, then if the situation is not resolved, talk to the groupleader, help him or her determine whats the best thing to do to handle the situation and if he/she tells you that he cant

handle it anymore, then ask for his permission for you to come into the picture.

10. Conduct meetings regularly, say every Monday of each week and when the event is too close, meet with the leaders everytwo to three days- to make sure that things are falling right into their places.

11. After the event, conduct a debriefing/evaluation. Discuss the event, identify the problems, flaws encountered related toyour assignment, if there were any. And try to resolve as if the the next homecoming will be forthcoming and you will stillbe the one to handle the homecoming display. And of course commend, praise, give a pat on the back to all whoperformed well and encourage those who didnt fair well enough. Avoid pointing fingers at who did it bad. Remember, to

those who are open minded and humble, there are always room for improvement.

12. If there failures, you have to accept the blame or own up responsibility to your boss, on the other hand, you do not own all

the praises, recognize the contributions of your people.

13. And if the school requires it, make a report on your assignment and offer recommendations on how to do it much better


12/39

ORGANIZING CONCEPTS

1. To establish linesof authority.

2. To attain synergy.

3. To improvecommunication.

1. VERTICAL- tall Authority and flow of

communication arethrough channelsusually severallayers within theorganization.

2. HORIZONTAL-flat Based on

specialization ofwork.

REASONS FOR ORGANIZING DIVISION OF LABOR

12


13/39

ORGANIZING CONCEPTS

JOB SCOPE

Refers to the number

of different types ofoperationsperformed on the

job

JOB DEPTH

Refers to the freedom

of employees toplan and organizetheir own work, workat their own pace,

and move aroundand communicateas desired.

13


14/39

ORGANIZING CONCEPTS

POWER

AUTHORITY

RESPONSIBILITY

Power is the ability to influence,command, or apply force.

Authority is power derived from

the rights that come with a positionand represents the legitimateexercise of power.

Responsibility is accountability forthe attainment of objectives, theuse of resources, and theadherence to organizational policy.

14


15/39

PRINCIPLES BASED ONAUTHORITY

DELEGATION

PARITYPRINCIPLE

EXCEPTIONPRINCIPLE

Delegation refers to the assigning ofauthority from one person to another.

The Parity principle states thatauthority and responsibility mustcoincide.

The exception principle (also known as

management by exception) states thatmanagers should concentrate theirefforts on matters that deviatesignificantly from normal and letsubordinates handle routine matters.

15


16/39

STEPS IN THE DELEGATION PROCESS

1. Analyze how you spend your time.

2. Decide which tasks can be assigned.

3.

Decide who can handle the task.4. Delegate the authority.

5. Create an obligation (responsibility).

6. Control the delegation

16


17/39

PRINCIPLES BASED ONAUTHORITY

UNITY OFCOMMAND

SCALARPRINCIPLE

SPAN OFMANAGEMENT

The Unity of Command Principlestatesthat an employee should have one, andonly one, immediate manager.

The Scalar Principle(chain of command)states that authority in the organizationflows through the chain of managers onelink at a time, ranging from the highest to

the lowest rank. The Span of Management(also called

the span of control) refers to the numberof subordinates a manager can

effectively manage.

17


18/39

18

FACTORS AFFECTING THE SPAN OFMANAGEMENT

FACTOR DESCRIPTION RELATIONSHIP TO

SPAN OF

CONTROL

Complexity Job scope, Jobdepth

Shortens span ofcontrol

Variety Number of differenttypes of jobs beingmanaged

Shortens span ofcontrol

Proximity Physical dispersion

of jobs beingmanaged

Lengthens span of

control

Quality ofsubordinates

General quality ofsubordinates beingmanaged

Lengthens span ofcontrol

Quality of manager Ability to perform Lengthens span of


19/39

Centralization versusDecentralization

Little authority isdelegated to lower

levels ofmanagement.

A great deal ofauthority is delegatedto lower levels ofmanagement.

The trend in todaysorganizations is toward moredecentralization.

Decentralization has thefollowing advantages:

i. allows more flexibility andquicker action,

ii. relieves executives fromtime-consuming detailwork, and

iii. results in higher morale byallowing lower levels ofmanagement actively

involved in the decision-making process.

19

CENTRALIZATION TODAYs TREND

DECENTRALIZATION


20/39

Centralization versusDecentralization

Potential loss of

control, Duplication of effort,

Higher

organizational cost, Established rules

may be bypassed.

Empowerment is a

form ofdecentralization thatinvolves givingsubordinates

substantial authorityto make decisions.

20

DISADVATAGES IN

DECENTRALIZATION

EMPOWERMEN

T


21/39

21

SCOPEOF

AUTHORI

TY

SCOPEOFAUTHORI

TY

PRESIDENT

BOARD OFDIRECTOR

S

VICEPRESIDEN

T

GENERALMANAGER

SUPERVISOR

EMPLOYEE

CENTRALIZED DECENTRALIZED


22/39

ELEMENTS OFEMPOWERMENT

Employees must beactively and willingly

engaged in their respectivejobs.

Employees must be givenpermission andencouragement toinnovate and not do thingsthe way they have alwaysbeen done.

Employees at every levelin the organization should

make decisions about whatkind of information theyneed to perform their job.

Employees must be heldaccountable for theiractions and the resultsachieved.

22

PARTICIPATIONACCESS TO

INFORMATION

INNOVATION

ACCOUNTABILITY


23/39

Other Trends in Organizations

- self-directed or self-regulatedwork teams,

- work units without a frontlinemanager,

- empowered to control theirown work,

- accomplish tasks within theirarea of responsibility withoutdirect supervision.

- A relatively new conceptwhereby two more part-timeemployees perform a job thatwould normally be held by

one full-time employee.

- allows employees to vary thehours worked each day aslong as they meet somespecific total, which is usually

40 hours per week.

- is the practice of working athome, being able to interactwith the office while traveling,or working at a satellite office.

23

Self-Managed WorkTeams FLEXTIME

TELECOMMUTING

JOB SHARING


24/39

SKILL-BUILDING EXERCISE24

Recently you have noticed that one of the staffmembers on the same level as your boss has beengiving you a hard time concerning your reports yousubmit to her. Having reviewed recent reports, you

have discovered few minor errors you should havecaught; but in your opinion, they are not significantenough to warrant the kind of criticism youve beenreceiving. Your boss and this particular manager havea history of bad relations, which may be one reason

for her attitude and actions.

As you think about how to best handle the situation,you consider these alternatives:


25/39

SKILL-BUILDING EXERCISE25

1. Talk to he manager in private and ask her why she is being socritical.

2. Do nothing. It is probably a temporary situation; to bring undueattention to it will only make matters worse.

3. Work harder to upgrade the reports; make sure there will be

nothing to criticize in the future. 4. Discuss it with your boss, but minimize or downplay the situation

by letting her know that you believe constructive criticism of thistype is usually healthy.

Other alternatives may be open to you, but assume these are the onlyones you have considered.

a. Without discussion with anyone, decide which of theseapproaches you would take now. Defend your choice.

b. What principle of organization most closely relates to thissituation?

c. To what extent do you think this is an organizing problem asopposed to a personality problem?


26/39

9 NOV. 2011

END OF CHAPTER 826


27/39

CHAPTER 8 ORGANIZING WORK

REVIEW QUESTIONS27


28/39

Source:

Rodriguez, R.A. and Echanis, E.S.2001.FUNDAMENTALS OF MANAGEMENT-TEXT &

PHILIPPINE CASES. Mandaluyong: Diwata Publishing, Inc.

HIERARCHIES IN ANORGANIZATION

28

15 November 2011


29/39

ORGANIZING29

Organizing is a necessary and important function of management.Except for the simplest tasks, most human undertakings such asrunning a business, a school, a hospital or a government bureauinvolves the conduct of many and varied sub-activities needed toaccomplish its objective.

Running a business, for example, usually involves such activities aspurchasing, selling, accounting, advertising, besides the basicproduction activities.

All such activities usually cannot be undertaken by one person,hence, it is necessary to subdivide these activities into work unitsthat may be performed by individuals or groups of individuals, andsubsequently to coordinate these activities together in some way.

This is the function of organizing. Organizing has been defined asthe process of identifying activities needed to accomplish a goal,subdividing and grouping these activities into meaningful units, and

assigning authority and responsibility to people for theiraccomplishment.


30/39

FORMAL ORGANIZATIONSTRUCTURES

30

In most large institutions, the subdivision andgrouping of the activities is done in a way which isboth explicit and stable over time.

This gives rise to formal organization structureswhich are usually depicted through organizationalcharts or table of organization.

In many organizations, such organizational charts

are usually supplemented by various otherdocuments detailing the job responsibilities of thevarious positions, and the relationships of thesepositions to others.


31/39

THE VALUE OF FORMALORGANIZATION STRUCTURES

A formal organization offers manyadvantages, especially to largeorganizations. These includemainly:

1. efficiency gains fromspecialization;

2. order arising from the clarity ofjob definitions;

3. reduction of unintended gapsor overlaps in the conduct of theactivities of the institution.

Organizations are usuallymultilayered or hierarchicalbecause of the limitations of asingle persons ability tosupervise others.

In the military for example, anarmy general has thousands ofsoldiers under his command, willnot be able to effectively overseethe activities of such a largenumber of people directly.

Thus, the soldiers are firstgrouped into squads headed bysquad leaders, and the squadsare in turn grouped into platoonsheaded by platoon leaders.

Platoons are grouped into

companies, which are headed bycompany commanders, whichcompanies are organized intobattalions, and so forth.

31

HIERARCHY IN THE


32/39

32

HIERARCHY IN THEMILITARY

BATTALIONCOMMAND

ER

COMPANYCOMMAND

ER

PLATOON

LEADER

COMPANYCOMMAND

ER

COMPANYCOMMAND

ER

SQUAD

LEADER

PLATOON

LEADER

PLATOON

LEADER

PLATOON

LEADER

PLATOON

LEADER

SQUAD

LEADER

SQUAD

LEADER

SQUAD

LEADER

SQUAD

LEADER

SQUAD

LEADER

SQUAD

LEADER

FOOTSOLDIER

S

FOOTSOLDIER

S

FOOTSOLDIER

S

FOOTSOLDIER

S

GROUPING IN AN


33/39

GROUPING IN ANORGANIZATION

The different activities inan organization arecommonly groupedtogether on thefollowing bases:

1. Function,

2. Product,3. Area or territory,

4. Client served, and5. Other bases such as

time or simplenumbers

Grouping by Function Most common method

in grouping of activitiessuch as:

1. marketing,2. production,3. Finance,

4. Personnel.

This groupingpromotesspecialization aim toattain efficiency.

33


34/39

34

A FUNCTIONAL ORGANIZATION

PRESIDENT &GENERALMANAGER

VP-FINANCE

VP-RESEARC

H

VP-MARKETIN

G

VP-PRODUCTI

ON

VP-EXTERNAL AFFAIRS


35/39

TABLE OF ORGANIZATION

ORGANIZING BYPRODUCT

ORGANIZING BYCUSTOMER

35

General

Manager

AnimalFeeds

Division

PoultryDivisio

n

FlourDivision

Store

Manager

MetroManilaBranch

Southern LuzonBranch

NorthernLuzonBranch


36/39

TABLE OF ORGANIZATION

ORGANIZING BY GEOGRAPHIC AREA

36

GeneralManager

MetroManilaBranch

SouthernLuzonBranch

VisayasBranch

NorthernLuzonBranch

MindanaoBranch


37/39

ORGANIZING THROUGHCOMBINATION OF VARIOUS CRITERIA

37

PRESIDENT

PRODUCT

B

PRODUCT

CPRODUCT A

FINANCEMARKETIN

GPRODUCTI

ON

LUZONPLANT

VIZ-MINPLANT

CONSUMER SALES

INDUSTRIAL SALES


38/39

MATRIX ORGANIZATION38

PRESIDENT

Manager of

Production

Manager of

Engineering

Manager of

Finance

Manager of

Personnel

Manager of

Projects

ProjectManager

1

ProjectManager

2

Engine-

eringGroup

Engine-

eringGroup

Personnel

Group

Personnel

Group

Finance &

Acctg.Group

Finance &

Acctg.Group

Production

Group

Production

Group


39/39

MATRIX ORGANIZATION

This form of organizationwas pioneered in theAmerican aerospaceindustries but has sincefound applications in the

more traditionalindustries as well.

A matrix structured iscreated when a project

or product structure issuperimposed acrossseveral functionaldepartments, resulting indual reportingrelationships for the

l i l d

In the matrix organization, theengineering, production, finance,and personnel groups are underthe supervision of, and reportingto, their respective functionalsuperiors i.e., the Engineering,Production, Finance, andPersonnel managers.

At the same time, however, thegroups from each functional

department are combined withgroups from other departmentsto form teams (the horizontalstructure) which are under thesupervision of a project manager.

Th lti t t

39

Documents

Manacon Nov.15 Class