CHAPTER 1

ORGANIZATIONS AND
MANAGEMENT

An Introduction
 INTRODUCTORY CASE
R.E. CONSTRUCTION: IT’S NOW or NEVER
 When Engr. Romeo Estabillo finished his Civil
Engineering course at Mapua Institute of Technology,
he took the board examination and passed it in 1981.
Wanting to start independently, he went back to his
hometown (Santiago City) to organize his own
construction firm. In his first few years of operation,
he accepted contracts for the construction of
residential houses. As he gained experiences, his
clients grew in number, and even the most prominent
persons in Province of lsabela availed of his services.
Continuation….
 At the start, he hired two assistants to help him in his
daily routine as a contractor. One of the two assistants,
Mr. Silvino Santiago, was a third year civil engineering
student who had stopped schooling due to financial
difficulties. His task was as draftsman. His duty was to
produce all documents relating to physical requirements
of the various contracts entered into by boss. Among the
documents are the building plan, specifications, bill of
materials, building permit, etc. His additional duty was to
assist Engineer Estabillo in supervising the foremen and
workers at the various construction sites
Continuation…
 The second assistant, Mr. Romulo Mamaril, was
assigned to coordinate purchasing, bookkeeping,
and other related administrative activities.
 At the third year of operations, Engr. Estabillo was
already directing operations in his newly
constructed office inside his residential compound.
By this time, two more female employees were
hired to assist in the various tasks performed in the
office
Continuation….
 By 1994, Engr. Estabillo reviewed his company’s
payroll. It indicated that he has six full-time civil
engineers, two draftsmen, ten administrative
personnel, one messenger, and one security guard.
The foremen and laborers working at the various
projects were contractual
Continuation…
 By June, 1996, Engr. Estabillo felt that business was
continuously growing, so he will have to secure the
services of four additional civil engineers on a full-
time basis. As he was directly supervising all
operations, he now feels that he may not be able to
perform his functions effectively if he will push
through with the plan. He wants to make a decision,
but he is apprehensive. He thinks operations are now
more complex. With this thought, he pondered on
how he will go about solving the problem.
Word for thought:

“Smart people and

smart companies
create their own futures”
Excerpted from Fast Magazines
Organization/s:
 collection of
people working
together to achieve Distinct Deliberate
a common purpose. Purpose Structure
Based on this
definition, an
organization has People
the following
characteristics:
 Distinct purpose
- goal or set of goals that it hopes to accomplish
- Goal: to produce goods and/or render service
 People
- group of individuals working together with the
same goal
 Structure
- policies, guidelines, regulations etc. that defines
member’s work relationships.
 TRADITIONAL ORGANIZATION VS.
CONTEMPORARY ORGANIZATION

Traditional Organization Contemporary Organization

 Stable  Dynamic
 Inflexible  Flexible
 Job-focused  Skills-focused
 Work is defined by job positions  Work is defined in terms of tasks to be
 Individual oriented done
 Permanent jobs  Team oriented
 Command oriented  Temporary jobs
 Managers always make decisions  Involvement oriented
 Rule oriented  Employees participate in decision
 Relatively homogeneous workforce making
 Workdays defined as 9 to 5  Customer oriented
 Hierarchical relationships  Diverse workforce
 Work at organizational facility during  Workdays have no time boundaries
specific hours  Lateral and networked relationships
 Work anywhere, anytime
WHAT IS MANAGEMENT?
Management:
- Process of reaching organizational goals by working
with and through people and other organizational
resources. Hence, it has the following three main
characteristics:
1. It is a process or series of continuing and related
activities.
2. It involves and concentrates on reaching
organizational goals
3. It reaches these goals by working with and through
people and other organizational resources.
As managers use their resources, they must
strive to be both effective and efficient.
  Managerial Effectiveness refers to management
use of organizational resources in meeting
organizational goals. It is often described as “doing
the right things” – that is doing those work activities
that will help organization reach its goals.
  Managerial Efficiency is the degree to which
organizational resources contribute to productivity.
It refers to getting the most output from the least
amount of inputs.
Efficiency and Effectiveness in Management

Efficiency Effectiveness
(Means) (Ends)

Resource Usage Goal Attainment

Low Wastage High Attainment

Management Strives for:

Low Resource Waste (high efficiency)
High Goal Attainment (high effectiveness
 Effectiveness vs Efficiency
Efficient
(most resources Not reaching goals Reaching goals and
contribute to and not wasting not wasting
production) resources resources
Inefficient
RESOURCE USE

(few resources Not reaching goals Reaching goals and

contribute to and wasting resources wasting resources
production0
Ineffective Effective
(little progress toward (substantial progress
organizational goals) toward
organizational goals)

G O A L AT TA I N M E N T
 The Universality of Management
 Management is universally
needed in all organizations. All Sizes of Organizations
Organizations that are well
Small Large
managed develop a loyal
customer base, grow and
prosper.
 By studying management, one
will be able to recognize poor All organizational Areas
All types of organizations
management and work to get it Manufacturing – Marketing Management is
Human Resources – Accounting needed in
corrected. Information Systems – etc.
Profit Non-Profit
 In addition, one will be able to
recognize good management
and encourage it, whether it is
an organization with which one
All organizational Levels
is simply interacting or whether
it is an organization in which Bottom Top
one is employed.
WHO ARE MANAGERS?

Manager:
-is someone who coordinates and oversees the
work of other people so that organizational goals
can be accomplished. Serving in positions with a
wide variety of titles, they mobilize people and
resources to accomplish the work of
organizations and their subunits.

A manager’s job is not about personal achievement –

it’s about helping others do their work
Types of Manager in a traditionally structured
organization
To
President
p
CEO, COO M
VP’s
an Divisionl/ Regional
ag Head/Plant Manager
Middle
ers
Supervisor
Team Leader
Managers
Line Manager

First-Line Managers Worker

Operators
Laborer

Non-managerial Employees
Upside-down view of organization

CUSTOMERS & CLIENTS

Ultimate beneficiaries of the organization’s effort

serve

OPERATING WORKERS Client/Customer is

Do the work directly affecting customer/client satisfaction
at the top of the
organization which
support signify that the
company values
TEAM LEADERS
Helps the operating workers do their jobs
them first and
foremost
and solve problems

support

TOP MANAGERS
Keep org’n. mission
& vision clear
WHAT DO MANAGERS DO?
 Describing what managers do isn’t easy
or simple. Just as no two organizations
are alike, no two managers’ jobs are
alike. Despite this fact, management
researchers have, after many years of
study, developed three specific
categorization schemes to describe what
manager do: functions, roles and skills
Management Functions
Planning – defining goals, PLANNING
Setting performance

establishing strategy and objectives and deciding how

to achieve them

developing plans to integrate and

coordinate activities.
Organizing – determining what
needs to be done, how it will be CONTROLLING ORGANIZING

done and who is to do it. Measuring performance and

taking corrective action to
ensure results
THE MANAGEMENT
PROCESS
Arranging tasks, people and
other resources to
accomplish the work

Influencing – motivating,
leading and any other actions
involved in dealing with people.
Controlling – monitoring INFLUENCING
Inspiring people to work hard

activities to ensure that they are

to achieve high performance

accomplished as planned
Management Roles
 refers to specific categories of managerial behavior. (think of the
different roles you play – student, employee, student group member,
sibling and so forth – and the different behaviors you’ve expected to play
in these roles).

Mintzberg’s Managerial Roles:

 Interpersonal roles – involve people (subordinates and persons outside

the organization) and other duties that are ceremonial and symbolic in
nature
 Informational roles – involve collecting, receiving and disseminating

information
  Decisional roles – entail making decisions or choices; involve using

information to make decisions to solve problems or address opportunities

 Mintzberg’s Managerial Roles
Role Description Examples of Identifiable
Activities
Interpersonal
Figurehead Symbolic head; obliged to perform a Greeting visitors; signing
number of routine duties of a legal legal documents
or social nature.
Leader Responsible for the motivation of Performing virtually all
subordinates; staffing, training, and activities that involve
associated duties. subordinates
Liaison Maintains self develop network of Acknowledging mail; doing
outside contacts and informers who external board work;
provide favors and information. performing other activities
that involve outsiders
Negotiator Responsible for representing the Participating in union
organization at major negotiations contract negotiations
 Continuation…..

Informational
Monitor Seeks and receives wide variety of Reading periodicals and
internal and external information to reports; maintaining
develop thorough understanding of personal contacts
organization and environment.
Disseminator Transmit information received from Holding informational
outsiders or from subordinates to meetings; making phone
members of the organization. calls to relay information
Spokesperson Transmits information to outsiders Holding board meeting;
on organization’s plans, policies, giving information to the
actions, results, etc. media
 Continuation….
Decisional
Entrepreneur Searches organization and its Organizing strategy and
environment for opportunities and review sessions to develop
initiates “improvement projects” to new programs
bring about changes.
Disturbance Responsible for corrective action Organizing strategy and
Handler when organization faces important, review sessions that involve
unexpected disturbances. disturbances and crises
Resource Responsible for the allocation of Scheduling; requesting
Allocator organizational resources of all kinds authorization; performing
– making or approving all significant any activity that involves
organizational decisions budgeting and the
programming of
subordinates’ work
Management Skills
 A skill is an ability to translate knowledge into
action that results in desired performance.
 The most important managerial skills are those that
allow managers to help other become more
productive in their work. Robert L. Katz
concluded that managers needed the following
three essential skills:
Continuation…
 Technical Skill – job-specific knowledge and
techniques needed to proficiently perform specific
tasks; expertise that could initially be acquired
through formal education and are further developed
by training and job experience. These skills tend to
be more important for lower level of managers
because they typically are managing employees
who are using tools and techniques to produce
organization’s products or service the organization’s
customers.
Continuation….
 Human Skill – ability to work well with other people
individually and in a group. It emerges in the workplace as
a spirit of trust, enthusiasm and genuine involvement in
interpersonal relationships. These skills are consistently
important across all levels of management because
managers deal directly with people. Manager with good
human skills are able to get the best out of their people.
They know how to communicate, motivate, lead and inspire
enthusiasm and trust. A manager with good human skills
will have a high degree of self-awareness and a capacity to
understand or empathize with the feelings of others
Continuation….
 Conceptual Skill – ability to think and formulate
(conceptualize) about abstract and complex situations; it
involves the ability to break down problems into smaller
parts, to see and analyze the relations between parts and
to recognize the implications of any one problem for
other to solve complex problems. Using these skills
managers must see the organization as a whole,
understanding the relationships among various subunits
and visualize how organization fits into broader
environment. These skills are most important at the top
management level.
 AMA Managerial Skills
Conceptual Skills
 Ability to use information to solve business
problems
 Identification of opportunities for innovation
 Recognizing problem areas and implementing
solutions
 Selecting critical information from masses of data
 Understanding of business uses of technology
 Understanding of organization’s business model
 AMA Managerial Skills…..

Communication Skills
 Ability to transform ideas into words and actions
 Credibility among colleagues, peers and subordinates
 Listening and asking questions
 Presentation skills; spoken format
 Presentation skills; written and/or graphic formats
AMA Managerial Skills…..
Effectiveness Skills
 Contributing to corporate mission/departmental objectives
 Customer focus
 Multi-tasking: working at multiple tasks in parallel
 Negotiating skills
 Project management
 Reviewing operations and implementing improvements
 Setting and maintaining performance standards internally
and externally
 Setting priorities for attention and activity
 Time management
AMA Managerial Skills…..

Interpersonal Skills
 Coaching and mentoring skills
 Diversity skills: working with diverse people and
cultures
 Networking within the organization
 Networking outside the organization
 Working in teams; cooperation and commitment
Thought to ponder…
 In today’s demanding and dynamic workplace,
employees who want to be a valuable assets to an
organization must be willing to constantly upgrade
their skills and take on extra work outside their
own specific job area. There’s no doubt that skills
will continue be an important way of describing
what a manager does. .
 HOW THE MANAGER’S JOB IS CHANGING?

CHANGES IMPACT OF
CHANGES

 Managers have
always had to
Shifting organizational
boundaries
Changing Technology Virtual workplaces
(Digitization) More mobile workforce

deal with changes Flexible work arrangements

Empowered employees

taking place Risk management

inside and outside Increased Security Threats

Work life – personal life balance
Restructured workplace
Discrimination concerns

their organization.
Globalization concerns
Employee assistance

Increased emphasis on Redefined values

Organizational and Rebuilding trust
Managerial Ethics Increased accountability

Customer service
Increased Innovation
Competitiveness Globalization
Efficiency/productivity
Current Trends and Issues
 GLOBALIZATION
- Working with people from different cultures
- Coping with anti-capitalist backlash
- Movement of jobs to countries with low cost labor
 ETHICS AND SOCIAL RESPONSIBILITY
- concerns for the environment, ethical and social
responsibility issues, behavior of employees and the
changing needs of an increasingly global economy
Continuation….
 WORKFORCE DIVERSITY
- a worker force that is heterogeneous in terms of
gender, race, ethnicity, age and other characteristics
that reflect differences
 EMPLOYMENT VALUES AND HUMAN
RIGHTS
- employees’ right to privacy, due process
protection against job discrimination and freedom
from sexual harassment
Continuation…
 INFORMATION AND TECHNOLOGICAL
CHANGE
- impact of emerging information and computer
technology and the age of “knowledge worker”
 CAREERS AND CAREER PORTFOLIOS
- “portfolio of skills” that must be up-to-date and
valuable to potential employers
The Reality of Work
 Another reason for studying management is the reality that
for most of us, once we graduate from college and begin
our career, one will either manage or be managed. For
those who plan to be managers, an understanding of the
management process forms the foundations upon which to
build your management skills. On the other hand, for those
of us who don’t see himself managing, one is likely to have
to work with managers. Also, assuming that we will have
to work for a living and recognizing that we are very likely
to work in an organization, one probably have some
managerial responsibilities even if one is not a manager.
 Reward and Challenges of Being a Manager

Rewards Challenges
 Create a work environment in which  Do hard work
organizational members can work to the  May have duties that are more clerical than
best of their ability managerial
 Have opportunities to think creatively and  Have to deal with a variety of personalities
use imagination  Often have to make do with limited
 Help others find meaning and fulfillment in resources
work  Motivate workers in chaotic and uncertain
 Support, coach and nurture others situations
 Work with a variety of people  Successfully blend knowledge, skills,
 Receive recognition and status in ambitions and experiences of a diverse
organization and community work group
 Play a role in influencing organizational  Success depends on others’ work
outcomes performance.
 Receive appropriate compensation in form
of salaries, bonuses and stock options
 Good managers are need by organizations
 Managers often may have to deal with a variety of
personalities and often have to make to with
limited resources. It can be a challenge to motivate
workers in the face of uncertainty and chaos.
Managers may find it difficult to effectively blend
the knowledge, skills, ambitions and experiences of
a diverse work group.
 Finally, as a manager, you’re not in full control of
your destiny. Your success typically is dependent
upon, others’ work performance.
Becoming a Manager:
 Keep up with current business news.
 Read books about good and bad examples of managing.
 Remember that one of the things good managers do is to discover what
is unique about each person and capitalize on it.
 Keep in mind the simple advice that “management is about people”
from Peter Drucker.
 Work on your “soft” skills – work ethics, communications, information
gathering and people skills. These are what employers cite as the most
important factors for getting jobs.
 Observe managers and how they handle people and situations.
 Talk to actual managers about their experiences – good and bad.
 Get experience in managing by taking on leadership roles in student
organizations
 Start thinking about whether you’d enjoy being a manager.