Course Material Integrated Business Principles
Course Material Integrated Business Principles
Course Material Integrated Business Principles
COURSE MATERIAL
Prepared by:
Page 1 of 21
Vocabulary List/Key Terms:
Pretest / Teaser:
Management is a universal phenomenon. It is a very popular and widely used term. Here
are some questions to answer:
What is your idea of “managing”?
Have you ever experienced managing something in your own capacity?
Do you want to become a manager? Why? What are your expectations of becoming a
manager?
What is Management?
Management is essential for an organized life and necessary to run all types of
management. Good management is the backbone of successful organizations. Managing life means
getting things done to achieve life’s objectives and managing an organization means getting things
done with and through other people to achieve its objectives.
Whether management is an art or science, will continue to be a subject of debate. However,
most management thinkers agree that some form of formal academic management background
Page 2 of 21
helps in managing successfully. Practically, all CEOs are university graduates. Hence, the reason
for including business degree programs in all academic institutions.
Management is a set of principles relating to the functions of planning, organizing,
directing and controlling, and the application of these principles in harnessing physical, financial,
human and informational resources efficiently and effectively to achieve organizational goals.
Definition of Management
Many management thinkers have defined management in their own ways.
• Van Fleet and Peterson define management, ‘as a set of activities directed at the efficient
and effective utilization of resources in the pursuit of one or more goals.’
• Megginson, Mosley and Pietri define management as ‘working with human, financial and
physical resources to achieve organizational objectives by performing the planning,
organizing, leading and controlling functions ‘.
• According to F.W. Taylor, ‘Management is an art of knowing what to do, when to do and
see that it is done in the best and cheapest way ‘.
• According to Harold Koontz, ‘Management is an art of getting things done through and
with the people in formally organized groups. It is an art of creating an environment in
which people can perform and individuals and can co-operate towards attainment of group
goals. ‘
A leader has certain inherent qualities and traits which assist him in playing a directing role
and wielding commanding influence which others. Leadership is an integral part of management
and plays a vital role in managerial operations, while management is an integral component of
technical as well as social processes.
The practice of management is as old as human civilization. However, the study of
management in a systematic and scientific way as a distinct body of knowledge is only of recent
origin.
Management in some form or another is an integral part of living and is essential wherever
human efforts are to be undertaken to achieve desired objectives. The basic ingredients of
management are always at play, whether we manage our lives or our business.
Page 3 of 21
For example, let us look at the managerial role of a simple housewife and how she uses the
managerial ingredients in managing the home. First, she appraises her household and its needs.
She forecasts the needs of the household for a period of a week or a month or longer. She takes
stock of her resources and any constraints on these resources.
She plans and organizes her resources to obtain the maximum benefits out of these resources.
She monitors and controls the household budget and expenses and other activities.
In a large household, she divides the work among other members and coordinates their
activities. She encourages and motivates them to do their best in completing their activities. She is
always in search of improve, mention goals, resources and in means to attain these goals. These
ingredients, generally, are the basic functions of management.
Evolution of Management
The concept of management is as old as the human race itself. The concept of ‘family’ itself
required that life be organized and resources of food are apportioned in a manner so as to maximize
the utility of such resources. Taking proper steps to safeguard the family from attacks by wild
animals, planning on where to go fishing and hunting and whom to go with, organizing these
groups into chiefs and hunting and fishing bands where chiefs gave directions, and so on, are all
subtle ingredients of management and organization.
A study of various people around the world shows good examples of organizational structures
and organizational evolution over the years. A village open market in a tribe and a large department
store in a modern city serves the same needs in a similar fashion, which is putting things together
that people need.
While the tribal organization was simple in nature, the modern organization is much more
sophisticated and complex with many technological innovations. However, the basic form of
management and organizational structure seem to have existed since the beginning of an organized
human activity.
Even the recorded history shows the application of some current management techniques as
far back as 5000 BC. when the ancient Sumerians used written records in assisting governmental
operations. The Egyptian pyramids, built as early as 3000 BC., required the organized efforts of
over 1,00,000 workers.
It would be natural to assume that all functions of modern management, namely, planning,
organizing, directing and controlling played a significant role in the construction of these
monuments. Similarly, the early civilization of India bears witness to organized living.
Page 4 of 21
Importance of Management
Management, as a system, is not only an essential element of an organized society but also an
integral part of life when we talk about managing our lives. Managing life is not much different
from managing an organization and this ‘art’ of management has been with us from time
immemorial. Just as a well-managed life is much better organized, goal-oriented and successful,
‘good’ management of an organization makes the difference between the success and the failure
of the organization.
Perhaps, the importance of management was highlighted by the following:
• Former President of the United States, John F. Kennedy said that, the role of
management in our society is critical in human progress. It serves to identify a great
need of our time: to improve standards of living for all people through the effective
utilization of human and material sources.
1. It helps in Achieving Group Goals - It arranges the factors of production, assembles and
organizes the resources, integrates the resources in effective manner to achieve goals. It
directs group efforts towards achievement of pre-determined goals.
Page 5 of 21
into useful enterprise. These resources are coordinated, directed and controlled in such a
manner that enterprise work towards attainment of goals.
2. Optimum Utilization of Resources - Management utilizes all the physical & human
resources productively. This leads to efficacy in management.
It makes use of experts, professional and these services leads to use of their skills,
knowledge, and proper utilization and avoids wastage. If employees and machines are
producing its maximum there is no under employment of any resources.
3. Reduces Costs - It gets maximum results through minimum input by proper planning and
by using minimum input & getting maximum output. Management uses physical, human
and financial resources in such a manner which results in best combination. This helps in
cost reduction.
With the change is external environment, the initial co-ordination of organization must be
changed. So, it adapts organization to changing demand of market/changing needs of
societies. It is responsible for growth and survival of organization.
It improves standard of living. It increases the profit which is beneficial to business and
society will get maximum output at minimum cost by creating employment opportunities
which generate income in hands. Organization comes with new products and researches
beneficial for society.
Page 6 of 21
Objectives of Management
1. Getting Maximum Results with Minimum Efforts - The main objective of management
is to secure maximum outputs with minimum efforts & resources. Management is basically
concerned with thinking & utilizing human, material & financial resources in such a
manner that would result in best combination. This combination results in reduction of
various costs.
2. Increasing the Efficiency of factors of Production - Through proper utilization of
various factors of production, their efficiency can be increased to a great extent which can
be obtained by reducing spoilage, wastages and breakage of all kinds, this in turn leads to
saving of time, effort and money which is essential for the growth & prosperity of the
enterprise.
3. Maximum Prosperity for Employer & Employees - Management ensures smooth and
coordinated functioning of the enterprise. This in turn helps in providing maximum benefits
to the employee in the shape of good working condition, suitable wage system, incentive
plans on the one hand and higher profits to the employer on the other hand.
4. Human betterment & Social Justice - Management serves as a tool for the upliftment as
well as betterment of the society. Through increased productivity & employment,
management ensures better standards of living for the society. It provides justice through
its uniform policies.
Features of Management
It is a tool which helps use of human & physical resources to fulfill the pre-determined
goals. For example, the goal of an enterprise is maximum consumer satisfaction by
producing quality goods and at reasonable prices. This can be achieved by employing
efficient persons and making better use of scarce resources.
Page 7 of 21
4. Management is all Pervasive: Management is required in all types of organizations
whether it is political, social, cultural or business because it helps and directs various efforts
towards a definite purpose. Thus clubs, hospitals, political parties, colleges, hospitals,
business firms all require management. Whenever more than one person is engaged in
working for a common goal, management is necessary.
Whether it is a small business firm which may be engaged in trading or a large firm like
Tata Iron & Steel, management is required everywhere irrespective of size or type of
activity.
Page 8 of 21
in a productive manner to achieve goals or aims and objectives of organizations and
enterprises.
Poor employment practices are inimical to the sustenance of such ventures. With
the right man in the right job, a large portion of effective business management will have
been achieved. No doubts about that.
Manpower refers to the managerial and non-managerial personnel employed in an
organization or business. Other resources cannot act by themselves and they have to be
utilized by human beings. Therefore, human resources mobilize, allocate and utilize the
physical and financial resources of an organization.
2. Materials
Materials represent the physical raw materials and intermediate products (semi-
finished goods) which are converted and/or assembled into finished products with the help
of certain processes and technology.
Without materials, human resource is made redundant. Thus, every right thinking
and right planning organization knows that materials needed for any business or service
must be in place before ‘man’ can be of use in any business activity. Supply chain
departments grew out of this thinking and has been a very useful and effective aspect of
business management. A group of cement factory workers waiting for supply of limestone
may have nothing much to do for as long as the supply does not arrive. Even if it arrives,
but in poor quality, the production is certainly doomed for a loss. Quality compromised is
business pauperized. Poor quality of materials potentially ruins entrepreneurship. This is
an indisputable fact.
3. Machines
Machines are the equipment used to process the materials into finished or semi-finished
products. Employment of modern machinery helps to reduce costs and to improve the
quality of output. Technology has therefore become an important ingredient in the efficient
management of organizations.
The metal contraptions called machines have made man fulfill almost effortlessly
various dreams of creating things that make our existence more worthwhile. Machines have
replaced man in tilling, planting, and harvesting. Man has been replaced with looms in
cotton and fabric processing. Countless other ventures requiring physical exertions of force
has been taken over by things fixed with gears, bolts and nuts and conveyor belts. Recently,
computers joined in the fray of increasing production and reduction in time spent by man
for manufacturing and general production of goods and services. However, without man
and materials, machines will be useless. They need to be operated by man and fed with
materials. That again is a doubtless fact.
Page 9 of 21
4. Minutes/Moment (Time)
Time management is one contemporary aspect of business that has been employed in
use by effective and successful business ventures to optimize delivery. As earlier noted,
lateness and absenteeism of man at work is a large chunk of time off production. Poor time
management is as ineffectual as a broken-down machine, an indisposed employee or lack
of adequate materials for production of goods or services. Various schemes have been used
by successful enterprises to ensure proper and efficient use of time by man and machine,
including timely delivery of materials, to ensure business sustainability. Compromising
time is tantamount to a business venture shooting itself in the foot. There are umpteen
instances to ascertain this truism.
5. Methods
Methods refer to the normal and prescribed ways of doing things various operations
are performed according to certain systems and procedures. Use of right methods helps to
increase efficiency of operations and contributes to effective management.
6. Money
Money is the most critical and all-purpose resource because it is used to acquire or hire
other resources. In organization, money is employed to generate more money in the form
of profits or surplus. A business firm or enterprise requires money in the form of fixed
capital and working capital.
Without money, no venture or enterprise can motivate workers, get quality and
sufficient materials, get the right machines and maintain them or even ensure that time is
properly managed. Money management, when not properly organized has been the most
known factor involved in collapse of enterprises in history. The quantity and quality of
money expended in ventures have a direct bearing on the fruitfulness of same over time.
Accounts department have been revolutionized over the years, by man, to ensure maximum
operations of surviving business organizations. Where there is not enough money, no good
workers, materials, or machines can be employed or purchased or acquired. In other words,
such a venture will be wasting its time existing in the first place.
Page 10 of 21
TYPES OF BUSINESS ORGANIZATION
Business organization is the single-most important choice you’ll make regarding your
company. What form your business adopts will affect a multitude of factors, many of which will
decide your company’s future. Aligning your goals to your business organization type is an
important step, so understanding the pros and cons of each type is crucial.
Your company’s form will affect:
• How you are taxed
• Your legal liability
• Costs of formation
• Operational costs
Disadvantages:
Page 11 of 21
A Sole Proprietorship is the most basic type of business organization in the Philippines.
It can be established by just one person, referred to as a sole proprietor. In sole
proprietorship, the personal assets of the owner are held to answer for claims against the
business since the business in a sole proprietorship is an extension of the owner. Hence,
the assets and liabilities of the business are also the assets and liabilities of the owner.
2. Partnership
A Partnership requires two or more people who agree to contribute assets, with the intent
of dividing profits among all parties involved. The partnership has a juridical personality
separate and distinct from that of each of the partners.
These come in two types: general and limited. In general partnerships, both owners invest
their money, property, labor, etc. to the business and are both 100% liable for business debts.
In other words, even if you invest a little into a general partnership, you are still potentially
responsible for all its debt. General partnerships do not require a formal agreement—
partnerships can be verbal or even implied between the two business owners.
Limited partnerships require a formal agreement between the partners. They must also file
a certificate of partnership with the state. Limited partnerships allow partners to limit their own
liability for business debts according to their portion of ownership or investment.
Types of partners:
• capitalist partner
• industrial partner
• capitalist-industrial partner
Advantages of partnerships:
• Shared resources provide more capital for the business
• Each partner shares the total profits of the company
• Similar flexibility and simple design of a proprietorship
• Inexpensive to establish a business partnership, formal or informal
• Allows pooling of skills, expertise, experience
• Valuable contribution (money, property, or industry)
• Partners share responsibilities, profit, losses, and time commitment
• Less government control than corporations
Page 12 of 21
Disadvantages:
• Each partner is 100% responsible for debts and losses
• Selling the business is difficult—requires finding new partner
• Partnership ends when any partner decides to end it
• Unlimited liability and limited life
• Difficulty of transferring ownership since this would lead to dissolution of the
partnership
• Difficulty of amassing a large amount of capital
3. Corporation
Corporations are, for tax purposes, separate entities and are considered a legal person. This
means, among other things, that the profits generated by a corporation are taxed as the “personal
income” of the company. Then, any income distributed to the shareholders as dividends or profits
are taxed again as the personal income of the owners.
Advantages of a corporation:
• Limits liability of the owner to debts or losses
• Profits and losses belong to the corporation
• Can be transferred to new owners fairly easily
• Personal assets cannot be seized to pay for business debts
Disadvantages:
• Corporate operations are costly
• Establishing a corporation is costly
• Start a corporate business requires complex paperwork
• Complicated structure
• Higher overall taxes
In the Philippines, A Corporation is comprised of many individuals (maximum of 15) who
act as a single entity to advance the interest of the corporation as a whole. Corporations formed or
organized by operation of law have the right of succession and the powers, attributes, and
properties expressly authorized by law or incidental to its existence. It may be stock or nonstock
corporations.
Stock corporations are those which have capital stock divided into shares and are
authorized to distribute to the holders of such shares, dividends, or allotments of the surplus profits
on the basis of the shares held. All other corporations are nonstock corporations.
Page 13 of 21
4. “One-Person Corporation”
A One Person Corporation, or OPC, is a special corporation with a single stockholder. The
concept was introduced in the Philippine corporate setting by Republic Act No. 11232, otherwise
known as the Revised Corporation Code of the Philippines. Only a natural person, trust or estate
can register an OPC. The incorporator, however, shall always be a natural person of legal age. The
incorporator can be the trustee, administrator or any other person exercising fiduciary duties in the
case of a trust or an estate.
An OPC combines the best characteristics of a corporation and a sole proprietorship i.e.,
limited liability and complete dominion. Unlike sole proprietorship, an OPC has a personality
distinct from the stockholder and, thus, the stockholder’s liability is limited to the amount of capital
invested.
Advantages of an OPC:
• Limited liability for business owners
• Perpetual existence
• No minimum capital requirement
• Open to foreign investors
• Complete control of the business
Disadvantages:
• Limited to natural persons, trusts, and estate
• More paper works and complexity
• Existing corporations are allowed to restructure as OPC
5. Cooperative
A Cooperative is an association of persons with a common bond of interest, who have
voluntarily joined together to achieve a lawful common social or economic end, making equitable
to contribution to the capital required and accepting a fair share of the risks and benefits of the
undertaking in accordance with universally accepted cooperative principle.
Page 14 of 21
Advantages of Cooperatives
• there are equal voting rights for members
• this structure encourages member contribution and shared responsibility
• liability for members is limited
• there is no limit on the number of members
Disadvantages:
• members have equal voting rights regardless of investment - which may not suit an
investor-driven business
• legal limits on payments of dividends on shares may not suit an investor-driven
business
Etymology of manager
The noun ‘manager’ comes from the verb ‘to manage,’ which came to the UK around 1560.
It came from Italian maneggiare ‘to handle’ or ‘to control a horse.’ The Italian word came
from the Latin noun manus ‘hand.’ The English word was also influenced by French
manège ‘horsemanship.’
What is a manager?
A manager is a person who is responsible for a part of a company, i.e., they ‘manage
‘the company. Managers may be in charge of a department and the people who work in it.
In some cases, the manager is in charge of the whole business. For example, a ‘restaurant
manager’ is in charge of the whole restaurant.
A manager is a person who exercises managerial functions primarily. They should
have the power to hire, fire, discipline, do performance appraisals, and monitor attendance.
They should also have the power to approve overtime, and authorize vacations. He or she
is the boss.
The Manager’s duties also include managing employees or a section of the
company on a day-to-day basis.
Page 15 of 21
Levels of Management
Page 16 of 21
• Top Managers are in charge of a company’s strategy. In other words, they are the stewards
of an organization’s vision and mission.
• Functional Managers are responsible for the effectiveness and efficiency of specific areas
of a company, such as marketing. They are also in charge of personnel and accounts.
• Team Managers or Supervisory Managers are in charge of subgroups of a particular
function. They may also be in charge of a group of members from different parts of the
company.
• Line Managers are in charge of the output of certain products or services. They hold
authority in a vertical chain of command, or over a particular product line. Line managers,
also known as direct managers, oversee other employees and operations of a business. They
act as a liaison between employees and upper management. They work to ensure programs
are implemented effectively in a department to help the organization meet its goals.
General Managers
General Managers are responsible for managing a revenue-producing unit, such as a
product line, business unit, or a store.
The General manager has to make decisions across different functions within that unit.
General managers typically get a bonus or commission when the unit does well.
General Managers report to their top executives and take directions from them. The top
executives explain what the company’s overall plan is. The General Manager subsequently sets
specific goals for the unit to fit in with the plan.
Page 17 of 21
SAMPLE JOB DESCRIPTION TEMPLATE FOR A MANAGER
What is a job description?
A job description template is a reusable
model that can be tailored to detail the specific
requirements, responsibilities, job duties, and skills
required to perform a role. It typically includes a list
of common daily tasks, equipment or tools used, who
the role reports to, and the overall goals of the role.
JOB DESCRIPTION
Manager
[Intro Paragraph] The most effective manager postings begin with a marketing summary of
your company. This short introduction describing what you have to offer new employees will
help you generate interest among potential candidates, get applicants excited about the prospect
of working for you, and set yourself apart from other listings.
Page 18 of 21
[Work Hours & Benefits] Put the description of your work hours and benefits in the middle
of the job posting to help keep prospective candidates reading your advertisement. Describe
standard work hours and any special working conditions that may apply like flexible hours,
work-from-home opportunities, and travel requirements. And don’t forget to include office perks
like free lunches, commuter benefits, and tuition reimbursement.
• Performance management
• Project management
• Coaching
• Supervision
• Quality management
• Results driven
• Developing budgets
• Developing standards
• Foster teamwork
• Handles pressure
• Giving feedback
---------------------------------------------------------0----------------------------------------------------------
Assessment Tasks:
1. Essay
2. Research activity
3. Reflection paper
4. Case Analysis
5. Recitation
Page 19 of 21
Rubric:
Limited information are presented Good use and selection of words Demonstrates a limited understanding of writing task
with minimal control of grammar.
Limited comprehension on the question Contains some analysis
6 The topic point was somehow touched Some information are not relevant to the topic
Uses some vague examples to support the ideas
Low level confidence Difficulty in word selection and usage Demonstrates a very limited understanding of writing
task which needs major revision.
Lack of comprehension on the question Minimal analysis to none
4 Little to no emphasis on the topic point No amount of information
Very few examples to support the ideas
Lack of information Difficulty in word selection and usage Demonstrates little or no understanding of writing task
which needs total revision
No evidence of learning outcome Minimal analysis to none
2 Information are out of the topic Little to no emphasis on the topic point.
None or with few irrelevant examples to support the
ideas
25
References:
https://www.managementstudyhq.com/management-group-art-profession.html
https://www.managementstudyhq.com/definition-categories-management.html
https://www.linkedin.com/pulse/5-ms-business-management-organising-them-effectively-
henryomoregie#:~:text=Since%20man%20became%20victorious%20in,with%2C%20or%20without%2C%
20success.&text=Failure%20awaits%20such%20business.
Page 20 of 21
https://www.rifkindpatrick.com/Blog/2015/November/The-4-Major-Business-Organization-
Forms.aspx#:~:text=There%20are%204%20main%20types,the%20scope%20of%20business%20law.
https://marketbusinessnews.com/financial-glossary/manager-definition-meaning/
https://www.thebalancecareers.com/role-and-challenges-of-a-line-manager-2275752
https://hiring.monster.com/employer-resources/job-description-templates/manager-job-description-
sample/
https://www.managementstudyguide.com/management_objectives.htm
Page 21 of 21