OrgMan 12

 management is a discipline that

consists of a set of five general
functions: planning, organizing,
1 s t Semester
staffing, leading and controlling.  
 These five functions are part of a
Course Description  body of practices and theories on
 Designed to expose learners to the basic how to be a successful manager.  
concepts, principles, and processes related  Understanding the functions will
to business organization, and the help managers focus efforts on
functional areas of management  activities that gain results. 
 It will give emphasis to the study of
management functions like planning,
III. Planning:  Goals, Objectives, Strategic
organizing, leading, and controlling, and or
Plans
Kent learners on the importance and roles
 Done by top and middle managers
of these functions in entrepreneurship 
 process of setting objectives and
choosing appropriate goals and
Subject Matters  actions to pursue  
 Nature and Concept of Management   think of ways to achieve them,
 The Firm and its Environment  determining what strategies to use,
 Planning  what actions to take, and deciding
 Organizing  what resources are needed to
achieve the goals. 

Week 1 IV. Organizing:  Allocate resources,

Nature and Concept of Management Structure, Chain of Demand
1) Discuss the meaning and functions of  Assigning tasks, allocating
management resources, and coordinating
2) Explain the functions, roles, and skills of a activities, supporting ang
manager motivating the people.
3) Explain the various types of management  process of establishing worker
theories relationships  
 allows workers to work together to
I. Management achieve their organizational goals. 
 Ensures optimal employee output  To create structures
 humans are considered to the most 1. Divide the work
complicated assets to manage 2. Arrange resources
 managers use different theories to 3. Coordinate activities
manage humans
 coordination and administration of V. Leading:  motivate, leadership by
tasks to achieve a goal. example, communicate
 “It is the act of getting things done  Talking to people; leadership by
through others and having them do it example
willingly”.  Arousing people’s enthusiasm and
 It is a difficult art, not a science, like inspiring their efforts to work hard
the computer business or to fulfill plans and accomplish
manufacturing. objectives.
 involves articulating a vision,
II. Functions of Management energizing employees, inspiring
Management Process and motivating people using
 vision, influence, persuasion, and 3 Main Types of roles all Managers
effective communication skills.  play:  Mintzberg’s

VI. Controlling:  standards, measurements, 1. Decisional

monitor, oversee use of resources - Nature of Role:
 SET STANDARDS (Aligned with  Arising from a manager’s formal
VMOs)  Measuring work authority and access to
performance, comparing results to information, which places him in
objectives, and taking corrective the best position to solve problems
action if needed. relating to the unit or department
 Interpret results  constructive as a whole
changes  plans don’t always go  perform in an entrepreneurial
as anticipated  modify plans and manner, as a disturbance handler,
redefine to fit into new resource allocator or negotiator. 
circumstances - Role Definition:
 Evaluate how well you are  Entrepreneur: Initiating action to
achieving your goals, improving exploit opportunities
performance, taking actions.    Disturbance Handler: responding
 Put processes in place to help you to threats and pressures, taking
establish standards, so you can corrective action
measure, compare, and make  Resource Allocator: distributing
decisions.  limited resources where they will
 Ensure results be most effective
 Negotiator: resolving conflicts and
VII. Staffing:  securing favorable outcomes in
 Manpower planning, recruitment, matters involving others
selection, placement, and training.
 Recruiting and selecting 2. Interpersonal
employees for positions within the - Nature of Role:
 Arising from a manager’s formal
company (within teams and
authority or position in organization
departments). 
and unit
 may be figureheads, leaders, and
VIII. Types of Managers liaisons. 
- Organizational structure is important - Role Definition:
in driving the business forward and  Figurehead: a ceremonial role,
representing the organization in
every organization has a structure 
public
- Above the top management team are  Leader: hiring, supervising,
a CEO and a board of director developing, motivating, team
levels.   building and so on
- The more you move toward the top  Liaison: networking and
of the pyramid, the fewer managers coordinating with peers in other
you have. All of these management units or functions
roles have specific tasks and duties. 
3. Informational
-  “A managerial role is the set of - Nature of Role
specific tasks that a manager is  Arising from a manager’s access to
expected to perform because of the internal and external contacts
position he or she holds in an  monitor are disseminators or
organization.”   spokespersons, and they share
information. 
- Role Definition  Coordinate activities, relay with
 Monitor: gathering information middle managements; Executes the
 Spokesperson: giving information plans of middle managements -
on behalf of the unit or organization implement plans, policies and
 Disseminator: sharing information procedures
with relevant stakeholders or  Guide non-management employees
interested parties  In charge of day to day operations
 Supervise, control, and monitor the
IX. Roles of Managers activities
 Listen to employee grievances
a. Top  Troubleshoot problems
 Set objectives, Scan Environment  AA: Class Advisers
 VMOs
 In-charge of general and Strategic X. Skills of Managers:
plans (3-5 years)
 Long term concerns; 1. Conceptual
 Organizations stability (focused
 Think of possible solutions
on development)
 Holistic view based on abstract
 Development
situations relate it to wider
 Progress
environment
 Efficiency and Effectiveness
 Highly used by top managers since
 AA: board of trustees; A-Team
they are critical thinkers, they make
long term plans.
b. Middle
 “Tactical Managers” 2. Human Skills
 Formulate specific objectives and  Relate well with people
activities based on the general  Communicate, lead, inspire, and
direction or strategic goals motivate
 More aware of problems (knows  Manage work
what’s happening in top and  Know what’s happening
frontline – go-betweens) =  Used by all management levels
considered problem solvers equally– they are all relaying to
 Announcements people all the time inside or outside
 Gather and interpret data of the organization
 Appoint employees
 Issue instructions
 Motivate employees 3. Technical Skills
 Issue instructions  Proficient needed tasks
 Motivate employees  Know how the system works and
 Prepare organizational set-up how to solve them
 Creative in making operational  Mostly used by frontline managers
plans
 Allocate resources Accountability breeds Response-Ability
 Oversee first-line managers – Stephen Covey
 Develop and implement activities  own up to mistakes; learn from it
 AA: Subject Team Leaders
c. Low/ First-Line Managers
XI. Management Theories
 “Operational Managers”
 “front liners” - In charge of seeing
customers
 - Carefully planning work; Trained workers to
handle each task with a pre-determined
manner
- When you do this job, it should be your only
job; Workers should cooperate
- Set-up an equitable system of records for
improved productivity
o Folding of boxes unconsciously
- Pros
CLASSICAL APPROACHES 1. Significantly improved productivity
2. Increased employee incentives
3. Widespread improvements in quality
A. Frederick W. Taylor – Scientific control
Management 4. Better personal practices
- also known as the classical Management 5. Greater cooperation between
Theory management and workers with a
- Micro-approach consistent app of Taylor’s theory of
management
- Cons
1. “assembly line” approach made some
workers feel that the job is too simple
2. You get to think of your own

B. Max Weber – Bureaucratic

Organization
 Big Picture Approach
Defining Characteristics:
1. Clear division of labor.
- Jobs are well defined, and workers become
highly skilled at performing them.
2. Clear hierarchy of authority.
- Authority and responsibility are well defined
for each position, and each position reports to
a higher-level one.
- Authority, Clear Chain of Command 
Organizations should look like the
Government and Legal system
- Improve efficiency of work processes - A “Legal-Rational” Approach; Not
“Applying Science to Work” (provide Traditional, Family-Based Leadership
training, proper direction, work assistance, and 3. Formal rules and procedures.
monetary incentives) - Written guidelines direct behavior and
- Customized, Self-styled work as a serious decisions in jobs, and written files are kept for
productivity problem  Popularized time and historical record.
Motion Studies = find the “one right way” to - Clearly defined job rules; Clear rules should
do every single task govern performance.
- In his time, there’s only one boss 4. Impersonality.
- Management should have a standardized work/ - Standardized procedures and guideline should
method for doing tasks determine hiring and firing
- Carefully select workers with the right abilities - Rules and procedures are impartially and
for the job uniformly applied, with no one receiving
preferential treatment.
 o against favoritism or particularism 12. Stability of tenure of personnel:
- only hire employee who possess the specific Management should provide orderly
skill set the job requires not because of personnel planning and ensure that
particularism; You are hired because of your replacements are available to fill vacancies
skills 13. Initiative: Employees who are allowed to
5. Careers are based on merit. originate and carry out plans will exert high
- Workers are selected and promoted on ability, levels of effort
competency, and performance, and managers 14. Esprit de corps: Promoting team spirit will
are career employees of the organization. build harmony and unity within the
- One’s authority should be tied to the official organization
position he or she occupies  balancing power
MODERN MANAGEMENT
C. Henri Fayol – General Administrative FOUNDATIONS
Theory A. W. Edwards Deming – Total Quality
- Managerial Approach Management (TQM)
- Bureaucracy: efficient form of organization - a process that makes quality principles part
founded on the principles of logic, order and of the organization’s strategic objectives,
legitimate authority applying them to all aspects of operations
- Management should expound on their own and striving to meet customers’ needs by
principle doing things right the first time.
- 14 principles of management is based on what - Most TQM approaches begin with an
he found necessary for his career insistence that the total quality
commitment applies to everyone and
14 principles of management:
everything in an organization – from
1. Division of Work: Specialization increases
resource acquisition and supply chain
output by making employees more efficient
2. Authority: Managers must be able to give
management, through production and into
orders, and authority gives them this right the distribution of finished goods and
3. Discipline: Employees must obey and services, and ultimately to the customer-
respect the rules that govern the organization management relationship.
4. Unity of Command: Every employee should - Deming stressed the importance of
receive orders from only one superior management’s role, both at the individual
5. Unity of Direction: The organization should and company level, in the delivery of
have a single plan of action to guide quality.
managers and workers - According to Deming, 80-90% of quality
6. Subordination of individual interests to problems were under management’s
the general interest: The interest of any one control, emphasizing organization-wide
employee or group of employees should not cultural change and worker/management
take precedence over the interests of the cooperation as the path to achieving high
organization as a whole quality.
7. Remuneration: Workers must be paid a fair - Deming offered 14 key principles for
wage for their services management to follow to significantly
8. Centralization: This terms refers to the
improve the effectiveness of a business or
degree to which subordinates are involved in
organization.
decision making
9. Scalar Chain: The line of authority from top - Deming also introduced the PDSA Cycle
management to the lowest ranks is the scalar (Plan-Do-Study-Act), a systematic process
chain for gaining valuable learning and knowledge
10. Order: People and materials should be in the for the continual improvement of a
right place at the right time product, process, or service.
11. Equity: Managers should be kind and fair to
their subordinates 14 key principles for management:
1. Create constancy of purpose toward 14. Put everybody in the company to work
improvement of product and service - accomplishing the transformation.
to become competitive and to stay in
business, and to provide jobs PDSA Cycle (Plan-Do-Study-Act)
2. Adopt the new philosophy - We are in a - a systematic process for gaining valuable
new economic age. Management must learning and knowledge for the continual
awaken to the challenge, must learn their improvement of a product, process, or
responsibilities, and take on leadership for service.
change.
3. Cease dependence on inspection to a) Plan step -
achieve quality - Eliminate the need for This
inspection on a mass basis by building involves
quality into the product in the first place. identifying
4. End the practice of awarding business a goal or
based on the price tag - Instead, minimize purpose,
total cost. Move toward a single supplier for formulating
one item, on a long-term relationship of a theory,
loyalty and trust. defining
5. Improve constantly and forever the success
system of production and service - to metrics, and
improve quality and productivity, and thus putting a
constantly decrease costs. plan into
6. Institute training on the job. action.
7. Institute leadership - the aim of b) Do step - the components of the plan
supervision should be to help people and are implemented, such as making a
machines and gadgets to do a better job. product.
8. Drive out fear - so that everyone may work c) Study step - where outcomes are
effectively for the company. monitored to test the validity of the plan
9. Break down barriers between for signs of progress and success, or
departments - People in research, problems and areas for improvement.
design, sales, and production must work The Act step - closes the cycle,
as a team, to foresee problems of production integrating the learning generated by
and in use that may be encountered with the the entire process, which can be used to
product or service. adjust the goal, change methods,
10. Eliminate slogans - exhortations, and reformulate a theory altogether, or
targets for the workforce asking for zero broaden the learning –improvement
defects and new levels of productivity. cycle from a small-scale experiment to
Such exhortations only create a larger implementation Plan.
adversarial relationships, as the bulk of the - These four steps can be repeated over and
causes of low quality and low productivity over as part of a never-ending cycle of
belong to the system and thus, lie beyond continual learning and improvement.
the power of the workforce.
11. Eliminate numerical quotas - for the B. Joseph Juran – Quality/ Juan Trilogy
workforce and numerical goals for - A universal way of thinking about quality –
management. it fits all functions, all levels, and all
12. Remove barriers that rob people of pride
product and service lines.
of workmanship - and eliminate the annual
- The underlying concept is that managing
rating or merit system.
for quality consists of three universal
13. Institute a vigorous program of education
processes
and self-improvement - for everyone.
 then-prevailing after-the-fact inspection
(detection control) to what we now call
“prevention (proactive control).”
o For a few decades, the word “control”
had a broad meaning, which included
the concept of quality planning. Then
came events that narrowed the meaning
of “quality control.”
o The “statistical quality control”
movement gave the impression that
quality control consisted of using
statistical methods.
1.
o The “reliability” movement claimed
Quality Planning
o The design process enables innovation that quality control applied only to
quality at the time of the test but not
to happen by designing products
during service life.
together with the processes –
o Today, the term “quality control” often
including controls –to produce the final
outputs. means quality control and compliance.
o Juran describes quality from a customer The goal is to comply with international
standards or regulatory authorities.
viewpoint, where the degree of quality
achieved is proportional to the number
3. Quality Improvement
of features that meet customers’ needs,
o Improvement happens every day, in
especially in design, availability, safety,
conformance, and use. Rather than just every organization—even among the
focusing on the end customer. poor performers. That is how
o Juran believed that each person along businesses survive—in the short
term.
the chain, from internal “customers” to
o Improvement is an activity in which
the final user is both a supplier and a
customer. every organization carries out
tasks to make incremental
8 milestones – identified as integral to a quality improvements, day after day.
planning roadmap: o Daily improvement is different from
a. Determine who are the customers. breakthrough improvement.
b. Determine the needs of those customers. Breakthrough requires special
c. Develop a product that responds to those methods and leadership support to
needs. attain significant changes and results.
d. Organize the product features to meet your o It also differs from planning and control
needs as well as customer needs. as it requires taking a “step back” to
e. Develop a process that can produce the discover what may be preventing the
product. current level of performance from
f. Optimize the process. meeting the needs of its customers.
g. Prove that the process can produce the o By focusing on attaining breakthrough
product under operating conditions. improvement, leaders can create a
h. Transfer the process to operations. system to increase the rate of
improvement. By attaining just a
2. Quality Control few vital breakthroughs year after
o The term “control of quality” emerged year, the organization can outperform
early in the twentieth century. its competitors and meet stakeholder
o The concept was to broaden the needs.
approach to achieving quality, from the
 Week 2 could kill a harvest thereby causing an
The Firm and its Environment increase in cost of your product
f) Legal-Polictical Elements –new legal
1) Identify various forces or elements of the
conditions from a place may influence
firm’s environment
2) Summarize these forces using PESTLE
your prod or org
and SWOT analyses
SWOT
- All are contingent, you can’t directly
XII. SWOT and PESTLE analysis influence them so as an organization, you
Week 2 Explore: Video
can only anticipate the things the things that
- Can be applied to problems as part of your can happen:
project o Strenghts/ Srategies (internal)
- Can be used to understand the organization  ex: change from a cost-leadership
including both internal and external strategy to a focus strategy
environment o Weaknesses
- Important for managers of an organization to  within your organization you can
understand and anticipate the things coming identity your strategy,
towards you; this is an elemental part of management, and the ways you
understanding your position on the market work with your colleagues or
- Pyramid – Organization/ Product employees (internal)
o There are internal forces influencing the  internal elements that you can
organization – described as the influence or change
strengths and the weaknesses of the org
or prod o Opportunities
o Also influenced by external forces –  could be to do scenario planning
pose as opportunities and threats for the  You could perform scenario
org or prod planning to understand what might
- Strengths and Weaknesses: Both are Always be coming towards you – for
present external elements
o Threats (external) – but by taking this
PESTEL external force into account the
- 6 elements for you to take into account organization can anticipate on seizing
a) Politics/ Political –changes in opportunities and bypassing threats.
government can influence the way you
put your product into the market XIII.
b) Economics/ Economical – the economy
can change over the years and can
therefore boosts your organization or
products or can put restraint on it
c) Social Dynamics – there might be things
happening in the social system which
makes your prod or org more wanted or
less so
d) Technology – might change which may
cause your products to be obsolete; it can
also influence the way you use or
develop your products
e) Environmental issues –might be
influenced strong rainfall or extreme heat
Learning Period 1
Week 2 Explain: Discussion
A. Introduction: How does your environment o looks at their actual living standards and
affect you? How does it affect one’s chance the freedom they have to enjoy a good
of succeeding? standard of living.
B. Discussion o occurs when all segments of society
1. What is the relationship between the benefit from the fruits of economic
local and global forces that affect growth through economic efficiency and
businesses? equity.
2. Why do manufacturing companies o will look at
subcontract their products in other a) the real income per head (GDP per
countries? capita)
b) levels of literacy and education
3. How is the current pandemic standards
changing the general landscape of c) levels of healthcare
how companies do business? d) quality and availability of housing,
C. Wrap-up: How is the current pandemic e) levels of environmental standards
changing the general landscape of how f) life expectancy.
companies do business?
Absolute Poverty
- Do people have sufficient resources to
maintain a healthy diet and basics of life such
as shelter?
Week 3 - Economic growth may be essential to enable
Economic Development and Structures higher incomes for people to be able to buy
more food.
1) Explain the role of business in relation to the - However, economic growth does not
economy necessarily improve everyone’s living
2) Discuss the different phases of economic standards.
development - Economic growth can bypass the poorest
3) Differentiate the various forms of business sections of society because they do not have
organizations the ability to take part.
- A key issue is whether the benefits of
economic growth are equitably distributed
XIV. ECONOMIC GROWTH vs amongst different groups of society.
ECONOMIC Education standards (e.g. literacy rates).
DEVELOPMENT - Economic growth may enable more money to
be spent on education.
- Sustained economic growth = economic - However, there is no guarantee that the
development. proceeds of growth will be used to improve
- Economic growth education standards.
o an increase in the national income or - There is often a weak correlation between
national output and national expenditure, GDP and literacy rates.
or the gross domestic product (GDP).
o The GDP measures the total volume of Environmental standards
goods and services produced in an - Economic growth can harm the environment
economy. and people’s living standards.
- Economic development - For example
o structural transformation, mostly of the o higher output could cause more pollution.
economy. o If higher growth involves cutting down
o concerned with how people are actually forests – _this could have adverse
affected by economic growth. environmental consequences in the long-
term.
Transport/Infrastructure o the migration of people from rural areas
- Economic development would require seeking jobs in the emerging urban
improvements in infrastructure and transport. centers
- This may be important for regions that may be o the transformation of originally semi-
cut off from the main areas of economic urban suburbs into fully urban centers
growth. o differences in population dynamics
between rural and urban areas.
XV. Key Economic Development
Stages XVI. ORGANIZATION
STRUCTURES
1. The Structural Transformation - aligns and relates parts of an organization, so
o refers to a change in the composition of it can achieve its maximum performance.
GDP. - the structure chosen affects an organization's
o Initially, economic activities and jobs are success in carrying out its strategy and
based in the agricultural sector. objectives.
o With development, the share of - The form or structure that a business
agriculture in GDP decreases as organization takes depends on the purpose,
economic activities and jobs shift towards nature of operations, and availability of
the industrial sector, especially resources.
manufacturing. - Business organizations may be traditional,
o After some decades of industrialization, horizontal, or boundaryless.
the service sector will slowly overtake the
share of industry, while the share of A. TRADITIONAL ORGANIZATION
agriculture continues to decrease. STRUCTURES
 In other words, at the final stage of o Very vertical
development, we typically have an o Groups people with and jobs into work
economy in which people earn their units or formal teams
livelihood predominantly from the
service sector and a still important 1. Functional Structures
but diminished industry sector. - people with similar skills and performing
similar tasks are grouped into formal work
2. The Demographic Transition units.
o determined mostly by changes in the - Members work in their functional area of
fertility rates (i.e., the number of children expertise
per woman) and changes in life - Members of departments share technical
expectancy. expertise, interests, and responsibilities.
o Initially, fertility rates are high, but due to o For example, a company could have a
relatively high death rates (especially group working in information
high infant mortality rates), population technology, another in marketing, and
growth is limited. another in finance.
o In the next stage, both fertility rates and
life expectancy are increasing, causing a
sharp increase in the size of population.
o With continuous development, life
expectancy continues to increase, but
sharply declining fertility rates will limit
population growth.

3. The Main Factors leading to the process of

Urbanization
 Ex:  Starbucks: based on business function. For
example, the company has an HR department, a
finance department and a marketing department

2. Divisional Structures
- groups together people who work on the same
product or process, serve similar customers or
are located in the same area or geographical
region.
- are common in complex organizations with
diverse operations that extend across many
- Each department has a manager or director products, territories, customers, and work
who answers to an executive a level up in the processes.
hierarchy who may oversee multiple
departments.
o One such example is a director of
marketing who supervises the marketing
department and answers to a vice
president who is in charge of the
marketing, finance, and IT divisions.
- ADVANTAGE:
o Employees are grouped by skillset and
function, allowing them to focus their
collective energies on executing their
roles as a department.
- CHALLENGE:
o lack of inter-departmental
communication, with most issues and
discussions taking place at the managerial
level among individual departments.
 For example, one department
working with another on a project
may have different expectations or
details for its specific job, which
could lead to issues down the road.
o with groups paired by job function, there
is the possibility employees can develop
“tunnel vision” – seeing the company
solely through the lens of the jobs
employee’s job function

- ADVANTAGE:
o greater flexibility to a large company
with many divisions, allowing each one
to operate as its own company with one
or two people reporting to the parent
company’s chief executive officer or
upper manager staff. Instead of having all
programs approved at the very top levels,
those questions can be answered at the
divisional level.
- CHALLENGE:
 o by focusing on divisions, employees
working in the same function in different
divisions may be unable to communicate
well between divisions.
o also raises issues with accounting
practices and may have tax implications.

- ADVANTAGES:
o employees can share their knowledge
across the different functional divisions,
allowing for better communication and
understanding of each function’s role.
o And by working across functions,
Ex: McDonald’s - divided into components that are employees can broaden their skills and
given responsibilities based on operational
requirements. Each division handles a specific
operational area or set of strategic objectives.

3. Matrix Structure
- combines the functional and divisional
structures. In effect, it is an attempt to gain the
advantages and minimize the disadvantages of
each. knowledge, leading to professional
- employees may report to two or more bosses growth within the company.
depending on the situation or project. - CHALLENGES:
o For example, under normal functional o can be tough reporting to multiple bosses
circumstances, an engineer at a large and knowing what to communicate to
engineering firm could work for one boss, them.
but a new project may arise where that  that is why it is very important for
engineer’s expertise is needed. employees to know their roles,
o For the duration of that project, the responsibilities, and work priorities.
employee would also report to that o reporting to multiple managers may add
project’s manager, as well as his or her confusion and conflict between managers
boss for all other daily tasks. over what should be reported.
o if priorities are not clearly defined,
employees, too, may get confused about
their roles.
 - Because the central core is relatively small and
the surrounding networks can be expanded or
shrunk as needed, the network structure helps
lower costs and improve flexibility in dealing
with changing environments.
- It is quite a contrast to the old model in which
organizations basically owned everything they
needed.
- helps visualize both internal and external
relationships between managers and top-level
management.
- They are not only less hierarchical but are also
B. Horizontal Organization Structures more decentralized and more flexible than
- Gives an idea on how to break certain other structures.
disadvantages of a vertical structure - idea behind: based on social networks.
o Its structure relies on open
1. Team Structures communication and reliable partners;
- Extensively use permanent and temporary both internal and external.
teams to solve problems, complete special o viewed as agiler than other structures
projects, and accomplish day-to-day tasks because it has few tires, more control, and
- made of teams working towards a common the bottom flow of decision making.
goal while working on their individual tasks.
- less hierarchical, and they have flexible
structures that reinforce problem-solving,
decision-making, and teamwork.
- have changed the way many industries work.
o Globalization has allowed people in all
industries around the world to produce
goods and services cooperatively.
o Especially, manufacturing companies
must work together with suppliers around
the globe while keeping the cost to a
minimum while producing high-quality
products.

C. Boundaryless Structures
2. Network Structures
- Uses information technologies to link with 1. Boundaryless Organization
networks of outside suppliers and service - Eliminate internal boundaries among
contractors subsystems and external boundaries with the
- Organizations have a central core of full-time external environment
employees surrounded by “networks” - Team + Network + “Temporariness”
composed of outside contractors and partners - Key requirements:
that supply essential services. o Absence of hierarchy
 o Empowerment of team members surrounding virtual organizations
o Technology utilization from a knowledge management
o Acceptance of impermanence perspective.
- there are not any major structures and the main
approach to business is to allow information to Week 4
flow freely and ideas to be the driving force of Planning
efficiency, innovation, growth in the company.
- Such a company is built to do one thing very 1. Discuss the nature of planning
well: to survive in a world that is constantly 2. Compare and contrast the different types of
changing. plans
- Internal to the boundaryless organization,
spontaneous teamwork and communication XVII. PLANNING AND GOAL
replace formal lines of authority.
- Meetings and information sharing happen
SETTING IN
continuously. MANAGEMENT
- People work together in teams that form and (Video)
disband as needed.
- There is little hierarchy but lots of PLANNING
empowerment and technology utilization; - considered the most fundamental.
impermanence is accepted. - everything else stems from planning.
- Knowledge sharing is both a goal and an - the economic, political, and social turmoil of
essential component. recent years has sparked a renewed interest in
organizational planning, particularly planning
for crises and unexpected events.
- A goal is desired future state that the
organization wants to realize.
o Goals are important because
organizations exist for a purpose, and
goals define and state that purpose.
- Plan
o a blueprint specifying the resource
o allocations, schedules, and other actions
2. Virtual Organization necessary for attaining goals.
- takes the boundaryless concept to the extreme. - The Concept of Planning
- operates as a shifting network of alliances that o usually incorporates both goals and plans.
are engaged as needed using IT and the o Planning means determining the
Internet. organization’s goals and defining the
- a flexible network of independent entities means for achieving them.
linked by telecommunication and computing
technologies to share skills, knowledge, and
access to expertise in non-traditional ways. IMPORTANCE
- a form of cooperation involving companies, 1. Provides Direction
institutions, and/or individuals delivering a - Setting objectives
product or service based on a common - Determine the best ways to accomplish the set
business understanding. objectives
o Units participate in the collaboration and - Deciding what you exactly want to accomplish
present themselves as a unified and finding the best way to accomplish this
organization. 2. Creates a solid platform for other function
- A virtual organization is one whose employees of management
are spread geographically and communicate - organizing: allocate and arrange
via phone, email, and the internet. resources to accomplish tasks
o The concept explores - leading: guide human resources to
technologies and issues ensure high task output
 - controlling: monitor task output and take 4 Levels of Goals and Plans in an Organization
necessary corrective measures – mission, strategic, tactical, and operational goals
and plans.
managers think about the future rather than 1. The Formal Mission Statement: a broadly
thinking merely in terms of day-to-day activities. stated definition of an organization’s basic
business scope and operations that
PLANNING PROCESS distinguishes it from similar types of
- must focus on objectives and goals that organizations.
identify specific or desired results 2. Strategic
- Goals and objectives should push you to
achieve substantial results plans: include action steps by which an
- Always keep in mind to create achievable organization intends to attain strategic goals.
plans (action steps) goals: are a broad statement of where an
- With proper planning comes proper organization wants to be in the future; pertains
implementation to the organization as a whole rather than to
specific divisions or departments.
1) Define Objectives 3. Tactical
- Identify desired outcomes in very specific 4. Operational
ways; know where you want to go; be very plans: identify the specific procedures or
specific that you will know when you have processes needed at lower levels of the
reached your target or how far off the mark organization, such as individual departments
you are and employees.
goals: are a specific, measurable result that is
2) Determine where you stand vis-à-vis expected from departments, work groups, and
objectives individuals.
- Evaluate current accomplishments with the
desired ???
XVIII. TYPES OF PLANS
- According to Length of implementation
3) Develop premises regarding future
 Long-Term
conditions
- Anticipate future events; create alternative o 3 or more years;
scenarios for possible events; identify which o gets shorten because of external
scenarios will help or hinder you from environmental forces (ex:
reaching your objectives technology, laws keep on
changing)
4) Analyze alternatives and make a plan o sets the direction of the
- List and evaluate possible actions; among organization as a whole = general
alternatives that can help, choose the one that objectives. and goals
will most likely to accomplish your objectives;  Short-Terrm
describe what must be down and follow the o 1 year or less
best course of action. o Based on long-range plans and
sets the situation for lower-level
5) Implement the plan and evaluate results management
- Take action and carefully measure your o Department or unit specific
progress toward objectives; follow through by
doing what is planned, its requirements;
results; corrective actions; revise plans if - According Frequency of use
needed  Single use
- Change is constant, be flexible o For Unique, one-time-only events
 Standing
o Used repeatedly to handle
frequently recurring events
- According to Who plans XIX. SEC (Securities and
 Strategic Plans – Top Management
o Identifies along-term directions for
Exchange Commission)
5. the government agency tasked with
the organization regulating and monitoring business
o Creates a framework for allocating organizations and corporations
resources  maximum
Performance impact Affiliate
o Vision  mission  goals and 6. a company associate that holds a minority
objectives stake in the ownership of the parent
 Tactical plan – Middle Management company
o Aka functional plan
o Helps to implement all or parts of Subsidiary
strategic plan 7. a company owned by another company or
o Specifies how different a parent company
operations within the organization
will help advance the overall
strategy FOREIGN BUSINESS ORGANIZATIONS
 Operational Plan – Low Management 1. Branch Office
o Identifies short-term activities to 8. organized to do the activities of the
implement strategic plans head office from the host country
o Describes what needs to be done
o Policies and procedures 2. Representative Office
o Can be single-use plans (events- 9. fully supported by the head office and
based) does not obtain funds from its main office
overseas

Management By Objectives (MBO) 3. Regional Headquarter

- is a method whereby managers and employees 10. performs activities that primarily involve
define goals for every department, project, and supervision, communication, and
person and use them to monitor subsequent coordination; does not derive income from
performance. the Philippines
- Many companies have used MBO, and most
managers think it is an effective management 4. Regional Operating Headquarter
tool. 11. derives income from the Philippines;
- Most managers believe that they are better performs the ff. to its affiliations,
oriented toward goal achievement when MBO subsidiaries, and branches in the
is used. Philippines
1. administration and planning
2. acquisition of raw materials
3. marketing
4. technical support and communications
5. research and development

PRACTICES OF MANAGEMENT
PREVIOUS REV: (don’t mind) 1. Coordination
12. synchronization and integration of
activities

2. Effectiveness
13. degree to which objectives are achieved
14. doing the right thing
 15. focuses on the results Cultural Dimensions
28. Studied by Geert Hosfstede
3. Efficiency 1. Power Distance - the degree to which a
16. comparison of what is actually produced society accepts or rejects the unequal
or performed distribution of power among people in
17. how you maximize resources organizations and the institutions of society
18. doing things right 29. E.g.: US subordinates use the name or
19. focuses on the process nickname

MANAGEMENT 2. Uncertainty Avoidance - degree to which

20. ensure optimal employee output society is uncomfortable with risk, change,
21. humans are considered to the most and situational uncertainty,e.g: Parents in gay
complicated assets to manage pride
22. managers use different theories to manage
humans 3. Individualism-Collectivism - degree to
which a society emphasizes individual
LOCAL AND INTERNATIONAL BUSINESS accomplishments versus collective
Culture organizations in the PH accomplishments, awarding
1. Family hierarchy
2. “filipino time” 4. Masculinity-Femininity - degree to which
3. Religion society values assertiveness and feelings of
4. Gift giving – banks to clients, bias material success versus concern for
5. Attires relationships, thinking friendships before
6. Bargaining – tawad business

Laws of organizations in the PH 5. Time Orientation - degree to which society

Trends – tiangge, restaurants, café, malls, milktea, emphasizes short-term thinking versus
make-up, products, call centers, cars shops, greater concern for the future or long-term
laundry shops, milktea thinking
Types of International Organizations
Cultural Intelligence 1. Multinational Corporation (MNC)
23. An individual's ability to favorably receive 30. any type of international company that
and adjust to an unfamiliar way of doing maintains operations in multiple countries
things 2. Multidomestic Corporation
24. Will enable managers to develop their 31. decentralizes management and other
ability to accept and adapt to different decisions
cultures, both local and international. that 32. E.g. Starbucks, McDonald’s,
may affect the organization to which they 3. Global Company
belong 33. centralizes its management in the home
25. According to Edward T. Hall -- the way country
people approach and deal with time 34. what they sell here, they sell in other
varies across cultures countries
35. E.g. H&M, Jollibee
Culture Approach 4. Transnational/Borderless organization
1. Monochronic cultures 36. geocentric attitude
26. refer to cultures wherein people tend to do 37. all businesses in other countries have their
one thing at a time and emphasizes own homeland itself
punctuality and sticking to set rules 38. E.g. IBM, Nestle
2. Polychronic cultures
27. more flexible as regards to time and How do organizations go international?
accomplishing many different things at 1. Global Sourcing
once 39. sourcing the cheapest raw materials from
around the world
 2. Exporting
40. make products domestically and sell
abroad
41. sell your products to other countries
3. Importing
42. acquire products abroad and sell - .
domestically
4. Licensing or Franchising
43. giving an organization the right to use
their brand name
44. Starbucks
5. Strategic Alliance
45. partnership between an organization and a
foreign company partner
6. Joint Venture
46. a form of strategic alliance but with
different entities
47. Jollibee and Coffee Bean
7. Foreign Subsidiary
48. separate and independent facility or office

Regional Alliances
49. a union in a particular regional area that
provides and helps in developing
countries which will mutually
benefit in the future
1. The European Union (EU)
50. composed of 27 democratic countries
2. North Ameriacan Free Trade Agreement
(NAFTA)
51. reached by the Mexican, Canadian, and
U.S. governments
3. Association of Southeast Asian Nations
(ASEAN)
52. 10 Southeast Asian nations
4. African Union (AU)
5. East African Community (EAC)
6. South Asian Association for Regional
Cooperation (SAARC)

ASEAN
Biggest problem: difficult to create common
standards because national standards remain so far
apart

The goal: to be able to compete or be at part with

the other regional tradition alliances