MGT

LESSON 1
Organization is a shema of purpose and goals to meet its purpose.
Management if from the Latin word “Magu agere” which mealea"to lead” or “to give direction by
hand”.

Henri Fayol, a management theorist from France proposed the 6 functions of

management:
Forecasting - one of the most essential in business, it reduces excess and shortage of
inventories
Planning - are used interchangeably to refer to a “technology, a set of techand activities that
assists in achieving an appropriate alignment of external and internal environment.
A BUSINESS PLAN a. document that describe the steps b. provudes a clear picture of the
business c. serves as the guide or mind map
Organizing - collected or set activities
Coordinating - the process of linking or coordination of activities of various departments of the
organization to have a unified direction.
Monitoring - is ensuring that all activities in progress are on-course and on-schedule
Leading

LESSON 2
14 Principles of Management
1.Division of Work: Expertise can be developed and over time, productivity depnds on the
specialisation of the workforce.
2.Authority: Responsibility comes from Authority.
3.Discipline
4.Unity of Command: you cannot serve two masters at the same time, in this manner, clarity and
singleness of command is observed.
5.Unity of Direction: Lead by one person out of an explicit one plan.
6.Subordination of Individual Interest to tje General Interest
7.Remuneration: Fair remuneration for the employee both for monetary and non-monetary
benefits.
8.Centralization: striking the balance by having one voice
9.Scalar Chain: “chain of command”
10.Order
11.Equity
12. Stability of Tenure and Personnel: maintaining personnel is somewhat challenging
13.Initiative
14. Espirit de Corps: Organization should exert effort to stimulate the spirit of team player and
harmony.
Classification of Theories of Management
Theories of Classical Management
Classical Management theories intends to predict and control behaviors in the organization.
a.Chain of command
A. Top-Level Management: Governed by yop executives such as board directors, president,
CEOs
B. Middle-Level Management: Term of reference for the middle level managers includes
coordinating activities of the supervisors. Examples are: manager, financial, managers,
supervisors, deputy, assistant of managers in enterprises
C. First-Level Management : The one who implements the policies and plans is the
supervisor, which is called supervision. Teachers are belong to tje first level
management .
b. Division of Labor
c. One-sided Top-Down Influence

Theories of Humanistic Management

Humanistic management is more on value or worth of one person.

Theories of Situational or the Contingency Management

Situational Management as the essence of choice that can be used in managerial decisions by
taking into consideration the current situation from the existing set of standards of actions.

3 Modules of Classical Theory

1.Scientific Management
- transformed business because it describes how to raise production by functioning
smoother, not tougher.
Frederick Taylor is the Father of Scientific Management. He was the first person who
attempted to study human behavior at work using a systematic approach.

Taylor’s Four Fundamental Principles

1. there is science for every component of a man's work
2. workmanship can improve through scientific method
3. wholeheartedly scientific collaboration to complete assigned task
4. shared responsibility for the management and the employee with proper determination to
which and whom the task or work are fitted

2. Administrative Management
- Max Weber considered the organization as a segment of broader society. He looked at
the structure of the organization and the control of member behavior.
3. Bureucratic Management
Max Weber initiated the study of sociological bureaucracy. He stressed that thee is essentiality
of bureaucracy for the achievement of the objectives of an organization. He named theory as
“ideal type”, an ideal type.

3 Ideal Types of Hierarchical Authority in an Organization

1.Traditional authority: shaped by the traditionally or centralized authority and grouded with the
word subordinates.
2. Rational-Legal authority: The bureaucratic type of authority, grounded on normative
procedures for job, chain of command etc.
3.Charismatic authority: The authority constructed on a type of seduction and therefore, the
dedication of followers.

LESSON 3
The Three Functions of a Manager:
1. Planning and Budgeting - setting time-phased performance measures, establishing
targets and goals
2. Optimizing and Staffing - ensure that the organization has the capacity to carry out
goals
3. Providing supervision and problem-solving: monitoring results versus the identifying
deviations or exceptions and solving problems or dispute

The Role of the Manager

- Attract, retain and develop personnel talent.
- Assess risks and opportunities and develop strategic plans.
- Define and manage the structure,.processes, and technology required in the operations
of a business unit or organization.
- Develop and establish management performance metrics and evaluation systems.
Other Role of the Manager
1. The teacher and the learner: the central champion of learning is the manager
2. Mover: Managers as encouragement and motivator
3. Moderator: Managers should bring the best of employees to see the spark andd glint of
truth
4. Innovator: Managers in an organization should to think outside the box and to see
beyond ‘status quo’; to find compelling reasons to change. As they said, “the best time to
innovate is all the time”.
5. Provider: Provider of solution of the problem or strategies to amend challenges.
Managers job includes “puting out fire”.
The Skill of a Manager
1. Good Communication - the most important skill of a manager
2. Good Organization - Ability to organize, plan, schedule, execute, coordinate and control
3. Team Building - A manager must have the ability to build trust and confidence
4. Leadership - A manager must able to define clear goals and plans to undertake and
achieve in line with the vision and mission
5. Ability to deal with changes effectively - a manager should have the abilities tto respond
to challenges, not discouraged by adversity, see the positive side of things
6. Domain Knowledge: above all, managers should have thorough understanding of the
simplicity and complexity of the process he or she is managing .

ENVIRONMENTAL FORCES
Business Environment is defined as factors that influences business organization.
Business Organization is a combination of internal and external factors that makes the
organization in operational status.
Business Environment includes:
● suppliers and clients
● owners and competitors
● never ending improvement of technology
● laws
● government
● policies
● markets
● social
● economic trends
Types of Environment
Internal - strength, weaknesses, behavior, and resources
External - variable demand and requirements, suppliers, government, regulatory agencies,
labor union, (general) social values, educational, political, economic, legal, demographic
behavior , natural environment, natural resources, technologies

Environmental Scanning is a useful mechanism to better understand the status of the

environment of an enterprise.

SWOT ANALYSIS is a structure planning method or tool used in analyzing and positioning an
organization's resources and environment.
PEST

Five Forces of Competition

1. threat to substitute
2. threat to new entrany
3. bargaining power of supplies
 4. bargaining power of costumers
5. rivalry among existing competitors
3C
company
costumer
competitor

Globalization is always valued.

Inflation Rate is a change in the consumer index in a given period either monthly or yearly.

GROSS NATIONAL PRODUCT (GNP) is th estimate value of all products and services
produced rendered in a given period through production by each country. GNP refers to the next
exports representing the difference between what a country exploits minus any imports of good
and services.

GROSS DOMESTIC PRODUCTS (GDP) is the monetary or market value of goods and services
produced by a specific time period by a certain country.

Currency Exchange is a legal transaction.

Sovereign Credit Rating is conducted by independent assessor to asses the credit worthiness.
of a country. The use of Sovereign Credit Rating is valuable for this can be the basis of
investors.

Human Development Index

Elements that Influence the Local and International Environment of the Firm
1. educational political
2. economic
3. legal
4. demographic behavior
5. natural environment
6. natural resources
7. technologies

A. Economic Environment - determines and defines the opportunities for an organization;

provides the scope of the business operations of the organization.
B. Political Environment - refers to the implication of the political environment ot a
business enterprise.
C. Technological Environment - refers to the systematic application of scientific and
organized knowledge
D. Social and Culture Environment - includes social structures, customs, tradition,
values, beliefs
 E. Natural Environment - refers to influence of the natural environment, such as sugar
factories that are set up near a place where sugarcane can be grown.
F. Ethical and Demographic Environment - characteristics of the society.
G. Legal Environment

The Walt Rostow Stages of Development

Stage 1: Traditional Society - A country belongs to this stage when they are more on
agricultural economy.
Stage 2: Pre-comditonditions to take off - Stage where a country is not just more on
agricultural but starts developing towards industrialization they become more mechanized and
more output for trading.
Stage 3: Take-off - In this stage, a country is now starting to take off from the firm ground, they
value the manufacturing industry, although the number of industries remains small.
Stage 4: Drive to Maturity - the industry becomes more diverse
Stage 5: Age of Mass Comsumption - there is already the shift towards tertiary sector activity
and the expansion of growth is sustained by the middle class of consumers.

The Philippines belongs to Stage 2.

Types of Business Organization Structure

● Functional Organizational Structure - all marketers from the same department in
groups
● Divisional: Product-Based Organizational Structure - focused and works well
according to the line of the product
● Divisional: Market-Based Organizational Structure - based around market
● Divisional: Geographical Organizational Structure - geography
● Process-Based Organizational Structure - based on the process in order the
employees can work together
● Matrix Organizational Structure - employees have relationships that are two fold when
it comes to reporting.