ABM 2

Management Functions
Planning
- Thinking and looking ahead
- The first function of management
- The process of establishing objectives and
appropriate course of action before taking action.
- Exists in all levels of the business organization.

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Types of Plan
1. Strategic Plan: focused on the entire organization; involves
three levels of management; prepares the business
enterprise for its operations in the future; and predicts the
external business environment.
2. Tactical Plan: A series of tactical plans constitute a strategic
plan. A plan what to do, how to do it, and who will do it.
3. Operating Plan: specifics as to how the strategic plan will be
attained; used by managers to accomplish their job
responsibilities.

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Main Types of Operating Plan
A. Single-use Plan: Applicable to activities that do not repeat.
1. Program: set of activities towards an objective
2. Budget: funds indicating their sources, and their
corresponding expenditures.

B. Ongoing Plan: Used for continuing situation, problems, and

activities which are similar and consistent (e.g. hiring of casual
employees and filing of income tax, etc.)
1. Policy: guidelines for making decisions.
2. Procedure: step-by-step instructions for performing an activity
or tasks.
3. Rule: a specific plan for controlling human behavior.
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Principles of Planning
1. Planning must be realistic.
2. Planning must be based on felt needs.
3. Planning must be flexible.
4. Planning must be democratic.
5. Planning must start with simple projects.
6. Planning must include social responsibility.

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Basic Steps in Planning
1. Establish goals.
2. Evaluate the environment.
3. Determine the best alternative strategy.
4. Implement the action plan.
5. Evaluation of results.

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Organizing
- The process of arranging an organization’s structure and
coordinating its managerial practices and the use of
resources to achieve its goals.

“Plans establish the objectives of the organization.

However, the key to the successful implementation of the
plans is a good organizational structure.”

“The human factor is the key to the success of the

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 The Importance/Benefits of Organizing
1. Clear and specific job description: Every employee
knows what to do.
2. Existence of coordination: Reduces or eliminates
confusions and conflicts as the policies on interrelationships
among the various work units are defined.
3. Presence of formal structure: Organizational chart―
diagrams various departments, positions and functions and
shows the entire organizational hierarchy.

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 Steps in Organizing
1. Evaluate plans and objectives.
2. Identify the various activities.
3. Group similar or related activities: grouping of similar or
related activities under one department.
E.g. Marketing: packaging, advertising, warehousing,
transporting, and selling.
4. Assign activities with appropriate authority: Assigning of
activities to competent individuals and giving them authority to do
their jobs efficiently and effectively.
5. Design a hierarchy of relationship: Organizational
structure―the vertical and horizontal relationships of the
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 Principal Organizational Concepts
1. Authority: the right to give orders and make
decisions; provides power; the ability to exert
influence. Influence is an action, or example that
causes a change in attitude or behavior of another
person or group.

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 Types of Authority
1. Line Authority: a direct supervisory relationship between superior and
subordinate; moves from the top to bottom of an organization.

2. Staff authority: provides advice or technical assistance to top

management or line managers; refers to the right to advice on improving
the effectiveness for line employees in performing their duties; based
primarily on expert power.

3. Functional Authority: the authority delegated to the members of the staff

department to control the activities of the other departments that are related
to specific staff activities. E.g. Civil Service Commision

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 Types of Authority
2. Delegation: the assignment of formal authority from a superior to a
subordinate.

2 Principles of Delegation
a. Scalar principle: a clear line of authority from the top level to the bottom of
level of the organization.
b. Unity of command: each employee in the organization should report to
only one supervisor.

3. Span of Control: the number of subordinates a manager should direct.

4. Centralization: the extent of authority in an organization;
Centralized: the authority of making decisions is in the hands of one or a few
individuals at the top of organizations.
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 “Good performance is impossible
to attain under a poor
organizational structure, even if the
individual managers are good.”

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Staffing
- Composed of a series of steps that
intend to provide the organization with
the right people in the right jobs.

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Steps in Staffing:
1. Human resource planning: to ensure that the personnel needs of the organization
are met and sustained.
2. Recruitment: pooling of job candidates to match the human resource plan of the
organization. The aim is to get many job applicants for the organization to choose the
most qualified ones.
3. Selection: Evaluation of job applicants and the best ones are chosen.
4. Orientation: The chosen applicant are subjected to socialization process; introduced
to superiors and officemates; briefed on their job descriptions.
5. Training and development: Aims to improve the skills of employees for them to be
more efficient.
6. Performance appraisal: evaluating an individual’s job performance against job
standards; monetary and non-monetary rewards or promotions are given to those who
have performed well.
7. Transfer, promotion and demotion:
Transfer: a movement to a different job with similar pay and responsibility.
Promotion: advancement in position with higher pay and responsibility.
Demotion: a movement to a lower-status-position.
8. Separation: Resignation: Voluntary separation; Termination: involuntary separation
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LEADERSHIP
“The manager must know and understand the needs and interests of his subordinates.
To motivate them to reach peak performance is to satisfy their needs and interests.”

Motivation: the factors that are responsible for stimulating proper responses towards
the accomplishments of established goals.

MOTIVATION MODELS
1. The traditional model: view comes from the scientific management led by Frederick
Taylor; the job of the manager is to make sure that workers perform repetitive tasks
in the most efficient way. Incentive is in the form of monetary rewards. The piece-rate
system: the more the workers produces, the more he earns.
2. The human relations model: Social needs and the feeling of importance are the
factors that motivate people.
3. The human resources model: Employees are motivated not only by money, or the
desire for satisfaction, but also by the need for need for achievement and meaningful
work.
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Maslow’s Hierarchy of Needs Theory

1. Physiological needs. the basic needs of air, water, food,

clothing and shelter.

2. Safety needs. Safety needs include physical,

environmental and emotional safety and protection: Job
security, financial security, protection from animals, family
security, health security, etc.

3. Social needs. Social needs include the need for love,

affection, care, belongingness, and friendship.

4. Esteem needs. Esteem needs are of two types: internal

esteem needs (self- respect, confidence, competence,
achievement and freedom) and external esteem needs
(recognition, power, status, attention and admiration).

5. Self-actualization need. This include the urge to become

what you are capable of becoming/what you have the
potential to become.

Source:
https://www.managementstudyguide.com/maslows-hierarchy-
needs-theory.htm
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Leadership

“The power to influence the behaviors of people to perform activities

that are required to accomplish goals,” (Fajardo, 1997).

“Leaders and managers are not the same. While leaders may be
effective managers, not all managers can rightfully be called
leaders. Managers who are leaders inspire, motivate, and energize
people with their clear visions and strategies towards a shared
goal,” (Maxwell, 2019).

“Leadership is influence.”- John C. Maxwell

“Leadership is not management. Leadership is the first creation,

while management is the second creation. Leadership has to come
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Leadership is not management. Leadership is the first creation, while
management is the second creation. Leadership has to come first.

Leadership: What are the things I want to accomplish?

Management: How can I best accomplish things?

Leadership is doing the right things; management is doing things right.- Peter
Drucker

Management is efficiency in climbing the ladder of success. Leadership

determines whether the ladder is leading against the right wall.

- The 7 Habits of Highly Effective People by Stephen Covey, p. 108

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LEADERSHIP STYLES

1.Autocratic Leadership
2.Participative/Democratic Leadership
3.Free-rein/Laissez faire Leadership

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 THE FIVE LEVELS OF LEADERSHIP
By John C. Maxwell
Level one: Position

An authority figure exerts control largely because of position. Often, a leader at

this
level rules by intimidation. People will follow because they have to. Otherwise,
employees will not exert effort beyond their job description or what is required. At
this level of leadership, staff lacks commitment leading to high turnover and low
morale within the organization.

Indicators of excellence:
• Highly skilled.
• Knows job description thoroughly.
• Strong initiative.
• Proactive.
• Highly responsible.
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 THE FIVE LEVELS OF LEADERSHIP
By John C. Maxwell
Level two: Permission/Relationships

A permission leader relies on people interrelationships with strong emphasis on

bringing people together. Employees begin to follow beyond the leader’s stated
authority.

Indicators of excellence:
• Genuine care for people.
• Strong people relationship.
• Believes in win-win results.
• Knows how to deal with difficult people.

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 THE FIVE LEVELS OF LEADERSHIP
By John C. Maxwell
Level three: Production/Results
The leader brings the people together on a journey to accomplish a purpose,
allowing them to share in the glory of results. People follow to accomplish an
objective.

Indicators of excellence:
• Driven by a statement of purpose.
• Accountable for results.
• Knows and does things that give a high return.
• Accepts responsibility.

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 THE FIVE LEVELS OF LEADERSHIP
By John C. Maxwell
Level four: People Development/Reproduction
A leader at this stage empowers followers and helps them grow personally. People
follow because of loyalty brought about by how the leader has helped them grow.

Indicators of excellence:
• Recognizes people are valuable assets.
• Role models for others to follow.
• Develops people.
• Shares goals.
• Surrounds oneself with a core group that complements leadership philosophy.
• Leadership is coursed through the core group.

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 THE FIVE LEVELS OF LEADERSHIP
By John C. Maxwell
Level five: Personhood
A level five leader has spent years growing people and organizations. People
follow because of who and what the leader represents.

Indicators of excellence:
• Followers are loyal and sacrificial.
• Leader mentors and molds leaders.
• Leader transcends the organization.
• Leader’s ultimate joy is to watch others grow and develop.

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Controlling
- The process of assuring that actual
activities conform to planned activities.

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The Control Process
1. Establish standards of performance.
2. Measure the performance.
3. Take corrective action.

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Types of Control
1. Pre-action control: Proper allocation or
budgeting of productive resource prior to the
activity.
2. Steering control: intended to detect deviation
from the established standards or objectives.
3. Screening control: Provide the conditions to
be meet before the operations continue.
4. Post-action control: Measure the results of a
completed activity.
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THANK YOU !

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