Naga College Foundation, Inc.

M.T Villanueva Ave., Naga City

College of Business and Management
HPC 3: APPLIED BUSINESS TOOLS AND
TECHNOLOGIES

Chapter 1:

Management in a
Service-Oriented
Business Setting
OBJECTIVES:

❑Define management;
❑Discuss the different management functions;
and
❑Explain the characteristics of a service-
oriented business that require the manager’s
attention.

HPC 3: APPLIED BUSINESS TOOLS AND TECHNOLOGIES 2

 What Is An Organization?
 A group of people who work together in a structured
setting to achieve common goals.
 It can be a business entity that produces or sells
products, a government agency, a non-profit, or any
other social unit with a collective purpose.

HPC 3: APPLIED BUSINESS TOOLS AND TECHNOLOGIES 3

 Characteristics of
Organizations
 Organizations typically have a hierarchical structure,
with defined roles and responsibilities.
 They operate based on policies, procedures, and
systems to coordinate the efforts of their members.
 Effective organizations foster collaboration,
communication, and a shared sense of mission
among their members.

HPC 3: APPLIED BUSINESS TOOLS AND TECHNOLOGIES 4

Importance of Organizations
 Organizations play a crucial role in modern society,
serving as the backbone of economic, social, and
political systems.
 They enable individuals to pool their resources,
expertise, and talents to achieve goals that would be
difficult or impossible to accomplish alone.
 Well-run organizations can drive innovation, create
jobs, and contribute to the overall well-being of their
communities.

HPC 3: APPLIED BUSINESS TOOLS AND TECHNOLOGIES 5

Importance of Goals in Organizations
 Goals represent the broad, long-term targets that
individuals responsible for forming the organization
have set.
 They serve as measures of what the organization
aspires to achieve within a given timeframe.
 By establishing clear and achievable goals,
organizations can stay focused, motivated, and
aligned in their purpose and remain relevant.

HPC 3: APPLIED BUSINESS TOOLS AND TECHNOLOGIES 6

Resources in Organizations
Human Resources

• The skills, knowledge, and expertise of an organization's

workforce are invaluable resources.
• Recruiting, developing, and retaining talented individuals is
essential for an organization to achieve its goals and maintain a
competitive edge in the market.

HPC 3: APPLIED BUSINESS TOOLS AND TECHNOLOGIES

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 Resources in Organizations
Material Resources
• Organizations rely on a variety of material resources, such
as office supplies, raw materials, and equipment, to carry
out their day-to-day operations.
• Effectively managing and utilizing these physical assets is
crucial for an organization's productivity and efficiency.

HPC 3: APPLIED BUSINESS TOOLS AND TECHNOLOGIES

8
Resources in Organizations
Financial Resources
• Access to adequate financial resources, including capital,
funding, and investment, is critical for organizations.
• They need them tp finance their operations, fund growth
initiatives, and ensure long-term sustainability.

HPC 3: APPLIED BUSINESS TOOLS AND TECHNOLOGIES

9
 What is
Management
?
10
What is Management?
• Management is the process of coordinating and
overseeing the work of an organization, its resources,
and its people to achieve specific goals and objectives.
• It involves planning, organizing, leading, and
controlling the various components of a business or
enterprise to ensure its efficient and effective
operation.

HPC 3: APPLIED BUSINESS TOOLS AND TECHNOLOGIES

11
 What do
Managers do?

12
What do Managers do?
• Management covers several activities and affects different
processes within an organization.
• While a manager can be involved in a variety of activities,
there are four broad functions that constitute the work of all
manager. These are the following:
1. Planning and decision-making;
2. Organizing;
3. Leading; and
4. Controlling.
When these functions are stringed together, we refer to them
as the management process.
HPC 3: APPLIED BUSINESS TOOLS AND TECHNOLOGIES
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What do
Planning and
Managers do? Decision-
Figure 1.The Management Process
making

Controlling Organizing

Leading

HPC 3: APPLIED BUSINESS TOOLS AND TECHNOLOGIES 14

Planning and decision-making
 Planning involves setting the goals of the organization. The
organization’s goals are the reason why social units are formed into
organizations, so it is important to set these first.
 Setting a goal is like setting the path that an organization must take in
the future.
 Over time, these goals need to be modified to adapt to the
organization’s future with the changes in the environment, the
composition of organization, and the resources it requires and has
access to.

HPC 3: APPLIED BUSINESS TOOLS AND TECHNOLOGIES 15

Planning and decision-making
 Decision-making translates a plan into component actions
for a given condition.
 While planning is to be imagining, decision-making is to
choose what actions will make a plan a reality.
 Decision-making is the exercise of judgment by managers to
make goals happen, considering the situation that the
organization is in.

HPC 3: APPLIED BUSINESS TOOLS AND TECHNOLOGIES 16

Organizing

 Organizing is the process of determining how activities

can be grouped and what tasks should people perform so
that individuals and the resources they possess can be
utilized to achieve the goal.
 This includes establishing reporting relationships,
delegating responsibilities, and coordinating the efforts of
various departments and teams.

HPC 3: APPLIED BUSINESS TOOLS AND TECHNOLOGIES 17

Leading
 Motivating and guiding employees, fostering a
positive work environment, and inspiring them to
contribute to the organization's success.
 This involves effective communication, decision-
making, and the ability to build trust and
collaboration among team members.

HPC 3: APPLIED BUSINESS TOOLS AND TECHNOLOGIES 18

Controlling
 Monitoring and evaluating the organization's
performance, identifying any deviations from
plans, and taking corrective actions to ensure that
the organization's goals are being met.
 Includes setting performance standards,
measuring results, and implementing feedback
loops to continuously improve processes and
outcomes.
 Also includes rewarding good performances.

19
HPC 3: APPLIED BUSINESS TOOLS AND TECHNOLOGIES
 What is Service-
Oriented Business

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What is a Service-Oriented Business?
 A service-oriented business is
an organization that generates
revenue by providing valuable
services to customers, rather
than selling physical products.
 These businesses leverage their
expertise and capabilities to
deliver convenience, advice,
and specialized work to meet
customer needs.

This Photo by 21
HPC 3: APPLIED BUSINESS TOOLS AND TECHNOLOGIES
Unknown Author
 Components of a Business

Different business forms can be analyzed in terms of the

inputs they use, the business processes they employ, and the
outputs they create that customers buy/

HPC 3: APPLIED BUSINESS TOOLS AND TECHNOLOGIES 22

 Components of a Business

• Inputs represent the resources required by the

organization such as capital, labor, and raw
materials.
• The business processes are activities and
systems that transform inputs into valuable
outputs.
• The outputs are products that customers purchase
from the organization.

HPC 3: APPLIED BUSINESS TOOLS AND TECHNOLOGIES 23

24
 Types of Business Organizations
 Several types of business organizations can be
identified. It is important to distinguish them
because the demands are different by type of
business.
 These businesses can be distinguished in the
nature of the business processes they employ and
the outputs they create.
 These types are service-oriented businesses,
merchandising businesses, and
manufacturing businesses.

HPC 3: APPLIED BUSINESS TOOLS AND TECHNOLOGIES 25

Service-Oriented Business
 A Service-oriented business is an
organization that creates services as outputs.
 A service is a set of actions, information, tasks, or
sensations that are valuable to a customer.
 A service can be in the form of expertise rendered, such
as the advice given by lawyers and consultants.
 Service also includes expert work done or the
convenience delivered by contractor for another
organization.
 In the tourism industry, the usual service-oriented
business has hotels, travel agencies, airlines, tour
guiding, and theme parks.
HPC 3: APPLIED BUSINESS TOOLS AND TECHNOLOGIES 26
 Merchandising Business

• A merchandising business is an organization that

purchases a finished product and sells it to customers.
• This type of business creates profit by selling goods at
a premium.
• They can add a few touches to the product through
their business processes to ensure their outputs stand
out in the market.
• Merchandising businesses include grocery stores, drug
stores, and convenience stores.
• In the tourism context, they include souvenir shops
and other retail stores that sell goods to tourists.

HPC 3: APPLIED BUSINESS TOOLS AND TECHNOLOGIES 27

 Manufacturing Business

• A manufacturing business is a business that

buys raw materials and transforms them into
goods.
• It then sells these goods to customers at a price
that covers the cost of producing the finished
product.
• Manufacturing businesses include factories and
farms.
• They also include shops that make bespoke goods
and construction companies that build
infrastructures.
HPC 3: APPLIED BUSINESS TOOLS AND TECHNOLOGIES 28
What do Managers
do in a Service-
Oriented Business?
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 What do Managers do in Service-oriented
Business?
❑ Managers may work in various areas of service-
oriented business;
❑ Persons assigned as managers follow the
management process to meet their goals;
❑ Managers can also be assigned to the operations of
the company;
❑ Some managers are in charge of taking care of people
in the business;

HPC 3: APPLIED BUSINESS TOOLS AND TECHNOLOGIES 30

 TECHNOLOGICAL ORGANIZATIONAL ENVIRONMENTAL
CONSIDERATIONS CONSIDERATIONS CONSIDERATIONS
Required Technical Industry and
Benefits Skills Competition

Financial Business
Compatibility Resources Partners

Top Management Customer

Risks Support Expectations

BUSINESS TOOLS AND TECHNOLOGY ADOPTION

MANAGEMENT PROCESS

Planning and Controlling

Organizing Leading
Decision-making

Figure 3. Factors affecting Adoption of Business Tools and Technologies

HPC 3: APPLIED BUSINESS TOOLS AND TECHNOLOGIES 32
Factors Affecting Business Technology
Adoption

HPC 3: APPLIED BUSINESS TOOLS AND TECHNOLOGIES 33

 What do Managers do in Service-oriented
Business?
 Figure 3 summarizes he three (3) factors that can
influence the adoption of technologies among
businesses.
 Managers must decide the tools and technologies that
can be integrated into and utilized by service-oriented
organizations.
 The choice of business tools and technologies affects
management process.

HPC 3: APPLIED BUSINESS TOOLS AND TECHNOLOGIES 34

 Thank You,
Tigers!

HPC 3: APPLIED BUSINESS TOOLS AND TECHNOLOGIES 35