ORGANIZATION

and
MANAGEMENT
Louis Rei M. Hermenegildo
Ramses S. Turaja
Anton Luie C. Cesario
Laurence I. Soriano
BSCE2B
what is an organization?
a network of people
who collaborate in the activity of
an organized manner planning an event
for a common goal or activity

the way in which

something is done
or arranged
organization vs company
company's primary goal is to earn a profit through commercial
business activities

organization vs corporation
Corporation is a large company or group of companies authorized to
act as a single entity and recognized as such in law.

organization vs institution
an institution is an establishment, that is dedicated to promoting a
specific cause that can be educational, professional, social, etc.
organization vs association
members are volunteers and they do not get paid
ORGANIZATIONAL
what is an
STRUCTURE
ORGANIZATIONAL
Organizational structure is the backbone of all the operating
procedures and workflows at any company

a system(hierarchy) that outlines how certain activities(rules, roles,

responsibilities) are directed in order to achieve the goals of an
organization.
determines how information flows between levels within the company
a map showing how your company is organized and how it works

STRUCTURE
7
types
ORGANIZATIONAL
STRUCTURE
 ORGANIZATIONAL
hierarchal STRUCTURE
The pyramid-shaped organizational
chart we referred to earlier is known
as a hierarchical org chart. It’s the
most common type of organizational
structure—the chain of command goes
from the top (e.g., the CEO or
manager) down (e.g., entry-level and
low-level employees), and each
employee has a supervisor.
 pros VS cons
Better defines levels of authority Can slow down innovation or
and responsibility important changes due to
Shows who each person reports to increased bureaucracy
Motivates employees with clear Can cause employees to act in
career paths and chances for interest of the department instead
promotion of the company as a whole
Gives each employee a specialty Can make lower-level employees
Creates camaraderie between feel like they have less ownership
employees within the same and can’t express their ideas for
department the company
 ORGANIZATIONAL
functional STRUCTURE
Starts with positions with the highest
levels of responsibility at the top and
goes down from there. However,
employees are organized according to
their specific skills and their
corresponding function in the
company. Each separate department
is managed independently.
 pros VS cons
Allows employees to focus on Can create silos within an
their role organization
Hampers interdepartmental
Encourages specialization
communication
Help teams and departments
Obscures processes and
feel self-determined
strategies for different
Is easily scalable in any sized markets or products in a
company company
horizontal or ORGANIZATIONAL
Flat STRUCTURE
A horizontal or flat organizational
structure fits companies with few levels
between upper management and staff-
level employees. Many start-up
businesses use a horizontal org structure
before they grow large enough to build
out different departments, but some
organizations maintain this structure
since it encourages less supervision and
more involvement from all employees.
 pros VS cons
Gives employees more Can create confusion since
responsibility employees do not have a
clear supervisor to report to
Fosters more open
Can produce employees
communication
with more generalized skills
Improves coordination
and knowledge
and speed of Can be difficult to maintain
implementing new ideas once the company grows
beyond start-up status
divisional ORGANIZATIONAL
STRUCTURE
In divisional organizational structures, a
company’s divisions have control over
their own resources, essentially
operating like their own company within
the larger organization. Each division
can have its own marketing team, sales
team, IT team, etc. This structure works
well for large companies as it empowers
the various divisions to make decisions
without everyone having to report to
just a few executives.
market-based
Divisions are separated by market,
industry, or customer type. A large
consumer goods company, like
Target or Walmart, might separate
its durable goods (clothing,
electronics, furniture, etc.) from its
food or logistics divisions.
product-based
Divisions are separated by product
line. For example, a tech company
might have a division dedicated to
its cloud offerings, while the rest of
the divisions focus on the different
software offerings—e.g., Adobe and
its creative suite of Illustrator,
Photoshop, InDesign, etc.
geographic
Divisions are separated by region,
territories, or districts, offering more
effective localization and logistics.
Companies might establish satellite
offices across the country or the
globe in order to stay close to their
customers.
 ORGANIZATIONAL
matrix STRUCTURE
A matrix organizational chart looks
like a grid, and it shows cross-
functional teams that form for special
projects. For example, an engineer
may regularly belong to the
engineering department (led by an
engineering director) but work on a
temporary project (led by a project
manager).
 pros VS cons
Allows supervisors to easily
Presents a conflict
choose individuals by the
between department
needs of a project
managers and project
Gives a more dynamic view
managers
of the organization Can change more
Encourages employees to use frequently than other
their skills in various organizational chart types
capacities aside from their
original roles.
 ORGANIZATIONAL
team-based STRUCTURE
The pyramid-shaped organizational
chart we referred to earlier is known
as a hierarchical org chart. It’s the
most common type of organizational
structure—the chain of command goes
from the top (e.g., the CEO or
manager) down (e.g., entry-level and
low-level employees), and each
employee has a supervisor.
 pros VS cons
Visualizes the complex web of
onsite and offsite relationships Can quickly become
in companies overly complex when
Allows companies to be more dealing with lots of offsite
flexible and agile
processes
Give more power to all
employees to collaborate, take Can make it more difficult
initiative, and make decisions for employees to know
Helps employees and who's in charge
stakeholders understand
workflows and processes
the importance of
organizational structure
organizational structures provide a clear organization chart that helps
businesses keep track of their human resources
if you need to pivot or shift your leadership, you can visualize how the
workflows would work by adjusting your organizational structure diagrams
makes operations more efficient and much more effective, by separating
employees and functions into different departments, the company can
perform different operations at once seamlessly.
organizational structure can also be helpful for new employees as they
learn who manages what processes at your company
6
key elements of an
ORGANIZATIONAL
STRUCTURE
 It refers to the degree to which
operations in an organization
are broken into separate roles.
Division of labor or work

1
specialization increases
efficiency and production, but it
also increases boredom,
weariness, and stress, as well as
division low output, poor quality,
of labor increased absenteeism, and
high turnover.
2 departmentalization
It refers to the process by which jobs
are grouped together. This can be done
by function, product, geography,
process, or customer. Functional
departmentalization divides tasks into
categories based on the functions they
perform, such as engineering,
accounting, or human resources.
 3
Is a continuous line of authority that
runs from the top of the organization to
the bottom, defining who reports to
whom. Authority and unity of command
are related to the concept of chain of
command.
Authority - right of a boss to issue
orders and expect them to be followed
is referred to as authority

chain of
command
 4
Is the amount of employees that can be
directed by a single manager. A narrow
span of control fosters a more intimate
and hands-on work environment and
manages only a small number of
employees. A wide span of control puts
numerous employees under each
manager, assuming that daily tasks and
processes are clearly defined.

span of
control
 centralization &
decentralization

5
Refers to decision-making concentrated at a
single place in the organization. Top
management makes crucial decisions in a
centralized structure with little or no
involvement from lower-level employees. A
decentralized structure, on the other hand,
allows lower-level employees to provide
input or even make choices.
6 formalization
Is the process of creating a set of rules,
procedures, and guidelines that dictate how
tasks should be performed and how
decisions should be made within an
organization. This can include creating
formalized policies and procedures, job
descriptions, and decision-making
processes.
10
principles of an
EFFECTIVE
ORGANIZATION
the process of working together
to achieve a single objective
1 ENCOURAGE
cooperation
the act or instance of becoming
different
2 ORGANIZE FOR
change
a period of time that is to come,
tomorrow
3 ANTICIPATE THE
future
 prepared and able to change so as
to adapt to different circumstances
4 REMAIN
flexible
indicates qualities distinguishing and uncommon
which are often superior or praiseworthy
5
CREATE distinctive SPACES
the surroundings or conditions in which a person,
animal, or plant lives or operates
6
DIVERSIFY
YOUR
& CREATE AN
INCLUSIVE
WORKFORCE environment
the act or process, or a manner of growing;
development; gradual increase
7
PROMOTE PERSONAL growth
to give someone official or legal authority,
freedom, confidence, or the means to do
something
8 empower
PEOPLE
a gift of something to someone in recognition of
their services, efforts, or achievements
9 reward
HIGH PERFORMERS
the action of leading a group of people, an
organization or a business
10
FOSTER A
leadership
CULTURE
 BUSINESS
an organization or enterprising entity engaged
in commercial, industrial, or professional
activities
Business also refers to the efforts and activities undertaken by
individuals to produce and sell goods and services for profit.
Businesses can be for-profit entities or non-profit organizations.
Business types range from limited liability companies to sole
proprietorships, corporations, and partnerships.
Some businesses run as small operations in a single industry while
others are large operations that spread across many industries
around the world.
 BUSINESS
types
partnerships

sole proprietorships corporations

limited
liability
company
 sole proprietorships
As the name suggests, a sole proprietorship is
owned and operated by a single person. There is
no legal separation between the business and the
owner, which means the tax and legal liabilities of
the business are the responsibility of the owner.

partnerships
A partnership is a business relationship between
two or more people who together conduct
business. Each partner contributes resources and
money to the business and shares in the profits
and losses of the business. The shared profits and
losses are recorded on each partner's tax return.
 corporations
A corporation is a business in which a group of
people acts as a single entity. Owners are
commonly referred to as shareholders who
exchange consideration for the corporation's
common stock. Incorporating a business releases
owners of the financial liability of business
obligations. A corporation comes with unfavorable
taxation rules for the owners of the business.
This is a relatively new business
structure and was first available in limited liability
Wyoming in 1977 and in other states in company
the 1990s. A limited liability company
combines the pass-through taxation
benefits of a partnership with the limited
liability benefits of a corporation.
 BUSINESS
sizes

small
businesses mid-sized large
enterprises business
 Small owner-operated companies are called small businesses.
Commonly managed by one person or a small group of people
with less than 100 employees,
these companies include:
family restaurants, home-based companies, clothing, books, publishing
companies, small manufacturers

Small businesses tend to have fewer human

resources and less up-front capital to dedicate
to quality initiatives. However, Upper
management commitment and accessibility
small can be stronger in a smaller business, and

businesses internal communications can be more

straightforward.
 The criteria used for
classifying businesses as asset size
mid-sized enterprises varies
in different countries. In the Asset size is the
Philippines, a business is total market value
classified as a medium of the securities in
enterprise if it has Php a fund. It can also
15,000,0001–100,000,000 be referred to as
asset size. assets under
management.
mid-sized
enterprises
Like the criteria used for classifying
businesses as mid-sized enterprises,
the criteria for large business also
varies in different countries

The Philippines classifies a business

as a large business if it has an asset
size of Php 100,000,001 or more
and if it has 200 or more employees. large
business
 what is
MANAGEMENT ?
No matter what the organization is or what its goals might be, they all
have something in common – management and managers
Management is the art of getting things done through people.

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
objectives MANAGEMENT
of

1
Management definition puts forth an
effort to make efficient use of available

optimize resources in order to generate the

greatest feasible amount of output.
resources This aim makes it possible to improve
profits by lowering the proportion of
resource expenses to earnings in the
business.
objectives MANAGEMENT
of

2
Boosting the effectiveness of
operations, production, and services

improvement leads to increased output, revenue,

and profits.
of Management systems observe the
efficiencies activities, length of time, and flow of
the workplace to ascertain the
procedures that result in the most
productive outputs.
objectives MANAGEMENT
of

3
Management definition puts forth an
effort to make efficient use of available
to resources in order to generate the

maximize greatest feasible amount of output.

This aim makes it possible to improve
profit profits by lowering the proportion of
resource expenses to earnings in the
business.
 objectives MANAGEMENT
of

4
An efficient management team makes
the employees' personal development
promote and professional advancement a top

personal priority.
Employees can gain new skills and
development improve their careers when options like
seminars, mentoring programs, training
resources, and internal promotions are
available.
objectives MANAGEMENT
of

5
Management teams determine the rules,
protocols, and criteria that govern the
manufacturing and delivery of goods and services.
maintain One of management's most important
responsibilities is ensuring that the organization
quality consistently meets all required quality standards.
The team collaborates with other departments,
supervisors, and workers to establish, execute,
and sustain quality.
 objectives MANAGEMENT
of

6
An organization's culture, attitudes, and morale
can influence its total output and revenues. The
intrinsic drive for employees to accomplish their
to keep up work and give more effort is increased when the

the spirit in workforce's morale is high.

Management teams actively seek to maintain
the morale by putting into place efficient authority

workplace structures, developing incentive programs, and

reacting to the comments and suggestions of
staff members.
 objectives MANAGEMENT
of

7
Personnel need to be able to work together in a
maintainin disciplined manner. Group effort is crucial to the
g discipline impossible without rules and regulations.
organization's success, and effective teamwork is

and moral structure and order that fosters genuine

Having discipline means having an internal

collaboration and support for the mission and the

team or organization members.
 objectives MANAGEMENT
of

8
Forecasting and predicting results and changes are
common responsibilities for many management
professions. One of priorities of a managers is to
cut down minimize exposure to potential hazards and losses
by careful planning and accurate forecasting.
on the risk It is possible to boost earnings and eradicate losses

factor by cutting down on risk elements, including safety

concerns, squandered resources, and unnecessary
expenditures.
objectives MANAGEMENT
of

9
Management teams will frequently engage in
higher-level critical thinking and abstract

generate strategy when trying to enhance operations

and revenues.
business The team develops, pitches, and implements
strategies overarching company plans or frameworks. A
process done with CEOs, stakeholders, and
other leaders.
 objectives MANAGEMENT
of

10
Productivity and efficiency are susceptible to
changes brought on by an organization's
workflow and its internal structure.
To establish processes, internal structures, and
facility designs that are logical and efficient,
management teams may include or collaborate
workflow with logistics specialists, engineering

coordination professionals, and production professionals.

objectives MANAGEMENT
of

11
The management strives to locate, recruit, and
retain the most qualified applicants and
workers possible.
Managers to collaborate with recruiters to
determine recruiting criteria, assess applicants,
and develop recruitment offers. The entire

identify organization benefits from knowledge,

competence, and productivity when it recruits
talent talented and competent workers.
 objectives MANAGEMENT
of

12
Handling, upkeep, and accurate forecasting
of the availability of resources, commodities,
and services is part of management.

To accomplish this goal, managers may

project and predict the requirements of the
ensure business or the general public and keep an
eye out for problems like scarcity.
availability
 objectives MANAGEMENT
of

13
By investing in Research & Development, a
company may develop innovative products
promotion and relevant services to offer to stay relevant

of research in a competitive market.

and An organization can also improve existing

products to improve profit and surpass
development competition.
MANAGEMENT
PR CESS
involves setting objectives
and determining a course of
action (strategies to employ,
actions to take, and
resources required ) for
achieving those objectives.
 planning
involves setting objectives
and determining a course of
action (strategies to employ,
actions to take, and
resources required ) for
achieving those objectives.
it is a process which
coordinates human efforts,
assembles resources and
integrates both into a unified
whole to be utilized for
achieving specified
objectives
organizing
it is a process which
coordinates human efforts,
assembles resources and
integrates both into a unified
whole to be utilized for
achieving specified
objectives
nvolves influencing others
through direction,
inspiration, and motivation
toward the attainment of
organizational objectives
 leading
nvolves influencing others
through direction,
inspiration, and motivation
toward the attainment of
organizational objectives
Identifying
potential
candidates for
employment,
screening and
making final hiring
decisions
sttafing
Identifying
potential
candidates for
employment,
screening and
making final hiring
decisions
process or technique of
instructing, guiding,
inspiring, counselling,
overseeing and leading
people towards the
accomplishment of
organizational goals
directing
process or technique of
instructing, guiding,
inspiring, counselling,
overseeing and leading
people towards the
accomplishment of
organizational goals
ensuring that performance
does not deviate from
standards
involves:
1. establishing
performance standards
2. comparing actual
performance against
standards
3. taking corrective action
when necessary
controlling
ensuring that performance
does not deviate from
standards
involves:
1. establishing
performance standards
2. comparing actual
performance against
standards
3. taking corrective action
when necessary
what is a
MANAGER ?
 MANAGER
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.

In mostcases, they have the power to hire, fire,

discipline, do performance appraisals, and monitor
attendance. They also have the power to approve
overtime, and authorize vacations. He or she is the
boss.
levels of
MANAGEMENT
top or upper level
MANAGEMENT
Administrative or Managerial Management
This level of management consists of an organization’s
board of directors and the chief executive or managing
director. It is the ultimate source of power and authority,
since it oversees the goals, policies, and procedures of a
company. Their main priority is on the strategic planning
and execution of the overall business success.
executive or middle level
MANAGEMENT
The branch and departmental managers form this middle
management level. These people are directly accountable to
top management for the functioning of their respective
departments, devoting more time to organizational and
directional functions. For smaller organizations, there is often
only one layer of middle management, but larger enterprises
can see senior and junior levels within this middle section.
 lower level
MANAGEMENT
a.k.a Supervisory or Operative management
This level of management consists of supervisors, foremen,
section officers, superintendents, and all other executives
whose work must do largely with HR oversight and the
direction of operative employees. Simply put, managers at
the lower level are primarily concerned with the execution
and coordination of day-to-day workflow that ensure
completion of projects and that deliverables are met.
different types of
MANAGER ?
top MANAGERS
are in charge of a company’s strategy
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
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.
general MANAGER
responsible for managing a revenue-producing unit,
such as a product line, business unit, or a store.
They make decisions across different functions
within that unit. General managers typically get a
bonus or commission when the unit does well.
They report to their top executives and take
directions from them. The top executives explain
what the company’s overall plan is. They
subsequently set specific goals for the unit to fit in
with the plan.
 qualities of a good
MANAGER
1. Accountability 7. Honesty
2. Character 8. Decisiveness
3. Cultural affinity 9. Empathy
4. Prioritization 10. Positive attitude
5. Warmth 11. Competence
6. Patience 12. Flexibility