Q1W1 goals.

Usually, it helps to increase productivity in human-oriented work

situations, and it generates higher levels of production.
MANAGEMENT - Management is the process of working with and through
others to effectively achieve organizational objectives by efficiently using 4. Controlling
limited resources in a changing environment. (Kreitner.) It involves establishing performance standards by making sure that the
- Management is “the art of getting things done through people.”- Mary performance of employees is as per the plan. Controlling is both a
Parker Folett managerial function and a continuous process where the manager: (a)
gathers information that measures performance; (b) compares present
- Management is the process of reaching organizational goals by working performance to pre-established performance norms; and (c) determines the
with and through people and other organizational resources and has the next action plan and modifications for meeting the desired performance
following characteristics: parameters.
a. Management manners of continuous and related activities
b. Management encompasses on reaching organizational objectives. MANAGERIAL THEORIES
c. Management refers to a group of people involved in managerial Evolution of Management in the last eighteenth century has been evolving
endeavors. to a variety of contemporary management theory including the classical,
d. Management is intangible function. It cannot be physically seen but its behavioral, quantitative and new theories. Each theory is inclusive with a
presence can be felt view on specific time frames to meet the specific phenomenon and existing
management needs.
MANAGERIAL FUNCTIONS
The four major management functions that make up the management Classical Theories
process are PLANNING, ORGANIZING, LEADING, and CONTROLLING. 1. Scientific Theory - Ideas of early management by Frederick W. Taylor, Jill
Perth, and Gantt were formed by the impact of natural methodology and it
1. Planning emphasized rational thinking based on scientific work to improve individual
This is the first and foremost function that involves deciding tasks that must efficiency.
be performed to attain organizational goals. It includes outlining, 2. Administrative Theory - The administrative view proposed by Henri Fayol
establishing targets, making policies and so on. This activity is also and Max Weber highlighted the importance of operational effectiveness on
concerned with the success of the organization in the long run. the whole organization to develop a general theory explaining the good
management features of infrastructure.
2. Organizing
Organizing involves the act of identifying and assigning the tasks and duties Behavioral Theories
developed in the planning stages to subordinates to create a process and 1. Hawthorne Experiment - This study disclosed that Classical Theory is
put plans into action. People within the organization are given tasks to make mainly focused on the organization itself and employees with a power-
outputs that contribute to the goals of the division and to the company as a driven perspective concentrated on the point of view of human nature, the
whole. importance of individual attitudes and behaviors, motivate employees in
improving productivity. It suggests that employees will perform better when
3. Influencing they feel nurtured.
Influencing is also known as leading, supervising, motivating, or directing by 2. Interpersonal Perspective - This was proposed by Maslow and McGregor
guiding the activities of organization members towards the fulfillment of the (X&Y theory) that provided a basic foundation of the behavioral view on
human relations and was further derived from the Hawthorne experimental
results showing that the productivity of employees is affected by the
interaction and affective atmosphere of the management that leads to depend on the level of where he is in. There are three basic skills a manager
better performance. should have which are:
• Technical Skills - skills of being able to carry out tasks with
Quantitative Theory proficiency. These skills are specially important to supervisory
Quantitative Theory originated during World War II. A theory that resulted management because they are the closes to employees who
to orderly thinking by defining and solving complex problems. The use of produce goods or services for the company
quantitative measurement and computer modeling theory such as analysis • Human Skills - skills related to working with people and bringing out
of complex business problems which gradually become a branch of the the best in them. These skills include the ability to understand
management science and operations management perspective. human behavior and to communicate effectively with others.
• Conceptual Skills - skills of being able to see the organization as a
New Theories whole. These skills allow the managers to evaluate and scrutinize
1. System Theory - This emphasizes that there is a gradual integration of a the situation and develop courses of actions. It is necessary for the
new theory through a system point of view and the contingency perspective top management to have good conceptual skills.
which successfully meets the inconsistencies that sprouted in the Classical
and Behavioral Theories. Management Roles
2. Contingency Theory - In this perspective, the industry focuses on how to According to Henry Mintzberg, a Canadian academic author on business and
adapt the environmental change and believes that there is no "universal management, roles of a manager falls into three main categories namely:
approach" for the management to solve such circumstances since all Decisional, Informational and Interpersonal roles. Ten managerial roles fall
management challenges depend on varying conditions. It highlights that the into these categories which was divided into is main functions.
current time would always be the appropriate condition for the • Decisional roles - It involves using information and related with
management to handle specific and managerial variations. ways by which managers cope with problems and grab
organizational opportunities (e.g. entrepreneur, disturbance,
negotiator)
Q1W2 • Informational roles - It involves processing information. It is related
with tasks of acquiring and conveying information (e.g.
One of the characteristics of an organization is being organized by section, disseminator, spokesperson, monitor)
department or division. Top management is responsible on the entire • Interpersonal roles - It involves providing information and ideas. It is
organization or at least one of its larger sections. They develop goals, related with connections with several stakeholders regarding the
strategies, policies, and direct the business. Middle management oversees mission and direction of the company. (e.g. liaison, leader,
major departments or divisions and their specialized units. They monitor day figurehead)
to day results and make sure that performances are in compliance with the
organization’s standards. The first level of management supervises a small Responsibilities of Managers
work group composed of non-managerial workers. A manager is not only a team leader but also a planner, organizer, coach,
problem solver, decision maker etc. Most of the time, you will find them
Three Basic Managerial Skills busy doing lots of errands in the company because they have a lot of
In order to implement managerial functions such as planning, organizing, responsibilities. Below are some of their common responsibilities
influencing and controlling, managers must use variety of wide skills. A
skilled manager is consistent in delivering his ability at any functions of 1. Hire great people 7. Manage resources
management level. The degree of which type of skills must be used will 2. Show performance management 8. Improve processes and quality
3. Promote team development 9. Encourage self-development • Customer has something to do with person or group who purchase
4. Set overall directions 10. Communicate and disseminate products or service from a company
5. Support team members information • Supplier has something to do with individuals or business who
6. Produce unique quality outputs provides goods, raw materials or services to an entity needed for
their production
• Competitor has something to do with individuals or entity who
Q1W3
responds the rivals against another in the same industry
Environmental factors have always something to do with the performance of • Pressure Groups has something to do with environmental issue that
each organization. Assessment of the level of opportunities and threats affects the business through their project, demands, course,
helps the organization in decision making to align their strategies. A fast- campaigns etc.
paced industry, which is uncontrollable, may develop a scenario that can
change the condition of business just in no time. Businesses are greatly 3. Internal Environment
influenced by the environment. Internal and external factors impact firms. Internal environment is composed of factors within the organization
Therefore, managers must analyze the trade market and the environment to which impacts on success and approach of a firm. Structure, current
foresee where the organization will be in future. employees, management, and especially corporate culture which defines
behavior of employees. Some of the elements of internal environment
affects the organization as a whole, others affect only the managers.
Three Stages of Business Environment
• Company mission describe what the organization stands for and
The business environment involves all of the internal and external factors
why it exists.
that affect the company as a whole including employees, customers,
• Policies are principles that govern how situations should be
management, supply and demand and business regulations. It can be
addressed.
classified into three stages namely: general environment, operating
• Structure is the hierarchical arrangement of people and their
environment, and the internal environment
responsibilities.
• Resources are the people, facilities, infrastructure at an
1. General Environment (external)
organization’s clearance.
General environment is a phase of organization’s external factors that
affect the organization eventually. It includes the following elements: • Corporate culture is the organization’s personality. It consists values,
beliefs, attitudes and standard that define employee’s success
• Political/Legal has something to do with government policies,
passage of laws and politics, and regulatory body and processes.
Among these elements, corporate culture is essential to employees as
• Economic has something to do with taxation issues, exchange rates,
they are more motivated to work if their values and beliefs are in line with
inflations, stock market and other phases of economy
their leaders and in the organization as well. Firms with a positive company
• Social has something to do with demographic, war of talent,
culture are more likely to succeed and have a higher retention rate because
generation of learners, interest and values of public
they invest in their employees. As a result, organization with driven
• Technological has something to do with development and maturity
employees tends to be more productive and successful.
of technology through new ideas, concept and approach
Local and International Environment
2. Operating environment (external)
One of the reasons why businessmen expand their businesses are to
Operating environment is a phase of organization’s external factors that
increase their profit and to reach the growth of their firm in a period of
directly affect the business. It has a rapid effect on the organization. It
time. Some of the local firms who are seeking to expand internationally find
includes the following elements:
challenges in extending the following factors: (1) Political and legal in the middle where he needs to decide for stability, during high
differences- national environment will always be different from the other performance, during chaos and even in closing of his business as well. The
countries and it should be noted that adjustment will occur. (2) Cultural manager needs to understand the advantages and disadvantages of each
differences is one of the difficult aspect especially if your firm is not form in order to make sure that he is in the right decision. Common forms of
diversified (3) Economic differences such as exchange rates that varies business organizations depend on nature of ownership and its primary
country from country to country (4) Religions, genders and other restrictions activities.
and etc. What is the best structure of a business organization in terms of
ownership? The answer on that question depends on the conditions of the
Before entering into new ventures, manager needs to analyze the owner/s. There is no form better than any other as long as all business
positive and negative side of environment so he can assess what are the owners evaluate their own needs. Now, let us check the three basic forms of
necessary steps to be taken. PEST and SWOT are closely related approaches business organizations below.
to business analysis.
SOLE PROPRIETORSHIP – It is a form of business organization owned by a
• PEST - an acronym of Political, Economic, Social, and Technological, single person only and usually an individual who has a daily responsibility for
is an analysis that helps leaders determine the impact of running his business. Sole proprietorships are attractive to small investor
environmental factors on the business. PEST focuses on external and according to research vast majority of small business start out with this
aspects that affects the firm. It explores political and legal scenery form of business organization.
by looking political issues and regulations that influence the
business. Economic factors fall on economic environment and Advantages:
business cycle globally. Social has something to do with social - Formation: It's easy to form, set up and dissolve
mobility and consumer demographics and trends. Technological, on - Decision making: Offers complete control of the owner
the other hand, focuses on the research and development issues as - Tax benefit: No requirement to file business reports
well as the emerging technologies
Disadvantages:
• SWOT - an acronym of Strength, Weakness, Opportunities, Threats. - Resources: Has a limited resource and might have difficulties in
SWOT analysis focuses on both internal and external environment raising initial funds
aspects of organization and best done after PEST scrutiny. It - Liability: Owner will be directly responsible for any losses - Tax
captures the external factors in the opportunities and threats benefit: The owner is taxed not the business
segments. Prospects in developmental performance of the company - Continuity: Business exists only during owner’s lifetime and will be
will be opportunity and threats if the factors will slow down the terminated upon to demise, insanity or imprisonment
performance of the company. In analyzing internal aspects,
resources advantage will be the strength and its deficiency will fall PARTNERSHIP – it is a form of business organization owned by two or more
on weakness. people who shares business. Partners should have mutual and legal
agreement in sharing their money, property, skills and resources that will be
needing to operate their business and the division of their profits as well.
Q1W4 Advantages:
Before running a business an entrepreneur or a manager considers - Less expenses: It's easy and inexpensive because two or more
how his business should be structured. This decision making is very people will share the capital of the business
important because it will affect the business in all stages of development of - Commitment: There will be shared financial commitment among
the organizations. From the beginning where the paper works is necessary, partners
 - Complimentary skills: there will be sharing and utilizing of skills, - More costly: A lot of meeting occurs in corporation, monthly, semi
strength, resources of each partner annual and annually sessions that incur expenses. Corporation hires
a legible consultants for their business that are high-paid individuals
Disadvantages: Aside form the nature of ownership, business organization can be
- Liability: joint and individual liabilities. Partners are not only liable classified according to its primary activities such as: (1) Service – a business
to their actions but also for the decision made by other partner that offers services in exchange of a fee (2) Merchandising – a business that
- Disagreement: disagreements in decision making might occur if buys and sells product whether it is raw or finished material with a certain
partners will not consult to each other before compromising mark up to earn profit and (3) Manufacturing – a business that buys raw
- Less profit: two or more people will share profit of the business materials and transform it to a certain finished product and then sell to
consumers, wholesalers, distributor and other large scale groups.
• CORPORATION – it is a form of business organization owned by
shareholders. Shareholders are investors who has put money into The Role of Business Organization in Relation to Society and Economy
business. There is an election of board of directors like president, One of the roles of business organization in society is to produce
vice president who will be responsible in every different policies for goods and services that satisfy the needs and demand of community. We
the corporation. There is also person appointed to monitor the day have implicit assumption when we talk about the role of business in society.
to day operation of the corporation. In this form of business Others assume that business exist separate from society. However,
organization, shareholders will not be liable for the debts of the businesses are one of the factors how we constitute a society and how do
corporation and even on the death of the shareholders, corporation we live and cope in society. Businesses has a high chance of success if they
still continues because shares in the company is transferable. operate in a stable society and o. And a society composed of a competitive
business organization is a stable society in vice versa. Thus, there is a mutual
Advantages: benefit of corporate social responsibility between business and society as a
- Separate legal personality: Shareholders of the corporation has a whole.
separate legal personality therefore they will not be liable for the
debts and negligence of the corporation. The amount invested by Most of the organizations are aiming to grow, expand
the shareholder will be the only lost of the shareholders internationally, and earn commensurate profits. Consequently, they can
- Easy to raise funds: In corporation you can sell shares therefore keep their old client, find more partners, get more opportunities and create
there’s an ease raising funds - Continuity: Investors has a separate more jobs. Once the business established its credibility, they enter into
identity in corporation. This means that even in demise of the corporate social responsibility whereas they practice involving their
shareholder, shares could be transferred to another investor organization in aiding or helping the in needs. Some of the organization
- Credibility: A word corporation in the name of the business attracts involve their company in funding a program that concerns environmental
more customers, partners and the community as well factors. There are multiple ways and means by which a company can express
that it is socially responsible such as company donates money or goods,
Disadvantages: spending time for a cause with homeless and free education etc.
- Long time and more money spent in organizing: Unlike sole
proprietorship, forming a corporation takes a lot of time and money.
- Paper works: a lot of documentation requires in forming a Q1W5
corporation. It requires annual reports and other documents to be What is economic development?
submitted in regular time Economic development is the term used by economist and
- Higher Tax: In corporation, individual level and the corporate itself policymakers and have frequently used for the last decades. It has a direct
are subject to higher taxes relationship with the term environment.
 • Economic development is the process which state improves its Characteristics:
economy and social living of its people. It can be defined as efforts • Agricultural function is the main sources of GDP rates and also
that seeks improvement of life and community. provides employment opportunities to the nation.
• Economic development is the development of economic wealth of • Influence customs and beliefs of the country.
the country or regions for the well-being of their inhabitants. • Te standard of living and per capita income in this stage are low.
• Economic development measures not just a monetary terms but • Limited technology
also some indicators in education, health and social using Human
Development Index 2. Pre-take off stage – The second stage of economic development
where society begins to develop trade viewpoint. It includes
FIVE PHASES OF ECONOMIC DEVELOPMENT different factors which are related to production.
Categorizing countries with label of “developed”, “developing”, “first
world” or “third world” are based on judging country’s development. What Characteristics:
is the meaning and difference between those labels? Why countries are • There is an increase of technology existence
moving forward and why others are labeled “developing”? Lots of economist • There is an export opportunity for raw materials
and geographers studied the process how will one country be developed • Social mobility of individuals begins
and attain its higher economic level. • Flux social structure
Five stages of economic development were explained by Mr. Walt • widespread and enhanced investment in changes to the physical
Whitman Rostow, an American economist, in his book entitled “The Stages environment to expand production
of Economic Growth” in 1960. He said that in order to be a developed • Developed infrastructure facilities
country, one nation must pass the five phases namely: (1) traditional stage, • Capital and production of food grains increases
(2) pre-take off stage, (3) take off stage, (4) maturity stage, and (5) high
mass consumption.
3. Take-off stage – The third stage of economic development which is
called stage of economic development. In this stage,
industrialization begins to occur.

Characteristics:
• “secondary sector” expands (goods producing)
• Technological and political breakthrough occurs
• Urbanization increases
• National income increases
• Entrepreneurship discoveries in their inner anouter capability
• More employment opportunities were offered through new schemes

1. Traditional Stage – The first stage of economic development 4. Maturity stage – the fourth stage of economic development where
whereas the economy is agricultural-based dependent where most new technologies interventions help the old scheme to come up
of societies begins before progressing towards next stage. It is a with innovative structure
“primary sector” economy.
Characteristics: those who have money multiply, while an influx of cheap rural labor
• Employment opportunities and national income continues to rise to the cities holds down wages
• Latest techniques were spread 4. Human capital based – it refers to the skills and knowledges
• Large scale of investments earned by people through trainings and seminars that contributes to
• Diversification of multiple industries the growth of economy.
• Rapid development of transportation infrastructure 5. Post-demographic transition – This theory refers to the change of
• Innovative entrepreneurial skills increase birth an death rates from high to low with the interventions of
advance technologies and education.

5. High mass consumption stage – the fifth stage of economic What is the impact of these developmental stages to business
development where economy is fully developed and self-sustained. environment?
Employment opportunities help the community to earn profit that
Characteristics: helps the government to provide services to its people. Economic
• High national income development serves a retention of opportunities for jobs and
• Advance in research and development investments within the country. The taxes are used by government to
• Optimum utilization of resources provide services like transportation, infrastructure, recreational,
protections and safety services and etc.. A developed country receives a
• High per capita income
lot of investments from private sectors that creates job opportunities
• Widespread consumption of high-end consumer goods
that leads to country’s wealth.
• Urbanization
Economic growth is important for the developing countries as it
• Huge industrialization dominates the country
helps to solve macro-economic objectives such us it reduce poverty and
unemployment, it improves public services and helps GDP (Gross
W.W. Rostow emphasizes that countries go through each of these
domestic product) ratios to increase. Therefore, the business
stages relatively, and set out a number of conditions that were likely to
environment will rise up accordingly once the economy of one country
occur in investment, consumption, and social trends at each state. The
has developed.
transition periods may occur at varying lengths from region to region
and from country to country but not al the condition needed to arise.

On the other hand, some geographers and economists do not

support the theory of W.W. Rostow as it is only biased in western
countries and still believe to adapt the following stages in economic
development.

1. Malthusian – A theory that economic growth depends on the

population of certain area
2. Government-led – (Local Economic Development) It is an
approach which encourage and allows partnerships between local
and national to achieve sustainable economic growth
3. A la Kuznets – (government vs. environment) progression
suggests that early in development, investment opportunities for