ORGANIZATIONAL MANAGEMENT

INTRODUCTION

• The driving force behind every organization is

its management team.
• Different teams operate in different ways.
• There is no universal accurate management to
define the one that is best.
• Just the concept that explains why some
operations were managed successfully in the
past to suggest what can be done for future
success.
• Some companies have shown steadiness if not
spectacular growth for maintaining reputation
of conservatism.
• Others have a dynamic reputations built on
rapid growth with impressive earnings.
• Their reputations have demonstrated their
divergent management philosophies
converted into practice.
• The organizational structure of small enterprise may
be very simple.
• The owner is usually the manager. He has daily
contact with all people of his organization.
• He is the one who establishes the policies. He assigns
the job to be done, and follow up on the job for the
purpose of direction and coordination.
• As his company grows bigger, the problem of
organization for grouping, supervising and serving
operations become more complex.
• The company may have the most modern
plant and equipment, a highly skilled and
experienced labor force, ample materials and
financial resources, yet become failure in its
purpose of making profit.
• There may be many reasons and
circumstances responsible behind this failure,
but the most frequent reason is poor
management.
WHAT IS ORGANIZATION?

• Organization is a group of
individuals who are cooperating
willingly and effectively for a
common goal.
• It is nothing more than the
mechanism by which
administration directs,
coordinates and controls its
business.
• It is indeed, the very foundation of
administration. To be specific,
organization seeks to know who is to
do and what is to be done.
• Organizations are structured to
promote better management.
However, it is the performance of the
people who fill the positions that
determines the success of the
enterprise and not the organizational
design itself.
• A good executive may be able
to secure good results with a
poor organization, and a good
organization may produce
results form a poor executive.
• But the ideal setup is, a
combination of a good
organization and a good
executive.
• When an organization is
structurally ill designed, when
it passes for a makeshift
arrangement, administration is
made difficult and ineffective.
On the other hand, when it is
logical, clear-cut and
streamlined, the paramount
need of administration has
been met.
• Apparently, there is no ideal
organization designed to
emulate. A management
structure is only a vehicle used
to attain the objectives and
goals of an institution, and
therefore, must be realistic and
responsive to the call for a
change of those needs.
STRUCTURAL ORGANIZATION
• Structural organization is the formal
arrangements that are established to
coordinate all activities in order to implement
a given strategy. Thus, structure reflects the
anatomy of a firm through its focus on
mechanism and processes that link both
vertically and horizontally the various parts of
an organization.
The Structural Elements of an
Organization

• Men. These are the different

members of the organization
starting from the very top of the
last workman in the enterprise.
• Materials. Represents the
materials necessary in the
distribution of functions or in the
attainment of its objectives.
• Machine. The tools necessary in
producing its desired output.
• Methods. The procedures and
ways used in the course of its
actions
• Money. The financial resources
of the organization.
The Major Elements of Organizational
Structures

• Distribution of functions. The

functions to be performed, the
groupings of functions, and the
vertical and horizontal task
relationships among functions.
• Vertical and horizontal authority
relationships. (who are the
authority to do what)
• Communication and decision
processes. The manner in which
formal decisions are made and
by whom.
• Policies. The decision, rules or
guidelines established.
• The common failure of management is its
failure to adopt its organizational
structures, policies and procedures, to
the growth in size and complexity of the
enterprise.
• This is true particularly when the owner-
manager has been successful with his
small enterprise.
• Because of fear to change his way of
doing things as his company grow larger,
lest he lose one ingredient that has made
him successful, too which he is not at all
sure which ingredient that may be.
• According to Peter Ducker, Traditional
structures are no longer adequate for
today’s complex organizations.
• A management structure is a means of
attaining the objectives and goals of an
institution. Thus should be responsive to
respect needs and changes on those
needs.
PRINCIPLES OF GOOD ORGANIZATION

• Business organization has

conditions peculiar to itself. A set
of rules cannot be laid down that
would be applicable to
organization of all enterprises.
However, certain underlying
principles can be given and among
them are:
• Principle of Objective. A clear
and complete definition of the
objective must be known.
• Any business concern or any
individual must adhere to a
definite purpose or aim.
• For example, if the aim is to make
plans and construct a project,
then the entire organization must
be built by that idea, and those in
the company must think and act
in terms of the quality of work.
• The objective serves as the guide
to future planning and action.
• It enables everybody to act
consistently according to a
common goal.
• Analysis. a sound business
judgement attempts to build
an organizations through full
knowledge of the
requirements of the business.
There should be a study as to
whether the project could be
finished at the right time and
at the right price the client will
be able to pay.
• Simplicity. The simplest organization
that will serve to attain the desired
objective is considered the best. All
activities which are not absolutely
necessary, should be eliminated, and
those retained should be handled in
the simplest practical way. Creation
of position should be based on
paramount necessity and all
activities which do not pay in terms
of pesos and centavos should be
eliminated.
• Functionalism. The
organization should be built
around the main functions of
the business and not around
the individuals. A function is a
normal or characteristic way of
doing a task that stands out
distinctively by itself. The
nature of the business
determines the main function
of the business.
• The nature is the proper basis
for organization to be
established. If an organization
of any concern is built around
the functions, proper
distribution of work could
easily be done, thus,
eliminating any one man to
become so powerful and so
dependable upon to be
indispensable.
• Departmentalization. In big
organization, the scope of
operation can be very broad,
necessitating departmentalization
to achieve a smoother flow of
operations. Departmentalization
can be through functions,
products, location, or by projects
of the organization.
• Centralization of Authority and
Responsibility. In every organizations
there should be centralized executive
control or command authority. This is
necessary in order to have authority and
responsibility definitely fixed. When
there is unity of command, every person
knows what he can perform within his
scope of authority, knows the things for
which he is responsible of, and also
whom to report and consult in case of
problems or doubts.
• Limited Span of Control. The
number of subordinates an
executive can manage
effectively.
Organization and Business
• Business has been defined as an organization
of people with varied skills, which uses capital
and talents to produce goods or services,
which can be sold to others of more than their
costs, or it may be considered as; the system
through which economic activity was
organized by those who seek to make profit.
• Fundamentally, most construction
enterprises are selling the time of their
workers, their machineries, plant,
equipment, and money.
• The efficient use of the time and these
assets will determine the amount of
profit to be realized, which is the primary
goal of investing efforts and capital in
construction business.
• To be effective, human activities have to
be coordinated. Efficient coordination
requires much more than an
organizational framework.
• At the top of the foundation is
coordination. This is the attributes that
integrates all the elements of an
organization into an operating unit.
• Experienced proved that higher
accomplishment is dependent upon
the interest and willing cooperation
of both the project supervisor and
the workers.
WHAT IS MANAGEMENT?

• Management is a process. It is the

process of directing and
facilitating the work of people
who are organized for a common
purpose. It is the process of
combining the efforts and
resources of individuals with a
common interest to achieve a
desired objective.
• Management is a function. It is
the function of getting things done
through the efforts of others. It is
the application of authority and
the assumption of responsibility. It
is an art, the art of handling
people. Management properly
applied, gives individuals in the
same organization the feeling of
security, of recognition, of
opportunity and of belonging.