Org
Org
Exerts a great influence on many aspects of human life. II. Design & Implement Feedback Loops
A good manager must be knowledgeable regarding the III. Promote Personal Mastery
organization process to ensure that an effective system
IV. Plan for Intelligent Fast Failure
is established to carry out the objectives and strategies
formulated in the planning stage. V. Steal Best Practices
LEARNING ORGANIZATION VI. Cultivate a Common Vision
Transforms and innovates itself though continuous NATURE OF ORGANIZATIONS
learning and knowledge acquisition
The term “organization” became prominent in
Learns to adapt and confront problems management during the late 1920s and early 1930s.
Some theorists define it as a social group that is
Employees are motivated to continuously
oriented toward a purpose. Several other theorists
practice knowledge management and utilize them in
define an organization as having well-coordinated
decision-making.
processes and interacting with its environment.
TRAINING OF EMPLOYEES
ORGANIZATION
is one of its top priorities.
A social group that has well-coordinated
ELEMENTS processes and activities for the purpose of achieving its
Learning Organization objectives and is connected to the environment where
it exists.
I. SUPPORTIVE LEARNING ENVIRONMENT
AS A MANAGEMENT FUNCTION
II. AVAILABILITY OF LEARNING PROCESSES AND
PRACTICES Entails the structuring and grouping of jobs and
ensuring that these are performed by qualified and
III. LEADERS
competent personnel.
IV. EMPLOYEES’ DELEGATION WITH TASKS
The organizing process brings together all the
SUPPORTIVE LEARNING ENVIRONMENT human, physical, and financial resources and integrates
them with related jobs and positions. This process also
Employees are not afraid to voice out their opinions, ensures that authority and responsibility are well-
commit mistakes, or present their points of view. defined and internally coordinated within the
AVAILABILITY OF LEARNING organization.
PROCESSES & PRACTICES
LEADERS
ORGANISTIC STRUCTURE
The organizational structure is the framework that The grouping of similar functions, jobs, and
shows how each component of the company relates to tasks into departments. It may be:
each other. • Functional – where personnel and tasks related
CONFIGURATIONS & ELEMENTS OF to a single company operation are grouped
ORGANIZATIONAL STRUCTURE together
Formalization
DIVISIONAL GROUPING
Ex: Matrix Structure – used when both technical • The flow of authority of the functional manager
expertise & product innovation are crucial in meeting is vertical, while that of a project manager is
organizational goals; instead of establishing a hierarchy horizontal
or division, relationships within the company are
• Projects within a matrix structure are usually
arranged in a grid, where employees report to
assigned specific frames.
functional and product managers.
MATRIX ORGANIZATIONAL STRUCTURE ADVANTAGES
This design is suited for medium-sized
MULTI-FOCUSED GROUPING
companies that make multiple products.
Employees from different departments can be
2 Types of Matrix Structures
selected to work on a project. Management, therefore,
multi-focused grouping
can select the best combination of talent to work on a
Functional Matrix organizes the company in a way that specific project. This kind of setup is beneficial to the
gives functional managers primary authority. personal and professional growth of employees.
It can also quickly respond to a market or • The allotted time for each task is maximized
customer demand because of the time frame allotted since the hierarchy of management level is
for the project. removed, which simplifies the task of reporting
to immediate superiors and top management
MATRIX ORGANIZATIONAL STRUCTURE
DISADVANTAGES • Productivity is increased since the entire group
MULTI-FOCUSED GROUPING is working for a common goal, and the talents
and skills of each employee is maximized
There is conflict of interest among project
managers and functional managers in the allocation of • One disadvantage is time management since
resources. Conflict of loyalty is also an issue among coordinating the teams requires constant
employees since they are reporting to two managers, communication and frequent meetings
the project manager and the functional manager. The
• Employees may also lack motivation since team
number of managers involved entails high
performance is valued rather than individual
administrative costs for the company. The employees
contributions
also have heavier workload because they have
additional work in the project aside from their regular VIRTUAL NETWORKING GROUPING
tasks.
The latest approach to organizational design
HORIZONTAL GROUPING that takes advantage of the latest advances in
information and communication technology.
Eliminates the complexities if hierarchies and
Technology is used in sharing information, completing
divisions. Instead, it establishes a structure with little or
tasks, and communicating.
no levels between employees, middle managers, and
top management. Employees are organized into general This design is advantageous to a small company
core processes or operations and all departments in the since it requires fewer investments, reduces
company work together in all tasks. administrative costs, and is flexible to changing needs.
Promotes flexibility and quick response to One of the disadvantages of this design is that
changes. It also directs the attention of all employees managers do not have hands-on control over the
towards the production and delivery of quality products separate companies and their employees. It requires a
and services to customers. It gives a broader view of lot of time to build and cultivate relationships among
organizational goals and promotes teamwork and the workforce since face-to-face communication is
collaboration. limited. They may have diminished loyalty to the
company or may feel unnecessary and expendable in
This design is also costly because it requires
their current position.
rigorous training of employees to enable them to adapt
to a horizontal structure. Implementing this structure Network Organizational Structure
requires a lot of changes in the work culture, job design, virtual network grouping
management philosophy, and information and rewards
system of the company. A company using this structure hires only a few
employees, which amounts to lesser costs for salaries
TEAM-BASED ORGANIZATIONAL STRUCTURE and benefits. A company enjoys more flexibility and can
HORIZONTAL GROUPING be more responsive to change since all the functions are
outsourced.
• Organizes employees into teams whose
members perform varied functions However, the disadvantage is that independent firms
may be hard to monitor. To do so, the company may
• Employees work together in accomplishing
have to spend for expensive equipment to monitor
various tasks, seeking solutions to problems,
these firms. There is no corporate culture and employee
and identifying & engaging in business
loyalty is questionable.
opportunities
OTHER TYPES OF ORGANIZATIONS Bureaucracy
Empowerment
JOB ANALYSIS
5. Work conditions
RECRUITMENT
ATTRACTING qualified applicants to occupy STATUS OF EMPLOYMENT:
vacant positions in the company
1. Contractual/Project-Based Employees
PROCESSES THAT THE MANAGEMENT MUST COMPLY:
- contract to work for a limited period.
1. Know the goals of organization and the reasons
2. Probationary Employee
for hiring people.
- contract to work for a 6 months and then
2. Think of prioritizing jobs depending on the kind
of job performance needed for the vacant evaluated before becoming a regular.
positions.
TRAINING AND DEVELOPMENT
3. Require the applicants to fill out the company's
application form Training - an organized activity to improve their
current performance
SOURCES OF APPLICANTS:
Development - enhancement of the
Internal Applicants - promotion competencies to help them achieve their total
growth.
External Applicants - recruitment
NEW EMPLOYEE ORIENTATION PROGRAM:
*Referrals - a company's own employees recommend
suitable Orientation - the initial training of newly-hired
employees.
applicants
THE TRAINING PROCESS
*Equal Employment - companies should consider this
during 1. Pre-training Assessment - to know the needs of
employees
recruitment.
2. Designing the Training Program
SELECTION
TECHNIQUES:
Preliminary interview and psychological testing
done by HRD Lecture
TYPES OF PSYCHOLOGICAL TESTS: Demonstration
1. Mental Ability Test or IQ Test - a test consists Computer-based Training
of questions.
Programmed Instruction
2. Aptitude Test - measure specific abilities
Virtual Reality
3. Personality Test - measure aspect of behavior
Case Study
REQUISITIONING DEPARTMENT - processes the requests
to fill in vacancies once the applicant pass the initial Role-playing
testing. Teambuilding
PLACEMENT 3. Training Implementation
Last part of hiring process 4. Training Evaluation
AFTER THE CANDIDATES ACCEPT THE JOB OFFER: CRITERIA FOR EVALUATION:
1. Must submit the pre-employment requirements a. Reactions - aspects of the program
2. Undergo Medical examination b. Results - benefits of the program
3. Sign the employment contract c. c. Recall - what has been learned
d. d. Retrieval - how easily info is recalled and c. Commission - achieved sales quota
applied
d. Group incentives - a team achieved a production
COMPENSATION AND WAGES target
Direct compensation - monetary in nature 4. Payment based on skills - number of skills the
employees gain
Indirect compensation - non-monetary benefits
(like hospitalization and summer outings) 5. Payment based on knowledge or credentials -
employees who attend seminars and conferences
COMPENSATION GUIDELINES:
6. Executive payment - given to top management
1. Nature and environment of a particular
industry 7. Special payment - given in special cases
- Base/Basic pay: fixed minimum pay d. Night differential payment - additional 10% of
basic rate
3. Confidentiality of employee salaries
who worked between 10 pm to 6
COMMON MODES OF PAYMENT:
am
1. Payment for time worked
e. Service charge
a. Across-the-board increase - same rate of
f. Severance or Separation pay - there's a need of
adjustment for all
authorization cause
b. Merit Increase
g. Retirement pay - shall receive 1/2 month
c. Cost-of-living allowance (COLA) - to help them
salary
cope with
h. Thirteenth month pay
the standard of living and inflation
EMPLOYEE BENEFITS
d. Seniority Pay - based on number of years of
service. 2 main groups: Government-mandated benefits
which is required by the law and Voluntary
benefits which is voluntary given by the
2. Flat Rates - pay employees with the same amount of company
money regardless of rank.
GOVERNMENT-MANDATED BENEFITS:
3. Compensation through incentives - payments based
1a. SSS Benefits - for employees working in private
on output
1b. GSIS Benefits - for government employees
a. Merit Pay - outstanding performance in a certain
task 2. Employees' compensation program - given to private
and government employees in case of injury, sickness,
b. Piece rate pay - product produced
& death
3. Pag-ibig Benefits - housing loan, salary loan, & CONTINGENT PAY - pay scheme given
calamity loan
A. Individual Contingent Pay
4. Philhealth Benefits
1. Pay for performance scheme
5. Service Incentive leave - 5 day leave
2. Pay for competency
6. Maternity leave - normal delivery/miscarriage: 60
3. Pay for contribution
days
4. Pay for skills
- caesarean delivery: 78 days
5. Pay for service
7. Paternity Leave - last up to 7 days
B. Group Contingency Pay
8. Special leave for women - with gynecological
disorder 1. Team-based pay - based on the achievement of
certain project worked by group of employees
- 2 months leave with pay
2. Oragnization-wide pay - based on the achievement
VOLUNTARY BENEFITS:
of organizational goals
1. Vacation leaves - 5, 10, or 15 days
- Two types:
2. Sick leaves - more than 5 days
a. Gainsharing
3. Emergency leaves - 3 days or more
b. Profit sharing
4. Summer outings - organized by company
PERFORMANCE APPRAISAL
5. Sportsfest - organized by company
known as PERFORMANCE
6. Rice Subsidy - 1 sack of rice per month
REVIEW/EVALUATION
7. Meal Subsidy - meal discounts
employee performance is DOCUMENTED &
8. Shuttle service - free transportation service
EVALUATED
9. Hospitalization - given health card
determines employee effectiveness
10. Group life insurance program
helps in addressing employee-related
11. Bonuses
concerns that affect long-term
12. Profit Sharing
organizational performance
13. Stock Options
PURPOSES:
14. Christmas parties and packages
1. Needs assessment
15. Cash bonuses - given at the end of the year
2. Employee movements
16. Emergency loan
3. Basis for merit increase
17. Free uniform and laundry allowance -
4. Legal Concerns
provided upon regularization
5. Development
18. Executive perquisites - additional benefits
given to top management. 6. Channel of communication
REWARDS SYSTEMS 7. Source of motivation
additional payments on top of basic salaries METHODS:
1. OBJECTIVE METHOD 2. Harmonization of terms and conditions of
employment - conditions and benefits as stated
a. Measures of actual output - number of
in the contract
orders processed
3. Emphasis on mutuality
b. Performance Test - evaluates an
4. Policies and practices for communication -
employee using a standardized condition clear and honest