Diocese of Bayombong Educational System (DBES)

Saint Louis School of Solano, Inc.

Solano, Nueva Vizcaya
Telefax # (078) 326 – 7458
e-mail: [email protected]

SELF-PACED LEARNING MODULE

Subject: ORGANIZATIONAL MANAGEMENT
Teacher:

FIRST QUARTER

Name of Student: ____________________________ Year and Section: __________________

Week No.: 1-2 Inclusive Dates: ___________________

Content Standard The learners have an understanding of basic concepts and theories of
management
Performance The learners shall be able to apply management theories & concepts in
Standard solving business cases.
Most Essential Week 1 Explain the meaning, functions, types and theories, of
Learning management
Competencies Week 2 Explain the functions, roles and skills manager
(MELCs)
21st Century Learning Critical Thinking, Creativity and Information Literacy
Skills
Core Values Innovation, Efficiency, Open-Mindedness

MODULE 1: NATURE AND CONCEPT OF MANGEMENT

Week 1 Learning Targets/ Specific Objectives Remarks Activity Score
Day 1 At the end of the lesson, the students should be able
to 4 to:
 Discuss the meaning and functions of
management; and
 Explain the various types of management
theories.
Week 2
Day 1  Explain the functions, roles and skills of a
to 4 manager.
TOTAL

REFERENCES: Organizational Management, Marvic F. Flores, DBA, Page 1 to 32

http://www.referenceforbusiness.com
https://en.wikipedia.org/wiki/W._Edwards_Deming

https://en.wikipedia.org/wiki/Ludwig_von_Bertalanffy

https://pubsonline.informs.org/doi/10.1287/mnsc.10.2.367

Management

Management is a universal phenomenon. It is a very popular and widely used term. All
organizations - business, political, cultural or social are involved in management because it is the
management which helps and directs the various efforts towards a definite purpose. According to
Harold Koontz (1984), ―Management is an art of getting things done through and with the two people
in formally organized groups. It is an art of creating an environment in which people can perform and
individuals can cooperate towards attainment of group goals‖. According to F.W. Taylor (1915)

1
―Management is an art of knowing what to do, when to do and see that it is done in the best and
cheapest way.
Management is a purposive activity. It is something that directs group efforts towards the
attainment of certain pre – determined goals. It is the process of working with and through others to
effectively achieve the goals of the organization, by efficiently using limited resources in the changing
world. Of course, these goals may vary from one enterprise to another, e.g.: For one enterprise, it may be
launching of new products by conducting market surveys and for others, it may be profit maximization
by minimizing cost.

Management is a process in designing and maintaining an environment in which individuals,

working together in a groups, efficiently accomplish selected aims. (Weihrich and Konntz, 1993).
This basic definition needs to be expanded in the following ways:
1. As manager, people are employed to carry out the specific functions. These functions which are
commonly referred to as managerial functions are planning, organizing, staffing, leading and
controlling among others.
2. Management applies to any kind of organization. Management is not restricted to any particular
organization. Any organization, as long as human and other resources call for management.
3. Management is important to level in an organization. Whatever position you find yourself in an
organization, you will feel the presence of management.
4. The aim of all manager whether a senior manager or a junior one is the same. It is to make profit.
Making profit demands that the right decisions are made so that the resources available to an
organization are used without wastage.
5. Managing is concerned with productivity.

Principles of Management
The contribution of some key players in the development of management as a discipline are the
following:

 Frederick Taylor’s Principle of Management – Taylor’s principles of management were aimed

at achieving harmonious and corporative group relationships, developing the full potentials of
the employees and organizations so as to work for maximum output and replacing rule of thumb
with organized body of knowledge. Jones and George (2003) summarized Taylor’s principles of
management into four.

They are further summarized as follows:

1. Improvement in Tasks Performance – Taylor emphasized that there is every need to study the
way tasks are performed by workers, through gathering of all the informal job knowledge
that they possess and to experiment with ways of improving how tasks are performed by
them.
2. Codification of new methods of performance into written rules and standard operating
procedures and processes – when best procedures or methods were identified, Frederick
Taylor recommended their recording and stipulation as standard procedures to be taught and
applied to all employees performing similar tasks. In other words that became the standard
mode of operation for that task. Taylor believed that could help ensure efficiency throughout
the entire organization.
3. Selection and training of employees with special abilities to carry on tasks according to
established patterns – Taylor posited that to increase specialization and efficiency, there was
the pressing need for workers to understand thoroughly their tasks via training so as to
perform such tasks.
4. Developing a good system of remuneration for workers that excel – Taylor, being a manager
with flair for productivity, recommended bonus pay system and some percentage for hard
working employees who exceeded the required minimum acceptable levels of performance.

 Max Weber’s Principles of Management – developed formalized system of organization and

administration with a view to enhance effectiveness and efficiency in operations. He placed
much interest in the authority structure of organizations and developed the principle of
bureaucracy. He emphasized that hierarchy, authority and bureaucracy were necessary
ingredients for success of all social systems (Agbaeze, 2006).

In their analysis of Weber’s theory of bureaucracy, Jones and George (2003) summarized
the principles of management from weber’s perspective as follows:
 1. A manager’s formal authority emanates from the position being held. Every manager is
capable of commanding obedience and respect as a result of the position he/she occupies and
that this permits the manager to control and direct compliance of the subordinates.

2. Occupation of position is derived from a manager’s performance. This implies that job
related skills should determine the kinds of positions managers occupy.

3. Clearly specified extent of authority, responsibility and relationship to other positions in the
enterprise. This principle warrants every employee to know what is expected of him/her and
what is expected from others as well. This permits for accountability.

4. Hierarchical arrangement of positions. This permits for who reports to an employee and who
such employee is to report to.

5. Effective control of organizational member’s behavior. Weber opined that this can be
achieved where well defined systems of rules, standard operation procedures and norms are
clearly created. These provide behavioral guidelines and dictate best practices which can
enhance improvements in accomplishing organizational tasks.

 Fayol’s Principles of Management – Henri Fayol, identified fourteen principles in management

that he believed are essentially fundamental in the drive towards enhancing efficiency in the
process of managing enterprise. These principles form the foundation of contemporary
management theory and practice.

1. Division of Labor: allows for job specialization.

• Fayol noted firms can have too much specialization leading to poor quality and
worker involvement.

2. Authority and Responsibility: Fayol included both formal and informal authority resulting
from special expertise.

3. Unity of Command: Employees should have only one boss.

4. Line of Authority: a clear chain from top to bottom of the firm.

5. Centralization: the degree to which authority rests at the very top.

6. Unity of Direction: One plan of action to guide the organization.

7. Equity: Treat all employees fairly in justice and respect.

8. Order: Each employee is put where they have the most value.

9. Initiative: Encourage innovation.

10. Discipline: obedient, applied, respectful employees needed.

11. Remuneration of Personnel: The payment system contributes to success.

12. Stability of Tenure: Long-term employment is important.

13. General interest over individual interest: The organization takes precedence over the
individual.

14. Esprit de corps: Share enthusiasm or devotion to the organization.

Managerial Thoughts and Theories

The Classical School

The classical school is the oldest formal school of management thought. Its roots pre-date the
twentieth century. The classical school of thought generally concerns ways to manage work and
organizations more efficiently. Three areas of study that can be grouped under the classical school are
scientific management, administrative management, and bureaucratic management.
 Scientific Management
In the late 19th century, management decisions were often arbitrary and workers often
worked at an intentionally slow pace. There was little in the way of systematic management and
workers and management were often in conflict. Scientific management was introduced in an
attempt to create a mental revolution in the workplace. It can be defined as the systematic study
of work methods in order to improve efficiency. Frederick W. Taylor was its main proponent.
Other major contributors were Frank Gilbreth, Lillian Gilbreth, and Henry Gantt (1907).
Scientific management has several major principles. First, it calls for the application of
the scientific method to work in order to determine the best method for accomplishing each
task. Second, scientific management suggests that workers should be scientifically selected
based on their qualifications and trained to perform their jobs in the optimal manner. Third,
scientific management advocates genuine cooperation between workers and management based
on mutual self-interest. Finally, scientific management suggests that management should take
complete responsibility for planning the work and that workers' primary responsibility should be
implementing management's plans. Other important characteristics of scientific management
include the scientific development of difficult but fair performance standards and the
implementation of a pay-for-performance incentive plan based on work standards.
Scientific management had a tremendous influence on management practice in the early
twentieth century. Although it does not represent a complete theory of management, it has
contributed to the study of management and organizations in many areas, including human
resource management and industrial engineering. Many of the tenets of scientific management
are still valid today.
 Administrative Management
Administrative management focuses on the management process and principles of
management. In contrast to scientific management, which deals largely with jobs and work at
the individual level of analysis, administrative management provides a more general theory of
management. Henri Fayol is the major contributor to this school of management thought.
Fayol was a management practitioner who brought his experience to bear on the subject
of management functions and principles. He argued that management was a universal process
consisting of functions, which he termed planning, organizing, commanding, coordinating, and
controlling. Fayol believed that all managers performed these functions and that the functions
distinguished management as a separate discipline of study apart from accounting, finance, and
production. Fayol also presented fourteen principles of management, which included maxims
related to the division of work, authority and responsibility, unity of command and direction,
centralization, subordinate initiative, and team spirit.
Although administrative management has been criticized as being rigid and inflexible and the
validity of the functional approach to management has been questioned, this school of thought
still influences management theory and practice. The functional approach to management is still
the dominant way of organizing management knowledge, and many of Fayol's principles of
management, when applied with the flexibility that he advocated, are still considered relevant.
Max Weber (1864-1920) concern was the development of carefully contracted regulations of
the activities of organizations since they are composed of large number of people. According to
Leavitt (1978), Weber developed a theory of bureaucratic management which stresses the need
for a strictly defined hierarchy governed by clearly defined regulations and lines of authority.
This is so because, Weber considered an idea of organization to be a bureaucracy whose
 activities and objectives are rationally thought out and explicitly spelled out. The concern of
Weber was to improve the performance of organizations by making predictable and productive
operations. Thus he opined that technical competence be emphasized and that performance
evaluations be made purely on the basis of merit Weber’s construct of bureaucracy
characterized by divisions of labor explicitly defined hierarchies, detailed rules and regulations
and formal relationships. An ideal bureaucracy does not exist in the real sense of it, but merely a
basis for postulating a theory about work and how it could be performed in large organizations.
 Bureaucratic Management
Bureaucratic management focuses on the ideal form of organization. Max Weber was
the major contributor to bureaucratic management. Based on observation, Weber concluded that
many early organizations were inefficiently managed, with decisions based on personal
relationships and loyalty. He proposed that a form of organization, called a bureaucracy,
characterized by division of labor, hierarchy, formalized rules, impersonality, and the selection
and promotion of employees based on ability, would lead to more efficient management. Weber
also contended that managers' authority in an organization should be based not on tradition or
charisma but on the position held by managers in the organizational hierarchy.
Bureaucracy has come to stand for inflexibility and waste, but Weber did not advocate
or favor the excesses found in many bureaucratic organizations today. Weber's ideas formed the
basis for modern organization theory and are still descriptive of some organizations. (Source:
http://www.referenceforbusiness.com)
The Behavioral School
The behavioral school of management thought developed, in part, because of perceived weaknesses in
the assumptions of the classical school. The classical school emphasized efficiency, process, and
principles. Some felt that this emphasis disregarded important aspects of organizational life, particularly
as it related to human behavior. Thus, the behavioral school focused on trying to understand the factors
that affect human behavior at work.

 Human Relations.
The Hawthorne Experiments began in 1924 and continued through the early 1930s. A
variety of researchers participated in the studies, including Clair Turner, Fritz J. Roethlisberger,
and Elton Mayo, whose respective books on the studies are perhaps the best known. One of the
major conclusions of the Hawthorne studies was that workers' attitudes are associated with
productivity. Another was that the workplace is a social system and informal group influence
could exert a powerful effect on individual behavior. A third was that the style of supervision is
an important factor in increasing workers' job satisfaction. The studies also found that
organizations should take steps to assist employees in adjusting to organizational life by
fostering collaborative systems between labor and management. Such conclusions sparked
increasing interest in the human element at work; today, the Hawthorne studies are generally
credited as the impetus for the human relations school.
According to the human relations school, the manager should possess skills for
diagnosing the causes of human behavior at work, interpersonal communication, and motivating
and leading workers. The focus became satisfying worker needs. If worker needs were satisfied,
wisdom held, the workers would in turn be more productive. Thus, the human relations school
focuses on issues of communication, leadership, motivation, and group behavior. The
individuals who contributed to the school are too numerous to mention, but some of the best-
known contributors include Mary Parker Follett, Chester Barnard, Abraham Maslow, Kurt
Lewin, Renais Likert, and Keith Davis. The human relations school of thought still influences
management theory and practice, as contemporary management focuses much attention on
human resource management, organizational behavior, and applied psychology in the
workplace.
 Behavioral Science
Behavioral science and the study of organizational behavior emerged in the 1950s and
1960s. The behavioral science school was a natural progression of the human relations
movement. It focused on applying conceptual and analytical tools to the problem of
understanding and predicting behavior in the workplace. However, the study of behavioral
science and organizational behavior was also a result of criticism of the human relations
 approach as simplistic and manipulative in its assumptions about the relationship between
worker attitudes and productivity. The study of behavioral science in business schools was
given increased credence by the 1959 Gordon and Howell report on higher education, which
emphasized the importance to management practitioners of understanding human behavior.
The behavioral science school has contributed to the study of management through its
focus on personality, attitudes, values, motivation, group behavior, leadership, communication,
and conflict, among other issues. Some of the major contributors to this school include Douglas
McGregor, Chris Argyris, Frederick Herzberg, Renais Likert, and Ralph Stogdill, although there
are many others.

The Quantitative School

The quantitative school focuses on improving decision making via the application of quantitative
techniques. Its roots can be traced back to scientific management.
 Management Science and MIS
Management science (also called operations research) uses mathematical and statistical
approaches to solve management problems. It developed during World War II as strategists
tried to apply scientific knowledge and methods to the complex problems of war. Industry
began to apply management science after the war. George Dantzig developed linear
programming, an algebraic method to determine the optimal allocation of scarce resources.
Other tools used in industry include inventory control theory, goal programming, queuing
models, and simulation. The advent of the computer made many management science tools and
concepts more practical for industry. Increasingly, management science and management
information systems (MIS) are intertwined. MIS focuses on providing needed information to
managers in a useful format and at the proper time. Decision support systems (DSS) attempt to
integrate decision models, data, and the decision maker into a system that supports better
management decisions.
 Production and Operations Management
This school focuses on the operation and control of the production process that
transforms resources into finished goods and services. It has its roots in scientific management
but became an identifiable area of management study after World War II. It uses many of the
tools of management science.
Operations management emphasizes productivity and quality of both manufacturing and
service organizations. W. Edwards Deming (1960)exerted a tremendous influence in shaping
modern ideas about improving productivity and quality. Major areas of study within operations
management include capacity planning, facilities location, facilities layout, materials
requirement planning, scheduling, purchasing and inventory control, quality control, computer
integrated manufacturing, just-in-time inventory systems, and flexible manufacturing systems.
Systems School
The systems school focuses on understanding the organization as an open system that transforms
inputs into outputs. This school is based on the work of a biologist, Ludwig von Bertalanffy, (1951),
believed that a general systems model could be used to unite science. Early contributors to this school
included Kenneth Boulding (1956), Richard Johnson, Fremont Kast, and James Rosenzweig (1973).
The systems school began to have a strong impact on management thought in the 1960s as a way
of thinking about managing techniques that would allow managers to relate different specialties and
parts of the company to one another, as well as to external environmental factors. The systems school
focuses on the organization as a whole, its interaction with the environment, and its need to achieve
equilibrium. General systems theory received a great deal of attention in the 1960s, but its influence on
management thought has diminished somewhat. It has been criticized as too abstract and too complex.
However, many of the ideas inherent in the systems school formed the basis for the contingency school
of management.
Contingency School
The contingency school focuses on applying management principles and processes as dictated by
the unique characteristics of each situation. It emphasizes that there is no one best way to manage and
that it depends on various situational factors, such as the external environment, technology,
organizational characteristics, characteristics of the manager, and characteristics of the subordinates.
Contingency theorists often implicitly or explicitly criticize the classical school for its emphasis on the
universality of management principles; however, most classical writers recognized the need to consider
aspects of the situation when applying management principles.
The contingency school originated in the 1960s. It has been applied primarily to management
issues such as organizational design, job design, motivation, and leadership style. For example, optimal
organizational structure has been theorized to depend upon organizational size, technology, and
environmental uncertainty; optimal leadership style, meanwhile, has been theorized to depend upon a
variety of factors, including task structure, position power, characteristics of the work group,
characteristics of individual subordinates, quality requirements, and problem structure, to name a few. A
few of the major contributors to this school of management thought include Joan Woodward, Paul
(1958), Lawrence, Jay Lorsch (1967), and Fred Fiedler (1967) and many others.
Contemporary "Schools" Of Management Thought
Management research and practice continues to evolve and new approaches to the study of
management continue to be advanced. This section briefly reviews two contemporary approaches: total
quality management (TQM) and the learning organization. While neither of these management
approaches offer a complete theory of management, they do offer additional insights into the
management field.
 Total Quality Management
Total quality management (TQM) is a philosophy or approach to management that
focuses on managing the entire organization to deliver quality goods and services to customers.
This approach to management was implemented in Japan after World War II and was a major
factor in their economic renaissance. TQM has at least four major elements. Employee
involvement is essential in preventing quality problems before they occur. A customer focus
means that the organization must attempt to determine customer needs and wants and deliver
products and services that address them.
Benchmarking means that the organization is always seeking out other organizations
that perform a function or process more effectively and using them as a standard, or benchmark,
to judge their own performance. The organization will also attempt to adapt or improve the
processes used by other companies. Finally, a philosophy of continuous improvement means
that the organization is committed to incremental changes and improvements over time in all
areas of the organization. TQM has been implemented by many companies worldwide and
appears to have fostered performance improvements in many organizations. Perhaps the best-
known proponent of this school of management was W. Edwards Deming. (Source:
http://www.referenceforbusiness.com)

MANAGEMENT SCHOOLS Beginning Dates Emphasis

CLASSICAL SCHOOL
Scientific Management 1880s Managing workers and
Administrative Management 1940s organizations more efficiently.
Bureaucratic Management 1920s

BEHAVIORAL SCHOOL
Understanding human behavior in
Human Relations 1930s
the organization.
Behavioral Science 1950s

QUANTITATIVE SCHOOL Increasing quality of managerial

Management Science 1940s decision-making through the
Operations Management 1940s application of mathematical and
Management Information Systems 1950s—1970s statistical methods.

SYSTEMS SCHOOL 1950s Understanding the organization as

a system that transforms inputs
into outputs while in constant
interaction with its environment.
CONTINGENCY SCHOOL 1960s Applying management principles
and processes as dictated by the
 unique characteristics of each
situation.

FUNCTIONS, ROLES, AND SKILLS OF A MANAGER

An individual engaged in management activities is called a manager. Manager supervises,

sustain, uphold, and assume responsibility for the work of others in his or her work group, team,
department, or the organization, in general. It is therefore, safe to assume that organizational success is
dependent on the managers who practice optimal utilization of their human and material resources, and
who encourage high levels of performance, effectiveness, and efficiency among the individuals under
their care.

Managerial Roles and Functions

Organizations typically have three levels of management with their respective managers- top-
level managers, middle-level managers and frontline or lower-level managers.

Top-level Managers
 Top-level managers are the general or strategic managers who focus on long-term organizations
stability, development, progress, and overall efficiency and effectiveness. They, too, are
concerned with the organization’s inter-relationships with their external environment. Chief
executive officer (CEO), Chief operating officer (COO), Chief Finance officer (CFO),
presidents, and vice-presidents are examples of top-level managers in big corporations; they have
authority over all other human resources of their organization. Traditionally, top-level executives
set the company’s general direction by designing strategies and by controlling various resources.

Middle-level Managers
 Middle-level managers are tactical managers in charge of the organization’s middle levels or
departments. They formulate specific objectives and activities based on the strategic or general
goals and objective developed by top-level managers. Their traditional role is to act as g0-
betweens between higher and lower levels of the organization; they announce and interpret top
management priorities to human resources in the hierarchical level of the company.
 To be an ideal middle-level manager, one must be creative so that they could provide sound
ideas regarding operational skills as well as problem-solving skills that will help keep the
organization afloat.

Frontline or Lower-level Managers

 Lower-level managers are also known as operational mangers and are responsible for the
supervising the organization’s day-to-day activities; they are the bridges between management
and non-management employees. Traditionally, they are controlled and instructed by to- and
middle-level managers to follow their orders in support of the organization’s major strategy.

Management Functions

Planning
• Involves determining the organization’s goals or performance objectives, defining
strategic actions that must be done to accomplish them, and developing coordination and
integration of activities.

Organization/Organizing
• Demands assigning tasks, setting aside funds, and bringing harmonious relations among
the individuals and work groups or teams in the organization.

Staffing
• Indicates filing in the different job positions in the organization’s structure; the factors
that influence this function include; size of the organization, types of jobs, number of individuals
to be recruited, and some internal or external pressures
 Leading
• Entails influencing or motivating subordinates too do their best so that they would be able
to help the organization’s endeavor to attain their set goals.

Controlling
• Involves evaluating and, if necessary, correcting the performance of the individuals or
work groups or teams to ensure that they are all working toward the previously set goals and plans
of the organization.

Managerial Roles According to Mintzberg

 Leader
Interpersonal  Liaison
 Figurehead
 Spokesperson
Informational  Monitor
 Disseminator
 Disturbance handler
 Resource allocator
Decisional or Decision-making
 Negotiator
 Entrepreneur

Managerial Skills
Managerial skills may be classified as conceptual, human, and technical.
 Conceptual skills- conceptual skills enable managers to think of possible solutions to complex
problems. Through their ability to visualize abstract situations, they develop a holistic view of
their organization and its relation to the wider external environment surrounding it. Top-level
managers must have these conceptual skills in order to be successful in their work.

 Human Skills- human skills enable managers in all level s to relate well with people.
Communicating, leading, inspiring, and motivating them become easy with the help of human
skills. Dealing with people, both in the organization’s internal and external environment, is
inevitable, so it is necessary for managers to develop these human skills.

 Technical Skills- technical skills are also important to managers for them to perform their tasks
with proficiency with the use of their expertise. Lower-level managers find these skills very
important because they are the ones who manage the non-management workers who employ
varied techniques and tools to be able to yield good quality products and services for their
company.

Social Responsibilities of the Manager

Social responsibility can be regarded as the obligation of managers to pursue those policies, to
make those decisions or to follow those lines of actions which are desirable with respect to the
objectives and values of our society. Consequently the actions of the manager which emanates from the
objectives of the organization should be in harmony with the objectives and values existing in the
society. The social responsibilities of the manger can be seen several fronts and we are going to consider
these one after the other.
Responsibility to the Community
1. Providing for the community
2. Provision of scholarship
3. Provision of funds for development
4. Support for games
5. Provision of goods/services
6. Employment opportunities
7. Conforming to the local norms
Responsibility to the employees
 1. Payment of good wages and salaries plus other fringe benefits
2. Ensuring that the working environment is safe
3. Taking care of welfare matters and job security
4. Provision of training facilities
Responsibility to the shareholders
1. Payment of dividends and insurance of bonus shares
2. Efficient performance of the business
3. Holding regular annual general meeting
Responsibility to the government
1. Payment of taxes
2. Employing citizens of the country
3. Complying with government rules and regulations
Responsibility to the customers
1. Producing safe and quality goods
2. Proper education
3. Avoiding fake and misleading advertisement
4. Attending to the customers complaints.
How to be a Successful Manager
1. Keep abreast of development
2. Seeking for higher responsibilities
3. The need to make sound and timely decisions avoid wasting time on the work that belongs to
subordinates
4. Assess your own performance
5. The manager should be respected.
 Diocese of Bayombong Educational System (DBES)
Saint Louis School of Solano, Inc.
Solano, Nueva Vizcaya
Telefax # (078) 326 – 7458
e-mail: [email protected]

SELF-PACED LEARNING MODULE

Subject: ORGANIZATIONAL MANAGEMENT
Teacher:

FIRST QUARTER

ACTIVITY
WEEK 1
NAME OF STUDENT:__________________________
GRADE AND SECTION:________________

Part I. Directions: Read and understand the question carefully. Write your answer briefly but
intelligently.

1. From the various definitions of management given by some of the authorities in the field, what
managerial features emerge?
2. Discuss briefly the five functions of management?
3. Is management a science or an art? Justify your answer/
4. What are the different skills that a future manager should have? Discuss each skill.
5. Define the term management on your own point view.
6. What was the Hawthorne studies about? What is its relation to Human Behavior school of
thought in management?
7. What is Gantt chart
8. Why were the early applications of the quantitative sciences in management called “Operations
research”

Part II. Analyze the given chart and explain the concept of the chart

A. Relative amount of Time that Manager Spend on the Four Managerial Functions

B. Skills Needed

RUBRICS IN SCORING
Criteria 3 2 1
Content Information is sufficient. Examples Information is few. Some Lack of information and no
are accurate and well explained. examples are well explained. examples are presented.
 Relevance Information and examples given Information and examples given Information and examples
are relevant to real life situation. are quite relevant to real life given are irrelevant to real life
situation. situation.

Diocese of Bayombong Educational System (DBES)

Saint Louis School of Solano, Inc.
Solano, Nueva Vizcaya
Telefax # (078) 326 – 7458
e-mail: [email protected]

SELF-PACED LEARNING MODULE

Subject: ORGANIZATIONAL MANAGEMENT
Teacher:

FIRST QUARTER

ACTIVITY
WEEK 2
NAME OF STUDENT:__________________________
GRADE AND SECTION:________________

Activity # 1:

Directions: Read and analyze each case and answer the following question.

CASE 1:

Ashutosh Goenka was working in ‘Axe Ltd.’, a company manufacturing air purifiers. He found that
the profits has started declining from the last six months. Profit has an implication for the survival of the
firm, so he analyzed the business environment to find out the reasons for this decline.

1. Identify the level of management at which Ashutosh Goenka was working.

2. State three other functions being performed by Ashutosh Goenka.

CASE 2:

Rishitosh Mukerjee has recently joined AMV Ltd, a company manufacturing refrigerators. He
found that his department was under-staffed and other departments were not cooperating with his
department for smooth functioning of the organization. Therefore, he ensured that his department has the
required number of employees and its cooperation with other departments is improved.

1. Identify the level at which Rishitosh Mukerjee was working.

2. Also, state three more functions required to be performed by Rishitosh Mukerjee at this level.

CASE 3:

Sridhar’s father is working as a section in-charge in a government office. Identify the level of
management at which he is working? State any five functions that he has to perform at this level.

Case 4:
 The President of a medium-sized manufacturing company is due for retirement in 3 months. The
Board of Directors of the company is considering the next highest ranking manager, the Senior Vice
President, as possible replacement for president. The Senior Vice President is a corporate lawyer who
joined the company 10 years previously and assisted the President in the external affairs area, e.g.
dealing with government tariff and regulatory bodies, suppliers and some government accounts. What
are the pros and cons of appointing this person as president?

ANSWER SHEET
CASE 1:
ANSWER:
QUESTION # 1:

QUESTION # 2:

CASE 2:
ANSWER:
QUESTION # 1:

QUESTION # 2:

CASE 3:
ANSWER:
QUESTION # 1:

QUESTION # 2:

RUBRICS IN SCORING
Criteria 3 2 1
Content Information is sufficient. Information is few. Some Lack of information and no
Examples are accurate and well examples are well explained. examples are presented.
explained.
Relevance Information and examples given Information and examples given Information and examples given are
are relevant to real life situation. are quite relevant to real life irrelevant to real life situation.
situation.
 Diocese of Bayombong Educational System (DBES)
Saint Louis School of Solano, Inc.
Solano, Nueva Vizcaya
Telefax # (078) 326 – 7458
e-mail: [email protected]

SELF-PACED LEARNING MODULE

Subject: ORGANIZATIONAL MANAGEMENT
Teacher:

FIRST QUARTER

Name of Student: ____________________________ Year and Section: __________________

Week No.: 3-4 Inclusive Dates: ______________

Content Standard The role of business in the environment, and how environment affects
the firm
Performance Analyze the various environmental forces affecting the firm and
Standard summarize these using the Political Economic Social and
Technological Analysis (PEST) and Strengths, Weaknesses,
Opportunities and Threats (SWOT Analysis frameworks.
Most Essential Week 3 Analyze various forces/ elements influencing local and
Learning international business environment using PEST and SWOT
Competencies strategies
(MELCs) Week 4 Analyze the forms and economics roles of business
organizations
Differentiate the phase of economic development and its
impact to business environment.
21st Century Learning Critical Thinking, Creativity and Information Thinking
Skills
Core Values Creativity, Compassion and Open-mindedness

MODULE 2: THE FIRM AND ITS ENVIROMENT

Week 3 Learning Targets/ Specific Objectives Remarks Activity Score
Day 1 At the end of the lesson, the students should be able
to 4 to:

 Identify various forces/elements of the firm’s

environment;
 Summarize these forces using PEST and SWOT
analysis; and
 Describe the local and international business
environment of a firm.
Week 4
Day 1  Explain the role of business in relation to
to 4 economy;
 Discuss the different phases of economic
development; and
 Differentiate the various forms of business
organization.
TOTAL
REFERENCES: (Organizational Management, Marvic F. Flores, DBA, Page 37 to 70)
https://www.businessnewsdaily.com/4245-swot-analysis.html
 https://www.investopedia.com/terms/p/pest-analysis.asp
https://transportgeography.org/?page_id=1348`

THE FIRM AND ITS ENVIRONMENT

The SWOT ANALYSIS: Process and Basic Components
Environmental forces & Environment Scanning

Environmental scanning is the process of gathering information about events and their relationships
within an organization's internal and external environments. The basic purpose of environmental
scanning is to help management determine the future direction of the organization.

1. External business Environment

-Refers to the factors/elements outside the organization which may affect, either positively or
negatively, the performance of the organization
2. Internal business environment
-refers to the factor/elements within the organization which may effect, either positively or negatively,
the performance of the organization.

What is SWOT ANALYSIS?

 A technique that enables organizations or individual to move from everyday problems and
traditional strategies to a fresh prospective.
 SWOT analysis looks at your strengths and weaknesses, and the opportunities and threats your
business faces SWOT can help your company face its greatest challenges and find its most
promising new markets.
 The SWOT Analysis framework is a very important and useful tool to use in marketing
Management and other business applications
 A clear understanding of SWOT is required for business majors.

Basic Elements of the SWOT Analysis

Strength and weaknesess –internal environment
Opportunities and threats-external environment

Strengths (internal, positive factors)

 Characteristics of the business or individual that give it an advantage over others in the industry.
 Positive tangible and intangible attributes, internal to an organization or individual.
 Beneficial aspects of the organization or the capabilities of an organization, process capabilities,
financial resources, products and services, customer goodwill and brand loyalty.
 Examples -Abundant financial resources, Well-known brand name, Lower costs [raw materials
or processes], Superior management talent, Better marketing skills, Good distribution skills,
committed employees.

Weaknesses (internal, negative factors)

 Characteristics that place the firm or individual at a disadvantage relative to others.
 Detract the organization from its ability to attain the core goal and influence its growth.
 Weaknesses are the factors which do not meet the standards we feel they should meet. However,
weaknesses are controllable. They must be minimized and eliminated.
Examples -Limited financial resources, Very narrow product line, Limited distribution, Higher
costs, Weak market image, Poor marketing skills, Limited management skills, Under-trained
employees.

Opportunities
 Are external attractive factors that represent reasons your business is likely to prosper.
 Chances to make greater profits in the environment -External attractive factors that represent the
reason for an organization to exist & develop.
  Arise when an organization can take benefit of conditions in its environment to plan and execute
strategies that enable it to become more profitable.
 Organization should be careful and recognize the opportunities and grasp them whenever they
arise.
 Examples -Rapid market growth, Rival firms are complacent, Changing customer needs/tastes,
New uses for product discovered, Economic boom, Government deregulation, Sales decline for a
substitute product.

Threats (external, negative factors)

 External elements in the environment that could cause trouble for the business -External factors,
beyond an organization’s control.
 Arise when conditions in external environment jeopardize the reliability and profitability of the
organization’s business.
 Examples -Entry of foreign competitors, Introduction of new substitute products, Product life
cycle in decline, Changing customer needs/tastes, Rival firms adopt new strategies, Increased
government regulation, Economic downturn.

Aim of SWOT Analysis

 To help decision makers share and compare ideas.
 To bring a clearer common purpose and understanding of factors for success.
 To organize the important factors linked to success and failure in the business world.
 To help individual or organization to understand their strengths and weaknesses.
 It promotes strategic

Who needs SWOT ANALYSIS?

1. Job Holder
 When supervisor has issues with output
 Assigned to new job
 New finacial year-fresh targets
 Job holder seeks to improve performance on the job
2. Business Unit
 When the team has not met its targets
 Customers service can be better
 Launching a new business unit to pursue a new business
 New team leader is appointed
3. Company
 When revenue, cost & expenses targets are not being achieved
 Launching a new business venture
 Industry conditions are unfavorable

When to do a personal SWOT analysis?

 When going to an interview –So you can focus on your strengths and talk about them
more. It will help in preparing the CV as well. If you have a very good idea about the
job requirements beforehand you can modify the CV to match them as well.
 When applying for a promotion –helps you to assess yourself against other
candidates. You’ll have a good understanding of your strengths against your
competitors so you can focus on them rather than your general strengths.
 Before a career switch –helps you to figure out whether your skills match the
opportunities in your new career or whether they are much suited for your current job.

HOW TO CONDUCT SWOT ANALYSIS

1. Analyze Internal & External Environment
 2. Perform SWOT Analysis

1. SO strategies—use a firm’s internal strengths to take advantage of external opportunities.

(LEVERAGE)
2. WO strategies—are aimed at improving internal weaknesses by taking advantage of external
opportunities. (CONSTRAINTS)
3. ST strategies—use a firm’s strengths to avoid or reduce the impact of external threats.
(VULNERABILITIES)
4. WT strategies—are defensive tactics directed at reducing internal weaknesses and avoiding
external threats. (PROBLEMS)
 Establish the objectives -Purpose of conducting a SWOT may be wide / narrow, general
/ specific.
 Select contributors -Expert opinion may be required for SWOT
 Allocate research & information gathering tasks -Background preparation can be
carried out in two stages –Exploratory and Detailed. Information on Strengths &
Weaknesses should focus on the internal factors.
 Create a workshop environment -Encourage an atmosphere conducive to the free flow
of information.
 Evaluate listed ideas against Objectives -With the lists compiled, sort and group facts
and ideas in relation to the objectives.
 List Strengths, Weaknesses, Opportunities, & threats
 Carry your findings forward -Make sure that the SWOT analysis is used in subsequent
planning.

3. Prepare Action Plans

Once the SWOT analysis has been completed, mark each point with:
  Things that MUST be addressed immediately
 Things that can be handled now
 Things that should be researched further
 Things that should be planned for the future

How a PEST Analysis Can Help with Strategic Planning

What is a PEST analysis?

A PEST analysis is a widely used strategic planning tool. It is used by many to identify the
political, economic, social and technological factors that may have an effect on a project and its planning
process. Sometimes it’s expanded to include legal and environmental factors and called a PESTLE
analysis.
With this analysis, you can identify potential opportunities and threats associated with your strategy
and figure out ways to take advantage of them and avoid them.

 Political factors include tax policies, employment laws, tariff & trade restrictions, consumer
protection laws, environmental regulations, political stability of a country etc.
 Economic factors include economic growth indicators, inflation rate, interest rates, exchange
rates, fiscal policies, unemployment trends etc.
 Social factors include cultural aspects, age distribution, career attitudes, health consciousness,
population growth rate, social classes etc.
 Technological factors include rate of technological change, technology incentives, spending on
research & development, basic infrastructure level etc.
 Legal factors include tax laws, labor laws or any other laws that concern your business that
aren’t considered in political factors.
 Environmental factors include data about different seasons, sunshine, snowing, rainfall etc.
which can be critical for a business.

Analyzing these factors will help you and your team gain a comprehensive understanding of the
external (macro environmental) factors that may positively or negatively affect your company’s strategic
planning process. With access to such knowledge, you can quickly come up with strategies that would
put the company on the fast track to achieving its goals.

What are the benefits of using a PEST analysis for strategic planning?
Visualize all the factors in one place for better decision-making
When it comes to decision making or strategy building, having all the information you want
together in one place is as important as having your team together.
  PEST analysis, which is a grid with four sections representing each of the above-mentioned
factors, brings together and juxtaposes all the important facts necessary to make decisions and build fail-
proof strategies. Therefore, conducting a PEST analysis prior to your strategic planning session is rather
important, because it will not only help you be cautious with your decision making, but it will also keep
you and your team on the right track.
Identify opportunities and threats
Gathering information is only the first step of a PEST analysis; once you gather information,
your next move should be to evaluate them. By assessing them, you and your team will be able to
identify the opportunities and threats caused by the external factors. Thus, you can focus on the most
important opportunities and take advantage of them while coming up with ways to counteract the
threats.
Typically a PEST analysis is used to gather the inputs to be included opportunities and threats section of
a SWOT analysis, which in turn is used to make strategic planning decisions.
 Ability to gather information from experts and compare them with other factors
A PEST analysis is not about listing down political, economic, social and technological factors
that you simply know of, have heard of or make assumptions of. You need to seek information from
experts who are aware of current conditions with regard to each area.
Such information would be immensely valuable in building effective strategies. After you
independently gather information for the relevant factors the PEST diagram will be useful in comparing
them with other factors. This makes is easier to come up with solutions for threats and ways to make the
best of the opportunities available in order to help your company achieve its goals.
A PEST analysis is a crucial part of any strategic planning process. Without a general idea about
the external factors that would affect your company or its strategies, you will never be able to reach your
targets or accomplish your goals. On the other hand, the comprehensive insight you could gain from a
PEST analysis will ensure that the strategies you come up with will be successful!
Phases of Economic Development

Globalization is mostly a cumulative process based on changes on the modes of

accumulation (how growth is generated) and their functional relations (how growth is structured). The
capacity to produce (manufacturing) and to distribute (transport) remain fundamental as vectors of
economic development. Since the beginning of the Modern Era in the 16th century, four major phases
leading to the development of the world economy can be identified, with the fifth speculative about how
globalization may unfold in the future:

 The age of mercantilism (c1500-1780) and the setting of the first transoceanic trade routes led to a
remarkable expansion of the hegemony of Europe through the setting of colonial empires (such as
the Spanish and Portuguese empires) and their underlying mercantilist system where trade relations were
monopolized and controlled. Although Empires such as China and India (Mughal) were significant
economic entities, they were not proactive at setting long distance trade relations but transacted with
foreign merchants. Still, for the majority of economic activities the spatial scale of relations remained
local in scope as economies of scale for inland transportation remained illusive. Production stayed
relatively unchanged since the middle ages with a system based on the workshop where crafts were
learned, developed and diffused to apprentices. In many cases this led to the emergence of specialized
craft cities where specific production expertise were mastered and guarded by guild organizations. Yet
this system of monopolistic and did not permit mass production.

The industrial revolution (c1780-1880) saw to setting of mechanized production and

distribution systems and the emergence of industrial capitalism where mass production and consumption
became a possibility. This required the usage of a larger production unit; the factory. Additional demand
for labor incited higher levels of urbanization and the emergence of industrial cities having a wide scale
of trade relations, mostly with areas supplying raw materials and energy. This was made possible by the
setting of canals and then by the first regional rail networks, permitting for the first time economies of
scale for inland transportation. The introduction of the steamship strengthened long distance trade and
colonialism.

The emergence of Fordism (c1880-1970) resulted in a capitalist system dominated by large

multinational corporations or corporations operating under a quasi-monopolistic status over their
respective economies. The growing complexity of manufacturing benefited from the setting of industrial
clusters (manufacturing belts) where related industries agglomerated. The setting of the assembly line
model relied on a network of suppliers in relative close proximity and the advent of production
management. International and regional relations were serviced by well-established steamship and rail
networks. During the latter part of this period, colonial empires collapsed with state imperialism
replaced by corporate imperialism. The economic role of developing countries (many of which being
former colonies) started to become more prevalent in a world that until then was dominantly assumed by
Europe and its offshoots (e.g. USA). Yet, for entities such as China and India, this period marked a
remarkable decline in their economic importance.

Post-fordism (c1970-2010) saw an acceleration of globalization, particularly with the

emergence of export-oriented economies (e.g. Japan, Korea, China) that gained from the offshoring of
several manufacturing tasks and the setting of global production networks managed by corporate
systems. This was made possible by a convergence of key transportation technologies, particularly
containerization, jet planes services and telecommunications. While the level of manufacturing output
increased, its relative share declined in relation to the growth of service activities. Knowledge became a
form of capital, particularly since innovation played an important role in the quantitative and qualitative
improvement of goods and services. Information technologies became increasingly embedded in
products and services. Multilateral trade agreements and economic blocs provided a transactional
environment favorable to take advantage of the comparative advantages of locations in terms of labor,
land or resources.

The challenges standing at the beginning of the 21st century bring the question about how
globalization and its underlying production and distribution processes will evolve. Emerging
environmental and resource scarcity concerns are indicative of a sustainable capitalism paradigm
where economic activities a bound to minimize their externalities (e.g. waste, pollution, congestion)
both because of regulatory and competitive pressures. Like the previous post-fordist phase, the setting of
efficient supply chains will be fundamental, particularly in the context where each element collaborate
to add value. While globalization will remain a dominant paradigm, energy and recycling will incite a
more regionally focused manufacturing system. Production systems are likely to take a more
hierarchical structure, shifting to global sourcing when necessary, but preferring regional suppliers. The
level of intermodal integration of transport systems, for both passengers and freight, will lead to
additional efficiency improvements, even if modal speeds do not very significantly. Nation-states will
remain the basic functional unit, but economic integration will continue to blur the distinctiveness
between the nation and the economic region.

c1880-
c1780-1880 c1970-2010
1970 c2010- (v4.0)
c1500-1780 (v1.0) (v3.0)
(v2.0)
Mode of
Accumulati
on
Monopoly Corporate
Economic Mercantilis Industrial Sustainable
capitalism capitalism (post-
system m capitalism capitalism
(fordism) fordism)
Digital
Textiles, Electricity, Aviation, networks &
Commoditi Steam Petrochemical Electronics, devices,
Source of
es and power, s, Internal Information & Green
growth
crafts trade Metallurg combustion communication energy,
y engine technologies Customized
fabrication
 Collaborati
Production Multinational
Workshop Factory Corporate system ve supply
unit corporation
chain
Industrial Hierarchical
Production Industrial Global production
Craft cities cities / production
system clusters networks
regions networks
Functional
Relations
Local + Regional +
Spatial Global +
Trade Trade International Global
relations Hierarchical
routes routes
Turnpikes, Highways, Jet
Canals, Railways, planes,
Transport Trails, Intermodal
Railways, Steamships, Containerization,
system Sailships systems
Steamship Roads Telecommunicatio
s ns
Colonialis
Supply Colonialis m/ State Corporate Corporate
system m Imperialis imperialism imperialism governance
m
City-states/ Nation- Nation-
Hegemonic Integrated
Kingdoms / states / states / Economic blocs
structure regions
Empires Empires Alliances
Source: https://transportgeography.org/?page_id=1348`
The 4 Major Business Organization Forms

Business organization is the single-most important choice you’ll make regarding your company.
What form your business adopts will affect a multitude of factors, many of which will decide your
company’s future. Aligning your goals to your business organization type is an important step, so
understanding the pros and cons of each type is crucial.

Your company’s form will affect:

 How you are taxed
 Your legal liability
 Costs of formation
 Operational costs
There are 4 main types of business organization: sole proprietorship, partnership, corporation,
and Limited Liability Company, or LLC. Below, we give an explanation of each of these and how they
are used in the scope of business law.
1. Sole Proprietorship
The simplest and most common form of business ownership, sole proprietorship is a business owned and
run by someone for their own benefit. The business’ existence is entirely dependent on the owner’s
decisions, so when the owner dies, so does the business.
Advantages of sole proprietorship:
 All profits are subject to the owner
 There is very little regulation for proprietorships
 Owners have total flexibility when running the business
 Very few requirements for starting—often only a business license
Disadvantages:
 Owner is 100% liable for business debts
 Equity is limited to the owner’s personal resources
 Ownership of proprietorship is difficult to transfer
 No distinction between personal and business income
2. Partnership
These come in two types: general and limited. In general partnerships, both owners invest their
money, property, labor, etc. to the business and are both 100% liable for business debts. In other words,
even if you invest a little into a general partnership, you are still potentially responsible for all its debt.
General partnerships do not require a formal agreement—partnerships can be verbal or even implied
between the two business owners.
Limited partnerships require a formal agreement between the partners. They must also file a certificate
of partnership with the state. Limited partnerships allow partners to limit their own liability for business
debts according to their portion of ownership or investment.
Advantages of partnerships:
 Shared resources provides more capital for the business
 Each partner shares the total profits of the company
 Similar flexibility and simple design of a proprietorship
 Inexpensive to establish a business partnership, formal or informal
Disadvantages:
 Each partner is 100% responsible for debts and losses
 Selling the business is difficult—requires finding new partner
 Partnership ends when any partner decides to end it
3. Corporation
Corporations are, for tax purposes, separate entities and are considered a legal person. This means,
among other things, that the profits generated by a corporation are taxed as the “personal income” of the
company. Then, any income distributed to the shareholders as dividends or profits are taxed again as the
personal income of the owners.

Advantages of a corporation:
 Limits liability of the owner to debts or losses
 Profits and losses belong to the corporation
 Can be transferred to new owners fairly easily
 Personal assets cannot be seized to pay for business debts
Disadvantages:
 Corporate operations are costly
 Establishing a corporation is costly
 Start a corporate business requires complex paperwork
 With some exceptions, corporate income is taxed twice
 4. Limited Liability Company (LLC)
Similar to a limited partnership, an LLC provides owners with limited liability while providing some of
the income advantages of a partnership. Essentially, the advantages of partnerships and corporations are
combined in an LLC, mitigating some of the disadvantages of each.
Advantages of an LLC:
 Limits liability to the company owners for debts or losses
 The profits of the LLC are shared by the owners without double-taxation
Disadvantages:
 Ownership is limited by certain state laws
 Agreements must be comprehensive and complex
 Beginning an LLC has high costs due to legal and filing fees

Diocese of Bayombong Educational System (DBES)

Saint Louis School of Solano, Inc.
Solano, Nueva Vizcaya
Telefax # (078) 326 – 7458
e-mail: [email protected]

SELF-PACED LEARNING MODULE

Subject: ORGANIZATIONAL MANAGEMENT
Teacher:

FIRST QUARTER

ACTIVITY
WEEK 3
NAME OF STUDENT:__________________________
GRADE AND SECTION:________________

ACTIVITY FOR WEEK 3:

Part 1. Learning Exercises:

1. Discuss the various forces/elements of the firms’ environment. How does it affect the firm’s
operation?

2. What are the different types of task environment? Discuss each type.

3. Discuss briefly the different competitive forces in the task environment.

4. Define environment scanning on your own understanding.

Rubrics for scoring

Criteria 3 2 1
Content Information is sufficient. Examples Information is few. Some examples Lack of information and no
are accurate and well explained. are well explained. examples are presented.
Relevance Information and examples given is Information and examples given is Information and examples given
relevant to real life situation. quite relevant to real life situation. is irrelevant to real life situation.
Additional points: 2 points for cleanliness of the paper.

Part II. SWOT and PEST Analysis

Case: Cathy Canteen
Cathy Canteen is located in well-known university in Metro Manila. She started selling packed
lunches to her co-employees in the 70’s for additional income. At around 1978 to 1979, Cathy decided
to resign and make a business her full-time job. She continued selling the same packed lunches and
snacks to faculty members and employees of the school. She also ventured into a small catering service
within vicinity.
She decided to expand. She began by opening a canteen in high school building, then later added
another canteen inside the science building. She enjoyed the monopoly of owning the only food service
in both buildings.
 Business was doing well until a new administration cancelled her contract in the Science
building, instead gave her a contract in the Medicine building. She retained her contract in the high
school building, as well.
The new administrators opened a commercial complex inside the school with commercial slots
open foe lease. The rent is quite expensive and 10-month rent has to be paid in advance to get a slot.
There are currently 2 floors with available slots. Cathy opened a slots on the first floor, and business has
been good so far.
Cathy is now thinking of getting another slot beside her existing one in the commercial complex,
but she is hesitating because of two reasons: (1) the new K to 12 curriculums will initially decrease her
potential customers by 50% and (2) university rules state that concessionaries must halt operations when
school is on break but must continue paying rent during those months.
Answer Sheet:
I. Statement of the Problem:
II. Statement of Objectives:
III. Areas of consideration:
a. The Internal Environment (Description of what is happening in the business)
b. The External Environment (Description of what is happening outside the business)
IV. The Task Environment is the detailed discussion of the business’ strengths, weaknesses,
opportunities and threats).
1. Strengths
2. Weaknesses
3. Opportunities
4. Threat
V. Assumptions
What is your assumption on the following?
1. The financial strength of the business.
2. The number of potential buyers.
VI. Areas of Considerations (Analyze the given strategies in order to explain and identify the
advantages and disadvantages in the business)
Course of Action 1- Expand the business inside the university
Course of Action 2- Diversify products offered
Course of Action 3-Expand the business outside the university
VII. Analysis (Explaining and identifying the advantages and disadvantages of the different
course of action)
1. Course of Action 1- Expand the business inside the university
Advantages:
Disadvantages:
Course of Action 2- Diversify products offered
Advantages:
Disadvantages:
2. Course of Action 3-Expand the business outside the university
Advantages:
Disadvantages:
VIII. Conclusion
A decision matrix is a table used to evaluate various options according to certain criteria in
order to make the best possible choice. In the following decision matrix, we will grade
courses of action numbers 1-3 according to their profitability, regulations/restrictions,
competitive advantage, and cost efficiency on scale of 1 to 3, with 3 being the highest.
Notes:
1. Total the score
2. The highest total score would be the best strategy to apply in the business. So, please be
sensitive and think wisely.
Criteria Course of Action Course of Action Course of Action
#1 #2 #3
Profitability
Regulations/Restrictions
Competitive Advantage
Cost Efficiency
Total

Criteria for scoring

Requirements Score
Identify the main problem 5 points
Identify the objective 5 points
Includes the area of considerations 5 points
Complete analysis on the Task Environment 5 points
Complete analysis on the course of action 5 points
Complete conclusion 5 points
Total points 30 points

Diocese of Bayombong Educational System (DBES)

Saint Louis School of Solano, Inc.
Solano, Nueva Vizcaya
Telefax # (078) 326 – 7458
e-mail: [email protected]

SELF-PACED LEARNING MODULE

Subject: ORGANIZATIONAL MANAGEMENT
 Teacher:

FIRST QUARTER

ACTIVITY
WEEK 4
NAME OF STUDENT:__________________________
GRADE AND SECTION:________________

ACTIVITY FOR WEEK 4:

QUESTIONS FOR DISCUSSION

1. Is it necessary for a person to start a business as sole/single proprietorship? Why or why not?

2. How does the four major phases of economic development lead to the development of the world
economy?

3. Are the fourteen Fayol’s Universal Principles of Management still applicable at present? Why or
why not?

RUBRICS IN SCORING
Criteria 3 2 1
Content Information is sufficient. Examples are Information is few. Some examples are Lack of information and no
accurate and well explained. well explained. examples are presented.
Relevance Information and examples given are Information and examples given are Information and examples given
relevant to real life situation. quite relevant to real life situation. are irrelevant to real life situation.
Additional points: 2 points for cleanliness of the paper.

Diocese of Bayombong Educational System (DBES)

Saint Louis School of Solano, Inc.
Solano, Nueva Vizcaya
Telefax # (078) 326 – 7458
e-mail: [email protected]

SELF-PACED LEARNING MODULE

Subject: ORGANIZATIONAL MANAGEMENT
 Teacher:

FIRST QUARTER

Name of Student: ____________________________ Year and Section: __________________

Week No.: 5-6 Inclusive Dates: ______________

Content Standard The importance of planning concepts in business success

Performance Formulate effective plans for specific endeavor
Standard
Most Essential Week 5 Discuss the nature and levels of planning and types of
Learning plans
Competencies Week 6 Apply appropriate planning techniques and tools in
(MELCs) business decision-making
21st Century Learning Critical Thinking, Creativity, and Information Literacy
Skills
Core Values Education, Creativity and Passion

MODULE 3: PLANNING
Week 5 Learning Targets/ Specific Objectives Remarks Activity Score
Day 1 At the end of the lesson, the students should be
to 4 able to:
 Discuss the nature of planning;
 Compare and contrast the different types of
plans; and
 Describe planning at different levels in the firm.
Week 6
Day 1  Apply appropriate planning techniques and tools;
to 4 and
 Formulate a decision from several alternatives.
TOTAL

REFERENCES
Organization and Management by Marivic F. Flores, DBA., Page 68-87

Nature of Forecasting and Planning

Planning means looking ahead and chalking out future courses of action to be followed taking
into consideration available & prospective human and physical resources. It is a systematic activity
which determines when, how and who is going to perform a specific job. It is rightly said ―Well plan is
half done‖.

According to Koontz (1984) & O‘Donnell (1964) ―Planning is deciding in advance what to do,
how to do and who is to do it. Planning bridges the gap between where we are to, where we want to go.
It makes possible things to occur which would not otherwise occur‖.

Planning requires administration to assess appropriate course of action to attain the company‘s
goals and objectives. For 5 management to do this efficiently, it has to be very practical and simple.
Planning is important at all levels of management. However, its characteristics vary by level of
management.

Forecasting is a management function that reduces areas of uncertainty that surround

management decision. Such decisions can be on sales, costing, profit, and manpower among others.
Forecasting is aimed at calculating or predicting what is likely going to happen in the future. That is, the
events or conditions are predicted in advance. By so doing forecasting gives management the basis for
expecting the desired outcome arising from management decisions.
 Planning is another management function which is futuristic. It goes together with forecasting. It
involves deciding in advance what to do, how to do it, when to do it and who is to do it. Planning has to
do with the conscious choice of patters of influence on the manager in his attempt to make decisions.
For planning to be effective there must be the establishment of objective. Planning is also defined as the
design of a desired future and of effective and efficient way of bringing it about. This primary function
of management is not concentrated among top level managers only. Every manager performs planning.
It is true; however, the top managers spend a greater portion of their time planning than middle and
lower managers.

Advantages of Planning
1. Planning focuses on objectives.
2. It offset uncertainties by making the manager to develop some confidence which will enable him
to take decisions with some degree of certainty.
3. It minimizes waste before careful analysis would have been made with respect to the critical
activities that need to be performed in order to realize the objective or give solution to the
problem.
4. Planning also ensures control through measurement and feedback. This is important so as to
avoid unnecessary expenditure of resources.

Disadvantages of Planning
1. The effectiveness of planning depends on the quality of data gathered and the assumptions made
from them. If the quality is poor and assumptions not correct. They can adversely affect future of
the results.
2. Planning is expensive as it involves considerable amount of time and money.
3. Planning delays action because it is only when the plan is completed that the desired action can
take place.

Benefits of Planning
1. It helps identify opportunities for the organization planning requires an organization to look for
opportunities.
2. It helps identify possible problems.
3. It forces managers to set objectives.
4. It forces managers to set standards.
5. It coordinates organizational activity.

Problems in Planning
1. Lack of support from top management.
2. Poor performance is a key element in planning.
3. Resistance to change.
4. Over or under commitment in plans.
5. Managers are not involved in the planning process.
6. Lack of competence in planning

Planning at Different Levels in the Firm

Plans must be developed for all levels of management, although other focus will differ at
different levels of management. Below are the planning activities of top managers and low-level
mangers which reveal four principal differences.

Top Managers Low-level Managers

1. Develop organizational objectives and the Develop plans that will fit the overall objectives
overall plans to achieve them. set by top management.
2. Spend a large proportion of their time on Spend a much smaller preparation time on the
the planning function. planning function.
3. The time frame for planning activities is The time frame for planning activities is short
longer (about one year). (often week to week)
4. Focus on both internal and external factors Focus largely on internal organization factors.
when planning.

General Approaches to Formal Planning

1. Bottom-up Approach – formulation of plan is initiated by various units or divisions of an
organization and then passed upward for aggregation at the corporate level.
 2. Top-down Approach – initiative is taken by the upper levels executives of the organization.
3. Interactive Approach – in this approach, a compromise between the bottom-up and top-down
methods, corporate executives and lower level managers develop plan in consultation with each
other, making a link between wider corporate objectives and the managers detailed knowledge of
specific situation.

Classifications and Types of Plans

A. Plans Classified According to Time or Duration includes:

1. Long-range planning – this covers five years or more. The time span varies form one
organization to another. Any plan that extends beyond five years is considered long-range in
character. Long-range planning covers expansions, large issues in stocks and bonds, new service
development and new plant construction.
2. Intermediate range planning – this is more subject to change, covering period from one year to
five years.
3. Short-range planning – it covers a period of one year or less. It encompasses the development of
operational plans for the given short period.

B. Plans Classified According to Business Function or Use are:

1. Sales plan
2. Production plan
3. Personnel plan
4. Finance plan
5. All plans concerning any other major functions.
6.
Major Kinds of Planning

1. Strategic Planning – generally apply to the entire enterprise, establishes the enterprise’s overall
objectives and seek to place the organization in terms of its environment. It is a long –range
planning which focused on the entire business operations. It involves the three level of
management. Top management which formulates the corporate objectives while middle level
implements the general goals of the top management and the lower levels develop relevant
objectives and plans on how to attain them.

2. Tactical Planning – a short-range planning that emphasizes the current operations of various
parts of the organization. Tactical planning are used to outline what the various parts of the
organization must do for the organization to be successful at some point one year or less into the
future. It is usually developed for organization in the areas of production, marketing, personnel,
and finance and plant facilities.

3. Operational Planning – it provides the specifics as to how the strategic plan will be attained.
Managers used operational plans to accomplish job responsibilities.

Types of Operational Plan

1. Single–use Plan – it is developed to carry out a course of action that is not to be repeated
in the future. They are also designed to accomplish specific objective. Single-use plans are
usually within a relatively short period of time such as:

a. Programs – consist of listing of activities intended to carry out policies attain the
objectives of the organization. It consists of identifying procedures, determining and
allocating resources needed for each step in the series.
b. Project – is a plan which pertains to a discrete activity unit which has a specific
starting and ending point.
c. Scheduling – provides the answer to the questions, when should a task, work, mission,
process, operation or project be completed. It is the function of determining how soon
an operation or project should begin and of establishing time sequence to meet due
dates and deadlines.
d. Budget – is a translation of a set of activities into quantitative figures.
 e. Forecasting – in an attempt to foretell or predict future trends, events or conditions
from known facts and to prepare for the expected changes in business or industry.

2. Standing Plans – are established set of decisions used by managers to deal with recurring
organizational activities.

Types of Standing Plans

a. Policies – are general statements that guide decision making. It defines the
boundaries within which decisions are made and decisions are directed toward the
attainment of the objectives.
b. Rules – are specifics statements of what may or may not be done. They provide ways
of informing the organization members what the boundaries of acceptable behavior. It
is more limiting than a policy.
c. Procedure – are series of steps that are designed to achieve a high degree of
regularity in a frequently recurring event. They are guides to action rather that to
think and they present a detailed and exact manner of accomplishing a certain
activity. It must be written to facilitate the flow of work.

3. On-going Plan – is used for continuing situations problem and activities which are
similar and consistent.

Planning at Different Levels in the Firm

1. Top Level Managers – perform long-range planning. The scope of planning encompasses the
whole organization. Examples of their planning coverage are the corporate mission, objectives
and major policies and strategies.
2. Middle Level Managers – are concerned with the planning of the more specific objectives of
implementing the general goals of top level management.
3. First Level Managers – are responsible for scheduling of workers and developing the
procedures for doing.

Factors Affecting Planning

Success and failure of planning depends on a number of factors. These are:

1. Conditions
2. Time factor
3. Resources available
4. Skills and attitude of management
5. Political, social and environmental conditions
6. Physical facilities
7. Collection and analysis of data

The Six P’s of Planning

1. Purpose – an effective planning system requires a clear understanding of the organization’s

purpose. What are the reasons for the organization’s existence? Is it to increase profit or increase
market share or generate more employment or introduce more products, etc.? This purpose must
be clear and elaborate.
2. Philosophy – philosophy incorporates the fundamental beliefs as to how the organization’s is to
be achieved. For long term survival and growth, a philosophy of ethical conduct must be
adopted. For example, General Motor’s philosophy is based upon profitability through quality,
service and ethical behavior. IBM’s philosophy was to elevate the level of the salesman to an
executive, etc.
3. Premise – this involves the strengths and weaknesses of the organization and its knowledge and
assumptions about its environment.by forecasting and other methods, the management can make
some conclusions about the environment trends and by knowing its own strengths and
weaknesses it can deal with the changing environment in a more intelligent way.
4. Policies – policies are general guidelines constraints that aid in managerial thinking and action.
In a typical organization, there are production policies, financial policies, accounting policies,
marketing policies, personnel policies, than the philosophy and form a basis for planning and
necessary operational actions.
 5. Plans – Plans represent specific objectives and action statements. Objectives are the goals to be
met and the action statements are the means to achieve these ends. These plans guide us step by
step as to how to reach the objectives and also at what stage the progress is at a given time.
6. Priorities – a particular organizational goal must be given a particular priority. The priorities
will determine an appropriate allocation or resources. Goal priorities would determine what is
relatively more important. A goal of higher priority would receive more attention and more
resources.

Decision Making

In the process of planning an organization decision is being made. Decision-making is where

choices are being made of which activity is to be carried out form other different activities. What this
mean is that before a decision can be mad, there must be alternatives or different ways to do something.
Out of these ways, there must be an action to pick one alternative out of the several alternatives. A
decision is therefore regarded as commitment to action. This is why a plan is useless unless it is
committed into concrete action.

Steps in Decision-Making

The following shows the relevant steps in planning. These are also the steps in decision-making
and we are going to consider them, though briefly, one after the other.

1. Define problem/issue – this is the first step in planning/decision making. The objective has been
set, and there is an obstacle toward the realization of the objective. As a result, before the
problem does exist and becomes an issue there must be an objective too identify which problem
must be threatening. That problem must be identified and isolated.
2. Collect relevant data – planning and decision making cannot take place unless there is data. But
the data should be meaningful to the problem already identified. This is where the information
gathered in the management function of forecasting will be useful. The assumptions made will
be further subjected to analysis so as to determine the relevance to the problem at stake.
Company records also part of the data which have to be processed.
3. Develop alternative solutions – the data having been assembled, the next stage is for
management to work out possible solutions. The solution can never be one because if it is so then
there can be no choice. The idea of choice suggests that at least there must be two solutions to
the existing problem. Out of these solutions, there can be a choice.
4. Assess the consequences – but before there can be choice, its consequences must be carefully
considered in the light of the problem threatening the objective. The manager should determine
the required resources in selecting an option. He should find out if such resources do exist and if
they can be put to alternative use that can bring better benefits. He must ensure that the
organization can handle the options and that such option is capable of tackling the problem
effectively.
5. Select the optimum solution – the solution having been worked out and ranked in order of
preference, the next stage is to choose. And the choice should be the most feasible one after
taking several factors into consideration vis-à-vis the objective and the problem at stake.
6. Implement solution – once the choice has been made, management should proceed to
implement. While implementing, there should be built-in motivational system that will enable
problem to be tackled satisfactorily. Job plan should be developed spelling out the necessary
activities to be done, who is to do them, how they are going to be done and at what time.
7. Measure result –while implementing, there must be control and feedback. To achieve this, there
should be regular reports on performance. The reports should be then being compared with the
objective. If there is a deviation, this means that there are no effective solutions yet to the
problem. Such deviation should be quickly corrected.

STEPS IN PLANNING FUNCTION:

I. Establishment of objectives:
a) Setting of goals and objectives to be achieved.
b) Stated in a clear, precise and unambiguous language.
c) Stated in quantitative terms.
d) Should be practical, acceptable, workable and achievable.
 II. Establishment of Planning Premises:
a) Planning premises may be internal or external. Internal includes capital investment policy,
management labor relations, philosophy of management, etc. Whereas external includes socio-
economic, political and economic changes.
b) Internal premises are controllable whereas external are non-controllable.

III. Choice of alternative course of action:

a) A number of alternative course of actions have to be considered.
b) Evaluated each alternative in the light of resources available
c) Choose the best alternative.

IV. Securing Co-operation:

After the plans have been determined, it is necessary rather advisable to take subordinates or those
who have to implement these plans into confidence. This motivates them, valuable suggestions can
come and employees will be more interested in the execution of these plans.

V. Follow up/Appraisal of plans:

After the selected plan is implemented, it is important to appraise its effectiveness and correct
deviations or modify the plan as required. Planning is basically a decision making function which
involves creative thinking and imagination that ultimately leads to innovation of methods and operations
for growth and prosperity of the enterprise

Diocese of Bayombong Educational System (DBES)

Saint Louis School of Solano, Inc.
Solano, Nueva Vizcaya
 Telefax # (078) 326 – 7458
e-mail: [email protected]

SELF-PACED LEARNING MODULE

Subject: ORGANIZATIONAL MANAGEMENT
Teacher:

FIRST QUARTER
ACTIVITY
WEEK 5

NAME OF STUDENT:__________________________
GRADE AND SECTION:________________

Part I. Questions for Discussion:

1. Define planning, and distinguish between formal and informal planning.

2. Managers must have the flexibility to change plans since the future is so uncertain. If this
statement is correct, what is the point of preparing plans that will be revised after all?
3. Differentiate Strategic planning, Tactical and Operational Planning based on your own
understanding.
RUBRICS IN SCORING
Criteria 3 2 1
Content Information is sufficient. Examples are Information is few. Some examples are Lack of information and no
accurate and well explained. well explained. examples are presented.
Relevance Information and examples given are Information and examples given are Information and examples given
relevant to real life situation. quite relevant to real life situation. are irrelevant to real life situation.
Additional points: 2 points for cleanliness of the paper.

Part II. The Observer

Interview your parents regarding the methods they use in making decisions for your family. Compare
their personal decision-making methods with the methods, techniques, and models discussed in this
lesson. Which among these are most closely related to you parent’s decision-making style or method?
RUBRICS IN SCORING
Criteria 6 4 2
Organization of ideas All information is organize in a Most information is organize in Some information is
logical manner and central idea a logical manner and central organize but not logically
is well develop. idea is well develop. presented and central idea
may be vague or too broad.
Content Information is sufficient. Information is few. Some Lack of information and no
Examples are accurate and well examples are well explained. examples are presented.
explained.
Relevance Information and examples Information and examples Information and examples
given is relevant to real life given is quite relevant to real given is irrelevant to real
situation. life situation. life situation.
Additional points: 2 points for cleanliness of the paper.

Diocese of Bayombong Educational System (DBES)

Saint Louis School of Solano, Inc.
Solano, Nueva Vizcaya
 Telefax # (078) 326 – 7458
e-mail: [email protected]

SELF-PACED LEARNING MODULE

Subject: ORGANIZATIONAL MANAGEMENT
Teacher:

FIRST QUARTER
ACTIVITY
WEEK 6

NAME OF STUDENT:__________________________
GRADE AND SECTION:________________

CASE STUDY: A COMMUNICATION SERVICE COMPANY

Basic Media Corporation is one among the largest communication facilities operating in Metro
Manila. Mr. Manolito Torres, the President, had long been convinced that effective planning in the
company is absolutely essential to success. For almost twenty years, he has been trying to get the
company planning program installed, without seeing much result.

Although everyone in the company seemed to work hard at the job, he noticed that individual
department head keeps going on his own way. Each makes decisions on problems as each comes up and
prides himself on doing effective job. Decisions of each department head do not have coordination. The
officer-in-charge of regularity matters is suggesting that an increase in communication service rate be
considered because the company is drifting.

The Public Relations department head feels that the increase could hardly be justified because
most customers feel that the company is making enough money that it can solve problems without
raising service rates. On the other hand, the operations department head plans to put all lines
underground to get rid of unsightly poles and lines, and to give customers better service. He feels that
costs are secondary ad customer’s satisfaction must be the priority.

Guide Questions:
1. What is the main problem of the company?
2. If you are the consultant, what steps will you suggest for the company to develop plans
effectively?
3. How will you suggest to the President that your recommendations be put into effect?
4. What advice will you give the company as to the rang/period covered by your plan?

Criteria Requirements Weights Score

Identification of the main Identify the main issue of the 5
issues and/or problems company
Analysis of the key issue All issues must be analyzed 5
Alternative solutions and Provide method of comparison 5
or/options between alternatives
Writing skills/Professional Includes overall composition, 5
Presentation structure, grammar, spelling and
punctuation