Topic # 1. Basic decision making process:
* Decision Making Process
Decision Making – is the process whereby a course of action is selected
on the basis of two or more possible alternatives. It is also defined as premising,
identifying alternatives, evaluation of alternatives in terms of the goal sought, and
choosing of an alternative, that is making a decision
The formal decision process involves the following:
1. Recognition and definition of the problem
2. Development of an explanation of the relationship between the factors
relevant to the problem
3. Construction of hypothesis or building a model
4. Testing the hypothesis or model
5. Manipulation and stipulation and application of the model
Basis for decision – making:
1. None quantitative:
- Intuition
- Facts
- Experiences
- Opinions
- Effective management decisions
2. Quantitative basis:
- Linear programming
- Monte Carlo
- Gaming
Exercise : 1. How did you decide in choosing your course Civil Engineering?
1. Cite some substantial considerations, reasons in arriving at your final decision
Topic # 2 Functions of management
Introduction:
People who made major contributions in the field of management:
1. Frederick W. Taylor - the acknowledge “father of scientific
management” . His major concern is to increase efficiency in
production. He believed that application of scientific methods could
yield productivity without the expenditure of human energy.
2. Henry Gantt – development of graphic methods of describing plans and
making possible better managerial control. He is known for his famous
Gantt chart and today the forerunner of the Program Evaluation and
Review Technique (PERT).
3. Henri Fayol referred to as the father of modern management theory is a
French industrialist. He found out that industrial undertaking could be
divided into six groups:
1. Technical (Production)
2. commercial (buying, selling, and exchanging)
3. Financial (search for capital, and optimum use of capital)
4. security (protection of property and persons)
5. Accounting (including statistics) and
6. Managerial (planning, organizing, command, coordination and control).
Fayol listed 14 principles of
management
1. Division of work – specialization that
Economists consider necessary for efficiency in the use of
labor.
2. Authority & responsibility – Fayol finds authority and
responsibility to be related, the latter arising from the former
3. Discipline – He sees discipline as respect for agreements
which are directed at achieving obedience, application and
energy
4. Unity of command – This means that subordinates should
received orders from one superior only
5. Unity of direction – in each group of activities, the same
objective must have one head and one plan
6. Subordination of individual to general interest – when the
interest of management and the workers differs, management
must reconcile them
7. Remuneration – the remuneration and methods of payment
should be fair. It should afford the maximum satisfaction to
employer and employees.
8. Centralization – refers to the extent to which authority is
concentrated.
9. Scalar chain – This is the “chain of superior” from the
highest to the lowest rank
10. Order – breaking this into material and social order, he
believes that there should be an agreement of things and
people in the organization.
11. Equity – loyalty and commitment should be elicited from
personnel by a combination of kindness and justice on the part
of managers when dealing with subordinates.
12. Stability and Tenure – He pointed out the unnecessary
turnover to be both the cause and the effect of poor
management and stressed its dangers and costs.
13. Initiative – is conceived to be the thinking out and execution
of a plan and one of the satisfactions for an intelligent
individual to experience. He exhorts managers to sacrifice
personal vanity in order to permit sub ordinates to exercise it.
14. Esprit de corps – this is the principle that in unity there
strength . This in effect is the extension of the principle of
unity of command which emphasizes the need for teamwork
and the importance of communication in obtaining it.
A.
Planning/Coordinating
Planning – is the process which begins with objectives, and defines
strategies, policies, and detailed plans to achieve them. Deciding in
advance what to do, how to do it, when to do it, who is to do it, and how to
measure performance.
Kinds of plans, plans are varied and classified as follows:
1. Purpose or mission – identifies the basic function of the organization
2. Goals and objectives – are the results or achievements toward which
effort is directed
3. Strategies – involves a plan or a series of maneuvers for obtaining a
specific goal
4. Policies – general statements that guide or channel the thinking of
managers in decision making
5. Procedures – are plans spelled out in a detailed manner in which
activities must be accomplished
6. Rules - are usually the simplest type of plan which spell out specific
required action or non-action
7. Programs – are plans or schedules to be followed
8. Budgets – is an itemized estimate of expected income and expenses, a
statement of expected results expressed in numerical terms.
Kinds of Planning:
1. Strategic planning – Process of deciding on the Objectives of the
organization, the resource necessary to accomplish the objectives, the
policies that should govern the acquisition, use and disposition of the
same. Includes choosing company objectives, planning the
organization, setting personnel policies, setting financial policies, and
setting marketing policies and strategies.
2. Management control – process by which managers are certain that
resources are obtained and utilized effectively and efficiently in
accordance with the attainment of objectives of the organization.
Covers activities like formulating budgets, planning staff levels,
formulating personnel policies, working capital expenditure, deciding
on plant rearrangement and deciding routing expenditure.
3. Operational planning – process of assuring that specific projects are
carried out effectively and efficiently. Covers such activities like
controlling of hiring personnel, monitoring the implementation
policies, controlling credit extension and scheduling of production.
Steps in the planning process:
1.
2.
3.
4.
5.
6.
7.
8.
B.
Be aware of opportunities
Establish objectives
Develop premises
Determine alternatives
Evaluate alternative courses of action
Select a course of action
Implement the plan
Evaluation
Organizing – to create a structure with fully
integrated parts that are related to each other
and is governed by their relationship to the
whole
Organizing is concerned with:
1. Determining specific activities needed to achieved a set of
defined goals and objectives
2. Grouping the different activities into a logical pattern or into
common areas so as to avoid duplication or conflicts and ensure
smooth flow of work
3. Assigning the activities to specific persons, departments or
groups
Theories of organizing:
1. The classical theory – put emphasis on
Rationale, efficiency, work accomplishment, and balance in the
size of the department. Structure of organization is given
importance, division of labor provides the basis for advances in
human skills in mastery of the environment.
2. The neoclassical theory - considers the contributions of the
behavioral science by paying too much attention to human
relations individual and group behavior, recognition of the
informal groups within the formal organization, and
improvements of relationship.
3. The Fusion Theory - stresses the importance of the individual to
improve the organizational climate by way of socializing process
4. The System Theory – views organizing as a system of variables
that are dependent upon one another.
5. The Quantitative Theory - the theory covers only a portion of
what aspects of management should be considered that will
directly affect organizing work.
Organizational Strategy - There are major
strategies and policies that give an
overall direction to operations as follows:
1. Growth – growth strategies need answers to Their questions,
How much growth should occur? How fast, and where?
2. Finance – which every business enterprise must have, should
have a clear strategy for
Financing its operations
3. Organization – Organizational Strategy has to do with the types
of organizational pattern an organization will adapt. Questions
like how centralized or decentralized should the decision making
authority be? What kind of department patterns are most suitable.
4. Personnel – deal with topics like unionism, compensation,
selection, hiring, training, and development, and appraisal.
5. Public Relations – Strategies in this area cannot be independent
for they must support other strategies and efforts. This must be
designed in the light of the organization’s philosophy and type of
business, its acceptance to public, and its susceptibility to
regulation by government agencies
6. Products and Services – Business enterprise exists to provide
some products or goods to satisfy peoples need.
7. Marketing – Marketing strategies are designed to provide
managers with new ideas and approaches on how customers will
patronize products and services.
Characteristics of an effective organization
1. The entire organization, the important subparts, and individuals manage their work against the stated goals
and objectives
2. Communication laterally and vertically are very clear and
definitive. They share the relevant facts and necessary
information
3. The reward system is such that managers and supervisors are
rewarded for short-term profit and production performance,
growth and development of their subordinates; and for
harmonious and viable working groups
4. The organization which is an open system relates itself with
every member of the system and with the larger environment.
5. There is shared value and a management strategy to support it
and try to help each member in the organization to maintain his
integrity and develop his loyalty to the enterprise.
6. The organization and its members operate in an “action –
research” way. The general practice is to build in feedback
mechanisms so that individuals and groups can learn from their
own experience
Tool and Techniques of Organization
1. Records
2. Reports
3. Organizational Charts
4. Manuals of Operations
Illustrate organizational Chart
1. Line Organization
2. Line and Staff Organization
3. Pure Functional Organization
4. Line and Functional Staff Organization
5. Committee Organization
C.
See separate file
Staffing and Communicating
Staffing basically is putting qualified people in
the box or slot in the organizational chart where
organizational design was created so as to ensure
that the goals and objectives on the organization
will be achieved.
Communication is a process by which information
is exchanged between individuals through a
common system of symbols, signs or behavior .
also exchange of information transmitted or
conveyed verbal or written message. In the organization, flow of communication could be vertical
downward or upward or horizontal in the scalar
chain.
Assignment - Make research on
Staffing and Communicating
D. Directing
Directing – means encouraging subordinates to work toward achieving company
objectives. It is the human-people- to- people aspect of managing by which
subordinates are motivated, persuaded, and led to effectively and efficiently
contribute towards realizing the very reason for which the enterprise or company
has been established.
The management function is sometimes referred to as: Influencing,
Actuating, Guiding , or simply Leading or Motivating.
The company exist with responsibilities to :
1. Help solve problems of the society
2. Satisfy its internal needs to attain company
Goals/objectives
4. Respond adequately to the human needs of
its People
How these responsibilities will be achieved has much to do with how well
directing is exercise by
Those who are given this function:
e.g. The executives, Managers, administrators,
coordinators, supervisors, foremen.
Scientific Management
Interest of human factor of an organization was
Triggered in 1911 by Frederick Winslow Taylor , an engineer, He
published the principles of scientific management.
Principles of scientific management
1. Develop a science for each work element of a man’s work which replaces the old rule
– of the thumb.
2. scientifically select and then train, teach and develop the workman. Whereas in the
past he chose his own work and trained himself as best he could.
3. Heartily cooperate with the men so as to ensure that all work being done is in
accordance with the principles of the science which has been developed.
4. There is an almost equal division of the work and the responsibilities between
management and the workmen. The management takes overall work for which it is
better fitted than the workmen. Whereas in the past almost all work and greater part
of the responsibilities where thrown upon the workmen.
Professionalizing management
Henri Fayol a French industrialist, drew up
14 principles of administration:
1. Division of work – Economists have a word for this specialization.
Each member of the organization has his own assigned job requiring
special skills and knowledge.
2. Authority and responsibility – the right to command and the power
to make oneself obeyed.
This must be balanced by responsibility, i.e, the reward or penalty
for the use of this power.
3. Discipline – This is seen in terms of “obedience, diligence, energy,
correct attitude, and outward marks of respect, within the limits fixed
by agreement between a concern and its employees”.
4. Unity of command – Every subordinates must take orders only
from one boss, Fayol claimed that if this principle is violated ,
“authority is undermined, discipline is in jeopardy, order disturbed
and stability threatened”.
5. Unity of management or Unity of direction – each organizational
objective must have only one plan and one manager to carry it out.
6. Subordination of individual interests to the common good – the
organizational interest must come before the interest of the
individual
7. Remuneration of personnel – work pay should be fair. It should
afford maximum satisfaction authority with employer and
employee.
8. Centralization – Centralization of authority is a natural tendency
of organizations since most of the major decision are exercise by few
people at the top of the hierarchy.
9. Hierarchy or “Scalar Chain” – is an unbroken order of
supervision, flow of authority from top level executives to the
bottom rank of the organization.
10. Order – breaking this into material and social order, he believes
that should be an agreement of things and people in the organization.
10. Equity – loyalty and commitment should be elicited from personnel
by a combination of kindness and justice on the part of managers
when dealing with subordinates.
11. Stability and Tenure – He pointed out the unnecessary turnover to
be both the cause and the effect of poor management and stressed its
dangers and costs.
12. Initiative – is conceived to be the thinking out and execution of a
plan and one of the satisfactions for an intelligent individual to
experience. He exhorts managers to sacrifice personal vanity in order
to permit sub ordinates to exercise it.
13. Esprit de corps – this is the principle that in unity there strength .
This in effect is the extension of the principle of unity of command
which emphasizes the need for teamwork and the importance of
communication in obtaining it.
Topic # 3 Motivating
E.
Motivating
Motivating – the intrinsic inducement to propel someone to
perform to think, feel and perform in certain ways.
Theories of motivation
1. The economic man – The belief that
Persuaded the early 1900 that man worked to fulfill his
economic needs. With long and hard work comes high pay to
take care of his material and physiological needs
2. The social Man – Experiments by Mayo at the Hawthorne
plant of Western Electric Co. showed that man is largely
gratified in a social milieu. He craves for affiliation and
communion with his fellow workers. It is in and with a group
that he develops himself and performs more
3. The Motivated man – Herzberg found out that individual
workers have two different categories of needs that are
essentially independent of each other but affect behavior in
different ways
The two Factors are:
Hygiene Factors
Relating to environment around itself
- Policies & admin.
- Supervision
- Working condition
- Interpersonal relationship
- Growth & development
Satisfying Factors
Relating to job itself
- Achievement
- Recognition of
accomplishment
- Challenging job
- increased responsibility
- Money
- Security
4. The complex man – Maslow averred that man’s needs fall
into a hierarchy of relative prepotency. Needs ranges from
most basic physiological to the most intricate psychological
state of self-realization.
5. The Three-Tiered Satisfied man – Alderfer postulate a three
tiered model of needs progressing from existence to relatedness
and last to growth (ERG)
6. The Achiever – McClelland postulated that people with high
need to achieve more than those with low need and with no
need at all. They want to get concrete feedback on how they
performed since they are concerned with personal
accomplishment
7. The expectant man – The theory of expectancy was develop
by Vroom in 1964.
The model was based of four assumptions as laid out by
Lawler
1. Individuals have preferences for various outcomes
(goals that are desirable to them)
2. Individuals have expectancies about the likelihood that
an action on their part will lead to satisfactory
performance
3. People have certain instrumentalities (probabilities)
about performance that will lead to attainment of
desirable outcomes
4. The action a person chooses to take is determined by
the expectancies, instrumentalities and preference that
he has at that time
8. The Managed man – The managers assumptions about people
and their consequent operationalization largely define his style
of managing them. A managers effectiveness is a function of
such assumptions about human nature. Categories of these
assumptions are explained in Theory X and Theory Y
9. The learning reinforced man – man learns from his
environment and greater control of this environment improves
his development.
-
-
F.
Theory X
The typical man dislikes work and will avoid it if he can
In managing people , this is the process of directing their efforts and
controlling their behavior to fit the needs of organization
Without this active intervention by mgt., people would be passive, even
resistant to organizational needs. They must therefore be persuaded ,
controlled, and threatened with punishment. Their activities must be
DIRECTED.
Theory Y
Work is as natural as play
People are not by nature passive or resistant to organizational needs. They
have become so as a result of experience
The motivation, the potential for development, the capacity for assuming
responsibility, and the readiness to direct behavior toward organizational
goals are all present in people. Management does not put them there. It is
the responsibility of mgt to make it possible for people to recognize and
develop these human characteristics for themselves.
Leading
Management by values
Values – comprise the things that are most
important
To us, they are deep-seated pervasive
standards
That influence almost every aspect of our
lives.
Values in company settings are group into
a system with following components.
1. Personal
2. Professional/managerial
3. Organizational
4. Societal
Values of business owners
1. Economic values –
2. Political Values
3. Social values
4. Theoretical values
5. Aesthetic values
6. Religious values
Predominant Philippine Values
1. Social acceptance
2. Economic security
3. Social Mobility
Management Filipino Style
1. Manager “by Kayod” – kayod is a Filipino term Which means to sweat it out or to
give oneself to hard work. Manager is action hungry, highly but his manner is formal and
that of an introvert A serious worker and will not give in to bribing or any anomalous
deal.
2. Manager “by Lusot” – lusot is another Filipino word which capitalizes on a
loophole. Manager is always on lookout for loopholes of anything and will use it to
avoid too much work, or an excuse for failure.
3. Manager “By Libro” – Libro is a book. This type of Manager operates by dictates of
book- what the manuals and other formal documents say. He is systematic though
analytical , has adequate formal training in management.
4. Manager “by Oido” – Learns his managerial skills by oido or by ear. He has vast
field of practical experience for his lack of formal mnmgt. education. Opposite of libro
5.Manager ‘By Ugnayan”- He is a hybrid of all types Of manager now, and different in
another time depending on the situation. A gifted reconciler of all philosophies and
beliefs held by various types of manager. He participatory, and coordinative.
LEADERSHIP
LEADERSHIP - refers to those who provide direction and guidance. The relationship
in w/c one person influence the others to work together willingly on related task to attain
goals desired by the leader and or group.
Leadership styles based on the use of
Authority
1. Autocratic Leader Commands and expects Compliance, is dogmatic and positive,
and leads By ability to withhold or give rewards and punishment.
2. Democratic/Participative Leader – consults With subordinates on proposed actions
and Decisions and encourages participation from Them. Consult with subordinates and
make actions
3. Benevolent-Autocrat Leader – The leader is a Father figure who wants everyone to
feel good. The emphasis is keeping everyone happy and satisfied. He listens to his
subordinates opinion before making a decision, ultimately, the decision is his own.
effectiveness are sacrificed in order not to “rock the boat”
4. Liberal Leader or Free-rein Leader – Uses his power very rarely, if at all giving his
subordinates a high degree of independence. Depends on subordinates to set their goals
and the means of achieving them.
5. Laissez-Faire – Let people do as they choose. practically no leader at all.
6. Manipulative-Inspirational – This style of leadership is hard to find.
Ten Power Tools of Leadership:
1. Persuasion
2. Patience
3. Gentleness
4. Teachable
5. Acceptance
6. Kindness
7. Openness
8. Compassionate
confrontation
9. Consistency
10. Integrity
The big difference between a Boss and a Leader
1. The boss drives his men, the leader inspire them
2. The boss depends on authority, the leader depends on goodwill
3. The boss evokes fear, the leader radiates love
4. The boss says “I”, the Leader says “We”
5. The boss shows who is wrong, The leader shows what is wrong
6. The boss knows how it is done, The leader shows how to do it
7. The boss demands respect, The leader
Commands respect
TOPIC # 4 Controlling
G. Controlling – The managerial function and correcting performance in order to make
sure that organizational objectives and plans that were deliberately devised to be attained
are being accomplished.
Management Control by Predetermined policies
Management Control by Predetermined Standards
Management Control by Responsible Personnel
V - Generalization:
• Management in general is present in all kinds
of human endeavor, in all kinds of activity that we people do and professionals
do adhere to specific standards. In the practice of engineering, Engineers do
exercise management
after doing technical job when they rise to the supervisory and managerial levels
VI – Applications:
Specific to topics in this module, the applications are quite vague because men do
exercise management in corporate
Business and anywhere in the industry.
VII– Assessments:
Answer the following:
1. Which type of Filipino manager do you think is effective in today’s industrial
situation? Explain your answer
2. Explain further the Complex man
3. What do you mean by the words “Beware of opportunities “ in the planning
steps?
4. If a manager fires an employee, what type of decision is the manager
exercising?
IX – Assignment:
Reaction Paper on these topic