GROUP 1
Structural Elements of an Organization
What is organization?
An organization is a structured group of
people working together to achieve common goals.
It typically has defined roles, responsibilities, and a
formal structure to facilitate coordination and
cooperation among its members.
Types of organization
1. For-profit Organizations: Operate to make a
profit, such as corporations and sole
proprietorships.
2. Nonprofit Organizations: Aim to fulfill a
mission rather than make a profit, often focused on
social or charitable goals.
3. Government
Organizations:
Run
by
government bodies at different levels, providing
public services and enforcing laws.
4. Non-Governmental Organizations (NGOs):
Independent organizations that operate for various
social, environmental, or humanitarian purposes
5. Multinational Corporations (MNCs): Operate
in multiple countries, conducting business on a
global scale.
What is structural organization?
Structural organization is the formal
arrangements that are established to coordinate all
activities in order to implement a given strategy.
Thus, structure reflects the anatomy of a firm
through is focus on mechanism and processes that
link both vertically and horizontally the venous
parts of an organization
The Structural Elements of an Organization
1. Men - These are the different members of the
organization starting from the very top of the last
workman in the enterprise
2. Materials - Represents the materials necessary
in the distribution of functions or in the attainment
of its objectives
3. Machine - The tools necessary in producing its
desired output.
4. Methods - The procedures and ways used in the
course of its actions
5. Money - The financial resources of the
organization.
The Major Elements of Organizational
Structures
1. Distribution of functions - The functions to be
per- formed, the groupings of functions, and the
vertical and horizontal task relationships among
functions
2.
Vertical
and
horizontal
authority
relationships
a. Vertical authority relationships -involve the
hierarchical structure within an organization,
where authority and decision-making flow from
higher levels to lower levels.
b. Horizontal authority relationships, on the
other hand, emphasize shared decision-making and
collaboration among individuals or departments at
the same organizational level.
3. Communication and decision processes - The
manner in which formal decisions are made and by
whom.
4. Policies - The decision, rules or guidelines
established.
PRINCIPLES OF GOOD ORGANIZATION
1. Principle of Objective
A clear and complete definition of the
objective must be known. Any business concern or
any individual must adhere to a definite purpose or
aim.
The objective serves as the guide to future
planning and action. It integrates policies, projects
and programs. It enables everybody to act
consistently according to a common goal.
2. Analysis
A sound business judgement attempts to
build an organization through full knowledge of
the requirements of the business. There should be a
study as to whether the project could be finished at
the right time and at the right price the client will
be able to pay.
3. Simplicity
The simplest organization that will serve to
attain the desired objective is considered the best.
All activities which are not absolutely necessary,
should be eliminated, and those retained should be
handled in the simplest practical way.
4. Functionalism
The organization should be built around the
main functions of the business and not around the
individuals. A function is a normal or characteristic
way of doing a task and stands out distinctively by
itself. The nature of the business determines the
main function of the business.
5.
Centralization
of
Authority
and
Responsibility
In every organization there should be
centralized executive control or command
authority. This is necessary in order to have
authority and responsibility definitely fixed.
6. Departmentalization
In big organization, the scope of operation
can
be
very
broad,
necessitating
departmentalization to achieve a smoother flow of
operations.
7. Limited Span of Control
The number of subordinates an executive
can manage effectively.
Organization and Business Management
What is business?
An organization of people with varied skills,
which uses capital and talents to produce goods or
services.
What is management?
A. Management
It is the process of directing and
facilitating the work of people who are organized
for a common purpose.
B. Management is a function.
It is the function of getting things done
through the efforts of others. It is the application of
authority and the assumption of responsibility.
C. Management to be effective must be
systematic.
Things can be done better by means of plan
of action. Good decisions and actions are based on
the systematic application of sound principles of
complete and reliable facts, and of good practices.
When management is systematic, there can be no
room for personalities, prejudices, and unfair
judgment
D. Management to be successful must be
scientific.
Scientific management has done more to
advance and win the status of mankind today than
has any other single factor.
E. Management must be humanistic.
Where machine may have standard of
efficiency and be set to run at a given speed,
human beings, whether manager or workers,
cannot be so easily regulated to a pre determined
point of accomplishment
Management and Structure
The primary objective of management
structure is to facilitate the coordination and
control over the activities of the company. In any
sizable organization, there should be delegation of
responsibility because:
1. It is physically impossible for one person to
control effectively all the works of a large
organization through personal contact with it.
2. No person possesses the skills necessary to
guide personally the highly specialized activities in
a modern construction business.
.
The line of responsibility works in two ways:
1. From the executive to the supervisor down to the
workers under his jurisdiction and conversely,
2. From the workers to those who are in authority
over him
Management Control
Control - as a verb is defined by Webster's new
college dictionary as "to check or regulate to keep
within limits."
It also includes activities that require restrictive or
corrective action.
Management Control
Managerial control carries with it a much
broader interpretation to apply not only to check
nor command, but also the whip. Not only to
regulate, but also to stimulate.
The most effective tool for success is
management or executive control.
What is Effective Communication System?
An effective communication system is an
important element of executive control. Under this
system, adequate and reliable data are collected
and disseminated to the proper persons and units at
the right time.
To the manager, information has four purposes to
serve:
1. It must answer the questions what are we going
to do?
2. How well are we doing?
3. How can we do better?
4. Does it serve as an aid to coordination?
The Executive Function
Managers do not do the actual work of an
organization. His specific functions are:
1. To Plan
3. To Direct
2. To Organize
4. To Control
What is Planning?
Is the job of making things happen that
would otherwise not occur. It is an intellectual
process, the conscious determination and direction
of action.
Planning is economic and essential control
necessary because of uncertainty and change.
1. PLANNING
Plans may be classified as:
1. Objective of the enterprise
2. Politics
3. Procedures
4. Budget and
5. Programs
2. ORGANIZING
Improving the organization will always
improve performance. In short, a good
organization structure is necessary though not a
sufficient condition for good performance.
3. DIRECTING
In directing, two process enter the picture,
leadership and coordination. Leadership and
coordination are intimately bound together.
Without effective leadership, coordination cannot
be achieved.
4. Leadership
defined as; the process by which an
executive imaginatively directs, guides or
influences the work of others in choosing and
attaining particular ends. Leadership is more than a
excellence in administrative performance.
5. Coordination
is the process whereby an executive
develops an orderly pattern of group effort among
the subordinates, and secures unity of action in the
pursuit of common purpose.
How can executives Coordinates Efforts in their
Organization?
1. Clarifying authority and responsibility
2. Careful checking and observation
3. Facilitating effective communication
4. Utilizing leadership skills
6. CONTROL
The process by which an executive gets the
performance of his subordinate to correspond
closely as possible to chosen plans, orders,
objectives, or policies.
The span of control refers to still another
principle of organization. The number of persons
reporting directly to one executive should be
limited because, the larger the number, the more
difficult it is to supervise and coordinate them
effectively. Common practices are 4 to 8 for top
levels and 8-15 for the bottom levels.
7. POLICIES AND PROCEDURE
Policies are general statement, which guide
or channel the thinking and action of members an
organization.
Procedures are reflection of policy. It
involves the selection of course of action and
applied to future activities. Procedures also
detailed the manner in which a certain activity
must be accomplished.
Executive Leadership
The ability of those who manage or direct
employees in an organization to influence and
guide these individuals.
The bridge between objective and result.
1. Human progress is the crowning glory to
success.
2. Success is the result of good management.
3. Management is the effective, efficient and
economical utilization of the resources of man,
money, material, machine, methods and
memoranda.
What is Leadership?
The ability to motivate subordinates and
other people toward the achievement of the
organizational objectives.
The ability to influence, persuade and motivate
followers is based largely upon the perceived
power of the leader.
NON-CONCEPT OF LEADERSHIP
To achieve objective a leader must use the
autocratic style of leadership when he is the
expert or when there is an emergency situation
where quick and decisive actions appears to be
necessary.
EXAMPLE OF AN IDEAL LEADERSHIP
1. The Iroquois League adopted a constitution
called the Great Law of Peace.
2. Historically, native American leaders were
identified not by loud voices or assertive behavior,
but by their modest and unassuming manner.
3. Former Swedish Prime Minister Ingvar Carlson
exemplified leadership through humility. One of
Mr. Carlson`s guiding principles is that, “a
political leader should never ask others to do what
he himself was unable to do”
What is Delegation of Authority?
The key to effective management. In order
to have control, the manager must have authority.
Authority is the power of an administrator to
delegates functions to the next ranking executive,
who in turn transmit it to the employees who are
charged with the actual operations.
RESPONSIBILITY
AND
AUTHORITY
DEFINED
One famous professor on administration
defines responsibility as “Hell” without
authority. There are people who constantly seek
for authority but evade responsibility. This is
called buck passing. Authority and responsibility
must go together. But authority cannot be
delegated completely. It can only be shared.
The shortage of people who are capable of
leadership and supervision of other is one of the
biggest difficulties encountered by companies, and
this may be due to:
1. Lack of incentive in the supervisory positions.
2. Inadequate or ineffective recruitment of those
possessing potential leadership ability.
3. Insufficient training of present and potential
supervisory personnel.
SCIENTIFIC MANAGEMENT
Frederick W. Taylor - an Engineer who
was accredited the title of father of scientific
management
Task Management Theory
1. Division of labor and specialization
2. Unity of command and centralization of decision
making
3. One way authority
4. Narrow span of control.
HOW TO BE AN EFFECTIVE EXECUTIVE
To be effective executive, Engineers has five
habits in mind
1. They know where their time goes.
2. They focus on outward contribution.
3. They build on strengths. They do not start out
with the things
they cannot do
4. They concentrate on a few major areas where
superior
performance
will
produce
outstanding results. They force
themselves to
set priorities.
5. Engineers finally make effective decisions.
WORK SIMPLIFICATIONS
Rank and file employees are frequently
called upon to con- tribute. The term simplification
is often used to designate the cooperative project.
HUMANISTIC MANAGEMENT
Humanistic management is universally
applicable. Employees who are given definite
goals will clearly understand what they should
concentrate their talents on.
According to Konosuke Matsushita, for a
corporation to achieve its objective, it must above
all else, succeed in cultivating its human resources.
1. People first business philosophy.
2. Every employee must learn to think like a
business manager, and every employee
must share his knowledge with others while
striving to
explore new and better ways to
perform his duties.
3. The company is looked upon as a lifetime
education center or a training center for life.
The management philosophy adopted by
Konosuke Matsushita, the founder of Panasonic
Corporation of Japan was presented to know the
secret of his business success.
1. We have a good staff
2. Our policies were clear.
3. We upheld an ideal to be striven for
4. Our chosen field of business was appropriate at
the time.
5. We did not allow factions to form within our
company.
6. We regarded the company as a public institution.
7. We followed a policy of open management.
8. We worked towards a system of management by
all employees.
Directing People on the Job
To get your people to follow as you want
them to do promptly, and willingly, learn the art
and techniques involved in giving orders
effectively and practice using them correctly until
you become skilled in giving orders effectively.
What is an Order?
An order is a specific message conveyed by
a leader to a fol lower for the purpose of
influencing the follower to take desired action.
Orders are either verbal or written.
Whether verbal or written, every order will
fall into one of four distinct categories such as:
1. A request
2. A suggestion
3. Asking for volunteers
4. A direct order
Guiding principles on how to phrase orders
effectively. It should be:
1. clear
2. complete
3. concise
4. acceptable
Making an Order Acceptable
A. You make your order justified when you
explain why the action must be taken. This is
automatically done if you make the order complete.
B. To make your order tactful, you deliver it in a
way that will not adversely affect your relationship
with the receiver.
C. To make the order challenging, present it to
him in a way that makes him see it is a worthwhile
challenge to his knowledge, skill and experience.
D. Give sufficient authority. This is very
important. Whenever you give an order, make sure
it is accompanied by sufficient authority by giving
the receiver enough authority to enable him to
carry out the order without being frustrated by the
refusal of others to cooperate.
To make sure you that you constantly give orders
which are clear, complete, concise and acceptable,
always remember that every order has three
meanings:
1. The meaning you think you convey
2. The meaning you do convey, directly and by
implication
3. The meaning the receiver thinks you convey
How to Give Effective Orders
1. Clarify your objective
2 Obtain favorable attention
3. Make it simple and specific
4. Phrase it tactfully for best results
5. Explain why it should be done your way
6. Learn how much information and guidance he
needs
7. Let him have it
8. Inspire his confidence in you and the correctness
of your order
9. Note his readiness to act
10. Give him faith in his ability to carry it out.