Black-and-White-Border-Stationery-Paper-A4-Document_20250831_160405_0000.pdf

Business

1. REVIEWER
Business Organization Reviewer
#Definition of Organization
Organization - A collection of persons working together for a common purpose.
>A group of individuals cooperating willingly and effectively for a common goal.
Forms of Business Organization
1. Sole/Single Proprietorship
Advantages__ Easy to organize; requires small capital, All profits belong to the owner, Owner makes own
decisions
Disadvantages__Unlimited liability, Lack of stability; limited access to credit, Limited knowledge and skills
2. Partnership
Advantages__More capital and credit available, Partners share profits, Wider knowledge and skills
Disadvantages__ Unlimited liability; lack of stability, Possible management disagreements, Idle investment
3. Corporation
Advantages__Limited liability, Easy to raise capital, perpetual life, Specialized management
Disadvantages__Difficult to organize, Strictly regulated by government, Impersonal employer-employee
relationship
4. Cooperative
Advantages__Equal vote for members regardless of shares, No personal liability for debts (unless
reckless/fraudulent)
Disadvantages__Decision-making can be difficult (everyone has a vote), Hard to attract members who only want
financial gain.
Basic Considerations in Organization
Clear and complete statement of the objectives—Thorough analysis of the entire position surrounding the
business
Necessary functions should be determined—Men best fitted to head each department or division should be
selected
Principles of Organization
Principle of Objective - Clear goals must guide the organization.
Principle of Analysis - Careful study of position and situation.
Principle of Simplicity – Organization should be simple and clear.
Principle of Functionalization - Group activities by function.
Principle of Departmentalization - Divide organization into departments.
Principle of Centralization - Authority and responsibility centralized.
Principle of Limited Span of Executive Control - A manager should supervise only a reasonable number of
subordinates.
Case Analysis • Objectives of the case methods
Teach students to think independently but at the same time to work cooperatively in team-like situations—
Introduce realism into formal instruction
Teach by demonstration, the infinite variety of goals, problems, facts, conditions, conflicts, personalities which
occur in the business world—Teach decision-making—Teach the importance of business research as a tool for
use in problem-solving—Present descriptions of actual business situations to familiarize students with business
principles and methods
STEPS IN COMING UP WITH A SATISFACTORY
Analysis(1)Read the case for the first time to get a general idea of the situation and the problem
(2)Read the case the second time to get more solid idea of the problem situation
(3)Read the case the third time to take note of the pertinent facts which may hold the key to problem
identification and solution
(4)Define the problem
(5)Set your objectives for the solution of the problem: "What do I.

2. want to accomplish?" (6)Outline the alternative courses of action
(7)Analyze the advantages and disadvantages of each alternative course of action (8)Recommend a decision(9).
Suggest specific steps to implement the decision
FORMAT
1__Background: Short intro of the case, Key facts & issues, Main problem to solve
2__Analysis Report: Identify the problem, Find causes (internal & external), Suggest alternatives (pros & cons),
Recommend the best solution,
3__Exhibits: Charts, tables, or graphs, Data summary to support analysis
THE ANALYSIS REPORT
*The Problem - clear and concise statement of what should be addressed
The Objective - what are the things that MUST be done to immediately address the problem
Areas of Consideration - important issues are those that have a significant effect on: profitability, strategic
direction of the company, source of competitive advantage, morale of the company's employees, and/or customer
satisfaction
(4)Courses of Action - must solve the present problem, not generate a new problem
Recommendation - the course of action that must be implemented
Plan of action - steps to be taken based on the given recommendation
Potential Problem - the concern/s that might happen when the recommendation has been put into action
Contingent Plan of Action - alternative action to be done if potential problem arises
Management Theories
Approaches to management
(1)BEHAVIORAL SCHOOL/HUMAN BEHAVIOR APPROACH - Analyzes management from the interpersonal relations
of men in the organization as they interact with one another.
(2)SOCIAL SYSTEMS SCHOOL - Considers the organization as a social organism which is subjected to pressures and
conflicts coming from the social environment.
(3)SYSTEMS SCHOOL - Considers organization as a system of mutually dependent parts (ex. system of planning,
organizing, controlling, etc).
(4)EMPIRICAL SCHOOL/CASE.
APPROACH Management principles are formulated based from past experiences, incidents, and cases.
(5)SOCIO-TECHNICAL SCHOOL • Pattern of behavior in the organization is determined by the interaction of two
systems (social system and technical system).
(6)SITUATIONAL SCHOOL The practice of management largely depends upon existing set of circumstances, thus
no action can be universal.
(7)MANAGERIAL ROLES SCHOOL
• Focuses on the various activities that managers perform in the organization
.( 8.) OPERATIONAL SCHOOL • Management is viewed as a universal process regardless of the type of organization
or level of management in an organization.
(9. )MATHEMATICAL SCHOOL • Management is viewed as a system of mathematical models and processes which
expresses management problems into goals and objectives.
(10. )DECISION-THEORY SCHOOL
• Members of the organization are decision-makers and problem solvers.
•
Major Contributors
(1.) FREDERICK W. TAYLOR (1856-1912) • The "Father of Scientific Management" • His principles emphasized the
use of science, creation of group harmony and cooperation, achievement of maximum output and development of
workers.
(2.)FRANK AND LILLIAN GILBRETH • Conducted studies on fatigue and motion. • Used still photographs and film
strips to study worker movement in order to devise the "One Best Way" to perform a task. Their innovations in
office furniture design led the way to the study of egonomics.
(3.)HENRI FAYOL (1841-1925) • "Father of Modern Management Theory" • Believed that managers are not made.
• Six Activities in Business Operations
(1)Technical - related to production, manufacturing, and operations.
(2)Commercial - buying, selling, and exchanging activities.
(3)Financial - acquiring and using capital/money resources.

3. (4)Security - protecting property and people within the organization.
(5)Accounting - recording, reporting, and analyzing financial information.
(6)Management - coordinating and integrating all activities to achieve goals.
14 Principles of Management
(1)Division of Labor - specialization increases efficiency and productivity.
(2)Unity of Command - each employee should receive orders from only one superior.
(3)Remuneration of Personnel - fair and adequate compensation for employees.
(4)Order - proper organization of materials and people.
(5)Authority - managers must have the right to give orders and expect obedience.
(6)Unity of Direction - one head and one plan for activities with the same objective.
(7)Centralization - degree to which authority is concentrated or dispersed.
(8)Equity - fairness and justice in treatment of employees.
(9)Discipline - employees must respect rules and agreements.
(10)Subordination of Individual Interest - interests of the organization > personal interests.
(11)Scalar Chain - clear line of authority from top management to lowest rank.
(12)Stability of Tenure - job security promotes efficiency and loyalty.
(13)Initiative - allowing employees to take part in planning and problem-solving.
(14)Esprit de Corps - promoting teamwork, unity, and morale within the organization.
Management by Objectives (MBO) - A comprehensive managerial system, integrating many key
activities directed toward effective achievement and organizational and individual objectives.
(1)Objective Setting
*Define clear, measurable, and achievable goals for the organization and employees.
*Ensures everyone knows what is expected.
(2)Action Planning
*Develop specific plans and strategies to achieve objectives.
*Assign tasks, responsibilities, and deadlines.
(3)Periodic Reviews
*Regular monitoring and evaluation of progress.
*Provides feedback and allows for adjustments.
(4)Annual Evaluation
*Comprehensive assessment of overall performance at the end of the year.
*Used for rewards, recognition, and planning for the next cycle.
The Business Manager
-Roles of Managers
(1)Leadership Role - Guides, motivates, and directs employees.
(2)Monitor Role - Observes and evaluates performance and environment.
(3)Resource Allocator - Decides where to allocate resources (time, money, people).
(4)Entrepreneurial Role - Initiates change and innovation.
(5)Spokesman - Represents the organization to outsiders.
(6)Disturbance Handler - Deals with conflicts, problems, and crises.
(7)Figurehead - Symbolic head of the organization, attends formal activities.
(8)Disseminator - Shares information with team members.
(9)Negotiator - Bargains and represents organization in agreements.
-Three Main Factors of Managerial Roles
(1)Interpersonal - Roles that involve interaction with people (leader, figurehead, liaison).
(2)Informative - Roles related to gathering and sharing information (monitor, disseminator,
spokesman)

4. (3)Decisional - Roles involving decision-making (entrepreneur, disturbance handler, resource allocator,
negotiator).
-Three Basic Skills of a Manager
(1)Technical Skills – Knowledge and proficiency in specialized activities (methods, processes, tools).
(2)Human Skills – Ability to work with people effectively (communication, motivation, teamwork).
(3)Conceptual Skills – Ability to see the "big picture," analyze complex situations, and make strategic
decisions.
-Function of Management: Planning
*Major Functions
(1)Planning - deciding what to do, how, when, and who will do it.
(2)Organizing - arranging resources and tasks to achieve plans.
(3)Staffing - hiring, training, and developing employees.
(4)Directing - guiding, motivating, and leading people.
(5)Controlling - monitoring performance and correcting deviations.
PLANNING
"Planning is a process which begins with objectives and defines strategies, policies, detailed plans to
achieve them"
-George A. Steiner
*Nature of Planning
(1)Contribution to purpose and objectives - ensures plans support overall goals.
(2)Primacy among manager's tasks – planning is the first step before other functions.
(3)Pervasiveness – done at all levels (top, middle, lower).
(4)Efficiency of resulting plans – aims to maximize results with minimum resources.
*Types of plans
(1)STRATEGIC PLAN
(2)TACTICAL PLAN
(3)OPERATING PLAN
• Provides the specifics as how the tactical plan will be attained.
• (Two types)
(1)Single - use plan - applicable to activities that do not repeat.
(2)Ongoing plan - utilize for continuing situations, problems, concerns and activities.
Basic principles
(1)Realistic – achievable, not overly idealistic.
(2)Flexible – can adjust to changes.
(3)Must start with simple projects – begin with small, manageable projects.
(4)Based on needs – must address actual organizational requirements.
(5)Democratic – encourages participation from members.
(6)Include social responsibility – considers impact on society.
*Basics steps
(1)Establish objectives – decide goals.
(2)Evaluate the environment – study conditions and challenges.
(3)Determine the best alternative strategy – select most effective course of action.
(4)Implement the action plan – put the plan into practice.
(5)Evaluation of results – check success and make improvements.