ISP-103 ORGANZATIONAL REVIEWER AND REFERENCE

IS

1. ISP 103 ORGANIZATION AND MANAGEMENT
NATURE AND CONCEPT OF MANAGEMENT
MANAGEMENT - co ordination of human effort and material.It is the brain of the
enterprises/business. It helps in predicting what is going to happen in future.
HISTORY OF MANAGEMENT - word manages comes from the Italian word "Maneggiare" means
to handle; which is derived from the Latin word "Manus" means hand.
MANAGER - responsible for planning and directing the work of a group of individuals
LEVELS OF MANAGERS- top manager, middle manager, and first line manager
TOP MANAGER - responsible for making the organization wide decisions and
establishing plans and goals that affect the entire organization.
MIDDLE MANAGER - include all levels of management ( top and first line level)
FIRST LINE MANAGER- lowest level of managers (often called supervisors)
10 MANAGERIAL WORK BY HENRY MINTZBERG
1.FIGUREHEAD - represent the organization in all matters of formality
2.LEADER - relationships between manager and employees.
3.LIAISON - interacts with peer and people outside the organization.
4.DISSEMINATOR - transmits special information into the organization.
5.SPOKESPERSON - disseminates the organization information into it's environment.
6.MONITOR -recieves and collect information
7.ENTREPRENEUR ROLE- initiates change
8.DISTURBANCE HANDLER ROLE - deals with threats to the organization; the one who
gives solution in problem.
9.RESOURCE ALLOCATOR ROLE - chooses where the organization will extend its effort
10.NEGOTIATOR ROLE - negotiates on behalf of organizations
MANAGERIAL SKILLS - may be classified as conceptual, technical and human.
CONCEPTUAL SKILLS - enable managers to think of possible solutions to complex
problems.
TECHNICAL SKILLS - are also important for managers for them to perform their tasks
with proficiency with the use of their expertise.
HUMAN SKILLS - enable managers in all levels to relate well with people.
MANAGEMENT FILIPINO STYLE
MANAGER BY KAYOD - means to sweat it out or give oneself to hardwork.
MANAGER BY LUSOT - capitalizing on a loophole.
MANAGER BY LIBRO - operates by the dictates of the book.
MANAGER BY OIDO - learn managerial skills by oido or ears.
MANAGER BY UGNAYAN - hybrid of all types of manager
FUNCTIONS OF MANAGEMENT
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 activities.
ORGANIZING - Demands assigning tasks, setting aside funds, and bringing
harmonious relations among the individuals and work groups or teams in the
organization.
STAFFING - indicates filling in the different job position in the organization's
structure.
LEADING/DIRECTING - entails influencing or motivating subordinates to do their
best.
CONTROLLING - involves evaluating and, if necessary, correcting the performance of
individuals.
THE FIRM AND ITS ENVIRONMENT
ENVIRONMENTAL SCANNING - is a process of gathering, analyzing, and dispensing information
for tactical or strategic purposes.
BUSINESS ENVIRONMENT - According to Stephen P. Robbins & Mary Coulter, "Environment
refers to institutions and forces that affect organizational performance.
EXTERNAL BUSINESS ENVIRONMENT - may be defined as all those conditions and forces which
are external to the business and are beyond the individual business unit, but it operates within
it.
EXTERNAL ENVIRONMENT - refers to the environment that has an indirect influence on the
business. The factors are uncontrollable by the business.
TYPES OF EXTERNAL BUSINESS ENVIRONMENT ; micro and macro
1.MICRO EXTERNAL BUSINESS ENVIRONMENT
CUSTOMERS - The major task of a business is to create and sustain customers.
A business exists only because of its customers.
EMPLOYEES - Employing staff with relevant skills and experience is essential.
SUPPLIERS - An important force in the micro environment of a company is the
suppliers.
STOCKHOLDERS - As organizations require investment to grow, they may
decide to raise money by floating on the stock market
MEDIA - Positive media attention can "make" an organization (or its products)
and negative media attention can "break" an organization. Organizations need
to mange the media so that the media help promote the positive things about
the organization.
COMPETITORS - Competition is a basic feature of an open market economy. No
business organization can ignore its competitors and their business strategy.
2.MACRO EXTERNAL BUSINESS ENVIRONMENT
POLITICAL - How changes in government policy might affect the business.

2. ECONOMIC - How the economy affects a business in terms of taxation, government
spending, general demand, interest rates, exchange rates and global economic
factors.
SOCIAL - how consumers, household and communities behave and their beliefs.
TECHNOLOGICAL - how the rapid pace of change in production processes and
product innovation affect a business.
LEGAL - the way in which legislation in society affects the business.
ENVIRONMENTAL - Growing awareness of the potential impacts of climate change is
affecting how companies operate and the products they offer, both creating new
markets and diminishing or destroying existing ones.
INTERNAL ENVIRONMENT - composed of the elements within the organization, including
current employees, management, and especially corporate culture, which defines employee
behavior.
MISSION STATEMENTS - describes what the organization stands for and why it exists.
PRODUCTS - the item offered for sale; can be a service or an goods.
MACHINERY - refers to specific machines.
ORGANIZATIONS STRUCTURES - The formal structure of an organization is the hierarchical
arrangement of tasks and people.This structure determines how information flows within the
organization, which departments are responsible for which activities, and where the decision-
making power rests.
ORGANIZATIONS CULTURE - organization's personality
LESSON 2:
CULTURAL INTELLIGENCE - an individual's ability to favorably receive and adjust to an unfamiliar
way of doing things.
Anthropologist Edward T. Hall noted that the way people approach and deal with time varies
across cultures.
MONOCHRONIC CULTURES - refer to cultures wherein people tend to do one thing at a
time;also, these cultures emphasize punctuality and sticking to set rules.
POLYCHRONIC CULTURES - on the other hand, are more flexible as regards time; accomplishing
many different things at once is also common for these cultures.
POWER DISTANCE - The degree to which a society accepts or rejects the unequal distribution of
power among people in organizations and the institutions of society.
UNCERTAINTY AVOIDANCE - The degree to which society is uncomfortable with risk, change,
and situational uncertainty.
INDIVIDUALISM - COLLECTIVISM - The degree to which a society emphasizes individual
accomplishments versus collective accomplishments.
MASCULINITY - FEMININITY - The degree to which a society values assertiveness and feelings of
material success versus concern for relationships.
TIME ORIENTATION - The degree to which a society emphasizes short-term thinking versus
greater concern for the future or long-term thinking.
LESSON 3:
ECONOMY - encompasses all activity related to production, consumption and trade of goods
and services in an area.
MEANS OF LIVELIHOOD
HUNTING AND FISHING PHASE - Ancestors obtained food by hunting and fishing.
PASTORAL PHASE - Presence of large number of livestock.
HANDICAFT PHASE - Items or objects were made by skilled and trained manual laborers
(sculptures, jewelry, furniture)
AGRICULTURAL PHASE - Concept of land ownership. Began to work as a farmer or a fisherman.
INDUSTRIAL PHASE - Presence of manufacturing companies. Machineries were used.
EXTENT OF ECONOMIC ACTIVITY
HOUSEHOLD ECONOMY - The needs of the family were satisfied first through the contribution
of the family members.
VILLAGE ECONOMY - Economic and social relations spread among various families
NATIONAL ECONOMY - Grouping of villages into bigger and broader social
MEDIUM OF EXCHANGE
BARTER ECONOMY - Done during primitive era, exchange was done which was the direct
exchange of goods for goods, services for services, goods for services or services for goods.
MONEY ECONOMY - There came to circulate in the market certain objects, such as bars of
metal, buttons, tools, and utensils which were stable in value, durable and generally accepted
by the public. Money was used as the "medium of exchange".
MONEY AND CREDIT ECONOMY - Due to increase in volume and frequency, it became
imperative to allow others to purchase one's goods or engage one's service with payments to
be paid at some future date. CREDIT - is the power to obtain economic goods and services in
exchange for the promise to pa the agreed equivalent at some future date.
PLANING LESSON 1
PLANNING - is a process that involves the setting of the organization's goals, establishing
strategies for accomplishing those goals, and developing plans of action or means that
managers intend to use to achieve organizational goals.
PLANNING INVOLVES GOL SETTINGS:
VISION - a mental image of what the organization will be in the future, as desired by the
company management and employees.
MISSION - basic purpose of an organization and range of their operations
OBJECTIVES - steps needed in order to attain desired ends.
WHY PLANNING IS IMPORTANT?
(1)Planning provides direction to all of the organization's human resources-both managers as
well as employees.(2)Planning is important because it reduces uncertainty.(3)Minimizing of
wastes will result if there is proper coordination of activities due to planning; negative practices,
ineffectiveness, and inefficiencies could be easily detected and can be corrected or eliminated.
PLANNING LESSON 2

3. PLANNING CAN BE DESRIBED IN TERMS OF: COMPREHENSIVENESS, SPECIFICITY, TIME FRAME,
FREQUENCY OF USE
COMPREHENSIVENESS - refers to the completeness of planning coverage
SPECIFICITY - refers to very detailed, clearly defined plans wherein objectives are clearly stated
and could easily be understood.
TIME FRAME - Refers to the length of time a plan has. A plan may be long-term, or covering
more than three years, or short-term, covering one year or less.
FREQUENCY OF USE - refers to the number of times or instances a plan may be used
TYPES OF PLAN
STRATEGIC - is an outline of steps designed with the goals of the entire organization
as a whole in mind, rather than with the goals of specific divisions or departments.
Strategic planning begins with an organization's mission.
TACTICAL - intermediate-range (one to three years) planning that is designed to
develop relatively concrete and specific means to implement the strategic plan.
Middle-level managers often engage in tactical planning.
OPERATIONAL - generally assumes the existence of organization-wide or subunit
goals and objectives and specifies ways to achieve them. Operational planning is
short-range (less than a year) planning that is designed to develop specific action
steps that support the strategic and tactical plans.
SINGLE USE - apply to activities that do not recur or repeat. A one-time occurrence,
such as a special sales program, is a single-use plan because it deals with the who,
what, where, how, and how much of an activity.
CONTINUING - are usually made once and retain their value over a period of years
while undergoing periodic revisions and updates.
STEPS IN PLANNING - (1)Establish a Goal or set of Goals (2)Define the Present Situation
(3)Determine Aids & Barriers (4)Develop a Set of Action.
PLANNING LESSON 3
PLANNING AT DIFFERENT LEVELS OF THE FIRM: CORPORATE LEVEL, BUSINESS LEVEL,
FUNCTIONAL LEVEL
CORPORATE LEVEL - These corporate-level executives primarily focus on the
questions such as: • What industries should we get into? • What markets should the
firm be in? • In which business should the corporation invest money? What
resources should be allocated to each business?
BUSINESS LEVEL - At this level managers focus on determining how they are going to
compete effectively in market. At this level, managers attempt to address questions
such as: • Who are our direct competitors? • What are their strengths and
weaknesses? • What are our strengths and weaknesses? • What advantages do we
have over competitors?
FUNCTIONAL LEVEL - At this level managers focus on how they can facilitate the
achievement of the competitive plan of the business. Functional managers attempt
to address questions such as: What activities does my unit need to perform well in
order to meet customer expectations? What information about competitors does my
unit need in order to help the business compete effectively?
PLANNING LESSON 4
FORECASTING - estimates of future economic conditions or trends, based on thorough analysis
of the past and present are called forecasts.; planning tool that helps management in its
attempts to cope with the uncertainty of the future, relying mainly on data from the past and
present and analysis of trends.
QUANTITATIVE FORECASTING - Applying a set of mathematical rules to a series of
hard data to predict outcomes (e.g., units to be produced)
QUALITATIVE FORECASTING - Using expert judgments and opinions to predict less
than precise outcomes
BENCH MARKING - The search for the best practices among competitors and non competitors
that lead to their superior performance.
BREAK- EVEN ANALYSIS - is the determination of when breakeven will occur.
SCHEDULING - The practice for planning time for various activities in an organization is called
scheduling.
CONTINGENCY PLAN - sometimes referred to as "Plan B," because it can be also used as an
alternative for action if expected results fail to materialize.
PLANNING LESSON 5
DECISION - is one when there are different things you can do and you pick one of them.
TYPES O DECISION MAKING
RATIONAL - type of decision making in which choices are logical and consistent and
maximize value.
BOUNDED RATIONALITY - It is more realistic approach. Managers make decisions
rationally but are bounded by their ability to process information.
INTUITION - Making decisions on the basis of experience, feelings and judgment. It
can be cognitive-based, experience-based, value or ethics based, or subconscious
mental processing.
DECISION MAKING STYLES
LINEAR THINKING STYLES - is characterized by a person's preference for using
external data and facts.
NON LINEAR THINKING STYLES - is characterized by a person's preference for using
the internal sources of information (feeling and intuitions).
DECISION MAKING ERRORS AND BIASES
IMMEDIATE GRATIFICATION - it describes the decision makers who tend to want
immediate rewards and to avoid immediate costs.
ANCHORING EFFECT- happens when people make a decision based on the first
information that they encounter.

4. SELECTIVE PERCEPTION BIAS - when decision makers selectively organize and
interpret events based on their biased perception, they are using selective
perception bias. This influences the information they pay attention to, the problems
they identify and the alternatives they develop.
CONFIRMATION BIAS - decision makers that seek out the information that reaffirms
their past choices and discount information that contradict the past judgments is the
confirmation bias. This people ignore the critical information that challenges their
preconceived deas.
REPRESENTATION BIAS - when decision maker assess the likelihood of an event
based on how closely it resembles other events. Managers see identical situation
where they don't exist.