NORTHWEST SAMAR STATE UNIVERSITY Calbayog City GRADUATE SCHOOL AND TRAINING ACADEMY

MODULE
PRESENTED BY : NELSON R. BELLO PRESENTED TO : DR. LYDIA DELOS REYES REQUIREMENT FOR THE COURSE: ORGANIZATION AND MANAGEMENT 1 OF EDUCATIONAL/BUSINESS INSTITUTIONS

TABLE OF CONTENTS PAGE COVER PAGE .1 TABLE OF CONTENTS 2 INTRODUCTION .4 MODULE 1 : MANAGEMENT A. DEFINITION OF MANAGEMENT AND ORGANIZATION Management and Its Relation to Art and Science.. 5 Management and Practice 6 Management and People .. 7 B. PATERNS OF MANAGEMENT ANALYSIS The Empirical School . 8 The Decision Theory School . 8 The Mathematical School ..9 The Systems of School .10 The Human Behavior School ...10 The Social System School 10 The Socio-Technical System School ...11 The Situational School ...11 The Managerial Roles School .. 12 The Operational School .12 C. THE MANAGER AND HIS ENVIRONMENT The Economic Environment . 12 The Technological Environment ...13 The Social Environment .14 The Political Environment ..15 D. MANAGEMENT OF REVOLUTIONS Crusading Stage .16 Popular Movement Stage . 16 Managerial Stage 16 Bureaucratic Stage .16 Preventing Another Revolution .17 E. COMPARATIVE MANAGEMENT The Need for an Analytical Framework .. 17 Management and Culture . 18 The Impact of Culture on Modern Management 18
2

F. PROJECT MANAGEMENT Integrated Project Management Cycle ...18 Project pre-Development Land Screening .19 Project Appraisal, Negotiations and Approval 19 Project Implementation . 20 Project Evaluation and Recyling ..21 G. ACTIVITIES 22 PART II: ORGANIZING A. ORGANIZING PROCESS Why Organizing? 24 B. CHALLENGE OF INTRODUCING CHANGE Managing Change at the Top 25 C. THEORIES OF ORGANIZING The Classical Theory .25 The Neo Classic Theory 27 The Fusion Theory .28 The Systems Theory ..28 The Qualitative Theory ..29 The Four Basic Category of Change ..29 Organizational Evolutions in Developing Countries .30 D. ORGANIZATION Formal Organization ..31 Organization Chart .31 Classical Principles 32 Coordination Process 33 The Effective Organization 34 Strategies of OD .36 Department ..39 Basic Departmentalization .31 Informal Organization .42 Individual and Group Responsibility 42 Tool and Techniques of Organization . 43 E. ACTIVITIES 44 REFERENCES 47
3

NTRODUCTION

Management education has gained more importance in the last four decades and institutions imparting management education have sprung up in large numbers in the Philippines as well as in many other countries. Though institutions in our country have adopted certain models from business/educational organizations, very few have even thought of implementing any measures to improve the service quality and organization effectiveness in their institutions. This module attempts to compile some of the proven conceptual models that can be adopted as strategy and operations to improve the degree of Organization Effectiveness. Organizational Management is a quite discursive subject and much has been written about it. Therefore, the study of organizations and their management requires a comprehensive analysis. That only a single approach to organization and management provides all the answers can hardly be maintained. Different approaches should be comparatively studied. It was only observed a few remarkable approaches to management until the early 1950's, such as classical approach and human relations approach. But, since then, as to what management is, what management theory is and how managerial work or events should be analyzed, the various approaches to management and much differing views have been appeared. This situation resulted in much confusion in order to appreciate and probe the management and its ensuing problems and the managerial roles and events, etc. Some years ago, an author who attempted to classify the various "schools" of management theory called this situation "the management theory jungle". Certainly, it could be observed that many different approaches were diversely categorized by different authors. Familiarity with the approaches to management by analysis can help one appreciate many insights, ideas and help one avoid reexamining previously known ideas.

MODULE 1
MANAGEMENT AND ORGANIZATION
A. Management and Its Relation to Art and Science According to the nature of management, there is a controversy that whether management is a science or an art. This controversy is very old & is yet to be settled. It should be noted that, learning process of science is different from that of art. Learning of science includes principles while learning of art involves its continuous practice.

Management as a Science Just like science, it cannot be denied that management has a systematic body of knowledge but it is not as exact as that of other physical sciences like biology, physics, and chemistry etc. The main reason for the inexactness of science of management is that it deals with human beings and it is very difficult to predict their behavior accurately. Since it is a social process, therefore it falls in the area of social sciences. It is a flexible science & that is why its theories and principles may produce different results at different times and therefore it is a behavior science.

Management as an Art Art means application of knowledge & skill to get the desired results. An art may be defined as personalized application of general theoretical principles for achieving best possible results. Art has the following characters: practical knowledge, personal skill, creativity, perfection through practice, and goal-oriented.

Thus, we can say that management is an art therefore it requires application of certain principles rather it is an art of highest order because it deals with shaping the attitude and behavior of people at work towards the desired goals. Management as a Science and as an Art and as Both Management is both an art and a science. The above mentioned points clearly reveal that management combines features of both science as well as art. It is considered as a science because it has an organized body of knowledge which contains certain universal truth. It is called an art because managing requires certain skills which are personal possessions of managers. Science provides the knowledge & art deals with the application of knowledge and skills. A manager to be successful in his profession must acquire the knowledge of science & the art of applying it. Therefore management is a well-judged combination of science as well as an art because it proves the principles and the way these principles are applied is a matter of art. Science teaches to know and art teaches to do. E.g. a person cannot become a good singer unless he has knowledge about various ragas & he also applies his personal skill in the art of singing. Same way it is not sufficient for manager to first know the principles but he must also apply them in solving various managerial problems that is why, science and art are not mutually exclusive but they are complementary to each other (like tea and biscuit, bread and butter etc.). To conclude, we can say that science is the root and art is the fruit.

Management and Practice Management and Practices gives a MANAGEMENT basic understanding of the role and & functions of a manager and to explain the PRACTICE principles, concepts, and techniques used by managers in educational and business organizations in carrying out their work. This is intended for persons who presently hold, or desire in the future to hold, management responsibilities in an organization or enterprise. A central concept of Management and Practice is that there is a general framework for
6

understanding management that applies to managers in all organizationslarge or small, public or private, product-oriented or service-oriented. Management and Practice include values and ethics, communicating, planning, decision making, organizing, leading, controlling, and innovating. This emphasizes the skills needed to apply management principles and concepts to real-life situations; you will analyze management issues and problems and how to formulate realistic, practical plans to resolve them. These practical skills are developed through case studies in the assignments, and through applying concepts to your own situation and approaches.

Management and People People are the most important resource for any business or educational organization/institutions. People manage and organize according to different management styles and experiences. Management involves working with people and getting organizational objectives achieved through them. Working through people is interpreted in terms of assigning activities to subordinates. We refer to management as a group of people in which we include all those personnel who perform managerial functions in organizations Many women are excellent business managers. However, their special skills and competencies as managers often remain under-utilized and the subject of organization and management has often been neglected in training programmes for women entrepreneurs with little educational background, assuming that they do not need managerial skills.

B. PATERNS OF MANAGEMENT ANALYSIS Pattern of management analysis is an analysis that comprises of human capital management, project management tools, process modelling solution as well as procurement management.

The Empirical School Studies experience through cases. Identifies successes and failure. Situations are all different. No attempt to identify principles. Limited value for developing management theory. The Empirical School seeks to generalize the nature of management based on the experience of successful managers. The basic theme of this assumption is that if a particular business/ educational operation is successful, or if a particular problem was effectively tackled by application of a particular strategy, then the methods of strategies through which success was achieved by the managers could be equally effectively used by others in the case of similar business situations in future. The Empirical School in an Applied Management is an Autonomous Management School established with a view to get the aspiring professionals conversant with Broad-based, Self-cultivating, and Application oriented Management education. The said Management School is neither accredited nor affiliated to any statutory body or University. It is Purely Autonomous in all respects and stands for its Quality Management Education. All Professional Management Programs of high standard speak well about the Testimony which has instant taste of global business environment. Here, Candidates are not only made to study Management but in fact experience and share the Management Ethics, Strategies, Methodology and Analyze Management operations under Application-based philosophy. The creative integrated catalytic approach of the management operations has to enable them to achieve the business goals. Evidently candidates learn the applicationoriented key operative skills to achieve result oriented professional growth.

The Decision Theory School The decision theory school of management concentrates on the rational approach to decisions where alternative ideas or courses of action are analyzed. This school is believed to have grown from the theory of consumer's choice associated with Jeremy Bentham and tends to be oriented toward
8

economic model construction and mathematics. It grew out of economic analytical techniques such as utility maximization, indifference curves, marginal utility, and economic behavior under risk and uncertainty. The decision is the central focus. Additionally, the Decision Theory School is a framework of logical and mathematical concepts, aimed at helping managers in formulating rules that may lead to a most advantageous course of action under the given circumstances. Decision theory divides decisions into three classes (1) Decisions under certainty: where a manager has far too much information to choose the best alternative. (2) Decisions under conflict: where a manager has to anticipate moves and counter-moves of one or more competitors. (3) Decisions under uncertainty: where a manager has to dig-up a lot of data to make sense of what is going on and what it is leading to. See also game theory.

The Mathematical School Managing is seen as mathematical processes, concepts, symbols, and models. Looks at management as a purely logical process, expressed in mathematical symbols and relationships pre-occupation with mathematical models. Many aspects in managing cannot be modeled. Mathematics is a useful tool, but hardly a school or an approach to management. The mathematical school of management views management as a system of mathematical models and processes. This includes the operations researchers and management scientists. But Koontz points out that in his view mathematics is a tool, not a school.

The Systems of School Systems concepts have broad applieability. Systems have boundaries, but theyalsa interaet with the external environment, also, organisations are open systems. Recognises importance of studying
9

interralatedness of planning, organising, and controlling in an organisation as well as the many subsystems. Analyses of the interrelatedness of systems and subsystems as well as the interactions of organisations with their external environment. Can hardly be considered a new approach to management.

The Human Behavior School The central thesis of the human behavior school is that since management involves getting thing done with people, management theory must be centered on interpersonal relations. Their theory focuses on the motivation of the individual viewed as a socio-psychological being. This school is also referred to as the "human relations", "leadership", or "behavioral sciences approach". This school places emphasis on the study of inter - and intra-personal phenomena from the personality dynamics of individuals to the relations of cultures. Tannenbaum, Weschler and Massarik are the only authors referenced in this section.

The Social System School The members of the social system school of management theory view management as a social system. March and Simon's 1958 book Organizations4 is used as an example, but Koontz indicates that Chester Barnard is the spiritual father of this school of management. The social system school identifies the nature of the cultural relationships of various social groups and how they are related and integrated. Barnard's work includes a theory of cooperation which underlies the contributions of many others in this school. Herbert Simon, and others expanded the concept of social systems to include any cooperative and purposeful group interrelationship or behavior.

10

The Socio-Technical System School Socio-technical systems school pertains to theory regarding the social aspects of people and society and technical aspects of organizational structure and processes. Here, technical does not necessarily imply material technology. The focus is on procedures and related knowledge, i.e. it refers to the ancient Greek term logos. "Technical" is a term used to refer to structure and a broader sense of technicalities. Sociotechnical refers to the interrelatedness of social and technical aspects of an organization or the society as a whole. Sociotechnical theory therefore is about joint optimization, with a shared emphasis on achievement of both excellence in technical performance and quality in people's work lives. Sociotechnical theory, as distinct from sociotechnical systems, proposes a number of different ways of achieving joint optimisation. They are usually based on designing different kinds of organisation, ones in which the relationships between socio and technical elements lead to the emergence of productivity and wellbeing.

The Situational School The fundamental underpinning of the situational school is that there is no single "best" style of leadership. Effective leadership is task -relevant, and the most successful leaders are those that adapt their leadership style to the maturity ("the capacity to set high but attainable goals, willingness and ability to take responsibility for the task, and relevant education and/or experience of an individual or a group for the task") of the individual or group they are attempting to lead or influence. Effective leadership varies, not only with the person or group that is being influenced, but it also depends on the task, job or function that needs to be accomplished.

11

The Managerial Roles School Original study consisted of observations of five chief executives. On the basis of this study, ten managerial roles were identified and grouped into O) interpersonal, (2) informational and (37 decision roles. Original sample was very small. Same activities are not managerial. Activities are evidence of planning, organising, staffing, leading and controlling. But same important managerial activities were left out (e.g., appraising managers).

The Operational School Draws together concepts, principles, techniques, and knowledge from other fields and managerial approaches. The attempt is to develop science and theory with practical application. Distinguishes between managerial and nonmanagerial knowledge. Develops classification system built around the managerial funcUons of planing, organising, staffing, leading, and controlling. Does not as same authors do, identify representing" or coordinatian" as a separate function. Co-ordination, for example, is the essence of managership and is the purpose of managing.

C. THE MANAGER AND HIS ENVIRONMENT The Economic Environment Managers develop their organizational goals and strategies by taking advantage of the organizations Manager internal strengths and external environment and opportunities while at the same time minimizing internal weaknesses and external threats. An analysis of the firms internal and external environment provides useful information to managers in their planning,
12

organizing, leading, and controlling functions. This analysis is essential to the firms leadership as they seek to exist within the forces impacting upon their firm. The SWOT analysis is a basic framework for evaluating the firms internal and external environments and thus its competitive positioning within the marketplace. Important insights of a SWOT analysis come only after you examine the matches and mismatches between the organizations strengths and weaknesses and the environments opportunities and threats. Business decisions take place within a competitive context. Understanding who your competitors are and how your firm stacks up against them is a key part of management. Analyzing your own company is just as important as analyzing your competition. Thus, most companies use a SWOT analysis to identify their strengths, weaknesses, opportunities, and threats. With insight into its own capabilities and those of its competitors, a company can then work to gain a competitive edge.

The Technological Environment Technological Environment means the development in the field of technology which affects business by new inventions of productions and other improvements in techniques to perform the business work. These are external factors in technology that impact business operations. Changes in technology affect how a company will do business. A business may have to dramatically change their operating strategy as a result of changes in the technological environment. We see that in 21st century, technology is changing fastly. Now, all work is done online and business shops are using machinery at high level. There are following technological environment factors which affects business. New inventions to produce the products. New inventions relating to marketing like BPO for selling online in international market.
13

The Social Environment Social or Societary environment of business means all factors which affects business socially. Every business works in a society, so societies ' different factors like family, educational institutions and religion affects business. Main elements of Societies and Its Effect on Business

1. Family - Family is basic part of society from the birth of a person and up to death, he lives in family so personal decision of buying and selling of goods are affects from family. In the culture of a family, it may happen that parent does not allow to use any product , then sale of such product will decrease , so businessman must analyze different familys needs . Many occasion of family like marriage of any family member, can increase the demand of goods. 2. Educational institutions - Educational institutions are also main part of societies. They provide good knowledge, education, awareness, thinking what should students buy or not to buy. Suppose if a student is habitual to drink the tea and if his teacher advise him that this is harmful to his health after his guidance students can avoid to drink tea after this the sale of tea will decrease. 3. Religion - Like family and education institution, religion is also effects the business socially. Religion means the system in which group of persons trust in God. They believe that there is one supernatural power in this earth and its name is God. Different religions have different principles, rules and regulations in which they sacrifice to use some products and to eat some food, in Hindu religion, they never use leather products. They affect the sale of leather industries. So, businessman must analyze the targeted audience and after listening their religious thoughts, he should produce the goods.

M A N A G E M E N T

14

The Political Environment The political environment is a key component of the management and business environment that dictates greatly on the success of your business. What happens in the politics of your country as well as that of other countries influences a lot business. Usually, the term political environment is used to refer to the nature of the political situation in the country where you are doing business or where you intend to do business. How aware are you of the political aspects that affect your home business?

MANAGEMENT

If you haven't been paying any attention to those political aspects that have an effect on your business, it's therefore important for you to understand the political environment in which you are operating because it can present political risks to your business. For instance, your business is subject to political risks if a war erupts in any country where you do business. Likewise, changes in government policies may either affect you positively or negatively. The prevailing political environment in any country directly affects the economic environment or performance.

D. MANAGEMENT OF REVOLUTIONS As a result of the evolution of the management, several important changes are already taking place in the management education industry worldwide. Industry landscape is becoming increasingly diversified. Along with the classical American model of a university business school, several types of stand alone institutions emerged. Some of them are not for profit, some commercial. The management development market is successfully penetrated by for-profit companies offering more flexibility and customer intimacy than traditional business schools. Some of the stand alone institutions (mostly European) are research driven; others limit their intellectual ambitions to applied research, and position themselves on the market
15

either as high quality or low cost providers. Product and price differentiation is rapidly gaining importance in management education.

1. Crusading Stage Enriched by the Crusades and the opening of trade to the East, modern Western bourgeois males began their rise to dominance within the European commercial cities of the late Middle Ages. Business and commerce were the specialties of this class, and their legitimizing institution was the university the place where the modern hyper-masculine bourgeois paradigm was developed and expanded. 2. Popular Movement Stage This stage is very important in management. Dealing with human resource is one of the major functions of management. Hence awareness of human relations movement is very important particularly to student teachers. 3. Managerial Stage At this stage Managerial functions, the most common activities carried out by managers in their organization. The extent to which each of these functions is carried out depends on the organization and its objectives. This unit will discuss the five major managerial functions of planning, organizing, directing, control and staffing. 4. Bureaucratic Stage This stage as proposed by Max Weber played a major role in the development of a system of organization called bureaucracy. He is referred to as the father of bureaucracy. Bureaucracy emerged from problems associated with big business enterprises and increasing complexity of government operations. According to Weber, bureaucracy is an approach to management by office or position rather than a person. Weber designed patterns of relationships to guide complex organizational activities in a systematic manner to fulfill the needs of clients. He proposed that the system of administration should be through departments. Weber further proposed that an organization should be developed around logical rules, routines, clear division of labor, technical
16

qualifications and clear chain of command. According to Max Weber bureaucracy was the best method of achieving group endeavors.

6. Preventing another Revolution All revolutions have faced the same danger: either they fail, or they degenerate into government. How can one be revolutionary and institutional if revolutions are made against institutions? The country in revolution is debating this subject, inventing and erring, because success does not exist without failure. To prevent revolution, one organization must be decisive to overthrow, with patience and more patience, with work and more work.

E. COMPARATIVE MANAGEMENT The Need for an Analytical Framework In management, there is a need to develop a framework to classify supply chain risk-management problems and approaches for the solution of these problems. We argue that risk-management problems need to be handled at three levels: 1) strategic, 2) operational, and 3) tactical. In addition, risk within the supply chain might manifest itself in the form of deviations, disruptions, and disasters. Fortunately, you can turn to analytical frameworks, which combine reusable solutions with analysis patterns, research, useful organization techniques, and specific examples of successful approaches. An analytical framework is a little like your own personal library, tailored specifically to your own experience and background.

17

Management and Culture Management and culture are two important and inseparable concepts in effective management. Culture refers to certain norms of behavior governing the conduct of workers involved in work situations to achieve certain desired objectives. The degree of ones involvement influences his performance resulting in high or low productivity, high or low quality. Sometimes, work culture is also integrated with a workers loyalty and sense of belonging, by his behavior, to the organization. It is a mixture of abiding to the laws, observing appropriate code of conduct as determined by the organization as well as maintaining one's own morality The Impact of Culture on Modern Management Good management and a healthy organizational culture can better achieve its mission. In order to lead well, leaders in an organization need to invest in themselves and in their staff. A positive organizational culture will bring resources and relationships to the organization. A negative culture will wipe out good intentions and handicap good programs. It has been said that "culture eats strategy for lunch." It is better to attend to your organizational culture before it sabotages your strategy and mission.

F. PROJECT MANAGEMENT Integrated Project Management Cycle Integrated Project management cycle is a cycle on the discipline of planning, organizing, motivating, and controlling resources to achieve specific goals. A project is a temporary endeavor with a defined beginning and end (usually time-constrained, and often constrained by funding or deliverables), undertaken to meet unique
18

goals and objectives, typically to bring about beneficial change or added value. The temporary nature of projects stands in contrast with business as usual (or operations), which are repetitive, permanent, or semi-permanent functional activities to produce products or services. In practice, the management of these two systems is often quite different, and as such requires the development of distinct technical skills and management strategies.

Project pre-Development Land Screening In order to implement a comprehensive list of recommendations, past projects and future projects will need to be evaluated and prioritized for feasibility and for adherence to real funding constraints. Future evaluation processes are recommended in four steps: pre-screening, an initial evaluation against criteria, adjustments, and application to a system-wide model. Although projects are legitimate, it should be better to identify those projects that would provide the most benefit to community mobility and quality of life. To begin the evaluation process, it should pass through screenings. Project Appraisal, Negotiations and Approval After the completion of the project preparation stage, there is a need to review the proposal and undertake a full-scale project appraisal. Appraisal covers comprehensive review of the technical, economic, social, financial and institutional aspects as well as the environmental aspects of the project proposal and lays the foundation for implementing the project and evaluating it when completed. An appraisal mission examines such matters as the financing plan, components to be financed, terms and conditions of financing, project procurement action plans, project implementation plans, and disbursement profiles. It also reviews the legal aspects of the project including the draft project financing agreement and conditions of effectiveness and concludes an understanding on these issues with the executing agency (and the government, if applicable). The appraisal mission and the beneficiary endeavor to agree on the measures necessary to assure the success of the project.
19

The draft project financing agreement is negotiated and, at the end of the appraisal mission work, a Memorandum of Understanding (MOU)/Minutes of Meeting reflecting the discussions and understanding reached by the appraisal mission and the beneficiary is signed. Appraisal of a project is the organizations responsibility but is conducted in full co-ordination with the Beneficiary. It is carried out by the staff, supplemented by outside consultants if necessary. Appraisal activities cover the review and assessment of the following major aspects of a project. Project Implementation The Implementation phase of the Project Management Process puts the project into action. The Implementation phase consists of four sub phases: Execution, Monitoring & Control, and Move to Production. Project Implementation usually done by implementing agency (organization) that prepared the project and received funding for it. Other organizations that participate in the implementation of the project by way of collaboration, say by according good working relationship, extending technical advice or seconding their staff to the project are referred to as co-operating agencies. Project Evaluation and Recyling The final phase in the project cycle is project evaluation, then the last is project recycling in case of failure. The analyst looks systematically at the elements of success and failure in the project experience to learn how to plan better for the future. The basic objective of such a study is to ascertain the real worth of a project or programme as far as possible. Broadly speaking, evaluation may be defined as "a process which attempts to determine as systematically and objectively as possible the relevance, effectiveness and impact of activities in the light of the objectives". It is, thus, a critical analysis of the factual achievements/results of a project, programme or policy vis -a-vis the intended objectives, underlying assumptions, strategy and resource commitment. In specific terms, it makes an attempt to assess objectively the following: (a) The relevance and validity of the objectives and design of the project/programme in terms of broader issues of development policy,
20

sector/sub-sector priorities and strategies as well as other problems of a wider nature; (b) The efficiency and adequacy of the pace of progress of the project/programme where the focus is mainly on managerial performance and productivity; (c) The effectiveness of the project/programme - a major part of an evaluation exercise-in realizing the intended objectives from a variety of angles; and (d) The identification of reasons for the satisfactory or unsatisfactory accomplishment of the results of the project/programme and to deduce critical issues and lessons which may be of relevance to other ongoing and future projects/programmes of a similar nature.

21

ACTIVITIES

1. Supposing you are to give a mini-lecture on management to a group of farmers whoever who entered high school. What and how you make your presentation? Thoroughly explain your answer. As a teacher conducting mini-lecture to group students who belong to family of farmers entering high school; teacher should adjust, understand and used simple languages that these group of students could easily understand. This group of students who belong to families of farmers, similar to other indigenous communities, have their own culture, socio-economic, and have different level of understanding. Sensitivity to their culture and life, recognition of the cognitive strengths of these students, and appreciation of their personality qualities is necessary for a holistic effort for effective delivery of your lecture and education as well. Although mainstreaming through lecture alone is a difficult task, reorganizing content and the lecturing methods to reflect and draw on their environment and knowledge base, must be undertaken to develop the response of this groups of students and increase participation. In addition, effective lecturing support learning materials that are contextualized for these students and talking to them using their local dialects if possible, and telling some farmers folklore are a more lasting way of educating/lecturing these children. On the other hand, in a country like the Philippines which is marked by diverse languages, castes, religions and ideas; cementing indigenous values while embracing modernity, is a progressive phenomenon. Within the context of the education of marginalized communities such as these groups of students who belonged to a families of farmers, a fine balance between these two ends of the spectrum is necessary to yield results that have an impact, are sustainable, and underpin a holistic education effort. 2. Cite a scenario where you are going to plan and execute a coup de-etat of an imaginary Palace of a Prime Minister or Governor of a small Pacific Island country. How would you go about it? Make a report on the scenario. The answer could come in either of two forms. A coup just happens or meticulous planning goes into it. And then, of course, there are the many kinds of

22

coups which have, especially in modern times, put paid to politics proper across the globe. Think of the most serious coup d'etat against the government of Philippine President Corazon Aquino was staged beginning December 1, 1989 by members of the Armed Forces of the Philippines belonging to the Reform the Armed Forces Movement (RAM) and soldiers loyal to former President Ferdinand Marcos. Metro Manila was shakened by this Christmas coup, and they almost seized the presidential palace. It was completely defeated by the Philippine government by December 9, 1989. With detailed planning, there will be no need for any sort of headquarters structure in the active stage of the coup; for if there is no scope for decision -making there is no need for decision-makers and their apparatus. In fact, having a headquarters would be a serious disadvantage: it would contitute a concrete target for the opposition and one which would be both vulnerable and easily identified. As soon as the coup starts, the ruling group will know that something is happening, but unless coups are very frequent in the country, they will not know what that something is... We should avoid taking any action that will clarify the nature of the threat and thus reduce the confusion that is left in the defensive apparatus of the regime. Our teams will emerge from their bases and proceed to seize their designated targets while operating as independent units; their collective purpose and their coordination will thus remain unknown until it is too late for any effective opposition. The leaders of the coup will be scattered among the various teams, each joining the team whose ultimate target requires his presence; thus the spokesman of the coup will be with the team which will seize the radio-television station and the prospective chief of police will be with the team whose target is the police headquarters [or state legislature, as the case may be]. As each team will be both small and highly mobile, and as there is no headquarters throughout the active phase of the coup, the opposition will not have any single target on which it will be able to concentrate its forces. In this way their numerical superiority will be dissipated and the smaller forces of the coup will have local superiority in the area of each particular target. This will be the key of the victory of the coup." "Though some form of confrontation may be inevitable, it is essential to avoid bloodshed, because this may well have crucial negative repercussions amongst the personnel of the armed forces and the police. The destabilizing effects of the behavior of the police should be avoided.

23

MODULE 2
ORGANIZING

NTRODUCTION

Organizing is the process of coordinating all the activities of an Organization by using human, material and other available resources towards achieving the overall objective of an Organization. (Hersey P et al) sees Organization and the concept organizing as a social system. Found that the focus of the administrative/structural sub-system is on authority, structure, and responsibility within the organization: who does what for whom and who tells whom to do what, how, when, where, and why. That the informational/decision-making, sub-system emphasizes key decisions and their informational needs to keep the system operating. (James et al 2000) posit that Coordination is the process of integrating the activities of separate departments in order to pursue Organizational goals effectively. (Kreitner R. 1995) posit that Organization is a system of consciously coordinated activities of two or more people.

A. ORGANIZING PROCESS Why Organizing? A plan, in essence, is a goal to be achieved. Organizing is how the plan will be carried out so the goal is achieved. Once a plan is made, the next step in the process is to determine which people will need to be involved, who will be in charge, who will keep people accountable, and what resources will be required, who will be responsible for getting those resources, which will monitor progress? Those steps are all part of the organizing process in the project. So, organizing is next to planning, because once the plan is made, the next natural step in the progression is to get organized so the plan comes to fruition.
24

B. CHALLENGE OF INTRODUCING CHANGE Sometimes throughout the course of operations, it's necessary to change the culture of an organization. Organizational change can facilitate positive results in the long run. In the short term, you may encounter several issues with implementation. Being aware of some of the problems that could arise can help considerably. When attempting to change an organizations culture, managers frequently must deal with employee resistance. Most employees are comfortable with the way they operate and do not want to change. You may have to continually reinforce the new behaviors you seek to keep employees from reverting to the old ways of doing. Managing Change at the Top

Change - both anticipated and unanticipated - is rocking the educational pr business world and shows no signs of weakening. As revealed in research, issues pertaining to change not only dominate the landscape, but also continue to escalate in importance. In fact, three of this year's top six issues deal with this exact topic. However, while the importance of managing change related issues is on the rise, the ability to improve in this most vital capability remains highly elusive. In fact, research reveals that only 35% of high-performance organizations (HPOs) in this study - those in the top quartile of performers in year-over-year growth in revenue, profit, market share and customer satisfaction - indicate they are highly effective at doing so. And among low-performance organizations - those in the bottom quartile the story is even worse, with only 13% perceiving their ability to manage and cope with change as highly effective.

C. THEORIES OF ORGANIZING 1. The Classical Theory Classical organization theories (Taylor, 1947; Weber, 1947; Fayol, 1949) deal with the formal organization and concepts to increase management efficiency. Taylor presented scientific management concepts, Weber gave the bureaucratic approach, and Fayol developed the administrative theory of the organization. They all contributed significantly to the development of classical organization theory.

25

Taylor's scientific management approach The scientific management approach developed by Taylor is based on the concept of planning of work to achieve efficiency, standardization, specialization and simplification. Acknowledging that the approach to increased productivity was through mutual trust between management and workers, Taylor suggested that, to increase this level of trust, the advantages of productivity improvement should go to workers, physical stress and anxiety should be eliminated as much as possible capabilities of workers should be developed through training, and the traditional 'boss' concept should be eliminated. Weber's bureaucratic approach Considering the organization as a segment of broader society, Weber (1947) based the concept of the formal organization on the following principles: Structure In the organization, positions should be arranged in a hierarchy, each with a particular, established amount of responsibility and authority. Specialization Tasks should be distinguished on a functional basis, and then separated according to specialization, each having a separate chain of command. Predictability and stability. The organization should operate according to a system of procedures consisting of formal rules and regulations. Rationality Recruitment and selection of personnel should be impartial. Democracy Responsibility and authority should be recognized by designations and not by persons. Administrative theory The elements of administrative theory (Fayol, 1949) relate to accomplishment of tasks, and include principles of management, the concept of line and staff, committees and functions of management. Functions of management Fayol (1949) considered management as a set of planning, organizing, training, commanding and coordinating functions. Gulick and Urwick (1937) also considered organization in terms of
26

management functions such as planning, organizing, staffing, directing, coordinating, reporting and budgeting.

2. The Neo Classic Theory Neoclassical theorists recognized the importance of individual or group behaviour and emphasized human relations. Based on the Hawthorne experiments, the neoclassical approach emphasized social or human relationships among the operators, researchers and supervisors (Roethlisberger and Dickson, 1943). It was argued that these considerations were more consequential in determining productivity than mere changes in working conditions. Productivity increases were achieved as a result of high morale, which was influenced by the amount of individual, personal and intimate attention workers received. Principles of the neoclassical approach The classical approach stressed the formal organization. It was mechanistic and ignored major aspects of human nature. In contrast, the neoclassical approach introduced an informal organization structure and emphasized the following principles: The individual. An individual is not a mechanical tool but a distinct social being, with aspirations beyond mere fulfillment of a few economic and security works. Individuals differ from each other in pursuing these desires. Thus, an individual should be recognized as interacting with social and economic factors. The work group. The neoclassical approach highlighted the social facets of work groups or informal organizations that operate within a formal organization. The concept of 'group' and its synergistic benefits were considered important. Participative management. Participative management or decision making permits workers to participate in the decision making process. This was a new form of management to ensure increases in productivity.

27

The Fusion Theory Management is changing. It's the broadest, most significant change that managers of the modern era have seen. Even executives who resist the tide cannot fail to be swept along. This is not another of the single issue themes that have promised so much in the recent past, and delivered so little. It is the very opposite and contradiction of single-theme management. It is Fusion Management. Fusion cooking combines the best of West and East. In a sense, Fusion Management does much the same. It combines the thrust of Western management for certainty with the Eastern knowledge that nothing in human affairs is certain - and that management is quintessentially a human activity. Like individuals, companies sometimes act rationally, and always speak as if they do, but, just as often, behave unreasonably in every sense. Fusion Management accepts this paradox, as it accepts all the innumerable contradictions of management. It is summed up in the East's unending quest for a perfection that is always beyond reach, and in the Western manager's equally paradoxical urge to sustain unsustainable rates of long-term growth. You cannot escape paradox, no matter where you turn. The manager must in theory optimise profits in the short term: the same theory holds that management must optimise profits in the long term. You cannot do both. What happens if you go too far with seeking near -term profits is evident in the happenings at Ford Motor.

The Systems Theory The systems theory views organization as a system composed of interconnected - and thus mutually dependent - sub-systems. These subsystems can have their own sub-sub-systems. A system can be perceived as composed of some components, functions and processes (Albrecht, 1983). Thus, the organization consists of the following three basic elements (Bakke, 1959): There are five basic, interdependent parts of the organizing system, namely: the individual, the formal and informal organization, patterns of behaviour emerging from role demands of the organization, role comprehension of the individual, and the physical environment in which individuals work.
28

The Qualitative Theory This Theory provide complex and comprehensive conceptual understandings of things that cannot be pinned down: how societies work, how organizations operate, why people interact in certain ways. Theories give researchers different lenses through which to look at complicated problems and social issues, focusing their attention on different aspects of the data and providing a framework within which to conduct their analysis. Just as there is no one way to understand why, for instance, a culture has formed in a certain way, many lenses can be applied to a problem, each focusing on a different aspect of it. For example, to study doctor -nurse interactions on medical wards, various theories can provide insights into different aspects of hospital and ward cultures. Box 1 indicates how each of the theories discussed in this paper could be used to highlight different facets of this research problem.

The Four Basic Category of Change Many organizations must change and evolve to stay ahead of the competition and keep up with technological advances. Most companies implement these types of changes to meet profitability goals. While many external factors impact organizational change, planned and unplanned internal organizational changes are also a major part of the process. There are four main types of organizational changes that could affect your company or your role within it. 1. Structural Changes The majority of organizational changes can be considered structural changes, according to Cliffs Notes. These types of changes typically impact how a company is run, from the traditional top-down hierarchy. Some examples of these types of changes include the implementation of a new, company-wide computer system or a company-wide non-smoking policy. Other structural changes include any changes to the company's hierarchy of authority and company-wide administrative procedures. Structural changes can also be considered transformational changes.

29

2. Strategic Changes When a company must drastically adapt to external factors, it may undergo a major strategic change. Strategic organizational changes are usually quite transformative, as they typically include major adjustments or complete upheavals of the current way the company operates. For example, when a company changes its fundamental approach of doing business, such as changing from an in-person retail environment to a heavy web presence, it is considered a strategic change. Other strategic changes include changing the target market, level of global activity and long-time partnerships.

3. People Changes People changes can be large-scale or incremental. Large-scale people changes include replacing the top executives with new employees in order to change the entire company culture. Smaller-scale or incremental people changes may include sending management personnel to team-building workshops and classes. People changes may be planned or unplanned, and they can impact the overall employee attitudes, behaviors and performances, according to Free Management Library. 4. Process Changes Process changes are usually an attempt to improve overall workflow efficiency and productivity. They may include implementing technology changes, such as robotics in manufacturing or requiring sales teams to begin documenting and reporting activities in a new way. Another example of this type of change is when a grocery store chain implements self-scanning checkout counters to improve customer processing times. Companies that implement these types of changes are more successful when the new process is proposed to employee focus groups, is carefully thought out, is tested in beta groups and is rolled out in stages or phases. Organizational Evolutions in Developing Countries As the economics of the developing countries evolved from agriculturally-based to industrially-based, organizational development and management become increasingly important. This need raises two (2) questions: (1) are organization and management theories developed in advanced countries valid in developing countries, (2) if not, how and why
30

organization and its management in developing countries different from those of the advanced countries?

D. ORGANIZATION Formal Organization Formal organizations are characterised by planned structure and represents the patterns of relationship that exist among the components of an organization. Formal organizations have the following specific characteristics: a) Clearly defined structure of activities. These have formal relationships with charts and position descriptions. The charts tie positions together through a network of authority and accountability relationship. b) Permanence. Formal organizations are relatively permanent. Most formal organizations are created to take a long time. However those that do not change to conditions in their environment may not last long. c) Elaboration. Most formal organizations tend to be elaborate and complex. Some organizations may become more complex through increased d) specialization. Organization Chart Is a diagram that shows the structure of an organization and the relationships and relative ranks of its parts and positions/jobs. The term is also used for similar diagrams, for example ones showing the different elements of a field of knowledge or a group of languages.

31

A company's organizational chart typically illustrates relations between people within an organization. Such relations might include managers to subworkers, directors to managing directors, chief executive officer to various departments, and so forth. When an organization chart grows too large it can be split into smaller charts for separate departments within the organization.

Classical Principles Classical or Traditional organization theorists developed certain generalizations which they considered to be principles of organization. These principles are useful first approximates, or guides for thought, in the organizing function. They provide a simple group of intuitive statements that provoke though by both operating managers and researchers in an organization. The most important of these principles are (1) unity of command, (2) exception principle, (3) span of control, (4) scalar principle, (5) organizing departments and (6) decentralization. One of the traditional principles of organization generally referred to as unity of command states that no member of an organization should report to more than one superior on any single function. This principle appeals to common sense in a pure line organization, in which each superior has general authority; however, it becomes a complex problem in actual cases in which some form of staff and/or functional organization is used. In practice instruction may be received from several sources without loss of productivity. The central problem is to avoid conflict in orders from different people relating to the same subject. One should recognize immediately that the actions of a subordinate may be influenced by many persons who are not recognized in the formal hierarchy of authority. The principle of unity of command may be useful in the planning of an organization if it is interpreted as a tendency toward the simplification of relationship between superior and subordinate; it is not realistic if it is interpreted as an immutable law that would eliminate useful relationships among executives. A second principle, called the exception principle, states that recurring decisions should be handled in a routine manner by lower level managers, whereas problems involving unusual matters should be referred to higher levels. This principle emphasizes that executives at the top levels of an organization have limited time and capacity and should refrain from becoming bogged down in routine details that can be handled as well by subordinates.
32

Thus, it is an important concept concerning the delegation of authority in an organization. The exception principle can be very useful to execute by focusing attention on those matters that should receive attention first. It is applicable at all levels and, if kept in mind, can help the inexperienced executive compensate for a human tendency to concentrate on the concrete, immediate, and detailed problems at the expenses of the more fundamental, difficult, and abstract issues. At the same time, attention to the principle can help the lower level managers understand exactly what they are expected to do. Coordination Process Co-ordination Process in an organization is the unification, integration, synchronization of the efforts of group members so as to provide unity of action in the pursuit of common goals. It is a hidden force which binds all the other functions of management. According to Mooney and Reelay, Co ordination is orderly arrangement of group efforts to provide unity of action in the pursuit of common goals. According to Charles Worth, Co-ordination is the integration of several parts into an orderly hole to achieve the purpose of understanding. Management seeks to achieve coordination through its basic functions of planning, organizing, staffing, directing and controlling. That is why, co-ordination is not a separate function of management because achieving of harmony between individuals efforts towards achievement of group goals is a key
33

to success of management. Co-ordination is the essence of management and is implicit and inherent in all functions of management. The Effective Organization Effective Organization or Organizational effectiveness is the concept of how effective an organization is in achieving the outcomes the organization intends to produce.[1] The idea of organizational effectiveness is especially important for non-profit organizations as most people who donate money to nonprofit organizations and charities are interested in knowing whether the organization is effective in accomplishing its goals. However, scholars of nonprofit organizational effectiveness acknowledge that the concept has multiple dimensions [2] and multiple definitions. [3] For example, while most nonprofit leaders define organizational effectiveness as 'outcome accountability,' or the extent to which an organization achieves specified levels of progress toward its own goals, a minority of nonprofit leaders define effectiveness as 'overhead minimization,' or the minimization of fundraising and administrative costs. According to Richard et al. (2009) organizational effectiveness captures organizational performance plus the myriad internal performance outcomes normally associated with more efficient or effective operations and other external measures that relate to considerations that are broader than those simply associated with economic valuation (either by shareholders, managers, or customers), such as corporate social responsibility.[4] An organization's effectiveness is also dependent on its communicative competence and ethics. The relationship between these three are simultaneous. Ethics is a foundation found within organizational effectiveness. An organization must exemplify respect, honesty, integrity and equity to allow communicative competence with the participating members. Along with ethics and communicative competence, members in that particular group can finally achieve their intended goals. Foundations and other sources of grants and other types of funds are interested in organizational effectiveness of those people who seek funds from the foundations. Foundations always have more requests for funds or funding proposals and treat funding as an investment using the same care as a venture capitalist would in picking a company in which to invest.
34

Organizational effectiveness is an abstract concept and is difficult for many organizations to directly measure. Instead of measuring organizational effectiveness directly, the organization selects proxy measures to represent effectiveness. Proxy measures may include such things as number of people served, types and sizes of population segments served, and the demand within those segments for the services the organization supplies. For instance, a non-profit organization which supplies meals to house bound people may collect statistics such as the number of meals cooked and served, the number of volunteers delivering meals, the turnover and retention rates of volunteers, the demographics of the people served, the turnover and retention of consumers, the number of requests for meals turned down due to lack of capacity (amount of food, capacity of meal preparation facilities, and number of delivery volunteers), and amount of wastage. Since the organization has as its goal the preparation of meals and the delivery of those meals to house bound people, it measures its organizational effectiveness by trying to determine what actual activities the people in the organization do in order to generate the outcomes the organization wants to create. Organizational effectiveness is typically evaluated within nonprofit organizations using logic models. Logic models are a management tool widely used in the nonprofit sector in program evaluation. Logic models are created for specific programs to link specific, measurable inputs to specific, measurable impacts.[5] Typically, logic models specify how program inputs, such as money and staff time, produce activities and outputs, such as services delivered, which in turn lead to impacts, such as improved beneficiary health. Activities such as administration, fundraising, and volunteer training are important inputs into organizational effectiveness because although they do not directly result in programmatic results, they provide the essential support functions needed for the organization to successfully finance and administer its programs. These other activities are overhead activities that indirectly assist the organization in achieving its desired outcomes. However, some nonprofit watchdog agencies regard overhead spending not as indirect program spending but as in indication of organizational ineffectiveness or inefficiency since funds are not being spent directly on programs. Cost ratios such as overhead are much simpler to measure than actual programmatic results and can be easily calculated from publicly available information disclosed on nonprofit organizations' IRS Forms 990. Several nonprofit watchdog agencies provide ratings of nonprofit organizations using these data. However, this practice is widely criticized by scholars and practitioners.[6][7] A nonprofit with low overhead may have
35

ineffective programs that have no impact, while a nonprofit with relatively higher overhead may be significantly more effective in terms of achieving meaningful results.[8][9] Some studies suggest that low overhead may actually reduce organizational effectiveness.[10] Moreover, an organization with higher overhead is more efficient than one with lower overhead if the organization with higher overhead achieves the same results at a lower total cost. The term Organizational Effectiveness is often used interchangeably with Organization Development, especially when used as the name of a department or a part of the Human Resources function within an organization. Strategies of OD Techniques used for OD are considered below. a. Sensitivity training This has many applications and is still used widely, even though new techniques have emerged (Lewin, 1981). Sensitivity training (Benny, Bradford and Lippitt, 1964) basically aims at: growth in effective membership; developing ability to learn; stimulating to give help; and developing insights to be sensitive to group processes. These process variables - in a systems sense - interact and are interdependent. b. Grid Training Grid training is an outgrowth of the managerial grid approach to leadership (Blacke and Mouton, 1978). It is an instrumental approach to laboratory training. Sensitivity training is supplemented with self -administered instruments (Benny, Bradford and Lippitt, 1964). The analysis of these instruments helps in group development and in the learning of group members. This technique is widely used and has proved effective. Grid training for OD is completed in six phases. They are: laboratory-seminar training, which aims at acquainting participants with concepts and material used in grid training;
36

 a team development phase, involving the coming together of members from the same department to chart out as to how they will attain a 9 x 9 position on the grid; inter-group development aims at overall OD. During this phase, conflict situations between groups are identified and analysed; organization goal setting is based on participative management, where participants contribute to and agree upon important goals for the organization; goal attainment aims at achieving goals which were set during the phase of organizational goal setting; and stabilization involves the evaluation of the overall programme and making suggestions for changes if appropriate.

Modern OD techniques In addition to the traditional OD techniques like sensitivity training, grid training and survey feedback, there are four modern techniques which can be used at inter-personal and inter-group levels. Process consultation approach This attempts to efficiently help diagnose and solve important problems of organizations. It refers to the processes which take place within a group or between groups and the consultant. The consultant aims at helping the client to perceive, understand and act upon process events which occur in the client's environment. Schein (1969) has proposed six major steps to be followed by the consultant. They are: Initiating contact The consultant is approached by the client to solve an organizational problem which could not be solved by normal procedures.

37

 Defining the relationship This refers to clarifying the expectations of both client and consultant through a contract between them about services, time and fees. Selecting a setting and a method This refers to the place and method of doing the exercise. Gathering data and making a diagnosis This is implemented through using questionnaires, interviews, observations, etc. Intervention This involves agenda setting, feedback, coaching and structural interventions, individually or in combination. Reducing involvement and terminating This is the mutual agreement to cease the consultation. Third Party The third-party peace-making technique attempts to settle interpersonal and inter-group conflicts using modern concepts and methods of conflict management. This technique analyses the processes involved, discerns the problem on the basis of the analysis, and suitably manages the conflict situation. Team building Team building has been considered the most popular OD technique in recent years, so much so that it has replaced sensitivity training. It aims at improving overall performance, tends to be more taskoriented, and can be used with family groups (members from the same unit) as well as special groups (such as task forces, committees and inter-departmental groups).

38

Department

Every organization is made up of different department. Each department contributes to the running of the business. The most common departments are: a) Production b) Marketing & Sales c) Finance d) Human resource and in some cases, Information Technology departments 1. Production Department The production department is responsible for converting inputs into outputs through the stages of production processes. The Production Manager is responsible for making sure that raw materials are provided and made into finished goods effectively. He or she must make sure that work is carried out smoothly, and must supervise procedures for making work more efficient and more enjoyable. There are five production sub-functions: Production and planning. They will set the standards and targets at each stage of the production process. The quantity and quality of products coming off a production line will be closely monitored. Purchasing department This department will provide the materials, components and equipment required. An essential part of this responsibility is to ensure that stocks arrive on time and are of good quality.

The stores department The stores department are responsible for stocking all the necessary tools, , raw materials and equipment required to service the manufacturing process. The design and technical support department They are responsible for the design and testing of new product processes and product types, together with the development of prototypes through to the final product.
39

The works department This department is concerned with the manufacture of products. This will include the maintenance of the production line and other necessary repairs. The works department may also have responsibility for quality control and inspection. 2. Human resource Department The role of Human resource department is in charge of recruiting, training, and the dismissal of employees in an organisation. Recruitment and selection Training programmes Training programs are held by the HRD to improve the employees skills, as well as to motivate them. There are three main types of training: 1. Induction training 2. On-the- job training 3. Off-the-job training Manpower Planning The HR department needs to think ahead and establish the number and skills of the workforce required by the business in the future. Failure to do this could lead to too few or too many staff or staff with inappropriate needs. Dismissal and Redundancy (retrenchment) Dismissal is where a worker is told to leave their job due to unsatisfactory work or behaviour. Redundancy is when the business needs to reduce the number of employees either because it is closing down a branch or needs to reduce costs due to falling profits. It may also be due to technological improvements, and the workers are no longer needed. 3. Marketing Department These are the main section of the market departments: Sales department is responsible for the sales and distribution of the products to the different regions. Research & Department is responsible for market research and testing new products to make sure that they are suitable to be sold. Promotion department decides on the type of promotion method for the products, arranges advertisements and the advertising media used.
40

Distribution department transports the products to the market.

4. Finance Department Book keeping procedures Keeping records of the purchases and sales made by a business as well as capital spending. Preparing Final Accounts Profit and loss account and Balance Sheets Providing management information Managers require ongoing financial information to enable them to make better decisions. Management of wages The wages section of the finance department will be responsible for calculating the wages and salaries of employees and organising the collection of income tax and national insurance for the Inland Revenue. Raising Finance The finance department will also be responsible for the technical details of how a business raises finance e.g. through loans, and the repayment of interest on that finance. In addition it will supervise the payment of dividends to shareholders.

Basic Departmentalization Another fundamental characteristic of organization structure is departmentalization, which is the basis for grouping position into departments and departments into the total organization. Managers make choices about how to use the chain of command to group people together to perform their work. There are five approaches to structural design that reflect different uses of the chain of command in departmentalization. The functional, divisional, and matrix are traditional approaches that rely on the chain of command to define departmental groupings and reporting relationships along the hierarchy. Two approaches have emerged to meet organizational needs in a highly competitive global environment. A brief illustration of the five alternatives is presented in the chart on the other side

41

. 1. Vertical functional approach. People are grouped together in departments by common skills and work activities, such as in an engineering department and an accounting department. 2. Divisional Approach. Departments are grouped together into separate, self-contained divisions based in a common product, program, or geographical region. Diverse skills rather than similar skills are the basis of departmentalization. 3. Horizontal matrix approach. Functional and divisional chains of command are implemented simultaneously and overlay one another in the same departments. Two chains of command exist, and some employees report to two bosses. 4. Team-based approach. The organization creates a series of teams to accomplish specific tasks and to coordinate major departments. Teams can exist from the office of the president all the way down to the shop floor. 5. Network Approach. The organization becomes a small, central hub electronically connected to other organizations that perform vital functions. Departments are independent, contracting services to the central hub for a profit. Departments can be located anywhere in the world. Each approach to structure serves a distinct purpose for the organization, and each has advantages and disadvantages. The basic difference among structures is the way in which employees are departmentalized and to whom they report. The differences in structure illustrated here have major consequences for employee goals and motivation. Let us now turn to each of the five structural designs and examine their implications for managers.

Informal Organization Informal organizations consist of the unofficial and unauthorised relationships that occur between individuals or groups within the formal organization. Sometimes informal organizations occur within the formal organization. Informal organizations occur in order to:

42

i) Satisfy a social need. ii) Create a sense of belonging. iii) Perpetuate cultural values of a group. iv) Communicate and pass information.

Characteristics of informal organizations

i) Standards of Behavior Informal organizations generally develop its own laws, taboos and beliefs about what is right and wrong behavior or conduct. ii) Pressures to conform Informal groups tend to exert pressures upon which its members conform to. iii) Informal leadership Leaders in informal organizations emerge from groups through persuasion and influence. Influence of informal organizations in management of formal organizations The presence of informal organizations helps the management of formal organizations. Informal groups form a channel through which certain information can be passed to workers. This additional means of communication can sometimes be very effective. It may also provide a means of social satisfaction. It is not possible for organizations to provide all means of satisfaction. Informal groups can serve as additional source of satisfaction for formal group members.
43

ACTIVITIES
1. Presumed that you have organized and had followed the steps in organizing. Then make a detailed report on the difficulties and problems of organizing. Make suggestions on how you would go about it the second time around. An effective service organization is made up of people who are basically all pointing in the same direction that is, they are in agreement about the reason for the organization to exist, and what they would like to see the organization achieve. If there are very basic disagreements about such matters, it is likely that the organization will not be effective, and will spend its time arguing and posturing. Therefore those involved need to be open and clear about the purpose of the organization, and about the ways that it intends to work. It is then very important to make sure that all those involved are on board that is, in agreement about these fundamental aspects of the organization. This may seem very simple (if not oversimple) but these aspects are the foundations of any organization that wants to achieve something. You ignore them at your peril. Here are just 19 problems/difficulties I've seen in Organizing: Lack of communication - forcing others make assumptions Incomplete or misleading communication Dependence on "tribal knowledge" One shift or department doesn't report conditions in writing to next shift or department Lack of formal written instructions and checklists Processes not documented real-time Problems ignored or overlooked and passed down line, assuming they'll get caught by someone else Faulty parts not returned to vendors for engineering correction Certain items/actions not verified Bugs not reported Computer records not updated Events happen out of sequence Projects sitting idle waiting for communication or parts Product must be taken apart and rebuilt because problems slipped through Problems shipped to customers, where the system must be patched by field support
44

Jobs tailored to personal preferences Departments acting in isolation Product quality depends on who was there that day Lack of personal responsibility Suggestions on how you would go about it the second time around

If you follow the guidelines in organizing you will be able to: 1. Agree on the social problem(s) that you want to tackle by discussing the issues among yourselves. 2. Produce a Vision Statement based on the problem(s) that you are trying to overcome the future situation you would like to see in 15 years time (in 50 words or less). 3. Produce a Mission Statement for your organization (50 words or less) and ask yourselves: Does it clearly say what the purpose of your organization is? Does everyone agree? Does it say what you do not do? 4. Choose a Strategy for your organization that ts your organizations resources.

2. Prepare a table of organization for an ideal Supreme Student Council of your school/or of your department or agency. Is it different from the existing one? In what way? Why? The table of organization presented is similar with the existing one in the sense that they both showing the hierarchal position of staff including their authority and responsibility. It is important to deal with structure early in the organization's development. Structural development can occur in proportion to other work the organization is doing, so that it does not crowd out that work. And it can occur in parallel with, at the same time as, your organization's growing accomplishments, so they take place in tandem, side by side. This means that you should think about structure from the beginning of your organization's life. While the need for structure is clear, the best structure for a particular coalition is harder to determine. The best structure for any organization will depend upon who its members are, what the setting is, and how far the organization has come in its development. Regardless of what type of structure your organization decides upon, three elements will always be there. They are inherent in the very idea of an organizational structure. They are: Some kind of governance, rules by which the organization operates, and distribution of work
45

Republic of the Philippines Department of Education Region VIII

DIVISION OF CALBAYOG CITY

Calbayog IV District

GADGARAN INTEGRATED SCHOOL

Brgy. Gadgaran, Calbayog City, Western Samar

SCHOOL QUALITY MANAGEMENT TEAM

MICHAEL DOMINIQUE GRANADA President

RIYAHN JANE LAMPARAS Vice President

BRIANA LAGARDE Secretary

RUBIE LYN SINTOS Treasurer

JEROME JADULCO Peace Officer

DANICA SABAS Auditor

TIRSO CAOYONG JR. P.I.O

VIVIENE KYLA CABER Councilor KIM PAULINE QUINSAY Councilor VICTOR GOLLOSO Councilor

MARK LABRADORES Councilor

Prepared by: NELSON BELLO OIC/Teacher-in Charge

46

REFERENCES
Barnard, C. I. (1938). The Functions of the Executive. Harvard University Press. (The 30th Anniversary edition was published in 1971). BE Business Education (2013). Social Environment of Business. Accessed on May 24, 2013 at http://business.svtuition.org/2009/11/social-evironment-of-business-andits.html Burgaz, B. (1997). Managerial Roles Approach and The Prominent Study of Henry Mintzberg And Some Empirical Studies Upon The Principals Work. Pp. 9-20. Business Dictionary (2013). Decision Theory. Accessed at http://www.businessdictionary.com/definition/decision-theory.html. May 23, 2013 Citeman (2013). Classical Principles of Organization. Accessed at http://www.citeman.com/1958-classical-principles-oforganization.html#ixzz2UJl81JPU. May 25, 2013 Dale, (1960). The Great Organizers. McGraw-Hill Book Company. (Also published in 1971). Ehow Business (2013). 4 Types of Organizational Change | eHow Accessed at http://www.ehow.com/info_7743524_4-types-organizational-change. html#ixzz2UJcpPD3M. May 25, 2013 Ehow Money (2013). Problems Encountered When Implementing Organizational Change | eHow http://www.ehow.com/info_7860255_problems-encountered-implementingorganizational-change.html#ixzz2UJP6S2sO. Accessed on May 25, 2013 Fayol, H. (1916). Administration Industrielle et Generate; and Fayol, H. 1930. Industrial and General Administration. Translated from French by J. A. Coubrough. Pitman. Global Foundation for Management Education (2013). The New Revolution in Management Education. Accessed on May 24, 2013 at http://www.gfme.org/business_schools/new_revolution.htm Heller, R. (2013). Fusion Management Theory. Accessed on May 25, 2013. http://www.thinkingmanagers.com/management/fusion-management.php Hersey P. Blanchard K. H., Johnson D. E. (1998) Management of Organizational Behaviour Utilizing Human Resources. 7th Edition, Published by Ghosh, Prentice Hall of India Private Limited. James A. F, Freeman R. E. And Dawel R. G. (Jr) (2000), Management. 6th Edition Prentice Hall of India, New Delhi. Kreitner R. J. (1995), Management 6th Edition, Houghton Mifflin Company, USA. M.S.G. (2013). Definition of Coordination. Accessed on May 25, 2013 at http://www.managementstudyguide.com/ coordination.htm 47

March, J. G. and H. A. Simon (1958). Organizations. New York: John Wiley. Pattnayak, Sarita (2012). Management as a Science and as an Art and as both. Classle: Learning is Social. Accessed at https://www.classle.net/content-page/managementscience-and-art-and-both#. May 22, 2013 Tannenbaum, R, I. R. Weschler and F. Massarik. (1961). Leadership and Organizations. McGraw-Hill Book Company. United States Department of Labor (2013). People, Organization and Management. Accessed at http://www.dol.gov/ilab/media/resources/training/get-module4.pdf. May 22, 2013 Wikipedia.org (2013). Organizational effectiveness. Accessed on May 25, 2013 at http://en.wikipedia.org/wiki/Organizational_effectiveness

48