FINALS L2 - Fundamentals of the Managerial Process

1. responsible for the policy & major decisions

2. Activities of group(s) or individual who plan, organize, direct, & control resources in order to achieve the objectives of the agency according to specified quality, quantity, time, method & expenditures

Administration

Refers to 2 major aspects of an agency:

1. Technical function

2. Commercial function

3. Financial function

4. Financial function

5. Accounting function

6. Managerial function

Enumeration

• CONCERNS OF ADMINISTRATION

Technical function

• a particular functional area which is peculiar to & identifies it from others

• In the agricultural sector, one must possess skills in planting, breeding, controlling pests

Commercial function

• concerned with production of goods

• agency is going to place their investments where there will be a good return

Financial function

• need for capital

• assets which can be converted into capital goods & money

Financial function

• Protection of the agency

Legitimization of operations

Under Financial Function:

• must comply to the standards or rules set by the authorities

Protection of the plant/building from illegal human intrusion & catastrophes

Under Financial Function:

• proper construction, provision of security guards, staff orientation to avoid accidents, insurance

Safeguarding agency interest from unfavorable policy changes

Under Financial Function:

• find means through which he can articulate to the policy makers

• accomplished through membership in an association

Creation of a good image of the agency

Under Financial Function:

• good public relations

Accounting function

• Rendition of accounts/reports to the owner of the agency

Management

• "The art of getting things done through people"

• Man

• Money

• Material

• Methods

4 M’s of Management

Manager

• central to management

• person that allocates human & material resources, & directs the operations of an organization

Planning

• Formulation of the steps

• the process itself specifies as its objective

Organizing

• Division of labor & corresponding assignment of duties

Directing

• Initiates & maintains actions towards the objectives

Coordinating

• Closely related to the directing process

• to see to it that every activity within the organization fits effectively & efficiently into the whole scheme of organization

Monitoring and control

• Keeping track of the work

• in accordance with the standards of quality & quantity

Evaluating

• systematic way of learning from experience

• using the lessons learned to improved current activity & promote better planning

• FIRST LINE MANAGER

• MIDDLE LEVEL MANAGER

• TOP LEVEL MANAGER

Enumeration :

DIFFERENT LEVELS OF MANAGERS

Unit head, lead person, foreman, supervisor, etc

First line manager

First line manager

• staff who performs the service of the unit (immediately)

First line manager

• Technically highly qualified & can provide guidance/ training

First line manager

• quality controller

• Quality controller

  • Channel of communication between the rank & file

Middle level manager

• Intermediate

• Interpret in clear operational terms

Middle level manager

• Spend most of their time communicating

• with the first level & top managers

Middle level manager

• Attend meetings called by the top managers

Middle level manager

• Preside over meetings with the first line managers

• Conduct supervisory visit

Top level manager

• Responsible for charting of the direction

• Set rules to be followed

Top level manager

• both within & outside the agency

• not necessary for them to have in-depth technical expertise

Top level manager

• they must have high degree of conceptual, communication & interpersonal skill

• Technical skill lessens as the level of management goes down

• Technical skill becomes greater as the level goes down

Which is true regarding technical skills

Decision making

• Either Formulator or approving officer

• Decides on assignment of responsibility & authority

Decision making

Planner, organizer, resource allocator, innovator/entrepreneur, crisis solver/handler & negotiator

Information collection and dissemination

• Continuously scanning the external & internal environment

• to identify threats & opportunities

• Weakness and strength

Information collection and dissemination

Attend social functions, rubbing elbows with high officials of government & private organizations,

Interpersonal rules

• Arising directly from the manager's formal authority & involve interpersonal relationship

Interpersonal rules

• role include that of serving as a figurehead, as a leader

• Relationship: clienteles of the agency, etc.

Authority and responsibility

• should be definite, clear-cut & understood"

  • right to give orders & the power to exact obedience come from 2 sources:

  • From top management, and supervisees

Delegation of authority and responsibility

• Delegation process is a result of growth & change in the agency

• increased in the volume & complexity of the work

• these factors continue & increase their pressure

Delegation of authority and responsibility

• tasks which the superior is most likely to delegate are to be found in those areas in which he has or believes he has

Unity of command

Principle: each employee should receive orders from & report to, only one supervisor

Purpose: help establish a well-defined channels of authority

Unity of direction

Principle: one head, one plan for a group of activities having the same objective

Span of control

• Principle: the number of individuals reporting to a supervisor should not be more than can be effectively coordinated & directed

Specifications of objectives

• concept of hierarchy

• broad objectives of the organization must be clearly defined & understood by all

• And must be broken down into more specific objectives

Division of work

• sum total of work for which he is responsible is divided in the best possible way into jobs that he can most effectively supervise

1st principle

Under DIVISION OF WORK (what principle)

• Exception principles - states that all work & all decisions possible should be divided among subordinates

• leaving only the exceptional work & decisions to be handled by the supervisor

2nd principle

Under DIVISION OF WORK (what principle)

• Work should be divided into simple routine repetitive tasks

3rd principle

Under DIVISION OF WORK (what principle)

• Principle of functional homogeneity or task similarity

• Each position should contain work tasks that are not different in kind

• if they are too different, the advantage of specialization is lost.

Formal and informal arrangement/relationship in the organization

• No formally prescribed organizational structure can be expected to provide for all the relationships that should exist between employees

• informal relationships or structure which has developed within the organization to complement the formal

Formal and informal arrangement/relationship in the organization

• Informal organization network of relationships based not on any established plan or system but on the personalities of individuals

Other Principles

• Henri Fayol

• He pointed out the importance of discipline, of observing equity