ABM Organization and Management Module 1 Study Notes

Module Metadata and Governance

  • Grade Level/Subject: Grade 11 ABM - Organization and Management.
  • Publication Details: Module 1, Quarter 1, Week 1. First Edition, 2020. Copyright 2020 La Union Schools Division Region I.
  • Development Team:
    • Author: Madylene P. Peralta, T-I.
    • Editor: SDO La Union, Learning Resource Quality Assurance Team.
    • Illustrators: Ernesto F. Ramos Jr., P II and Rogelio Runas Jr.
    • Management Team:
      • ATTY. Donato D. Balderas, Jr. (Schools Division Superintendent).
      • Vivian Luz S. Pagatpatan, Ph.D (Assistant Schools Division Superintendent).
      • German E. Flora, Ph.D (CID Chief).
      • Virgilio C. Boado, Ph.D (EPS in Charge of LRMS).
      • Mario B. Paneda, Ed.D (EPS in Charge of Araling Panlipunan).
      • Michael Jason D. Morales (PDO II).
      • Claire P. Toluyen (Librarian II).

Conceptual Definitions of Management

Management is defined through various expert perspectives and specialized focus areas:

  • Mary Parker Follet: Defined management as "the art of getting things done through people."
  • George R. Terry: Defined management as "a distinct process consisting of planning, organizing, actuating and controlling; utilizing in each both science and art, and followed in order to accomplish pre-determined objectives."
  • F.W. Taylor: Defined management as "the art of knowing what you want to do and then seeing that they do it in the best and the cheapest way."
  • Harold Koontz: Defined management as "the art of getting things done through others and with formally organized groups."
  • Modern Operational Context: Management is required across organizations of all types, including small, medium, and large sizes; public or private ownership; and profit or nonprofit missions.

The Five Functions of Management

Management functions are the essential activities required to coordinate and oversee work performance within an organization.

  • (a) Planning: Involves determining organization goals, creating detailed action plans to achieve them, and listing the resources required.
  • (b) Organizing: Includes the assignment of tasks, setting aside funds for future utilization, and establishing harmonious relationships among personnel to achieve organizational goals.
  • (c) Staffing: Focuses on filling various job positions within the organization's structure. This involves recruiting individuals based on the specific type of job and the number of manpower needed, with the core purpose of putting the "right person on the right job."
  • (d) Leading/Directing: Consists of influencing, supervising, training, guiding, and motivating subordinates to maximize their performance and help the organization attain its goals.
  • (e) Controlling: Involves evaluating results and, where necessary, correcting the performance of individuals or teams to ensure alignment with previously established goals and plans.
Critical Performance Factors
  • Coordination: The assurance that all individuals and teams are working together harmoniously toward a single goal.
  • Efficiency: Refers to the optimal use of scarce resources—including human, financial, physical, and mechanical—to ensure maximum productivity.
  • Effectiveness: Defined as "doing things correctly" while engaging in activities that directly assist the organization in attaining its aims.

Case Study: Practical Application of Management Functions

The text provides a first-person example from a Production Leader/Assistant Supervisor in a manufacturing company regarding motor production:

  • Step 1 (Planning): Planning monthly output for a specific motor, including daily quotas and individual hourly targets. Plans also include recovery actions for "downtime" (broken machines).
  • Step 2 (Staffing): Checking if the personnel count is complete to form the production line; recruiting internally or externally based on needed skills.
  • Step 3 (Organizing): Setting up work groups to manufacture specific motor parts along the production line and ensuring harmonious workflow.
  • Step 4 (Leading): Motivating staff through rewards such as vacation leaves, gifts for the "best operator," or external treats to ensure target times are met with minimal "scrap motor" waste.
  • Step 5 (Controlling): Monitoring absences, ensuring tasks follow standard operating procedures, and verifying that machine performance meets the required standards.

Evolution of Management Theories

The formal study of management began in the late 19th century following the Industrial Revolution (the transition from hand production to machines, chemical manufacturing, iron production, steam power, and machine tools).

1. Scientific Management Theory
  • Key Figure: Frederick W. Taylor (1856-1915), the "Father of Scientific Management."
  • Concept: Defined management as "the one best way" for a job to be done. He identified that low output was often caused by a lack of worker enthusiasm and a mismatch between skills and job assignments.
  • The Four Principles of Scientific Management:
    1. Develop a scientific method for every job to replace old "rule-of-thumb" methods.
    2. Teach, train, and develop the workers.
    3. Harmonize the interests of both the employer and employees.
    4. Establish a fair division of work and responsibility between management and the workforce.
  • Additional Contributors: Frank Gilbreth (1868-1924) and Lillian Gilbreth (1878-1972). They created a classification scheme called "THERBLIGS" to label 17 basic hand motions to eliminate wasteful motion and increase productivity.
2. Administrative Management Theory
  • Focus: The manager’s role and the determination of best management practices.
  • Key Figures: Henri Fayol (1841-1925), the "Father of Principles of Management," and Max Weber (1864-1920).
  • Fayol’s Perspective: He argued that management should be viewed separately from other business activities like finance, marketing, or research.
  • Weber’s Perspective: Focused on Bureaucracy, emphasizing authority structures and coordination.

Henri Fayol’s 14 Management Principles

  1. Work Division/Specialization: Dividing work based on skills to increase efficiency.
  2. Authority and Responsibility: The right to issue commands, followed by accountability for consequences.
  3. Discipline: Obedience, respect for authority, and proper conduct.
  4. Unity of Command: A subordinate should report to and receive orders from only one superior to avoid confusion.
  5. Unity of Direction: All activities in the same line of work must pursue the same objectives.
  6. Subordination of Individual Interest: Company objectives must take precedence over personal considerations.
  7. Remuneration/Pay: Workers must be paid sufficiently to influence productivity and motivation.
  8. Degree of Centralization: The concentration of power at central management, which varies based on company size.
  9. Scalar Chain: The chain of command from top management to the lowest rank.
  10. Order: Social order and authoritative procedures ensure fluid company operations.
  11. Equity/Fairness: Kind treatment and justice for all employees to ensure a just workplace.
  12. Stability of Tenure: Discouraging high employee turnover; service periods should not be too short.
  13. Initiative: Encouraging employees to provide new ideas and strength to the organization.
  14. Esprit de Corps: Promoting team spirit and morale both individually and communally.

Max Weber’s Bureaucratic Characteristics

  1. Division of Labor.
  2. Formal Hierarchical Structure.
  3. Selection based on Technical Expertise.
  4. Management by Rules.
  5. Written Documents.
  6. Only Legal Power is Important.
  7. Formal and Impersonal relations.

Behavioral Management Theory (Human Relations)

This theory focuses on the human aspect of productivity. Key figures include Elton Mayo (1880-1949) and Abraham Maslow (1908-1970).

  • Elton Mayo and the Hawthorne Studies: Concluded that productivity gains in lighting experiments and bank wiring observation experiments were caused by the Hawthorne Effect (giving workers special attention and privileges) rather than physical environments. He emphasized social needs and human relations.
  • Maslow’s Hierarchy of Needs: Needs are organized from lowest (most basic) to highest:
    • Physiological Needs: Food, clothing, shelter, air, physical survival.
    • Safety Needs: Security, stability, protection (body, health, property, family, employment).
    • Belonging and Love Needs: Friendship, family, and sexual intimacy.
    • Esteem Needs: Self-esteem, confidence, respect, achievement, fame, and glory.
    • Self-actualization Needs: The need for self-finding, morality, spontaneity, and acceptance of facts.

Specialized Management Theories

  • Management Science Theory (Quantitative Approach): Developed during World War II. It uses mathematical and statistical solutions for military problems adapted for business use.
  • Organizational Environment Theory: Focuses on external factors (social, technical, economic) that affect goals. It utilizes the concept of systems:
    • Open System: Interactions with the external environment, such as monitoring trends and people's interests.
    • Closed System: No interaction with the environment, focusing solely on internal machines and materials.

Management Styles

  1. Autocratic: The manager makes decisions unilaterally and conveys them to the staff.
  2. Consultative: The manager engages subordinates in problem-solving and decision-making to empower them. Communication is downward, but feedback is encouraged.
  3. Persuasive: Similar to autocratic as the manager holds power, but the manager spends time convincing subordinates of the benefits of decisions.
  4. Democratic: A multilateral approach where the manager allows employees to participate in decision-making; decisions are agreed upon by the majority.
  5. Laissez Faire: Refusal to interfere. The manager acts as a mentor or stimulator while employees manage their own areas. This requires highly self-motivated and task-oriented staff.

Questions & Discussion

Pre-Test and Post-Test Review
  • Scientific Management Father: F.W. Taylor.
  • Principles of Management Father: Henri Fayol.
  • Unity of Command: The principle that each subordinate reports to only one superior.
  • Hierarchy of Needs: The last/top need is Self-actualization.
  • Management Definition: The process of obtaining, deploying, and utilizing resources to contribute to success.
  • Hawthorne Study Examples: Lighting experiment and Bank wiring observation.
Application Scenarios
  • Scenario 1 (School Task): Students are asked to apply management functions (Planning, Organizing, Staffing, Leading, Controlling) to a specific school activity, such as a project or club event.
  • Scenario 2 (Fast Food Manager): Ivan Tatlonghari, a manager, faces decreasing profits due to staff inexperience. The solution involves applying Scientific Management (training and matching skills to tasks), Staffing (recruiting expertise), and perhaps a Consultative Style to empower and train the team.