THE JOB

MANAGEMENT
-IS A FUNCTION THAT DIRECTS AND COORDINATES THE EFFORTS
OF THE PEOPLE TO ACCOMPLISH GOALS AND OBJECTIVES BY
USING AVAILABLE RESOURCES EFFICIENTLY AND EFFECTIVELY.
-IT IS ALSO A PROCESS OF ACCOMPLISHING THE
ORGANIZATION’S GOALS BY WORKING WITH AND THROUGH
PEOPLE. IT INCLUDES PLANNING, ORGANIZING, STAFFING,
LEADING, OR DIRECTING AND CONTROLLING.
-GETTING THINGS DONE THROUGH PEOPLE.
1910-1940S:MANAGEMENT AS SCIENCE

MANAGEMENT AS SCIENCE AS DEVELOP IN THE

EARLY 20TH CENTURY AND FOCUSED ON INCREASING
PRODUCTIVITY AND EFFICIENCY THROUGH
STANDARDIZATION, DIVISION OF LABOR,
CENTRALIZATION AND HIERARCHY. A VERY ‘TOP
DOWN’ MANAGEMENT WITH STRICT CONTROL OVER
PEOPLE AND PROCESSES DOMINATED ACROSS
INDUSTRIES.
1950-1960S:FUNCTIONAL ORGANIZATIONS
•DUE TO GROWING MORE COMPLEX
ORGANIZATIONS, THE 1950S AND 1960S SAW THE
EMERGENCE OF FUNCTIONAL ORGANIZATIONS AND
THE HUMAN RESOURCE(HR) MOVEMENT. MANAGERS
BEGAN TO UNDERSTAND THE HUMAN FACTOR IN
PRODUCTION AND PRODUCTIVITY AND TOOLS
SUCH AS GOAL-SETTING, PERFORMANCE REVIEWS
AND JOB DESCRIPTION WERE BORN.
1970S: STRATEGIC PLANNING
• THE FOCUS ID FROM MEASURING FUNCTION TO
RESOURCE ALLOCATION AND TOOLS LIKE STRATEGIC
PLANNING, GROWTH SHARE MATRIX, AND SWOT
(IDENTIFICATION AND ANALYSIS OF THE COMPANY’S
STRENGTHS, WEAKNESS, OPPORTUNITIES, AND THREATS)
WERE USED TO FORMALIZE STRATEGIC PLANNING
PROCESSES. AFTER SEVERAL DECADES OF ‘BEST
PRACTICE’ AND ‘ONE SIZE FITS ALL’ SOLUTIONS,
 1980S: COMPETITIVE ADVANTAGE
• AS THE BUSINESS ENVIRONMENT GREW INCREASINGLY
COMPETITIVE AND CONNECTED, AND WITH A BLOOMING
MANAGEMENT CONSULTANCY INDUSTRY, COMPETITIVE
ADVANTAGE BECAME A PRIORITY OR ORGANIZATIONS IN THE
1980S. TOOLS LIKE TOTAL QUALITY MANAGEMENT (TQM), SIX
SIGMA AND LEAN MANAGEMENT WERE USED TO MEASURE
PROCESSES AND IMPROVE PRODUCTIVITY. EMPLOYEES WERE
MORE INVOLVED BY COLLECTING DATA, BUT DECISIONS WERE STILL
MADE AT THE TOP, AND GOALS WERE USED TO MANAGE PEOPLE
AND MAINTAIN CONTROL.
1990S : PROCESS OPTIMIZATION
BENCHMARKING AND BUSINESS PROCESS, REENGINEERING BECAME
POPULAR IN THE 1990S, AND BY THE MIDDLE OF DECADE, 60% OF
FORTUNE 500 COMPANIES CLAIMED TO HAVE PLANS FOR OR HAVE
ALREADY INITIATED SUCH PROJECTS. TQM, SIX SIGMA, AND LEAN
REMAINED MORE POPULAR AND MORE HOLISTIC, ORGANIZATION-
WIDE APPROACH AND STRATEGY IMPLEMENTATION TOOK THE
STAGE WITH TOOLS SUCH AS STRATEGY MAPS AND BALANCE
SCORECARDS.
2000S:BIG DATA
LARGELY DRIVEN BY THE CONSULTING INDUSTRY UNDER THE BANNER OF BIG DATA,
ORGANIZATIONS IN THE 2000S STARTED TO FOCUS ON USING TECHNOLOGY FOR
GROWTH AND VALUE CREATION. BIG DATA IS A BROAD TERM FOR DATA SETS LARGE
OR COMPLEX THAT TRADITIONAL DATA PROCESSING APPLICATIONS ARE ADEQUATE.
ACCURACY IN BIG DATA MAY LEAD TO MORE CONFIDENT DECISION-MAKING. AND
BETTER DECISIONS CAN MAKE GREATER OPERATIONAL, COST-REDUCTIONS, AND
REDUCED RISK.
AFTER SEVERAL DECADES OF TRYING TO MANAGE PEOPLE THROUGH THE DIFFERENT
MANAGEMENT THEORIES, ONE HAS TO REALIZE THAT WHAT WORKED BEFORE JUST
SIMPLY IS NOT ENOUGH ANYMORE. TRADITIONAL MANAGEMENT IS FINE IF ONE
WANTS COMPLIANCE BUT IF ONE WANTS INNOVATION A THING OF THE PAST.
SUCCEEDING IN TODAY’S ENVIRONMENT REQUIRES A MANAGEMENT STYLE THAT
INSPIRES AND ITS PARTICIPATORY.
1.2 PRINCIPLES OF MANAGEMENT
IT WAS A FRENCH MANAGEMENT THEORIST HENRI FAYOL (1841-1925) WHO
DEVELOPED THE FUNDAMENTAL NOTION OF PRINCIPLES OF MANAGEMENT. FAYOL
HAVE 14 PRINCIPLES OF MANAGEMENT.

1. DIVISION OF WORK – ACCORDING TO THIS PRINCIPLE, THE WHOLE WORK IS

DIVIDED INTO SMALL TASKS. THE SPECIALIZATION OF THE WORK FORCE ACCORDING
TO THE SKILLS OF A PERSON, CREATING SPECIFIC PERSONAL AND PROFESSIONAL
DEVELOPMENT WITHIN THE LABOR FORCE, AND THEREFORE INCREASING
PRODUCTIVITY, LEADS TO SPECIALIZATION WHICH INCREASES THE EFFICIENCY OF
LABOR. BY SEPARATING A SMALL PART OF WORK, THE WORKER’S SPEED AND
ACCURACY IN HIS/HER PERFORMANCE INCREASES. THIS PRINCIPLE IS APPLICABLE TO
BOTH TECHNICAL AS WELL AS MANAGERIAL. THIS CAN BE USEFUL IN CASE OF PROJECT
WORKS TOO.
2. AUTHORITY AND RESPONSIBILITY – THIS REFERS TO THE ISSUE OF
COMMANDS FOLLOWED BY RESPONSIBILITY TO GIVE ENHANCED ORDER TO HIS
SUBORDINATES; RESPONSIBILITY MEANS OBLIGATION FOR PERFORMANCE. THIS
PRINCIPLE SUGGESTS THAT THERE MUST BE PARITY BETWEEN AUTHORITY AND
RESPONSIBILITY. THEY ARE CO-EXIST AND GO TOGETHER, AND ARE TWO SIDES
OF THE COIN, AND MUST BE COMMENSURATE WITH RESPONSIBILITY.

3. DISCIPLINE – REFERS TO OBEDIENCE , PROPER CONDUCT IN RELATION TO

OTHERS, RESPECT OF AUTHORITY, ETC. IT IS ESSENTIAL FOR THE SMOOTH
FUNCTIONING OF ALL ORGANIZATIONS. THIS WILL ALSO SHAPE THE CULTURE
INSIDE ORGANIZATION. DISCIPLINE IS ABSOLUTELY NECESSARY FOR ENTERPRISES
TO FUNCTION WELL.
4. UNITY OF COMMAND – THIS PRINCIPLE STATES THAT EACH SUBORDINATE SHOULD
RECEIVE ORDERS AND BE ACCOUNTABLE TO ONE SUPERIOR. IF AN EMPLOYEE RECEIVES
ORDERS FROM MORE THAN ONE SUPERIOR, IT IS LIKELY TO CREATE CONFUSION AND
CONFLICT. UNITY OF COMMAND ALSO MAKES IT EASIER TO FIX ENTERPRISES TO
FUNCTION WELL.

5. UNITY OF DIRECTION – ALL THOSE WORKING IN THE SAME LINE OF ACTIVITY MUST
UNDERSTAND AND PURSUE THE SAME OBJECTIVES. ALL RELATED ACTIVITIES SHOULD
PUT UNDER ONE GROUP, THERE SHOULD BE ONE PLAN OF ACTION FOR THEM, AND
THEY SHOULD BE UNDER THE CONTROL OF ONE MANAGER.

6. SUBORDINATION OF INDIVIDUAL INTEREST – THE MANAGEMENT MUST PUT ASIDE

PERSONAL CONSIDERATIONS AND PUT COMPANY OBJECTIVES FIRST. THEREFORE, THE
INTERESTS OF GOALS OF THE ORGANIZATION MUST PREVAIL OVER THE PERSONAL
INTERESTS OF INDIVIDUALS.
7. REMUNERATION – WORKERS MUST BE PAID SUFFICIENTLY AS THIS IS A CHIEF
MOTIVATION OF EMPLOYEES AND THEREFORE GREATLY INFLUENCES PRODUCTIVITY.
THE QUANTUM AND METHODS OR REMUNERATION PAYABLE SHOULD BE FAIR,
REASONABLE, AND REWARDING OF EFFORT. REMUNERATION IS PAID TO WORKER AS
PER THEIR CAPACITY AND PRODUCTIVITY. THE MAIN OBJECTIVE OF AN ORGANIZATION
IS TO MAXIMIZE THE WEALTH AND THE NET PROFIT AS WELL. FOR THIS PURPOSE, THE
ORGANIZATION HAS PAID WAGES, SALARIES, AND BENEFITS TO THEIR STAFF PROPERLY
AND SCIENTIFICALLY SO THAT ORGANIZATIONAL EFFICIENCY CAN BE ENSURED.

8. THE DEGREE OF CENTRALIZATION – THE AMOUNT OF POWER WIELDED WITH THE

CENTRAL MANAGEMENT DEPENDS ON COMPANY SIZE. CENTRALIZATION IMPLIES THE
CONCENTRATION OF DECISION-MAKING AUTHORITY AT THE TOP MANAGEMENT.
SHARING OF AUTHORITY WITH LOWER LEVEL IS CALLED DECENTRALIZATION. THE
ORGANIZATION SHOULD STRIVE TO ACHIEVE A PROPER BALANCE.
9. SCALAR CHAIN – SCALAR CHAIN REFERS TO THE CHAIN OF SUPERIORS RANGING
FROM TOP MANAGEMENT TO THE LOWEST RANK. THE PRINCIPLE SUGGESTS THAT
THERE SHOULD BE A CLEAR LINE AUTHORITY OF AUTHORITY FROM TOP TO BOTTOM
LINKING ALL MANAGERS AT ALL LEVELS. IT IS CONSIDER A CHAIN OF COMMAND.
HOWEVER, THERE IS A CONCEPT CALLED “GANG PLANK” IN WHICH A SUBORDINATE
MAY CONTACT A SUPERIOR IN CASE OF AN EMERGENCY, DEFYING THE HIERARCHY OF
CONTROL. IN THIS EVENT, THE IMMEDIATE SUPERIORS MUST BE INFORMED ABOUT THE
MATTER.

10. ORDER – SOCIAL ORDER ENSURES THE FLUID OPERATION OF A COMPANY

THROUGH AUTHORITATIVE PROCEDURE. MATERIAL ORDER ENSURES SAFETY AND
EFFICIENCY IN THE WORKPLACE. ORDER SHOULD BE ACCEPTABLE AND UNDER TOWARD
ALL EMPLOYEES.
11. EQUITY – EMPLOYEES MUST BE TREATED KINDLY, AND JUSTICE
MUST BE ENACTED TO ENSURE A JUST WORKPLACE. MANAGERS
SHOULD BE FAIR AND IMPARTIAL WHEN DEALING WITH EMPLOYEES,
GIVING EQUAL ATTENTION TOWARD ALL EMPLOYEES.

12. STABILITY OF TENURE OF PERSONNEL – THE PERIOD OF SERVICE

SHOULD NOT BE TOO SHORT AND EMPLOYEES SHOULD NOT BE
MOVED FROM POSITIONS FREQUENTLY. AN EMPLOYEE CANNOT
RENDER USEFUL SERVICE IF HE/SHE IS REMOVED BEFORE HE/SHE
BECOMES ACCUSTOMED TO THE WORK ASSIGNED TO HIM/HER.
13. INITIATIVE – USING THE INITIATIVE OF EMPLOYEES CAN ADD STRENGTH
AND NEW IDEAS TO AN ORGANIZATION. INITIATIVE ON THE PART OF
EMPLOYEES IS A SOURCE OF STRENGTH FOR AN ORGANIZATION BECAUSE
IT PROVIDES NEW AND BETTER IDEAS. EMPLOYEES ARE LIKELY GREATER
INTEREST IN THE FUNCTIONING OF THE ORGANIZATION.

14. ESPRIT DE CORPS – THIS REFERS TO THE NEED OF MANAGERS TO

ENSURE AND DEVELOP MORALE IN THE WORKPLACE; INDIVIDUALLY AND
COMMUNALLY. TEAM SPIRITS HELPS DEVELOP AN ATMOSPHERE OF MUTUAL
TRUST AND UNDERSTANDING. TEAM SPIRIT HELPS TO FINISH THE TASK ON
TIME.
FAYOL ALSO DIVIDED THE MANAGEMENT
FUNCTION INTO FIVE KEY ROLES:

TO ORGANIZE
TO PLAN AND FORECAST
TO COMMAND
TO CONTROL
TO COORDINATE
 THE QUALITIES OF GEM
- THEWORD “GEM” REFERS TO A MINERAL OR ORGANIC SUBSTANCE, CUT AND
POLISHED AND USED AS AN ORNAMENT, AS SEALS (ITEMS OF ASSURANCE) AND AS
TALISMANS(GOOD-LUCK-CHARMS).
- THE 4 GEMS OF MANAGEMENT, BY ANALOGY, STAND FOR THE FOUR IMPORTANT
MANAGEMENT CYCLES: GOAL, EXECUTION, MEASUREMENT AND SUSTENANCE. IT
ALSO SERVES TO DESCRIBE THE MANAGEMENT PRACTICE ITSELF. THESE ARE THE
FOUR PILLARS THAT PROPEL ORGANIZATIONS TO SURVIVE GROW, AND REACH
GREATER HEIGHTS. THEY ARE TOOLS THAT LEADERS USE TO GALVANIZE A WORK
FORCE INTO ACTION. THEY ARE SOLID ANCHORS THAT ENSURE THE
ORGANIZATION’S STAYING POWER WHEN CRISIS LOOMS.
THE MANAGEMENT PROCESS

MANAGEMENT IS A PROCESS, A NON-STOP PROCESS ON ENSURING

CONTINUITY AND GROWTH WITHIN AN ORGANIZATION. IT
INVOLVES GOAL-SETTING, EXECUTING A PLAN, MEASURING RESULTS,
AND SUSTAINING OPERATIONS – THE FOUR GEMS OF MANAGEMENT.

TO ENSURE THIS THE MANAGER NEEDS TO CONCENTRATE ON

FULFILLING FOUR CRITICAL FUNCTIONS WHICH ARE REFERRED TO AS
THE 4 GEMS OF MANAGEMENT.
 GEMS CYCLE
SUSTAINING GOAL
GROWTH SETTING

MEASURING EXECUTING
RESULTS THE PLAN
GOAL SETTING:
THE MANAGEMENT CYCLE BEGINS WITH GOAL-SETTING, OR ESTABLISHING OBJECTIVES FOR A COMPANY OR
ORGANIZATION. OBJECTIVES AND GOALS ARE DERIVED FROM A SOUND REVIEW AND UNDERSTANDING OF THE
PURPOSE, VISION AND MISSION OF THE ORGANIZATION.

SYNTHESIZING INFORMATION – IN THIS PRIMARY STAGE, THE MANAGER ENGAGES IN DATA

GATHERING. IF HIS/HER COMPANY PLANS TO EMBARK ON A PROJECT, HE/SHE GATHERS INFORMATION
TO FIND OUT IF IT WILL, INDEED, BE FEASIBLE AND BENEFICIAL TO THE COMPANY. HE/SHE EXAMINES THE
ENTIRE SCENARIO CAREFULLY – THE NATURE OF BUSINESS, THE KIND OF PRODUCT OR SERVICE IT WILL
OFFER, ITS MARKET DEMAND, COMPETITION, ETC. THE MANAGER ASSESSES EACH FACTOR AND LOOKS
AT THE BUSINESS IN ITS ENTIRETY. FROM THERE HE/SHE MAKES A CONCLUSION IF THE BUSINESS IS
WORTH STARTING.

FORMULATING ALTERNATIVES – THROUGH EFFECTIVE DATA GATHERING AND SYNTHESIS, THE

MANAGER ARRIVES AT A DECISION ON NOT TO PURSUE THE BUSINESS. HE ALSO COMES UP WITH
ALTERNATIVES OR EVEN PLAN B, PLAN C IN CASE PLAN A DOES NOT WORK WELL.
DECIDING ON COURSES OF ACTION – WITH ENOUGH DATA ON THREE
POSSIBLE BUSINESS – SELLING BOILED CORN, SAUTÉED PEANUTS AND BANANA
CUE, MANG JUAN NOW DECIDE ON THE VENTURE HE WOULD PURSUE.

ESTABLISHING GOALS – LET US SUPPOSED MANG JUAN DECIDES TO SELL

CORN. THE NEXT STEP IS FOR HIM TO PUT HIS DECISION IN MORE CONCRETE
TERMS. HIS MIND TELLS THAT BEFORE HE IMPLEMENTS HIS DECISION, HE MUST
FIRST SET HIS GOAL OR ”OPERATING OBJECTIVE”. THIS MEANS SETTING DAILY
TARGET REVENUES FROM SALES WITHIN A LEVEL OF BUDGET FOR EXPENSES, IN
ORDER FOR HIM TO ARRIVE AT AN ESTIMATED NET PROFIT AT THE END OF THE
DAY.
 EXECUTING PLAN
THIS PHASE INVOLVES DIRECTING THE ATTAINMENT OF PROJECT OR BUSINESS GOALS.
3 SUB-STAGES:
ORGANIZING, COMMUNICATING, GUIDING

ORGANIZING INVOLVES PUTTING TOGETHER THE RESOURCES OF PEOPLE, TIME, MONEY AND MATERIALS
REQUIRED TO IMPLEMENT BUSINESS PLAN. THIS INCLUDES IDENTIFYING AND PURCHASING PHYSICAL
REQUIREMENTS (I.E. CORN AND PEDDLING CART ), AND DEVELOPING SCHEDULE AND PEDDLING ROUTE IN THE
AREA.

COMMUNICATING IN AS SOON AS MANG JUAN MAKES HIS BUSINESS PURCHASES. IT IS EXPECTED THE HE WILL
EXHAUST ALL MEANS TO FIND THE BEST CORN SUPPLIER WHO CAN GIVE HIM THE BEST PRICE. HE WILL ALSO
NEED TO COMMUNICATE TO ATTRACTS HIS TARGET CUSTOMERS. HIS ADVERTISING TOOLS ARE SIMPLE: HE HAS
A SIGN IN HIS PEDDLING CART THAT READS “MANG JUAN DELICIOUS CORN” AND HE SHOUTS, “MAIS!,MAIS!” AS
HE MAKES HIS ROUNDS THROUGHOUT THE AREA.
GUIDING IS DONE BY TEACHING WORKFORCE TO PROPERLY RELATE CUSTOMERS, ESPECIALLY THE
DIFFICULT AND DEMANDING ONES. AS MANG JUAN GETS OLDER, GUIDING MAY EVEN GO AS FAR AS
TEACHING HIS SON OR A TRUSTED MEMBER OF THE FAMILY EVERY ASPECT OF THE BUSINESS, SO THAT
SOMEBODY CAN FULLY TAKE OVER THE STORE IN THE FUTURE.

MEASURING RESULTS THIS REQUIRES THE MANAGER TO EVALUATE HOW THE PROJECT OR BUSINESS
IS PROGRESSING TOWARD ITS GOALS. PROPER EVALUATIONS ALLOWS THE MANAGER TO DETECT
DEVIATION FROM THE PLAN IN TIME TO TAKE CORRECTIVE ACTION. THIS IS DONE BY COMPARING
ACTUAL ACTIVITIES WITH THE PLANNED ACTIVITIES.
BACK THEN WHEN HE WAS STILL SELLING CORN, MANG JUAN COULD EASILY EVALUATE THE
PROGRESS OF HIS BUSINESS. IF BY NOON HE ONLY MAKES 200.00 WORTH OF CORN SALES WITH A
TARGET INCOME OF 800.00 A DAY, THEN HE CAN IMMEDIATELY CONCLUDE THAT HE IS DOING
POORLY. IT MAY NOT BE EASY AS TO CALCULATE THE DAILY PROFITS OF MANG JUAN’S SARI-SARI
STORE, SINCE ONE MUST ALSO ACCOUNT FOR THE PAYABLES DUE TO THE CREDITORS AT THE END OF
EACH WEEK. ONLY BY THEN CAN MANG JUAN COMPUTE HIS EARNINGS, AND FIND OUT IF HE IS
ATTAINING HIS SALES PROFIT TARGETS.
2 BUSINESS ASPECTS
QUANTITATIVE ASPECT THIS REFERS TO THE INCREASE OR DECREASE OF SHOPPERS IN A
GROCERY STORE, AS WELL AS HOW FAST PRODUCTS ARE MOVING OUT OF THE SHELVES.
THESE INDICATORS WILL HELP THE BUSINESS MANAGER DETERMINE SEVERAL THINGS: 1. IF HE
IS SELLING THE RIGHT PRODUCTS; 2. IF HE SHOULD OFFER MORE VARIETY OR A BIGGER
QUANTITY OF CERTAIN PRODUCTS; 3. AND IF HE SHOULD PULL OUT CERTAIN COMMODITIES
FROM THE GROCERY SHELVES AND REPLACE THEM WITH NEW ONES.
QUALITATIVE ASPECT ON THE OTHER HAND, BASICALLY REFERS TO CUSTOMER SATISFACTION.
CUSTOMER COMPLAINTS AND FEEDBACK THROUGH SURVEY FORMS WILL HELP THE
MANAGER FIND OUT WHICH SPECIFIC PART OF THE SERVICE NEEDS IMPROVEMENT-
CUSTOMER ASSISTANCE, CASHIERING, OR SECURITY.
 SUSTAINING GROWTH
REFERRED AS SUSTAINING OPERATIONS WHICH INCLUDES TWO IMPORTANT MANAGEMENT FUNCTIONS. 1.
DEVELOPING PEOPLE 2. ENCOURAGING CHANGE. ONLY TO ENSURE CONTINUITY AND GROWTH OF A
COMPANY.
PROMOTING CHANGE
CHANGE IS SYNONYMS WITH IMPROVEMENT. THEREFORE IN ORDER TO KEEP IMPROVING, YOU MUST
WELCOME CHANGES IN YOUR COMPANY. A GOOD MANAGER PROMOTES CREATIVITY AND INNOVATION. HE IS
NOT AFRAID TO TAKE RISKS THAT ARE WITHIN REASONABLE BOUNDS, FOR IT IS ONLY THROUGH IT THAT HE CAN
SUSTAIN THE GROWTH OF HIS COMPANY.
DEVELOPING PEOPLE
TO HAVE A GOOD PEOPLE IN THE COMPANY, YOU MUST START WITH THE RIGHT PEOPLE. DEVELOPING
PEOPLE INVOLVES:
1. DELEGATION OF IMPORTANT TASKS
2. EMPOWERMENT
3. CONTINUOUS GUIDANCE
ROLES & RESPONSIBILITIES OF A MANAGER
A MANAGER IN A WORKPLACE IS RESPONSIBLE FOR A LOT OF DUTIES – MOST OF THEM IN NATURE. IN
A SMALL BUSINESS LIKE A CARINDERIA, THE MANAGER IS OFTEN A JACK-OF-ALL-TRADES. THOUGH
HE/SHE MAY OVERSEE ASPECTS OF THE BUSINESS, HIS/HER RESPONSIBILITIES MAY BE HANDS-ON AS
WELL. IN MEDIUM-SIZED AND LARGE CORPORATIONS, YOU MIGHT FIND LAYERS OF MANAGEMENT
LEVELS, EACH WITH SPECIFIC DUTIES.
A.)STAFFING – IN A SMALL, THIS INCLUDES WRITING JOB DESCRIPTIONS, PUTTING ADS FOR OPEN
POSITION, REVIEWING RESUMES AND INTERVIEWING APPLICATIONS, INTERVIEWING PROSPECTIVE
APPLICANTS, FEEDBACK REGULARLY.
- THE MANAGER OVERSEES HIS/HER EMPLOYEES. HE/SHE ENSURES THAT THEY ARE TRAINED
PROPERLY, FOLLOW COMPANY GUIDELINES AND POLICIES, PERFORM THE JOBS SATISFACTORILY, AND
RECEIVE FEEDBACK REGULARLY.
- DEPENDING ON THE SIZE OF THE COMPANY, THE MANAGER MAY ALSO BE
RESPONSIBLE FOR THE PAYROLL FUNCTION INCLUDING TALLYING WORK HOURS, CALCULATING PAY,
PROCESSING CHECKS, AND TRACKING VACATION DAYS AND OTHER TIME OFF.
B.) COMMUNICATION – MAY BE ONE OF THE MOST IMPORTANT RESPONSIBILITIES OF A MANAGER TO
KEEP THE WORKPLACE RUNNING EFFICIENTLY. EMPLOYEES NEED TO KNOW THE MISSION AND GOALS
OF THE BUSINESS AND WHAT IS EXPECTED OF THEM TO ACHIEVE THOSE RESULTS. IN MEDIUM-SIZED
AND LARGE COMPANIES, A MANAGER SHOULD UNDERSTAND THE DIRECTIVES COMING FROM THE
UPPER MANAGEMENT AND MUST BE ABLE TO TRANSLATE THEM TO THE STAFF SO THAT THEY WILL BE
ALL ON THE RIGHT TRACK.
A MANAGER SHOULD ALSO TO RESOLVE CONFLICTS, MOTIVATE EMPLOYEES,
INTERACT WITH THE PUBLIC ON BEHALF OF THE COMPANY, AND PRESERVE CUSTOMER RELATIONS.

C.) TRAINING – HE/SHE SCHEDULES ORIENTATION OF NEW EMPLOYEES AND SUBSEQUENT TRAINING
TO PERFORM BETTER IN THEIR JOBS. HE/SHE MUST EVALUATE THEIR PROGRESS ON A REGULAR BASIS
TO DETERMINE WHETHER OR NOT ADDITIONAL TRAINING IS REQUIRED.
IT IS ALSO THE RESPONSIBILITY OF A MANAGER TO IDENTIFY WHO ARE CANDIDATES
FOR PROMOTIONS OR ADVANCED POSITIONS ON THE COMPANY AND SHOULD CREATE CAREER
GOALS AND PLANS TO ATTAIN THEM.
D.) ADMINISTRATIVE INVESTIGATION AND DISCIPLINE – IT IS THE JOB OF A MANAGER TO
INVESTIGATE ANY EMPLOYEE WHO VIOLATES COMPANY RULES AND DISCIPLINE WHEN
PROVEN GUILTY. DISCIPLINE MAY INCLUDE TERMINATION FROM EMPLOYMENT. HE/SHE MAY
ALSO TERMINATE EMPLOYEE, AFTER DUE PROCESS, WHO HABITUALLY FAILS TO PERFORM
UNDER THE KNOWN AND AGREED STANDARDS ESTABLISHED BY THE COMPANY.

E.) EMPLOYEE RELATIONS – THE MAINTENANCE OF GOOD EMPLOYER-EMPLOYEE RELATIONS IS

A VERY IMPORTANT DUTY OF A MANAGER. POOR RELATIONS AFFECT MORALE OF THE
EMPLOYEES, PRODUCTIVITY, EFFICIENCY, AND TRIGGERS HOSTILITY TOWARD MANAGEMENT.
IT IS, THEREFORE, BAD FOR THE BUSINESS. HAPPY EMPLOYEES ARE PROVEN TO BE MOTIVATED
AND MORE PRODUCTIVE IN THE WORKPLACE.
F.) BUSINESS GROWTH AND SUSTAINABILITY – IT IS THE MANAGERS PRIMARY RESPONSIBILITY TO EN
SURE THE SUCCESS OF THE COMPANY. HIS/HER ACTION S SHOULD ALL BE GEARED TOWARD
BUSINESS GROWTH AND SUSTAINABILITY. MANAGERS ARE HIRED TO RUN DAILY OPERATIONS,
COACH EMPLOYEES, MAINTAIN QUALITY STANDARDS, AND ENSURE PRODUCTS OR SERVICES ARE
FULFILLING CUSTOMER’S NEEDS.
MANAGERS MUST CONSTANTLY REVIEW THE COMPANY’S FINANCIAL, BUDGETARY
AND PRODUCTION GOALS. IF THE COMPANY FALLS SHORT OF ITS GOALS UPON REVIEW THROUGH
THE APPLICATION OF THE MEASUREMENT YARDSTICKS, THE MANAGER HAS TO MAKE THE
NECESSARY ADJUSTMENTS TO GET BACK ON TRACK.
 THE ORGANIZATION AND ITS ENVIRONMENT
FIRST OPTION :
SOLE PROPRIETOR – A SINGLE PERSON WHO HOLDS THE ENTIRE OPERATION AS HIS PERSONAL
PROPERTY, MANAGING IT ON A –DAY-TO-DAY BASIS. MOST BUSINESS ARE OF THIS TYPE.
BASED FROM THE TEXT, STEPS IN STARTING UP A BUSINESS, A SOLE PROPRIETORSHIP ARE
ATTRACTIVE TO SMALL INVESTORS BECAUSE THEY ARE RELATIVELY EASY TO START UP. ON THE OTHER
HAND, SOLE PROPRIETORSHIPS CAN BE RISKY BECAUSE THERE IS NO SEPARATION BETWEEN THE
OWNER AND THE BUSINESS.
HERE ARE SOME OF THE ADVANTAGES:
1.FORMATION – LESS COMPLICATED IN PREPARATION OF DOCUMENTS AND CHEAPER COMPARED TO
STARTING A FORMAL CORPORATION. THE PROPRIETORSHIP CAN BE NAMED AFTER THE OWNER, OR
FICTITIOUS NAME CAN BE USED TO ENHANCE BUSINESS.
2.TAX BENEFITS – NO REQUIREMENTS TO FILE A SEPARATE BUSINESS REPORT. ONE WILL LIST BUSINESS
INFORMATION AND FIGURES WITHIN HIS/HER INDIVIDUAL TAX RETURN. THE BUSINESS WILL BE
DISADVANTAGES:
1. LIABILITY – THE BUSINESS OWNER WILL BE HELD DIRECTLY RESPONSIBLE FOR ANY LOSSES, DEBTS, OR
VIOLATIONS COMING FROM THE BUSINESS. FOR EXAMPLE, IF THE BUSINESS MUST PAY ANY DEBTS THESE WILL
SATISFIED FROM THE OWNER’S OWN PERSONAL FUNDS. THE OWNER COULD SUED FOR ANY UNLAWFUL
ACTS COMMITTED BY HIM/HER OR THE EMPLOYEES.
2. TAXES – WHILE THERE ARE MANY TAX BENEFITS TO SOLE PROPRIETORSHIPS, A MAIN DRAWBACK IS THAT THE
OWNER MUST PAY SELF-EMPLOYMENT TAXES.
3. LACK OF “CONTINUITY”-THE BUSINESS MAY DISCONTINUE IF THE OWNER BECOMES DECEASED OR
INCAPACITATED. SINCE THE BUSINESS AND THE OWNER ARE TREATED AS ONE AND THE SAME, UPON THE
OWNER’ DEATH, THE BUSINESS MAY BE LIQUIDATED AND BECOMES PART OF THE PERSONAL OWNER’S
PERSONAL ESTATE, TO BE DISTRIBUTED TO BENEFICIARIES. HOWEVER THIS CAN RESULT IN HEAVY TAX
CONSEQUENCES ON BENEFICIARIES DUE TO INHERITANCE TAXES AND ESTATE TAXES.
4. DIFFICULTY IN RAISING CAPITAL– GENERATING THE CAPITAL OR THE INITIAL FUNDS IS USUALLY PROVIDED BY
THE OWNER. SOLE PROPRIETORSHIPS DO NOT ISSUE STOCKS OR OTHER MONEY GENERATING INVESTMENTS
UNLIKE CORPORATIONS.
SECOND OPTION:

PARTNERSHIP IS A SINGLE BUSINESS WITH TWO OR MORE PEOPLE SHARING ITS

OWNERSHIP. EACH PARTNER CONTRIBUTES TO ALL ASPECTS OF THE BUSINESS,
INCLUDING MONEY, PROPERTY, LABOR OR SKILL. IN RETURN, EACH PARTNER SHARES IN
THE PROFITS AND LOSSES OF THE BUSINESS.
SINCE PARTNERSHIP IS A TYPE OF BUSINESS THAT REQUIRES MORE THAN ONE
PERSON IN THE DECISION-MAKING PROCESS, IT’S IMPORTANT THAT THE POTENTIAL
BUSINESS PARTNERS DISCUSS A WIDE VARIETY OF ISSUES UP FRONT AND DEVELOP A
LEGAL PARTNERSHIP AGREEMENT. THIS AGREEMENT SHOULD DOCUMENT HOW FUTURE
BUSINESS DECISIONS WILL BE MADE SUCH AS HOW THE BUSINESS PARTNERS WILL
DIVIDE PROFITS, RESOLVE DIFFERENCES IN DECISION-MAKING, CHANGE OF
OWNERSHIP(BRING IN NEW PARTNERS OR BUY CURRENT PARTNERS), AND HOW TO
DISSOLVE PARTNERSHIP.
ADVANTAGES:
EASY AND INEXPENSIVE- PARTNERS ARE GENERALLY AN INEXPENSIVE AND EASILY
FORMED TYPE OF BUSINESS STRUCTURE. THE MAJORITY OF TIME SPENT
STARTING A PARTNERSHIP OFTEN FOCUSES ON DEVELOPING THE PARTNERSHIP
AGREEMENT BETWEEN OR AMONG FEW PEOPLE AND ITS SHARED OWNERSHIP
WILL EXPRESS.
SHARED FINANCIAL COMMITMENT- EACH BUSINESS PARTNER HAS EQUALLY
INVESTED IN THE SUCCESS OF THE BUSINESS. PARTNERSHIP HAVE THE
ADVANTAGE OF POOLING RESOURCES TO OBTAIN SIGNIFICANT CAPITAL. THIS
COULD BE BENEFICIAL IN TERMS OF SECURING CREDIT, OR BY SIMPLY DOUBLING
YOUR INITIAL MONEY OR CAPITA IN THE BUSINESS.
COMPLEMENTARY SKILLS- A GOOD PARTNERSHIP SHOULD BE ABLE TO UTILIZE
THE STRENGTHS, RESOURCES, AND EXPERTISE OF EACH PARTNER.
PARTNERSHIP INCENTIVES FOR EMPLOYEES-PARTNERSHIP HAVE AN EMPLOYMENT ADVANTAGE
OVER OTHER ENTITIES IF THEY OFFER EMPLOYEES THE OPPORTUNITY TO BECOME A PARTNER.
PARTNERSHIP INCENTIVES OFTEN ATTRACT HIGHLY MOTIVATED AND QUALIFIED EMPLOYEES.
• PARTNERSHIP ARRANGEMENTS ARE MOSTLY FORMED IN LAW, AUDITING, AND SOME
CONSULTANCY FIRMS.

DISADVANTAGES:
JOINT AND INDIVIDUAL LIABILITY- SIMILAR TO SOLE PROPRIETORSHIPS, PARTNERSHIPS RETAIN
FULL, SHARED LIABILITY AMONG THE OWNERS. PARTNERS ARE NOT LIABLE FOR THEIR OWN
ACTIONS, BUT ALSO FOR THE BUSINESS DEBTS, AND DECISIONS MADE BY OTHER PARTNERS. IN
ADDITION, THE PERSONAL ASSETS OF ALL PARTNERS CAN BE USED TO SATISFY THE
PARTNERSHIP’S DEBT.
DISAGREEMENT AMONG PARTNERS-WITH MULTIPLE PARTNERS IN THE BUSINESS,
THERE CAN DISAGREEMENTS LIKE MANAGEMENT STYLES, SALARY SCHEMES, ETC.
THAT IS WHY IT IS IMPORTANT TO CONSULT EACH OTHER ON ALL DECISION
MAKING TO COMPROMISE AND RESOLVE DISPUTES.
SHARED PROFITS- BECAUSE PARTNERSHIPS ARE JOINTLY OWNED, EACH PARTNER
SHARE THE SUCCESSES AND PROFITS OF THEIR BUSINESS WITH THE OTHER
PARTNERS. AN UNEQUAL CONTRIBUTION OF TIME, EFFORT, OR RESOURCES CAN
CAUSE DISPUTE AMONG PARTNERS.
 THIRD OPTION: CORPORATION
OFTEN TIMES, BUSINESS OWNERS OPT TO FORM CORPORATIONS TO PROTECT THEMSELVES
AGAINST FINANCIAL AND LEGAL LIABILITIES. A CORPORATION IS A TYPE OF BUSINESS THAT KEEPS THE
DEALINGS, ASSETS, AND BANK ACCOUNTS SEPARATE FROM HIS HER PERSONAL ASSETS.
THIS IS ESPECIALLY TRUE IF A BUSINESS OWNER NEEDS MORE MONEY TO FUND THE BUSINESS
EXPANSION. HE/SHE WANTS TO TAKE BANK LOAN BUT ASSETS ARE NOT ENOUGH TO MORTGAGE.
BESIDES, IF QUALIFIED TO GET A LOAN, HE/SHE MAY ABLE TO PAY THE LOAN AND WILL LOSE THE
MORTGAGE PROPERTIES IF THEY ARE FORECLOSED. IN SHORT, THEY WANTS TO PROTECT THEIR OWN
PERSONAL WEALTH. SO, THEY MAY DECIDE TO LOOK FOR INVESTORS.
THE INVESTORS ARE ONLY SHAREHOLDERS OF THE CORPORATION. HOWEVER, INVESTORS WILL
ELECT A SET BOARD OF DIRECTORS RESPONSIBLE FOR THE DIFFERENT POLICIES AND VISION FOR THE
CORPORATION. THE BOARD OF DIRECTORS WILL ALSO APPOINT CORPORATE OFFICERS FOR DAY-TO-
DAY OPERATIONS OF THE CORPORATION. USUALLY A CORPORATION HAS THE FOLLOWING KEY
PERSONNEL: A PRESIDENT, A SECRETARY, AND A TREASURER, ALTHOUGH THERE CAN BE OTHER OFFICERS,
SUCH AS VICE PRESIDENTS.
ADVANTAGES:
SEPARATE LEGAL PERSONALITY- A CORPORATION ONCE REGISTERED WITH THE
SECURITIES AND EXCHANGE COMMISSION AND ISSUED A CERTIFICATE, HAS ACQUIRED
A LEGAL PERSONALITY SEPARATE AND DISTINCT FROM ITS STOCKHOLDERS. IT CAN SUE
OR BE SUED. SHAREHOLDERS OF A CORPORATION ARE NOT LIABLE TO OBLIGATIONS
THE CORPORATIONS CONTRACTS INTO LIKE DEBTS, NEGLIGENCE OR WRONGFUL
ACTS OF THE CORPORATION. THE MAXIMUM LOST OF MONEY A SHAREHOLDER CAN
INCUR IS JUST THE AMOUNT OF HIS/HER INVESTMENT IN THE CORPORATION – THE
VALUE OF HIS HER STOCK.
EASES OF RAISING FUNDS- IN A CORPORATION, IT IS EASY TO RAISE ADDITIONAL
FUNDS SINCE IT HAS THE OPTION TO SELL SHARES OF THE CORPORATION.
CONTINUITY- IT CAN HAVE A PERPETUAL EXISTENCE, WHICH MEANS IT CAN OUTLIVE
ITS OWNER BECAUSE IT IS A PERSON IN THE EYES OF THE LAW. THIS MEANS INVESTORS
EASE OF TRANSFER TO OWNERSHIP- IT’S EASY TO TRANSFER OWNERSHIP INTERESTS IN
A CORPORATION. THE BOARD OF DIRECTORS CAN AUTHORIZE THE ISSUE OF SHARES OF
STOCK IN EXCHANGE FOR INVESTORS CAPITAL INFUSION INTO A COMPANY.
CREDIBILITY- A BUSINESS IN A INCORPORATION OR ‘INC’. SIGNS AFTER ITS NAME
OFTEN SOUNDS MORE CREDIBLE IN THE BUSINESS CONTEXT. ONE MOST LIKE ATTRACTS
MORE PARTNERS, CUSTOMERS AND ATTENTION FROM THE COMMUNITY.
DISADVANTAGES:
MORE TIME AND MONEY SPENT IN ORGANIZING- IN A CORPORATION, IT WILL
REQUIRE MORE TIME AND MONEY FORMING OTHER SOLE AND PARTNERSHIP BUSINESS
TYPE.
MORE PAPERWORK- SEVERAL DOCUMENTATIONS AND PAPER WORKS REQUIRED BY
GOVERNMENT AGENCIES MONITOR CORPORATIONS. THE STATE ALSO REQUIRES FILING
OF ANNUAL REPORTS. AND THEY HAVE TO FILE INCOME TAX RETURNS AS WELL.
HIGHER TAX- CORPORATE PROFITS MAY BE SUBJECT TO HIGHER OVERALL TAXES
SINCE THE GOVERNMENT IMPOSES TAXES ON PROFITS AT THE CORPORATE
LEVEL AND AGAIN AT THE INDIVIDUAL LEVEL, IF SUCH PROFITS ARE DISTRIBUTED
TO THE SHAREHOLDERS.
MORE COSTLY – THERE ARE REQUIRED NUMBER OF BOARD MEETINGS AND
ANNUAL SHAREHOLDER MEETINGS/SESSIONS. ALL OF THESE
MEETINGS/SESSIONS WILL INCUR EXPENSES. MOST CORPORATIONS WILL
RETAIN THE SERVICES OF AN ATTORNEY AND ACCOUNTANT TO HELP THEM WITH
DRAFTING LEGAL DOCUMENTS AND CORPORATION FILINGS AND MAINTAINING
COMPLIANCE WITH COMPLEX CORPORATION LAW AND REGULATIONS.
 NATURE AND ROLE OF A FIRM
A. HUMAN RESOURCE MANAGEMENT- HUMAN RESOURCE MANAGEMENT IS THE ENTIRE
SPECTRUM OF MANAGEMENT OF PEOPLE THAT SERVES TO MAXIMIZE THEIR
PERFORMANCE IN ORDER TO MEET THE ORGANIZATION’S STRATEGIC OBJECTIVES. IT
COVERS AMONG OTHERS, THE MAJOR FUNCTIONS OF RECRUITMENT, SELECTION AND
PLACEMENT, TRAINING AND DEVELOPMENT, EMPLOYEE, RELATIONS, AND
COMPENSATIONAND BEBEFITSADMINISTRATION.
B. MARKETING MANAGEMENT- ACCORDING TO BUSINESS CASE STUDIES, “MARKEITN IS
THE MANAGEMENT PROCESS RESPONSIBLE FOR IDENTIFYING, ANTICIPATING, AND
SATISFYING CONSUMER REQUIREMENTS PROFITABLY.”
C. OPERATIONS MANAGEMENT- “OPERATIONS MANAGEMENT INVOLVES OVERSEEING,
DESIGNING, CONTROLLING THE PROCESS OF PRODUCTION, AND REDESIGNING
BUSINESS OPERATIONS IN THE PRODUCTION OF GOOD AND SERVICES”.
 - IN MANUFACTURING SETTING, THE COMPANY HAS TO ENSURE THE DESIGN OF
EFFECTIVE AND EFFICIENT PRODUCTION PROCESS, TIMELY ACQUISITION OF RAW
MATERIALS NEEDED FOR PRODUCTION, DEPLOYMENT OR ADEQUATE NUMBER OF TRAINED
WORKERS, AND PROPER MAINTENANCE OF EQUIPMENT AND OTHER RESOURCES
REQUIRED.
- IN A SERVICE ORIENTED SETTING, ON THE OTHER HAND, THE COMPANY HAS TO
ENSURE THE AVAILABILITY OF TRAINED CUSTOMER-ORIENTED PERSONNEL, PRESENCE OF
CUSTOMER SERVICE LOCATIONS, AND EXCELLENT PROVISIONS OF CUSTOMER SERVICES.
D. FINANCIAL MANAGEMENT- THE GOAL OF ANY FINANCE FUNCTIONS IS TO ACHIEVE
THREE BENEFITS: BUSINESS SUPPORT SERVICE, LOWEST COSTS, AND EFFECTIVE CONTROL
OF ENVIRONMENT. TOWARD THE END, THE FIRM HAS TO ENSURE THAT IT SETS UP
EFFECTIVE AND EFFICIENT INTERNAL PROCESS, DESIGNED TO ACHIEVE ALL THESE, WHILE
MAINTAINING THE VALUES OF BEING VISION-ORIENTED, GROWTH-FOCUSED, AND RISK
TAKING.
E. MATERIAL AND PROCUREMENT MANAGEMENT- IT IS THE RESPONSIBILITY OF THE FIRM
TO ENSURE THAT IT MANAGES THE PROCUREMENT PROCESS AND THE SUPPLY BASE
EFFECTIVELY AND EFFICIENTLY. THIS INCLUDES BUYING HIGH QUALITY PRODUCTS AND
SERVICES AT THE RIGHT PRICE FROM THE RIGHT, RELIABLE SOURCE, BASED ON THE RIGHT
SPECIFICATIONS, IN THE RIGHT QUALITY FOR DELIVERY, AT THE RIGHT TIME TO THE RIGHT
CUSTOMERS.
F. OFFICE MANAGEMENT-ACCORDING TO THE BUSINESSDICTIONARY.COM “OFFICE
MANAGEMENT INVOLVES THE DESIGN, IMPLEMENTATION, EVALUATION AND
MAINTENANCE OF THE PROCESS OF WORK WITHIN AN ORGANIZATION, IN ORDER TO
MAINTAIN AND IMPROVE EFFICIENCY AND PRODUCTIVITY.” IT IS THE RESPONSIBILITY OF
THE FIRM TO MONITOR AND REVIEW SYSTEMS THAT WOULD YIELD EXPECTED OUTCOMES
LIKE IMPROVED TURNOVER, OUTPUT, SALES ETC. IT IS LIKE THE BACKROOM SUPPORT THAT
WILL ENSURE THE EFFECTIVE DISCHARGE OF FUNCTIONS OF REVENUE GENERATING UNITS
OF THE ORGANIZATION.
G. INFORMATION AND COMMUNICATION TECHNOLOGY MANAGEMENT- THIS
INCLUDES THE RELATED FORM OF COMMUNICATION APPLICATION THAT ENCOMPASSES
RADIO, TELEVISION, CELLULAR PHONES, COMPUTER AND NETWORK HARDWARE AND
SOFTWARE, SATELLITE SYSTEM, AND SO ON, AS WELL AS THE VARIOUS SERVICES AND
APPLICATIONS ASSOCIATED WITH THEM SUCH AS VIDEOCONFERENCING AND DISTANCE
LEARNING. IT IS THE RESPONSIBILITY OF THE FIRM TO PROVIDE THE NECESSARY
INFORMATION AND COMMUNICATION FACILITIES TO ALL ITS UNITS IN ORDER TO ENSURE
THAT THEY ARE ABLE TO PERFORM FUNCTIONS MORE EFFECTIVELY AND EFFICIENTLY.
 ORGANIZATION STRUCTURE

LINE STRUCTURE – A BASIC ORGANIZATION FRAMEWORK. A LINE ORGANIZATION HAS

ONLY DIRECT, VERTICAL RELATIONSHIPS BETWEEN DIFFERENT LEVELS IN THE FIRM. TAKE
NOTE THAT THERE ARE LINE DEPARTMENTS INSIDE A LINE STRUCTURE.
 CEO

MANAGER MANAGER
(PRODUCTIONS) (MARKETING)

FOREMAN FOREMAN SALES OFFICER SALES OFFICER

(FABRICATION) (ASSEMBLY) (A) (B)

WORKERS WORKERS SALESPERSONS SALESPERSONS

ADVANTAGES:
1. TENDS TO SIMPLIFY AND CLARIFY AUTHORITY
2. PROMOTES RESPONSIBILITY AND ACCOUNTABILITY RELATIONSHIPS
3. PRECISE AND SIMPLE TO UNDERSTAND

DISADVANTAGES:
1. NEGLECTS SPECIALISTS IN PLANNING
2. OVERLOOADS TASKS ON KEY PERSONNEL
3. IT BECOMES INEFFECTIVE AS THE ORGANIZATION BECOMES
BIGGER.
4. MANAGERS BECOME EXPERTS IN TO MANY FIELDS OF AREA.
5. TENDENCY TO BECOME OVERLY DEPENDENT ON THE FEW PEOPLE
WHO ARE PERFORMING NUMEROUS JOBS.
 A LINE FUNCTION, AS DISCUSSED, IS A POSITION THAT HAS A DIRECT
CHAIN OF COMMAND THAT IS RESPONSIBLE FOR THE ACHIEVEMENT OF AN
ORGANIZATION’S GOAL.
A STAFF FUNCTION, ON THE OTHER HAND, IS INTENDED TO PROVIDE
EXPERTISE, ADVICE, AND SUPPORT FOR THE LINE POSITION. AN EXAMPLE OF
STAFF FUNCTIONS ARE HR, QUALITY ASSURANCE, AND CORPORATE PLANNING.
THERE ARE, HOWEVER, SEVERAL VARIATIONS OF ORGANIZATIONAL
STRUCTURES. THE THREE COMMON TYPES ARE: FUNCTIONAL, DIVISIONAL AND
MATRIX STRUCTURE.
 FUNCTIONAL
IS A SETUP WHEREIN EACH DEPARTMENT IS GROUPED ACCORDING TO HIS
FUNCTION OR PURPOSE. FOR EXAMPLE, THERE MAY BE MARKETING DEPARTMENT,
SALES DEPARTMENT AND A PRODUCTION DEPARTMENT. THE FUNCTIONAL
STRUCTURE WORKS VERY WELL FOR A SMALL BUSINESS IN WHICH EACH
DEPARTMENT CAN SUPPORT ITSELF BY RELYING ON THE TALENT AND
KNOWLEDGE OF ITS WORKER. HOWEVER, ONE CAN DRAWBACKS IN A
FUNCTIONAL STRUCTURE IS THE RESTRICTION IN COORDINATION AND
COMMUNICATION BETWEEN AND AMONG OTHER DEPARTMENTS BY THE
BOUNDARIES OF THE ORGANIZATION IN WHICH HAVING A VARIOUS
DEPARTMENT WORKING SEPARATELY AND INDEPENDENTLY.
 SAMPLE OF FUNCTIONAL CHART

PRESIDENT/
CEO

MARKETING SALES PRODUCTION

DEPARTMENT DEPARTMENT DEPARTMENT
 DIVISIONAL
DIVISIONAL STRUCTURE IS ANOTHER TYPE OF ORGANIZATION SRTUCTURE.
THIS IS TYPICALLY USED IN LARGER COMPANIES OR ORGANIZATIONS WITH
SEVERAL BRANCHES OR OUTLETS THAT OPERATE IN A WIDE GEOGRAPHIC AREA
OR THE SEPARATE SMALLER ORGANIZATIONS WITHIN THE UMBRELLA GROUP TO
COVER DIFFERENT TYPES OF PRODUCTS OR MARKET AREAS.
THIS TYPE OF STRUCTURE PROVIDES SIGNIFICANT BENEFIT WHICH
ADRESSES NEEDS MORE RAPIDLY AND MORE SPECIFICALLY; HOWEVER,
COMMUNICATION IS INHIBITED BECAUSE EMPLOYEES IN DIFFERENT DIVISIONS
ARE NOT WORKING TOGETHER. ALSO BE COSTLY BECAUSE OF ITS SIZE AND
SCOPE.
DIVISIONAL

XYZ
COMPANY

LUZON VISAYAS MINDANAO

DIVISION DIVISION DIVISION
 MATRIX
A MATRIX STRUCTURE IS A HYBRID OF TWO STRUCTURES NAMELY,
DIVISIONAL AND FUCNTIONAL STRUCTURE. TYPICALLY USED IN LARGE
MULTINATIONAL COMPANIES, THE MATRIX STRUCTURE ALLOWS FOR THE
BENEFITS OF FUNCTIONAL AND DIVISIONAL STRUCTURES TO EXIST IN ONE
ORGANIZATION. HOWEVER, THIS CAN CREATE POWER STRUGGLES BECAUSE
MOST AREAS OF THE COMPANY WILL HAVE DUAL MANAGEMENT – A
FUNCTIONAL MANAGER AND A PRODUCT OR DIVISIONAL MANAGER WORKING
AT THE SAME LEVEL AND COVERING SOME OF THE SAME MANAGERIAL
TERRITORY.