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Line Structure- is a basic

organization framework.
 It has a direct vertical
relationships between
different levels in the firm. (
refer to page 27).
Line function – is a position that has a
direct chain of command that is responsible
for the achievement of an organization’s goals.

Staff function- on the other hand, is

intended to provide expertise, advice, and
support for the line positions. Ex. HR, Quality
Assurance, and Corporate planning.
2. Functional- It is a set up
wherein each department of the
organization is group according
to its function or purpose.
Ex. Marketing department, sales
department, production
3. Divisional Structure- this is
typically used in larger companies or
organizations with several branches
or outlets that operate in a wide
geographic area that have separate
smaller organizations within the
umbrella group to cover different
types of products.
4. Matrix Structure- is a hybrid of two
structures namely, divisional and functional
 This can create a power struggles because
most areas of the company will have a dual
management- a functional manager and a
product or divisional manager working at
the same level.
1.Formal Organizations- are
organization structures usually
represented with organizational
charts and with position
 There is a clear reporting
relationship that the manager is aware
2. Informal organization- is a set of
evolving relationships and patterns of
human interaction within an organization
that actually do exist but are not officially
 informal leaders who sometimes
exert influence to organizational
Stage 1. Chaos(Fire-Fighting
 Crisis/ Short –term focus
 Lack of clear direction and goals
 Shifting priorities
 Unclear policies and procedures
Stage II: Stability ( Back to the Basics)
 Clarity of goals and direction
 Consistency in priorities
 Well-defined policies and
 Agreement on roles and
 Basic management process rewarded
and practiced
Stage III- High Performance ( Outstanding,
Sustainable Results)
 Clear statement of mission that creates a
sense of esprit de corp.
 Well-defined values which result in a
distinctive culture. Respect for people.
 Good communication
 High and active involvement and
empowerment of people.
PESTEL stands for Political, Economic, Social,
Technological, Environment and Legal
What are the factors that affect the
 Wage order increases
 Government Policies
 Shareholder/Stakeholder Needs and Demand
 Lobbying/Pressure Group (Union-related
 Domestic Economy (Economic crisis can
result to belt tightening)
 Global economy
 Taxation Issues- required compliance
 Exchange Rate
 Inflation- impact every employee in terms of
net take home pay or cost of money.
 Media Views ( that company is not taking care
of its employees)
 Company/ Technology Image (Company
 Education/University Offerings(caliber of new
hires and workforce.
 Generation of learners (need for appropriate
and effective learning
 War for Talents (caliber of workforce)
 Technology development(learning
management system)
 Competing Technology development
 Maturity of Technology(need to upgrade and
introduce new methods.
 Waste Removal/ Recycling ( waste disposal
practices or systems
 Environmental Issues
 Environmental Regulations
(required compliance)
 Ecological (CSR)
 Current and Future
 Regulatory Body and Processes
 Employment Law
 Labor cases filed
Stage I. Goal-Setting Process (Planning)
- is the first stage of the management
Four Activities/ Steps involved :
A. Synthesizing information
- the manager engages in DATA
GATHERING. If his or 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 examines the scenario carefully and
looks at the business in its entirety-
-the nature of business,
-the kind of product or service it will offer,
-its market demand,
-competition, etc.
 Take off point to make a conclusion if the
business is worth starting.
B. Formulating Alternatives
 Through effective data gathering and
synthesis, the manager arrives at a
decision on whether or not to pursue
or not the business.
 Comes up with alternatives, or even a
Plan A and Plan C, in case Plan A does
not work well.
C. Deciding on Courses of Action
( With Three possible businesses such as boiled
corn, sauteed peanuts or cooking banana cue).

D. Establishing Goals
-choose among the three to finally pursue,
- set his goal or “Operating Objective”. This
means setting daily target or revenues from sales
within a certain level of budget for expenses, in
order for him to arrive at an estimated net profit
at the end of the day.
Meaning of the word Vision
- it is a commonly shared picture of what
the organization wants and is committed to
become sometime in the future.
- It is the guiding and motivating compass
of the organization.
- as the state in the future of what the
organization’s services, customers,
stakeholders, core competencies, processes,
and structure.
Example of Vision:
“We are committed to being
conscious of our values both
individually and as a team. To be
healthy and promote health. To be
honest with our patients and with
one another… and to enjoy our
- Itis an enduring statement of
purpose of an organization’s
existence that distinguishes itself
from others. It answers the
-Who are we?
- Why do we exist?
“ We are a professional group providing
services and solutions to help our
clients achieve their goals and
objectives. We have a deliberate bias
in introducing improvements in the
context of a well-planned and
managed change”.- Management
Consulting outfit.
- Are fundamental and shared beliefs that will
provide the organization’s behavior in
meeting objectives and in dealing with
- - are the organization’s moral compass.
- - They answer the question:
“ To fulfil our mission, we cherish
and nurture values of : Integrity
and reliability , professional
competence and experience,
understanding of people, creative
imagination, and hands-on
problem-solving “ – A Change
Management Consulting Firm.