2. PURPOSES OF ORGANIZING
Divides work to be done into specific jobs and
Assigns task and responsibilities associated with
Coordinates diverse organizational task
Clusters jobs into units
Establishes relationships among individuals, groups, and
Establishes formal lines of authority
Allocates and deploys organizational resources.
3. UNITY OF COMMAND
The principle that a subordinate should have one and
only one superior to whom he or she is directly
The rights inherent in a managerial position to give
orders and expect them to be obeyed.
An obligation to perform assigned activities.
4. LINE AUTHORITY
The authority that entitles a manager to direct the work of a subordinate.
CHAIN OF COMMAND
The flow of authority from the top to the bottom of an organization.
Authority given to individuals who support, assist, and advise others who have
The capacity to influence decisions.
SPAN OF CONTROL
The number of subordinates a manager can supervise efficiently and effectively.
A managerial approach in which employees are given substantial authority and
say to make decisions on their own.
The process of grouping individuals into separate units or departments
to accomplish organizational goals.
Grouping activities by functions performed.
Grouping activities by product line.
Grouping activities on the basis of common customers.
Grouping activities on the basis of territory or geographic area.
Grouping activities on the basis of product or customer flow.
8. Staffing is defined as filling, and keeping filled,
positions in the organization structure. This is done
by identifying work-force requirements, inventorying
the people available, and recruiting, selecting,
placing, promoting, appraising, planning the careers
of, compensating, and training or otherwise
developing both candidates and current jobholders so
that they can accomplish their tasks effectively and
9. Managers often say that people are their most
important asset. Yet the “human assets” are
virtually never shown on the balance sheet as a
distinct category, although a great deal of
money is invested in the recruitment, selection,
and training of people.
10. SITUATIONAL FACTORS AFFECTING STAFFING
I. External Factors
• Level of Education
• Prevailing Attitudes towards work
in the society • Loss and regulations
• Economic conditions
• Supply and demand
II. Internal Factors
• Organizational goals
• Organization structure
• The kinds of people employed by the
enterprise • Demand and supply of the Managers within
• Reward system
• Existing policies
11. STEPS TO A SUCCESSFUL MANAGEMENT CAREER
• Think Laterally
• Stay Mobile
• Support your Boss
• Find a Mentor
• Don’t stay too long
• Stay visible
• Gain control of Organizational Resources
• Learn the Power Structure
• Present the Right Image
• Do Good Work
• Select your first job judiciously
12. Factors influencing Compensation and Benefits
• Size of company
• Employee’s tenure and performance
• Kind of job performed
• Kind of business
• Labour or capital-intensive
• Management philosophy
• Geographic location
• Company profitability
14. Leadership is defined as influence, that is, the art or
process of influencing people so that they will strive
willingly and enthusiastically toward the achievement
of group goals. Ideally, people should be encouraged
to develop not only willingness to work but also
willingness to work with zeal and confidence. Zeal is
ardor, earnestness, and intensity in the execution of
work; confidence reflects experience and technical
ability. Leaders act to help a group attain objectives
through the maximum application of its capabilities.
They do not stand behind a group to push and prod;
they place themselves before the group as they
facilitate progress and inspire the group to accomplish
15. The fundamental principle of leadership
Since people tend to follow those who, in their
view, offer them a means of satisfying their
own personal goals, the more managers
understand what motivates their subordinates
and how these motivations operate, and the
more they reflect this understanding in carrying
out their managerial actions, the more effective
they are likely to be as leaders.
16. MANAGERS VERSUS LEADERS
• Managers are appointed.
Their ability to influence is
based on the formal
authority inherent in their
• Managers should ideally
• Leaders may either be
appointed or emerge from
within a group.
• Not all Leaders are
17. SIX TRAITS THAT DIFFERENTIATE LEADERS
2. Desire to lead
3. Honesty and integrity
6. Job-relevant knowledge
18. Three leadership styles
Describes a leader who typically tends to centralize authority,
dictate work methods, make unilateral decisions, and limit
Describes a leader who tends to involve subordinates in decision
making, delegate authority, encourage participation in deciding
work methods and goals, and use feedback as an opportunity for
Describes a leader who generally gives the group complete
freedom to make decisions and complete the work in whatever
way it sees fit.
20. The managerial function of controlling is
the measurement and correction of
performance in order to make sure that
enterprise objectives and the plans devised
to attain them are being accomplished.
Planning and controlling are closely
21. Control techniques and systems are essentially
the same for cash, office procedures, morale,
product quality, and anything else. The basic
control process, wherever it is found and
whatever is being controlled, involves three
steps: (1) establishing standards (2) measuring
performance against these standards, and (3)
correcting variations from standards and plans.
Standards are, by definition, simply criteria of
22. The principle of critical-point control, one of
the more important control principles, states:
Effective control requires attention to those
factors critical to evaluating performance
23. Types of Critical-Point Standards
Standards tend to be of the following types:
(1) Physical standards
(2) Cost standards
(3) Capital standards
(4) Revenue standards
(5) Program standards
(6) Intangible standards
(7) Goals as standards, and
(8) Strategic plans as control points for strategic control.
24. Strategic Control comprises systematic
monitoring at strategic control points as
well as modifying the organization’s
strategy on the basis of this evaluation.
25. REQUIREMENTS FOR EFFECTIVE CONTROLS
• Tailoring Controls to Plans and Positions
• Tailoring Controls to Individual Managers
• Making Sure that Controls Point Up Exceptions at
• Seeking Objectivity of Controls
• Ensuring Flexibility of Controls
• Fitting the Control System to the Organizational Culture
• Achieving Economy of Controls
• Establishing Controls that Lead to Corrective Action
26. Budgeting is the formulation of plans for a given
future period in numerical terms. As such, budgets are
statements of anticipated results, either in financial
terms - as in revenue and expense and capital budgets -
or in non-financial terms - as in budgets of direct-
labour-hours, materials, physical sales volume, or units
27. THE PURPOSE OF BUDGETING
By stating plans in terms of numbers and breaking them
into parts that parallel the parts of an organization,
budgets correlate planning and allow authority to be
delegated without loss of control. In other words,
reducing plans to numbers forces a kind of orderliness
that permits the manager to see clearly what capital will
be spent by whom and where, and what expense,
revenue, or units of physical input or output the plans
28. TYPES OF BUDGETS
• Revenue and expense budgets
• Time, space, material, and product budgets.
• Capital expenditure budgets
• Cash budgets
29. Effective Budgetary Control
If budgetary controls are to work well, managers
must remember that budgets are designed only as
tools and not as replacements for managing, that
they have limitations, and that they must be
tailored to each job. Moreover, they are the
tools of all managers and not only of the budget
director or the controller.