CMPM Prelims

• Management Team:

  • The driving force behind every organization
• Organization:

  • A group of individuals cooperating willingly and effectively for a common goal
  • The foundation of administration
  • Structured to promote better management
  • Success of the enterprise is determined by the performance of the people in positions, not just the organizational design
• Management Structure:

  • A vehicle used to attain the objectives and goals of an institution
  • Must be realistic and responsive to the need for change
• Structural Organization:

  • Formal arrangements established to coordinate all activities to implement a given strategy
• Structural Elements of an Organization:

  1. Men: Different members of the organization from top to bottom

  2. Materials: Necessary materials for functions or objectives

  3. Machine: Tools necessary for producing desired output

  4. Method: Procedures and ways used in actions

  5. Money: Financial resources of the organization
• Major Elements of Organizational Structures:

  1. Distribution of Functions: Functions to be performed, groupings, and task relationships

  2. Vertical and Horizontal Authority Relationships: Who has the authority to do what

  3. Communication and Decision Processes: Formal decision-making processes

  4. Policies: Established decisions, rules, or guidelines
• Common Failure of Management:

  • Failure to adapt organizational structures, policies, and procedures to the growth in size and complexity of the enterprise
• Principles of Good Organization:

  1. Principles of Objective:

  • Clear and complete definition of objectives
  • Objective serves as a guide to future planning and action

  2. Analysis:

  • Building an organization based on full knowledge of business requirements
  • Study to ensure projects can be completed on time and within budget

  3. Simplicity:

  • Simplest organization to attain objectives is considered the best
  • Eliminate unnecessary activities and handle retained ones in the simplest way

  4. Functionalism:

  • Build the organization around main functions of the business, not individuals
  • Division of tasks, especially in large companies

  5. Departmentalization:

  • Departmentalize operations for smoother flow

  6. Centralization of Authority and Responsibility:

  • Centralized executive control for fixed authority and responsibility

  7. Limited Span of Control:

  • Number of subordinates an executive can effectively manage
• Business:

  • An organization of people with varied skills using capital and talents to produce goods or services for profit
  • Coordination is essential for effective human activities
• Management:

  1. Management is a process:

  • Directing and facilitating the work of people organized for a common purpose
  • Combining efforts and resources to achieve a desired objective

  2. Management is a function:

  • Getting things done through coordination
• Management is the process of combining the efforts and resources of individuals with a common interest to achieve a desired objective
• Management is a function that involves getting things done through the efforts of others
• Management is the application of authority and the assumption of responsibility
• Management is an art, specifically the art of handling people
• Properly applied management gives individuals in the same organization the feeling of security, recognition, opportunity, and belonging
• Management needs to be followed up by effort to function effectively
• Management to be effective must be SYSTEMATIC:

  • Things can be done better by means of a plan of action
  • Good decisions and actions are based on the systematic application of sound principles, complete and reliable facts, and good practices
  • When management is systematic, there is no room for personalities, prejudice, and unfair judgment
• Management to be successful must be SCIENTIFIC:

  • Scientific management has advanced mankind more than any other single factor
  • By applying the scientific method to the study and analysis of job operations, the best-known methods of performing operations are discovered
  • Men will keep experimenting and analyzing to find the best way of doing a job and increasing production without increasing work time and operating cost
• Management must be HUMANISTIC:

  • Human beings, whether managers or workers, cannot be easily regulated to a predetermined point of accomplishment
  • Human beings should be led by goals they accept as justifiable, worthy, and fair to all concerned
  • Good human relations "pays off" through cooperation and coordination leading towards greater accomplishment
• The manager as an executive is the most difficult and has the highest degree of responsibility
• An effective manager must have qualities such as studying, analyzing, and dissecting the job, delegating administrative details, sharing credit, training and developing subordinates, controlling and planning time, and instituting controls for effective performance
• Executive Functions:

  • Planning: making things happen that would otherwise not occur, an intellectual process, economic and essential control necessary due to uncertainty and change
  • Organizing: a good organizational structure is necessary for good performance
  • Directing: guiding and overseeing subordinates, involves leadership and coordination
  • Controlling: the process by which an executive gets the performance of subordinates to correspond to chosen plans, evaluation of results, comparison with standards, and taking corrective measures
• Policies and Procedures:

  • Policies guide or channel the thinking and action of members of an organization
  • Procedures reflect policies, involve the selection of a course of action, and detail how a certain activity must be accomplished
• Management Team:

  • The driving force behind every organization
• Organization:

  • A group of individuals cooperating willingly and effectively for a common goal
  • The foundation of administration
  • Structured to promote better management
  • Success of the enterprise is determined by the performance of the people in positions, not just the organizational design
• Management Structure:

  • A vehicle used to attain the objectives and goals of an institution
  • Must be realistic and responsive to the need for change
• Structural Organization:

  • Formal arrangements established to coordinate all activities to implement a given strategy
• Structural Elements of an Organization:

  1. Men: Different members of the organization from top to bottom

  2. Materials: Necessary for the distribution of functions or in the attainment of objectives

  3. Machine: Tools necessary in producing desired output

  4. Method: Procedures and ways used in the course of actions

  5. Money: Financial resources of the organization
• Major Elements of Organizational Structures:

  1. Distribution of Functions: Functions to be performed, groupings of functions, and task relationships among functions

  2. Vertical and Horizontal Authority Relationships: Who has the authority to do what

  3. Communication and Decision Processes: Manner in which formal decisions are made

  4. Policies: Decisions, rules, or guidelines established
• Common Failure of Management:

  • Failure to adapt organizational structures, policies, and procedures to the growth in size and complexity of the enterprise
• Principles of Good Organization:

  1. Principles of Objective:

  • Clear and complete definition of the objective
  • Objective serves as a guide to future planning and action

  2. Analysis:

  • Building an organization through full knowledge of business requirements
  • Study to ensure project completion at the right time and price

  3. Simplicity:

  • Simplest organization to attain the objective is considered the best
  • Eliminate unnecessary activities and handle retained ones in the simplest way

  4. Functionalism:

  • Organization built around main functions of the business, not individuals
  • Division of tasks, especially in large companies

  5. Departmentalization:

  • Departmentalization in big organizations for smoother flow of operations

  6. Centralization of Authority and Responsibility:

  • Centralized executive control or command authority for fixed authority and responsibility

  7. Limited Span of Control:

  • Number of subordinates an executive can manage effectively
• Organization and Business:

  • An organization of people with varied skills using capital and talents to produce goods or services
  • Coordination is essential for effective human activities
• Management:

  1. Management is a process:

  • Directing and facilitating the work of people organized for a common purpose
  • Combining efforts and resources of individuals to achieve a desired objective

  2. Management is a function:

  • Getting things done through directing and facilitating organized people
• Management is the process of combining the efforts and resources of individuals with a common interest to achieve a desired objective
• Management is a function that involves getting things done through the efforts of others
• Management is the application of authority and the assumption of responsibility
• Management is an art, specifically the art of handling people
• Properly applied management gives individuals in the same organization the feeling of security, recognition, opportunity, and belonging
• Management must be systematic to be effective:

  • Things can be done better by means of a plan of action
  • Good decisions and actions are based on the systematic application of sound principles, complete and reliable facts, and good practices
  • When management is systematic, there is no room for personalities, prejudice, and unfair judgment
• Management must be successful and scientific:

  • Scientific management has advanced mankind more than any other single factor
  • By applying the scientific method to study and analyze job operations, the best methods of performing operations are discovered
  • Continuous experimentation and analysis lead to better methods of increasing production without increasing work time and operating costs