Abm- applied economics, Lecture notes of Economics

Download Abm- applied economics and more Lecture notes Economics in PDF only on Docsity! 1 11 ABM – Specialized Subject 1 st Quarter – Module 1 Organization and Management Nature and Concept of Management 2 Organization and Management – Grade 11 Alternative Delivery Mode Quarter 1 – Module 1: Nature and Concept of Management First Edition, 2020 Republic Act 8293, section 176 states that: No copyright shall subsist in any work of the Government of the Philippines. However, prior approval of the government agency or office wherein the work is created shall be necessary for exploitation of such work for profit. Such agency or office may, among other things, impose as a condition the payment of royalties. Borrowed materials (i.e., songs, stories, poems, pictures, photos, brand names, trademarks, etc.) included in this module are owned by their respective copyright holders. Every effort has been exerted to locate and seek permission to use these materials from their respective copyright owners. The publisher and authors do not represent nor claim ownership over them. Published by the Department of Education Secretary: Leonor Magtolis Briones Undersecretary: Diosdado M. San Antonio Development Team of the Module Writers: Mamerto T. Goneda, MSIT, DIT(cand.) Isabel A. Gumaru, DBA Jupiter Q. Whiteside, MBA Manuel L. Hermosa, EdD Farida F. Tallud, DBM Ma. Cristina A. Labay, MM Ellaine I. Dela Cruz, DBA Clarabelle V. Dalimit, D Mark Vincent B. Emit, PhD Edba B, Waje, DEM Editors: Remylinda T. Soriano, EPS Illustrator: Writers Layout Artist: Writers Management Team : Malcolm S. Garma, Regional Director Name of Regional Director Genia V. Santos, CLMD Chief Name of CLMD Chief Dennis M. Mendoza, Regional EPS In Charge of LRMS Maria Magdalena M. Lim, CESO V, Schools Division Superintendent Aida H. Rondilla, CID Chief Lucky S. Carpio, EPS In Charge of LRMS Division ADM Coordinator Name of Division ADM Coordinator Printed in the Philippines by ________________________ Department of Education – National Capital Region Office Address: Telefax: E-mail Address: ____________________________________________ ____________________________________________ ___________________________________________ 5 What I Need to Know. This module was written for you to accomplish at home. It was carefully designed so that you can work at your own pace and allow self-discovery of the concept through activities that you will perform. Activities were also selected to allow independent learning which also aims to develop students’ reading comprehension skills through understanding written texts. After going through the module, you are expected to: 1. discuss the meaning and functions of management; 2. explain the various types of management theories; and 3. explain the functions, roles, and skills of a manager. What I Know….. I. TRUE or FALSE Directions: Before each statement, write TRUE if the statement is correct or FALSE if the statement is incorrect. _____________ 1) Management is goal-oriented when they achieve specific goals. ______________2) Management is a continuous process to operate as long as there is organized action for the achievement of group goals. ______________3) Management is universal that has an unessential element of every organized activity. _____________ 4) Management is situational that there is the best way of doing things and not to solve particular problems conditions and situations. _____________5) Management is multidisciplinary such as management techniques, principles, and theories. II. MULTIPLE CHOICE Directions: Choose the letter corresponding to the correct answer for each of the questions provided below. 1. Management is an essential element of every organized activity irrespective of the size or the type of the activity. a. Management is universal c. Management is goal-oriented b, Management is continuous process d. Management is multi-disciplinary 6 2. This is where you communicate potentially useful information to your colleagues and your team. a. Spokesperson b. Monitor c. Disseminator d. Negotiator 3. In which the ability to think and to conceptualize about abstract and complex situations. a. Inter-relationship skills b. Conceptual skills c. Technical skills d. Human skills 4. Which of the following has three common characteristics such as distinct purpose, composed of people, and develops some deliberate structure? a. Management b. Organization c. Organizing d. Directing 5. As manager, you create and control change within the organization. This means solving problems, generating new ideas, and implementing them. a. Conceptual skills b. Human skills c. Technical skills d. None of the above What is It Learning Module 1 Lesson 1 Lesson 2 – Nature and Concept of Management – Functions, Roles and Skills of a Manager Definition of Management  Refers to the act or bringing together the work activities to achieve the organization’s goals and objectives. Basically, it means teamwork.   It is essentials in any organization, leader-manager must realize the important of people working harmoniously with the aim of effectively reaching the target goals of the company. 7 Management defined by Management Guru’s:  "Management is a multi-purpose organ that manages business and manages managers and manages workers and work." Peter Drucker.   According to Mary Parker Follet, "Management is the art of getting things done through people." Mary Parker Follet.   According to Harold Koontz, “Management is an art of getting things done through and with the people in formally organized groups. It is an art of creating an environment in which people can perform and individuals and can co-operate towards attainment of group goals”. Characteristics and Nature of Management The salient features which highlight the nature of management are as follows: A. Management is goal oriented: management is not an end in itself. It is a means to achieve certain goals. Management has no justification to exist without goals. Management goals are called group goals or organizational goals. The basic goal of management is to ensure efficiency and economy in the utilization of human, physical and financial resources. The success of management is measured by the extent to which the established goals are achieved. Thus, the management is purposeful. B. Management is universal: Management is an essential element of every organized activity irrespective of the size or the type of the activity. C. Management is continuous process: The cycle of the management continues to operate as long as there is organized action for the achievement of group goals. Management is 5 an ongoing process and is also a never- ending process. Management is dynamic and the cycle is continues. D. Management is multi-disciplinary: Management techniques, principles and theories are drawn from other disciplines such as engineering, anthropology, sociology and psychology. It depends on wide knowledge and practice derived from various discipline. E. Management is intangible force: Management is evidenced by the results of its efforts through others. Management is unseen and invisible force. It can not be seen, but its presence can be felt in the form of results in very type of organization. F. Management is situational: There is no best way of doing things. To solve a particular problems conditions and situations must be taken into account. vii. Management is a system of authority: Management provides the direction of every activity of an organization. Management forms system of authority or a hierarchy of command to control the activities and give smooth direction. G. Management is both a science and an art: Science is a systematized body of knowledge based on certain principles that are generally applied. Scientific knowledge is observed through the process of critical and continuous observation and intelligent speculation. Accordingly, management as a science is based on principles instead of a traditional way of doing things in trial and error method. 10 Systems Approach Applied to an Organization: When systems approach is applied to organization, we have the following features of an organization as an open adaptive system:- 1. It is a sub-system of its broader environment. 2. It is a goal-oriented – people with a purpose. 3. It is a technical subsystem – using knowledge, techniques, equipment and facilities. 4. It is a structural subsystem – people working together on interrelated activities. 5. It is a psychosocial system – people in social relationships. 6. It is co-ordinate by a managerial sub system, creating, planning, organizing, motivating, communicating and controlling the overall efforts directed towards set goals. Characteristics of Modern Management Thought: 1. The Systems Approach: An organization as a system has five basic parts - 1. Input 2. Process 3. Output 4. Feedback and 5. Environment. Contingency Theory: Systems approach emphasizes that all sub- systems of an organization along with the super system of environment are interconnected and interrelated. Contingency approach analysis and understands these inter relationship so that managerial actions can be adjusted to demands of specific situations or circumstances. Lesson 2: Functions, Roles and Skills of a Manager Management is a vital aspect of the economic life of man, which is an organized group activity. A central directing and controlling agency are indispensable for a business concern. The productive resources – material, labor, capital etc. are entrusted to the organizing skill, administrative ability and enterprising initiative of the management. What is a Manager? A manager achieves objectives through efficient and effective use of resources. • Efficient-doing things right • Effective-doing the right thing 3 11 Source: https://www.managementstudyhq.com/functions-of-management.html 5 Functions of Management: 1. Planning is future-oriented and determines an organization’s direction. It is a rational and systematic way of making decisions today that will affect the future of the company. It is a kind of organized foresight as well as corrective hindsight. It involves predicting of the future as well as attempting to control the events. It involves the ability to foresee the effects of current actions in the long run in the future. 2. Organizing requires a formal structure of authority and the direction and flow of such authority through which work subdivisions are defined, arranged and coordinated so that each part relates to the other part in a united and coherent manner to attain the prescribed objectives. According to Henry Fayol, “To organize a business is to provide it with everything useful or its functioning i.e. raw material, tools, capital and personnel’s”. 3. Staffing is the function of hiring and retaining a suitable workforce for the enterprise both at managerial as well as non-managerial levels. It involves the process of recruiting, training, developing, compensating and evaluating employees and maintaining this workforce with proper incentives and motivations. Since the human element is the most vital factor in the process of management, it is important to recruit the right personnel. 4. The directing function is concerned with leadership, communication, motivation, and supervision so that the employees perform their activities in the most efficient manner possible, in order to achieve the desired goals. The leadership element involves issuing of instructions and guiding the subordinates about procedures and methods. communication must be open both ways so that the information can be passed on to the subordinates and the feedback received from them. Motivation is very important since highly motivated people show excellent performance with less direction from superiors. 12 Supervising subordinates would lead to continuous progress reports as well as assure the superiors that the directions are being properly carried out. 5. Controlling - The function of control consists of those activities that are undertaken to ensure that the events do not deviate from the pre-arranged plans. The activities consist of establishing standards for work performance, measuring performance and comparing it to these set standards and taking corrective actions as and when needed, to correct any deviations. Roles of Manager: Source: https://www.managementstudyhq.com/functions-of-management.html Interpersonal Category The managerial roles in this category involve providing information and ideas. 1. Figurehead – As a manager, you have social, ceremonial and legal responsibilities. You're expected to be a source of inspiration. People look up to you as a person with authority, and as a figurehead. 2. Leader – This is where you provide leadership for your team, your department or perhaps your entire organization; and it's where you manage the performance and responsibilities of everyone in the group. 3. Liaison – Managers must communicate with internal and external contacts. You need to be able to network effectively on behalf of your organization. Informational Category The managerial roles in this category involve processing information. 4. Monitor – In this role, you regularly seek out information related to your organization and industry, looking for relevant changes in the environment. You also monitor your team, in terms of both their productivity, and their well-being. 5. Disseminator – This is where you communicate potentially useful information to your colleagues and your team. 6. Spokesperson – Managers represent and speak for their organization. In this role, you're responsible for transmitting information about your organization and its goals to the people outside it. 15 What I Can Do? Directions: After you have filled in the graphic organizer chart, please work on the WORK IN PROGRESS List down the family members and identify each role. Explain their duties and responsibilities in a blank sheet of paper. Family Members Role Duties and Responsibilities Assessment: Multiple-choice Directions: Choose the letter corresponding to the correct answer for each of the questions provided below. ____1. Brought out that the productivity of the employees is not the function of only physical conditions of work and money wages paid to them. Productivity of employees depends heavily upon the satisfaction of the employees in their work situation. a. Hawthorne Experiment b. Multilevel and Multidimensional c. Contingency Theory d. Classical Theory ____2. Is future-oriented and determines an organization’s direction. It is a rational and systematic way of making decisions today that will affect the future of the company. a. Staffing b. Planning c. Organizing d. Directing 16 ____3. organization and management theory is based on contributions from a number of sources. They are scientific management, Administrative management theory, bureaucratic model, and micro-economics and public administration. a. Classical Theory b. Neoclassical Theory c. Modern Theory d. Contingency Theory ____4. Is a vital aspect of the economic life of man, which is an organized group activity. A central directing and controlling agency are indispensable for a business concern. a. Directing b. Management c. Organization d. Organizing ____5. This is where you communicate potentially useful information to your colleagues and your team. a. Monitor b. Disseminator c. Spokesperson d. Negotiator ____6. The ability to think and to conceptualize about abstract and complex situations. a. Technical Skills b. Human Skills c. Conceptual skill d. Inter-relationship skills ____7. Function is concerned with leadership, communication, motivation, and supervision so that the employees perform their activities in the most efficient manner possible, in order to achieve the desired goals. a. Planning b. Organizing c. Staffing d. Directing ____8. Is a deliberate arrangement of people to accomplish some specific purpose. Organizations share three common characteristics: (1) Each has a distinct purpose (2) Each is composed of people (3) Each develops some deliberate structure so members can do their work. a. Organizing b. Organization c. Management d. Directing 17 ____9. As a manager, you create and control change within the organization. This means solving problems, generating new ideas, and implementing them. a. Technical Skills b. Human Skills c. Conceptual skill d. None of the above ____10. Management is an essential element of every organized activity irrespective of the size or the type of the activity. a. Management is goal oriented b. Management is universal c. Management is continuous process d. Management is multi-disciplinary Additional Activities Directions: In the table below, write down at least five (5) skills you have learned and explain how those skills help you to manage an organization. 1 2 3 4 5 20 What I have learned Here are the possible answers.  Management refers to the act or bringing together the work activities to achieve the organization’s goals and objectives.    Management is a vital aspect of the economic life of man, which is organized group activity.    The characteristics and nature of management are goal oriented, universal, continuous process, multi-disciplinary, intangible force, situational, and both science and art.   It is essential in any organization and leader-manager.  A manager achieves objectives through efficient and effective use of resources.  Planning, organizing, staffing, directing and controlling are the functions of management.  The three areas of managerial skills are technical skills, human skills and conceptual skills ASSESSMENT 1. A 2. B 3. A 4. B 5. B 6. C 7. D 8. B 9. D 10. B 21 Worksheet: Rubrics in Checking Essays: Content = 30%, Understanding/Application = 25%, Original Thinking = 25%, Structure = 10% and Grammar = 10%. Answer the following questions below in space provided. 1. Is management art or science? Explain. ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ____________________ 2. Management and organizations are inseparable. Explain why. ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ____________________ 3. What do you understand by the term organization? and why people need them? ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ____________________ 4. Do you think managers should possess some skills different from other employees? Why? If yes, list required managerial skills. ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________