POSDCORB MANAGEMENT CONCEPTS By Alberto D Pena PH

POSDCORB MANAGEMENT CONCEPTS By: Alberto D. Pena, PH. D Associate Professor, Ret. , University of Connecticut (USA) Member of the Faculty, MDI, Illinois State University (USA)

POSDCORB-MANAGEMENT CONCEPTS • The following are short descriptions of important management concepts and principles needed for the understanding and application of different portions of the POSDCORB. • The enumeration is not all-exhaustive but the following are the most relevant. • The enumeration includes some of the “classic” principles of management that are normally identified with scientific management and some are recent concepts that are added to capture the humanistic nature of management. • After all management is both an art and science of utilizing resources such as financial, material, and human for the benefit of the organization.

POSDCORB-MANAGEMENT CONCEPTS Command Responsibility: • This concept pertains to the application of bureaucratic authority and subsequent delegation of this authority to subordinates. • An executive is clothed with bureaucratic authority to deploy resources for the implementation of the operational plan. • The amount of financial resources is indicated in the project budget. • The deployment of human resource is also inherent in the internal organization of the project. It means that the personnel are under the supervision of their superiors.

POSDCORB-MANAGEMENT CONCEPTS Command Responsibility…. • Personnel of contractors are not under the bureaucratic supervision of the managers • but it is still within his/her responsibility that the organization that hires these personnel will perform according to the contract. • In other words, the manager is responsible to whatever happens to the implementation of the operational plan.

POSDCORB-MANAGEMENT CONCEPTS • Command responsibility is manifest in different levels of management. • In a multi-layer organization, each managerial level is responsible for the action of people under them and that responsibility culminates at the level of the manager. • Command responsibility is the justification for exercising authority and it serves as a precaution for possible abuse in delegation. • In theory the concept of command responsibility permeates up to the highest position of an organization.

POSDCORB-MANAGEMENT CONCEPTS Command responsibility…. • In practice however, the invocation of command responsibility depends on a particular level of organization that does the accounting of responsibility. • In the internal organization, managers invoke command responsibility to their immediate subordinates making them responsible and accountable for the performance of their own units.

POSDCORB-MANAGEMENT CONCEPTS Area of Discretion: • The area of discretion involves the exercise of bureaucratic authority involving deployment of organizational resources. • It defines the limit in which decisions can be made on allocating resources. Such limit is indicated either in the job description of the position or by delegation from higher position. • Examples include employee discipline, staffing, organizing, and authorizing payments.

POSDCORB-MANAGEMENT CONCEPTS Area of Discretion…. . • Such area of discretion might include authorizing overtime work, re-assignment of workers and equipment, and signing of vouchers up to a certain amount. • He/she cannot source another vendor for the supply of materials if it is not within his area of discretion. • He/she could not authorize payment beyond the amount indicated in his area of discretion.

POSDCORB-MANAGEMENT CONCEPTS Area of Discretion…. . • He/she should get permission from his superior who may have such authority. • In some cases, routine decision making is delegated and becomes a part of the subordinate area of discretion. • The application of this concept is envisioned to prevent usurpation of authority.

POSDCORB-MANAGEMENT CONCEPTS • The area of discretion can be increased through delegation and can be decreased by withdrawing the delegated authority. • However, expansion and contraction of area of discretion have limits. • Obviously the manager should avoid delegating authority to a subordinate who is not prepared for it. • At the same time the manager could not withdraw some authorities that are inherent to the position of subordinates based on their job description when they were hired. • That will tantamount to demotion which will trigger the invocation of labor laws and civil service regulations.

POSDCORB-MANAGEMENT CONCEPTS Span of Control: • Since managers are responsible for the overall implementation of the operational plan it appears that they exercise control on every personnel. • We defined control previously as a situation where managers know what is going on in their unit and their ability to make corrective decision. • In this case, the span of control simply means that they exercise “control” through a number of subordinates who have subsequent control over personnel in their units. • The span of control refers to a number of people through whom managers do their management functions.

POSDCORB-MANAGEMENT CONCEPTS • Defining the span of control in a large and multi-layer organization would facilitate a smooth flow of communication and save time and resources. • It will also make management more effective and systematic. • Span of control will define the final configuration and arrangement of positions in an organizational chart. • If the manager decides to have a span of control over six positions, the second layer of positions in the organizational chart will consist of six units.

POSDCORB-MANAGEMENT CONCEPTS • If the manager decides to limit his/her span of control to four positions, the second layer of positions next to the position of manager will be confined to four units. • There are no fixed rules for setting the span of control. It depends on need to effectively exercise control and minimize communication breakdown.

POSDCORB-MANAGEMENT CONCEPTS • Do you ever wonder why there a number of vice presidents in a large corporation? • Do you ever wonder why there a number of deputy ministers in a Ministry? • This is done in order to avoid “crowding” in the span of control. Instead of exercising direct control over numerous departments the Minister can assigned this task to few deputy ministers.

POSDCORB-MANAGEMENT CONCEPTS • Some people would ask if the position of an Assistant Manager belongs to the manager’s span of control. • The answer is yes and no. It is yes if the assistant manager is given definite duties and responsibilities (besides serving as a mere alter ego of the manager). • For example the assistant manager could be assigned as head of the engineering unit or head of administrative unit. • In that capacity the assistant manager occupies a separate box in the organizational chart.

• It is no if the assistant manager serves as a mere alter ego of the project manager and wait for whatever job he/she is asked to do. • In that capacity he/she will share the position box with the manager in the organizational chart.

POSDCORB-MANAGEMENT CONCEPTS Monitoring and Control • This concept is already discussed in the previous description of the different portions of the POSDCORB. • It is discussed here again to give it more emphasis as an important concept of management. • One of the most important functions of management is monitoring and control.

POSDCORB-MANAGEMENT CONCEPTS • In this context monitoring is the process of gathering, compiling, and analyzing information and control means making decisions to keep the implementation of the operational plan on track. • Any deviation from the benchmarks set in the project design necessitates corrective action. In some cases such action could result to the readjustments in the operational plan.

POSDCORB-MANAGEMENT CONCEPTS • The manager should set up a system where information can be gathered at a predetermined interval. • The information to be gathered and the way it should be compiled and presented should be determined by the manager. • After all he/she will be the one to analyze this information and make the necessary control decision. • The terms “informed decision” and “calculated risk” are important parlance in management. • Informed decision means that the decision is made based on information that was gathered. It follows that wrong information will lead to unsound decisions.

POSDCORB-MANAGEMENT CONCEPTS • Calculated risk means that the decision is made after analyzing the various risks involved and the manager is able to weigh the perceived benefit from the decision against the perceived risks. • The “calculation” of such risks is based on the quality of information presented to the manager. Lack of knowledge of what is going on will greatly diminish the managers’ ability to control. • The constant update of information about the project will put managers in firm control.

Decision Making: • This is also described in the previous discussion of the different portions of the POSDCORB. This is again discussed here to give more emphasis on this important concept of management. • In POSDCORB management decision making takes a form of control. • One form of control is the knowledge of what is happening in the project, and the other form of control is making corrective action.

POSDCORB-MANAGEMENT CONCEPTS Decision Making…. • The sequence between these two forms is irreversible since one cannot make an “informed decision” unless he/she knows what is going on. • If the implementation of the operational plan is on tract the logical decision is not to make any action but significant deviation from the operational plan would trigger a corrective action.

POSDCORB-MANAGEMENT CONCEPTS Delegation and Consultation: • Delegation is important in management especially for large and complex organizations. • It is simply unproductive for managers to decide on everything. • The manager should reserve the discretion to decide on critical issues and leave the more trivial matters to the subordinates. • The most important decision making on this regard is to choose the specific areas to be delegated and the limits of such delegation.

POSDCORB-MANAGEMENT CONCEPTS Delegation and Consultation… • The manager should also ensure that the subordinate has the required expertise and knowledge to make an informed decision. • The manager should remember that delegation involves only the sharing of authority but not the sharing of responsibility. • The manager is still responsible for the decision made by the subordinates. • On this regard the manager should give general guidelines to the subordinate.

POSDCORB-MANAGEMENT CONCEPTS • Consultation is also a part of manager’s decision making. • The periodic reports from below may contain the necessary information for an informed decision or it may also contain specific recommendations. • However, it is always wise to consult the subordinates on important decisions since they may possess the needed expertise. • In many cases, more brains are better than one.

Coordination: • This is already discussed as a portion of the POSDCORD. This is mentioned here again because it is an important management principle. • The most important concepts to remember is that coordination involves two important functions. • One is the synchronization of activities of different units of the whole organization from top to bottom and • the second is coordination between co-equals in internal coordination and between top executives of different organizations with similar interest.

POSDCORB-MANAGEMENT CONCEPTS • The process of coordination is between co-equals in the organizational arrangement. • Coordination is not between superiors and subordinates connected through command responsibility. • Coordination is between managers of almost equal rank and not bound by command responsibility and direct supervision. It makes coordination much more challenging for managers. • A coordinator is somebody who can convince his co-equal to follow a common path of action and is willing to adjust in achieving a common objective with other managers.

POSDCORB-MANAGEMENT CONCEPTS Unity of Command: • Subordinates should be under one superior. • This was emphasized by Dr. Henry Fayol when he conceptualized the POSDCORB. • In this principle subordinates should be responsible to one superior who issue directives and commands.

POSDCORB-MANAGEMENT CONCEPTS Unity of Command: • If this principle is not followed it may cause problems such • as undermining authority of the superior, • weakens discipline, • divides loyalty, • confusion, • escaping responsibilities, • duplication of work, • and overlapping efforts.

POSDCORB-MANAGEMENT CONCEPTS Unity of Direction: • Related to Unity of Command is the principle of Unity of Direction which was also mentioned by Dr. Henry Fayol • It is one of the classic principles of management. This principles says that all efforts and activities should be synchronized in order to guide them to one direction. That direction is guided by the operational plan. Unity of Command is not possible if there is no Unity of Direction and vice versa.

POSDCORB-MANAGEMENT CONCEPTS Principle of Discipline: • It involves sincerity on the part of subordinates and superiors to follow established rules and regulations of the organizations • Follow directives, orders, and commands from their respective superiors. • One of the most difficult variable in discipline is the behavior of employees.

POSDCORB-MANAGEMENT CONCEPTS Principle of Discipline…. • Aptitude can be corrected thru Human Resource Development but changing attitude needs behavioral changes. • The breakdown of discipline will have a very negative impact on the whole management structure of the organization.

Principles of Equity • Subordinates should be treated with fairness and justice by their superiors. • It includes equal treatment based on established policies. • Principles of Equity also gives meaning to the concept of equal work, equal pay. In recent years it becomes a significant gender issues in management. • In government, employees rights and fair treatment are embodies in civil service laws and remuneration is governed by wage and salaries standardization laws.

POSDCORB-MANAGEMENT CONCEPTS • Subordination of personal interest to organizational interest: • This concept enjoins employees to always consider organizational interest and objectives in performing their functions. • This is in line with scientific management based on established policies, rules, and regulations. • Considering personal interest might break the line of communications and common direction.

• Subordination of personal interest to organizational interest…. . • It might also unnecessarily confuse the superiors in pursuing the principles of equity since the manager might give different considerations to different personal interest of subordinates. • In recent years however, personal interest and problems are starting to be recognized. Personal problems affect official performance. • There are organizations that organize separate units to offer counseling services to employees.

POSDCORB-MANAGEMENT CONCEPTS Stability of Tenure • Normally, tenure is seen as security in the job. Employees with tenure or job security might perform better compared to non-tenured employees. • In government, the tenure of employees are government by civil service laws and individual contract. • In the private sector tenure is considered performance based but there also many cases where the tenure is based on individual contracts.

POSDCORB-MANAGEMENT CONCEPTS Stability of Tenure…. • For example, “contractual” employees are normally those who are not permanent and their tenure is based on performance or on definite time of employment. • Employees should not be “moved” from job to job or hired off and on in order to retain skills previously learned or to create a sense of belongingness to the organization.

POSDCORB-MANAGEMENT CONCEPTS Scalar Chain • This mentioned by Henry Fayol in his enumeration of principles of management for POSDCORB • This is similar to the Unity of Command where all superiors are connected to chain of commands until it culminates to the top level of management. • It also means that all positions are connected to other positions and there should be no “astray” or “ghost” positions.

POSDCORB-MANAGEMENT CONCEPTS • Recent Innovations in the Concepts of Management • Through the years a number of concepts of management are added to the classic principles of management. • The following are some of them.

POSDCORB-MANAGEMENT CONCEPTS Advocacy: • In this regard advocacy is defined as a process of selling the merits of the organization for the purpose of gaining and maintaining support from the stakeholders. • This is a very important concept especially for NGOs. Advocacy is important both in internal management and for external relations.

POSDCORB-MANAGEMENT CONCEPTS Advocacy…. • Although the term stakeholder is normally identified with outsiders the manager should remember that the organization personnel are very important stakeholders. • One of the incentives and motivation that a manager can provide is convince personnel about the merits of the organization.

POSDCORB-MANAGEMENT CONCEPTS • Another form of advocacy for the manager is to market the organization to the stakeholders consisting of investors, sponsors, and beneficiaries. • Sponsors will appreciate it very much if they are being updated on the progress of the organization in serving their clients. • Sponsors will continue their support to the organization if they see that the organization is really sincere in utilizing their support for the services to own their clients.

POSDCORB-MANAGEMENT CONCEPTS Liaison… • Liaison is similar to advocacy but with a different twist. • While advocacy involves the process of selling the merits of the organization, liaison involves the process of connecting the organization to outside entities for the purposes of getting resources. • Many times it is used with advocacy and lobbying since the process of getting resources from the outside also involves selling the merits of the project.

POSDCORB-MANAGEMENT CONCEPTS Liaison… • The organization is not an island by itself. Although it has its own management team and budget, it has to deal with a number of satellite organizations that affect its operation. • Liaison is very important for organizations with a number of sponsors providing financial support such as NGOs. • As a liaison person the manager should see to it that the flow of financial resources will continue.

POSDCORB-MANAGEMENT CONCEPTS Marketing the Organization: • Marketing is very similar to advocacy and lobbying with a more concrete plan of action. • Marketing is both selling the organization itself and selling its products or projects. • While advocacy and lobbying can serve the advertisement of the organization, marketing is the process of actually selling the organization to its consumers.

POSDCORB-MANAGEMENT CONCEPTS Marketing the Organization…. • Here are few examples. • Unsuccessful fund raising can be due to lack of marketing. • To be successful, the organization should be “sold” to potential sponsors and donors. A vaccination project as in other health projects needs marketing or it will not able to sell its products. • This project can be sold to its users through community meetings, door to door information drive, helping parents in bringing their children for vaccination, etc.

POSDCORB-MANAGEMENT CONCEPTS Social Marketing: • Social marketing is the term most appropriately used for marketing government services and services of NGOs. • This type of marketing implies two things: one is the selling of public services, and the other is selling the services to its “public”. • In this case the “public” of these services are the sponsors and its target beneficiaries.

POSDCORB-MANAGEMENT CONCEPTS Social Marketing… • The first step in social marketing is to identify the market of the organization and its services. • Obviously, the market is the target beneficiaries and its stakeholders especially the gatekeepers. • The target beneficiaries can be identified by the number of people in a geographic area or a particular segment of population such as gender, age group, etc. • The target beneficiaries can also be represented by organizations such as business organizations.

POSDCORB-MANAGEMENT CONCEPTS Social Marketing… • For example the target beneficiaries for small and medium enterprise development project are the small and medium business organizations. • The next step is to develop strategies to reach the market. The usual strategies for social marketing include dissemination drives, use of gatekeepers, trade fairs, and use of different media to advertise the project.

POSDCORB-MANAGEMENT CONCEPTS Social Marketing… • In addition to selling the merits of the organizations (relevance and objectives), the strategy should also include performance. • In the past marketing for public services (government and NGOs services) is considered waste of time and money. Nowadays, social marketing is seen as very important for the success of public institutions. • The term gate-keeper is a by-word in social marketing as it is also a common term in stakeholder analysis.

POSDCORB-MANAGEMENT CONCEPTS Social Marketing… • Gatekeepers are people who, due to their position and stature in the community, wield significant influence on other members of the community. • These people might be political leaders, officials of associations, owners of production facilities and land, religious leaders, and other people who have gained the respect of the community. • The help and support of gatekeepers are normally sought for the implementation of government and NGO programs. • Their performance can be enhanced with the assistance of gatekeepers.

POSDCORB-MANAGEMENT CONCEPTS The Concept of Stakeholder • Stakeholders are people or groups that have “claims” on the organizations. That is their stake. • These claims are manifested on how the services of the organization will impact on the wellbeing of people either positively or negatively. • This impact could either be direct or perceived. • The impact would be two ways: one is the impact of the organization to the stakeholder and the other is the impact of the stakeholder to the organization itself.

The Concept of Stakeholder …. • More specifically, stakeholders include people or groups that have vested interest in the organization. Sometimes they are called “interest groups”. • Although the expanded definition of interest groups include almost all groups that have vested interest in the projects, the term normally applies to civic and religious associations that serves as proponents, advocates, or adversaries of the project. • Advocates are those that promote the project because it is in line with their mission, it will enhance their political standing, or it will improve their wellbeing. • Adversaries are those who believe the opposite.

POSDCORB-MANAGEMENT CONCEPTS Stakeholder Analysis: Stakeholder analysis consists of the following steps: • identification of stakeholders, • assessment of stakeholder interest on the organization, • mobilizing and/ or neutralizing the influence of stakeholders, and • building consensus or making compromises among stakeholders.