BUSINES MARKETING

Organization and Management

Alternative Delivery Mode
Quarter 1 – Module 1: Nature and Concept of Management
First Edition, 2020

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BUSINESS MARKETING
Quarter 1 – Module 1:
Marketing Principles and
Strategies
Introductory Message

For the facilitator:

Welcome to the BUSINESS MARKETING Alternative Delivery Mode (ADM) Module on

Marketing Principles and Strategies.

This module was collaboratively designed, developed and reviewed by educators both from
public and private institutions to assist you, the teacher or facilitator in helping the
learners meet the standards set by the K to 12 Curriculum while overcoming their personal,
social, and economic constraints in schooling.

This learning resource hopes to engage the learners into guided and independent learning
activities at their own pace and time. Furthermore, this also aims to help learners acquire
the needed 21st century skills while taking into consideration their needs and
circumstances.

In addition to the material in the main text, you will also see this box in the body of the
module:

Notes to the Teacher

This contains helpful tips or strategies that
will help you in guiding the learners.

As a facilitator you are expected to orient the learners on how to use this module. You also
need to keep track of the learners' progress while allowing them to manage their own
learning. Furthermore, you are expected to encourage and assist the learners as they do the
tasks included in the module.

For the learners:

Welcome to the BUSINESS MARKETING Alternative Delivery Mode (ADM) Module on
Marketing Principles and Strategies.

The hand is one of the most symbolized parts of the human body. It is often used to depict
skill, action and purpose. Through our hands we may learn, create and accomplish. Hence,
the hand in this learning resource signifies that you as a learner is capable and empowered
to successfully achieve the relevant competencies and skills at your own pace and time.
Your academic success lies in your own hands!

This module was designed to provide you with fun and meaningful opportunities for guided
and independent learning at your own pace and time. You will be enabled to process the
contents of the learning resource while being an active learner.

This module has the following parts and corresponding icons:

2
What I Need to Know This will give you an idea of the skills or
competencies you are expected to learn in the
module.

3
What I Know This part includes an activity that aims to check
what you already know about the lesson to take.
If you get all the answers correct (100%), you
may decide to skip this module.

What’s In This is a brief drill or review to help you link the

current lesson with the previous one.

What’s New In this portion, the new lesson will be introduced

to you in various ways such as a story, a song, a
poem, a problem opener, an activity or a
situation.

What is It This section provides a brief discussion of the

lesson. This aims to help you discover and
understand new concepts and skills.

This comprises activities for independent

practice to solidify your understanding and skills
What’s More of the topic. You may check the answers to the
exercises using the Answer Key at the end of the
module.

What I Have Learned This includes questions or blank

sentence/paragraph to be filled in to process
what you learned from the lesson.

What I Can Do This section provides an activity which will help

you transfer your new knowledge or skill into
real life situations or concerns.

Assessment This is a task which aims to evaluate your level

of mastery in achieving the learning competency.

In this portion, another activity will be given to

you to enrich your knowledge or skill of the
Additional Activities lesson learned. This also tends retention of
learned concepts.

4
 Answer Key This contains answers to all activities in the
module.

At the end of this module you will also find:

References This is a list of all sources used in developing

this module.

The following are some reminders in using this module:

1. Use the module with care. Do not put unnecessary mark/s on any part of the
module. Use a separate sheet of paper in answering the exercises.
2. Don’t forget to answer What I Know before moving on to the other activities included
in the module.
3. Read the instructions carefully before doing each task.
4. Observe honesty and integrity in doing the tasks and checking your answers.
5. Finish the task at hand before proceeding to the next.
6. Return this module to your teacher/facilitator once you are through with it.
If you encounter any difficulty in answering the tasks in this module, do not hesitate to
consult your teacher or facilitator. Always bear in mind that you are not alone.

We hope that through this material, you will experience meaningful learning and gain
deep understanding of the relevant competencies. You can do it!

5
 What I Need to Know

This module was designed and written with you in mind. It is here to help you
master the Marketing Principles and Strategies, its history basic concepts, characters
and elements. The scope of this module permits it to be used in many different learning
situations. The language used recognizes the diverse vocabulary level of students. The
lessons are arranged to follow the standard sequence of the course. But the order in which
you read them can be changed to correspond with the textbook you are now using.

The module is divided into two lessons, namely:

● 1. What is marketing and its traditional approaches?

● 2. Goals of marketing

● 3. Contemporary approaches to marketing

After going through this module, you are expected to:

● demonstrate an understanding of the marketing principles, goals, and traditional
and contemporary approaches to marketing

What I Know

Directions: Answer the following. Use your answer sheet provided at the back
of the Module.

1. True or False: Marketing is the process of interesting potential customers

and clients in your products and/or services.
2. What is the key word in marketing?
a. process b. promoting c. selling d. distributing
3. Which of the following is NOT a traditional marketing?
a. direct mail b. print c. broadcast d.none of the above
4. your company is always on the list when people are looking to solve a
particular problem.
a. To increase brand awareness
 b. To generate high-quality leads
c. To grow and maintain thought leadership
d. To increase customer value
5. theories that stress the importance of customer orientation versus the
traditional market orientation.
a. traditional marketing c. contemporary marketing
b. social marketing d. email marketing

Lesson
Marketing Principles and Strategies
1
Marketing is the process by which producers of goods and services aim to
find out where a demand exists for certain services and products and then find
solutions to those needs as well as the way to make consumers aware of the
solutions. Marketing is the aspect of business which is most consumer focused as
all of the principles of marketing relate directly to the consumer.

The principles of marketing follow a logical sequence. First, a target

consumer of a particular product or service must be identified. Knowing who uses a
given product or service is essential to determining what that consumer wants and
how to get it to them. This is essential for companies operating in the free market
as success depends upon identifying and retaining customers in order to remain
profitable and ensure business growth.

Principles of Marketing – The Marketing Mix

One of the fundamental principles of marketing is the marketing mix. The
marketing mix consists of four different factors which businesses need to get right
in order to successfully sell their goods and services. The marketing mix is also
known as the four p’s, and is as follows.

● Product – This is the first step of the marketing mix. Without a product,
there is nothing to market! The product should aim to fill a gap in the
market in some way or fulfill some type of consumer need. The product
should be designed according to consumer need and desire.
● Price – The price of a product should be one which consumers are prepared
to pay while simultaneously allowing the manufacturers to generate profit.
Price is dependent upon the cost of product production, the desired level of
profit, and also the price of competing products.
 ● Promotion – This refers to the methods a company uses to make consumers
aware of and attracted to a particular product or service. The promotion
should be one which shows the product in its best light and also reaches the
consumer. Different target markets are likely to respond to different types of
promotion and this should be kept in mind when designing a promotional
campaign. Examples of promotional methods include television commercials,
radio commercials, internet advertising, introductory prices, PR events and
so forth.
● Place – This refers to the method of distribution for a product, or the place
where consumers will be able to purchase it. Considerations relating to place
include whether a particular product should be sold in all markets or is
more suitable for a particular region or nation, the choice of retailers for a
certain product, and so on. For example, if the product is a toy, it should be
available to consumers in toy stores, as this is where people expect to find
toys.

Principles of Marketing – Targeting Particular

Consumers
It is essential that a company bringing a product or service to market is aware of
who they believe the target market to be. Without a clear target consumer in mind
it will be difficult to decide upon the correct marketing strategy to implement. Some
products target a specific, or niche market, while others may target multiple
markets.

Principles of Marketing – Branding

Branding a product in a certain way is essential for its success. Consumers tend to
identify with products based on their branding and many consumers stay loyal to
their favored brand. These factors make branding an essential part of the principles
of marketing. It is important that a particular product has a coherent brand
identity. This should be reflected through its logos, descriptions, advertising and so
on. The brand should convey the identity of the product and should be something
that consumers can relate to. For example, a luxury, high-end product should have
branding which gives a luxury, high-end impression. Incorrect branding is a key
reason why products fail to win over consumers.
 What’s In

Try unscrambling the letter to find the correct word in understanding 8 major
approaches in Marketing.

__________ or Commodity Approach

ROPTUCD

1. Under the commodity approach the focus is placed on the product or it is an

approach on the marketing on commodity wise basis. In other words, the
study relates to the flow of a certain commodity and its movement from the
original producer right up to the ultimate customer. The subject-matter, under
this study, is commodity. When one studies the marketing on this basis—
commodity approach, one must begin to study and analyses the problems
relating to a commodity i.e., sources and conditions of supply, nature and
extent of demand, mode of transporting, storage, standardization, packing etc.
Again, take an example of a commodity, say rice. One has to study the
sources of rice, location, people involved in buying and selling, means of
transport, problems of selling the product, financing, storage, packing etc.
Thus, we get a full picture of the marketing from the original producer to the
ultimate consumer. The method of study is repeated for each item. The system
claims that it is simple and gives good result over the marketing of each
product; description study is possible. But at the same time this approach is
time-consuming and repetitive process which is a drawback.

__________ Approach

LANSITNITUIOT
 2. In the institutional approach, the focus is on the study of institutions-
middlemen, wholesalers, retailers, importers, exporters, agencies,
warehousing etc., engaged in the marketing during the movement of goods.
The approach is also known as middlemen approach. Here, emphasis is given
to understand and analyses the functions of institutions, who are discharging
their marketing functions.

The activities of each institution form a part of marketing and

collectively complete the marketing functions. In the process of moving the
goods from the producer to the final consumers, a large number of persons are
engaged. This system pays attention to the problems and functions of
marketing institutions-transporting, banks and other financial institutions,
warehousing, advertising, insurance etc. This method does not give adequate
knowledge of the entire marketing functions and also’ fails to explain the
interrelations of different institutions.

__________ Approach

TIOCUNFLAN

3. It gives importance on the various functions of marketing. In other words, one

concentrates attention on the specialized services or functions performed by
marketers. In this approach, marketing splits into many functions-buying,
selling, pricing, standardization, storage, transportation, advertising, packing
etc. This may be studied one after another. Here each function is studied in
detail in order to understand it and analyses the nature, need and importance
of each function. In this approach, marketing is regarded as “business of
buying and selling and as including those business activities involved in the
flow of goods and services between producers and customers.” This system
gives too much importance to various marketing functions and fails to explain
how such functions are applied to the specific business operations.

__________ Approach
GAMTENNEA

4.

This approach is the latest and scientific. It concentrates upon the activities or marketing functions and

focuses on the role of decision-making at the level of firm. This approach is mainly concerned with how

managers handle specific problems and situations. It aims through evaluation of current market

practices to achieve specific marketing objectives.

Generally there are two factors-controllable and uncontrollable, which are more concerned with the

decision-making. Controllable include price adjustment, advertisement etc. Uncontrollable-economical,

sociological, psychological, political etc. are the basic causes for market changes. And these changes

cannot be controlled by any firm.

But controllable can be controlled by the firm. The uncontrollable limit the marketing opportunities. As

such, managerial approach is concerned with the study of uncontrollable and then taking decisions for

controllable within the scope set by uncontrollable. Managerial or decision-making approach emphasizes

on the practical aspects of marketing, but ignores the theoretical aspects of marketing. At the same time,

this approach, provides an overall information of the entire business.

Notes to the Teacher

To be able to deliver this lesson well, the teacher must have read
the following:

1. What is marketing and its traditional

approaches?

2. Goals of marketing

3. Contemporary approaches to marketing

 What’s New

Everything you need to know about the approaches to the study of

marketing. Marketing is inherently multidimensional.

As such, it is practised and studied from many distinct points of view, with
varying means and toward different ends. Perhaps inevitably, a variety of
definitions of marketing have emerged and evolved.

“Marketing is a social and managerial process by which individuals and

groups obtain what they need and want through creating, offering, and
exchanging products of value with others”.

The approaches to the study of marketing are:-

1. Commodity Approach 2. Institutional Approach 3. Functional Approach 4.

Managerial or Decision Making Approach 5. The Systems Approach; 6. Sales
Oriented Approach 7. Production Oriented Approach 8. Consumer Oriented
Approach 9. Socially-Oriented Marketing Approach.

Approaches to the Study of Marketing: Commodity Approach, Institutional

Approach, Functional Approach and a Few Others

Approaches to the Study of Marketing – 3 Main Approaches: Commodity

Approach, Institutional Approach and Functional Approach

In the early stages of evolution of economic life, man’s wants were limited.
Production was strictly in accordance with demands. The scope of marketing
was naturally also very limited. There were direct and personal relations
between the producers and the consumers. Production and marketing
techniques were quite simple.

n fact, there were no marketing problems. But now-a-days they are

increased with development of knowledge in different areas. But at present
large scale production is carried on with the help of most sophisticated
machines and the consumption of these goods is made by a very large
number of consumers throughout the world.

As such the direct contact between the producers and consumers is almost
impossible. There is a long chain of middlemen which make it possible for
these goods to be carried to the consumers. Marketing process is getting
more and more complex in present times.

Modern marketing process can be studied from three points of view:

1. Commodity:
Under this approach a particular product is selected and then a detailed
study is made regarding the various sources of its supply, quality of the
product, its characteristics, its uses, limits of the market for the product,
the intervening middleman engaged in the work of distribution, the various
means of transport which actually carry the goods to the consumers and
after sales service.

For example if we want to study marketing of wheat or sugar then we shall

have a study in detail of the sources of the supply of these commodities,
their kinds, different uses, their buyer and actual consumer, suppliers, the
various means of transport used to carry them for the actual place of
production to the markets and then how these products actually reach the
hands of the users by the efforts of the retailers

2. Institutional:

Under this approach the functioning of various institutions engaged in the

task of marketing is studied scientifically. There are the days of mass
production and the consumption is made by the people spread over
throughout the world. Actual marketing is done by specialised institutional.
Their help is vital in the marketing process. There are wholesaler’s retailers,
advertising agencies, transport agencies, marketing research institutes,
commercial banks, insurance companies, warehousing, etc. All these
institutions help in one or the other way to take the goods to the hands of
actual users.

The selection of these institutions depends on the nature of product. For

example for industrial products direct selling is preferable through
wholesalers and retailers. For consumer goods like soap, cloth, etc. the help
of the wholesalers, retailers is essential for distribution work.

The main thing about the consumer goods is that they are purchased by the
consumers generally is small quantities and not in bulk. Therefore their
direct sale by the producers to the sellers is not economic. It entails higher
costs and involves other difficulties.

The great merit of the institution an approach is that it provided complete

knowledge of each institution engaged in particular part of marketing.

3. Functional: Under this approach we study the marketing functions right

from the production stage of the goods and services up to their reaching the
hands of consumers. These marketing operations include purchase,
classification, standardisation and gradation transport storage,
advertisement, financing and risk bearing, etc.

The credit for designing this approach goes to A.W. Shaw who enumerated
the functions of middlemen as follows-

Sharing the risk, transporting the goods, financing the operation, selling
(communication of ideas about the goods); and assembling; assorting and
reshaping. Later on L.D.H. Weid introduced some notable changes in the
concept by pointing out that the above functions are not always performed
by middlemen but also partly by the producers and partly by the
consumers.

A marketing function is a major specialised activity performed in marketing.

Functional approach, therefore, splits down the field of marketing into a few
functions which are to be performed by doing marketing work.

Approaches to the Study of Marketing – Traditional and Modern

Approaches

Marketing philosophy has undergone a gradual but thorough change since

the industrial revolution. This change in the philosophy of marketing can be
compartmentalised into four stages or four different concepts of marketing.

The first two are the traditional concepts and the last two are the new
approaches of marketing:1. Production Oriented Marketing, 2. Sales
Oriented Marketing, 3. Consumer Oriented Marketing, 4. Socially Oriented
Marketing, i.e., socially responsible marketing approach.

1. Production Oriented:

Till 1930, there was a feeling amongst the manufacturers that if a company
manufactured a good product it would sell with little or no promotion effort.
This concept of marketing i.e. if a product is really good and the price is
reasonable, no special efforts are required to market the product is known
as The Production Oriented Concept of Marketing.

It is based on the following assumptions:

(a) A firm should manufacture only certain basic products.

(b) The most crucial task of management is to keep the cost of production
relatively low.

(c) Anything that can be produced sells.

This concept of marketing can successfully exist only in a sellers’ market,

i.e., a market in which supply is limited and demand exceeds supply. Hence
after 1930, when the market changed from a sellers’ market to a buyers’
market this concept was overthrown to be replaced by a new philosophy
known as the “Sales Oriented Concept of Marketing.”

2. Sales Oriented:

After 1930, certain social and economic changes took place which resulted
in a shift from agriculture to industry. Transport and communication
systems developed and mass production became the order of the day. This
resulted in an increase in competition.
As more and more competitors entered the area of manufacture, the market
slowly turned into a buyer’s market, i.e., the supply exceeded demand. It
was no longer possible to sell everything that was manufactured. The
problems of the manufacturer now focused on how to increase sales.

This was mainly because for the same number of customers, now there were
many sellers. The purchaser had a choice of products and hence the seller
now had not only to manufacture a good product but also convince the
purchaser that his product was better than the competitor’s product.

For this he had to have an effective sales organisation, choose the right
channel of distribution, concentrate on advertising, sales promotion and
other demand increasing activities. This phase continued till 1950. In fact, it
still holds good to a certain extent even today; it is prevalent in the selling of
consumer non-durables and consumer durables, especially products which
have a status symbol.

3. Consumer Oriented:

This concept came into existence around the 1950’s, when the
manufacturers realised that no amount of aggressive selling would force
people to buy a product they did not need. This era forced the
manufacturers to rethink and realise that the basis of all their marketing
efforts should revolve around the need of the customer. It was around this
period of time that marketing research became an important function of
marketing. This concept concentrates on the consumer rather than the
product.

It is based on the following assumptions:

(a) The firm should produce only that product which is desired by the
customer. (b) Management should integrate all its activities in order to
develop programmes to satisfy consumer wants. (c) Management should be
guided by long term profits rather than quick sales.

This philosophy of marketing brought about two major changes. Firstly, it

placed the consumer at the crux of all marketing activities, and secondly, it
replaced the age old ‘caveat emptor’, attitude with ‘caveat venditor’. This
philosophy will continue so long as the customer continues to be the king of
the market.

4. Socially-Oriented Marketing:

The philosophy of marketing was further refined during the 60’s and 70’s
and a new concept of Social Marketing was coined and accepted by
manufacturers all over the world. This concept focuses not only on customer
satisfaction but also on customer welfare and social welfare as well. By
customer and social welfare is meant a pollution free environment and good
quality of human life.
Thus, an automobile manufacturer must manufacture not only a good
vehicle but one which will reduce pollution or a tobacco manufacturer must
manufacture not only good quality tobacco but one which will do the least
harm to the environment and health of the consumers.

In fact, this concept of marketing goes a step further and says that it is the
duty of the manufacturer to awaken those needs in the people, the
satisfaction of which will lead to social good. Here the marketers concentrate
on satisfying the needs of the society as a whole rather than on individual
need satisfaction.

Social marketing is often concerned with a major change in ‘attitudes’ which

is an uphill task. In India social marketing is undertaken by a variety of
organisations and groups such as units of the UNO like WHO, UNICEF,
international organisations like the Red Cross, and the Rotary Club, socially
conscious companies, charitable societies and associations of individuals.

What is It
On your provided answer sheet, fill in the words that best
describe the statement.

1. Marketing is inherently multi________________.

2. “Marketing is a social and managerial _________by which

individuals and groups obtain what they need and want through
creating, offering, and exchanging products of value with others”.

3. 3 Main Approaches: _________ Approach, __________ Approach and

______________Approach

4. _____________:Under this approach a particular product is selected

and then a detailed study is made regarding the various sources of its
supply, quality of the product, its characteristics, its uses, limits of
the market for the product, the intervening middleman engaged in the
work of distribution, the various means of transport which actually
carry the goods to the consumers and after sales service.

5. ______________: Under this approach the functioning of various

institutions engaged in the task of marketing is studied scientifically.

6. ______________: Under this approach we study the marketing

functions right from the production stage of the goods and services up
 to their reaching the hands of consumers. These marketing operations
include purchase, classification, standardisation and gradation
transport storage, advertisement, financing and risk bearing, etc.

7. Approaches to the Study of Marketing – __________ and

________________Approaches

8. The first two are the traditional concepts: _______ Oriented

Marketing and __________ Oriented Marketing

9. Traditional or Modern:

a. A firm should manufacture only certain basic products.

b. The most crucial task of management is to keep the cost of

production relatively low.

c. Anything that can be produced sells.

d. The firm should produce only that product which is desired

by the customer.

e. Management should integrate all its activities in order to

develop programmes to satisfy consumer wants.

f. Management should be guided by long term profits rather

than quick sales.

10. ___________ Marketing: This concept focuses not only on

customer satisfaction but also on customer welfare and social welfare
as well.

What’s More

Great marketing plans are built on a foundation of goals that represent your most
pressing business needs. But how do you define the right goals? It turns out that
there are many common objectives across business types. Among these goals, which
should come first?

____________1. Increase sales. This one shouldn’t be a surprise because it tends

to be the ultimate objective for your marketing efforts. This can be a
challenging goal for some marketing organizations with longer sales cycles — in
that case, it is often best to choose a leading indicator of growth. You can
measure your success in terms of revenue or bookings based on your business
model.

____________2. Generate leads (or opportunities). If you want a more real-time

measurement of marketing effectiveness, pick an outcome that shows up
earlier in the sales cycle. If you are measuring leads, it is best to choose a
high-quality lead metric like marketing qualified leads (MQLs) or sales
accepted leads (SALs) to avoid declaring success based on generating
unqualified leads. Opportunities are even better because they have been fully
accepted by the sales team, creating better alignment.

____________3. Acquire new customers. Bringing a new customer onboard is a

great objective for many types of businesses, regardless of whether you sell to
individuals or to companies. While this one seems pretty easy to measure,
some companies have difficulty reliably counting new customers.

____________4. Reduce churn (or retain customers). If you have a SaaS

business, this can be one of the most important measurements for your long
term success. You can measure this based on retention (I retained 95% of my
customers) or churn (we churned 5% of our customers).

____________5. Up-sell and cross-sell. If you have an established set of

customers, a great way to grow is to sell more of the same product to existing
customers (up-sell) or sell new solutions to existing customers (cross-sell). This
is another one that can be difficult to measure for some companies based on
their systems, but it is a consistently popular goal for more mature companies.

____________6. Improve awareness. It’s easy to say that raising your awareness
is a goal of your marketing, but it is challenging to measure. If this is your
goal, you might choose a resulting indicator as a measurement for awareness,
like inbound leads, web traffic, or positive media mentions. The ultimate
measure is an awareness research study with a baseline, but that data is not
always available.

____________7. Increase customer satisfaction. Over the years, marketers have

been increasingly charged with raising customer satisfaction — especially if the
marketing team has any product responsibility. Functions like customer
marketing or customer advocacy marketing are more common as a result. The
most common measurement for customer satisfaction is the Net Promoter
Score (NPS), but you can also choose other survey instruments.

____________8. Launch a new product or solution. Bringing new solutions to

market helps drive growth for your company — and product marketing teams
are often responsible for launch management. Be careful not to measure your
success by simply launching the product — instead, you should choose an
indicator of market acceptance, like inquiries, reviews, leads, or new sales of
the product depending on the length of the sales cycle.

____________9. Re-brand or re-position. Successfully re-positioning or re-

branding your company or your product can accelerate growth in your
business. This is another one that can be tricky to measure, but you should
choose metrics like inclusion of your new positioning in media and analyst
communications (as a leading indicator), brand awareness, or increased growth.

____________10. Increase web traffic. Sometimes your goal is pretty simple — 

like getting more people to show up to your website. This another area where a
quality metric is really important — make sure you can measure qualified
 traffic, bounce rate, conversions, time on page, or similar indicators that you
got the right people to come to your site.

____________11. Refine go-to-market strategy. Whether you are in a young

company that is trying to find their right strategy to bring products to market,
or a more mature company, the right strategy can make a break your success.
Like other project-based goals, you don’t want to measure “completion of
task”, instead you should focus on the result of your efforts, including
accelerating leads, sales, or pipeline.

____________12. Launch a new initiative. This is my “other” goal for marketing.

You may have a new account based marketing program in the works, a CRM
implementation, a new customer program, a merger, or any other strategic
initiative. Whatever it is, make sure you have a clear way to measure the
results.

What I Have Learned

Principles of Marketing – The Marketing Mix

One of the fundamental principles of marketing is the marketing mix. The
marketing mix consists of four different factors which businesses need to get right
in order to successfully sell their goods and services. The marketing mix is also
known as the four p’s, and is as follows.

● ____________________________ – This is the first step of the marketing mix.

Without a product, there is nothing to market! The product should aim to fill
a gap in the market in some way or fulfill some type of consumer need. The
product should be designed according to consumer need and desire.
● ____________________________________ – The price of a product should be one
which consumers are prepared to pay while simultaneously allowing the
manufacturers to generate profit. Price is dependent upon the cost of
product production, the desired level of profit, and also the price of
competing products.
● __________________________– This refers to the methods a company uses to
make consumers aware of and attracted to a particular product or service.
The promotion should be one which shows the product in its best light and
also reaches the consumer. Different target markets are likely to respond to
different types of promotion and this should be kept in mind when designing
a promotional campaign. Examples of promotional methods include
television commercials, radio commercials, internet advertising, introductory
prices, PR events and so forth.
● _________________________________ – This refers to the method of distribution
for a product, or the place where consumers will be able to purchase it.
Considerations relating to place include whether a particular product should
be sold in all markets or is more suitable for a particular region or nation,
the choice of retailers for a certain product, and so on. For example, if the
product is a toy, it should be available to consumers in toy stores, as this is
where people expect to find toys.

What I Can Do

1. Define and understand marketing

2. Describe the traditional approaches to marketing
3. Discuss the goals of marketing
4. identify and explain contemporary marketing approaches
Assessment

Answer the following. Use your answer sheet provided at the

back of the Module.

1. True or False: Marketing is the process of interesting

potential customers and clients in your products and/or
services.
2. What is the key word in marketing?
a. process b. promoting c. selling
d. distributing
3. Which of the following is NOT a traditional marketing?
a. direct mail b. print c. broadcast
d.none of the above
4. your company is always on the list when people are looking
to solve a particular problem.
a. To increase brand awareness
b. To generate high-quality leads
c. To grow and maintain thought leadership
d. To increase customer value
5. theories that stress the importance of customer
orientation versus the traditional market orientation.
a. traditional marketing c. contemporary
marketing
b. social marketing d. email marketing
 Additional Activities

On your Journal, start plotting marketing goal for your chosen product or
services ONLINE.
Answer Key

(Teacher shall keep the answer key until the

checking of works is completed.)
Teacher

What I Know

Choose the letter of the best answer. Write the chosen letter on a separate sheet of paper.

1. The theory of management that systematized manufacturing organizations and

coordination of procedures and processes built into internal operations.
a. Scientific Management
b. Bureaucratic Management
c. Systematic Management
d. Human Behavior Management

2. The theory of management that analyzed work using scientific methods to determine
the one best way to complete production task.
a. Bureaucratic Management
b. Scientific Management
c. Human Behavior Management
d. Systematic Management

3. The theory of management that provides rational model for restructuring complex
and mega organizations.
a. Bureaucratic Management
b. Systematic Management
c. Scientific Management
d. Human Behavior Management

4. This theory explains how managers influence others to achieve organizational

objectives through human relations and motivation.
a. Scientific Management
b. Systematic Management
c. Bureaucratic Management
d. Human Behavior Management

5. This theory applies quantitative analysis to management decisions.

a. Quantitative Management
b. Human Behavior Management
c. Systematic Management
d. Bureaucratic Management

6. The theory of management that viewed organization as an open system.

a. Bureaucratic Management
b. Quantitative Management
c. Systems Theory
 d. Human Behavior Management
7. The theory of management where managers may adapt their organizations to the
situation.
a. Quantitative Management
b. Contingency Approach
c. Human Behavior Management
d. Systems Theory

8. He was the “Father of Scientific Management”.

a. Henri Fayol
b. Max Weber
c. Frederick W. Taylor
d. Abraham Maslow

9. He was considered as the “Father of Modern Management”.

a. Frederick W. Taylor
b. Henry L. Gantt
c. Max Weber
d. Henri Fayol

10. He was the author of “Theory X” and “Theory Y”.

a. Douglas McGregor
b. Max Weber
c. Abraham Maslow
d. Henry L. Gantt

Lesson
Evolution of Management Theories
2

One wonders how organizations came to existence and how they grew. Their
existence, growth and modernity can be explained through some theories or school of
thought. While several theories have been advanced in the effort to explain the structure,
functioning and management and organizations, to date, none is considered complete, or is
accepted as being final.

What’s In

Is management a science? an art? or both science and art? Give example and justify
your answer.
 Notes to the Teacher
To be able to deliver this lesson well, the teacher must have read
the following:
Evolution of management theories
Key concepts, contributions and limitations
of management theories

What’s New

As an activity, study and analyze the diagram below and explain the evolution of
management thought from classical to contemporary approaches.

The Evolution of Management Thought

CLASSICAL APPROACHES

1890 1900 1910 1920 1930 1940

Administrative Quantitative
Systematic
Management Management
Management

Scientific Human
Management Relations

Bureaucracy

CONTEMPORARY APPROACHES
 1950 1960 1970 1980 1990

System Contingency
Theory Theory

Organizational
Behavior

What is It

Evolution of Management Theories (Santos, 1999)

The Classical Approaches

1. The Systematic Management

Key Concepts

❖ Systematized manufacturing organizations.

❖ Coordination of procedures and processes built into internal operations.
❖ Emphasis on economical operations, inventory management and control.
Contributions

❖ Beginning of formal management in U.S.

❖ Promotions of efficient, uninterrupted production
Limitations

❖ Ignored relationship between an organization and its environment.

❖ Ignored differences in manager’s and worker’s view.

2. The Scientific Management

Key Concepts

❖ Analyzed work using scientific methods to determine the one best way to
complete production tasks.
❖ Emphasized study of tasks, selection and training of workers, and cooperation
between workers and management.
Contributions

❖ Improved factory productivity and efficiency

❖ Introduced scientific analysis to workplace
❖ Piece-rate system equated worker rewards and performance
❖ Instilled cooperation between management and workers
 Limitations

❖ Simplistic motivational assumptions

❖ Workers viewed as part of a machine
❖ Potential for exploitation of labor
❖ Excluded senior management tasks
❖ Ignored relationship between the organization and its environment

3. The Bureaucratic Management

Key Concepts

❖ Weber’s Seven Characteristics of bureaucracy

❖ Structured, formal network of relationships among specialized positions in an
organization
❖ Rules and regulations standardize behavior
❖ Hierarchy defines the relationship among jobs
❖ Jobs staffed by trained specialists who follow rules
Contributions

❖ Provides rational model for restructuring complex, mega organizations

❖ Minimizes subjective personal factors that affect decision-making
❖ Consistency
❖ Predictability
❖ Reliability
❖ Stability
❖ Continuity
❖ Emphasizes the position, rather than the person, as the source of authority
❖ Promotes efficient performance of routine activities
Limitations

❖ Inefficiency due to rigid rules. Rules become an end in itself

❖ Red tape
❖ Inflexibility. Hinders timely decision-making
❖ Coldness
❖ Dehumanization. Ignores importance of people and interpersonal relationship
❖ Throttles creativity and innovativeness
❖ Slow decision-making
❖ Incompatibility with changing technology
❖ Self-perpetuating. Difficult to dismantle once established
❖ Ignores the importance of people and interpersonal relationships
❖ Accumulation of power can lead to authoritarian management

4. The Administrative Management

Henri Fayol’s 14 Principles of Management (Santos, 1999)

1. Division of Work. Specialization belongs to the natural order of things. The object of
division of work is to produce more and better output with the same effort. This is
accomplished by reducing the number of objects to which attention and effort must
be directed.
 2. Authority and Responsibility. Authority is the right to give orders and responsibility
is its essential counterpart. Wherever authority is exerted, responsibility arises.
3. Discipline. Discipline implies obedience and respects for the agreements between the
firm and its employees. Establishing agreements binding a firm and its employees
should be one of the chief preoccupations of industrial heads. Disciplinary
formalities emanate from these agreements and may involve sanctions judiciously
applied.
4. Unity of Command. As employee should receive orders from the superior only.
5. Unity of direction. Each group of activities having one objective should be unified
under one plan and one head.
6. Subordination of Individual Interest to General Interest. The interest of one
employee or group of employees should act prevail over that of the company or
broader organizations.
7. Remuneration of Personnel. To maintain their loyalty and support, workers must be
given a fair wage for services rendered.
8. Centralization. Like division of work, centralization belongs to the natural order of
things. However, the appropriate degree of centralization varies from one
organization to another. The problem is to find the measure that will give the best
overall yield.
9. Scalar Chain. The scalar chain is the chain of superiors ranging from the ultimate
authority to the lowest ranks. It is an error to depart needlessly from the line of
authority, but it is an even greater one to adhere to it to the detriment of the
business.
10. Order. A place for everything and everything in its place.
11. Equity. Equity is a combination of kindliness and justice.
12. Stability of Tenure of Personnel. High turnover breeds inefficiency. A mediocre
manager who stays is infinitely preferable to an outstanding manager who comes
and goes.
13. Initiative. Initiative involves thinking out a plan and ensuring its success. This gives
real and energy to an organization.
14. Esprit de Corps. Union is strength, and it comes from harmony among the
personnel.

The Behavioral Approaches

1. The Human Behavior Approach

Key Concepts

❖ Behavioral approach explains how managers influence others to achieve

organizational objectives through human relations and motivation.
❖ Productivity and employee behavior are influenced by the informal work group.
❖ Cohesion, status, ang group norms determine output and productivity.
❖ Managers stress employee welfare, motivation and communication.
❖ Social needs have precedence over economic needs.
Contributions

❖ Psychological and social processes influence performance.

❖ Productivity through people
❖ Macgregor’s Theory X and Theory Y
❖ Ouchi’s Theory Z
❖ Maslow’s hierarchy of needs
❖ Apocalyptic liberation
Limitations

❖ Ignored workers rationale side and the formal organization contribution to

productivity.
❖ Research findings have overturned the prescription that happy workers are more
productive.

2. The Quantitative/Management Science Approach

Key Concepts

❖ Application of quantitative analysis to management decisions.

Contributions

❖ Developed specific mathematical methods of problem analysis

❖ Helped managers select the best alternative among a set
Limitations

❖ Models neglect non-quantifiable factors

❖ Managers not trained in theses techniques and may not trust or understand the
outcomes of techniques
❖ Not suited to non-routine or unpredictable management decisions

3. The System Approach

Key Concepts

❖ Organization is viewed as an open system

❖ Management must interact with its environment to gather inputs and return the
outputs of its production
❖ Organizational objectives must encompass both efficiency and effectiveness
❖ Organization contain a series of subsystems
❖ There are many avenues to the same outcome
❖ Synergies exist where the whole is greater than its parts
Contributions

❖ Recognized the importance of the organization’s relationship with the external

environment
❖ Systems analysis is helping computer experts develop hardware as well as
software with human-like intelligence; capable of processing languages and
reasoning
❖ Major impact on manufacturing through the use of computer-aided design (CAD)
and computer-aided manufacturing (CAM)
Limitations

❖ Does not provide specific guidance on the functions and duties of managers
❖ Still have to develop techniques to effectively deal with the human aspects of
management because systems analysis has been used primarily in the
management of production processes and in the technical an decision-making
areas of management
 4. The Contingency Approach

Key Concepts

❖ Situational contingencies influence the strategies, structures, and processes that

result in high performance
❖ There is more than one way to reach a goal
❖ Managers may adapt their organizations to the situation
Contributions

❖ Identified major contingencies

❖ Argued against universal application of principles of management
Limitations

❖ Not all critical contingencies have been identified

❖ Theory may not be applicable to all managerial issues
❖ Cannot apply where quantity or number of combinations of variables are
supernumerary
Important Persons and their Contribution in the Evolution of Management

Person Contribution

1. Frederick W. Taylor An American Industrial Engineer who created a mental

revolution about how get things done in organization. By
(1856-1917) unceasingly searching through observation and studies of
actual work practices for “one best way” to do a task he
ended up as “the father of scientific management”.

2. Henri Fayol He is considered the father of modern management. His

contributions represent an important transformation in
(1841-1925) management thought. They now dominate the study of
management. Fayol’s contributions are the functions of
management – planning, organizing, commanding,
coordinating and controlling and the 14 principles of
management.

3.Max Weber A German sociologist, social historian and philosopher. He is

considered the guru of bureaucracy because of his work on
(1864-1920) studies of Germany’s government bureaucracy. He is said to
be the “father of organization theory.” He defined
bureaucracy as “the ideal pure form of organization.

4. Frank (1868-1924) and The Gilbreths working as husband-and-wife team searched

Lillian Gilbreth (1878- for the “one best way” in their study of work. They used time
1972) and motion study as their principal tool. The painstaking
studies of work motions of various types of employees and
the analysis of the time it took to perform those motions led
to increase employee productivity.

5.Henry L. Gantt (1861- Perhaps Taylor’s leading principle, focused on “control”

1919) systems for shop-floor production scheduling. His main tool
is known as Gantt Charts – a graphic illustration usually a
bar or diagram that indicates time allocations for sequential
operations and traces progress, routing, scheduling, and
 tasks in time intervals. It is a graphic means of coordinating
the flow of work; a progress report in visual form that
identifies stages of work and operational deadlines.

6. Douglas McGregor He brought fresh perspective to management. He challenged

(1906-1964) leaders to think of subordinates as responsible, capable and
creative. He is the author of Theory X assumptions lead
managers to view human nature pessimistically. In contrast,
McGregor identified a second perspective – Theory Y that
reverses these assumptions on human nature.

7. Abraham Maslow Based his theory of human behavior on the idea that
(1908-1970) individuals work to satisfy human needs, including simple
physiological needs, such as food, and complex,
psychological needs such as self-esteem.

What’s More

Activity: Complete the table

Direction: Think of concrete situations in school or home which you can use the following
principles of Henry Fayol.

Principles Situation Utilization of Principle

1. Division of Work

2. Unity of Command

3. Order
 What I Have Learned

Direction: Fill in the missing words/phrases below to complete the statement.

1. The _________________________________ systematized manufacturing organizations,

coordination of procedures and processes built into internal operations and emphasis on
economical operations, inventory management and control.

2. The ________________________________ analyzed work using scientific methods to

determine the one best way to complete production tasks and emphasized study of tasks,
selection and training of workers, and cooperation between workers and management

3. The _______________________________ is structured, formal network of relationships among

specialized positions in an organization, rules and regulations standardize behavior,
hierarchy defines the relationship among jobs and Jobs staffed by trained specialists who
follow rules

4. The administrative management includes Henri Fayol’s _______ Principles of Management

namely: division of work, authority and responsibility, discipline, unity of command, unity
of direction, subordination of individual interest to general interest, remuneration of
personnel, centralization, scalar chain, order, equity, stability of tenure of personnel,
initiative and esprit de corps.

5. The ______________________________ approach explains how managers influence others to

achieve organizational objectives through human relations and motivation, productivity and
employee behavior are influenced by the informal work group.

6. The _______________________________________________ application of quantitative analysis

to management decisions and application of quantitative analysis to management decisions.

7. The ______________________________ is where an organization is viewed as an open system,

management must interact with its environment to gather inputs and return the outputs of
its production, organizational objectives must encompass both efficiency and effectiveness,
organization contain a series of subsystems, there are many avenues to the same outcome
and synergies exist where the whole is greater than its parts.

8. The _________________________________ is situational contingencies influence the

strategies, structures, and processes that result in high performance, there is more than
one way to reach a goal and managers may adapt their organizations to the situation.
 What I Can Do

A Case Study
Direction: Read the case study below. Identify the different management
approaches/practices in the lesson and explain briefly how they are used. Use a separate
sheet of paper for your answer.

McDonalds’s Recipe for Success

“Wow, we just had a customer walk out on us!” Jim Delligatti drops his Big Mac in
midbite and bolts from the booth, rushing past four rows of customers who make up the
noonday rush at the Warrendale McDonald’s. Taking a command position behind the
counter that stretches the width of the restaurant, Jim Delligatti, by his mere presence,
spurs his twelve workers to hustle even faster.
It’s not enough that Delligatti has opened forty-seven of the famous hamburger
outlets over the past twenty-six years and has become a millionaire in the process. He hates
to see anyone leave one of his “stores” unhappy, and his white-suited crews in their white
“McNugget Mania” painter’s caps know it.
“Production – twelve burgers, six Macs,” barks the fresh-faced assistant manager
posted behind the warming bin, where wrapped burgers can remain no more than ten
minutes before being discarded.” Coming up, says a high school boy, who slaps a handful of
frozen patties on the hot, stainless steel grill. Behind him, a young woman takes buns from
a toaster and “dresses” them with quick squirts of mustard and ketchup from a silver
dispenser. She puts the pickles on by hand, taking acre to spread them out so the customer
will not get everything in one gulp. At the French-fry station, another young woman shakes
salt onto a hot batch of golden-brown potatoes and then scoops the fries into red paper
containers. With today’s crowd, none will remain in the warming bin over the seven-minute
maximum.
 The lunchtime whirl all comes together to meet one goal: to serve the customer
within sixty seconds of the order’s being placed.
As huge as it is, the McDonald’s empire really is built around individual stores, each
striving to conform to the company motto of “quality, service, cleanliness, and value.” These
standards are hammered into new franchisees at McDonald’s Hamburger “U” training
center in Oak Brook, Illinois. The way the form sees it, customers should get the same
McDonald’s quality whether they buy their hamburgers at a McDonald’s in Brooklyn,
Singapore, or Warrendale, a small community twenty miles north of Pittsburgh. Jim
Delligatti, the owner/manager of forty-seven McDonald’s outlets could use a classical
approach to management to stress organizational efficiency – the “one best way” to perform
jobs at McDonald’s – to increase productivity. As a simplified example, Delligatti might want
to check whether the silver dispenser used to apply mustard and ketchup is of the
appropriate size to require only one squirt or whether more than one squirt is necessary to
adequately cover the hamburger bun.
Delligatti also could use motion studies to eliminate unnecessary or wasted motions
by his employees. For example, are hamburgers, French fries, and drinks located for easy
insertion into customer bags, or must an employee walk unnecessary steps during the sales
process? Also, would certain McDonald’s employees be more efficient over an entire working
day if they sat, rathe than stood, while working?
The classical approach to management might also guide Delligatti in scheduling
more efficiently. By ensuring that an appropriate number of people with appropriate skills
are scheduled to work during peak hours and that fewer such individuals are scheduled to
work during slower hours, Delligatti would maximize the return on his labor costs.
Delligatti also might want to consider offering his employee some sort of bonus if
they reach certain work goals. But he should make sure that the goals tend to make
workers resentful and unproductive. For example, Delligatti might ask that certain
employees reduce errors in filling orders by 50 percent during the next month. If and when
these employees reached the goal, Delligatti could give them a free lunch as a bonus.
Comprehensive analysis of management implies that Jim Delligatti might be able to improve
his McDonald’s restaurants by evaluating the entire range of his managerial performance –
especially with regard to organizational efficiency, the handling of people, and appropriate
management action. For example, Delligatti should check with his employees to make sure
they are receiving orders from only one source – that a manager isn’t instructing an
employee to man the French fry station while moments later an assistant manager tells the
same employee to tend to the grill. Along the same lines, Delligatti might want to verify that
all of his employees are being treated equitably – that fry cooks, for example, don’t longer
work breaks than order takers.
The behavioral approach to management suggests that Delligatti should consider
the people working for him and evaluate the impact of their feelings and relationships on
the productivity of his restaurants. He could, for example, try to make the work more
enjoyable, perhaps by allowing his employees to work at different stations (grill, beverage,
French fry, cash register, etc.) each day. He might also consider creating opportunities for
employees to become more friendly with one another, perhaps through company sponsored
softball teams. In essence, the behavioral approach to management stresses that Delligatti
should recognize the human variable in his restaurants and strive to maximize the positive
effects. Jim Delligatti could use the management science approach to solve any operational
problems that arose. According to the scientific method, Delligatti would first spend some
time observing, what takes place in one of his restaurants. Next, he would use these
observations to outline exactly how the restaurants operates as a whole. Third, he would
apply this understanding of restaurant operations by predicting how various changes might
help or hinder the restaurant as a whole. Before implementing possible changes, he would
test them on a small scale to see if they actually affected the restaurant as desired.
If Delligatti were to accept the contingency approach to management, his actions as
a manager would depend on the situation. For example, if some customers hadn’t been
served within sixty seconds because the deep-fat fryer had unexpectedly broken down, then
Delligatti probably would not hold his employee responsible. But if he knew that the fryer
had broken down because of employee mistreatment or neglect, then his reaction to the
situation would likely be very different.
Delligatti cold also apply the system approach and view each of his restaurants as a
system, or a number of interdependent parts that function as a whole to reach restaurant
objectives. Naturally, each restaurant would be seen as an open system – a system that
exist in and is influenced by its environment. Major factors within the environment of a
McDonald’s restaurant would include customers, suppliers, competitors and the
government. For example, if one of the McDonald’s fast-food competitors were significantly
lower its price for hamburgers to a point well below what McDonald’s was asking for a
hamburger, Delligatti might be forced to consider modifying different parts of his restaurant
system in order to meet or beat that price. (Santos, 1999).

Assessment

Activity: Critical Thinking

Direction: “McDonald’s Recipe for Success”, were written to help you better understand the
management concepts in this module. Answer the following discussion questions. Use the
space provided for your answer.

1. What problems do you think an individual like Delligatti faces in managing a

McDonald’s restaurant?

2. What action (s) do you think a manager like Delligatti would have to take to solve
these problems?

3. From what you know about McDonald’s restaurants, how easy would it be to hold
Delligatti’s job? Why?
 Additional Activities

Why is the culture of a society or group important in the practice of management?

Explain your answer.
 Answer Key

Assessment What's More Assessment

Case/Study Complete the table Case/Study
Critical Thinking Division of Work Critical Thinking
Unity of Command
McDonalds’s Recipe for Order McDonalds’s Recipe for
Success Success
Answer Nos. 1 – 3 Answer Nos. 1 – 3

What I Have Learned

1. systematic management
2. scientific management
3. bureaucratic management
4. 14
5. human behavior
6. quantitative or management
science approach
7. system approach
8. contingency approach
 What I Know

Choose the letter of the best answer. Write the chosen letter on a separate sheet of paper.

1. A person who has the responsibility for the activities of other people in an
organization.
a. Utility
b. Manager
c. Secretary
d. Clerk

2. It is the ability to work with and for people, to communicate with others, and to
understand others’ needs.
a. Conceptual skills
b. Technical skills
c. Human skills
d. Management skills

3. It is the ability to understand all the organization’s activities, how its various parts
fit together, and how the organization relates to others.
a. Management skills
b. Human skills
c. Technical skills
d. Conceptual skills

4. It refers to the ability to use tools, equipment, procedures and techniques of a

specialized field.
a. Technical skills
b. Management skills
c. Conceptual skills
d. Human skills

5. It is the roles that primarily require a manager to deal with people.

a. Informational Role
b. Interpersonal Role
c. Management Role
d. Decisional Role

6. The roles that flow from and are based on a manager’s interpersonal and
informational roles.
a. Management Role
b. Informational Role
c. Decisional Role
d. Interpersonal Role
 7. Those roles that require a manager to gather and communicate information within
the hierarchy and to the outside world.
a. Informational Role
b. Management Role
c. Interpersonal Role
d. Decisional Role

8. The manager serves as a communication link between people and groups.

a. Informational Role
b. Figurehead Role
c. Interpersonal Role
d. Liaison Role

9. A manager decides how a group will use all the available resources.
a. Negotiator
b. Resource Allocator
c. Disturbance Handler
d. Liaison Role

10. The managers speak for the organization, explaining its stand on certain issues,
policies and practices that affect its constituency or stakeholders
a. Monitor Role
b. Spokesperson
c. Disseminator Role
d. Liaison Role

Lesson
Functions, Roles and Skills of a Manager
3

The term “manager” is another widely used term. We limit the use of the word
“manager” to refer to those persons responsible for directing the activities of other people.
While it is true that people also “manage” materials, machines and other physical
processes, we use the term “manager” to apply to a person wo has responsibility for the
activities of other people in an organization.

The president of a business firm is a manager, a general commanding troops is a

manager, the president of the university is a manager, and the conductor of a symphony
orchestra is a manager. So are lower level personnel who head subunits in such
organization. What they have in common is that they are responsible for the activities of the
people whom they direct.

What’s In

How does one decide who is and who is not a manager in a given organization? For
example, is the operator of a one-person business, such as a corner grocery store, a
manager?
 Notes to the Teacher
To be able to deliver this lesson well, the teacher must have read
the following:
Levels of a Manager
Roles of a Manager
Skills of a Manager

What’s New

As an activity, study and analyze the diagram below and explain. Use a separate
sheet if necessary.

How Managers Spend Their Time During a Typical

Day
Scheduled Meetings
Desk Work
4% 8%
Unscheduled Meetings
12%
Tours around facilities
50%
Telephone Calls
26%

What is It

Level of Managers

1. Top-level Managers.
 The strategic managers who focus on long term organization concerns; its stability,
development, progress, and over-all efficiency and effectiveness.

2. Middle-level Managers.

The tactical managers in-charge of the organization’s departments. They formulate

specific objectives and activities based on strategic goals set by top-level managers.

3. Lower-level Managers.

The front-line or operational managers. They are responsible for the supervising of
the organization’s day to day activities.

Role of Managers

1. Interpersonal Roles.

The roles that primarily require manager to deal with people.

a. Figurehead Role. The manager engages in symbolic activities, he or she may

have to appear at an awards ceremony or make a public presentation.
b. Leadership Role. A manager directs the activities of certain employees,
coordinates the work of others, sometimes hires and fires subordinates, does
performance evaluations, and recommends employees for promotion.
c. Liaison Role. The manager serves as a communication link between people and
groups.

2. Informational Roles.

Those roles that require manager to gather and communicate information within the
hierarchy and to the outside world.

a. Disseminator Role. A person who spreads information, a manager delivers

information to subordinates.
b. Monitor Role. A manager who gathers information, he or she reports important
changes, problems, and opportunities to higher levels in the hierarchy.
c. Spokesperson. The managers speak for the organization, explaining its stand on
certain issues, policies and practices that affect its constituency or stakeholders.

3. Decisional Roles.

Roles that flow from and are based on a manager’s interpersonal and informational
roles.

a. Entrepreneurial Role. A manager looks for and implements new ideas to make
his or her group more effective. A marketing manager might, for instance, adopt
a new promotional idea, or a production manager might accept a subordinate’s
suggestion for streamlining a manufacturing process.

b. Disturbance Handler. A manager makes decisions to keep his or her group

operation in the face of circumstances that are out of the ordinary. In this role, a
manager might have to devise a way to keep parts coming into an assembly line
despite a strike that has closed down a primary supplier.
 c. Resource Allocator. A manager decides how a group will use all the available
resources. Managers rarely have all the resources they feel they need, so they
must decide who get additional clerical help, who must give up a computer
terminal, what types of machine to buy, and dozens of similar issues. Of course,
s manager does not make these decisions in a vacuum, subordinates will provide
input, whether wanted or not.

d. Negotiator. The manager acts as a company representative either in dealings

externally with outside vendors or government agencies or internally in resolving
dispute between subordinates. And, depending on the company, a manager may
also have to perform this role in convincing another department to provide the
support that his or her group needs for a project.

Skills of a Managers

1. Human Skills. The ability to work with and for people to communicate with others,
and to understand others’ needs.

2. Technical Skills. The ability to use the tools, equipment, procedures, and techniques
of a specialized field.

3. Conceptual Skills. The ability to understand all the organization’s activities, how its
various parts fit together and how the organization relates to others.

What’s More

Activity: Understanding the Foundations for Managerial Success

Direction: You may agree or disagree with the following statements by putting a check mark
on your chosen answer.

Successful Managers are those who: Agree Disagree

1. look after their self-interests first
2. inspire their subordinates to do their best in assigned tasks
3.can craft messages that could be understood clearly by
subordinates
 4. have self-discipline
5. believe in using punishment to make subordinates follow
6. work well with others
7. do not believe in due process
8. practice logical thinking before decision-making
9. always consider the “general good”
10. have the ability to listen what others seek to communicate
11. respect everyone and has the ability to maintain career
advancement
12. generally “goes the extra mile” for those around him or her

Seven Agree answers will show the student’s sufficient or average understanding of the
foundations for managerial success. Eight to nine Agree answers will indicate superior
understanding of the said foundations for managerial success.

What I Have Learned

Direction: Fill in the blank to complete the statement.

1. _________________ managers who focus on long term organization concerns; its stability,
development, progress, and over-all efficiency and effectiveness.

2. __________________ managers in-charge of the organization’s departments and they

formulate specific objectives and activities based on strategic goals set by top-level
managers.

3. Lower-level managers are the front-line or ______________________________. They are

responsible for the supervising of the organization’s day to day activities.

4. Interpersonal roles primarily require manager to deal with __________________.

5. Figurehead role where the manager engages in ____________________ activities, he or she

may have to appear at an awards ceremony or make a public presentation.
6. Leadership Role where a manager directs the activities of certain employees, coordinates
the work of others, sometimes hires and ___________________________, does performance
evaluations, and recommends employees for promotion.

7. Liaison role where the manager serves as a ___________________________ link between

people and groups.

8. Informational roles require manager to gather and communicate information within the
________________ and to the outside world.

9. _________________________role spreads information, a manager delivers information to

subordinates.

10. Monitor role manager gathers information, he or she reports important changes,
problems, and opportunities to _____________________ in the hierarchy.

11. _______________________ the managers speak for the organization, explaining its stand
on certain issues, policies and practices that affect its constituency or stakeholders.

12. ______________________ at flow from and are based on a manager’s interpersonal and
informational roles.

13. Entrepreneurial role manager looks for and implements ___________________ to make his
or her group more effective.

14. _______________________ a manager makes decisions to keep his or her group operation
in the face of circumstances that are out of the ordinary.

15. Resource allocator a manager decides how a group will use all the available
______________________.

16-17. Negotiator the manager acts as a company representative either in dealings

__________________ with outside vendors or government agencies or ___________________ in
resolving dispute between subordinates.

18. __________________ skills the ability to work with and for people to communicate with
others, and to understand others’ needs.

19. __________________ the ability to use the tools, equipment, procedures, and techniques
of a specialized field.

20. ___________________ skills the ability to understand all the organization’s activities, how
its various parts fit together and how the organization relates to others.

What I Can Do

Independent Activity 1.1.

Direction: Interview a family member, relative, neighbor or a friend working in a private or
public sector. The person whom you have chosen can be at any level of management. Find
out him or her the following details.
 a. His/her position in the organization
b. Activities or functions performed in his/her role
c. Skills he/she thinks are necessary to be successful in the job
d. How he/she spends an average day at work

Assessment

Independent Activity 1.2

Direction: Search in a google or old magazines, newspaper, books or published article at least
three (3) Chief Executive Officers (CEO) or Presidents of known corporation whose
accomplishment are discussed in the site. Describe their work as top-level managers of their
respective corporations. Relate your description of their work with the functions, roles and
skills of managers discussed in this module. Use extra sheet of paper for your answer.

Rubrics:

Criteria Performance Level of Score

Performance

a. Beliefs or accomplishments of three Demonstrate all Excellent 5

CEO/President related to the functions, criteria
roles and skills of managers

b. Beliefs or accomplishments of two Only two Very Good 4

CEO/President related to the functions, CEO/President
roles and skills of managers with their beliefs
or
accomplishment
related to the
functions, roles
and skills of
managers

c. Beliefs or accomplishments of one Only one Good 3

CEO/President related to the functions, CEO/President
roles and skills of managers with their beliefs
or
accomplishment
related to the
functions, roles
and skills of
 managers

d. Beliefs or accomplishments of CEO/President Fair 2

CEO/President somewhat related to the with their beliefs
functions, roles and skills of managers or
accomplishment
somewhat related
to the functions,
roles and skills of
managers

e. Beliefs or accomplishments of CEO/President Poor 1

CEO/President not related to the with their beliefs
functions, roles and skills of managers or
accomplishment
not related to the
functions, roles
and skills of
managers

Additional Activities

Independent Activity 1.3.

Ask the students to use anything e.g. ballpen, crayons, empty box, piece of paper and
the like to demonstrate how managers could get involved with teams and teamwork as: team
leader/supervisor, facilitator of a team acting as a specific task force, helpful participant in a
team project, and external coach/sponsor of a problem-solving team. Correct positioning of
the manager and the team members indicate the student’s perceptions of the manager’s
involvement/role in teamwork. Write down all important knowledge you will learn from the
activity.

Answer Key
 What I Have
Learned
1. top level
2. middle level
3. Operational
management
4. people
5. symbolic
6. fire
subordinates
7.communication
8. hierarchy What's More What I Know
9. disseminator Agree Answer:
10. higher levels B
11. spokesperson C
2,3,4,6,8,9,10,11,12 D
12. decisional role
13. new ideas Disagree Answer: A
14. disturbance B
handler 1,5,7 C
15. resources A
16. internally C
17. externally B
18. human 10.
19. technical B
20. conceptual

References

Cabrera, H.F., Altarejos, A. & Riaz, B. (2016). Organization and Management Teacher’s Manual for
Senior High School. Publsihed by Vibal Group, Inc.

Iñigo, C.E. (2002). Management for Filipinos, Principles & Applications, Comprehensive & Simplified.
Published by: Design PlusP

Rodriguez, R.A. & Echanis, E.S. (1993). Fundamentals of Management, Text and Philippine Cases,
Second Edition. Published by: Diwata Publishing Inc.

Santos, E.T. (1999). Organization and Management, International Academy of Management and
Economics. Published by: IAME Design Studio: The Printing Press
For inquiries or feedback, please write or call:

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