MODULE FOR

ORGANIZATION & MANAGEMENT

- SENIOR HIGH SCHOOL

PREPARED BY:

MARIA LOURDES P. CAMILOTES, MM

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 LICEO DE CAGAYAN UNIVERSITY
High School Department
S.Y. 2016 – 2017
First Semester

MODULE

I. GRADE LEVEL: Grade 11

II. SUBJECT TITLE: ORGANIZATION AND MANAGEMENT

III. SUBJECT CATEGORY:

IV. COURSE DESCRIPTION: This course is designed to familiarize the students with the
basic concepts, principles, and processes related to business organization, and the functional
areas of management. Particular emphasis is given to the study of management functions like
planning, organizing, leading, and controlling, and orient the students on the importance of these
functions and the role of each area in entrepreneurship.

TABLE OF CONTENTS

PREFACE

Page

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MODULE 1 The Management Concept
Lesson 1: Nature of Management ………………………………………….5-6
Lesson 2: The Evolution of Management ………………………………….7-9
Lesson 3: Functions and Roles of a Manager ………………………………10-12
Unit Test I…………………………………………………………………….13

MODULE 2 The Firm and Its Environment

Lesson 4: Environmental Scanning: Swot And Pest Analysis………………14
Lesson 5: The Local and International Business
Environment of the Firm ………………………………………...15-16
Lesson 6: The Business Organization………………………………………16-17
Lesson 7: The Ethical Environment of the Firm …………………………...17-18
Experiencial Exercise II-A ………………………………………………… 19

MODULE 3 Planning, Organizing, and Staffing

Lesson 8: Planning, and Decision-Making …………………………………20-23
Lesson 9: Nature of Organizations …………………………………………23-29
Lesson 10: Staffing in the Organization …………………………………….29-40
Experiencial |Exercise 3 ……………………………………………………..41

MODULE 4 Leading and Controlling

Lesson 11: Leading the Organization ………………………………………42-50
Lesson 12: Controlling the Organization ………………………………….51-55
Experiential Exercise 4-A …………………………………………………..56

MODULE 5 Introduction to the Different Functional Areas of Management

and Special Topics in Management
Lesson 13 Functional Areas of Management …………………..……………57-60
Lesson 14 Special Topics in Management …………………….…………...61-64
UNIT TEST ………………………………………………………………….65
BIBLIOGRAPHY ……………………………………………………………66

INTRODUCTION

Management can be applied in many activities, particularly in the conduct of one’s job
and responsibilities. Business establishments, government agencies, private organizations, even
small social groups of friends and neighbors employ people, resources, and equipment to
conduct the various activities that need to be coordinated to ensure smooth and successful flow
of activities.

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 Learning the important concepts in management facilitates understanding of what it
takes to make a business or any activity successful.

This module is written for Organization and Management, a specialized course in the
Accountancy, Business Management (ABM) track of the Senior High School K to 12
Curriculum.

It aims to familiarize the students with basic concepts, principles, and processes related
to business organization, and the functional areas of management.

This module is divided into five modules, consisting of 14 lessons that give a
comprehensive summary on the discussion of the principles, functions and concepts in
management. The discussion of lessons are designed to be student-friendly and easy to read and
understand.

The lessons will provide the students experiential exercises that highlight ideas or clarify
significant terms related to the discussion.

MODULE I. The Management Concept

LESSON 1.: Nature of Management

1.1 Definitions of Management

✔ Management is a science as well as an art. It is a body of

knowledge whose ideas and principles have become the basis of
organizational frameworks employed by many businesses and
organizations.

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 ✔ Management as “the art of getting things done through the efforts
of other people. This definition is drawn from the biography of
Mary Parker Follett (1868–1933) written by P. Graham, Mary
Parker Follett: Prophet of Management (Boston: Harvard Business
School Press, 1995).

✔ Management is the process of planning, organizing, leading, and

controlling the activities of an organization effectively and
efficiently to achieve its goals.
✔ It plays a crucial role in every organization, especially in today’s
world, that is much more complex and where constant change is
the norm.

1.2 Efficiency and Effectiveness

✔ Efficiency is the ability to maximize output with minimum input. It is

often referred to as “doing things right,” and seeks to limit the wasted
input which is costly for a business.

✔ Effectiveness, meanwhile, is the capacity to attain an intended

objective or result. It is often called “doing the right thing.” The
intention is to meet the desired goal regardless of the amount of input
required.

● Factors Influencing Management:

1. Globalization refers to the phenomenon of growing interconnectivity and interdependent

relations among nations. This growth has been greatly influenced by the advancements
in technology, transportation, communication, and education, as well as the gradual
deregulation of trade.
2. Technology is one of the main driving forces of business. Advancements in this area have
immensely improved business trends. New technologies have rendered business functions
and related tasks more easily accomplished, bringing about increased levels of
productivity.
3. Sustainability and Corporate Social Responsibility
o Sustainability in business means that companies should plan and conduct long-
term business operations to ensure minimal negative impact on the social,
cultural, and economic aspects of their external environment or community

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 o Corporate social responsibility is defined as the willingness of companies to run
their business operations in a sustainable and responsible manner.
4. Psychology is an important facet in management since it focuses on developing people
management skills and analyzing customer satisfaction
5. Ecosystems - business ecosystem consists of a group of firms that provide related
products and services. The emergence of business ecosystems has resulted in
improvements and innovations in industries.

LESSON 2. The Evolution of Management Theories

2.1 The Development of Management- Managers today have wrestled with the
same problems and issues that business executives had confronted with thousands
of years ago.

✔ 1100 BC- the four managerial functions by the Chinese.

✔ 400 – 350 BC- developed scientific approach to work by the Greeks, mustered
decentralized management.
✔ Medieval Period- Venetians improved production by standardizing the assembly
lines using an inventory system and building warehouses.

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 ✔ 1780 – 1840- Advent of industrial revolution.

✔ Early 20th Century- business schools flourished, Wharton School and Amos Tuck
Schools offered management courses.
✔ 20th Century to Present- US companies have engaged in manufacturing as the
core business

2.2 The scientific management theory - Frederick W. Taylor. He introduced

the four principles of scientific management which are as follows:

1. Replace rule-of-thumb methods with those that are scientifically

proven.

2. Select, train, and develop each worker based on scientific methods.

3. Cooperate with the workers to ensure that scientific methods are being
observed and implemented in their work.

4. Divide work between managers and workers to ensure that managers

apply the scientific management principles while workers perform the
tasks using scientific methods.

2.3 Administrative Management Theory- Henri Fayol proposed the next

important approach in management which emphasizes the perspective of senior
managers as administrators of the organization. Fourteen principles of
management which consist of the following:

1. Division of work - divide work into specialized tasks and assignment of duties
and responsibilities to specific tasks.

2. Authority- delegation of authority

3. Discipline - Clarity of expectation and punishment of violations.

4. Unity of Command - Assignment of an employee to only one supervisor.

5. Unity of Direction - The efforts of employees are guided toward the attainment
of organizational objectives.

6. Predominance of the General Interest - The interests of the organization must

be prioritized over the individual interests of employees.

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 7. Remuneration - The efforts of employees must be systematically rewarded in
line with the organization’s vision and mission.

8. Centralization - The roles of all employees must be clarified, with emphasis on

the distinction between superior and subordinate roles.

9. Scalar chain - Communication should be opened within the chain of command.

10. Order - The organization of jobs and materials must be done in an orderly
fashion.

11. Equity - Fairness and order must be practiced in order to maintain employee
commitment.

12. Stability and Tenure of Personnel - The organization must actively promote
employee’s loyalty to the organization.

13. Initiative - Employees are encouraged to act on their own in support to the
objectives of the organization.

14. Esprit de corps - The organization must promote teamwork and unity of
interest between the employees and management.

Other contributors to administrative management are as follows:

✔ Max Weber, a German sociologist

✔ Chester Barnard and Mary Parker Follet. Barnard, a former

president of the NewJersey Bell Telephone Co.

2.4 Human Relations Theory - The human relations theory focuses on the social
element in the workplace, and considers the influence of interpersonal relationships,
social conditioning, and group norms in determining the performance of workers.

The Contributors are as follows:

✔ Elton Mayo, an Australian psychologist, who used his expertise to
implement improvements in the workplace.

✔ Abraham Maslow- He argued that individual behavior is primarily

influenced by certain needs.

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 MASLOW’S HIERARCHY OF NEEDS:

Self-
Actualization

Esteem -
recognition
from oher
people

Love/Belonging- needs
for friends and
companions, and an
intimate relationship.

Safety -security

Physiological-biological requirements for

food, water, air, and sleep

2.5 Quantitative Management Theory - The two main branches of

quantitative management are :
✔ management science - uses mathematics in problem-solving and
decision-making.

✔ operations management - seeks to apply ideas and models from

management science into the actual workplace in dealing with
managerial situations.
✔ Management information system organizes and presents data to aid
managers in making decisions.

2.6 Systems theory - considers the organization as being composed of various

interrelated parts that work together to achieve a common goal

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 2.7 Contingency theory- considers the unique characteristics of managers, as
well as the effect of environmental factors, in addressing management problems
and situations.

2.8 Quality Management - emphasizes consistency in an organization and the

production of high quality products and services. Quality must be continually
maintained through regular evaluation, testing, and the implementation of
improvements in the organization.

LESSON 3. Functions and Roles of a Manager

✔ The Manager – is a person responsible for the work performance of group

members. A manager holds the formal authority to commit organizational
resources, even if the approval of others is required.

3.1 The main functions of management are the following:

● Planning – involves setting goals and figuring out way of reaching them. It is the central
function of management.
● Organizing- is the process of making sure the necessary human and physical resources ae
available to carry out a plan and achieve organizational goals.
● Leading- Managers help the company to achieve its objectives by influencing their
subordinates to perform the tasks assigned to them. Managers encourage the employees
to live out the company’s vision in their job performance
● Controlling- generally involves comparing actual performance to a predetermined
standard.

Major roles of managers:

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3.2 These skills are as follows:

1. conceptual skills - the ability to see the organization as a total entity.

2. human skills - the ability to work effectively as a team member and to build cooperative
effort in the unit.
3. technical skills - involves an understanding of and proficiency in a specific activity that
involves methods, process, procedures, or techniques.

3.3 Managers can be classified into three levels of management which are as follows:
1. The top level management is responsible for strategic decisions for the company.
2. The middle managers are responsible for carrying out the decisions of the top-level
management.
3. The low level managers or supervisors report to middle managers and are responsible for
the employees or workers under them.

UNIT TEST I

Applications:
1. Read and analyze each scenario and, encircle the letter that corresponds to the
management principle illustrated in each item. Briefly explain your answer.
1. A smartphone manufacturer gets an order for manufacturing 1,000 units. He has 50
workers who can do the job. There are two ways to complete this order. The first method
is that 200 units will be assigned for every 10 workers. The second method is to distribute

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 the different parts of the smartphone units to all the 50 workers in a manner that only one
group of workers does the same job for all the 1,000 units.
a. Unity of command b. Remuneration c. Equity d. Division of work

2. In one company, a punishment is imposed on employees who work short of their full
capacity on purpose. Such actions are characterized as a violation since they expressly
agreed in their job contract that they will perform their duties to the best of their abilities.
a. Stability b. Discipline c. Unity of direction d. Scalar chain

3. A team meeting was held in an organization. The team leader gave some suggestions
regarding improvements on the current project plan. These suggestions, however, require an
employee to lead a team on a challenging task. One eager team member volunteered himself
for the task and promised to do his best to accomplish it.
a. Authority and responsibility b. Centralization c. Esprit de corps d. Initiative

EXPERIENTIAL EXERCISE I-A

A. Visit to the Mall- Which particular spots/places in a mall do you usually go to? Why?
B. How do you assess customer traffic in malls? How do customers behave during
weekends? What about the employees of the mall?
C. Observe a particular employee (cashier, salesperson, boutique manager, security guard,
etc.) and write your observation on a sheet of paper.

EXPERIENTIAL EXERCISE I-B

A. Planning your future –Group yourselves into five (5) and answer the following
questions and present it to the class.
1. With the discussion on the evolution of management, identify the goals that you wish to
accomplish in the next three years?
2. Among your personal characteristics, which do you think will help you accomplish your
goals?
3. What are your negative traits which may prevent you from accomplishing your
objectives? State how you can improve yourself.

4. Imagine yourself as an entrepreneur who wishes to engage in a business in your

community. What type of business do you wish to establish? Do you see yourself as a
sole proprietor, a partner in a business venture, or a high-ranking officer in a big

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 corporation? What achievements or goals do you envision to achieve in your company?
How will you attain these goals?

MODULE 2 : The Firm and Its Environment

LESSON 4. Environmental Scanning: Swot And Pest Analysis

4.1 Environmental scanning is the monitoring and evaluation of information from the
external and internal environment.
The following are three modes of environmental scanning:
1. Ad-Hoc scanning - determines whether a problem is either external or internal.
2. Regular Scanning - usually done at least once a year or at regular intervals.

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 3. Continuous Scanning - refers to the continuous collection of data on a broad range
of environmental factors.

4.2 SWOT Analysis - is defined as a technique used in identifying the Strengths and
Weaknesses of a company, as well as the Opportunities and Threats confronting it.

✔ STRENGTHS (How does your company do better than others?)

✔ WEAKNESSES (What aspects of your company need to be improved?)

✔ OPPORTUNITIES (What trends/conditions can positively create an

impact on your company?)
✔ THREATS (What trends/conditions can negatively create an impact on
your company?)

4.3 PEST Analysis - is a method used in analyzing the Political, Economic, Social, and
Technological forces affecting the company.
✔ Political factors -include laws, regulations, and restrictions that may
intervene or affect the company’s course of business.
✔ Economic factors - include economic growth, interest rates, exchange
rates, and inflation rate.
✔ Social factors - include demographic aspects such as age, group
affiliations, religion, civil status, and the economic status of consumers.
✔ Technological factors - include research and development activities,
automation, licensing, patenting, technological shifts, and outsourcing
decisions.

LESSON 5. The Local and International Business Environment of the Firm

5.1 Our Local Business Environment -The Philippine business environment is

influenced by a lot of factors both in the microenvironment and macro
environment.
✔ Intense weather conditions can have adverse effects especially on businesses
engaged in food production and agriculture.

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✔ adverse weather phenomena, such as typhoons and droughts, may result in the
loss of crops which leads to an increase in food prices
✔ Natural disasters such as earthquakes can bring about disruptions in businesses
and industries due to property damage and casualties.
✔ Philippine culture should also be considered by businesses especially when they
endeavor to provide products and services in the market.

5.2 The International Business Environment – A company operating with

international branches should take note of the political environment, specifically
the stability of the government of the country where the business is established.

✔ Many international companies take advantage of lax labor laws in certain

countries like China where they build and operate factories in these areas to take
advantage of cheap labor costs.
✔ Infrastructures that support economic activities such as railroads, ports, power
plants, schools, commercial establishments, markets, utilities, and communication
systems should be evaluated.
✔ Cultural differences are part of the social environment factors. Companies that
enter into the international market should learn the proper cultural practices and
taboos.
✔ It should ensure the compatibility of the local technology to the technology it
employs in its operations.

5.3 Phases of economic development - Developments in the global economy are

influenced by changes in two significant aspects: (1) the capacity to produce or
manufacture and (2) the capacity to distribute or transport.

The five major Phases of Economic Development are as follows:

1. Mercantilism
– Countries accumulate wealth through trade relations with other
countries and colonies.
2. Industrial Revolution
– Industrial cities emerge and trade flourished.

3. Fordism
– This phase saw the rise of multinational corporations made possible the
pioneering work of Henry Ford of Ford Motor Company.

4. Post-Fordism

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 - There are now computer-controlled tools and efficient techniques
which customize and tailor-made the production process to a particular
location.
5. Globalization
– The current economic phase is in the age of globalization where
companies are operating within a global marketplace and economy.

5.4 The Role of Business in the Economy

The business sector plays a vital role in the economy as business transactions
enable the flow of money and resources in and out of the country. An active
business sector will result to increased profits and better conditions for emerging
businesses, leading to economic growth.
✔ Manufacturing

✔ Distribution

✔ Delivery

✔ selling of products

✔ providing different kinds of services to the consumers

LESSON 6: The Business Organization

Forms of Business Organizations

6.1 There are three forms of business organization based on ownership structure:
1. Sole Proprietorship - The company is owned by one person who is
usually hands-on in managing the day-to-day activities.
2. Partnership - The ownership of the business is shared by two or more
members.
✔ General partnership

✔ Limited partnership
3, Corporation- It is treated like an individual person with benefits from
certain rights as well as obligations and responsibilities. A corporation can
enter into contracts, secure loans, sue and be sued, hire employees, and pay
taxes

The following are two types of corporation:

1. Stock corporation – This has capital stock divided into shares and
dividends and surplus profits are given to shareholders depending on the
number of shares held.

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 2. Non-stock corporation – This does not issue shares of stock and is
established primarily for public interests such as a foundation for
charitable, educational, social, cultural and other similar purposes.

6.2 Foreign Business Organizations - These businesses are considered representatives

of foreign corporations and are regulated by the government.
✔ Branch office

✔ Representative office

✔ Regional headquarters (RHQ)

✔ Regional operating headquarters (ROHQ)

❖ Republic Act 8756 - a multinational company may establish a

regional headquarters or regional operating headquarters under
existing laws aside from the Philippines and with branches,
affiliates, and subsidiaries in the Asia Pacific Region and other
foreign markets.

6.3 Classification of Businesses

✔ Service business

✔ Merchandising business

✔ Manufacturing business

✔ other businesses that cannot be classified into any of the three types like
agriculture, aquaculture, and mining companies.

LESSON 7: The Ethical Environment of the Firm

7.1 The Ethical Environment of the Firm

✔ Business Ethics and Management
- Ethical issue is a situation wherein an individual must decide which among
several alternatives are morally right or wrong.
✔ Generally, business ethics sets the moral standards for any kind of business
function.
7.2 Perspectives on Ethics

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 ✔ The five guiding principles are as follows:
1. Universalism
– This is a principle which states that all people should have
certain values like honesty, respect, and cooperation.
2. Egoism – This is a principle which promotes the greatest good to
oneself. It is focused on the perspective that people ultimately act for
self-advancement, no matter how good their intentions are
3. Utilitarianism
– This is a principle which focuses on the greatest good for the
greatest number of people.
4. Relativism
– This is a principle which states that ethical behavior is based on a
person’s own and other relevant people’s opinions and viewpoints.
5. Virtue ethics
– This is a principle which states that morality depends on the
maturity of a person with good moral character.

7.3 Corporate Integrity - refers to that sense of “wholeness” created by the right
relationships among the members of the corporation.
The Five dimensions of Corporate Integrity:
1. Cultural dimension holds the most impact to the internal company
relationships.
2. Interpersonal dimension focuses on the relationships of the self with
others.
3. Organizational dimension considers the main purposes of the
business, particularly the economic and financial purpose, managerial
purpose, and civic purpose.
4. Social dimension views the organization as actively engaging with
society.
5. Natural dimension looks into how the organization relates to nature.

7.4 Corporate Social Responsibility

- This refers to business operations and activities that have the welfare
of society in mind.

✔ Economic responsibility - the company should produce goods and services with
reasonable prices.
✔ Legal responsibility - the organization should comply with the local and
international laws that apply to their business operations.
✔ Ethical responsibilities - include establishing norms, standards, mores, and
practices that reflect the company’s fairness to the consumers, employees,
shareholders, and the community.

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 ✔ Philanthropic responsibilities - include the initiation of voluntary activities that
include establishing corporate programs, giving to charitable institutions, and other
similar charitable causes.

EXPERIENTIAL EXERCISE II-A

GROUP DISSCUSSION QUESTIONS.

1. What do you think is the main factor which is attributed to the success of Jollibee?

2. Why is Ayala Corporation considered an example of an “excellent business partner”?

3. Being a potential business owner, what will be your own version of an “aggressive growth
strategy”?

4. Why is it important for companies and organizations to maintain corporate integrity?

5. From your own point of view, what are the Filipino values and issues, that should define
corporate social responsibility in our local business environment?

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 MODULE 3. Planning, Organizing, and Staffing

LESSON 8: Planning and Decision-Making

8.1 The Nature Of Planning

✔ Planning is a primary management function.

✔ Planning is the function of management that involves setting

objectives and determining a course of action for achieving those
objectives.
✔ Planning requires that managers be aware of environmental
conditions facing their organization and forecast future conditions.
✔ It also requires that managers be good decision makers.
8.2 . Vision and Mission Statements
✔ Vision – indicates the company’s “ dream” what it aims to become in the
future.
✔ Mission statement – identifies the company’s reason for existence. . A good
mission statement identifies the company’s products and services; the
customers’ needs that the company seeks to satisfy; the target markets that it
wants to serve; and the approach to be taken to satisfy customers’ needs.

Characteristics of effectively- worded vision statements:

1. Graphic
– The vision projects to the market the kind of company that the
management wants to create and the kind of company it aspires to be.
2. Directional
– It describes the path where the company wants to go and presents
specific plans to move forward in the future.
3. Focused
– The vision is very specific so managers are properly guided on
what to do in terms of resources and strategies.
4. Flexible
– Although the vision should be focused on, it allows room for
managers to change based on market situations, technological
advancements, and customer preferences.
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 5. Feasible
– The vision is achievable and realistic.
6. Desirable
– The vision is clear on why the path is practically sensible and
serves the interests of members in the long run.

7. Easy to communicate
– The vision is easy to understand, articulated, and can be
simplified into a powerful slogan.

8.3 . Goals and Objectives

✔ Goals are specific accomplishments or action plans that are usually attained
after a long period of time.
✔ Objectives refer to action plans that involve shorter periods of time and more
measurable outputs.

8.4. Types of Plans

1. Strategic plans - are usually broad plans based on the company’s vision,
mission, and values, and addresses the company as a whole.
2. Tactical plans - translate broader plans into functional goals for each area or
department.
3. Operational plans - also involves the formulation of ongoing plans that define
specific operations of the organization. Ongoing plans can be in any of the
following forms:
a. Policy – a set of principles that guide managers in addressing a
particular issue.
b. Rule – a regulation which describes and regulates the functions of
an organization.
c. Procedure – a step-by-step process in accomplishing a task or
achieving an objective.
✔ Contingency plan - is a special plan created for unexpected scenarios or
changes. All plans, no matter how carefully laid-out, are not fully error-
free.

8.5 Planning at Different Levels in the Firm

✔ The planning process requires that plans and strategies are formulated at
different levels of the firm.
1. Top-level Management Planning - is essential for a diversified company or
a company with multiple businesses. It is needed for crucial tasks such as
identifying which industries a company will invest in or which business
ventures it should undertake in the future.
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 2. Middle-level Management Planning - determines a particular function or
process and is formulated by middle-level management officers.
3. Low-level Management Planning - a narrower and more focused strategy
that is formulated by low-level managers or frontline supervisors.

8.6. Planning Techniques and Tools

✔ There are three qualitative techniques that can be used in planning. These
are as follows:
1. Brainstorming - is a common technique used by groups of planners in
selecting a common solution for a problem
2. Nominal group technique - is a highly structured method that allows
members to give their own inputs based on an agenda.
3. Delphi technique - is also a highly structured technique similar to the
nominal group technique.

✔ Quantitative tools in planning and decision-making:

1. Decision tree – an excellent tool for weighing different alternatives.
2. Payback method – used in evaluating alternatives in purchasing
equipment, furniture, and fixtures.

8.7. Decision-making and the Common Types of Decision Models- Decision-making is a

major aspect of planning in which a manager can choose to use one of three decision
models.

✔ The Three most common types of decision models used by managers are
the following:
1. Rational or Logical Decision Model-
- This process involves a logical step-by-step analysis of several
possible contributing factors in making the decision.
2. Intuitive Decision Model
- Managers do not use objective methods in decision-making but
instead use their “gut feeling” and instincts.
3. Predisposed Decision Model
- The manager, once he or she decides on a solution, will no
longer look for other alternative solutions. The chosen solution is
considered the most acceptable and effective solution and the
manager then gathers the needed resources to implement the
decision.
✔ Cognitive Biases - This refers to the tendency to look at situations based
on subjective standards or perspectives.

Examples of cognitive biases:

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 1. Escalating commitment – This type of error happens when a
manager, despite his knowledge of a project’s failure, continues to
acquire more resources to continue the project instead of
abandoning it.
2. Prior hypothesis bias – This happens when a manager holds on to
a prior belief that a project will succeed even when evidence to the
contrary has been provided.
3. Representativeness – It is the tendency to make generalizations
based on a small sample or a single experience.
4. Reasoning by analogy - It refers to the tendency to conclude that
the results of one situation can be repeated in a similar situation.
5. Illusion of control – This is a type of error that many top-level
managers commit when they become overconfident regarding their
ability to solve problems.
6. Framing bias – This kind of bias correlates the outcome with how a
problem or decision is framed.
7. Availability error – This error is committed by managers when
they immediately use available resources on a project that is
expected to immediately provide profit, rather than holding off and
waiting for a later opportunity that will generate even greater
profit.
✔ The following are Contemporary Decision Making Models:

▪ Kepner-Tregoe Matrix Model - This model aims to remove

the pressure from planners and minimize the risks of chosen
alternatives.
▪ Vroom-Yetton-Jago Model - This model focuses not on
identifying possible decisions, but on selecting the best
leadership style suited for planning and decision-making.
▪ Observe-OrientDecide-Act Loop Model - This model was
developed by US Air Force Colonel John Boyd as a decision-
making model for air combat. According to him, decision-
making is essentially a cycle of actions – observe, orient,
decide, and act – that an individual does in quick succession to
address a situation.

Lesson 9: Nature of organizations

✔ An organization is defined as a social group that has well-coordinated

processes and activities for the purpose of achieving its objectives and is
connected to the environment where it exists.

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9.1. Organizational Design and Structures

✔ The organizational design identifies the essential tasks and operations of

the company, establishes effective work relationships, and divides the
company into departments that will contribute toward achieving its goals
and objectives.
✔ The organizational structure is the framework that shows how each
component of the company relates to each other.

The Six Key Elements that contribute to determining aspects of the organization are as
follows:

1. Work specialization – This refers to the way jobs are divided into steps or individual
tasks. In an organization, several individuals perform an individual task required to complete a
job.

2. Departmentalization – This refers to grouping similar functions, jobs, and tasks into
groups called departments. Departmentalization may be functional, where personnel and tasks
related to a single company operation are grouped into a department

3. Chain of Command – This indicates the communication and work relationship between
employees and managers; it indicates who reports to whom.

The Three underlying principles for Chain of Commands are as follows:.

1. Authority
-The right inherent in a managerial position to give directions or tell people
what to do and expect them to undertake it.

2. Responsibility

- The obligation to perform duties assigned to an employee.

3. Unity of Command

- This requires that an employee should report to one superior only.

4. Span of control – This refers to the number of employees a manager can

effectively and efficiently manage

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 5. Degree of centralization – This refers to the extent of authority where decision-making
is given to a small group of people in the organization.

✔ Centralization occurs when major decisions are made by the top

management and the decisions and actions of lower management and
employees must have approval from the top.
✔ Decentralization occurs when lower management is allowed to make
important decisions.

6. Formalization –This is the process of standardizing jobs and establishing rules and guidelines
that guide employees. It helps in providing consistency in the procedures and job responsibilities
of the employees.

✔ Simple Organizational Structure

- This is the most basic organizational structure and is applicable to
small businesses where majority of the power and decision-making
rests on the owner.
- This allows for quick decision-making and hands-on interaction with
the day-to-day activities of the firm.

✔ Functional Grouping
- Tasks and operations are controlled through a vertical hierarchy, where
employees follow a chain of command where top managers delegate
tasks to lower-level managers and employees.
✔ Divisional Organizational Structure
- One of the advantages of a divisional structure is that it allows
employees in each division to concentrate on their own division’s
performance.
✔ Multi-focused Grouping
- This design combines both the functional and divisional structures in
organizing a company.
o An example of multi-focused grouping design is the matrix
structure
o This is used when both technical expertise and product
innovation are crucial in meeting organizational goals.

The two types of Matrix Structures are as follows:

1. Functional Matrix organizes the company in a

way that gives functional managers primary
authority.

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 2. Product Matrix, meanwhile, assigns greater
authority to the product managers.

✔ Horizontal Grouping
- Eliminates the complexities of hierarchies and divisions and
establishes a structure with little or no levels among employees,
middle managers, and top management.
o Team-based Organizational Structure - A team-based
organizational structure is a horizontal design structure that
organizes employees into teams whose members perform
varied functions.
✔ Virtual Network Grouping
- This is the latest approach to organizational design that takes
advantage of the latest advances in information and communication
technology
o Network Organizational Structure - A company using this
structure hires only few employees, which amounts to
lesser costs for salaries and benefits.
✔ Other Types of Organizations
1. Entrepreneurial organization
- The power in this type of organization is focused on the chief
executive.
2. Machine organization
– Decision-making is centralized and there is a distinction between
line and staff.
3. Diversified organization
– The central administration is called headquarters and there is a set of
semi-autonomous units or divisions under a central administrative
structure.
4. Professional organization
– This type of organization has standardized products and services
and employees usually do routine work. This organization is
commonly found in hospitals, universities, and public agencies.
5. Innovative organization
– This system is considered as a modern organization which is
flexible and does not utilize planning and control systems.
6. Missionary organization
– The mission is the main focus of this type of organization. This
mission is clear, distinct, and inspiring.

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9.2. Organization theories and application

✔ Bureaucracy
- 1800s, Max Weber expressed unhappiness with the way
companies were managed because they were run like families.

- He believed that this management approach was more informal

and did not have the potential of being successful since power,
authority, and loyalty were misplaced; employees were loyal to
their superiors rather than the organization.

- This prompted him to introduce the theory of bureaucracy which

emphasizes a formal rigid structure and legitimate authority in
organizations.

- Today, bureaucracy is associated with formality, rigidity, and low

commitment. However, its distinguishing features such as
formalization, specialization, and hierarchy make it especially
suited for organizations with routine tasks.

✔ Scientific Management
- Frederick Taylor became a controversial figure in the field of
management when he introduced his theory of scientific management.
- his theory’s emphasis on the most efficient means of performing tasks
dehumanized factory workers.

- The implementation of his theories in the workplaces left workers with

little opportunity to excel or innovate from a set workplace norm.

- Another application of scientific management is seen in the careful

selection, training, and development of employees that are suited for a
particular job in the organization.

✔ Systems Theory
- In 1950s, Karl Ludwig von Bertalanffy and Kenneth Boulding laid the
foundations of the systems theory.

- This emphasized that a system is a collection of parts that are

coordinated in accomplishing a particular goal.

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 - Systems theory gives a company a general perspective of the internal
and external environments where it operates as an integrated whole.

✔ Contingency Theory
- This theory recognizes that there is no single best way of managing an
organization.

- Situational differences are given consideration and different management

principles are applied depending on the task, the size of the firm, and the
nature of its environment.

- Contingency theory integrates all the management approaches and

identifies a specific approach to be applied on the situation at hand.

- With technology and globalization, contingency theory fits in today’s

world as the business environment is highly unpredictable which demands
that companies should be able to effectively cope with change.

9.3. Delegation

✔ Simple delegation refers to the allocation of tasks to employees

✔ Delegation of authority involves mutual trust as managers entrust their

employees to commit to the external task the same way as the regular one.
✔ Delegation enables managers to unload some of their tasks so other more
important matters can be addressed.

The following are the Three Elements of Delegation:

1. Duty – Each employee in the organization is bound by the duties

expressed in the functions and objectives of the organization.
2. Authority – The manager’s authority over his subordinates should
be clearly defined. Authority should emanate from the official
position of the manager and not from personal influence or other
informal sources of power.
3. Obligation – Delegation is made easier when subordinates express
willingness to fully accept their responsibilities.
▪ Empowerment is the act of making employees accountable for their own actions.
Empowering subordinates requires that managers trust that their subordinates have the
ability to enact decisions and perform the task assigned to them.

9.4. Formal And Informal Organizations

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 ✔ Organizations are also defined by relationships among its members. Based on the
nature and extent of relationships, organizations can be classified as formal or
informal organizations.
o Formal Organization - The structure of a formal
organization rests on authority and responsibility
o Informal Organization- is defined by the personal
relationships established among employees.
The interaction of employees is based on friendship and
camaraderie and since there is no formal or binding
relationship among them, relationships can be dissolved at
any time.

Lesson 10. Staffing in the Organization

10.1. Definition and nature of staffing

✔ Staffing or Human Resource Management involves acquiring and developing

human resources that will carry out and perform the various activities of the
organization.
✔ Staffing includes recruiting, selecting, training, and developing people in the
organization Staffing is a continuous process. This due to the never-ending need
to find, hire, and develop talents for the company.
✔ Effective human resource management helps the company achieve its goals and
maximize productivity since managers are able to select quality employees.
▪ Human Resource Department is tasked with implementing human resource management
in the company. The activities of the HR Department is concerned with the primary
functions and activities of human resource management such as:
1. Human resource planning
2. Job analysis
3. Recruitment and Hiring, training and development
4. Performance Appraisal and Management
5. Compensation and employee relations.

▪ The Staffing Process:

1. Human Resource Planning- The Manager identifies the right number
of people and the required skills for the job.
2. Job analysis - It is employed to determine the tasks, activities, and
skills required of positions needed in the company.
3. Recruitment - The process of finding people to hire for a job.

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 ▪ Human Resource Planning – It is a critical component in determining the organization’s
manpower complement or the number of people that are currently employed in the
organization.
The processes involved in HRP are the following:
1. Environmental scanning
2. Forecasting and estimating the firm’s manpower complement
3. Gap analysis
▪ Job Analysis

Job analysis is the procedure for determining the duties and skill requirements for a job or
position, as well as other qualifications sought for in an employee or applicant.

The information that can be collected through job analysis are the following:

1. Specific tasks and activities – The essential tasks required for a position.

2. Required behavior on the job – The workplace behavior or ethics required in the
performance of the job concerned.

3. Required job standards – The performance levels or standards required on the job.

4. Knowledge, tools, and equipment used – The knowledge on software applications,

accounting procedures, law, and other relevant information.

5. Work conditions - The physical aspects of the job such as work schedules and physical
environment.

6. Personal characteristics and requirements –The educational background, training,

experience, personality type, attitude, values, and physical characteristics needed for the
position.

▪ The following techniques that can be used in conducting job analysis are the following:
1. Observation
2. Interview
3. Questionnaire
4. Logbook

▪ Job description – It is a written summary of the duties, responsibilities, reporting

relationships, and the job specifications for each job or position in the company.
The essential parts of writing a job description are as follows:
1. Job title or position
2. Reporting relationships

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 3. Job classification
4. General description of the job
5. Specific duties and responsibilities
6. Job Specification

10.2. Recruitment

✔ The process of attracting applicants qualified to occupy vacant positions in the

company.
✔ Proper allocation entails placing the employees in the right departments, and
making sure they are equipped with the right skills and experience for the job.
✔ To ensure the success of recruitment, management must know the goals of the
organization and the reasons to hire people.
▪ Sources of Applicants
The Two types of applicants to job positions in the company are as follows:
1. Internal applicants – The company employees who are considered for
promotion to higher positions.
2. External applicants – They are individuals who are recruited by the
company or directly apply to join the company.
▪ Equal Employment - The practice that ensures an applicant is not discriminated against
because of his or her age, color, race, religion, civil status, or gender

10.3. Selection

✔ Starts when applicants who qualify after preliminary screening are scheduled
for preliminary interview and psychological testing that are conducted by the
Human Resource Department (HRD).

The usual types of psychological tests given to the applicants are the
following:
1. Mental Ability Test or Intelligence Quotient (IQ) Test
2. Aptitude Test
3. Personality Test
▪ Placement
The last part of the hiring process is placement

10.4. Training and development

✔ refer to two distinct processes in employee development.

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 ✔ It is an organized activity that increases and enhances employees’ knowledge
and skills on their job to improve their current performance.
▪ New Employee Orientation Program
- The initial training of newly-hired employees includes an orientation.
- The new employee orientation program aims to provide new
employees with relevant information about the company such as the
company’s history, vision and mission, culture, products and services
provided, work hours, dress code, and company policies.
▪ The Training Process
- Training is an important investment a company can make for its
employees. The training process ensures that the implementation of
training programs results to benefits for employees.

The Four Steps of the training process are as follows:

1. Pre-training Assessment - allows the trainer to identify which
aspects of the trainee need improvement.

2. Designing the Training Program - The training program

identifies the training methods to be used, the time frame for
implementation, dates and venues, evaluation methods,
resource persons or speakers, and training costs.

3. Training Implementation - The trainer delivers the training

program utilizing the selected techniques.
4. Training Evaluation - To measure the effectiveness and success
of training and development programs, the following criteria
for evaluation can be used:
o Reactions – these include the actual reactions of the
trainees to different aspects of the program from
content, venue, food, accommodation, visual aids,
etc.
o Results – these include the end result and benefits
of the program as seen in job performance,
productivity, and efficiency.
o Recall – this includes the participants’ recall of
what has been learned and the actual application of
what is recalled. A program that is well-received,
well-delivered, and effectively implemented will be
easily recalled by participants.
o Retrieval – refers to how easily information is
recalled from memory and immediately applied by
the participants.

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10.5. Compensation/wages and performance evaluation/appraisal
✔ any tangible equivalent or reward for services rendered or for the performance of
a task performed in the organization.
o Direct compensation is monetary in nature and given in the form of
salaries, wages, commissions, bonuses, and allowances.
o Indirect compensation is given in the form of services and non-
monetary benefits such as hospitalization, summer outings,
vacation leaves, and sports fests.
▪ Compensation Guidelines:

⮚ Minimum Wage Law

⮚ As of March 20, 2015, the minimum wage for the National Capital Region (NCR)
is P481 per day
⮚ Minimum Wage for the other regions is slightly lower.

⮚ Minimum Wage Law is set to protect manual laborers from being taken advantage
of by companies.
⮚ Compensation is usually time-based
o Salary refers to compensation given to professionals on a monthly
or semi-monthly basis.
o Wage refers to compensation given on a weekly or daily basis and
usually applies to manual workers such as carpenters, plumbers,
electricians, and the like.
o Base Pay or Basic Pay is the fixed part of pay. It is the minimum
payment for the tasks rendered by the employee based on his or her
position or job title.
▪ Common Modes of Payment
The following are the common modes of payment given to employees:
1. Payment for time worked
⮚ Monthly paid employees are those who are paid each day
of a particular month including unworked rest days, special
days, and regular holidays.
⮚ Daily paid employees are paid on the basis of the days they
actually worked and unworked regular holidays.

Payments for time worked have adjustments based on any of the

following:

a. Across-The-Board Increase – Pay adjustments provided

to all employees with the same rate regardless of rank.

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 b. Merit Increase – Salary or wage increase given to
employees on the basis of performance.
c. Cost-of-Living Allowance (COLA) – It is a monetary
allowance given to employees to help them cope with the
prevailing conditions of the economy related to the
standard of living and increasing prices of commodities
due to inflation.
d. Seniority Pay – This is given to employees based on the
number of years of service in the company.
2. Flat rates
⮚ Firms with flat rates do not consider skills and seniority as factors for
giving compensation.
3. Compensation through incentives
⮚ These are payments based on output.
The most popular forms of incentive pay are the following:
a. Merit pay
b. Piece rate pay
c. Commission
d. Group incentives
4. Payments based on skills
⮚ This is based on the number of skills the employees gains while
working for the company.
5. Payments based on knowledge or credentials
⮚ Compensation is therefore given to employees who attend seminars
and conference and gain additional knowledge that improve their
performance in the company.
6. Executive payments
⮚ These are payments given to chief executive officers, the chairman of
the board, and other members of top management
7. Special Payments
⮚ These are additional compensation given in special cases and include
the following:
a. Overtime pay – this covers work done beyond the normal schedule of eight
hours in a day, and is given on top of the basic salary. The rates depend on the
day and number of hours worked.

The minimum overtime pay rates also vary according to the day the overtime
work is performed and are determined as follows:

1) For work in excess of eight hours performed on ordinary working days,

overtime pay is 25% of the hourly rate.

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 2) For work in excess of eight hours performed on a scheduled rest day, a special
day, and a regular holiday, overtime pay is at 30% of the hourly rate.

b. Holiday pay – this is payment for an unworked regular holiday based on the
employee’s daily rate. An employee is paid 100% of his daily rate (minimum
wage and COLA) even if he or she does not report for work provided that he or
she is present or is on leave with pay on the work day preceding the holiday. If an
employee works on a regular holiday, he or she is paid 200% of his daily rate.

The following are the 12 regular holiday under Executive Order

No. 292, as amended by Republic Act 9849:

Holiday Date
New Year’s Day January 1
Maundy Thursday movable date
Good Friday movable date
Araw ng Kagitingan April 9
Labor Day May 1
Independence Day June 12
National Heroes’ Day last Monday of August
Eid al-Fitr movable date
Eid al-Adha movable date
Bonifacio Day November 30
Christmas Day December 25
Rizal Day December 30

c. Premium pay – these are payments given to employees who work during rest
days and special holidays.

The three special holidays under Executive Order 292 are the following:

Holiday Date

Ninoy Aquin Day August 21

All Saints Day November 1

Last Day of the year December 31

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o Premium pay is also given on special holidays declared by the President of the
Philippines.
o Additional pay of at least 30% of the basic daily pay is given to work performed
during these days
o If a special day is also an employee’s rest day and he performs work on that day,
he is entitled to an additional pay of 50% of his basic daily pay.

d. Night differential payments – this is an additional 10% of basic rate for each
hour of work performed between 10:00pm to 6:00am.

e. Service charges – these refer to fees charged to cover services related to

producing a product or providing a service.

f. Severance or separation pay - It is the duty of the firm to provide separation pay
to employees who are terminated with authorized cause.

An authorized cause may be one of the following:

1) Retrenchment to prevent further losses

2) Closure of a firm

3) Illness that may affect his performance or is highly contagious

● The severance pay is equivalent to half a month’s pay for every year of
service.
● However, the employee is entitled to a full month’s salary for every year
of service if the employee is separated because of any of the following
authorized causes:

Imposition of labor-saving devices.

1. Redundancy or duplication of functions or abolishment of a certain

department where the employee is placed
2. Redundancy or duplication of functions or abolishment of a certain
department where the employee is placed
3. Transfer to another department is not possible
❖ The computation of severance pay shall include COLA

g. Retirement pay – An employee who is 60 or 65 years old shall receive one-half

month salary for every year of service provided that he or she has rendered five
years of continuous service for the company. The pay will include the following:

36
 1. Basic salary worth fifteen days based on the retiring employee’s latest
rate.
2. Five days service incentive leave
3. One-twelfth of his 13th month pay or two and a half days
❖ Overall, a retiring employee should at least get 22.5 days
equivalent pay for every year of service. COLA is not included in
the computation of retirement pay.
h. Thirteenth month pay – All employees are entitled to thirteenth month pay
provided that they have worked for at least one month in a calendar year. This is
given not later than December 24 of that particular year.

▪ Employee Benefits
Divided into Two :
1. Government mandated benefit- Those required by law
2. Voluntary benefits - Those that are voluntarily given by the company

The government-mandated benefits are as follows:

1. Social Security System (SSS)/Government Service Insurance System (GSIS)
benefits
2. Employees’ compensation (EC) program
3. Pag-ibig (Home Development Mutual Fund) benefits
4. Philhealth (Philippine Health Insurance Corporation) benefits
5. Service incentive leave
6. Maternity leave
7. Paternity leave
8. Special leave for women
✔ Voluntary benefits refer to benefits that are freely given by the company to its
employees
✔ These benefits, however, are dependent on the company’s ability to provide its
employees and are subject to certain conditions and policies.
The following are examples of voluntary benefits:
1. Vacation leaves – The number of vacation days given to employees varies
from one company to another.
2. Sick leaves – Companies provide more than alloted number of days for the
service incentive leave as sick leaves.
3. Emergency leaves – Some companies provide emergency leaves of three days
or more for reasons not applicable to sick and vacation leaves.
4. Summer outings – Companies may organize exclusive summer outings for
their employees and bring them to resorts or beaches.
5. Sports fest – Companies organize sports fests where their employees engage
in sports like bowling, basketball, and volleyball.
6. Rice subsidy – Regular employees are provided one sack of rice per month.

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 7. Meal subsidy – Employees are given meal stubs with corresponding values
that can be spent in the cafeteria.
8. Shuttle service – Employees who live in locations that are far from the office
or plant are provided transportation services where shuttle buses pick them up
at designated points and bring them to the company premises.
9. Hospitalization – Apart from health benefits provided by the SSS, Philhealth,
and the employee compensation program, there are companies that extend
hospitalization benefits to employees and their dependents.
10. Group life insurance program – Employees are enrolled in a group life
insurance program with benefits provided to beneficiaries in case of death.
11. Bonuses – Aside from the 13th month pay, some companies also give 14th
month up to 17th month pay to their employees.
12. Profit sharing – A company can “share its bounty” by dividing net income
among all employees regardless of rank.
13. Stock options – Companies can give shares of stocks to employees who have
rendered more than ten (10) years of service.
14. Christmas parties and packages – Christmas benefits are extended to
employees in the form of Christmas parties with exchange gifts, raffles, and
gift basket giveaways.
15. Cash bonuses – Companies provide cash bonuses to employees at the end of
the year
16. Emergency loan – Some companies grant interest-free emergency loans to
employees for emergency purposes.
17. Free uniform and laundry allowance – Employees are provided uniforms and
laundry allowances upon regularization or after one year of service.
18. Executive perquisites – These are additional benefits given to top management
in the form of free limousine service, free hotel accommodations, gasoline
allowances, and the like.

10.6. Employee relations

✔ Are essential component that contributes to the success of a company.

The elements considered in establishing and maintaining good employee relations are as
follows:

1. Drive for commitment

2. Harmonization of terms and conditions of employment
3. Emphasis on mutuality
4. Policies and practices for communication
✔ Labor Unions and Collective Bargaining

✔ Collective bargaining refers to the process by which labor unions negotiate a labor
contract with management.

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✔ Employee Code of Conduct
Codes of conduct vary from one industry to another, but some of its essential content are
as follows:
1. Prohibition of illegal activities such as gambling, smoking, or drinking
2. Prohibitions of discrimination of gender, race, religion, and civil status
3. Sexual harassment
4. Confidentiality and disclosure of confidential information
5. Dress code and appearance
6. Punctuality (tardiness and absences)
7. Procedures for sick leaves and emergency leaves
8. Sanctions for violations of the code of conduct

▪ General Steps in the Disciplinary Process through HRD

The disciplinary process is often included in the employees’ contracts or is given as part
of the job orientation.
In order to properly assess the nature of the alleged violation or misconduct,
disciplinary action follow these steps:
1. Identify the employee who committed the violation.
2. Identify the violation/s committed.
3. Consult the department head or the immediate supervisor and make an initial
assessment of the violation.
4. Set a meeting with the department head or immediate supervisor and the employee.
5. Ensure that the employee is provided with due process.
6. Plan and discuss the corrective action with the department head or immediate
supervisor.

▪ Due Process - ensures a fair and impartial hearing on employee’s violations or a

management decision which threaten an employee’s tenure or status of employment.

10.7. Employee movements

✔ Inevitable and are often the result of evaluation or structural changes within an
organization.
✔ An organization can move its employees either vertically or horizontally.
o Vertical movement entails the movement of an employee from a lower position to
a higher one.
o Horizontal movement involves the transfer of an employee to another department
or position with similar responsibilities or status.
▪ Promotion is a movement to a higher level or position
o Tenure refers to the number of years in service of an employee
o Meritorious performance refers to an excellent or outstanding performance of an
employee.
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 ▪ Demotion is a movement to a lower level or position. A common reason for an
employee’s demotion is inefficiency or poor performance.
o Transfer is a movement to another position but with the same level or scope of
responsibility.
▪ Separation or an employee’s departure from the organization. It may take the following
forms:
o Resignation – This is an employee’s voluntary decision to leave the organization.
o Separation with authorized cause
o Separation with just cause
o Retirement

10.8. Rewards Systems

✔ Companies also provide additional payments and benefits on top of the employees’ basic
salaries.
✔ These form part of the company’s rewards systems and are given to motivate employees
as they perform their tasks.
▪ Contingent Pay - This is a pay scheme which is given on top of the basic pay rate and is
based on the employee’s performance, competency, contribution, and skills.

Individual contingent pay can be implemented along five schemes as follows:

1. Pay for performance scheme

2. Pay for competency
3. Pay for contribution
4. Pay for skills
5. Pay for service

Group contingency pay, on the other hand, may be implemented through two
schemes as follows:

1. Team-based pay
2. Organization-wide pay
a. Gainsharing
b. Profit sharing

EXPERIENTIAL EXERCISE 3.

Read and analyze the vision and mission statement of Unilever, a leading manufacturer of
detergents, soaps, personal care, and food products in the Philippines. You may visit the official
website of Uniliver.

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Discussion Questions:

1. Based on its vision, purpose and principles, what are the main goals and objectives of
Unilever?

2. Do the vision, purpose and principles of Unilever clearly define the purpose of the company?
Why do you think so?

3. If you were an officer in the top level management of Unilever, what strategies will you
implement to achieve the company’s vision?

MODULE 4. Leading and Controlling

Lesson 11. Leading the Organization

11.1 Leading

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 ✔ It involves the social and informal sources of influence used to inspire action taken by
others.
✔ If managers are effective leaders, their subordinates will be enthusiastic about exerting
effort to attain organizational objectives.
✔ It is a complex process. It involves influencing others to accomplish a mission, task, or
goal.

11.2 Leader vs. Manager

✔ According to Encarta dictionary:

Manager – is somebody who is responsible for directing and controlling the work
and staff of a business, or of a department within it.

Leader – is somebody whom people follow.

✔ Managers and Leaders are different. Managers are needed but there is an increasing
need to have leaders.
✔ They are not the same thing, they operate differently and they need different skills.

✔ According to Peter Drucker; Management is doing things right, Leadership is doing the
right things.

(Source:http://www.brainyquote.com/quotes/quotes/p/peterdruck131069.html)

11.3. Motivation

✔ the psychological process of directing behavior.

✔ is particularly significant as it determines the willingness of a person to use his or her

ability to the utmost in performing a task.

The Three Elements in the process of Motivation are as follows:

1. Motive – It is something that arouses or induces an individual to behave in a certain way

or do a certain thing. It is also known as need or desire.
✔ Motives are classified into:

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 a. Primary Motives - include biological needs such as food, shelter,
belongingness, etc.
b. Secondary Motives - involve the need for stimulus and social needs. An
example of a stimulus is curiosity or exploration.
✔ Motives can also be:
a. Internal Motives - are based on an individual’s own personal drive to achieve
a certain goal
b. External Motives - are based on forces or influences that are outside of the
person such as environment, peer group, family members, and society.

2. Behavior - It is comprised of actions aimed at accomplishing or achieving a particular

motive or need. Hunger, for example, motivates people to go and search for food

3. Goal - refers to the achievement or fulfillment of a motive. When a hungry person has
found some food and has eaten it, the individual has finally achieved his or her goal.

▪ Content Theories of Motivation

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▪ Process Theory of Motivation

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 ✔ According to Howard Schultz, CEO of Starbucks, said that:
“You can’t expect your employees to exceed the expectation of your customers if
you don’t exceed the employee’s expectation to management. That’s the
contract”.
(Source: http://www.evancarmichael.com/famous-Entrepreneurs/643/Howard-
Schultz-Quotes.html)

11.4. Leadership theories

There are a number of leadership theories that describe the characteristics and behavior of
successful leaders as well as different leadership styles that managers can apply in various
situations which are as follows:

✔ Great Man Theory - There is the assumption that leaders are born with innate
qualities, and that renowned leaders were destined to lead.
▪ This theory states that leadership is greatly influenced by status as
many great men in history came from the aristocracy.
▪ Thomas Carlyle, a 19th-century Scottish historian, believed that in
times of turmoil, a great man was said to arrive whose life and
works left an indelible mark in history
▪ He considered history as the “biography of great men.”

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✔ Trait Theory - focuses on innate attributes and characteristics that a person possesses.

▪ This theory believes that leaders possess certain positive

traits that enable them to become leaders.
▪ This theory was developed by studying successful leaders
and compiling a list of their common traits.

✔ Behaviorist Theories - These theories place more emphasis on the behavior of leaders
rather than their innate qualities.
▪ One popular behaviorist theory is Douglas McGregor’s
Theory X and Theory Y
▪ Another behaviorist theory is the Leadership Grid which
was conceptualized by management theorists Robert Blake
and Jane Mouton.

Five styles of leadership according to the leadership grid are as follows:

1. Authoritarian Leaders (high result, low people) - They are very task-
oriented and push their people to work.

2. Country Club Leaders (low result, high people) – They use the power
of rewards to maintain discipline and motivate their subordinates.

3. Impoverished Leaders (low result, low people) – They delegate tasks

and then leave their subordinates unsupervised.

4. Team leaders (high result, high people) – These leaders are considered
role models of good management.

5. Middle of the Road Leaders (medium result, medium people) – These

leaders seek a compromise between production and people concerns
and maintain the status quo in the company.

✔ Participative Leadership - Kurt Lewin, a German-American psychologist, developed a

framework that focused on a leader’s decision-making style. It emphasizes the role of
leaders and other participants in decision-making.

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 ▪ Three leadership styles based on their decision-making practices:
1. Autocratic leaders – These leaders take sole charge in decision-
making and do not consult with other members.

2. Democratic leaders – These leaders allow team members to

provide inputs before making a decision.

3. Laissez-faire leaders – These leaders do not interfere in the

decision-making and they allow members to make most of the
decisions.

Another organizational expert, the American administrator and organizational psychologist

Rensis Likert, has conceptualized four additional types of leadership styles in decision-making:

1. Exploitative authoritative leaders – These leaders have a low concern for

people and use threats to make workers comply with orders.

2. Benevolent authoritative leaders – This is an authoritative leader who

expresses concern for people.

3. Consultative leaders – These leaders make a conscious effort to listen to ideas

of subordinates.

4. Participative leaders – These leaders maximize the participation of

subordinates in decision-making.

Another notable framework of participative leadership is the Leadership Continuum, developed

by Robert Tannenbaum and Warren Schmidt.

The Four leadership styles are as follows:

1. Autocratic leaders – These leaders take charge of decision-making and relay

the decisions made to their subordinates. (telling style).
2. Persuasive leaders – These leaders also make the decisions for the group
without consultation.
3. Consultative leaders – These leaders confer with group members who propose
possible solutions or alternatives
4. Democratic leaders – These leaders present the problem to group members
and involve them in decision-making.

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 ✔ Situational Leadership - This theory considers that leadership styles are specific to a
particular situation, and that leaders adapt their actions and behavior to whatever situation
they are in.
Six Approaches in Situational leadership are as follows:
1. Subordinate effort - this refers to worker motivation and actual effort spent.
2. Subordinate ability and role clarity – the extent to which workers know what to do
and how to do it.
3. Organization of the work – the structure of work and utilization of resources.
4. Cooperation and cohesiveness – how well participants work together as a group.
5. Resource and support – availability of tools, materials, and people.
6. External coordination – refers to the need to collaborate with other groups.

✔ Contingency Theory - is a refinement of situational leadership. This theory requires

leaders to analyze a particular situation and identify the variables that would determine
the most effective leadership style that will address the given situation.

✔ Transactional Theory - This theory considers the relationship between followers and
leaders as key to achieving goals. Leaders should give equal treatment and due
recognition to their members.

✔ Transformational Theory - This theory emphasizes the concept of change and believes
that leaders are tasked to provide direction and implement changes through performance
and the attainment of goals.

11.5. Communication in the Workplace

✔ is important in organizing jobs and making sure that all tasks and jobs are accomplished
to achieve goals.
✔ can take several forms: verbal, written, and expressed or body language.

✔ is more effective if one uses a combination of these forms.

The following are the elements involved in the communication process:

1. Input – the content of the message

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 2. Sender – the one who encodes or sends the message

3. Code – a symbol system, known to both the sender and the receiver, that constructs
meaning

4. Channel – the means by which the sender relays the message to the receiver

5. Noise – any distortion or interference during the communication process; the channel is
often subjected to various sources of noise. It can be psychological (bias, assumptions,
ideas), physiological (the state of health of the receiver or sender), physical (distractions,
background noise), and semantic (use of specialized language or jargon)

6. Receiver – the one who decodes or receives the message

7. Output – the content of the message as decoded by the receiver

8. Response – the reaction of the receiver to the message

9. Feedback – the part of the receiver’s response that is transmitted back to the sender

The Seven barriers to effective workplace communication are as follows:

1. Physical barriers
2. Perceptual barriers
3. Emotional barriers
4. Cultural barriers
5. Language barriers
6. Gender barriers
7. Interpersonal barriers

11.6. Management of Change and Diversity

✔ Management of Change and Diversity in the Workplace - Diversity is also an important

issue in management.

✔ Management of Organizational Culture - Managers should also be aware that

organizational culture is dynamic and should shift and adapt to internal and external
changes.

✔ Managing Organizational Change - Every organization goes through a period of

transformation that is usually brought about by changes in the business environment.
Organizations are expected to respond to changes in both its internal and external
environmental.

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 ✔ Addressing Globalization and Diversity - Globalization represents a huge paradigm shift
in international business that has greatly affected corporations and their managers.

✔ The Global Manager - work across different cultural boundaries to accomplish corporate
objectives.

11.7. Filipino and foreign Cultures

✔ The Filipino Manager - considers himself or herself as the “head of the family” in his or
her respective department, team, or organization and therefore adopts a paternalistic or
maternal attitude towards employees.

✔ Filipino Management as compared to other Asian cultures

✔ Nepotism or the practice of handing power and influence to family members, relatives,
and close friends.

✔ Filipino-Chinese business families also practice the concept of Guanxi which is rooted in
Chinese culture. It refers to the cultivation of personal relationships within a hierarchical
framework.

✔ Filipino tradition of bayanihan or teamwork is also very common in local organizations.

✔ Filipinos value pakikisama for personal interests since this paves the way to cooperation
and assistance from colleagues while nonconformity discourages mutual support.

✔ Japanese, meanwhile, tend to sacrifice personal interests in favor of collective objectives.

✔ Japanese workers are expected to conform to the demands of the organization, often
rendering overtime and giving their personal time to participate in company activities.

✔ Singaporean management is also characterized by the Confucian emphasis on authority,

with managers treating their subordinates like family.

Lesson 12. Controlling the Organization

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12.1. Definition and Nature of Management Control

✔ an ongoing process that involves members at all levels of the organization.

✔ The control function is the responsibility of everyone, thus employees are expected to
address problems even if these are not within his or her area of responsibility.
✔ It is also a dynamic process because any deviations from standards should be
immediately corrected.

The control process involves four main steps. These are as follows:

1. Establish standards.
2. Measure performance.
3. Compare the actual performance with the standard.
4. Take corrective actions and realign processes when necessary.

12.2. The Link between Planning and Controlling

✔ Planning identifies the goals and standards that an organization should aim.

✔ Controlling ensures that the performance of the whole organization conforms to the
outlined plans.

12.3. Control Methods and Systems

Control measures based on timeliness are as follows:

1. Feedforward Control – This type of control anticipates the occurrence of possible

problems so that preventive measures can be implemented before the actual operation.
2. Concurrent Control – this type of control is implemented while the activity is in progress.
3. Feedback Control – this type of control is done after the activity. Feedback enables
managers to gather information and determine whether the activity is a success or failure.

✔ Apart from implementing controls during the conduct of specific tasks and
business operations, organizations also apply various control methods and
systems in monitoring and controlling the general conduct of company
operations.
✔ Examples of these are as follows:
1. Administrative Control

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 Specific examples include the following:
a. Maintenance operations involving toxic substances are done during
night time when most employees are not present.
b. Workers’ assignments are regularly rotated to ensure that they will not
experience repetitive motion injuries.
c. Workers who work in hot areas are required to take regular breaks to
enable them to cool down.
2. Delegation
This involves assigning an employee to take responsibility in completing a
task.

4. Evaluation

This involves collecting the results of marketing efforts, sales reports, and project evaluations.

5. Financial Reports

Include balance sheets, income statements, and cash flows. A company implements control
through regular financial audits that ensure financial management practices follow generally
accepted standards.

Common Financial Ratios utilized in monitoring company performance are as follows:

a. Liquidity ratio – measures the company’s ability to meet its current debt obligations.

b. Leverage ratio – assesses the organization’s use of debt to finance its assets and meet
the interest payments on debts.

c. Activity ratio – measures the efficiency of the company in using its assets to meet its
various financial obligations and convert its various accounts to cash.

d. Profitability ratio – measures the efficiency of the company in generating profits.

6. Performance Appraisal

This provides a general impression of employee performance. Through appraisal, supervisors

and employees are given the opportunity to discuss how they can best meet goals by correcting
or improving subpar performance, and attaining and maintaining exemplary performance.

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7. Policies and Procedures These form part of the internal control of an organization as they
guide behavior in the workplace.

8. Quality Control This control method relies on the quality of products and services as a basis
for establishing performance standards, monitoring results, and comparing results with the
standards.

12.4. Application of Management Control in Accounting and Marketing Concepts and

Techniques

✔ Management Control Applications - Control is applied to many functional areas in the

business organization, particularly in accounting and marketing.
✔ Accounting or Financial Controls

▪ Balance Sheet - provides a summary of the company’s financial

position over a period of time.

Three major parts of a balance sheet are the following:

1. Assets are things or resources that the company owns.

a. Current Assets – these include cash on hand, cash deposited in banks,
prepaids or advance payments not yet used, accounts receivable, and
inventory.
b. Property, plant, and equipment – these include assets such as land,
buildings, leasehold improvements, equipment, furniture and fixtures,
delivery trucks, machinery, and other capital owned by the company.
c. Intangible assets – these refer to assets that do not have physical
substance and may be hard to evaluate and include patents, copyright,
goodwill, and the popularity of a trademark or company name.

2. Liabilities are the obligations of the company to creditors for past transactions
such as acquisition of raw materials and other debts.
▪ Current liabilities are usually due within one year

▪ Long-Term liabilities have a prescribed period of more than a year.

Long-Term Liabilities depending on the duration of the obligation.

These are as follows:

a. Notes payable – it is the amount of loans due based on a

written agreement or promise to pay.

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 b. Accounts payable – it refers to the obligations of the company
to suppliers without a written promissory note and are
classified as current liability.
c. SSS/Philhealth payable – This is a current liability that is
specific to the Philippines.
d. Income taxes payable – It shows the amount the company
should remit as taxes to the government.
3. Owner’s equity or stockholder’s equity shows the amount of capital the
owners of the business have invested.
a. Common stock
b. Preferred stock
c. Retained earnings
▪ The income statement reports profits earned or losses incurred by the company over a
given period.
The income statement consists of three main parts:
1. Revenue
2. Expenses
3. Net Income

12.5. Role of Budgets in Planning and Control

✔ Budgeting - is a planning tool used to translate in quantitative terms all the plans of the
company. The goals and objectives are expressed in financial terms such as targeted sales
and corresponding sales volume.
✔ The budget is a controlling tool because it allows managers to keep track of the costs and
expenses, and determine whether they are above or within the set limits.
✔ A budget plan is essential to realizing the plans of the organization. This summarizes the
costs required for the resources or inputs needed to implement plans, programs, and
activities.
▪ Budget plan consists of two parts:
1. Direct costs are expenses directly related to the project or activity.
2. Indirect costs are costs that are not directly related to a project or activity but are
needed for the smooth flow of operations of the business.
▪ The specific costs to be estimated in a budget plan are the following:
1. Operational costs – these are the direct costs of doing the actual work, activity, or
project.
2. Organizational costs – these are indirect costs that refer to activities that support
operational plans, like the maintenance of the office workspace, the plant or
manufacturing area, and utilities such as telephone, and electricity.

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3. Staffing costs – these are also called labor costs and refer to the wages or salaries of
people who perform the actual work.

4. Capital Costs – these are fixed, one-time costs for large investments such as heavy
equipment, facilities, land, and buildings.

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 EXPERIENTIAL EXERCISE 4-A

Self-Assessment of Leadership Traits

1. Assess yourself. Do you consider yourself more of a leader or more of a follower?

Expound on your answer.
2. From your own assessment, identify at least eight qualities that make you either a leader
or follower.
3. Define a good leader.
4. How can a transactional leader become a transformational leader?

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MODULE 5. Introduction to the Different Functional Areas of Management , and Special
Topics in Management

Lesson 13. Functional Areas of Management

These are the significant areas that contribute to the operations of the organization. Managers,
therefore, focus their efforts in ensuring that these areas function efficiently and effectively by
implementing the various management functions in their respective tasks and projects.

a. Human Resource Management - includes tasks and activities performed by HR

managers, HR specialists, and operating managers. These operating managers include
supervisors, managers, department heads, directors, and vice presidents.

▪ HR Managers - Outline the different positions from top management up to the people in
the lowest level of the organization.
▪ Recruitment Managers - Are specialists responsible for the screening, hiring, and
placement of candidates in suitable positions in the organization.
▪ Job Analysts - Define and classify job positions and ensure accessibility to information
on each job and position in the organization.
▪ Compensation and Benefits Managers - Develop salary structures, analyze prevailing
salary rates in the market, and classify benefits based on job positions, levels, and length
of service.
▪ Training and Development Managers- Enhance and improve the skills of the employees
through the implementation of appropriate training programs.
▪ Training specialists - Develop modules, prepare lessons, invite speakers, and conduct
training needs analysis in order to create appropriate training programs for employees.
▪ Employee Relations Managers - Take charge of formulating policies, creating employee
handbooks and manuals, coordinating with labor groups, managing employee complaints
and concerns, and dealing with employee violations.

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 b. Marketing Management - Involves overseeing the development of new products,
advertisements, promotions, and sales. In small companies, the owners do the actual
marketing activities such as selling, advertising, and promotions.
▪ Marketing Director - Is tasked with managing the overall marketing operations of the
organization.
▪ Marketing Managers - Are tasked with developing strategies for the brand by analyzing
the demand for the product or service.
▪ Public Relations Managers - Take charge of promoting the company or organization to
the public and enhancing its corporate image.
▪ Account Executives - Manage client accounts or departments and prepare commercials
and advertisements for them.
▪ Advertising Managers - Supervise all creative works including conceptualizing and
creating storyboards and contacting media or promotion agencies for the distribution of
the material.
▪ Creative Director - Ensures that the advertisements as specified by the clients are
produced and delivered promptly.
▪ Media Director - Selects the appropriate medium for the advertisement.

▪ Promotion Managers - Supervise all promotional activities of the firm.

▪ Promotion Specialists - Assist in the preparation of promotional materials such as

coupons, flyers, pamphlets, brochures, gifts, and discount cards.
▪ Sales Managers - Take charge of selling the product or service by establishing sales
objectives and encouraging sales personnel to attain or even exceed their sales targets.
▪ Sales Representatives - Do the actual selling and ensure that the products reach
consumers.

c. Operations Management - focuses on designing and controlling production and

business operations related to production. It involves management of facilities,
processes, distribution, and resource planning.

▪ Production Managers - Deal with the resource and service requirements of

manufacturing or production.
▪ Production Supervisors – Are assigned to a specific part of the assembly line or
production area.

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▪ Production Operators – Do the actual production work. Production supervisors regularly
report to the production managers.

d. Financial Management - Finance is considered the “lifeblood of business” since all

organizations need it to meet its sales requirements and sustain its operations.
▪ Finance Manager - Supervises all finance operations. Financial managers raise funds,
invest in assets, and manage them effectively in an economically unstable environment.
▪ Chief Financial Officer (CFO) - Reports directly to the president or Chief Executive
Officer (CEO).
▪ Treasurer - Is involved in major areas of financial management such as investment,
financing, and asset management. Treasurers are responsible for overseeing budget
requirements and assessing investment opportunities and risks.
▪ Controller – Is tasked with preparing financial reports such as income statements, balance
sheets, and cash flows.

The financial managers make important decisions in the following areas:

1. Investment decisions
2. Financing decision
3. Asset management decision
▪ Credit Managers - Develop credit policies and monitor collection of accounts.

▪ Cash Managers - Monitor and establish control mechanisms on the flow of cash receipts
and disbursements.
▪ Financial Managers - Are employed by banks, credit companies and other financial
institutions to supervise lending, mortgages, investment, and other financial activities.

Materials and Procurement Management

▪ Procurement is the act of purchasing or acquiring goods and services for company
use.
▪ Purchasing Department is in-charge of the acquisition of materials and resources for
the different departments in the organization.
▪ Purchasing Managers or Procurement Managers supervise the procurement process of
the company.

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 ▪ Buyers or Purchasing Officers acquire specific products and services required by the
company. They write requests for bids, proposals, and quotes, and evaluate
information regarding procurement.
▪ Wholesale Buyer is a type of a buyer who purchases merchandise for resale to
retailers and other firms like supermarkets and convenience stores.
▪ Competitive Bidding in the procurement of materials and services refers to the
process where prospective suppliers submit their bids which indicate their willingness
to provide products and services to the company at certain prices.

▪ Office Management involves the proper handling and maintenance of the clerical
aspects of all the functional departments of the organization, as well as the facilitation
of proper communication, coordination, and storage of data.

▪ Office management also involve payroll, records, telecommunications, and parking

management.

e. Information & Communication Technology Management

✔ Information technology refers to the application of computer and
telecommunications technology to store, manage, and transmit data in
businesses and other organizations.
✔ Information systems are organized systems or network that collect, store, and
disseminate information required to support key organizational functions.
✔ Information technology supports several functional areas of a firm. It provides
support to marketing by identifying customers for the company’s products and
services and sells goods and services, and provides market and consumer data
that help in promoting products and services and providing customer support.

The Specific Functional Areas of Information System are as follows:

1. Sales and marketing information systems – These engage in sales forecasting, pricing
analysis, and order processing. These systems are also involved in planning for facilities,
location, machine control, and production.

2. Finance and accounting information systems– These monitor the company’s assets and fund
flows, and are indispensable in budgeting, accounts receivable, and financial planning.

3. Human resource systems – These keep track of employee records, skills, performance and
training, and are utilized in compensation analysis, training and development, and human
resource planning.
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 ✔ Information systems managers take charge of establishing an information system,
managing its components and programs, and rendering technical support to the various
departments in the organization.

Lesson 14. Special Topics in Management

14.1. Small Business Management and Entrepreneurship

✔ An entrepreneur is an individual who establishes a business for the purpose of achieving

profit.
✔ An entrepreneur identifies opportunities and acquires and organizes the resources needed
for such business.

The following are the characteristics of a successful entrepreneur:

1. Entrepreneurs have initiative. They have the willingness to utilize their resources to the
fullest and the creativity to come up with innovative products and strategies.
2. Entrepreneurs are self-reliant. They have a clear idea of what they want to do and the
goals they wish to achieve.
3. Entrepreneurs dream big and they know how to transform their dreams into reality.

The Types of Businesses According to Size and Growth Potential

1. Gazelles – these are as small companies that are considered “high potential ventures”
with phenomenal prospects for growth.

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 2. Microbusinesses – these business ventures operate on a smaller scale and have limited
profits.
3. Small and Medium-sized businesses – these are also known as small and medium-sized
enterprises or SMEs.

14.2. Family Business Enterprise

✔ Families owning businesses are common around the world. It is estimated that about 65
percent of registered businesses worldwide are owned by families
✔ Family businesses often employ a very traditional method of management where family
members occupy key positions in the organization and then pass them on to other family
members upon retirement.
Characteristics of Family-Owned Businesses:
▪ Its owners consider the business as a legacy that will be passed on to the next
generation.
▪ Family owners aim to maintain and improve the performance of the business and
allow the next generation to “reap and re-sow” the fruits of the company’s
success.
▪ The family-owned business is also viewed not merely as an organization, but is
considered the extension of the family where each member is given great
importance.

14.3. Starting a Business

▪ Small businesses generally do not generate as much revenue as large corporations.

However, when considered against the general context of our economy, these businesses
serve as the backbone of the country’s development.
▪ Small businesses also play a crucial role in the operations of large business and
corporations.
The following are the parts of a business plan:

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1. Title page – It contains the company name, address, contact numbers, names and addresses of
the owners, logo (if any), the date when the plan was made, and the name of the persons who
prepared the plan.

2. Executive summary – It is a summary of the contents of the business plan and is often one to
three pages in length.

3. General business plan – It contains a brief description of the company, its history, and the type
of business (e.g., manufacturing, retail, service, or other type of business

4. Products or services plan – It gives a comprehensive description of the product or service as

well as its unique features.

5. Marketing plan – This describes the target market and the profile of the target customers.

6. Management plan – It identifies and describes the organizational structure of the company as
well as the background of the people who will hold key positions in it.

7. Operating plan – It describes how the product will be produced or how the service will be
provided.

8. Financial plan – It specifies the potential sources of financing and the projected revenues,
costs, and profits.

▪ Things to Remember in Making A Business Plan:

1. Do your research – Research will enable you to gather vital information that will help
you determine your business structure, marketing strategies, and financing.
2. Determine whom the plan is for – Determine if your business plan will have more
than one purpose.
3. Pace yourself –Do not attempt to complete the plan in one session or do your plan
from start to finish.
4. Differentiate between actual and expected figures – Existing businesses use actual
figures in their business plans, performance reports, and forecasts. In your research,
you will come across statistics and financial figures.
5. Write your summary last – The summary is written once the content of your business
plan is completed and finalized.
6. Review your work – Make sure your plan is free from factual, spelling, and
grammatical errors.

Legal Forms and Requirements

✔ Official Requirements in Starting a Business - There are several legal requirements that
entrepreneurs should comply with before starting their business. These requirements are

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 submitted to the government that it can assess the eligibility of the registering owners
before granting them a permit to run a business.

▪ Basic Business Permits

The following are the permits and licenses required of all types of businesses:
1. Barangay clearance – This certifies that the business complies with the requirements of
the barangay where the business is located.
2. DTI Business Name Registration Certificate
3. SEC Certificate of Registration
4. Mayor’s Business Permit
5. BIR Certificate of Registration
6. SSS Employer’s Registration
7. PhilHealth Employer’s Registration
8. Pag-IBIG Employer’s Registration
9. DOLE Registration
▪ Special Business Permits
The following are the institutions that issue special business permits:
1. Bangko Sentral ng Pilipinas (BSP)
2. Bureau of Food and Drugs (BFAD)
3. Bureau of Animal Industry (BAI)
4. Bureau of Fisheries and Aquatic Resources (BFAR)
5. Bureau of Forest Development
6. Bureau of Plant Industry
7. Commission on Higher Education (CHED)
8. Department of Trade and Industry (DTI) and Bureau of Product Standards (BPS)
9. Fiber Industry Development Authority (FIDA)
10. Forest Management Bureau (FMB)
11. Garments and Textile Industry Development Office (GTIDO)
12. Insurance Commission (IC)
13. Intellectual Patent Office (IPO)
14. National Food Authority (NFA)
15. National Subcontractors Exchange (SUBCONEX)
16. National Tobacco Administration (NTA)
17. Philippine Coconut Authority (PCA)
18. Technical Education and Skills Development Authority (TESDA)

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 UNIT TEST:

Answer the following questions briefly:

1. What characteristics help entrepreneurs become successful in their business?

2. What are the advantages or disadvantages of having families run a business?
3. Why is a business plan important for entrepreneurs?
4. Why is it important for business start-ups to comply with legal requirements? How will
these ensure the success of the business?

Discussion Questions:

1. How does Henry Sy’s business empire conform to the model of a family business enterprise?
2. How has the management style of SM companies evolved now that Henry Sy’s children are in
control?

3. Do you believe that Henry Sy’s business legacy will thrive under the management of his
children? Why?

4. Form a group of five members. Research on a popular business in your community. This can
either be a microbusiness, small or medium-sized business, or a family business. Describe the
structure and organization of the company and make observations regarding the management

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style implemented by the owners. Evaluate the performance of the business based on the
information you gathered and present your work in class.

5. Describe a “dream business” that you want to handle in the future. Write an essay describing
how you would organize and manage this business, and how this venture will benefit you and
your community.

BIBLIOGRAPHY:

1. ORGANNIZATION AND MANAGEMENT FOR SENIOR HIGH SCHOOL

By: Cynthis A. Zarate, - C & E PUBLISHING – 2016

2. FUNDAMENTALS OF MANAGEMENT
By” Andrew J. Dubri – CENGAGE LEARNING ASIA – 2013

3. PRINCIPLES OF MANAGEMENT
By: Cynthia A. Zarate – C & E PUBLISHING – 2009

4. MANAGEMENT BASICS (EBOOK)

By: Susan Quinn, Associate Professor, Bisseh School of Business

5. INTRODUCTION TO PRINCIPLES OF MANAGEMENT (EBOOK)

By: Andy Schimitz

6. INTRODUCTION TO MANAGEMENT
By: Peter F. Drucker

Educational Websites :

1. https://www.wmich.edu/leadership/emo
2. https://en.wikipedia.org/wiki/For-profit_education
3. www.vu.nl/en/programmes/...organization-management.../index.aspx
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4. http://www.brainyquote.com/quotes/quotes/p/peterdruck131069.html
5. http://www.evancarmichael.com/famous-Entrepreneurs/643/Howard-Schultz-
Quotes.html

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