CHAPTER 1 NATURE AND CONCEPT OF MANAGEMENT Total Quality Management- is a management philosophy that focuses

LESSON 1 Definition and Functions of Management on the satisfaction of customers, their needs, and expectations.
Deming’s 12 Points for Top Fitness of Quality
Management-is the process of coordinating and overseeing the work Manangement According to Juran
performance of individuals working together in organization. 1. Create constancy of 1. Quality of Design-
-it is a process of defining and maintaining an environment for purpose for improvement through market research,
efficiently accomplishing selected aims(Weihrich and Koontz 2005). of products and services product, and concept
Functions of Management 2. Adopt the new TQM 2. Quality of Conformance-
1. Planning- involves determining the organization’s goals or philosophy through management,
performance objectives, defining strategic actions that must be manpower, and
done to accomplish them, and developing coordination and technology.
integration activities. 3. Cease dependence on 3. Availability-through
2. Organization- demands assigning tasks, setting aside funds, mass inspection by doing reliability,
and bringing harmonious relations among the individuals and things right and doing it maintainability, and
work groups or teams in the organization. right the first time. logistic support.
3. Staffing- indicates the filling in the different job positions in 4. End the practice of 4. Full Service- through
the organization’s structure, the factors that influence this awarding business on the promptness, competence,
function include: size of the organiztion, types of jobs, basis of price tag alone. and integrity
number of individuals to be recruited, and some internal or 5. Constantly improve the Juran’s Quality
external pressures. system of production and Planning Roadmap
4. Leading- entails inflencing or motivating subordinates to do services.
their best so that they would be able to help the organization’s 6. Institute training. 1. Identify your customers.
endeavor to attain their set goals. 7. Adopt and institute 2. Determine their needs.
5. Controlling- involves evaluating and, if necessary, correcting leadership.
the performance of the individuals or work groups or teams to 8. Drive out fear. 3. Translate them into one’s
ensure that they are all working toward the previously set language
goals and plans of the organization. 9. Break down barriers 4. Develop a product that
LESSON 2 Evolution of Management Theories between staff areas. can respond to needs.
Evolution- is usually defined as slow stages of growth and
10. Eliminate slogans, focus 5. Develop processes which
development, starting from simple forms to more complex forms.
on correction of defects are able to produce those
Scientific Management Theory- this theory makes use of the step by
in the system. product features.
step, scientific methods for finding the single best way for doing a job.
11. Eliminate numerical 6. Prove that the process
Frederick W. Taylor(1856-1915)- known as the Father of Scientific
quota for the work force. can produce the product.
Management.
12. Remove barriers that rob 7. Transfer the resulting
Taylor’s Scientific Management Principles (Robbins and Coulter
people of “pride of plans to the operating
2009) are as follows:
workmanship.” forces.
1. Develop a science for each element of an individual’s work to
replace the old rule of thumb method. 13. Encourage education and
2. Scientifically select and then train, teach, and develop the self-improvement for
worker. everyone.
3. Heartily cooperate with the workers so as to ensure that all 14. Take action to
work is done in accordance with the principles of the science accomplish the
that has been developed. trasformation.
4. Divide work and responsibility almost equally between Organizational Behavior Approach- it involves the study of the
management and workers. conduct, demeanor, or action of people at work.
General Administrative Theory-it concentrates on the manager’s LESSON 3 Functions, Roles, and Skills Of a Manager
functions and what makes up good management practice or Manager- an individual engaged in management activities.
implementation. Top-level management- is typically composed of the organization’s
Henri Fayol (1841-1945) believed that management is an activity that chairman or chairwoman, chief executive officer, president, managing
all organizations must practice and vieved it as separate from all other director, and other high-ranking company executives.
organizational activities such as marketing, finance, research and 3 levels of Management
development, and others. 1. Top-level Managers- are the general or strategic managers
Max Weber (1864-1920)- a German sociologist wrote in the early who focus on long-term organizational concerns and
1900s that ideal organizations, especially large ones, must have emphasize the organization’s stability, development, progress,
authority structures and coordination with others based on what he and overall efficiency and effectiveness.
referred to as Bureaucracy. 2. Middle-level Managers- are the tactical managers in charge
Henri Fayol’s Management Bureaucracy According to of the organization’s middle levels or departments.
Principles Max Weber 3. Frontline or Lower-level Managers- are also known as
1.Work division or According to Weber, operational managers and are responsible for supervising the
specialization bureaucracy is an organization’s day-to-day activities; they are the bridges
organizational form between management and management employees.
2.Authority
distinguished by the Managerial roles According to Mintzberg
3.Discipline
following components: Interpersonal Leader, liaison, figurehead
4.Unity of Command
Informational Spokeperson, monitor, disseminator
5.Unity of direction
 division of labor Decisional or Disturbance handler, resource allocator,
6. Subordination of
 hierarchical decision-making negotiator, entrepreneur
individual interest to
general interest identification of job Managerial skills classified as:
positions 1. Conceptual Skills- enable managers to think of possible
7. Remuneration/pay
 detailed rules and solutions to complex problem. Through their ability to
8. Centralization
regulations visualize abstract solutions, they develop a holistic view of
9. Scalar chain of authority
 impersonal their organization and its relation to the wider external
10. Maintenance of order
connections with one environment surrounding it.
11. Equity/fairness 2. Human Skills- enable managers in all levels to relate well
12. Stability/security of another
with people. Communicating, leading, inspiring, and
tenure of workers motivating them become easy with the help of human skills.
13. Employee initiative 3. Technical Skills- it is important for managers for them to
14. Promotion of team perform their tasks with proficiency with the use of their
spirit or esprit de corps expertise.
CHAPTER 2 THE FIRM AND ITS ENVIRONMENT Organizational Internal Business Environment is composed of its
LESSON 1 Environmental Forces and Environmental Scanning resources, research and development, production, procurement of
Environmental scanning- seeking for and sorting through data about supplies, and the products and services it offers. The Organizational
the environment Internal Environment must be Also subjected to internal analysis,
External business environment- refers to the factors/elements outside Internal strengths and weaknesses, opportunities and threats (SWOT)
the organization which may affect, either positively or negatively, the with regards to its resources (Financial, Physical, Mechanical,
performance of the organization Technological, and Human Resources)
Internal business environment- refers to the factor/elements within COMPONENTS OF ENVIRONMENTAL SCANNING
the organization which may effect, either positively or negatively, the 1. COMPETITIVE MINDSET Adapting to environmental
performance of the organization uncertainties must star with developing a Competitive mindset.
COMPONENT OF THE EXTERNAL BUSINESS By seeking and sorting through data about the environment,
ENVIRONMENT: GENERAL AND SPECIFIC you’re able to understand and predict the vatious changes,
Systematic Monitoring of the major external forces influencing opportunities, and threats that may affect organizations in the
organizations is necessary to improve the management of companies. future.
The GENERAL BUSINESS ENVIRONMENT includes the 2. CONSIDERING FUTURE BUSINESS SCENARIOS By
Economic , Sociocultural, Politico-legal, Demographic, Technological, realistic consideration of both worth case scenario or unfavorable
World and Ecological Situations All these must be considered as future conditions and best-case scenario or favorable future
managers Plan, Organize, Staff, Lead, and Control their respective conditions, as well as middle- ground possible conditions, you
organizations. will have an idea of what to do in the future.
1. ECONOMIC SITUATIONS -may affect management 3. BUSINESS PREDICTION, also known as business forecasting,
practices in organizations. Ex. Companies may Postpone it is a method of predicting how variables in the environment will
expansion plans if bank loan interests are too high. alter the future of business.
2. SOCIOCULTURAL SITUATIONS -include the 4. BENCHMARKING is defined as the process of measuring or
costumers’ changing values and preferences; customs could comparing one’s own products, services, and practices of those of
also affect management practices in companies. Ex. Filipino the recognized industry leaders in order to identify areas for
costumers are now conscious about the importance of improvement.
avoiding fatty foods.  LESSON 2: THE LOCAL AND INTERNATIONAL BUSINESS
3. Politicolegal Situations refer to National or Local Laws, ENVIRONMENT OF THE FIRM
International laws & Rules and regulations that influences Understanding the local and international business environment of the
organizational management. Ex. Labor Laws related to firm requires managers of organizations to sharpen their cultural
preventing employers from firing their employees without intelligence.
due process require the former to allow the latter to exercise CULTURAL INTELLIGENCE is an Individual’s ability to favorably
their right to present their position during disciplinary action receive and adjust to an unfamiliar way of doing things.
before their employment can be terminated. Anthropologist EDWARD T. HALL, as cited by SCHERMERHORN
4. DEMOGRAPHIC SITUATIONS such as Gender, Age, (2008), the way people approach and deal with the time varies across
Education Level, Income, Number of Family Members, cultures.
Geographic Origin, etc., may also influence some managerial MONOCHRONIC CULTURES refer to cultures wherein people tend
decisions in Organizations. Ex. Decisions Regarding Hiring to do one thing at a time; also, these cultures emphasize punctuality
of Human Resources maybe affected by an organization’s and sticking to set rules.
management policy. POLYCHRONIC CULTURES are more flexible as regards time;
5. TECHNOLOGICAL SITUATIONS Involve the use of accomplishing many different things at once is also common for these
varied types of electronic gadgets and advanced technology cultures.
such as Computers, Robotics, Microprocessors, and others Geert Hofstede, cited by SCHERMERHORN (2008), showed how
that have revolutionized business management; e-commerce, selected countries ranked on the five cultural dimensions he studied
teleconferencing, and sophisticated information system. 1. POWER DISTANCE The degree to which a society accepts
6. WORLD AND ECOLOGICAL SITUATIONS are related or rejects the unequal distribution of power among people in
to the increasing number of global competitors and markets, organizations and the institutions of society.
as well as the nature and conditions of the changing natural 2. UNCERTAINTY AVOIDANCE The degree to which
environment. It must cater to the changing needs of people in society is uncomfortable with risk, change, and situational
the global community, while, at the same time, considering uncertainty.
their impact on the natural Environment Ex. Car 3. INDIVIDUALISM-COLLECTIVISM The degree to which
manufacturing managers must give the go signal for the a society emphasize individual accomplishments versus
development of vehicles that are environmental friendly. collective accomplishments
 Business Environment focuses on STAKEHOLDERS, 4. MASCULINITY-FEMININITY The degree to which a
COSTUMERS, PRESSURE GROUPS, and INVESTORS or society values assertiveness and feelings of material success
OWNERS and their EMPLOYEES. versus concern for relationship.
STAKEHOLDERS are parties likely to be affected by the activities of 5. TIME ORIENTATION The degree to which a society
the organization. emphasizes short-term thinking versus greater concern for the
COSTUMERS are those who patronized the organization’s product future or long- term thinking.
and services. Increasing costumer specification makes it necessary for Managing and Disciplining workers who practices this habit would be
managers of organizations to make crucial decisions regarding the easier for managers if they are able to identify the worker who adhere
development of products with higher value and improvement of their to such negative work habit and prevent them from doing it.
services to meet their patrons’ increasing demands. MANAGING IN A WORLDWIDE ENVIRONMENT
SUPPLIERS are those who ensure the organizations continuous flow The economic and social benefits that come with globalization are said
of needed and reasonably priced input or materials required for to be among the positive outcomes. The culture of different countries
producing their goods and rendering their services. are rooted in their history, religion, traditions, beliefs, and deep-seated
PRESSURE GROUPS interest groups that try to exert influence on values and because of these, managing globally can be very
the organization’s decisions or Actions. complicated.
INVESTORS or OWNERS provide the company with the financial Cultural environment, the Politico-legal, and Economic environments
support needs. The company, of course, cannot exist without them; must also be considered. The Politico-Legal environment refers to the
thus, they greatly influence organizational management. laws and political climate of different countries.
 EMPLOYEES are comprised to do those who work for another or for LESSON 3: PHASES OF ECONOMIC DEVELOPMENT
an employer in exchange of salaries/wages or other considerations. Sustainable economic development ensures that the present needs of a
Employees execute the company’s strategies and are important for the particular generation are fully met without endangering the ability of
maintenance of the company’s stability. future generations to also fully meet their own needs.
COMPONENTS OF THE INTERNAL BUSINESS  Business managers must be conscious of their decisions to avoid the
ENVIRONMENT abuse ecological elements-air, water, and soil- as this will threaten
sustainable economic development
September 2000, world leaders gathered for the Millennium Summit, developing plans of action or means that managers intend to use to
they had committed their nations to a global partnership toward achieve organizational goals.
reduction of extreme poverty and the pursuit of the Millennium Planning is important for the ff. Reasons:
development Goals (MDG) 1. Planning provides direction to all of the organization’s human
MDG’s are “the world’s time-bound and quantified for addressing resources-both managers as well as employees.
extreme poverty in its many dimensions— income poverty, hunger, 2. Planning is important because it reduces uncertainty;
disease, lack of adequate shelter, and exclusion—while promoting 3. Minimizing of wastes will result if there is proper
gender equality, education, and environmental stability” coordination of activities due to planning:
MDG’s • Eradicate Extreme Hunger and Poverty, Achieve universal 4. Establishing goals and standards during planning may be used
primary education, Promote Gender equality and empower women, for controlling.
Reduce child mortality, Improve maternal health , Combat HIV/AIDS, Plans are the actions or means that administrators/managers intend to
Malaria and other diseases, Ensure environmental sustainability and use to achieve organizational goals
develop a global partnership for development Goals are the targets or desired ends that management wants to reach.
Economic development- is a total process which includes not only Organizational plans can be generally described in terms of:
economic growth or the increase in the given amount of goods and 1. Comprehensiveness refers to the completeness of planning
services produced by the country’s economy but also considers the coverage
social, political, cultural, and spiritual aspects of the country’s growth 2. Length of time covered or time frame
Economic development phases-are the distinct stages involved in the 3. Specifity refers to very detailed, clearly defined plans wherein
total process of economic development in a particular country; these objectives are clearly stated ad could be easily understood.
include economic growth, improvement of human Development Index, 4. Frequency of use refers to the number of times or instances a
availability of benefits provided by science and technology, and the plan may be used.
societal improvement of the opportunities and general welfare of its Types of Planning
members. 1. Strategic plans-plans that establish the organization’s overall
goals and apply to the entire firm
LESSON 4: FORMS OF BUSINESS ORGANIZATIONS 2. Operational plans- plans that apply to a particular unit area
Organization is a collection of people working together to achieve a only
common purpose. 3. Long-term plans-plans that cover one year or less.
Business organization a collection of people working together to 4. Directional plans- plans that are flexible or give general
achieve a common purpose in relation to their organization’s mission, guidelines only;
vision, goals, and objectives, sharing a common organizational culture. 5. Specific plans-plans that are clearly stated and which have no
Organizational structure the set of beliefs and values shared by room for interpretation
organization members which guide them as they work together to 6. Single-use plans- plans used or stated once only as this
achieve their common purpose applies to the entire organization
Business organizations may be traditional (simple, functional, 7. Standing plans-plans that are ongoing; provide guidance for
divisional, profit, or nonprofit) or open/flexible in form. different activities done repeatedly
Simple business organizations-business organizations with few
departments, centralized authority with a wide span of control, and Steps in planning
with few formal rules and regulations. 1. Define your goals/objectives by identifying desired
Functional business organization- business organizations that group outcomes/results in very specific ways.
together those with similar or related specialized duties that introduce 2. Determine where you stand in relation to set goals/objectives;
the concept of delegation of authority to functional managers. know your strengths and weaknesses
Divisional business organizations-business organizations made up of 3. Develop premises regarding future conditions; anticipate
separate business units that are semiautonomous or semiindependent, future events, generate alternative “scenarios” for what may
with a division head responsible for his or her unit’s performance. happen; identify for each scenario things that may help or
Profit business organizations- business organizations designed for the hinder progress toward your goals/objectives
purpose of achieving their organizations mission, vision, goals, and 4. Analyze and choose among action alternatives, list and
objectives and maintaining their organizational stability through carefully evaluate possible actions and choose the alternative
income generation and profit-making activities. most likely to accomplish goals/objectives.
Nonprofit organizations- business organizations designed for the 5. Implement the plan and evaluate results; take corrective action
purpose of achieving their organizations’ mission, vision, goals, and and revise plans as needed.
objectives, providing service to clients without expecting monetary
gains or financial benefits for their endeavors. Planning at Different Levels in the Firm
Open/flexible business organizations- formed to meet today’s 1. Top-level Management Planning (Strategic Planning)- are
changing work environment. responsible for the organization’s strategic planning which
1. Team structures-where the organization as a whole is made up involves making decisions about the organization’s long-term
of work teams that work together to achieve the organization’s goals and strategies.
purpose, popular in collectivist culture. 2. Middle-level Management Planning(Tactical Planning)
2. Matrix business orgaizations-those which assign experts or refers to a set of procedures for changing or transforming
specialists belonging to different functional departments to broad strategic goals and plans into specific goals and plans
work together on one or more projects; exhibit dual reporting that are applicable and needed in one unit/portion of the
relationships in which managers report to two superiors-the organization.
functional manager and the divisional manager. 3. Opreational planning involves identifying the specific
3. Project business structure- a business organizational form with procedures and processes required at the lower levels of the
a flexible design, where the employees continuously work on organization.
projects assigned to them; projects may be short-term or long- Planning Techniques and Tools
term and members diband whenthe project is completed. 1. Forecasting is an attempt to predict what may happen in the
4. Boundaryless business organization- abusiness organization future.
whose design eliminates vertical, horizontal, or external 2. Contingency plans must be prepared by managers, ready for
boundaries, and is described to be flexible and unstructured; implementation when things do not turn out as they should be.
there are no barriers to information flow and, therefore, -trigger points- change in an attribute, condition, factor,
completion of work is fast parameter, or value that represents crossing a threshold and
Virtual business organization- made up of a small group of full-time actuates or initiates a mechanism or reaction that may lead to
workers and outside experts who are hired on a temporary basis to a radically different state of affairs
work on assigned projects; members are physically dispersed and 3. Scenario planning- planning for future states of
usually communicate electronically. CHAPTER 3 PLANNING affairs is a long-term version of contingency
Planning- a process that involves the setting of the organization’s planning.
goals, establishing stratrgies for accomplishing those goals, and 4. Benchmarking- is another planning technique
 that generally involves external comparisons of a company’s report to the superiors, the functional managers, and the
practices and technologies with those of other companies. divisional managers
5. Participatory planning is a planning process that Organizational design- the manner in which a management achieves
includes the people who will be affected by the plans and the right combination of differentiation and integration of the
those who will be asked to implement them in all planning organization’s operations, in response to the level of uncertainty in its
steps. external environment.
Decision-making- is a process which begins with problem Two classification of theories regarding Organizational design
identification and ends with the evaluation of implemented solutions 1. Traditional pertains to the usual or old fashioned ways
The decision-making Process according to Robbins and Coulter 2. Modern refers to contemporary or new design theories
1. Identify the problem Traditional organizational design theories
2. Identify the decision Criteria 1. Simple- this organizational design has few departments,
3. Allocate Weights to the Criteria wide spans of control, or a big number of subordinates
4. Develop alternatives directly reporting to a manager; has a centralized
5. Analyze the alternatives authority figure and has very little formalization of work
6. Select an alternatives 2. Functional- this organizational design groups together
7. Implement the chosen alternatives similar or related specialities. It is generally, functional
8. Evaluate Decision Effectiveness departmentalization utilized and put into practice in an
Types of Decisions entire organization.
1. Structured or programmed decision- a decision that is 3. Divisional- this organizational design is made up of
repetitive and can be handled by using a routine separate business divisions or units, where the parent
approach. corporation acts ar overseeer to coordinate and control the
2. Unstructured or nonprogrammed decisions- applied to different divisions and provide financial and legal support
the resolution of problems that are new or unusual, and services.
for which information is incomplete. 4. Team design- the entire organization is made up of work
Types of Decision-making Conditions groups or teams.
1. Certainty conditions- ideal conditions in deciding 5. Matrix design- refers to an organization design where
problems; these are situations in which a manager can specialists from different departments work on projects
make precise decisions because the results of all that are supervised by a project manager.
alternatives are known. 6. Project design refers to an organizational design where
2. Risk or uncertainty conditions- compel the decision employees continuously work on a project.
maker to do estimates regarding the possible occurence of 7. Boundary-less design- where the design is not defined or
certain outcomes that may affect his or her chosen limeted by vertical, horizontal, and external boundaries.
solution to a problem. Delegation refers to assigning a new or additinal task to a
CHAPTER 4 ORGANIZING subordinates; it may also refer to getting work done through others by
Organization- a collection of people or groups of people working giving them the right to make decisions and take actions
together to achieve a common goal Steps in delegation
Organizing- a management function which involves assigning tasks, 1. Defining the goal clearly
allocating resources, and coordinating work activities in order to 2. Selecting the person who will be given the task
achieve a common purpose 3. Assigning of responsibility
Organization chart- a visual representation of the organization’s 4. Asking the person assigned about his or her planned
structure showing the different job positions in the firm and their approaches to accomplish the task objectives
hierarchical arrangement for the purpose of dividing labor and 5. Granting the assigned person the authority to act
providing a picture of the reporting structure. 6. Giving the assigned person enough time and resources to do
Division of labor involves in assigning different tasks to different the task, while at the same time emphasizing his or her
people in the organization’s different work units. accountability
Specialization- the process in which different individuals and units 7. Checking the tsk accomplishment progress
perform different tasks. 8. Making sure that the task objective has been achieved
Types of Organization structure
1. Vertical structure clears out issues related to authority rights, Advantages of Delegation Disadvantages of
responsibilities, and reporting relationships. Authority rights Delegation
refer to the legitimate rights of individuals, appointed in It prevents work overload among It may cause
positions like president, vice president, manager, and the like organization managers. laziness among
to give orders to their subordinates, who in turn, report to organization
them what they have done. managers
2. Horizontal structure refers to the departmentalization of an It provides opportunities for It may encourage
organization into smaller work units as tasks become employee or subordinates assigned to too much
increasingly varied and numerous. do the task to fully utilize their dependence on
3. Network structure is a collection of independent, usually talents on the job. others.
single function organizations/companies that work together in It leads to empowerment of It may cause lack
order to produce a product or service. employees or subordinates assigned of control over
Two types of Departments to do the task, as it allows them priority
1. Line departments- deals directly with the firm’s primary freedom to contribute ideas and to management
goods and services; responsible for manufacturing, perform their job in the best possible problems.
selling, and providing services to clients. way.
2. Staff departments- support the activities of the line It increases job satisfaction among It may cause low
departments by doing research, attending to legal matters, the assigned employees or self-confidence
performing public relations duties, etc. subordinates, that may lead to better among managers.
Three approaches of Departmentalization job performance.
1. Functional approach- where the subdivisions are formed Formal organization are characterized by hierarchical and reporting
based on specialized activities such as marketing, relationships among groups or members.
production, financial management, and human resources Informal organization consist of informal groups born out of the need
management for social affiliation.
2. Divisional approach- where departments are formed Formal organizations functions/advantages
based on management of their products, customers, or 1. Accomplish goals that require cooperation or collaboration
geographic areas covered among formal groups in the organization
3. Matrix approach- is a hybrid form of 2. Produce or bring about new and creative ideas and solutions to
departmentalization where managers and staff personnel company problems
3. Coordinate interdepartmental activities
 4. Implement company rules/regulations and policies Steps in hiring employees
5. Orient/train new employees 1. Determining a need
Informal organization’s functions/advantages -job analysis
1. Satisfy the members’ need for affiliation 2. Application search and selection
2. Give the individual members a change to develop their self- a. Recruitment
esteem b. Screening and selection
3. Give individual members an opportunity to share their ideas c. interviews
4. Lessen individual members’ insecurities 3. Decision-making process
5. Provide a mechanism to solve members’ personal and a. Making a decision
interpersonal problems b. Notification and employment offer
Advantages 4. Adaptation to the workplace
Formal Informal -orientation
1. Working systematically 1. Fast communincation Types of Job Interviews
2. Establish on and for the due to the absence of 1. Structured interview- the interviewer asks the applicant to
organization’s objectives standard operationg answer a set of prepared questions
3. No duplication or procedures and protocols 2. Unstructured interview- the interviewer has no interview
overlapping of work 2. Gives importance to the guide and may ask questions freely
4. Efficient coordination psychological and social 3. One-on One interview- one interview is assigned to interview
among departments needs of employees the applicant
5. Implementation of chain 3. Top managers can solicit 4. Panel interview- several interviewers may conduct interview
of command and feedback directly from of applicants
professional relationship the employees on new Types of Employment Tests
policies and plans 1. Intelligence test-designed to measure the applicant’s mental
1. Delay in feedback and 1. More susceptible to capacity
action due to the rumor mongering 2. Proficency and aptitude tests-tests his or her present skills and
established chain of 2. There is no systematic potential for learning other skills
comand workflow in place 3. Personal tests-designed to reveal the applicant’s personal
2. Ignores the 3. Difficulty in characteristics and ability to relate with others
psychological and social implementing new rules 4. Vocational tests-tests to show the occupation best suited to
needs of employees and policies applicant
3. Emphasis on work only 4. More emphasis on the Training- learning given by organizations to its employees that
and overlooks the human individual interest of concentrates on short-term job performance and acquisition or
relations, talents, and each employee rather improvement of job-related skills
creativity of employees than the overall goal of Development- learning given by organizations to its employees that is
the company geared toward the individual’s acquisition and expansion of his or her
CHAPTER 5 STAFFING skills in preparation fpor future job appointments and other
Staffing- refers to filling in all organizational job positions and responsibilities.
keeping these filled; it is done by identifying job position vacancies, Developing employees-is a part of an organization’s carrer
job requirements, workforce requirements, checking the internal management program and its goal is to match the individual’s
environment of the organization for the human resources available, development needs with the needs of the organization.
recruiting, selecting, placing, promoting, evaluating, career planning, Compensation/wages- all forms of pay given by employers to their
development and training, and compensating, among others. employees for the performance of their job
Systems approach to staffing-is the step-by-step way of filling job Performance evaluation- a process undertaken by the organization,
positions in organizations, considering variables like numbers and usually done once a year, designed to measure employees’ work
kinds of human resources needed, open managerial and nonmanagerial performance
positions, potentials succesors to open job positions, etc. Types of compensation
Recruitment-is a set of activities designed to attract qualified 1. Direct compensation- includes workers’ salaries, incentive
applicants for job position vacancies in an organization. pays, bonuses, and commisions
External recruitment-outside sources are considered in the process of 2. Indirect compensation- includes benefits given by employers
locating potential individuals who might want to join organization and other than financial remunerations; examples: travel,
encouraging them to apply for actual or anticipated job vacancies. educational and health benefits, and others
Internal recruitment-filling job vacancies can be done through 3. Nonfinancial compensation- includes recognition programs,
promotions or transfer of employees who are already part of the being assigned to do rewarding jobs, or enjoying management
organization. support, ideal work environment, and convenient work hours.
Method of External and Internal Recruitment Pay Equity-related to fairness
1. Advertisement Equity Theory- is a motivation theory focusing on employees’
2. Unsolicited applications response to the pay that they receive and the feeling that they
3. Internet recruiting receive less or more than they deserve.
4. Employee referrals Expentancy theory- it predicts that employees are motivated to
5. Executive search firms work well because of the attractiveness of the rewards or benefits
6. Educational institutions that they may possibly receive from a job assignment.
7. Professional associations Bases for Compensation
8. Labor unions 1. Piecework basis- when pay is computed according to the
9. Public and private employment agencies number of units produced
Selection- the process of choosing individuals who have the required 2. Hourly basis- when pay is computed according to the number
qualifications to fill present and expected job openings. of work hours rendered
Steps in Selection 3. Daily basis- when pay is computed according to the number
1. Establishing the selection criteria of work days rendered
2. Requesting applicants to complete the application form 4. Weekly basis- when pay is computed according to the
3. Screening by listing applicants who seem to meet the set number of work weeks rendered
criteria 5. Monthly basis- when pay is computed according to the
4. Screening interview to identify more promising applicants number of work months rendered
5. Interview by the supervisor/manager or panel interviewers Purposes of Performance Evaluation
6. Verifying information provided by the applicant 1. Administrative Purposes- these are fulfilled through
7. Requesting the applicant to undergo psychological and appraisal evaluation programs that provide information
physical examination that may be used as basis for compensation decisions,
8. Informing the applicant that he or she has been chosen for the promotions, transfers, and terminations.
position applied for
 2. Developmental Purposes- these are fulfilled through 5. Openness to experience- the degree to which someone is
appraisal evaluation programs that provide information imaginative, artistically sensitive, and intellectual
about employees’ performance and their strengths and Emotional Intelligence pertains to the ability to manage one’s self and
weaknesses that may be used as basis for identifying their interact with others in a positive way.
training and development needs. 4 key components of Emotional intelligence
1. Self awareness
Performance Appraisal Merhods 2. Self management
1. Trait methods 3. Social awareness
2. Graphic rating scales 4. Relationship management
3. Forced-choice method Organizational Citizenship Behaviour(OCB)- employee behavior
4. Behaviorally anchored rating scale that exceeds work role requirements; behaviors that go beyond the call
5. Behavior observation scale of duty
Employee relations- the connection created among Organizational Commitment- extent to which an individual
employees/workers as they go about their assigned tasks for the employee identifies with an organization and its goals
organization to which they belong. Job Satisfaction and Productivity- job satisfaction refers to
Types of Employees employees’ general attitude toward their respective jobs
1. Engaged- employees who work with passion and feel a deep
connection with their company Lesson 2 Motivation
2. Not engaged- employees who are essentially’checked out”, Motivation- refers to psychological processes that arouse and direct
they put time, but not energy or passion, into their work goal-directed behavior
3. Actively disengaged- employees who are not only unhappy at Theories of Motivation
work, but also act out their unhappiness 1. Maslow’s Hierarchy of Needs Theory- refers to Maslow’s
Employee movements-series of actions initiated by employee groups Hierarchy of five Human Needs:
tending toward an end or specific goal. a. Physiological Needs refer to the human need for good,
Labor union- is a formal union of employees/workers that deals with water, shelter, and other physical necessities.
employers, representimg workers in their pursuit of justice and fairness b. Safety Needs refer to human needs for security and
and in their fight for their collective or common interests. protection from physical and psychological harm
Reasons for Employees/workers unionize c. Social Needs pertain to the human desire to be loved and
1. Financial needs- complaints regarding wages to be love, as well as the need for affection and
2. Unfair management practices- biased managerial actions. belongingness.
3. Social and leadership concerns d. Esteem Needs include the human need for self-respect,
Steps in union Organizing self-fulfillment, and to become the best according to
1. Employee/union contract one’s capability
2. Initial organizational meeting e. Self-actualization Needs are the final needs in Maslow’s
3. Formation of in-house organizing committee Hierarchy.
4. If a sufficient number of employees support the union 2. McGregor’s Theory X and Theory Y- was proposed by
movement, the organizer requests for a representation election Douglas McGregor
or certification election a. Theory X is a negative view of workers which assumes
5. End of union organizing that workers have little ambition, dislike work, and avoid
a. Prepare for negotiations responsibilities
b. Develop strategies b. Theory Y is a positive view of workers which assumes
c. Conduct negotiations that employees enjoy work, seek out and accept
d. Formalize agreement responsibility, and are self-directed.
Grievance Procedure is a formal procedure that authorizes the union 3. Herzberg’s two Factor Theory- was proposed by Frederick
to represent its members in processing a grievance or complaint. Herzberg
Monetary rewards- rewards w/c pertain to money, finance, or This theory is also known as the Motivation-Hygiene Theory
currency. which states that intrinsic factors (achievement, recognition,
a. Pay/salary growth, and responsibility) are associated with job
b. Benefits satisfaction, while extrinsic factors (company policy, salary,
c. Incentives security, and supervision) are associated with job
d. Executive pay dissatisfaction.
e. Stock option 4. McClelland’s Three Needs Theory-was proposed by David
Nonmonetary rewards McClelland and states that individuals have three needs that
1. Award serve as motivators at work
2. Praise a. The need for achievement
b. The need for power
CHAPTER 6 LEADING c. The need for affiliation
Lesson 1 What is Leading 5. Alderfer’s ERG Theory- was developed by Clayton Alderfer
Leading- a management function that involves inspiring and in the 1960s
influencing people in the organization to achieve a common goal. E- Existence needs
Managing- the process of working with and through others to achieve R- refers to relatedness needs
organizational objectives efficiently and ethically amid constant G- pertains to growth needs
change; deals with planning, organizing, staffing, and controlling. 6. Modern Theories of Motivation are process theories that
Personality of Human Resources focus on the notion that motivation is afunction of employees’
A person is said to possess a healthy personality if he or she is fully perceptions, thoughs, and beliefs. Among these are:
functioning in mind, body, and spirit; he or she is an optimal person 1. Goal setting Theory- a theory stating that specific goals
functioning at thr highest level. motivate performance and that more difficult goals, when
Big Five Personality Characteristics accepted by employees, result in greater motivation to
1. Extraversion- the degree to which someone is sociable, perfoem well, as compared to easy goals
talkative, and assertive 2. Reinforcement Theory- a theory which states that
2. Agreeableness- the degree to which someone is good natured, behavior is a function of its consequences
cooperative, and trusting 3. Job Design Theory- a theory which states that
3. Conscientiousness- the degree to which someone is employees are motivated to work well by combining
responsible, dependable, persistent, and achievement oriented tasks to form complete jobs.
4. Emotional stability- the degree to which someone is calm, 4. Equity Theory- a theory developed by J. Stacey Adams
enthusiastic, and secure (positive), or tense, nervous, which states that employees assess job outcomes in
depressed, and insecure (negative) relation to what they put into it and then compare these
with their co-workers’
 5. Expectancy Theory- states that an individual tends to act Types of Communication
in a certain way, based on the expectation that the act will 1. Verbal- through the use of oral and written words
be followed by an outcome which may be attractive or 2. Nonverbal- through the body movements, gestures, facial
unattractive to him or her expressions, eye contact, and by touching.
Lesson 3 Leadership Theories Classification of Communication
Leadership- the process of inspiring and influencing a group of people 1. Formal- if communication takes place within prescribed,
to achieve a common goal routine organizational work arrangement
Leadership Theories 2. Informal- if communication is not defined by an
1. Trait Theory- a theory based on leader traits or personal organization’s hierarchical structure.
characteristics that differentiate leaders from followers Direction and Flow of Communication
2. Behavioral Theory- a theory that focuses on the behavior, 1. Vertical communication- involves communication flow
action, conduct, demeanor, or deportment of a leader instead between people belonging to different organizational levels
of on his or her personality traits 2. Upward communication- is the flow of information from an
Contemporary Theories of Leadership employee who belongs to a lower hierarchical level to the
1. Fiedler Model- a situational leadership theory proposed by boss/manager who belong to a higher hierarchical level.
Fred Fiedler, an organizational behavior scholar 3. Downward communication- is the flow of information from
This theory is based on the assumption that a leader’s manager, who belongs to a higher hierarchical level, to the
effectiveness is contingent or dependent on the extent to subordinates/employees, who belong to lower hierarchical
which a leader’s style is fitted to actual situations in the levels.
organization’s internal and external environment. 4. Horizontal/lateral communication- takes place among
2. Hersey-Blanchard Model- another situational leadership employees belonging to the same hierarchical level
theory proposed by Paul Hersey and Ken Blanchard 5. Diagonal communication- entails communicating with
This theory focused on subordinates’ readiness or the extent to someone or others who belong to different departments/units
which the said subordinates have the ability and willingness to and different hierarchical levels.
accomplish a specific work assignment. Communication Networks- are varied patterns of combined
4 stages of Subordinate Readiness horizontal and vertical flows of organizational communication.
1. R1-Where the subordinates are both unable and Types of communication networks
unwilling to accomplish 1. Chain network- where the communication flows according to
2. R2-Where the subordinates are unable but willing to the usual formal chain of command, downward and upward
do the task 2. Wheel network- where communication flows between a
3. R3-Where the subordinates are able but unwilling to leader and other members of their group/team
do their assigned tasks 3. All-channel network- where the communication flows freely
4. R4- Where the subordinates are both able and willing among all members of a team
to do what the leader wants to complete the task Barriers to communication
3. Path-Goal Theory- a theory developed by Robert House 1. Filtering- the shaping of information communicated in order
which states that the leader’s task is to lead his followers or to make it look good or advantageous to the reciever
subordinates in achieving their goals by providing them 2. Emotions- the interpretation of communications may be
direction needed in order to ensure compatibility of these said influenced by extreme emotions felt by receiver
goals with the organization’s goal 3. Information overload- many pieces of information recieved
4 leadership Behaviors by House may have a negative effect on a person’s processing capacity
1. Directive leadership- where the leader gives specific 4. Defensiveness- the act of self-protection when people are
guidelines to followers so that task accomplishmentwould threatened by something or someone
be eaasier 5. Language- could also hamper good communications because
2. Supportive leadership- where the leader shows concern words used may have different meanings to different people
and friendliness to subordinates; belonging to different age, educational, or cultural group
3. Participative leadership- where the leader asks for 6. National culture- the prevailing national culture may also
suggestions from followers before decision- making; cause problems in communication among members of an
4. Achievement-oriented leadership- where the leader sets organization, especially, if it is multinational company
the goals that subordinates must try to achieve. Overcoming Communication Barriers
Modern Leadership Views 1. Using feedback- this is usually done by asking questions
1. Transactional Leadership Model- a theoretical model which about a memo sent to subordinates or by asking them to give
states that leaders guide their subordinates toward the their comments or suggestions.
achievement of their organization’s goals by using social 2. Using simple language- this is done by avioiding uncommon
exchange or transactions and by offering rewards in exchange terms and flowery words that may just cause
for their productivity misinterpretation.
2. Transformational Leadership Model- a view that developed 3. Active listening- this means listening well in order to grasp
from transactional leadership; it states that leaders inspire or the full meaning of the communication.
trasform followers to achieve extraordinary outcomes; through 4. Controlling emotions- this is another method of overcoming
their leadership, they are able to excite and inspire followers communication misinterpretation.
to exert extra effort to achieve group goals 5. Observing body language- this is also influences how
3. Charismatic Leadership Theory- another modern theory of communication is interpreted.
leadership which states that leaders who have a charismatic
personality are able to influence their subordiantes to follow Lesson 5 Management of Change and Diversity in
them Organizations
4. Visionary Leadership Theory- is a theory which states that -are two related activities/functions of management because trying to
leaders are able to make their subordinates follow because of bring about change in organizations is dependent on the kind and the
their ability to create and articulate a realistic, credible, and behavior of the people within them.
attractive vision that may improve present conditions or Organizational change- any alteration of people, structure, or
circumstances technology in organizations brought about by external or internal
5. Team Leadership Theory- is a theory that emergedd because forces which they encounter
of the fact that leadership is increasingly taking place within a Organizational diversity- the host of individual differences that make
team context and that more companies are now utilizing work people in organizations different from and similar to each other
teams led or guided by leaders Types of Change
6. Servant Leadership Theory- a theory proposed by Robert 1. Changes in people
Geenleaf in 1970 stating that servant-leaders must focus on Kurt Lewin’s description of the process of change
inceased service to others rather than to one’s self a. Unfreezing- faced with a dilemma or issue, the individual
Lesson 4 Communication or group becomes awarw of a need for change
Communication- the exchange of information and understanding
 b. Changing- the situation is diagnosed and new models of 1. Gender Egalitarianism- refers to the amount of effort which
behavior are explored and tested must be put into minimizing gender discrimination and role
c. Refreezing- application of new behavior is evaluated, inequalities
and if it proves to be reinforcing, the behavior is adapted. 2. Assertiveness- refers to how confrontational and dominant
2. Changes in Structure individuals should be in social relationships
3. Changes in Technology 3. Performance Orientation- refers to how much individuals
Managing Resistance to Change should be rewarded for improvement and excellence
1. Education- employees have to be educated regarding the 4. Humane Orientation- refers to how much society should
reasons for and the relevance of change encourage and reward people for being kind, fair, friendly,
2. Participation- by allowing organization members to and generous
participate in decision- making related to bringing about
change in their company Cultural relativism vs. Ethnocentrism
3. Facilitation and support- by facilitating or providing new Refers to the different The belief that one’s one
skills training and counselling for employees to minimize their interpretations of the same way of life or culture is
fear of change or similar behavior by superior to others
4. Manipulation of information- by withholding damaging members of different  It is important to
information about change to make it acceptable to cultures understand that
organization members  It is important to people develop
5. Selection of people- by selecting people who are open to interpret or culture through
change to help disseminate the beneficial effects of change, understand the adaptation to their
resistance to change is lessened actions of the surroundings
6. Coercion- is the use of direct threats or force to make people members of other
accept change; however, this method is perceived as a form of groups in terms of
bullying, so it is used only when extremely necessary. their particular
New Issues in Change Management cultures
1. Understanding Situational Factors- waiting for the
appropriaate time and situation is suggested when bringing
about change in organizations.
2. Making Changes in Organizational Culture- ( Robbins and
Coulter in 2009 suggest the following steps:
a. Set the tone through management behavior- top
managers, particularly, need to be positive role models.
b. Create new stories, symbols, and rituals to replace those
currently in use
c. Select and promote employees who adapt the new values.
d. Redesign socialization processes to align with the new
values.
e. To encourage acceptance of new values, change the
rewards system.
f. Replace unwritten norms with clearly specified
expectations.
g. Shake up current subcultures through job transfers, job
rotation, and/ or termination
h. Work to get consensus through employee participation
and creating a climate with a high level of trust.
3. Managing Workplace Diversity

Lesson 6 Filipino and Foreign Cultures in Organizations

Culture- a set of beliefs and values about how a community should act
and do things
Organizational culture- a set of shared values and norms/standards
for behavior and expextations that influence the interaction of
organization members in order to achieve their set mission, vision,
goals, and objectives
3 Primary Filipino Values
1. Social acceptance- this value’s focus is the desire of Filipinos
to be accepted and treated well by others.
2. Economic Security- this value emphasizes that one must have
financial stability and that he or she must be able to stand on
his or her own two feet, without incurring debt in order to
meet his or her basic material needs.
3. Social Mobility- this value is concerned with his or her desire
to move up the social ladder, to another higher economic
level, to a higher job position, to a position of respect in his or
her family or in the community where he or she lives or in the
organizations where he or she belongs, and others.
Example of Filipino beliefs and practices
1. Mañana habit- pertains to the belief or practice that it is
alright to postpone work or finishing tasks to another day.
2. Ningas Cogon- refers to the initial show of enthusiasm over a
project during its beginning and the waning of this interset
over the project over time.
3. Filipino time- pertains to the common Filipino practice
wherein arriving 15 to 30 minutes late to work or to both
formal and informal meetings with associated and friends is
considered acceptable.
Cultural dimensions cited by Kreitner and Kinicki