Chapter l: THE JOB

1.1. Evolution of Management Theories

The simplest definition of management is getting things done through people. It implies that an organization, whether small, medium, or large,
is composed of people.

Management is a function that directs and coordinates the efforts of the people to accomplish goals and objectives by using available resources
efficiently and effectively. It's task includes planning, organizing, staffing, leading or directing, and controlling.

1910s-1940s: Management as Science

Management as Science was developed in the early 20th century and focused on increasing productivity and efficiency through standardization,
division of labor, centralization, and hierarchy.

1950s: Functional Organizations

Due to growing and more complex organizations, the 1950s and 1960s saw the emergence of functional organization and Human Resource (HR)
movement.

1970s: Strategic Planning

The focus is from measuring function to resource allocation and tools like Strategic Planning, Growth Share Matrix, and SWOT (identification
and analysis of the company's Strengths, Weaknesses, Opportunities, and Threats) were used to formalized strategic planning process.

1980s: Competitive Advantage

As the business environment grew increasingly competitive and connected, and with a blooming management consultancy industry,
Competitive Advantage became a priority for organizations in the 1980s.

1990s: Process Optimization

Benchmarking and business process reengineering became popular in the 1990s, and by the middle of the decade, 60% of Fortune 500
companies claimed to have plans for or have already initiated such projects.

2000s: Big Data

Largely driven by consulting industry under the banner of Big Data, organizations in the 2000s started to focus on using
technology for growth and value creation.

Traditional Management is fine if one wants compliance, but if one wants innovation and growth, management has to engage
its people on a whole new level.

1.2. Principles of Management

It was French management theorist, Henri Fayol (1841-1925) who developed the fundamental notion of principles of
management. Fayol's 14 Principles of Management are the following:

Division of Work

According to this principle, the whole work is divided into small tasks.
Authority and Responsibility

This refers to the issue of commands followed by responsibility for their consequences. Authority means the right of a superior
to give enhanced order to his subordinates; Responsibility means obligation for performance.

Discipline

Discipline refers to obedience, proper conduct in relation to others, respect of authority, etc. It is essential for the smooth
functioning of all organizations.

Unity of Command

This principle states that each subordinates should receive orders and accountable to one superior.

Unity of Direction

All those working in the same line of activity must understand and pursue the same objectives.

Subordination of Individual Interest

The management must put aside personal considerations and put company objectives first. Therefore the interests
of goal of the organization must prevail over the personal interest of individual.

Remuneration

Workers must be paid sufficiently as this is a chief motivation of employees and therefore greatly influences
productivity.

The Degree of Centralization

The amount of power weilded with the central management depends on company size. Centralization implies the
concentration of decision-making authority at the top management.

Scalar Chain

Scalar Chain refers to the chain of superiors ranging from top management to the lowest rank.

Order

Social order ensures the fluid operation of a company through authoritative procedure. Order should be
acceptable and under the rules of the company.

Equity

Employees must be treated kindly, and justice must be enacted to ensure a just workplace.

Stability of Tenure of Personnel

The period of service should not be too short and employees should not be moved from position frequently.
Initiative

Using the initiative of employees can add strength and new ideas to an organization. Initiative on part of
employees is a source of strength for an organization because it provides new and better ideas.

Esprit de Corps

This refers to the need of managers to ensure and develop morale in the workplace individually and communally.

STAGE 1: GOAL SETTING

The Management cycle begins with GOAL-SETTING, or establishing objectives for a company or organization. Objectives and
goals are derived from a sound review and understanding of the purpose, vision and mission of the organization.

To fulfill this function the manager must engage in the following activities:

1. Synthesizing Information

In this primary stage, the manager engages in DATA GATHERING.

2. Formulating Alternatives

Through effective data gathering and synthesis, the manager arrives at decision on whether or not to pursue the business.

3. Deciding on Courses of Action

With enough data on three possible businesses -- selling boiled corn, sauteed peanuts, and banana cue, Mang Juan may now
decide on the venture he would pursue.

4. Establishing Goal

Let us suppose Mang Juan decides to sell corn. The next step is for him to puti his decision in more concrete terms. His mind
tells him that before he implements his decision, he must first set goal or "operating objective". This means setting daily target
revenues from sales, within a certain level of budget for expenses, in order him to arrive at an estimated net profit at the end of
the day.

STAGE 2: EXECUTING THE PLAN

The next phase involves directing the attainment of project or business goals. To do this, the manager or business owner
engages in three sub-stages: ORGANIZING, COMMUNICATING, and GUIDING.

ORGANIZING involves putting together the resources of people, time, money, and materials required to implement the
business plan.

the stage of COMMUNICATING comes in as soon as Mang Juan makes his business purchases. He will also need to communicate
to attract his target costumer.

GUIDING will only come in should Mang Juan decide to train his son, or hire a helper to assist him in the business. He will need
to pass on some skills, such as choosing the right kind and amount of corn, cooking them properly, product pricing, and
identifying which parts of the city has the most number of corn buyer
A business or organization, however, is usually not intended to last for a short period of time. Ther are nurtured by the owner
or manager, to expand and benefit an increasing number of people.

5. ORGANIZING

For sari-sari store business, organizing means identifying your network of suppliers, developing an inventory of your retail
goods, and identifying your staff and their roles.

6. COMMUNICATING

Communicating would include orienting the workforce about the business plans, goals, policies, and systems.

7. GUIDING

Guiding is done by teaching the workforce to properly relate to customers, especially the difficult and demanding ones.

STAGE 3: MEASURING RESULTS

After Goal-Setting and Execution comes the third stage in the GEMS management wheel--- MEASURING RESULTS. This requires
the manager to evaluate how the project or business is progressing toward it's goals.

Proper evaluation allows the manager to detect deviations from the plan in time to take corrective action. This is done by
comparing actual activities with the planned activities.

The quantitative aspect in this case refers to the increase or decrease of shoppers in Mr. Chua's grocery as well as how fast
products are moving out of the shelves. These indicators will help the business manager determine several things: 1) if he is
selling the right products; 2) if he should offer more variety or a bigger quantity of certain products; 3) and if he should pull out
certain commodities from the grocery shelves and replace them with new ones.

The qualitative aspect, on the other hand, basically refers to customer satisfaction. Customer complaints and feedback through
survey forms will help the manager find out which specific part of the service needs improvement--- costumer assistance,
cashiering, or security.

STAGE 4: SUSTAINING GROWTH

The management cycle does not end the MEASURING RESULTS, for there is a fourth stage that actually determines the success
of a business.

In the GEMS framework, this stage is referred to as SUSTAINING OPERATION which includes two important management
functions---DEVELOPING PEOPLE and ENCOURAGING CHANGE. Only if you are able to ensure the continuity and growth of your
company can you say that you are truly successful.

8. Promoting Change

Change is synonymous with improvement. Therefore in order to keep improving, you must welcome changes in your company.
A good manager promotes creativity and innovation. He is not afraid to take risks that are within reasonable bounds, for it is
only through it that he can sustain the growth of his company.

9. Developing People

To have good people in the company, you must start with the right people. If you have good people, you will be confident to
develop them to take on more responsibilities and to become the next managers
Developing people involves: 1) delegation of important tasks; 2) empowerment; 3) continuous guidance; and 4) rewards. These
four tasks are important for you to find out who deserves a promotion. It also tests and challenges the efficiency of your
employees. The better ones will get more creative and resourceful in the process, while the incompetent ones will easily
surface.

Empowering people will also bring new ideas into the company, as your employees explore their capabilities in handling
situations. Rather than punishing them outright, teach your employees to learn from their mistakes. Giving a reward
commensurate with their achievements in the company will further motivate them to work better, and harder.

1.5 Roles and Responsibilities of a Manager

A manager in a workplace is responsible for a lot of duties---most of them supervisory in nature. In a small
business like a carinderia, the manager is often a jack-of-all-trades. Though he/she may oversee aspects of
the business, his/her responsibilities may hands-on as well. In medium-sized and large corporations you
might find layers of management levels, each with specific duties.

Specifically, the responsibilities of a manager include the following:

A. Staffing

In a small business, this includes writing job descriptions, putting ads for open position, reviewing resumes
and interviewing applicants, hiring, and firing

B. Communication

Communication may be one of the most important responsibilities of a manager to keep the workplace
running efficiently. Employees need to know the mission and goals of the business and what is expected of
them to achieve those results.

A manager should also be able to resolve conflicts, motivate employees, interact with the public on behalf of
the company, and preserve customer relations.

C. Training

He/She schedules orientation of the new employees and subsequent training to perform better in their jobs.
He/She must evaluate their progress on regular basis to determine whether or not additional training is
required.

It is also the responsibility of the manager to identify who are candidates for promotion or advanced position
in the company and should create career goals and plans to attain them.

D. Administrative Investigation and Discipline

It is the job of a manager to investigate any imployee who violates company rules and discipline them when
proven guilty.

E. Business Growth and Sustainability

To complete the GEMS cycle, it is a manager's primary responsibility to ensure the success of the company.
His/Her actions should all be geared toward business growth land sustainability.

Manager must constantly review the company's financial, budgetary, and production goals.

Chapter ll. REQUIREMENTS OF THE JOB

2.1 The Right Person for the Right Job

Going on from where we left in Mr. Chua's grocery store, his business has turned from good to very good. He
has expanded the store.

2.2 Difference Between Hard Skills and Soft Skills

Here are three differences the two skills:

a) To be good at hard skills, it usually utilizes the Intelligence Quotient or IQ (also known as your left brain-
the logical center;while to be good at soft skills usually takes Emotional Quotient (also known as your right
brain---the emotional center.

b) Hard skills are rules where rule stays the same regardless of circumstance, organization culture, and co
employee. In contrast, soft skills are skills where the rules change depending on the circumstances,
organizational culture, and people you work with.

c) Hark skills can he learned in school or trainings. In contrast, there is no simple path in learning soft skills.
Most soft skills are not directly taught in school and have to be learned during interaction with other people
in school or during the on-the-job training.

2.3 Soft Skills Are Core Individual Competencies

In the past, skills and competencies are used interchangeably. The word competency has evolved into a
different meaning.

2.4 Definition of Job Competency

Job competency is defined as the ability of an individual to do a job properly. A competency is also the capacity to
follow a set of defined behaviors. It is a structured guide that enables the identification, evaluation, with comma
and development of the behavior of each employee.

The following are some common core competencies required of an employee for excellent performance:

• Adaptability. • Leadership • Customer Focus

• Commitment • Independence • Teamwork and Cooperation

• Creativity • Emotional Stability • Results Orientation

• Motivation • Analytical Reasoning.

•Foresight. • Communication Skills.

2.5 The Iceberg Theory

The Iceberg Theory originated from the writing style of the famous, Nobel-awarded novelist, Ernest
Hemingway. Also known as "Theory of Omission," Hemingway focuses only on the surface without explicitly
discussing the underlying themes.

This theory is now applied to management of people. Like an iceberg, what can be seen among employees is
the surface --"hard skills". The "soft skills" are not visible; they lie beneath the surface like an iceberg.

2.6 Levels of Proficiency in Job Competency

Competency has now caught up a wide swath among business executives in search for better
performing employees.

Proficiently levels exist because proficiencies come in continuum of degrees of demonstrated behavior,
from the smallest degree (e.gm, minimal through effectiveness, through mastery, and to the highest
degree--excellence). These are sample proficiency levels and their definitions:

Minimal- minimal knowledge/no opportunity to demonstrate

Basic- limited knowledge overview

Working- can do/has working knowledge

Proficient- can do very well, can guide others, very proficient

Expert - acknowledge expert, extensive and in-depth experience

Mastery of competency

Excellence in competency, can be a mentor or coach

2.7 Personal Values

The word 'values' is taken from the root word "valor" which means strength. Values are sources of
strength because they give people the power of action.

Values are lasting beliefs or ideals that are shared by all members of a company.

Companies, out of their vision and mission statements, develop their own core values and cascade them
down to the lowest rank of employees to become their shared values. Once company adopted these five
core values:

•Excellence - everyone must strive for excellence in their work regardless of rank and whichever
department or function he/she is assigned.
•Customer focus - a recognition that a company thrives and continues to exist because of its customers.

•Integrity - honesty is the best policy

•Teamwork - everybody should work as a team. Goals cannot be achieved unless all strive together in
one direction to reach those goals.

•Creativity and Innovation - no work, product, or service is good. It can be better through
creativity and innovation.

2.8 Filipino Values

Filipino Values are, for most part centered in maintaining social harmony and motivated to be
accepted within a group.

hiya, roughly translated as 'a sense of shame', and "amor propio" or 'self-esteem'. Landa
Jocano, a Filipino anthropologist, identified two models of the Filipino value system. The first is
the exogenous model or also known as the foreign model, and the indigenous model or the
traditional model. The foreign model is described to be a "legal and formal" model. In our
indigenous model, for instance, our utang na loob value impels us to provide gifts as a token of
appreciation to someone who have assisted in the processing of a document or a transaction. In
the exogenous or foreign model, this may be considered as bribery. The hiya, pakiramdam,
promotes smooth interpersonal relationships among workers but it could work against the
requirement for aggressiveness in a sales job

Chapter lll. THE ORGANIZATION AND ITS ENVIRONMENT

3.1 Nature of Organizations

First option is to remain as single proprietor. In this form, Mr. Chua as a single person holds the
entire operation as his personal property, managing it on a day-to-day basis. Most businesses
are of this type.

Here are some more of the advantages:

1.Formation: less complicated in preparation of documents and cheaper compared to starting a

formal corporation.

2.Tax benefits: no requirements ilto file a separate business report. One will list the business
information and figures within his/her individual tax return.

3.Decision making: Business decision remains the responsibility of the owner.

Disadvantages:
1.Liability: The business owner will be held directly responsible for any losses, debts, or
violation coming from the business.

2.Taxes: While there are many tax benefits to sole proprietorships, a main drawback is the
owner must pay self-employment taxes.

3.Lack of "continuity": The business may discontinue if the owner becomes deceased or
incapacitated.

4.Difficulty in raising capital: Generating the capital or the initial funds is usually provided by
the owner.

Second option: Partnership

A partnership is a single business with two or more people sharing it's ownership.

Advantages:

1.Easy and Inexpensive: Partnerships are generally an inexpensive and easily formed type of
business structure.

2.Shared Financial Commitment: Each business partner has equally invested in the success of
the business.

3.Complementary Skills: A good partnership should be able to utilize the strengths, resources,
and expertise of each partner.

4.Partnership Incentives for Employees: Partnerships have an employment advantage over

other entities if they offer employees the opportunity to become a partner.

Disadvantages:

1.Joint and Individual Liability: Similar to sole proprietorships, partnerships retain full, shared
liability among the owners.

2.Disagreements Among Partners: With multiple partners, in the business, there can
disagreements like management styles, salary schemes, etc.

3.Shared Profits: Because partnerships are jointly owned, each partner must share the
successes and profits of their business with the other partners.

Third Option: Corporation

A corporation is a type of business that keeps the dealings, asset and bank accounts separate
from his/her personal assets.
Advantages:

1.Separate legal personality: A corporation, once registered with the Securities and Exchange
Commission and is issued a certificate, has acquired a legal personality separate and distinct
from its stockholders.

2.Ease of raising funds: In a corporation, it is easy to raise additional funds since it has the
option to sell shares of the corporation.

3.Continuity: It can have a perpetual existence, which means it can outlive it's owner because it
is a separate person in the eyes of the law.

4.Ease of transfer of ownership: Its easy to transfer ownership interest in a corporation.

5. Credibility: A business with an incorporation or 'inc.' sign after it's name often sounds more
credible in the business context.

Disadvantages:

1.More time and money spent in organization: In a corporation, it will require more time and
money than forming other sole and partnership business type.

2.More paperwork: Several documentations and paper works required by governmental

agencies monitor corporations.

3.Higher tax: Corporate profits may be subject to higher overall taxes since the government
imposes taxes on profits at the corporate level and again at the individual level, if such profits
are distributed to the shareholders.

4.More costly: Ther are required number of board meetings and annual shareholder
meeting/sessions.

Nature and Role of the Firm

A. Human Resource Management: Human Resource Management is the entire spectrum of

management of people that serves to minimize their performance in order to meet the
organization's strategic objectives.

B. Marketing Management: According to Business Case Studies, "Marketing is the

management process responsibility for identifying, anticipating, and satisfying consumer
requirements profitably."
C. Operations Management: "Operations management involves overseeing, designing,
controlling the process of production, and redesigning business operations in the production of
goods and services ".

D. Financial Management: "The goal of any finance function is to achieve three benefits:
business support service, lowest cost, and effective control of the environment.:

E. Material and Procurement Management: It is the responsibility of the Firm to ensure that it
managers the procurement process and supply base effectively and efficiently.

F. Office Management: According to BusinessDictionary.com "Office management involves the

design, implementation, evaluation, and maintenance of the process of work within an
organization, in order to maintain and improve efficiency and productivity."

G. Information and Communication Technology Management: This includes a related form of

communication or application that encompasses radio, television, cellular phone, computer and
network hardware and software, satellite system, and so on, as well as the various services and
applications associated with them such as video conferencing and distance learning (Source:
Margaret Rouse, Whatls.com).

Chapter lV. THE BUSINESS ENVIRONMENT

A. The Local Business Environment

Local business is driven by specific local conditions and market characteristics. Yet also operates in a
larger economic context. At the local level, the business must compete for employees, resources from
suppliers at a competitive price, local advertising and marketing channels.

B. The International Business Environment

The international business environment is the environment outside of the Philippines and in the
different sovereign countries, with factors that are distinct to the home environment of the organization
and the foreign country whore the organization operates.

C. PESTEL Analysis

Using the PESTEL Analysis, organizations will have a more organized and exhaustive manner of analyzing
the external factor that affect their businesses, as well as inherent risks involved.

PESTEL Factor

P- Political

T- Technological
E- Economic

E- Environment

S- Social

L- Legal

POLITICAL

1.Wage Order Increases

2.Goverment Policies

3.Shareholder/ Stakeholder Needs and Demands

4.Lobbying/ Pressure Group (Union-related groups)

ECONOMIC

1.Domestic Economy

2.Global Economy

3. Taxation Issues

4.Exchange Rate

5.Inflation

SOCIAL

1.Media Views

2.Company/ Technology Image

3.Education/ University Offerings

4.Generation of Leaners

5.War for Talents

TECHNOLOGY

1.Technology Development

2.Competing Technology Development

3.Maturity of technology

4.Waste Removal/Recycling

ENVIRONMENTAL

1.Environmental Issues
2.Environmental Regulations

3.Ecological

LEGAL

1.Current and Future Legislation

2.Regulatory Body and Processes

3.Employment Law

4.Labor Cases Filed

Chapter V. GOAL-SETTING PROCESS

The GOAL-SETTING PROCESS (PLANNING)

G" which stands for Goal-Setting is the first stage of the management cycle. It involves four steps directed toward the
establishment of the goals and objectives for the company or organization.

To fulfill this function, the manager must engage in the following steps or activities:

1.Gathering and synthesizing Information

2.Formulating alternatives

3.Deciding on the course of action

4.Establishing goals

SHARED VISION, MISSON, AND VALUES

To be an effective leader/ manager of a business, he/she should ensure that his/her personal vision, mission, and values are
aligned to those of the organization.

1. What Is Vision?

It is commonly shared picture of what the organization wants and is committed to become sometime in the future. It is the
guiding and motivating compass of the organization --capturing the desired spirit of its people can passionately make the
organization to become.

2. What Is a Mission Statement?

It is an enduring statement of purpose of an organization's existence that distinguishes itself from others.

3. What Are Values?

Values are fundamental and shared beliefs that will provide the organization's behavior in meeting it's objectives and in dealing
with others.

THE SWOT

The following discussion is based on an expert from Barrow, Colin, et, al. The SWOT is a powerful planning tool.

Strengths- refers to internal competencies possessed by an organization that will enable it to achieve it's objectives.

Weaknesses- are areas that limit or inhibit an organization's overall success.

Opportunities- refer to economic, socio-cultural, political, technological, demographic, and industrial trends and events that
could significantly benefit an organization in the future.

Threats- are economic, cultural, political, technological, demographic, and industrial trends and events that are potentially
harmful to an organization's present and future competitive position.

A SWOT should be prepared for each of your company business/product activities.

Capitalize on "Strengths". Reduce "Weaknesses"

Use"Opportunities". Neutralize, Convert "Threats" into Opportunities

SMART- Good goals should be Specific, Measurable, Attainable, Results-focused, and Time-bound .

•Specific: Goals should reflect accomplishments that are desired, not ways to accomplish them.

•Measurable: Goals should be measurable to determine when they have been accomplished.

•Attainable: The real art of setting goals is to create a challenging, achievable target.

•Results-focused: Goals should specify an end-result or outcome. You may instruct group"to work together as a team" but if
you don't specify what the group is supposed to accomplish, you are not results-focused.

•Time-bound: Specify a relatively short time for meeting the goal, from a few weeks to no more than a year.

KRAs and KPIs

KRAs or Key Result Areas are highly selective areas (usually four to five only) in which an organization must achieve a high level
of performance.

Chapter Vl. EXECUTING PLAN

A. Definition of Execution

Execution is the carrying out of a plan, order or course of action. Execution is not simply tactics but a system of getting things
done through questioning, analysis, and follow through.

B. Execution as a Competency

The manner, style, or result of performance: "The plan was sound, it's execution faulty" is the common concern among leaders
and managers.

Bossidy and Charon listed in their Execution book that the number one building block to ensure execution is the leader's Seven
Essential Behavior, as follows:

1. Know your people and your business

2. Insist on realism

3. Set clear goals and priorities

4. Follow through

5. Reward the doers

6. Expand people's capabilities

7. Know yourself

D. Execution as Link Among Management Functions

Execution links the other management functions of organizing, staffing, and leading. Staffing is the manning of jobs.

E. Communication and Motivation

First, communication can be either top-down, bottom-up, and horizontal. Second, motivation is inducing others to act in a
desired manner.
F. Motivational Theories

Over the years, several motivational theories where introduced. We will tackle in this chapter some of the more well-known
theories.

1. Douglas McGregor's Theory X and Theory Y

Theory X

1) The average human being has an inherently dislike of work and will avoid it if possible.

2) Because of this human characteristic of dislike of work, most people must be coerced, controlled, directed, and threatened
with punishment to get them to put forth adequate effort.

3) The average human being prefers to be directed, wishes to avoid responsibility, has relatively little ambition, and wants
security above all.

Theory Y

1) The expenditure of physical and mental effort in work is as natural as play or rest.

2) People will exercise self-direction and self-control in the service of objectives to which they are committed.

3) Committed to objectives is a function of the rewards associated with achievement.

2. Chris Argyris

3. Abraham Maslow's Hierarchy of Needs

4. Frederick Herzberg's Theory of Motivation

Chapter Vll. MANAGING PEOPLE

A. Definition of Human Resource Management

Human Resource Management (or simply HR) is a function that involves that management of people. The objective of HR function is to ensure
that people's performance is optimized.

B. The Origin of HR

Truly, HR has metamorphosed from its humble beginnings dating back 1920 which is believed to be the year the HR function was born with the
publication of the first discipline's textbook titled, "Personnel Administration.

C. The HR Framework 2

HRD is people-focused while HR is systems-focused.

D. Human Resource Development (HRD)

1. Career Development - an HR function that tracks an employee's career (a sequence of separate but related jobs) that provides direction,
continuity, order and meaning in an employee's life.

2. Performance Management - a function where the performance of an employee is regularly appraised as basis for giving him/her a merit
increase and/or promotion, and guide him/her in further developing his/her competencies.
3. Employee Relations- a function that promotes employee engagement and commitment to the organization through efforts at relating well,
motivating, commitment to the organization through efforts at relating well, motivating, disciplining, and communicating with employees.

4. Learning and Development - a function where employees are provided training and development through various interventions such as on-
the-job training, coaching and mentoring, and classroom training which are all designed to enhance his/her knowledg, skills, and behavior.

E. Human Resource Management (HRM)

1. Organization Design

2. Workforce Planning

3. Recruitment, Selection, and Placement

4. Reward and Recognition

K. The New Century HR Opportunities and Challenges

HR confronts a number of opportunities and challenges.

Talent Management: Recruiting and retaining talent worldwide.

Leadership Development: Developing leaders who are capable of thinking, inspiring, and acting in the global arena.

Strategic HR: Increasing HR's role as a strategic business partner.

Chapter VIII. MEASURING RESULTS

MEASURING RESULTS (CONTROLLING)

The M" in the GEMS process stands for Measuring Results. Measuring results for larger businesses require more time and effort than smaller
businesses.

QUANTITATIVE VS. QUALITATIVE MEASURES

The quantitative aspect in the case of the retailing business refers to the increase or decrease if shoppers in Mr. Chua's grocery, as well as how
the fast products are being sold.The qualitative aspect, on the other hand, basically refers to customer satisfaction.

BALANCED PERFORMANCE MEASURES

You have learned in Chapter Vl a more balanced approach to goal-setting as you were introduce to a Strategic Planning Framework (SPF), an
adaptation from the Balanced Score Card by Kaplan and Norton.

As advocates of strategy management, Kaplan and Norton recommend that we must do a fast but comprehensive view of the business from
four perspective:

Customer Perspective - How do customer see us?

Internal Organization (Process) Perspective - What must we excel at?

Innovation and Learning (People) Perspective - Can we continue to improve and create value?

Financial (Shareholder) Perspective - How do we look to the shareholders (owners)?

DEFINING BALANCED RESULTS

Management author, D. Ulrich expands the strategy management concept of Kaplan and Norton by defining balanced results as follows:

Achieving "Customer" results refers to "customer value" or benefits to customer.

Achieving"Organization " (Process) results focuses on structure or systems and core competencies (technology).

Achieving "People" results considers people as "human capital" where the business.

Achieving "Shareholder" (Owner) results is meeting the expectations of shareholders and investors.

DEPARTMENTAL PERFORMANCE EVALUATION

Measuring results must lead to performance evaluation which should be linked to goal and executing plans.

INDIVIDUAL PERFORMANCE EVALUATION

The company overall measures must be translated to department/unit measures and subsequently to individual performance measures.

COMPETENCY-BASED EVALUATION

You must have sensed in the earlier section of this chapter that manager's initial concern is to check only on the result of the business
operations. This best practice is a key principle under the "competency" concept. Traditionally, we define the qualities of getting a job done
only in terms of the "hard skills" or technical/functional skills

Iceberg Theory

Skills

Knowledge

Abilities

Values

Attitude

Behavior

COMPETENCIES DEFINED

Competencies are the underlying and broad-based characteristics and grouping of "hard skills" (such as knowledge, talents, and abilities) and
"soft skills" (such as values, attitudes, behaviors) in individuals that cause or predict superior performance.

A management consulting organization defines it's set of "hard" competencies.

An education institution defines a set of learning competencies.

An government office defines it's top three measuring results.

A youth leadership training organization defines it's effective leadership triangle in terms of three Cs.

Distinguishing Control Methods and Systems

1. Feedforward Control

2. Concurrent Control

3. Feedback Control

The Two Fundamental Control Methods Are Quantitative and Qualitative

•Qualitative Control Methods

•Non-quantitative Control Methods

A management control system is a system which gathers and uses information to evaluate to performance of different organization sources, be
there human resources, financial, accounting, physical, marketing, etc.

Chapter lX. SUSTAINING OPERATION

PLANNING FOR COMMUNITY AND GROWTH

The true measure of success in managing a business is not to hit one short term goal and then stop and close operations.

WHAT IS CHANGE?

The object of change is improvement. Desired change may involve: repair and restoration, continuous improvement, or breakthrough change.

Repair or Restoration - is the type of change involving an immediate action to avoid disruption in operation such as adoption of new safety
rules or a new procedure for handling customer complaints.

Continuous Improvement - involves a deliberate plan to institute a company policy or program such as a productivity improvement program or
an employee sports and wellness program.

Breakthrough Change - involves a major or dramatic change such as transferring the entire company operations to another location or going
into the export market.

DEVELOPING PEOPLE

A good manager should take direct responsibility to develop subordinates.

Delegating- is assigning authority and responsibility to a subordinate for carrying out specific activities.

Empowering- refers to manager's action that will allow the subordinate to initiate action, given him/her encouragement, and support to
implement solution.

Rewarding- is done to recognize the subordinate's achievements in order to further motivate him/her to work better and harder.

1. Positive Feedback

2. Promotion

3. Additional Fringe Benefits

3Cs of Leadership: much has been written about leadership and management.

The Truly Effective Leader

1. Character: this is the quality that defines the person you are.

2. Competence: this is the capability of a leader/manager to do certain things which are person- acquired such as planning, organizing, and so
forth.

3. Commitment: this refers to the leader's/manager's commitment to serve.

Chapter X. GLOBAL COMPETITIVENESs

A. Competencies for Global Competitiveness

1. Business Acumen

Once must know the business he/she owns or represents.

2. Strategic/Analytical Thinking

One must have the ability to plan, formulate, and implement effective strategies that will lead to business success.

3. Collaborative Relationship

An individual cannot be successful on his/her own

4. Customer Focus

Whatever a company does must eventually rebound to the benefit of its customers.

5. Execution

Planning is one thing, implementation is another. Many plans remain as ther are because of the failure of individuals to act on them.

B. Benchmarking Best Practices and Trends

Determining the company's performance among other industries in one indicator of how strong and relevant is a company or organization.

Nine key attributes of reputation.

1. Innovation

2. People management

3. Use of corporate assets

4. Social responsibility

5. Quality of management

6. Financial soundness

7. Long-term investment value

8. Quality of products

9. Global COMPETITIVENESs

C. ASEAN Integration ³

ASEAN Integration simply means creating a single market and production base.

D. Unique Advantage of Filipinos to Work Abroad

Filipino talents present a unique advantage to work abroad compared with their counterparts from other ASEAN countries.

E. The Filipino Entrepreneurship

F. Role of Small Family Business in Improving Economic Status