DAVAO DEL NORTE STATE COLLEGE

Chapter 1 – Nature and Concept of Management

Management is the
process of
Management
coordinating allis the
resourcesprocess of
through
coordinating
Planning, Organizing, all
resources through
Staffing, Leading and
Planning, Organizing,
controlling to achieve
Staffing, Leading and
organiational
controlling
objectives.to achieve
organiational
objectives.

Management is the
process of attaining Management is the
Management
organizatioal is the
objective
process of and
attaining art of getting things
in an efficient doneManagement
through other is the
organizatioal
effective through objective art ofbygetting things
in an efficient
managerial functionsand Management people
done
making
through other
effective through worth environment
such as Planning,
managerial
Organizing, functions
Staffing, Management peopleforbyothers.
conducive making
Leadingsuch as Planning,
and controlling. worth environment
Organizing, Staffing, conducive for others.
Leading and controlling.

Management is the
utilizaton of
Management
scientifically is the
derived
utilizaton
principles of
to examine
scientifically
and improvederived
principlesefforts.
collective to examine
and improve
collective efforts.
 What is Management?

The word manage comes from an Italian word

“Maneggiare” which means to handle (handle
problems with the help of some tools); which
is turn derives from the Latin word “manus”
means “hand”.
Etymology of Management Process to attain
organizational objectives

Efficiency
Efficiency

Getting the most output from the least

amount of inputs in order to minimize
resources costs.
" Doing things right"

Effectiveness
Effectiveness

Completing activities so that

orgamizational goals are atained
" Doing the right things"
Concept of Management
Traditional Concept
Management is the art of
getting things than
through others.
Managers is one who
accomplishes
organizational objectives
by directing the efforts of
others.
Modern Concept
Management is establishing
an effective environment
for people operating in
formal organizational
group.
Management is the co-
ordination of all resources
through the process of
Planning, Organizing,
Directing and Controlling in
order to attainstated
objectives.
 Functions of Management
Planning- process of setting goals and
1. choosing the means to achieve those
goals.

Organizing- Process of arranging and

allocating work, authority (the right to
2. influence others) and resource among
organizations members so that they can
achieve organizations goals. Planning
Planning

Staffing- is the Process of obtaining and

3. maintaining capable and competent
candidates to fill all job position. Controlling
Controlling Organizing
Organizing

Leading – process of directing and

influencing (the capacity to affect other‘s
4. action) organizational members to
achieve organizational goals. It involves
guiding (directing), influencing, and
motivating employees to perform Directing/
Directing/ Staffing
(accomplish) essential tasks Leading
Leading Staffing

Controlling- process of ensuring that actual

5. activities conform to plan activities. It enables
to check whether activities are working
according to the plan.
 Nature of Management

1.
1. Management
Management isis goal
goal oriented
oriented 5.Management
5.Management isis intangible
intangible

2.
2. Management
Management isis universal
universal 6.
6. Management
Management isis situational
situational

3.
3. Management
Management isis aa continuous
continuous process
process 7.
7. Management
Management isis aa system
system of
of authority
authority

4.
4. Management
Management isis multi-diciplinary
multi-diciplinary 8.
8. Management
Management isis both
both science
science and
and an
an art
art

Who is manager?

Someone
Someone who who works
works
with
with and
and through
through
other
other people
people by
by
coordinating
coordinating their
their
work
work activities
activities in
in
order
order to
to accomplish
accomplish
organizational
organizational goals.
goals. AAmanager
manageris is
Manager responsible
responsibleforfor
Managerisisresponsible
responsiblefor for planning and directing
the
theprocesses
processesof ofgetting
getting planning and directing
activities
activitiescompleted
completed the
the work
workofofgroup
groupof of
efficiently
efficientlywith
withand
andthrough
through individuals,
individuals,monitoring
monitoring
other
otherpeople
peopleandandsetting
setting their performance
their performance and and
and
andachieving
achievingthe thefirm’s taking
goals
firm’s takingcorrective
corrective
goalsthrough
throughthe
the actions
actionswhen
when
execution of four basic
execution of four basic
management neccesasary
neccesasaryfor forthe
the
managementfunctions:
functions: accomplishment
planning,
planning,organizing,
organizing, accomplishmentof of
organizational goals
leading,
leading,andandcontrolling.
controlling. Manager
Manager organizational goals
and objectives
and objectives

Manager
Manager performs
performs aa
variety
varietyof of functions
functions inin
Manager
Manager must must bebe an
an organization,
organization, but but
familar
familar of of the
the work
work amongst
amongst one one of
of the
the
of
of all
all groups
groups he/she
he/she most
most important
important
supervises,
supervises, but but functions
functions they
they
does perform
perform are
does notnot need
need toto be
be communicating
are
the
the best in any or
best in any or communicating with with
direct
direct reports
reports toto help
help
all
all of
of the
the areas.
areas. their
their organization
organization
exceed
exceed their
their goals.
goals.
 Types of Manager

It includes CEOs, chief operating officers, presidents, and vice-presidents. They

are responsible for the overall coordination of the organization and for directing the
Top major activities of the company‘s various divisions or units.
Managers

It includes department heads, division managers, personnel directors, sales

managers and so on. These individuals manage other mangers and possibly other
Middle level operative employees and are typically responsible for translating the goals set by
Managers top management into specific details that lower-level manager can perform.

They are the supervisors, team leaders, and foremen are common titles in lower-
level management. They are responsible for directing the day-to-day activity of
Lower Level operative employees.
Managers

Levels of Management

Top
Top Level
Level Middle
Middle Level
Level Lower
Lower Level
Level
Management
Management Management
Management Management
Management
Responsible
Responsible for for the
the Responsible
Responsible for for They
They are
are
overall
overall implementation
implementation of of responsible
responsible for for
management
management of of polices
polices and
and plans
plans directly
directly managing
managing
organization
organization developed
developed by by top
top operating
operating (non-
(non-
Top
Top managers
managers management
management managerial)
managerial)
provide
provide resources,
resources, .They
.They are
are charged
charged employees
employees and and
monitor
monitor progress
progress with
with integrating
integrating the the resources.
resources.
and
and make
make strategic
strategic activities
activities of
of different
different They
They devote
devote muchmuch
decision
decision groups
groups soso that
that they
they portion
portion ofof their
their time
time
They
They determine
determine the the operate
operate in in harmony.
harmony. on
on supervisory
supervisory
form
form of
of an
an They
They transfer
transfer (day
(day -to
-to -day
-day
Organization
Organization and and information
information and and activities
activities of
of the
the
define
define its
its overall
overall materials
materials among
among organization).
organization).
character,
character, mission
mission different
different groups
groups and and They
They are
are the
the only
only
&& direction.
direction. They
They coordinate
coordinate managers
managers who who do do
shape
shape organization's
organization's not
not manage
manage other other
organizations
organizations goalgoal activities.
activities. managers.
managers.
and
and do
do what
what isis They
They supervise
supervise and and They
They comprise
comprise the the
necessary
necessary on on the
the coordinate
coordinate the the largest
largest managerial
managerial
highest
highest levels
levels to
to activities
activities of
of lower
lower group
group inin most
most
achieve
achieve those
those level
level managers.
managers. organization.
organization.
goals.
goals.
3 Classification of 10 Managerial Managerial Roles
Managerial Roles Roles (Henry Mintzberg)
 Essential Skills of a Manager
(Robert L. Katz) Types of Management Theories

Represent
Represent the the ability
ability of
of managers
managers to to organize,
organize, toto coordinate,
coordinate, and
and integrate
integrate all
all of
of organization's
organization's interest
interest and
and
activities. 1.
1. Scientif
Scienti
activities.
Depend on manager's ability to think in abstract. It is the capacity of the manager to understand
Depend on manager's ability to think in abstract. It is the capacity of the manager to understand the cause and the cause and His philo
effect
effectrelationship
relationship among
amongparts
partsof ofthe
theorganization.
organization. Instead,
Conceptual
Conceptual skillskill involves
involves the the ability
ability of
of managers
managers to to see
see the
the organization
organization as as aa whole
whole (holistic
(holistic manner)
manner) and and
Comceptual understand and how its parts depend on one other, and anticipating how a change in any of its parts will affect the member
Comceptual understand and how its parts depend on one other, and anticipating Chapter 2 – The
how a change Firm
in any of itsand
parts its Environment
will affect the
Skills
Skills whole.
whole. efficient
Conceptual
Conceptual skills
skills involve
involve visualizing
visualizing the the different
different parts
parts andand levels
levels of
of the
the organization
organization inin relation
relation to
to itit are
are over
over all
all
objectives. 2. Princip
2. Princip
objectives.
ItIt allows managers to think strategically, to see "big picture‖ and make abroad based
allows managers to think strategically, to see "big picture‖ and make abroad based decision that serve the decision that serve the
overall
overallorganization.
organization. He devel
What is Business Environment? situation
comman
Involve
Involvethe theability
abilityof
ofthe
themanager
managertotowork
workwith,
with,communicate
communicatewith,
with,understand
understandand
andmotivate
motivateindividuals
individualsandandgroups
Human
Human in
groups with the
inorganizations.
organizations.
Skills
Skills ItItisisthe
theability
abilityof
ofthe
themanager
managerto
tounderstand
understandmotivation
motivationand
andgroup
groupprocess.
process.üüEqually
Equallynecessary
necessaryatatall
alllevels
levelsof
of
manager
management
management The principl
command, S

3.
3. Bureauc
Bureauc
Technical
Technicalskill
skillrefers
referstotothe
theknowledge
knowledgeto toperform
performspecific
specifictasks.
tasks.Technical
Technicalskills
skillsare
aregenerally
generallyassociated
associatedwith with
ability
abilityto
touse
usethe
thetools,
tools,procedures,
procedures,and andtechniques
techniquesof ofspecialized
specializedarea.area.InInother
otherwords,
words,technical
technicalskill
skillisisthe
theability
ability
Bureauc
of
of the manager to use specific knowledge, techniques and resources in performing work. Highly importantfor
the manager to use specific knowledge, techniques and resources in performing work. Highly important forfirst
first governan
line management
Technical
Technical line management
Note separatio
Skills Notesuccessful
successfulmanagers
managersare arelikely
likelyto
tohave
haveallallof
ofthe
thethree
threeskills.
skills.However,
However,the theproportion
proportionofofeach
eachskills
skills
Skills requirement
requirementvaries
variesby bylevel
levelof
ofmanagement.
management.Technical
Technicalskill
skillisismore
morerequired
requiredbybylower
lowerlevel
levelmanagement
managementwhile while meticulo
conceptual
conceptualskill
skillisismore
moreneeded
neededby bytop-level
top-levelmanagement.
management.Middle Middlelevel
levelmanagers
managersrequire
requireall
allskill
skillproportionally.
proportionally. perform
The
Thefollowing
followingdiagram
diagramshowsshowsthe
therelative
relativeproportion
proportionof ofmanagement
managementskills skillsrequired
requiredat atthe
thethree
threelevels
levelsof of
management.
management.
4. Human
4. Human
This theo
laid the f
lighting,
perform
research
5.
5. System
System
This theo
Interpersonal
Interpersonal 1.
1. Figurehead
Figurehead system t
Provide Information 2. Leader interrela
of a com
Informational
Informational 3.
3. Liason
Liason
Process Information 4. Monitor
6. Contin 6. Contin
Decisional
Decisional 5. DisseminatorInstitute of Management, Governance and Continuing
5. Disseminator
Use Information 6. Spokeperson Studies Develop
organiza
7. team. He
7. Entreprenure
Entreprenure flexible t
8. Disturbance handler 7.
7. Theory
Theory
America
9.
9. Resource
Resource Allocator
Allocator Enterpris
10. team me
10. Negotiator
Negotiator which is
self-moti
Environment refers to institutions and forces that affect organizational performance. environm
(Stephen P. Robbins and Mary Coulter) He conc
organiza
creativit
Elements of Firm’s and Environment

Internal
Internal - This refers to factors External
External
Environment
Environment - This refers to factors Environment
Environment
exixting withiin a market
exixting withiin a market --Environment
Environment which
which lies
lies
firm.
firm. outside the organization
outside the organization

-- Set -- Is
Is aa set set of
of political
political ,,
Set of
of elements
elements oror economic,
forces which affects economic, social social and
and
forces which affects technological
organization's technological that that are
are
organization's or
or firm's
firm's largely
largely outsideoutside the
the control
control
behavior
behavior and
and influence
influence its
its business.
business.
-- Also
Also called
called controllable
controllable -- ItIt isis unpredictable
factors unpredictable and and
factors uncontrollable
uncontrollable

1.
1. Micro
Micro Environment
Environment
2.
2. Macro
Macro Environment
Environment
(Directly
(Directly interactive)
interactive)
(Indirectly
(Indirectly interactive)
interactive)
-- ItIt is
is also known as
also known as operating
operating
environment
environment . . Types
Types of
of -- ItIt is
is also known as
also known as general
general
External
External environment.
environment.
Environment
Environment -- ItIt includes
-- ItIt includes includes socio-
socio- cultural,
cultural, political
political
includes owners,
owners, costumers,
costumers, and
and legal,legal, technological,
technological, economic,
economic,
suplliers,
suplliers, competitors and
competitors and employees
employees and
unions. and globalglobal influences.
influences.
unions.
Factors of Internal Environment Factors of External Environment

Plans and Policies Demographic Forces

Human Resources
Economic Factors
Financial Resources
Technological factors
Corporate Image
Cultural Environment
Plant and machinery
Natural Environment
Labour and Management relationship

Promoters Vision Political Environment

P E S T
Political
Political Economic
Economic Social
Social Technological
Technological
Factors
Factors Factors
Factors Factors
Factors Factors
Factors
 SWOT ANALYSIS

s W
POSITIVE
POSITIVE NEGATIVE
NEGATIVE

Strength
Strength -Experience and knowledge Weakness
Weakness-Leadership
-Leadership
-Experience and knowledge -Inadequacy
-Inadequacy
-Competence
-Competence and
and
capabilities -Gap
-Gap inin Skills
Skills and
and
capabilities Knowledge
Knowledge
-Quality
-Quality and
and Reputation
Reputation Low
Low morale
morale among
among team
team
members
members

- A measurement tool which is used to assess markets for a particular

product or a business at a given time frame.
- These can influence marketing and relationships that a company has
worked hard to develop. Knowing ahead of time that a change may be
occurring will help making better business decisions.

Examples

P E S T
Market regulations Exchange rate Number of older lower energy cost
Taxation (1$=2.65 Reais) people increases easier access to
Consumer Unemployent rate litercy rate = 5 % internet
protection (34%) Mobile technology
Governmental Consumers trust increasing
Decision

INTERNAL
 Local and International Business environment in a firm

EXTERNAL

O T
NEGATIVE
NEGATIVE
POSITIVE
POSITIVE

Opoortunities
Opoortunities Threats
Threats
-Loss
-Loss ofof major
major costumers
costumers
-Strong
-Strong competitions
competitions
-- Innovation
Innovation and
and pricing
technology development pricing
technology development
-Loss
-Loss ofof alliance
alliance and
and
-Diversity
-Diversity the
the business
business partners
partners
-- Market
Market Demand
Demand _Economic
_Economic condition
condition
-- loss
loss of
of key
key staff
staff
 Phases of Economic Development

Economic Development
- Is the development of economic wealth of countries, regions or communities for the well- being of their
inhabitants.
 Understanding the local and international business environment of the firm requires managers of
- It is the progress in an economy or Qualitative measure of this.
organization to sharpen their cultural intelligence
Importance of Economic Development
 -CULTURAL
A businessINTELLIGENCE
enthusiast, it is important to know the economic status of our country so that we could further
help Itit improve
is an individual’s
and develop.ability to favourably receive and adjust to an unfamiliar way of
- This doing
phasesthings.
create a systematic illustration of the stages in economic development that can relay the
Anthropologist
 efficiently
content EDWARD T. HALL, as cited by SCHEMERHORN (2008), the
and effectively.
way people approach and deal with the time varied across cultures.

oMonochronic Cultures – Refers to culture wherein people tend to do one thing

5 Phases of Economic Development
at a time; also these cultures emphasize punctuality and stick to the rules.
o Polychronic Cultures – are more flexible as regards time; accomplishing
many different things at once is also common for these cultures.
 Geert Hofstede, as cted by SCHEMERHORN (2008), showed how selected
countries ranked on the five cultural dimensions he studied.
1. Power Distance
2. Uncertainty Avoidance
3. Individualism –Collectivism
4. Masculinity – Femininity
5. Time Orientation

Local Business International Business

Communication is easier because it is a International Business is one of whose

business entity whose commercial activites
are performed within a nation.
Alternately known as inernal business or
sometimes as home trade.
The producer and customers of a firm both
residence in the country. In a domestic trade,
the buyer and seller belong to the same
ountry and so the trade agreement is based
on the practices, laws and customs that are
followed in the country.
manufacturing and trade occur beyond the
borders of the home country.
All the economic activities indulged in cross-
border transctions comes under international
or external business.
It includes all the commercial activities like
sales, investment, logistics, etc. in which two
or more countries are involved.
 Chapter 3 – Planning

What is planning? ItIt isis defined

defined asas the
the
process
process through
through which
which
managers
managers determine
determine
goals
goals and anddevise
devise thethe
means
means for for utilizing
utilizing
resources
resources to to -Planning
-Planning is is one
one of
of
ItIt is
is the
the process
process of
of accomplish
accomplish them. them. the
the major
major functions
functions
setting
setting goals
goals and
and ofof management.
management.
choosing
choosing the
means
means to
those
the
DAVAO DEL NORTE STATE COLLEGE
to achieve
achieve
-Planning
-Planning means
preparing
means
preparing for
for
those goals.
goals. tomorrow
tomorrow today.
today.
Institute of Management, Governance and Continuing
Studies
Planning
Planningestablishes
establishes
ItIt is
is the
the processes
processes coordinated
coordinatedeffort,
effort,
of reduce uncertainty,
of determining
determining howhow reduce uncertainty,
the
the organization
organization Planning
Planning
reduce
reduce overlappingand
wasteful
overlapping
wastefulresources
resourcesand
and
and
can
can get get where
where itit activities
activitiesand andstandards
standards
wants
wants to go.
to go. that
thatarearetotobe
beused
usedto to
facilitate
facilitatecontrol
control
 N A T U R E O F P L A N N IN G

Nature of Planning

1.
1. Goal
Goal Oriented
Oriented
-- Plans
Plans arise
arise from
from objectives.
objectives.
Objectives
Objectives provides
provides guidelines
guidelines for
for
planning.
planning.

2.
2. ItIt is
is aa primay
primay function
function
-- Planning
Planning provides the
provides the basis
basis
foundatio
foundatio from from which
which all
all future
future
management
management functions functions arises.
arises.

3.
3. ItIt is
is persuasive
persuasive
-- ItIt is
is required at
required at all
all levels
levels of
of
management
management ..
 4.
4. ItIt is
is mental
mental activity
activity
-- Planning
Planning is a mental process
is a mental process

N A T U R E O F P L A N N IN G
involving
involving

5.
5. ItIt is
is aa continuous
continuous process
process
-- ItIt is
is an
an on
on going
going process
process of
of adapting
adapting the
the
organization
organization with with the
the changes
changes business
business
environment.
environment.

6.
6. ItIt involve
involve choice
choice
-- ItIt is
is essentially a choice among
essentially a choice among
various
various alternative
alternative course
course of
of action.
action.

7.
7. ItIt is
is forward
forward looking
looking
-- Planning
Planning means
means looking
looking
ahead
ahead and and preparing
preparing for
for the
the future.
future.

8.
8. ItIt is
is flexible
flexible
-Planning
-Planning is
is based
based onon the
the
future's
future's forecastand
forecastand situations.
situations.

9.
9. ItIt is
is an
an integrated
integrated process
process
-plans
-plans are
are structured
structured in
in aa
systematic
systematic and and logical
logical sequence
sequence where
where
each
each plans
plans or
or step
step isis hghly
hghly dependent
dependent
and
and mutally
mutally supportive.
supportive.
Planning Process

1. Establishing Objectives and Goals

The first step of the management planning process is to identi
each department unit.
2. Determining Alternatives
The next step is to search for and find out alternatives that wil
established.
3. Evaluating and Choosing Alternatives
Once alternative courses of action have been identified, each
Types of Plans (Management
light ofPrinciples)
its strength and weakness and its fitment in achieving
alternatives, managers should consider facts like the costs invo
for completion, the gestation period, return on investment, et
4. Creating Assignments and Timelines

As the plans are frozen and prioritized, timelines for completin

stage, resource allocation and the line of authority and respon
should consider the abilities of staff members and allocate the
5. Formulating Derivative Plans
Derivative plans are sub-sections of the operating plan. The di
necessary for effective execution. Derivative plans are essentia
and explain the many details involved in reaching a broad maj
6. Budgeting
Once the plans are finalized and set, the final step is to conver
budgeting. Budgets are most commonly expressed in terms of
as units sold, or in any other measurable unit.
Planning and Different levels in a Firm Decision Making

Most
MostCorporation
Corporationof ofeven
evenmoderate
moderatesize sizehave
haveaacorporate
corporateheadquarters.
headquarters.TheTheheads
headsof
ofthese
thesegroups
groupsae
ae
Corporate
Corporate levels
levels
typically
typicallyparts
Executive
up
upthe
partsof
Executiveat
thelarge
atthe
ofthe
thegroup

largecorporate
groupof
thecorporate
corporategroups
ofsenior
seniorexecutives
corporatelevels
groupssuch
executivesat
levelsininlarge
largefirms
suchfinance,
atthe
thecorporate
firmsinclude
corporateheadquarters.
includebth
finance,human
bththose
humanresources
headquarters.
thoseininthe
theheadquarters
resources, ,marketing
headquartersand
marketingandandetc.
etc.
andthose
thoseheading
heading

Business
Business levels
At
Atthis
thislevel
levelmanagers
managersfocus
focuson
ondetermining
determininghow
howthey
theyare
aregoing
goingto
tocompete
competeeffectively
effectivelyininmarket.
levels
market.
At
Atthis
thislevel,
level,managers
managersattempt
attempttotoaddress
addressquestions
questionssuch
suchas:
as:Who
Whoareareour
ourdirect
directcompetitors?
competitors?What
Whattheir
theirstregth
stregth
and
and weaknesses? What are our strength and weaknesses? What advantage do we have overthe
weaknesses? What are our strength and weaknesses? What advantage do we have over thecompetition?
competition?

Functional
Functional levels
At
Atthis
thislevel,
level,managers
managersfocus
focuson
onhow
howthey
theycan
canfacilitate
facilitatethe
theachievement
achievementof ofthe
thecompetitive
competitiveplan
planof
ofthe
thebusiness.
levels
business.
depending
dependingon onthe
thebusiness
businessstructure
structurethis
thiscan
caninclude
includemanagers
managersresponsible
responsiblefor
forbusiness
businesswithiin
withiinaa
specificgeographic
specificgeographicregion
regionor
ormanagers
managersresponsible
responsibleforforspecific
specificretail
retailstore.
store.

Planning Techniques and Tools

There are three module of Planning tools and techniques.

 Techniques For Assessing The Environment
 Techniques For Allocating Resources
Environmental
EnvironmentalScanning
Scanning-The -Thescreening
screeningofofinformation
informationto
toanticipate
anticipateand
andinterpret
interpretchanges
changes
 Contemporary
in
inthe
Planning
theenvironment.
environment.ItIthelps
Techniques
helpsorganizations
organizationsto
todevelop
developtheir
theirstrategies
strategiesaccordingly.
accordingly.
Techniques
Techniques For
For Forecasting-
Forecasting-The
forecasting.
Thesecond
secondtechnique
forecasting.Forecasting
techniquemanagers
Forecastingisisananimportant
managerscan
importantpart
partof
canuse
useto
ofplanning
toassess
planningand
assessthe
andmanagers
theenvironment
environmentisis
managersneed
needforecasts
forecaststhat
that
Assessing
Assessing The
The will
willallow
allowthem
scanning
them to
topredict
predictfuture
establishes the
futureevents
basis
eventseffectively
for
effectivelyand
forecasts, which
andininaatimely
are
timelymanner.
predictions
manner.Environmental
of
Environmental
outcomes.
scanning establishes the basis for forecasts, which are predictions of outcomes.
Environment
Environment Benchmarking
Benchmarking-Benchmarking,
-Benchmarking,the thesearch
searchfor
forthe
thebest
bestpractices
practicesamong
amongcompetitors
competitorsoror
noncompetitors
noncompetitorsthatthatlead
leadtototheir
theirsuperior
superiorperformance.22
performance.22does doesbenchmarking
benchmarkingwork?
work?Studies
Studies
show
showthat
thatusers
usershave
haveachieved
achieved69 69percent
percentfaster
fastergrowth
growthandand45
45percent
percentgreater
greaterproductivity.
productivity.

Budgeting
revenues, Decision-making is an affair of the mind, an intellectual process. It consists of a
Budgeting--AAbudget
revenues,expenses,
budgetisisaanumerical
expenses,and
numericalplan
andlarge
largecapital
planfor
forallocating
allocatingresources
capitalexpenditures
expendituressuch
resourcestotospecific
suchasasequipment.
specificactivities.
equipment.It’s
activities.Managers
It’snot
notunusual,
Managerstypically
unusual,though,
typicallyprepare
though,for
forbudgets
preparebudgets
budgetstotobe
budgetsfor
beused
usedforfor
for
improving sequence of steps starting with an input (a problem) and ending with an output
time, space, and use of material resources. These types of budgets substitute nonpolar
improving time, space, and use of material resources. These types of budgets substitute nonpolar numbers for dollar
amounts.
numbers for dollar
amounts.SuchSuchitems itemsas
asperson-hours,
person-hours,capacity
capacityutilization,
utilization,or
orunits
unitsofofproduction
productioncan canbebebudgeted
budgetedforfordaily,
daily,weekly,
weekly,or ormonthly
Techniques
Techniques For
For activities.
activities.
Scheduling
(action). A problem is the deference between what is and what should be. In this
monthly

Scheduling - Detailing what activities have to be done, the order in which they are to be completed, who is to do each,and
- Detailing what activities have to be done, the order in which they are to be completed, who is to do each,
Allocating
Allocating when
whenthey
charts,
charts,and
sense, decision-making process is a system of inputs, processes and outputs. In
theyare
aretotobe
andPERT
becompleted.
PERTnetwork
completed.InInthis
networkanalysis.
analysis.
thissection,
section,we’ll
we’llreview
reviewsome
someuseful
usefulscheduling
schedulingdevices
devicesincluding
includingGantt
Ganttcharts,
charts,load
load
and

Resources other words, decision-making involves several steps that lead managers towards
Resources Breakeven
BreakevenAnalysis
breakeven
Analysis--Breakeven
breakevenpoint.26
Breakevenanalysis
point.26breakeven
breakevenanalysis
optimal solution.
analysisisisaawidely
analysisisisaasimple
widelyused
usedresource
simplecalculation,
resourceallocation
calculation,yet
yetit’s
allocationtechnique
it’svaluable
techniquetotohelp
valuabletotomanagers
helpmanagers
managersbecause
managersdetermine
becauseititpoints
determine
pointsoutoutthe
the
relationship
relationship between revenues, costs, and profits. To compute breakeven point (BE), a manager needstotoknow
between revenues, costs, and profits. To compute breakeven point (BE), a manager needs knowthetheunit
unitprice
price
ofofthe
theproduct
productbeingbeingsold
sold(P),
(P),the
thevariable
variablecost
costper
perunit
unit(VC),
(VC),and
andtotal
totalfixed
fixedcosts
costs(TFC).
(TFC).AnAnorganization
organizationbreaks
breaksevenevenwhen
whenits its
total revenue is just enough to equal its total
total revenue is just enough to equal its total costs. costs.
- Decision-making is the process of defining problems, generating alternative
Project solutions, choosing one alternative, and asimplementing it. It isdesign a rational choice
ProjectManagement
ManagementDifferent
Differenttypes
typesofoforganizations,
organizations,from
frommanufacturers
manufacturerssuch such asColeman
Colemanand andBoeing
Boeingtotosoftware
software design
firms suchamong
firmssuch as
asSAS
SASand andalternatives.
Microsoft,
Microsoft,use useprojects. That
projects. is
AAproject
projectisisby its
aaone-time
one-time nature,
only
onlyset decision-making
setofofactivities
activitiesthat
thathas
hasaadefinite involves
definitebeginning
beginning and a choice, and
and
ending
endingpoint
pointinintime.28
time.28Projects
Projectsvaryvaryininsize
sizeand
andscope—from
scope—fromBoston’s
Boston’s“big
“bigdig”
dig”downtown
downtowntraffic
traffictunnel
tunneltotoaasorority’s
sorority’sholiday
holiday
Contemporary
Contemporary formal. decision
formal.Project
Project
specifications.
specifications.
managementsituations
management isisthe
thetask are
gettingchoice
taskofofgetting aaproject’s situation.
project’sactivities
activitiesdone
doneon Although
ontime,
time,within each
withinbudget,
budget, andof
and us makes
according
according to
to decisions every
day, it is particularly vital function workof managers.
Planning
Planning
PROJECT
PROJECT
from
fromtheir
MANAGEMENT
MANAGEMENT
theirrespective
project’s
respectivework
PROCESS
PROCESSInInthe
workareas
areastotothe
the
theproject
typical
typical
projectand
project,
project,work
andwho
whoreport
isisdone
done
reporttotoaaproject
by
byaaproject
projectteam
projectmanager.
manager.The
teamwhose
whosemembers
Theproject
membersare
projectmanager
areassigned
managercoordinates
assigned
coordinatesthe
the
project’sactivities
activitieswith
withother
otherdepartments.
departments.When Whenthe theproject
projectteam
teamaccomplishes
accomplishesits itsgoals,
goals,ititdisbands
disbandsand
andmembers
membersmovemoveon
Techniques
Techniques totoother projects or back to their
scenario
permanent
is a
work
other projects or back to their permanent work area.
Scenario Planning - A consistent
area.
view of what the future is likely to be. Developing scenarios also can be
on

Scenario Planning - A scenario is a consistent view of what the future is likely to be. Developing scenarios also can be
described
describedas ascontingency
contingencyplanning;
planning;that
thatis,
is,ififthis
thisevent
eventhappens,
happens,thenthenweweneed
needtototake
takethese
theseactions.
actions.
 A Systematic Approach for Decision Making

7
Follow-up
6 and evaluate
5 Implement the decision
Making choice the solution
(Select the best
4 alternative or
combination of
3 Analyze the best alternative)
Identification alternatives
2 of alternative
course of
1 Diagnose action
and define
Define the the problem
objective

DAVAO DEL NORTE

Major guidelines STATE
for making effectiveCOLLEGE
Decision

1. Use information effectively

2. Enhance systems for decision making

3. Empower those who must implement decision

4. Communicate Effectively

5. Delegate Pragmatically
 Organizational Theories in solving Business cases

Institute of Management, Governance and Continuing

1.
Studies

Chapter 4 – Organizing
2
Re

What is organization?
“Organisation
“Organisationisisthe theprocess
processofof
identifying
identifyingand
andgrouping
groupingthe theworks
workstoto
bebeperformed,
performed,defining
definingand anddelegating
delegating
responsibility
responsibility and authorityand
and authority and
establishing
establishingrelation­
relation­sship
hipfor
forthe
the
purpose
purposeofofenabling
enablingpeople
peopletotoworkwork
“Organisation
more effectively together
more effectively together in in
3.
“Organisation isisthe
the accomplishing
accomplishingobjectives.”
objectives.”
- - Louis A. Allen
Organization
Organizationisisan an M
form
form of
of every
every human
human
Louis A. Allen
association
associationof oftwo
twoor
or
association more
moreindividuals
individualsworks
association for
for the
the inintogether
works
attainment
attainment ofof togetherininaa
coordinated
coordinatedmember
memberto to
common
common purpose.”
purpose.” achieve
achievecommon
common
-Mooney
-Mooneyand
andReiley
Reiley goals. 
goals. 

4.

“Organisation
“Organisation isis the
the An
An organization
organization isis aa
harmonious
harmonious inter-
inter- collection
collectionof ofpeople
people
relation
relationof
of functions
functions working
working together
together inin
and Organization
Organization
and staff.”
staff.” aa division
divisionofof labor
labor to
to
-G.
-G. E.
E. achieve
achieve aa common
common
Milward
Milward purpose.
purpose.

Types of Organization Structures

1. Hierarchical 2. Functional 3. Horizontal or flat org 4. Divisional org

organizational structure Organizational structure structure structure

5. Matrix org structure 6. Team-based org 7. Network org

structure structure
 Three (3) Important Elements of Delegation

Delegation

- Delegation of Authority is a process through which manager

assigns responsibility to the subordinate with a certain level of
authority, i.e. power to take decisions, in order to accomplish
certain assignments on the manager’s behalf.
-
- Delegation means conferring authority from one manager or
organization level to another in order to accomplish particular
assignments. It is the process of allocating tasks to subordinates,
giving them adequate authority to carry out those assignments,
and making them obligated to complete the tasks satisfactorily.

“Without delegation no organization can function effectively. Yet, lack

of courage to delegate properly, and the knowledge of how to do it, is
one of the most general causes of failure in organizations.”
—Lester Urwick, Elements of Administration
 1. 2.
Responsibility Authority
Responsibility is the To carry out the responsibility
assigned, there is need for
activity or task entrusted authority to spend resources,
by the manager to command people, issue
subordinates. Though directions and make decisions.
delegated, the ultimate The authority must, therefore,
be delegated so that
responsibility subordinates can carry out the
(accountability) for responsibility assigned.
completion of the task Authority is the right to issue
rests with the manager orders to discharge the
responsibility. Authority should
only. be communicate with
responsibility. Authority more
than responsibility can result in
misuse of authority and less
authority may not achieve the
targets assigned.
3.
Accountability
When managers delegate
work to subordinates, they
remain accountable for
accomplishment of that task.
The responsibility and
authority, thus, can be
delegated but not
accountability. Managers
remain accountable for
delegated tasks to their
superiors. Thus, while
authority flows from top to
bottom, accountability flows
upwards.
 DAVAO DEL NORTE
FORMAL ORGANIZATION
VS STATE
INFORMAL COLLEGE
ORGANIZATION

Primary natureof Management, Governance and Continuing

Institute Chapter 5 – Staffing
Studies
Works to gain fixed definitive goals Works to gain the individual social
What is staffing?
and psychological needs of its
sharers.

Formulation
Staffing is concerned with manning various positions in the organisation. Staffing involves the determination
of manpower requirements of the enterprise and providing it with adequate competent people at all its levels.
Is formulated in result of a formal Is formulated spontaneously and
- According to Theo Haimann, “Staffing pertains to recruitment, selection, development and
plan and proposal.
compensation of subordinates.”
abruptly.

- According to Koontz and O’Donnell, “The managerial function of staffing involves managing the
Workingproper
organisation structure through mechanism
and effective selection, appraisal and development of
personnel to fill the roles designed into the structure.”

Are- governed
S. Benjamin has defined
by certain rulesstaffing
and as –Do “The
notprocess involved
follow any in identifying,
specific rules or assessing, placing,
evaluating and directing
regulations of actions. individuals at work.”
regulations.
- “Staffing can be defined as filling and keeping filled positions in the organisation structure.”
—Koontz and Weihrich
Communication system

Communication systems are formal Communication systems are

and precise. informal and scattered.

Size and scope

Size and scope of a formal Size and scope of an informal

organization is wider. organization is narrow.

Chain of Command

Chain of command is clear and No specific chain of command is

explicit. present.
 Steps in the Recruitment and Selection process

The Staffing Process

- Recruitment is looking for and acquiring a pool of prospective candidates with the preferred
knowledge, skills, and experience to let an organization select the most proper people to fill the job
vacancies against defined position descriptions Nature of andStaffing
specifications.
Two ways of recruitment;
1. Internal
1.
1.Staffing
recruitment
Staffingis isan
animportant
– managerial
is searching
importantmanagerial
for qualified
function- Staffing
function- Staffingfunction
peoplethefrom
functionisisthe most existing mangerial
mostimportant
employees
importantmangerial act
act
to fill open
positions.
along
alongwith
withplanning,
planning,organizing,
organizing,directing
directingand
andcontrolling.
controlling.TheTheoperations
operationsof ofthese
thesefour
fourfunctions
functionsdepend
depend
upon
uponthe
themanpower
manpower which
whichis isisavailable
availablethrough
through staffing function.
staffingpeople
function.from outside who have not worked previously
2. External recruitment- looking for qualified
in the organization to fill open positions.
- Selection is the method by which the human resources (HR) section of an organization searches for
2.Staffing
2.Staffing is
isaapervasive
pervasive activity- As
activity- As staffing
staffing function
functionisiswithin
carried out
outby
carriedthe byall
allmangers
mangersandandininall
alltypes
typesof
of
the recruits employees
concerns to fill identified
where business activities areopen positions
carried out. company.
concerns where business activities are carried out.

- According to Harold Koontz, “Selection is the process of choosing from the candidates, from within
the organization or from outside, the most suitable person for the current position or for the
3.
3.Staffing
Staffingis
isaacontinuous
continuousactivity- This
activity- Thisisisbecause
becausestaffing
staffingfunction
functioncontinues
continuesthroughout
throughout the
thelife
lifeof
ofan
an
future positions.”
organization
organizationdue
dueto
tothe
thetransfers
transfersand
andpromotions
promotionsthat
thattake
takeplace.
place.

- Dale Yoder said, “Selection is the process by which candidates for employment are divided into
classes 4.those
4.The whoof
Thebasis
basis ofwill be offered
staffing
staffingfunction employment
functionis
is efficient and those
efficientmanagement
managementof who will not.”resources
ofpersonnels- Human
personnels- Human resourcescan
canbe
be
efficiently
efficientlymanaged
managedbybyaasystem
systemor
orproper
properprocedure,
procedure,that
thatis,
is,recruitment,
recruitment,selection,
selection,placement,
placement,training
trainingand
and
development,
development,providing
providingremuneration,
remuneration,etc.
etc.
- David and Robbins said, “Selection process is a managerial decision-making process as to predict
which job applicants will be successful if hired.”
5.Staffing
5.Staffinghelps
helpsin
inplacing
placingright
rightmen
menatatthe
theright
rightjob. It
job. It can
canbe
bedone
doneeffectively
effectivelythrough
throughproper
proper
recruitment
recruitmentprocedures
proceduresand
andthen
thenfinally
finallyselecting
selectingthe
themost
mostsuitable
suitablecandidate
candidateasasper
perthe
thejob
jobrequirements.
requirements.

6.
6.Staffing
Staffingisisperformed
performedby byall
allmanagers depending
managers dependingupon uponthe
thenature
natureof
ofbusiness,
business,size
sizeof
ofthe
thecompany,
company,
qualifications
qualificationsand
andskills
skillsof
ofmanagers,etc.
managers,etc.InInsmall
smallcompanies,
companies,thethetop
topmanagement
managementgenerally
generallyperforms
performsthis
this
function.
function.InInmedium
mediumand
andsmall
smallscale
scaleenterprise,
enterprise,ititisisperformed
performedespecially
especiallyby
bythe
thepersonnel
personneldepartment
departmentofof
that concern.
that concern.
 Recruitment and Selection Process

7.
7.
\ 1.
1. Define
Define the
the job
job 4.
4. Reference
Reference check
check and
and
being
being looked for
looked for Awarding
Awarding the
the Job
Job background
background
investigation
investigation

5.
5.
2. Psychological
Psychological Testing
Testing 8.
8.
2.
--Situational
Situationaljudgement
judgement Physical Examination
Physical Examination
Attract
Attract Candidates
Candidates and
--Aptitude
Aptitude
--Personality
and Drug
Drug Testing
Testing
Personality
--Honesty
Honestyand
andintegrity
integrity

3.
3. 6.
6. 9.
9.
Managing
Managing Conducting
Conducting Employee
Employee
Applications
Applications Interviews
Interviews Orientation
Orientation

The Employee Selection Process

1. Improving quality of Training – is any attempt to improve
work force. performance on a currently held job or
2. Enhance employee related to it.
Development – refers to learning 1. Employee Orientation
growth.
opportunities designed to help 2. Apprenticeship
3. Prevents obsolescence
employees grow. 3. Health and Safety
4. Assisting new comer
4. Team Training
5. Bridging the gap
5. Diversity training
between planning and
6. Mentoring and Coaching
implementation
6. Healthy and safety
measures.

There are several types of training we can provide for employees. In all
situations, a variety of training types will be used, depending on the type of
job.

 Technical training addresses software

Different Training or other programs that employees
Programs
use while working for the organization.
Purpose of Training and Types of Training
Development Programs
 Quality training is a type of training that familiarizes all employees with the
means to produce a good-quality product.

 Skills training focuses on the skills that the employee actually needs to
know to perform their job. A mentor can help with this kind of training.

 Soft skills are those that do not relate directly to our job but are
important. Soft skills training may train someone on how to better communicate
and negotiate or provide good customer service.

 Professional training is normally given externally and might be obtaining
certification or specific information needed about a profession to perform a job. For
example, tax accountants need to be up to date on tax laws; this type of training is
often external.

 Team training is a process that empowers teams to improve decision
making, problem solving, and team-development skills. Team training can help
improve communication and result in more productive businesses.

 To get someone ready to take on a management role, managerial
training might be given.
 Safety training is important to make sure an organization is
 Policy Guidelines on compensation/wages and
Performances evaluation/ appraisal

Compensation – is the total amount an employee can expect to receive when working
from an organization.
4 basic kinds of Compensation
1. Pay level decisions – are decision about whether to pay employees at a level that
is below, above or at current market wages.
2. Pay variability decisions – concern the extent to which employees’ pay varies with
individual and organizational performance.
3. Pay structure decisions- are concerned with the internal pay distributions meaning
the extent to people in the organization to receive very different levels of pay.
4. Employee benefits- are any kind of compensation other than direct wages paid to
employees.
Performance Appraisal is the systematic evaluation of the performance of employees
and to understand the abilities of a person for further growth and development.
Performance appraisal is generally done in systematic ways which are as follows:

 The supervisors measure the pay of employees and compare it with targets and plans.
 The supervisor analyses the factors behind work performances of employees.
 The employers are in position to guide the employees for a better performance.

Performance and Salary Review Policy

 Purpose
The performance appraisal process provides a means for discussing, planning and reviewing the performance of each employee.
Performance appraisals influence salaries, promotions and transfers, and it is critical that supervisors are objective in conducting performance reviews
and in assigning overall performance ratings.

 Eligibility
All full- and part-time employees are provided an annual performance review and consideration for merit pay increases as warranted.

Performance Review Schedule

Performance appraisals are conducted [annually/quarterly/semi-annually] on [an established focal date each year / dates announced by HR]. Each
[Company Name] manager is responsible for the timely and equitable assessment of the performance and contribution of subordinate employees.

 Salary Increases
A performance appraisal does not always result in an automatic salary increase. The employee’s overall performance and salary level relative to
position responsibilities must be evaluated to determine whether a salary increase is warranted. Out-of-cycle salary increases must be preapproved by
 Objectives of Performance Appraisal
Performance Appraisal can be done with following objectives in mind:

1. To maintain records in order to determine compensation packages, wage structure,

salaries raises, etc.
2. To identify the strengths and weaknesses of employees to place right men on right job.
3. To maintain and assess the potential present in a person for further growth and
development.
4. To provide a feedback to employees regarding their performance and related status.
5. To provide a feedback to employees regarding their performance and related status.
It serves as a basis for influencing working habits of the employees.

Advantages of Performance Appraisal

It is said that performance appraisal is an investment for the company which can be
justified by following advantages:

1. Promotion: Performance Appraisal helps the supervisors to chalk out the promotion
programmes for efficient employees. In this regards, inefficient workers can be dismissed
or demoted in case.
2. Compensation: Performance Appraisal helps in chalking out compensation packages
for employees. Merit rating is possible through performance appraisal. Performance
Appraisal tries to give worth to a performance. Compensation packages which includes
bonus, high salary rates, extra benefits, allowances and pre-requisites are dependent on
performance appraisal. The criteria should be merit rather than seniority.
3. Employees Development: The systematic procedure of performance appraisal helps
the supervisors to frame training policies and programmes. It helps to analyse strengths
and weaknesses of employees so that new jobs can be designed for efficient employees. It
also helps in framing future development programmes.
4. Selection Validation: Performance Appraisal helps the supervisors to understand the
validity and importance of the selection procedure. The supervisors come to know the
validity and thereby the strengths and weaknesses of selection procedure. Future changes
in selection methods can be made in this regard.
5. Communication: For an organization, effective communication between employees and
employers is very important. Through performance appraisal, communication can be
sought for in the following ways:
A. Through performance appraisal, the employers can understand and accept
Employee Relations Defined Employee
Ways Movements
to Improve Employee Relations

Importance of Employee Relations

-Every individuals shares a certain relationship with his colleagues at the workplace.
- It is important that the employees share a healthy relationship with each other to deliver
the best performance.
- No individual can work alone. He needs the support and guidance of his fellow workers to
come out with a brilliant idea and deliver his level best.

11.. There
There are
are several
several issues
issues on
on which
which an
an individual
individual cannot
cannot take
take decision
decision alone.
alone.

2. Work
2. Work becomes
becomes easy
easy ifif itit is
is shared
shared among
among all.
all.

3.
3. The
The organization
organization becomes
becomes aa happy
happy place
place to
to work
work ifif the
the employees
employees work
work together
together as
as family.
family.

4.
4. An
An individual
individual feels
feels motivated
motivated in
in the
the company
company of
of others
others whom
whom he
he can
can trust
trust and
and falll
falll back
back
on
on whenever
whenever needed.
needed.

5.
5. Healthy
Healthy employees
employees relations
relations also
also discourage
discourage conflicts
conflicts and
and figths
figths among
among individuals
individuals

6.
6. AA healthy
healthy employee
employeerelation
relation reduces
reduces the
the problem
problem of
of absenteeism
absenteeism at
at the
thework
work place.
place.
7.
7. ItIt is
is wise
wise to
to share
share aa warm
warm relationwith
relationwith fellow
fellow workers
workers ,, because
because none
none will
will ever
ever know
know
when
when he he needs
needs them.
them.

- Movement is a horizontal or lateral transfer of an employee from one job,

section, department, shift, plant or position to another at similar or another
place where salary, status, and responsibility are the unchanged.
- Movement is also an opportunity for an employee to expand his career
path opportunities.

Types of Employee Movements

1.
1. Production
Production movements
movements
In order to stabilize the employment in the company and avoidance of lay off,
an employee may be moved from one department to another department.

2.
2. Replace
Replace movements
movements
An employee with a long service may be moved in some other department to
replace a person with a shorter service.

3.
3. Versatility
Versatility movements
movements
The versatility movements are made for the purpose of preparing the
employees for production and replacement movement.

4.
4. Shift
Shift movements
movements
In case of manufacturing concerns, there are normally three shifts. (Rotating,
no-rotating, and moved from one shift to another shift)

5.
5. Remedial
Remedial movements
movements
In case an employee does not feel comfortable on his job, he may be moved
to some other job.

6.
6. Miscellaneous
Miscellaneous movements
movements
Movements may also be classified as temporary or permanent movements.
 Rewards System

- Rewards are positive outcomes that are earned as a result of an employee’s performance.
2 Types of Rewards
1. Intrinsic Reward – is an intangible award of recognition, a sense of achievement, or a
conscious satisfaction.
2. Extrinsic Reward – are tangible rewards usually financial in nature, such as a raise in
salary, bonus for reaching some quota or paid time off.
- Reward system refers to all monetary, non- monetary, and psychological payments that
an organization provides for its employees in exchange for the work they perform.
- Recognition means acknowledging someone facing their peers for particular
accomplishments achieved, actions take or attitudes demonstrated through their
behaviour.
Rewards System Principles
 Chapter 6 – Leading
DAVAO DEL NORTE STATE COLLEGE
Institute of Management, Governance and Continuing
What is leadership?
Leadership
Leadershipisisthe
theability
ability
Studies
to
topromote
promoteconfidence
confidence
and
andsupport
supportamong
among
people
people who arelooked
who are looked
Leadership
Leadership functions
functions for
forto
torealize
realize Leadership
Leadershipisisthetheidea
idea
are organizational
organizationalgoals. that
thatleaders
leadersare
are linked
linkedto
to goal
goal goals.
individuals
are
accomplishment
accomplishment and and individualswho,
who,by by
their
theiractions,
actions,make
make
to
to maintenance
maintenance and and possible
strenthening possiblethethemovement
movement
strenthening ofofthethe of
ofaagroup
groupofofpeople
peopletoto
members
membersof of the
the common
commonand andshared
shared
organization.
organization. goal.
goal.

Leadership
Leadership isisthe
the
process Leading
Leading isis setting
setting up
up
processofofinfluencing
influencing
1.
1. Rewards
Rewards
others to should
should
facilitate the
others to facilitate the support
support behaviors
behaviors directly
directly with
with accomplishing
direction
direction and
accomplishing and
Leadership
Leadership influencing
influencing others
otherstoto
Strategic goal
Strategicattainment
goal ofof
attainment pursue
pursue that
that
organizationally
organizationally direction.
relevant goals. direction.
This principle
relevantmay
goals.seem so obvious as to sound trite.

2.
2. Rewards
Rewards should
should be
be tied
tied to
to passion
passion and
and purpose,
purpose, not
not to
to pressure
pressure
and fear
and fear
Fear is a powerful motivator, but only for a short time and then it dissipates.

3.
3. Workers
Workers should
should be
be able
able to
to clearly
clearly associate
associate the
the reward
reward to
to their
their
accomplishments
accomplishments
One of the purposes of a reward is to reinforce the positive behaviors that
earned the reward in the first place.

4.
4. Rewards
Rewards should
should occur
occur shortly
shortly after
after the
the behaviors
behaviors they
they are
are
intended to reinforce
intended to reinforce
The
The closer
closer te
te occurence
occurence of
of the
the reward
reward to to the
the occurence
occurence of of the
the desired
desired behavior
behavior
in
in the
the workplace,
workplace, the
the easier
easier itit is
is for
for the
the employee
employee to to realize
realize why
why he
he is
is being
being
rewarded.
rewarded.
 LEADING VS. MANAGING

- Directing means encouraging, subordinates to work toward achieving

company objectives (Reinecke and Schoell 1980). LEADERSHIP VS. MANAGEMENT
- It refers to the task of working with and through people to accomplish
organizational goals.
- It deals with the human side of organization with respect to the
understanding the organizational behaviour, involving tools of leadership,
communication and motivation.

- Purpose of directing is to channel the behaviour of allNature and to

the personnel Purpose of Directing
accomplish the organization’s mission and objectives while
simultaneously helping them achieve their own personal objectives.
Definition of Directing

Purpose of Directing
MOTIVATION

Different Theories of Motivation

Need - Based Theories of Motivation

- Motivation is defined as the desire and action towards goal-oriented

behaviour.
- According to Rensis Likert, “Motivation is the core of management”.
- Motivation refers to e degree to which an individual both desires and is
willing to exert effort toward attaining job performance.
-The word motivation comes from the Latin word “movere” which means
“to move”.

Maslow's
Maslow's McClelland's
McClelland's
Akderfer's
Akderfer's ERG
ERG Herzberg's
Herzberg's Two
Two
Hierarchy
Hierarchy of
of Aquired
Aquired -Needs
-Needs
Theory
Theory factor
factor Theory
Theory
Needs
Needs Theory
Theory
Abraham
Abraham Maslow's
Maslow's need-
need- ItItisis developed
developedbyby Frederick
Frederick Herzberg
Herzberg David
David McClelland
McClelland
hierarchy
hierarchy theory
theoryisis one
oneof
of Clayton
Clayton Alderfer
Alderfer proponent
proponent acquired-needs
acquired-needs theory.
theory.
 theories of motivation. human
humanneeds
needsmay
maybebe features
features of of the
the work
work three
three types
types ofof needs.
needs.
The
Thecritical
criticalpart
part of
of this
this clustered
clusteredunder
under three environment
environment that that satisfy These
theory
three satisfy These needs
needs areare the
the
theoryisis that
that needs
needs areare categories,
categories, which
whichare
are employees
employees are are very
very need
need forfor achievement
achievement ,,
arranged
arranged ininhierarchy.
hierarchy. existence
existence,,relatedness, diffrent
diffrent from
from features
features that the
relatedness, that the need
need for
for affliation,
affliation,
The
Thelowest-level
lowest-level needs
needs and
and growth. dissatisfy
dissatisfy them. and
growth. them. and need
need for
for power.
power.
are
arethe
thephysiological
physiological He
He tagged
tagged factors
factors All
All individuals
individuals possess
possess aa
needs,
needs, and
level
andthethe highest
highest causing
causing dissatisfactionLeadership
dissatisfaction of
of Role Theories
of
combination
combination theseand Styles
Communication
of
of these
level needs
needs areare the
the self-
self- workers
workers as as hygiene.
hygiene. needs,
needs, andand the
the dominat
dominat
actualization
actualization needs.
needs. Process - Based Theories of Motivation needs needs areare thought
thought to to
drive
drive employee
employee behavior.
behavior.
Great
Great Man
Man Theory
Theory
The
The great
great man
man theory
theory of
of leadership
leadership states
states th
th
Equity
Equity Theory
Theory Expectancy
Expectancy Theory
Theory Reinforcement
Reinforcement
19th
19th century,
century, thisTheory
Theory
this theory
theory states
states that
that leadersh
leaders
attributes
attributes of
of intelligence,
intelligence, courage,
courage, confidenc
confidenc
Based
Based on on this
this theory,
theory, According
According expectancy
expectancy Reinforment
Reinforment theory theory is is based
based
individuals
individuals are are motivated
motivated by by theory,
theory, individual
individual motivation
motivation on the work of Ivan
on the work of Ivan Pavlov Pavlov
sense
sense of of fairness
fairness inin their
their to
to put
put forth
forth more
more or
or less
less on
on behavioral
behavioral conditioning
conditioning
interactions.
interactions. effort
effort is
is determined
determined by by ad
ad layer
layer the
the work
work ofof B.F.
B.F.
sense
sense of of fairness
fairness isis aa result
result rational
rational calculation
calculation in
in which
which Skinner
Skinner on on operant
operant
of
of social comparisons being
social comparisons being individuals
individuals assess
assess their
their conditioning.
conditioning.
made.
made. situation.
situation. isTrait
ItIt is basedTheory
Trait
based Theory
on
on aa siimple
siimple idea
idea
ItIt is
is perceived
perceived fairness
fairness ifif the
the Influencing
Influencing Expectancy
Expectancy that
thatThe may
may be
be
The trait
viewed
viewed
trait theory
theory of
asas
of leadership
leadership states
states that
that cer
cer
input-to
input-to output ratio
output ratio of
of aa Perceptions
Perceptions common
common sense
sense
qualities
qualities doesbeginning
does beginning
not at
at mean
not necessarily
necessarily mean someon
someo
individual
individual is is brought
brought intointo the
the Influencing
Influencing Instrumentality
Instrumentality infancy.listeners
infancy.listeners oror communicators,
communicators, but but not
not every
every lis
lis
situation is similar
situation is similar to theto the Perceptions
Perceptions 44 Interventions
Interventions
input-to-outcome
input-to-outcome ratio ratio ofof aa Influencing
Influencing Valence
Valence 1.
1. Positive
Positive
comparison
comparison person. person. Reinforcement
Reinforcement 2. 2.
negative
negative Reinforcement
Reinforcement 3. 3.
Extinction
Extinction
4.
4. Punishment
Punishment
Transformational
Transformational Leadership
Leadership Th
Th
The
The transactional
transactional theory
theory of of leadership,
leadership, als
als
rewards
rewards andand penalties.
penalties. ItIt views
views effective
effective le
l
prioritize
prioritize order
order and
and structure
structure over over creativit
creativi

The
The Behavioral
Behavioral theory
theory
he
he behavioral
behavioral theory
theory of
of leadership
leadership focuses
focuses oo
into
into aa leader.
leader. One
One of
of the
the key
key concepts
concepts ofof beh
be
more
more likely
likely to
to act
act or
or lead
lead inin aa certain
certain style
style as
a

The
The transactional
transactional theory
theory or
or man
man
The
The transactional
transactional theory
theory of of leadership,
leadership, also
also
rewards
rewards andand penalties.
penalties. ItIt views
views effective
effective lead
lea
prioritize
prioritize order
order and
and structure
structure over over creativity. 
creativity.

The
The situational
situational theory
theory
The
The situational
situational theory
theory ofof leadership
leadership does
does nono
Instead,
Instead, situational
situational theory
theory argues
argues that
that the
the be
b
situation.
situation. They
They may
may respond
respond to to aa situation
situation byb
however
however they
they think
think is
is necessary.
necessary. Situational
Situationa
 Management of Change and Diversity
- Communication serves as a groundwork for planning.
- Communication is the heart of management.
- Communication plays a very important function in process of directing
and controlling the people in the organization.

Importance of Communication

1.
1. Communication
Communication encourages
encourages motivation
motivation byby telling
telling and
and clarifying
clarifying
the
the employees
employees about
about the
the task
task to
to be
be done,
done, the
the way
way they
they are
are
performing
performing the
the task,
task, and
and how
how toto improve
improve their
their performance
performance ifif itit is
is
not to the standards.
not to the standards.

2.
2. Communication
Communication is is aa basis
basis of
of infromation
infromation to
to the
the oraganizational
oraganizational
members
members for decision making process as it facilitates naming
for decision making process as it facilitates naming and
and
reviewing
reviewing alternative
alternative course
course of
of action.
action.

3.
3. Communication
Communication is is also
also plays
plays aa vital
vital role
role in
in changing
changing individual's
individual's
attitudes,
attitudes, like
like aa well
well informed
informed individual
individual will
will have
have aa better
better attitude
attitude
than a less informed individual.
than a less informed individual.

4.
4. Communication
Communication also
also assists
assists in
in socializing.
socializing.

5.
5. Communication
Communication also
also helps
helps in
in controlling
controlling process.
process.
- Change is a large part of any business.
- A positive form of change in the workplace is diversity.
- Coping with the change and diversity in the workplace , learning how to
adopt and understand other cultures is a valuable skill and one that will
bring success.

Coping
Coping With
With Coping
Coping With
With
Change
Change in
in Diversity
Diversity in
in
Workplace
Workplace Workplace
Workplace

Communicate with employees. Inform your

Plan an office retreat, whether a camping
team of changes in the company—whether
trip, mountain getaway or weekend at a
personnel, product or protocol. Keep every
local hotel. Facilitate activities that
single person in the loop because change is
encourage everyone to get to know each
uncomfortable for people who don’t know
other. Diversity's biggest obstacle is refusal
what’s going on. Call meetings, send out
to get to know someone with a different
memos and maintain a general openness
background, ethnicity or belief system.
with your staff.

Research different cultures. Develop a

working knowledge about coworkers of
Set goals with your team. Promote
different ethnicities, sexes, religious
productivity and establish within your
affiliations and backgrounds. Pursuing
employees an interest in the company’s
knowledge about someone else displays
future by meeting with your team, setting
respect and will result in a more peaceful
goals and brainstorming ways to achieve
work environment, as well as shed some
those goals.
light on others and improve the way you
view others.

Appoint a diversity facilitator. Use

Call your team to action. Encourage your
company money to send this person to
team to improve their performance so they
diversity in the workplace training. Put him
can continue to be part of the changes in
in charge of diversity meetings and staff
the business. Avoid scaring them, but
education, as well as serving as an
establish a sense of urgency for them to
advocate for the minority groups in the
perform well.
workplace.

Understand what is expected of you or, if

you are a manager, make others aware of
your expectations. Meet with each
employee and give him a list of
responsibilities, his job description and
what is expected of him to successfully do
his job. Clear-cut parameters increase
productivity.
Open your eyes for injustice and
discrimination in the workplace, and speak
up. Neglecting to speak up on a coworker’s
behalf reinforces the words and actions of
the instigators, and slows the process of
positive change.
 Chapter 7 – Controlling

Definition of control

DAVAO DEL NORTE STATE COLLEGE

Institute of Management, Governance and Continuing
Studies

- Control is fundamental managerial function.

- It is the process of regulating organizational activities so that actual
performance conforms expected organizational standards and goals and
ensures that necessary corrective action is taken.