Republic of the Philippines

Mother Mary Eugenie Center of Studies and Schools, Inc.

Sto. Domingo, Minalin, Pampanga

ORGANIZATION
AND
MANAGEMENT
Quarter 2 Week 4
Senior High School
S.Y. 2020-2021

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Overview

After finishing the course/ module, students are expected to successfully contribute towards
socio-economic transformation of their country. To this end, different concepts, principles,
methodological approaches, practices, etc., are presented and discussed in detail and in an
understandable manner. The teaching material is organized into several chapters. The first chapter
presents the nature, concepts and principles management. The second chapter presents managerial
environment. The third chapter is about planning and decision-making. Chapter four discuss about
organizing function.

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

You will need an approximately 8 weeks to finish this module that composes the first quarter of
the subject. Each week, 1 day is allotted for formal study (online) and the other 2 days for self-
directed study while one day is intended for checking of activities, assessment and evaluation.
Even though this is a distance learning program, the time frame must still be followed strictly.
Assessment

Each unit of module is composed of practice activities and assessment and valuation can be in
form of formal and informal assessment. Assessment and evaluation are recorded and part of
computation in your grades. You are expected to answer and submit them every Friday of the week,
and also you are encouraged to answer them faithfully.
Practice activities are not recorded but they are also submitted every Friday. These activities help you
to be prepared in your evaluation and assessment therefore you have to take them seriously.

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LESSON 5 LEADING
Leadership in Management

Leading as a management function combines two significant concepts leadership. Directing is

the process by which managers instruct, guide, and monitor the directing and performance of
employees. It is a continuous process as manager guide and supervise subordinates every day.
Directing also entails imposing protocols and measures that must be followed by all members of the
organization, setting the overall tone that defines coordination and cooperation within the company.
Directing is most relevant in the lower levels of management where supervisors lead and closely
supervise employees. Higher management, on the other hand, directs the organization by formulating
plans and cascading decisions to lower management and employees for implementation. Directing is
vital in the realization of an organization's plans and objectives. It involves close interaction between
superiors and subordinates, camaraderie, and synergy within the organization. For a manager to
effectively direct the activities of the organization, he or she must possess effective leadership skills.

Leadership refers to a process of social influence that enables a person to encourage others
and enlist their aid and support in the performance of tasks and in achieving a particular goal
Leadership is not primarily based on power and authority but is a product of social interaction and
defined by personal characteristics such as charisma, intelligence, and other traits.

Leadership is distinguished from management by the nature of the relationship between the
manager and his or her subordinates. Management is more transactional in nature. The manager, as
the superior officer, relays his or her instructions to subordinates who are expected to comply with
them. Compliance, meanwhile, is motivated by expected rewards. Within the framework of
management, managers and employees perform their assigned tasks because they are paid to do it.
On the other hand, leadership is defined by cooperation, mutual trust, and esteem. Leaders engage
their subordinates in a more democratic manner, and every action of the subordinate is voluntary and
not done out of obligation Leadership also encourages workers to focus on goals, anticipate
challenges, and work together to address difficulties,

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 Based on this distinction, it is possible for managers to perform the functions of management
without possessing leadership skills. What is ideal, though, is for managers to have and exercise
leadership skills to ensure that management is conducted more successfully. The personal nature of
leadership, however, requires managers to establish boundaries with their subordinates to maintain
professionalism in the conduct of their duties

Motivation

Motivation is the psychological process of directing behavior. Psychologists consider human

behavior primarily goal oriented and that there are forces that induce an individual to act or behave in
a certain manner. A person's performance in work and other tasks is defined by both ability and
motivation, Motivation is particularly significant as it determines the willingness of a person to use his
or her ability to the utmost in performing a task.

There are three elements in the process of motivation: motive, behavior and goal. Motive is
something that arouses or induces an individual to behave in a certain way or do a certain thing it is
also known as need or desire. Motives are classified as either primary or secondary motives. Primary
motives include biological needs such as food, shelter, belongingness, among others Secondary
motives involve the need for stimulus and social needs. An example of a stimulus is curiosity or
exploration. For instance, a person may be driven to travel to another country because of his or her
curiosity about its culture and tourist spots Social needs include power, affiliation, or fame. Politicians
who are running for election are mostly motivated by a desire for power or fame. Motives can also be
internal or external. Internal motives are based on an individual own personal drive to achieve a
certain goal, while external motives are based on forces or influences that are outside of the person
such as environment, peer group, family members, and society.

Behavior is comprised of actions aimed at accomplishing or achieving a particular motive or

need. Hunger, for example, motivates people to go and search for food. Goal, meanwhile, refers to
the achievement or fulfillment of a motive. When a hungry person has found some food and has
eaten it, he or she has finally achieved his or her goal.

The motivational process outlines the steps individuals take to satisfy their needs The person
first identifies his or her unsatisfied needs and determines if they are primary or secondary needs.

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The next step requires the individual to identify actions that will satisfy or fulfill the identified needs
and select the best means to satisfy them. The final step involves carrying out actions that will satisfy
needs and acquire feedback. Feedback is important as it provides information for the clarification or
modification of needs

The Motivation Process

Theories of Motivation

Several theories have outlined principles and ideas that seek to explain the nature of
motivation and its effects on a person's behavior. Major theories on motivation include Maslow's
Hierarchy of Needs, Alderfer's ERG Theory, McClelland's Learned Needs Theory, Herzberg's Two-
Factor Theory, Adam's Equity Theory, and Vroom's Expectancy Theory

Maslow's Hierarchy of Needs

The first theory of motivation is Abraham Maslow's Hierarchy of Needs. This is the most widely
recognized theory of motivation that specifies the fundamental needs of individuals. These basic
needs are arranged in a pyramid, where the most basic needs occupy the lowest layers The first two
levels are called deficiency or lower-level needs because they are essential for a person's survival.
These include physiological needs and safety and security needs. Physiological needs include food,
clothing, shelter, water, and air. Safety and security needs include health and well-being, financial
and economic security, and safety against illness and accidents.

The other basic needs that occupy the higher levels of the pyramid are the growth or higher-
level needs. These include needs for love and belongingness, need for esteem, and need for self-
actualization. Love and belongingness needs include relationships with family, friends, and peers.

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Esteem needs refer to feelings of self-worth and self-respect, as well as gaining respect from others.
These also include acceptance by others and recognition of one's talents and capabilities. At the
topmost is the need for self-actualization or realizing one's true potential

Maslow's Hierarchy of Needs

Alderfer's ERG Theory

The ERG (Existence, Relatedness, Growth) Theory of Motivation was developed in 1969 by
Clayton Alderfer, an Amencan psychologist. Alderfer integrated the levels of Maslow's hierarchy of
needs and identified three major types of needs, existence, relatedness, and growth, Existence needs
are comprised of physiological and safety and security needs Relatedness needs combine love and
belongingness, while growth needs include self-esteem and self-actualization.

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McClelland's Learned Needs Theory

David McClelland, an American psychologist, developed the Learned Needs Theory in the 1960s.
This theory is also known as Achievement Motivation Theory. According to McClelland's theory,
human behavior is defined by three motivators which are learned and shaped by a person's life
experiences. These learned needs are achievement, affiliation, and power. Though these needs are
present in every person, his or her upbringing, culture, and personal experiences will determine which
among the three will be the dominant motivator that will exert the most influence throughout his or her
life

Herzberg's Two-Factor Theory

The American psychologist Frederick Herzberg proposed the Two-Factor Theory of Motivation which
states that employee satisfaction is defined by two important factors: motivators and hygiene. Any
changes in these factors will bring about satisfaction or dissatisfaction among employees. Herzberg
further noted that satisfaction and dissatisfaction are independent conditions and management should
not assume that an increase in satisfaction is due to the elimination of factors that bring about

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dissatisfaction. Therefore, managers must both focus on increasing the factors that result to
satisfaction and eliminate factors that bring about dissatisfaction.

Adam's Equity Theory

John Stacey Adams, a workplace and behavioral psychologist, developed the Equity Theory
which proposes that employees become motivated when they feel they are treated fairly. Comparison
is considered an important factor in determining motivation and satisfaction. Adams believes that
employees compare their status with other employees, particularly when it comes to salaries,
adjustments in pay, promotion, and other benefits.

In this theory, employees seek to maintain equity or fairness regarding their personal job inputs
and outputs in comparison to other employees. Inputs include all the employee's contributions to the
job such as time, skill, effort, loyalty, commitment, training, and educational background. Outputs
include the positive and negative outcomes that result from the inputs provided and include salary,
employee benefits, recognition, reputation, and achievement. Usually, an employee assigns weights
to his or her personal inputs and outputs based on their perception of the situation. After coming up
with their estimate of their personal inputs and outputs they will then compare this to the inputs and
outputs of other employees. The other employees whom the employee uses as bases for comparison
are considered relevant others. These are employees who are in the same situation or position as the
employee.
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Vroom's Expectancy Theory

Victor Vroom, a business professor at the Yale School of Management, developed the
Expectancy Theory which explains that employees are motivated to work when they expect to
achieve something from their jobs. It assumes that employees know exactly what they have to do to
be rewarded. When employees complete a task, they are motivated by their expected outcome upon
completing it. Employees' views are influenced by three factor: expectancy, instrumentality, and
valence.

Expectancy is the belief that exerting effort will lead to the attainment of performance goals.
The level of an employee's expectancy is influenced by his or her personality, past experiences, and
self-confidence. Instrumentality is the belief that achieving a desired performance level will lead to a
particular reward. Valence is the degree by which an employee values the expected outcome or
reward.

Leadership Theories and Leadership Styles

Leading is a complex process. It involves influencing others to accomplish a mission, task, or

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

Great Man Theory

With the Great Man Theory, there is the assumption that leaders are born with innate qualities,
and that renowned leaders are destined to lead. Thomas Carlyle, a 19th-century Scottish historian,
was deeply interested in the lives of heroic figures in history. His studies led to the development of the
Great Man Theory of leadership. The theory was formulated by analyzing the behavior of renowned
men, especially military leaders.

This theory states that leadership is greatly influenced by status as many great men in history
came from the aristocracy. Carlyle also believed that in times of turmoil, there was a great man who
led and whose life and works left an indelible mark in history. He considered history the "biography of

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great men." Among the great men Carlyle mentioned in his writings are Pericles, Napoleon, Oliver
Cromwell, and Martin Luther. His views, however, discounted the role of the lower classes and
women in history as he believed that only educated and well-bred men are capable of becoming
heroes.

Trait Theory

The Trait Theory focuses on innate attributes and characteristics that a person possesses This
theory believes that leaders possess certain positive traits that enable them to become leaders. This
theory was developed by studying successful leaders and compiling a list of their common traits. This
list was then used as a basis for choosing individuals who can be considered as leaders. Ralph
Stogdill, a Professor Emeritus of Management and Science and Psychology at Ohio State University
and a leading researcher on leadership and organizations in the 1970s, identified these key
leadership traits and skills.

Behaviorist Theories

The behaviorist theories place more emphasis on the behavior of leaders rather than their
innate qualities. The patterns of behavior of leaders are observed and notable actions and behaviors
are described.

One popular behaviorist theory is Douglas McGregor's Theory X and Theory Y. This view
describes two approaches or models of motivation and leadership in the workplace. Theory X
assumes that workers inherently dislike work and will avoid it as much as possible Therefore,
managers must emphasize external motivation that includes detailed guidelines, the threat of
punishment, the promise of reward, and strict supervision. Theory Y, on the other hand, assumes that
workers take the initiative in their work and view it as a pleasant and productive endeavor. Managers,
therefore, must ensure that a pleasant environment is maintained in the workplace. Leadership in this
scenario is democratic and participative.

Concern for results is placed along the horizontal axis, while the concern for people is placed
along the vertical axis. The five leadership styles are located within quadrants that correspond to how

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each leader ranks the importance they place on people and results. The five styles of leadership
according to the leadership grid are as follows:
1. Authoritarian Leaders (high result, low people) - They are very task oriented and push their
people to work. They are very strict with schedules and expect their people to follow them without
question Authoritarian leaders do not provide their employees opportunities to cooperate or
collaborate with one another. When something goes wrong, they usually look for subordinates to
blame rather than figure out what exactly went wrong in the first place,

2 Country Club Leaders (low result, high people) - They use the power of rewards to maintain
discipline and motivate their subordinates. These leaders do not use coercion unlike authoritarian
leaders. They believe that if they do so, it will jeopardize their relationship with their subordinates

3. Impoverished Leaders (low result, low people) - They delegate tasks and then leave their
subordinates unsupervised. They allow their people to go about their job by doing their own thing,
which often results in workers struggling to finish their tasks

4. Team leaders (high result, high people) - These leaders are considered role models of good
management. They encourage their members to attain their highest potential and motivate them to
perform well in achieving their goals

5. Middle of the Road Leaders (medium result, medium people)- These leaders seek a
compromise between production and people concerns and maintain the status quo in the company.
They only limit themselves to the expectations of management This type of leadership addresses all
the regular concerns regarding production and workers, but the unwillingness to go the extra mile"
leads to mediocre performance in the long run

Participative Leadership

Kurt Lewin, a German-American psychologist, developed a framework that focused on a

leader's decision-making style. Participative leadership emphasizes the role of leaders and other
participants in decision-making. These participants include subordinates, peers, superiors, and other
stakeholders. Lewin identified three leadership styles based on their decision-making practices:

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1. Autocratic leaders - These leaders take sole charge in decision making and do not consult with
other members. This decision-making style is appropriate for making quick decisions and if there is
no need to involve a lot of people for decision making to have a successful outcome.

2 Democratic leaders - These leaders allow team members to provide inputs before making a
decision. Leaders, however, may encounter difficulty when there are varving and contrasting inputs
from members

3. Laissez-faire leaders - These leaders do not interfere in the decision making and they allow
members to make most of the decisions. This is a good approach especially if participants are
capable and do not need close supervision.

Situational Leadership

This theory considers that leadership styles are specific to a particular situation, and that
leaders adapt their actions and behavior to whatever situation they are in. This theory suggests that
leadership styles also change based on the levels in an organization.

There are factors that affect a situation, and in turn, the decisions of leaders. These include the
motivation and the capability of followers, and the relationship between the leader and his or her
followers. There are also instances when the leader's views regarding the situation and participants
influence his or her behavior. The various approaches in situational leadership share six common
variables:

1. Subordinate effort - refers to worker motivation and actual effort spent

2. Subordinate ability and role clarity -- refers to the extent to which workers know what to do and how
to do it
3. Organization of the work - means the structure of work and utilization of resources
Achievement-oriented leadership - The leader trusts the capabilities of workers and set challenging
goals to motivate them to perform at their optimal levels. This approach is best in dealing with
complex tasks or in motivating highly skilled and experienced employees.

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Another theory is John Adair's action-centered leadership model. Teamwork is essential n the
accomplishment of tasks, and the leader puts emphasis on the following elements depending on the
situation:

1. Task includes defining the task, making plans, allocating resources, and assigning specific tasks.
2. Team entails maintaining discipline, building team spirit, and motivating members.
3. Individual includes attending to personal problems, recognizing and using individual abilities, and
developing group members.

Contingency Theory

The contingency theory is a refinement of situational leadership. It requires leaders to analyze

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

Fred Fiedler's contingency theory emphasizes that there is no particular leadership style that is the
best for all situations. Fiedler identified three factors that determine the nature of a managerial task:

1. Leader-member relations - refer to how well the manager and the employees get along, and the
trust and confidence the latter places on the former.
2. Task structure - refers to how well the workers know how to accomplish the task. Is the job highly
structured, fairly unstructured, or somewhere in between.
3. Position power - refers to the amount of power a manager has in directing workers, and in giving
rewards and punishment. It also considers the maturity of the manager.

Transactional Theory

This theory considers the relationship between followers and leaders as key to achieving goals.
Leaders should give equal treatment and due recognition to their members. This will motivate workers
to be more loyal and committed to the organization. This leadership style was first described by Max
Weber in 1947 and further expanded by Bernard Bass in 1981, This theory is preferred by most
managers because it focuses on the basic management process of planning, organizing, and
controlling It involves motivating and directing subordinates by appealing to their self-interest. The

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power of transactional leaders comes from their formal authority and responsibility in the organization.
This theory also emphasizes the power of rewards and punishment. If a subordinate does what the
leader commands, a reward will follow: Similarly, if he does the opposite, an appropriate punishment
will result.

The leader-member exchange leadership theory describes how leaders in groups maintain
their positions through a series of agreements with members. Leader-member relationships are
established and nurtured in a process that starts with role-taking. When a member joins the team, the
leader evaluates his or her abilities and talents. Then, both the leader and member become familiar
with each other's preferred level of interaction and respect. The next stage, role-making, involves the
leader and member taking part in an informal negotiation where both of them clarify their roles and
build trust. Social exchanges between the leader and member are established and finalized in the last
phase which is called routinization.

Transformational Theory

This theory emphasizes the concept of change and believes that leaders are tasked to provide
direction and implement changes through performance and the attainment of goals. James Burns, an
American historian, first introduced the concept of "transforming leadership" which he defines as
leadership with a moral dimension, where the leader and followers engage each other and bring each
other to greater levels of aspiration. Bernard Bass, in his book Leadership and Performance Beyond
Expectations (1985), developed Burn's concept of "transforming leadership into transformational
leadership" wherein the leader transforms the followers. Unlike Burns, who considers the
transformational influence as a product of a two-way interaction between leader and follower, Bass
considers the direction of the influence as one-way Bass also incorporates social change in his theory
of transformational leadership, a facet missing in Burns' work. Bass defines transformational leaders
as individuals who are able to perform the following
1. expand a follower's portfolio of needs
2, transform a follower's self-interest
3. increase the confidence of followers
4. elevate followers' expectations
5. heighten the value of the leader's intended outcomes for the follower
6. encourage behavioral change

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Communication in the Workplace
Communication is important in organizing jobs and making sure that all tasks and jobs are
accomplished to achieve goals. Communication can take several forms: verbal, written, and
expressed or body language. Communication is more effective if one uses a combination of these
forms. For example, a manager making a presentation to top management ensures that all
information is provided in his or her slides and handouts. During the actual presentation, he or she
presents a confident demeanor through body language and posture, and speaks clearly and well. The
communication process below shows the elements that determine effective communication in an
organization.

. The Communication Process

The following are the elements involved in the communication process

1. Input - the content of the message

2. Sender - the one who encodes or sends the message
3. Code - a symbol system, known to both the sender and the receiver, that constructs meaning
4. Channel - the means by which the sender relays the message to the receiver
5. Noise - any distortion or interference during the communication process; the channel is often
subjected to various sources of noise. It can be psychological (bias, assumptions, ideas),
physiological (the state of health of the receiver or sender), physical distractions background noise),
and semantic (use of specialized language or jargon)
6. Receiver - the one who decodes or receives the message
7. Output - the content of the message as decoded by the receiver 8. Response - the reaction of the
receiver to the message
9. Feedback - the part of the receiver's response that is transmitted back to the sender

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Barriers to Communication in the Workplace
Communicating and talking are two different things, talking is just simple delivery without a goal of
ensuring that the message is understood by the receiver. Communicating entails successfully getting the
message across to another person, Communication is essential in the workplace since the successful
accomplishment of tasks depends on how clearly instructions are conveyed and understood by all
members of the organization There are, however, barriers that hamper effective communication. The
seven barriers to effective workplace communication are as follows:
1. Physical barriers - These barriers refer to areas that bar people from entering or gaining access such
as closed office doors, screens, and separate areas for employees of different ranks. Large working areas
may also install separation between desks or departments Research shows that one way to limit physical
barriers is proximity or placing work areas closer together. Proximity aids in communication and
encourages closeness among co-workers
2. Perceptual barriers - Perception refers to how people look at things. A problem arises when people
have different perspectives about their situation or environment Often, miscommunication occurs because
some people interpret a situation differently from others. Perceptual barriers have a negative effect on
decision-making which may bring about a failure in achieving results.
3. Emotional barriers - These barriers consist of fear, mistrust, and suspicion. These emotions tend to
restrict or block communication lines. Emotional barriers prevent people from expressing their true
feelings, resulting in employees not being open with each other. This may lead to feelings of vulnerability
and a fear of interacting with others. All these negative feelings can interrupt one's development in
communicating with others.
4. Cultural barriers - Joining a group may have both positive and negative effects. When individuals
adopt certain behavioral patterns of a group, they are rewarded through acts of recognition, approval, and
inclusion. However, cultural differences among groups may make communication difficult.
5. Language barriers - People from different countries do not speak the same language. Differences in
words, expressions, and even gestures hamper communication. This difficulty is experienced by
multinational companies that employ foreigners and expatriates who do not speak the local language.
6. Gender barriers - There are distinctions in the speech patterns of men and women that may cause
misinterpretations. Men are generally more straightforward in their interactions while women are more
emotional. Also, it has been observed that men and women have differences when it comes to the volume
of voice, pitch, and intonation.
7. Interpersonal barriers – Interpersonal relationships and personal attitudes can be barriers to
communication. Some individuals are uncomfortable about interacting with others. They prefer to be
alone, while others are friendly and enjoy interacting with others.

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Activity (Organization and Management) Week 4
Name: _____________________________________________ Date: _____________________

1. Can a manager be effective if he or she does not have leadership skills? Explain your answer.
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2. How does the motivation process explain how individuals satisfy their needs?
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3. Do you think leader should adopt a certain leadership style or should he or she be more flexible in
exercising leadership? Explain your answer
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