NATIONAL COLLEGE OF BUSINESS AND ARTS

Bachelor of Science in Business Administration Department

Fairview, Quezon City

LECTURE NOTES NO. 2

Subject Code: BOM Description: BUSINESS ORGANIZATION AND MANAGEMENT Term: First Semester
Period: Midterm Period Academic Year:2021 - 2022 Prepared by: Joel R. Felizardo

DIRECTING
Directing is the fourth universal function of management and it refers to the process of motivation, communication,
and leadership. It deals with the relationship of managers and non-managers. Planning, organizing, staffing, and
controlling could be done effectively, but it must be supported by an understanding of people's behavior by good
communication and an ability to lead. Managers as leaders should understand the motives of people, and they should
maintain or improve the interpersonal relationship in an organization so that people can be satisfied from contributing
to the achievement and development of objectives of the enterprise.

NATURE OF DIRECTING

1. Dynamic Function
Directing is a dynamic and continuing function. A manager has to continuously direct, guide, motivate and lead his
subordinates.
2. Initiates Action
Directing initiates organized and planned action and ensures effective performance by subordinates towards the
accomplishment of group activities.
3. Provides Necessary Link between Various Managerial Functions
Directing links, the various managerial functions of planning, organizing, staffing and controlling. Without directing the
function of controlling will never arise and the other preparatory functions of management will become meaningless.
4. Universal Function
- Directing is a universal function that is performed in all organizations and at all the levels of management.

- All managers have to guide, motivate, lead, supervise and communicate with their subordinates, although more time
is spent on directing at higher levels of management.
5. Concerned with Human Relationships
- The direction function of management deals with relationship between people working in an organization.
- It creates co-operation and harmony among the members of the group.
- It seeks to achieve orderly arrangement of group effort to provide unity of action in the pursuit of common objectives.

MOTIVATION
Motivation can be described as the internal force that impacts the direction, intensity, and endurance of a
person's voluntary choice of behavior.
Motivation is derived from Latin words “movere” which means “to move” thus motivation is a force which makes a
person move or behave in a particular way.
Importance of Motivation
We need to motivate employees because of the following reasons:
-Motivated employee are more quality oriented.
-Highly motivated employees are more productive as compared to other employees. -It helps in
achieving three behavior dimensions of human resource namely -Candidates must be attracted not only
to join but also remain in the firm.
-Employees must perform task in a dependable manner.
-Employees should be creative, spontaneous and innovative at work.

Theories of Motivation

Traditional theory
The traditional theory of motivation evolved from the work 'Of Frederick W. Taylor and the management movement
that took place at the turn of this century. Taylor's ideas were based on his belief that existing reward systems were
not designed to reward individuals for high production. He felt that when highly productive people discover that they
are being compensated basically the same as less productive people, then the output of highly productive people will
decrease. Taylor's solution was quite simple. He designed a system whereby an employee was compensated according
to individual production. Thus, under Taylor's system, employees could in many cases significantly increase their pay
for production above the standard.
The traditional theory of motivation assumes that money is the primary motivator. Financial rewards are directly
related to performance in the belief that if the reward is great enough, employees will produce more.

Maslow’s hierarchy of motivation

As discussed in Chapter 1, one of the most important theories of motivation is the hierarchy of needs theory
postulated by industrial psychologist Abraham W. Maslow. He stated that human needs in the form of a hierarchy
should be satisfied in order, from the lowest to the highest needs.
Maslow’s theory is based on human needs. He created the order of 5 needs. These are basic needs, safety needs,
belonging needs, esteem needs and self-actualization:
 Basic needs include hunger, thirst, shelter and sleep. It is the lowest level of need in the hierarchy.
 Safety needs include job security, stability of income, etc.
 Belonging needs are the needs for affection, acceptance and friendship.
 Esteem needs are self-respect, status and recognition.
 Self-actualization is realized when an individual is able to achieve his goals. It is the highest level of need in the
hierarchy.

Hertzberg’s two factor theory

Hygiene factors are needed to make sure that an employee is not dissatisfied. Motivation factors are needed for
ensuring employee's satisfaction and employee’s motivation for higher performance. Mere presence of hygiene factors
does not guarantee motivation, and presence of motivation factors in the absence of hygiene factors also does not
work.

McClelland’s theory of needs

McClelland affirms that we all have three motivating drivers, and it does not depend on our gender or age. One of
these drives will be dominant in our behavior. The dominant drive depends on our life experiences.

The three motivators are:

Achievement: a need to accomplish and demonstrate own competence People with a high need for achievement
prefer tasks that provide for personal responsibility and results based on their own efforts. They also prefer quick
acknowledgement of their progress.
Affiliation: a need for love, belonging and social acceptance People with a high need for affiliation are motivated by
being liked and accepted by others. They tend to participate in social gatherings and may be uncomfortable with
conflict.
Power: a need for control own work or the work of others People with a high need for power desire situations in which
they exercise power and influence over others. They aspire for positions with status and authority and tend to be more
concerned about their level of influence than about effective work performance.
Vroom’s theory of expectancy
Victor Vroom stated that people will be highly productive and motivated if two conditions are met:
1) people believe it is likely that their efforts will lead to successful results and
2) those people also believe they will be rewarded for their success.
People will be motivated to exert a high level of effort when they believe there are relationships between the efforts
they put forth, the performance they achieve, and the outcomes/ rewards they receive.

McGregor’s theory X and theory Y

Douglas McGregor formulated two distinct views of human being based on participation of workers. The first is
basically negative, labelled as Theory X, and the other is basically positive, labelled as Theory Y. Both kinds of people
exist. Based on their nature they need to be managed accordingly.
Theory X: The traditional view of the work force holds that workers are inherently lazy, self-centered, and lacking
ambition. Therefore, an appropriate management style is strong, top-down control.
Theory Y: This view postulates that workers are inherently motivated and eager to accept responsibility. An
appropriate management style is to focus on creating a productive work environment coupled with positive rewards
and reinforcement.

Conclusion:
Motivation is the state of mind which pushes all human being to perform things with the highest spirit and with
positivity. The leader will have to ensure that every individual in the team and the organization is motivated. The
various motivation theories help in understanding what will motivate people.

COMMUNICATION
-Communication is defined as the transfer of information that is meaningful to those involved-- in general, the
transmittal of understanding.
-Communication can occur in many forms ranging from face-to-face contact involving facing expressions and body
movements.
-Although communication has application to all phases of managing, it is particularly important in the function of
directing.
-Good communication has been defined as the interchange of thought or information; it brings about mutual
understanding and confidence.

TYPES COMMUNICATION

Upward Communication
-is one which moves upward, i.e., from bottom to top levels in the hierarchy
-Upward communication is the process of information flowing from the lower levels of the hierarchical (chain of
command) to the upper levels. Upward Communication helps employees to express their ideas and feelings for the top
management and keeps managers aware of how employees feel about their job, policies, and procedures. The
business in general. The upward flow of communication can be facilitated through the grievance procedure, the
complaint system, counselling methods, survey questionnaires, an open-door policy, exit interviews, special meetings,
suggestion system, and other participative techniques.
Downward Communication
- moves from top to the bottom i.e. from the CEO downwards.
-it occurs when information and messages flow down through an organization’s formal chain of command or
hierarchical structure. Messages and orders start at the upper levels of organizational hierarchy and move down
toward the bottom levels.
The information may be sent down will be in the form of orders, instructions, and routine information. The channels
used to carry the information downward are: posters and bulletin boards, company magazines and newspapers, letters
and pay inserts, employee handbooks and pamphlets, information racks, loudspeaker or intercom systems, annual
reports, and so on.

LATERAL COMMUNICATION
Lateral Communication is the process of communication flowing between your co-workers or members in the same
level of hierarchy. It enables members of a particular level in the organization to share information and thus improve
their decisions and decision-making skills.

GRAPEVINE
An informal, unorganized, unofficial flow of communication in an organization. Grapevine is a kind of informal
communication that prevails in organizations and businesses. The source of such communication may not be clear. It
spreads by way of gossip and rumors. It travels through informal networks and quite often travels faster than the
formal messages. Sometimes, it gets more powerful and becomes more receptive than formal communication.

Ways to Communicate
There are many forms of communication. William Exton, Jr. enumerate? twelve ways to communicate. These are:
1. Informal talk or "grapevine" communication. This is the 5. Letters
most fundamental form of communication usually 6. Reports
adopted by an informal organization. 7. Conferences/Conventions
2. Memoranda 8. Meetings
3. Telephone calls 9. Bulletin Board Notices 10. Exhibits and Displays
4. Interoffice News 11. Visual Aids
-Communication networks refer to the pictorial depictions of informal channels. -the pattern of directions in which
information flows in the organization.

3 TYPES OF COMMUNICATION NETWORK IN AN ORGANIZATION

CHAIN
Communication travels up and down through the hierarchy. As you can see, each person communicates with only one person
directly above or below in terms of reporting relationship.
WHEEL
In wheel network, information flows to in a single person. Employees in that group communicate primarily with that one
person, it can be the leader rather than with each other.
ALLCHANNEL
-Here, in an all channel network, it permits all levels of the group to actively communicate with each other. Communications
flow upward, downward and laterally among all members of the group.

BARRIERS TO COMMUNICATION

1. Distance
The physical distance between the supervisor and his subordinates results in less face-to face communication. We
know that less face- to-face communication may lead to misunderstanding or lack of understanding of the message
being communicated. The physical distance also makes it difficult for supervisor and subordinate to seek clarification.
2. Distortion
This occurs when an individual fails to distinguish actual data from his own views, feelings, emotions, etc. Carl Rogers
contends that the major barrier to communication is the tendency to make value judgments on the statements of
others. Sometimes the supervisor and subordinates tend to interpret the information in the light of their own views,
values, opinions and background rather than interpreting the message objectively. There are supervisors who are
closed-minded.
3. Semantics
This deals with the language aspect of communication. Graham states that the structure of our language leads to
misrepresentation of the true nature of events. In the English language and in other languages, there are certain words
which have multiple meanings.
4. Lack of Levelling
This refers to various differences in the levels of supervisors and subordinates. For instance, there is a difference in the
level of knowledge and expertise of a supervisor and subordinate. If a supervisor communicates with his subordinates
on his own level of knowledge and ignore the level of the subordinates, then communication breaks down. Sometimes,
supervisors tend to use supervisory jargon, either technical or administrative, which is totally alien to the subordinates.
5. Lack of Trust
This barrier has to do with the previous experiences of subordinates' dealings with supervisor. Based on the past
experiences, if the subordinate feels that it is not good for him to report bad news to the supervisor, then he will
withhold such information from the supervisor. On the other hand, if he feels that the supervisor is considerate and
helpful, then he will not filter bad
news or unfavorable information. There are some supervisors who use subordinates for their own selfish interest, such
as promotion, merit increase and good image. Such activities may change subordinates' trust in the supervisor.
6. Inaccessibility
In some organizations we find supervisors who are often out, or keep themselves busy with trivial things and therefore
are not available to subordinates for consultation, discussion, or guidance. Such inaccessibility results in
communication breakdown. This affects the motivation of subordinates in seeking proper direction from the boss and
relies more on trial and error approaches. The inaccessibility is not necessarily physical, it can be psychological.
7. Lack of Clear Responsibilities
When the responsibilities, assigned to the subordinates are not clear, they find scapegoats or come out with excuses.
Often, we hear people say, "I thought this is what you wanted me to do," or "I thought this should be done by Robert."
Lack of clarity in duties and responsibilities result in status and role ambiguities, which simply means the position and
the role which are occupied and played by the subordinate are unclear to him.
8. Personal Incompatibility
Often the personality of the supervisor and the subordinate clash and thus create communication blocks. Rather than
viewing things objectively, personality factors dominate and issues become personalized.
9. Refusal to Listen
There are some supervisors, who by their careless attitude or arrogant nature, refuse to listen to their subordinates.
Such an attitude blocks effective communication. Refusal to listen may be due to a superiority complex feeling of "I
know everything," or an inferiority complex feeling of "I am no good."
10. Failure to Use Proper Media
Several types of media are available in the organizational situation for communication purposes. The effectiveness of
communication depends on how a supervisor chooses the proper media for his own situation. Some supervisors take
great pride in sending written memos loaded with jargon to their subordinates who lack reading and comprehension
skills.
11. Communication Gap
This refers to the defects or loopholes in the formal network of communication. In large and complex organizations,
this kind of barrier is a common occurrence. The formal communication networks are built along the authority-
responsibility lines of the organization. As the organization grows and expands, the networks tend to become large and
complex. Without much planned effort. Under such circumstance’s defects start to develop in the communication
network.
12. Lack of Direction
A lack of direction in message content may present a barrier. Some messages have two types of content: the manifest
or evident meaning and the latent or real meaning. In some cases, the manifest meaning of the message is made so
attractive that the real meaning is lost.
LEADERSHIP
Leadership is generally defined as the art and science of influencing people so that they willingly move toward the
achievement of the group goals. This concept can be enlarged to imply not only willingness to work but willingness to
work with zeal and confidence. Zeal arid confidence reflect experience and technical ability. To lead is to guide,
conduct, direct, and proceed. We can say that all managers must be good leaders, but not all leaders could be good
managers.

TYPES OF LEADERSHIP

1. The dictatorial leader accomplishes tasks through fear of penalties, and maintains a highly critical and negative
attitude in relations with subordinates. As a boss, such a person expects subordinates to perform well or be subject to
punishment or replacement. At times this approach apparently is effective in the short run, but it does not provide a
solid foundation for continued performance, because it does not give lasting satisfaction for those being led.
2. The Autocratic leader assumes a paternalistic role which forces subordinates to rely on the leader for their
satisfaction. If this type of leadership is to be successful, the leader must be an exceptionally strong and wise individual
who, by force of personality, generates respect and allegiance. The satisfaction of the subordinates to this type of
leader depends solely on the goodwill of their superior. Because this leader makes decisions without the participation
of others, subordinates have little chance to develop leadership qualities. This type results in dependency on the
continued presence of the leader, and work deteriorates when that person is absent.
3. Democratic leader depends not only on their own capabilities but encourage consultation of subordinates.
Subordinates are invited to participate in planning, decision-making, and organizing. They tend to venture on their own
initiative and to communicate freely with their fellow subordinates. This type of leadership results in a cooperative
spirit and the development of managerial abilities on the part of subordinates. Satisfaction is gained through a feeling
of group accomplishment.
4. The laissez-faire leader depends completely on subordinates to establish their own goals and to make their own
decision. This leader assumes the role of just another member of the group. Under these conditions, members of the
group are permitted to act individually and, therefore, may easily head in different directions.

MANAGEMENT SKILLS

1. Conceptual Skills – use to analyze and diagnose complex situations

Example: Nursing became in demand in early 2000 so many Colleges and Universities added nursing to the
course that they are offering.
2. Interpersonal Skills – Used to work with, understand, and motivate individuals and groups
When there are conflicts with employees you need to resolve it. If you have people problems with always be
present. You are dealing with different personalities with different thinking and ways so conflict can always be
present.
3. Technical Skills – involve job specific knowledge and techniques required to perform tasks
4. Political Skills – used to build a power base and establish connections.

MANAGEMENT ROLES
Henry Mintzberg, a well-known management researcher, concluded that what managers do can best described by
looking at the managerial roles (refers to specific actions or behaviors expected of and exhibited by a manager) they
engage in at work.
1. Interpersonal – roles that involve other people and other duties that are ceremonial and symbolic in nature
 A. Figurehead - As a manager, you have social, ceremonial and legal responsibilities. You're expected to be a
source of inspiration. People look up to you as a person with authority, and as a figurehead. You are the model
B. Leader – You should, hire, train, motivate and encourage employees.
C. Liaison - Managers must communicate with internal (subordinates and superiors) and external contacts. You
need to be able to network effectively on behalf of your organization.
2. Informational – roles that involve collecting and receiving and disseminating information
A. Monitor – In this role, you regularly seek out information related to your organization and industry, looking for
relevant changes in the environment. You also monitor your team, in terms of both their productivity, and
their well-being.
B. Disseminator – This is where you communicate potentially useful information to your colleagues and your
team.
C. Spokesperson – Managers represent and speak for their organization. In this role you're responsible for
transmitting information about your organization and its goals to the people outside it.
3. Decisional – roles that revolve around making decisions
A. Entrepreneur – As a manager, you create and control change within the organization. This means solving
problems, generating new ideas, and implementing them.
B. Disturbance Handler – When an organization or team hits an unexpected roadblock, it's the manager who
must take charge. You also need to help mediate disputes within it.
C. Resource Allocator – You'll also need to determine where organizational resources are best applied. This
involves allocating funding, as well as assigning staff and other organizational resources.
D. Negotiator – You may be needed to take part in, and direct, important negotiations within your team,
department, or organization.

Management Filipino Style

1. Manager “By Kayod” - Kayod means to give oneself to hard work. This manager is action-hungry and committed,
and his manners are rather serious. A formal and serious worker who won’t give in to bribery or any anomalous work.
2. Manager “By Lusot” - Kayod means availing on a loophole. This manager will always find loopholes to avoid hard
work or utilize an excuse for failure.
3. Manager “By Libro” - This manager literally goes by the book.
4. Manager “By Oido” - Oido comes from Spanish oir, “to listen.” This manager acquires his managerial skills by
playing by ear. He depends on practical experience to compensate for his lack of formal management education.
5. Manager “By Ugnayan” - This manager is a gifted reconciler of all philosophies and beliefs held by the various types
of managers.

Source:
Conrado E. Inigo, Jr., Ph.D., DBE (2012) MANAGENT FOR FILIPINOS: Principles and Applications, Gemini Phils.
Graphic Arts Corp.