MODULE 5

TAGBILARAN CITY COLLEGE

College of Business and Industry
Tagbilaran City, Bohol

Course Code OA315 Instructor Charwen Namocatcat

Course Title Entrepreneurial Email
cnamocatcat.tcc@gmail.com
Behavior Competencies
Course Credits Contact Charwin Namocatcat Galos
3 units Number (FB Name)
(0927) 970 6415
Course Consultation
OAd Core Course
Classification Hours
Pre-Requisite(s) Consultation
None TCC Faculty Office
Venue

Learning Module 5: Management Styles (Part II)

Duration of Delivery: March 6 – March 10, 2023
Due Date of Deliverables: March 10, 2023

Learning Outcomes:
• Evaluate the areas of management based on functions.
• Evaluate the management style based on their characteristics.
• Determine the traits and management styles of the
entrepreneurs.

FUNCTIONAL AREAS OF MANAGEMENT

Management functions are applied in several functional areas of the business organization. Apart from
exercising the major functions of planning, organizing, staffing, leading, and controlling, managers are also
expected to be familiar with specialized areas of their organization as they will be managing specific tasks
and operations to ensure the success and profitability of the organization.
The following are the functional areas of management namely:
Human Resource (HR) Management
is a major functional area that primarily deals with the staffing function of management. The department in charge
of this function is tasked with the recruitment of potential asset employees for the company. HR Managers also see
to it that employees utilize their fullest potential and abilities and ensure the work satisfaction of the workforce.

Marketing Management
Involves the task of overseeing the development of new products, advertisement, promotions, and sales. Business
organizations establish marketing and sales departments to handle marketing activities for the organization.
Marketing managers plan strategies to market products and services, identify the means to implement advertising
and the effective channels to engage the market, and determine courses of action in maintaining the company’s
market share and sales.
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Operations Management
Is primarily involved in manufacturing or production. The managerial tasks in the corresponding department involve
several operations like production scheduling; procurement, maintenance and repair of equipment and facilities;
management of quality specifications; inventory control; and coordination with various departments. Managers
ensure that the work processes, systems, and conditions within the workplace contribute to efficient and productive
operations.

Financial Management
Has the task of acquiring funds and effectively utilizing them for the operations of the company. Finance managers
oversee all financial operations of the business which include fund-raising, asset investment, resource allocation,
and overall financial management.

Material and Procurement Management

Handles the purchase or acquisition of goods and services for company use. The procurement or purchasing
department is in charge of acquisition for the various departments in the organization. Other companies, meanwhile,
include the procurement process as part of the supply chain management of each functional area. Managers ensure
that the acquisition of materials and resources follow a transparent process that ensures high quality while
minimizing cost.

Office Management
Involves handling and maintaining the clerical aspects of all functional areas of the organization. Office managers
facilitate proper communication, coordination, and storage of data for all areas or departments. The administrative
department is tasked with this function, and it employs a pool of secretaries deployed in the different functional
departments as well as maintenance personnel such as janitorial services and security services.

Information and Communication Technology Management

Ensures the optimum performance of the information systems used in the organization. This ensures that all
operations of the business run smoothly, transactions are documented, and records are easily accessed.
Maintaining good information systems ensure effective decision making and excellent operations and gives the
organization a competitive advantage over other companies.

MODELS OF MANAGEMENT STYLES

What is a management style?

A management style is a way in which a manager works to fulfill their goals. Management style includes the way
that a manager plans, organizes, makes decisions, delegates, and manages their staff. It can vary widely depending
on the company, level of management, industry, country, and culture, as well as the person themself.

Management styles are affected by both internal and external factors.

Internal factors include: External factors include:
 The overall organizational and
corporate culture of the company,
 policies,
 priorities,
 employee engagement,
 staff skill levels.
In general, the higher-skilled staff does not
need as much supervision, while less
skilled staff will require more monitoring to
consistently achieve their objectives.
What Determines How
 employment laws, Managers Manage?
One test of a managers’ skills is the
 the economy, ability to adjust their management
 competitors, style in line with internal and
 suppliers,
external factors – especially if
you’re a new manager. Some of
 consumers. these internal factors that new
managers must deal with are staff
skills, overall culture, employee
These are factors that are outside of the
engagement, and company policies.
control of the organization, but will have an
The external factors that impact
effect on both managers and employees.
management style include
competitors, consumers, suppliers
and employment laws in your country
or state.

Types of Management Styles
Autocratic (Coercive Management Style)
An authoritative manager follows a top-down
approach to leading. In this style, managers make
decisions almost entirely alone. They set clear and
specific policies that everyone must follow, and they
typically don’t request feedback from employees.
Advantages: This style is useful when efficiency is
important and in crisis situations when it’s necessary
to make effective decisions quickly.
Disadvantages: New and innovative ideas rarely
emerge in an authoritative management style, and
when applied in the wrong circumstances it can also
lead to higher turnover.
Example: Many restaurants use an authoritative
management style. Diners come in expecting orderly
service and quality food. Since most restaurants run
on slim margins and suffer from even small mistakes,
authoritative management works well to keep
everyone focused on results and efficiency.
Persuasive (Charismatic Management Style)
Persuasive managers hold control of decision-making
but work to help employees understand why decisions
made by management are best for the company. They
share an honest rationale behind decision-making
policies that can foster an inclusive and trusting
environment. When an organization is successful,
employees generally accept top-down decisions and
work hard to implement them.
Advantages: This style instructs and motivates
employees with reason and logic, which some
individuals prefer to authoritative management. It can
be especially helpful when leading a less experienced
team.
Disadvantages: While persuasive management isn’t
as dominating as authoritative management, it’s still a
one-way communication process and employees don’t
necessarily have an avenue to give feedback.
Example: Consider what happens when an outside
expert, such as an independent consultant, comes in to
analyze the operations of the company. Employees
might be skeptical of what the consultant has to say and
they might be reluctant to implement the suggested
changes. Persuasive managers will be able to convince
employees that the expert’s criticisms and
recommendations are valid.
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Democratic (Participative Management Style)
A democratic or participative manager’s decision-making
process is heavily influenced by their employees. This
style includes effective communication and openness
through all levels of the organization, and employees
and managers work together to reach the goals of their
vision. Democratic management style is especially
effective when it comes to making long-term decisions
that impact the whole company.
Advantages: This style typically leaves employees
feeling valued and empowered to contribute in
meaningful ways. It also encourages them to tap into
their full potential at work.
Disadvantages: Like the consultative management
style, it’s also not as efficient. Decision-making often
involves debates and consulting multiple parties, which
can take time.
Example: Store managers often use the democratic or
participative management style. They’ll hire team
members who can work together to complete store
layouts, marketing campaigns and customer service.
These managers act as a moderator to help their team
move forward with their ideas and are available to
answer questions.
Laissez-faire (Delegative Management Style)
An authoritative manager follows a top-down approach
In the laissez-faire management style, managers are
more like mentors than leaders. They’re available when
employees need guidance, but they often let employees
make decisions on their own about how to move forward
with projects. Laissez-faire management has numerous
similarities with another style called “management by
walking around.” In this management style, managers
monitor what’s happening with employees, but don’t
become too involved with the day-to-day tasks or
projects.
Advantages: The laissez-faire style can be effective
because it gives self-motivated employees the
autonomy and space they need to be productive. This
could be particularly useful in a creative environment.
Disadvantages: Because this management style is
hands-off, it can leave some employees feeling
neglected or in need of guidance and direction.
Example: Given the unpredictable nature of the fashion
industry, allowing fashion buyers the freedom to choose
their own products often works best. If they are
knowledgeable and passionate, individual buyers are
typically much more in tune with fashion trends than
management.

SPECIAL TOPIC IN MANAGEMENT
The Business Plan
Business Plan is a document that outlines the business
goals of an enterprise, explains the viability of the
business, and describes the strategies that will be used
to implement the plan. It guides budding entrepreneurs
in defining the nature of the business opportunity and
outlines the approaches in taking advantage of that
opportunity.
Effective business plans must contain several key
components that cover various aspects of a company's
goals. The most important parts of a business plan
include:
1. Executive summary
2. Company description
3. Market analysis
4. Organization and management
5. Products and services
6. Marketing and sales
7. Funding request
8. Financial projections
9. Appendix
1. Executive summary
Your executive summary should concisely explain the
key points of your business. Keep your summary short.
It should outline the rest of your business plan, not
repeat it.
Use this first section of your small business plan to
answer (briefly):
What is your mission statement?
What do you do?
Who runs your business?
How many employees do you have, need, or plan to have?
What is your business location(s)?
What do your finances look like?
How much money do you need to run or grow your business?
Consider waiting until you’re done writing a business plan to
craft your executive summary. For some, summarizing is
easier than expanding.
2. Company description
Like the executive summary, the company description
is a brief summary of the scope of your business.
When creating a business plan, use this section to go
into detail about who runs your business, how it’s
structured, and where it’s located. Include your mission
statement and talk about how your company fills a
marketplace need.
Your company description should answer:
What does your business do?
Who are your target customers?
How is your business poised for success (aka what sets you
apart)?
What is your business structure (e.g., sole proprietorship, S
Corp, etc.)?
Where are you located?
What is your mission statement?
Use the company description as an opportunity to make your
business look good and grab any lenders’ and investors’
attention early on.
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3. Market analysis
The market analysis portion of your plan details your
market, target customers, and competition. To find this
information, you need to do some research.
Find out your competitors’ strengths and weaknesses.
Learn which demographics you plan to target. Analyze
the size of the market you want to penetrate.
Questions you should answer in your market analysis
include:
Who is your target audience?
What part of the market does your business exist in?
Who are your competitors?
How many competitors are in this part of the market?
What do your competitors do right? Wrong?
Like the title of this section suggests, you need to do a bit of
analyzing to fully understand the scope of your market, the
current players in it, and how your business fits in (or how it
stands out).
4. Organization and management
Now is the time to get into the nitty-gritty details of your
business’s structure and leadership. So, what structure
makes the most sense for your business?
You can structure your company as a:
Sole proprietorship
Partnership
Limited liability company (LLC)
Corporation
S corporation
Compare the advantages and disadvantages of each
business structure before choosing. Explain why you
chose this structure in your business plan.
Next, list the names of the people running your
business. Describe the strengths, skills, and experience
of business leaders. Delegate roles and responsibilities
to each leader. For example, if you form a partnership,
explain each partner’s role.
Use your organization and management section to
answer:
What is the legal structure of your business?
Why did you choose this business structure?
Will you change your business entity in the future?
Who runs your business?
What skills do your key employees bring to the table?
What kinds of positions do you need to fill to run your
business?
5. Products and services
Now for the fun part of your business plan—what you’re
going to sell. If you’re like most business owners, you’re
likely more excited about running your company than
structuring it.
This section of your business plan defines your offerings
and explains how they benefit your customers. Also,
discuss your offerings’ unique value proposition.
Explain what sets your products or services apart from
the rest of the market (hint: refer back to your findings
from the market analysis!).
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You products and services section should answer the
following questions:
What will you sell?
What is your product life cycle?
How do your offerings compare to what’s already out there?
What problem does your product or service solve?
Do you plan on seeking patents or copyrights?
6. Marketing and sales
You may have a great product or service, but it doesn’t
matter if nobody knows about it. Cue marketing and
sales.
This section of your business plan should explain how
you plan to market to potential customers. Will you use
online marketing strategies, such as social media and
email campaigns? Or, do you plan to use offline
strategies, like radio ads and direct mail? Lay out
exactly what combination of marketing and sales
strategies you plan to pursue.
Use this section to answer the following questions:
What marketing strategies will you use?
Which channels will you use to market to your target
customers?
How will you sell to customers (e.g., online or in-store)?
What are your ideal profit margins?
7. Funding request
If you plan on using your business plan to obtain outside
financing, here’s your chance. Define your funding
needs in this section of your plan.
Knowing how to make a business plan to secure funding
requires you to give the lowdown on your financing
needs, plans for funding, and desired repayment terms.
Your funding request should answer questions like:
How much funding do you need?
How will you fund your business?
What will the requested money go toward?
How do you plan on paying back debt?
Will you pursue debt financing vs. equity financing?
Use this section of your business plan to show investors or
lenders exactly what you’re asking for and how you plan on
protecting their money.
8. Financial projections
Use this section to lay out your business’s future
finances to help you budget. Use historical data to
estimate financial projections, if applicable.
When coming up with your financial projections, work
within time periods. You want to be as specific as
possible. And, avoid overestimating your small business
revenue. Also, be prepared to answer what you’ll do if
you don’t reach your financial projections.
Some financial questions to answer in this section
include:
How much do you have in expenses?
What is your cost of goods sold (COGS)?
How much is your projected income?
What is your break-even point?
What is your business exit strategy?
9. Appendix
The last part of knowing how to write a business plan is
tying up any loose ends. Add any additional
attachments to the appendix section of your plan.
Some documents you may need to provide include:
Credit histories
Prior financial statements (if applicable)
Business licenses and permits
Photos

TOPIC SUMMARY
In this topic we have learned that:
1.The Functional Areas of Management are: HR Management, Marketing Management, Operations Management,
Financial Management, Material and Procurement Management, Office Management, and Information and
Communication Technology Management.
2. A management style describes the methods a person uses to manage an individual, meeting, project, group of people
or organization.
3. The types of Management Styles are: Autocratic (Coercive Management Style), Democratic (Participative
Management Style), Persuasive (Charismatic Management Style), and Laissez-faire (Delegative Management Style).
4. A Business Plan guides entrepreneurs in conceptualizing the business goals, operations, and the strategies to be
employed in the process. People who aspire to become entrepreneurs should first create a business plan to provide a
structure to their start-up businesses and determine appropriate strategies in realizing their plans.

REFERENCES:
o Zarate, C. (2016). Organization and Management. C & E Publishing, Inc. Quezon City, Philippines
o Valamis. (2022). Management Styles.
https://www.valamis.com/hub/management-styles#what-is-management-style
o Indeed Editorial Team. (2021). 7 Management Styles for Effective Leadership (With Examples).
https://www.valamis.com/hub/management-styles#what-is-management-style
o Gray, R. (2021). How to Write a Business Plan That Outlines Your Goals, Secures Funding, and Beyond .
https://www.patriotsoftware.com/blog/accounting/how-to-write-small-business-plan/