PURPOSIVE COMMUNICATION (GEC2)

COMMUNICATION FOR EFFECTIVE OWRKPLACE CORRESPONDENCE

BUSINESS WRITING PRINCIPLE 1: Decide on Right Focus of Sentence Subject.

Crucial in business writing is usage of appropriate subject. Audience-focused.
 YOU-VOICE – Focus is reader.
 WE-VOICE – Focus is shared efforts.
 IMPERSONAL VOICE – Focus is to explain business ideas. Colleagues or clients
(issues within company).
 I-VOICE – Non-threatening verbs such as think and feel. Difference of opinion. Problems
in company or incident.

BUSINESS WRITING PRINCIPLE 2: Use Plain Language Over Stuffy Words.

Writing style expresses yourself. It’s responsible in creating tone in messages. In writing
business message, it should be clear, concise, confident and polite tone.

BUSINESS WRITING PRINCIPLE 3: Choose more Concise Words.

Use specific, clear, and precise words so the message is accurate.

BUSINESS WRITING PRINCIPLE 4: Use Active Voice.

Constructing sentences that readers visualize image is vital. Emphasis is placed on
subject of sentence to be straightforward and easy to understand.
Active Voice: Doer as subject + Verb + Object
We began our advocacy of helping the Malate informal settlers early last year.
Passive Voice: Object as Subject + Be Verb + Verb + Doer(Optional)
Our advocacy of helping the informal settlers of Malate began early last year.

BUSINESS WRITING PRINCIPLE 5: Use Diplomatic and Constructive Terms.

Tone in writing style is responsible for conveying your attitude. Being diplomatic is key in
building professional and favorable relationships.

JOB INTERVIEW

QUALIFIER QUESTIONS – Determine to meet general qualifications.

PERSONAL QUESTIONS – Background and personal qualities.
BEHAVIORAL QUESTIONS – Past behavior predict future behavior. No right answer. How you
handle situations.

FORMAL INTERVIEW – Position in corporation. Strict. Longer duration.

INFORMAL INTERVIEW – On the spot.

General Questions, Attitude/Maturity, Education, Motivation/Initiative, Problem Solving,

and Closing.
 OPINION-REASON MAP

GENERAL STATEMENT
(Main Idea)

REASON 1 REASON 2

DETAIL OF REASON 1 DETAIL OF REASON 2

SUMMARY OR
CONCLUSION

DRESSING THE PART – Vital. Conservative approach is best choice for interview.

ACTUAL INTERVIEW

 ARRIVAL – Go alone. Arrive early. Bring resume. Be professional.

 GREETINGS AND BEHAVIOR – Greet interviewer by name. Listen carefully and follow
instructions. Check posture.

ANSWERING QUESTIONS

 If interviewer asks questions you’re not prepared fore, take a moment to think through of
your answer.
 If you’ve been fired in the past or have had a problem with a previous employer, be
honest.
 Answers are best when stated in a positive way.
 Answers yes or no questions with an example or explanation.
 Have some questions of your own ready to ask the interviewer.

GROUP INTERVIEWS – Occasionally, you may be interviewed by more than one person. Greet
individually. Shift focus easily to address each person directly. On other instances, you may find
yourself part of group of interviewees being interviewed at the same time. It’s to be efficient.
Convey self-confidence and a positive attitude.
MAKING A BRAND FOR YOURSELF – Think how employer will remember you. Stand out.
WRITING TO ANALYZE

DEFINITION ESSAY – Explain term/idea. Supports definitions with examples. Explain term’s
attributes. Specify what it doesn’t mean.
TECHNIQUES IN DEFINING TERMS

 ETYMOLOGY – Origin of word.

 HISTORY
 CAUSE AND EFFECT
 DESCRIPTION
 PRINCIPLES OF OPERATION – How topic functions.
 CLASSIFICATION
 CONTRAST/NEGATION – Differences.
 COMPARISON
 ANALOGY – Comparing and Dissimilarities. Familiar topic.
 EXAMPLES

KEY ELEMENTS IN DEFINITION ESSAY

 INTRODUCTION – Grabber, followed by transition sentence and ends with strong thesis
statement.
 BODY PARAGRAPHS – Three paragraphs. Relevant topic sentences. Important info
about terms.
 CONCLUSION – Rephrase thesis statement. Make larger statement about term in
conclusion.

WRITING TO ANALYZE – Break down concept into parts and examine it. Constituent of
problem-solving and decision-making skill. Essential in research and complex problems.

LITERARY PERSPECTIVES – Interpret same story in different ways. Perspective is a lens

where we can look to examine text.
DIFFERENT TYPES OF LITERARY PERSPECTIVES

 READER RESPONSE – Vital and valuable.

 ARCHETYPAL – Analysis, symbolic patterns, mythical.
 FORMALIST – Literary elements.
 PSYCHOANALYTICAL – Psychological desires.
 HISTORICAL
 MARXIST
 GENDER (FEMINIST)
 DECONSTRUCTION – Don’t rely on language. Language is fundamentally unstable
medium.
 MATH IN MODERN WORLD (GEC3)

INTEREST

INTEREST – Earned money from investments. Charged when load or credit is obtained. Linear.
PRINCIPAL – Amount borrowed.
RATE OF INTEREST – Percent of principal. Annual interest.
TIME – Number of years, months, or days.

SIMPLE INTEREST – Computed on principal. Earned at allotted time. Variable rate consumer
lending. Mortgage loans. Fixed interest.

SOLVING FOR SIMPLE INTEREST

I = P•r•t P = Principal r = Rate of Interest t = Time

IF TIME IS MISSING;
T = I / (P • r)
IF RATE IS MISSING;
R = I / (P•t)
IF PRINCIPAL IS MISSING;
P = I / (R•t)

MATURITY VALUE – Total amount of principal and interest.

SOLVING FOR MATURITY VALUE

MV = Principal + Prt
MV = P(1+rt)

EXACT INTEREST – Compute 365 days in 1 year. (Time = Exact number of days / 365)
ORDINARY INTEREST – Compute 360 days in 1 year. Banker’s rule. (Time = Exact number of
days / 365)

COMPOUND INTEREST – Previous earned interest added to principal. Computes interest more
than once. Grows from 1 interest interval. Exponential. Annually, Semi-annually, Quarterly,
Monthly, Weekly, Daily.

SOLVING FOR COMPOUND INTEREST

M = P (1+i)n M = Maturity Value of FV P = Present value
i = Interest rate per period n = Number of conversion period

SOLVING FOR PRESENT VALUE

P = F (1+i)-n F = Future Value P = Present value
i = Interest rate per period n = Number of conversion period

IF r IS MISSING;
r = m[(F/P)1/n -1] F = Future Value P = Present value
r = Interest rate n = Number of conversion period
m = Conversion period
 IF t IS MISSING;
t = log (F/P) F = Future Value P = Present value
m log (1+i) m = Conversion period i = Interest rate per period

LINEAR INEQUALITY

LINEAR PROGRAMMING – Determine best possible outcome.

LINEAR INEQUALITIES – Uses inequality symbols. (<, >, ≥, ≤)

GRAPHICAL METHOD – Uses x and y intercepts.

ORIGIN TEST – Determine shaded regions.

STEPS TO DETERMINE THE SOLUTION SET AND GRAPH OF LINEAR

INEQUALITIES
1. Change the linear inequalities to linear equation.
2. Determine the x and y intercepts and draw the graph in Rectangular Coordinate System.
3. Solve the point of intersection if the are more than one linear inequality.
4. Change the linear equation back to linear inequalities.
5. Use the origin test to determine the shaded area of the graph.

LINEAR PROGRAMMING

LINEAR PROGRAMMING – Deals with optimization to maximize profit or minimize cost.

OBJECTIVE FUNCTION – Denotes relationship between variables and goals of decision
maker.
STRUCTURAL CONSTRAINTS – Explicit constraints. Limitations of availability of resources.
NON-NEGATIVE CONSTRAINTS – Implicit constraints. Confines variables to zero or positive.
FEASIBLE REGION – Variables are satisfied.
OPTIMAL SOLUTION – Highest value.
BOUNDED FEASIBLE REGION
1. When feasible region isn’t empty and is bounded, the objective function has both
maximum and minimum value, which must occur at corner points.
2. When feasible region with non-negative conditions is unbounded, an objective function
assumes a minimum at a corner point of the feasible region.

GRAPHICAL SOLUTION TO LINEAR PROGRAMMING PROBLEM

1. Use each constraint in turn to sketch the boundary of the feasible region.
2. Determine the corner points of feasible region by solving pairs of linear equations.
3. Evaluate the objective function at each corner points.
4. The maximum/minimum of the objective function at corner points yields the desired
maximum/minimum.
 EMOTIONAL INTELLIGENCE

HARNESSING EMOTIONAL INTELLIGENCE

ENHANCING EMOTIONAL INTELLIGENCE TO ACHIEVE BUSINESS OBJECTIVES

EMOTIONAL INTELLIGENCE (EI) INFLUENCE OF ORGANIZATIONAL EFFECTIVENESS

 Employee recruitment and retention

 Development of talent
 Teamwork
 Employee commitment, morale and health
 Innovation
 Productivity
 Efficiency
 Sales
 Revenue
 Quality of service
 Customer loyalty
 Client outcomes

Emotions vary tremendously across cultures both in terms of expression and meaning.

WAYS OF COMMUNICATING EFFECTIVELY WITH A DIVERSE CULTURAL

WORKFORCE

 Using active listening techniques

 Keeping messages simple and concise when giving instructions.
 Develop an understanding of other cultures to assist in understanding cultural
differences

BUILDING EFFECTIVE RELATIONSHIPS

 Providing opportunities for others to express thoughts and feelings - Key principle of
emotional intelligence.
 Giving others the opportunity to help understand other's’ point of view.
 Building trust - Strengthen workplace relationships.
 Team will work more efficiently.

ASKING FOR INPUT

DELEGATING TASKS - Assist the manager to identify which tasks to delegate to which
members of the team.

TO RECOGNIZE AND APPRECIATE THE EMOTIONAL STRENGTHS AND

WEAKNESSES OF OTHERS IN THE WORKPLACE, YOU MUST BE ABLE TO:

 Respond to the emotional states of co-workers and access emotional cues

 Identify the range of cultural expressions of emotions and response appropriately
  Demonstrate flexibility and adaptability in dealing with others
 Take into account the emotions of others when making decisions

EMOTIONAL CUES - Read others and access emotional cues.

VERBAL COMMUNICATIONS - Advantage of being more explicit than non-verbal
communications.

ACTIVE LISTENING COMPRISES OF FOUR PROCESSES

 PARAPHRASING - Summarize or recap.

 USING VERBAL PROMPTS - “I see” or “yes”.
 DEMONSTRATING COMMITMENT
 ACTIVITY - Active Listening Practice.

REMEMBER THE TOP TIPS OF ACTIVE LISTENING:

 Ask Questions • Use Verbal Prompts

 Paraphrase • Demonstrate Commitment

NON-VERBAL COMMUNICATIONS - 93% of communication. Body Movement, Posture, Eye

Contact, Paralanguage, Facial Expressions, and Physiological Changes.

SELF-MONITORING TOOLS TRACKING YOUR EXERCISE

TRACKING YOUR FOOD TRACKING YOUR SLEEP
TRACKING YOUR EXPENSES TRACKING YOUR PRODUCTIVITY

IN ORDER TO BECOME A GREAT LEADER, YOU’LL NEED TO:

 Identify emotional strength and weaknesses.

 Identify personal stressors and emotional states
 Develop awareness of emotional triggers
 Model workplace behaviors that demonstrate management of emotions
 Use self-reflection and feedback from others to improve
 MANAGERIAL ECONOMICS (ECO1)

SIMPLE PRICING

PRICING – Powerful but neglected tool.

Businesses focus on selling more and cost of materials and forget price.

CONTRIBUTION MARGIN – Price minus Cost.

PROFIT – (P – C) Q

DEMAND – Quantity consumers are willing to buy.

LAW OF DEMANDS
1. Quantity demanded is inversely proportional to its price.
2. Demand curves describes buyer behavior and how much consumers will buy.
 The value goes lower as the slices goes higher. The marginal value diminishes the more
you consume
Total value = Marginal Value1 + Marginal Value 2 …

Total Price Paid – Slice Price • Slices Purchased

Total value – Slice Price1 + Slice Price2 …
Surplus – Total Value – Total Price Paid

PREMIUM PRICING – More profit, low consumer.

FUNDAMENTAL TRADE-OFF – Sellers can raise price and sell fewer units, but earn more
profit. They can reduce price and sell more, but earn less profit. Heart of pricing decisions.

Reduce Price (Sell More) if MR > MC. Increase price (Sell Less) if MR < MC.

Revenue – Price • Quantity

Marginal Revenue – Revenue1 – Revenue2 …
Profit – Revenue – (Quantity • Marginal Cost)
MARGINAL ANALYSIS OF PRICING – Sell more, reduce price. Sell less, increase price.
QUOTA – Optimum profit for a day.

ELASTICITY – Responsiveness of demand/supply to change in determinant.

If Price Elasticity > 1, Demand is Elastic. If Price Elasticity < 1, Demand is Inelastic.
Price Elasticity (e) –

Goods that are Inelastic: Infant milk, Electricity, Medicine, Salt, Rice, Sugar.
Goods that are Elastic: Signature bags, Chocolates, Perfumes, Imported Shoes.
The less necessity of a good is, the more elastic it is. Elasticity is important because it
tells how revenue changes as you change price.

If Elastic Demand > 1: If Inelastic Demand < 1

Price Increase = Price Decrease Price Increase = Revenue Increase
Price Decrease = Revenue Increase Price Decrease = Price Decrease

If demand is elastic, increasing price may not benefit seller because demand will decrease.

If demand is elastic, a decrease in price will benefit seller.

If demand is inelastic, decrease in price will not benefit seller, a decrease in total revenue.
If demand is inelastic, an increase in price will benefit producer, an increase in total revenue.

If demand is unitary, neither increase nor decrease will affect total revenue. Equal to 1.

Relationship between marginal revenue and elasticity is: MR – P (1 – 1 / | e |)

MR > MC = (P – MC) / P > 1 / | e |
(P – MC) / P = Current Margin 1 / | e | = Desired Margin

If current margin is greater than desired margin, reduce price because MR > MC, or vice versa.

WHAT MAKES DEMAND MORE ELASTIC

 Products with close substitutes

 Demand for individual brand
 Products with many complements
 Demand curves in the long run
 As price increases, demand becomes more elastic

Forecasting tool can be used as elasticity. You can predict change in quantity with elasticity
and percentage change in price.
%Δ Quantity - e (%Δ Price)

Factor elasticity of demand = (% change in quantity) ÷(% change in factor)

INCOME ELASTICITY – Measures product’s change in demand as ratio of change in income.

Income Elasticity –
Income – Price • Quantity

Income Elasticity > 1 means demand is elastic and good is normal.

Income Elasticity < 1 means demand is inelastic and good is inferior.

ENGEL’s LAW

 Income increases, the percentage on food decreases.

 The resulting coefficient is less than one because food is a necessity.
 Income increases, the increase goes mostly to the purchase of luxury items, education,
travel and leisure.

CROSS-PRICE ELASTICITY – Measure of change in demand of Good A owing to change in

price of Good B.
Cross-Price elasticity -

NEGATIVE CROSS PRICE ELASTICITY – Complements.

POSITIVE CROSS PRICE ELASTICITY – Substitutes.

COST-PLUS PRICING – Adding fixed dollar margin to cost of products.

MARK-UP PRICING – Multiples cost by fixed number greater than 1.
Cost – P • % Mark-up

ECONOMIES OF SCALE

MARGINAL PRODUCT – Produce due to additional or last unit of variable resource input.
PRODUCTIVITY – Efficiency and power of inputs to produce.
RETURNS TO SCALE – Measure of how output changes relatively to resource inputs in the
long run and indicate how resource efficiency changes with plant size. Output changes as input
changes.
PLANT SIZE – The bigger it is, the more profit to come. Storage.
INCREASING MARGINAL RETURNS – Marginal of product variable resource increases as
each additional unit of resource is employed.

The more inputs, the more marginal returns. But marginal costs increase as well.

LAW OF DIMINISHING RETURNS – As output expands, marginal productivity declines. Short-

run. Fixity.
 Difficulty of monitoring and motivating ledger workforces.
 Increasing complexity of larger systems.
 Fixity of some factor.

Bottlenecks arise when workers share a fixed amount of complementary input. When
productivity falls from bottlenecks, cost increases.

Diminishing marginal productivity increases marginal cost. But increasing marginal cost
increases average cost.

Marginal Product – Total Product1 – Total Product2

LESSONS OF DIMINISHING RETURNS

 Size of resource shouldn’t go beyond Product-Maximizing point.
 Plant capacity increase with resources unless technology changes.
 Resources are complementary.

If long-run average costs are constant, we have constant returns to scale.

If long-run average costs rise, we have decreasing returns to scale.
If long-run average costs fall, we have increasing returns to scale.
 BASIC WAYS TO IMPROVE RESOURCE EFFICIENCY

 Change nature of resource through innovation.

 Change external condition of resources.
 More balanced resource combination.
 Using resource-saving technology.

LEARNING CURVES – Characteristics of many processes. When you produce more, you’ll
learn from experience. Current production lower future costs – important strategic
consequences.

Total Cost = MC2 + MC1

Average Cost = TC / Q

ECONOMIES OF SCOPE – Lesser scope. Practical.

If the cost of producing two products jointly is less than cost of producing two products
separately, there is economies of cope between the two.

COST (Q1, Q2) < COST Q1 + COST Q2

If cost of producing two products together is higher than the cost of producing two
products separately.

80-20 ULE – 80% of firm’s profit comes from 20% of customers.

TRADEOFF means Cost and benefits of a solution.
The biggest advantage of capitalism is that it creates wealth by letting a person follow his or her
own interest.
GOVERNMENT REGULATION provides incentives to conduct business in an illegal black
market.
A PRICE CEILING is an implicit tax on producers and an implicit subsidy to consumers.
EFFICIENCY never implies opportunity.
An individual’s value for a good or service is the amount of money he or she is willing to pay for
it.
Wealth creating transactions are more likely to occur with private property rights, with strong
contract enforcement, with black markets.
An example of price floor is wages for utility workers in Manila.
TAXES impede the movement of assets to higher-valued uses, reduce incentives to work,
decreases the number of wealth creating transactions.
The one thing that economists unite is the rational actor paradigm that is used to predict
behavior. Avoiding jargon means forcing yourself to spell out your thoughts in a simple
language.
In order to change behavior, you have to change self-interest by changing incentives.
To value a good or service means you want it and can pay for it.
An economy is efficient if all assets are employed in their highest-valued use.
Impediments that destroy wealth includes rice controls, taxes, subsidies.
Examples of subsidies include government policies to extend credit on housing loans, health
insurance, scholarship grants.
VARIABLE COST changes as output changes.
The following are variable costs electricity expense, cost of material for packaging, wages of
workers.

INTEREST is cost that are paid by the use of capital.

Critics of capitalism who thinks that if someone gains, then someone else must be losing, this is
a common mistake known as the ZERO COST FALLACY.

ECONOMIC PROFIT recognizes Implicit and explicit cost.

The cost that has been incurred and can never be recovered is the Sunk cost.
A mistake we can make by ignoring those costs that do vary with the consequences of your
decision is known as HIDDEN COST FALLACY
The cost per unit of output is called AVERAGE COST.
Opportunity cost arise due to Resource scarcity.
Negative economic profit means the firm is earning less than the equity holder’s expectation.
All of the following are examples of fixed cost are Depreciation, Salaries of managers,
Packaging design fees.

WEALTH is created when assets move from lower to higher valued uses.
The SRP is an example of Price ceiling.
OPPORTUNITY COST is the value of the best alternative that is foregone.
PRICE CONTROL is a regulation that allows trade only at certain prices.
SUBSIDIES are grants given by the government to any private organization that impedes wealth
creating opportunities.
 PROFESSIONAL ELECTIVE (AE1)

DEFERRED ANNUITY

ANNUITY – Insurance contract by financial institutions. Pay out invested funds in fixed income
stream.
LUMPSUM PAYMENT – One-time payment.
DEFERRED ANNUITY – Payment is delayed.

CASH FLOW DIAGRAM

Annuity Annuity Annuity

SOLVING FOR PRESENT VALUE OF DEFERRED ANNUITY

PVDA = A [1-(1+i)-n] (1+i)-k i = Rate per period k = Deferred period
I n = Number of payments A = Annuity