Lesson 5:

The Qualities of
GEMS
 The Management Process
Management is a non-stop process of
ensuring continuity and growth within an
organization.

The GEMS Cycle

 GEMS stands for Goal, Execution,
Measurement and Sustenance.
 The fundamental blocks that contribute to
the success of the enterprise.
 Four pillars that push organizations to
survive, grow, and reach higher heights.
These GEMS assume the framework of a wheel,
signifying that the entire management process
is a continuous cycle.

There is only one management process with a

constant set of stages. The difference lies mostly
in: 1) The application of these stages, 2) The phase
that a certain organization will be inclined to
concentrate on, and 3) The length of time it would
for the organization to finish each stage before the
cycle begins once more.
 The GEMS Management Wheel
 The GEMS of Management emphasizes the
most valuable aspects of the management
process-aspects that serve as the “gold-
mine” of management excellence.
PHASE 1: GOAL SETTING
 The management cycle begins with
establishing the goal for a company or
organization.
 Objectives and goals are derived from a
sound review and understanding of the
purpose, vision and mission of the
organization
Phase 1: GOAL SETTING
To fulfill this function, the manager must
engage in the following activities:
 Synthesizing Information
 Formulating Alternatives
 Deciding on Courses of Action
 Establishing Goals
 In this primary stage, the manager
engages in DATA GATHERING. If his/her
company plans to embark on a project,
he/she gathers information to find out if
it will, indeed, be feasible and beneficial to
the company.
• The nature of business
• The product or service it will offer
• Its market demand
• Competition
 Through effective data gathering and
synthesis, the manager arrives at a
decision on whether or not pursue the
business.
 He also comes up with alternatives, or
even a Plan B and Plan C, in case Plan A
does not work well.
 With enough data on three possible
business-selling, you will choose through
the set of simple criteria comprising such
questions as:
• Can you do the job?
• Can you do it every day?
• Do you like the job?
• Will there be too much competition
among sellers?
• Will the business be cost effective?
 Putting your answers on a checklist,
which compares the advantages and
disadvantages of the three ventures, will
help you to make final choice.
 The next step is to put the decision in
more concrete terms. Before implementing
the decision, establish first the goal or the
“operating objective”.
 This means setting daily target revenues
from sales, within a certain level of budget
for expenses, in order for him to arrive at
an estimated net profit at the end of the
day.
PHASE 2: EXECUTING THE
PLAN
 This phase involves directing the
attainment of project or business goals.
 To do this, the manager or business
owner engages in three sub-stages:
• Organizing
• Communicating
• Guiding
 Involves putting together the resources of
people, time, money, and materials
required to implement the business plan.
 This includes identifying and purchasing
physical requirements, and developing
schedule and peddling route in the city.
 Organizing means identifying your network of
suppliers, developing an inventory of your
retail goods, and identifying your staff and
their roles.
 This would include orienting the
workforce about the business plans,
goals, policies, and systems.
 In this case, you, as the store manager,
need to carefully explain how store
operations should work out, so that the
business will run smoothly even while you
are out of the store.
 It is done by teaching the workforce to
properly relate to customers, especially
the difficult and demanding ones.
 As you gets older, guiding may even go as
far as teaching your son or trusted
member of the family every aspect of the
business, so that somebody can fully take
over the store in the future.
PHASE 3: MEASURING
RESULTS
 This requires the manager to evaluate
how the project or business is progressing
toward its goals.
 Proper evaluation allows the manager to
detect deviations from the plan in time to
take corrective action.
 This is done by comparing actual
activities with the planned activities.
PHASE 3: MEASURING
RESULTS
o For Small businesses
 the process of evaluation may not be as
quick and easy, can be through daily or
weekly profit.
o For Big businesses
 through quantitative and qualitative
instruments, longer grace period in
auditing finances (cash flow).
PHASE 3: MEASURING
RESULTS
• Qualitative aspect
 refers to customer satisfaction.

• Quantitative aspect
 refers to the increase or decrease of
shoppers in a business, as well as how
fast products are moving out of the
shelves.
PHASE 4: SUSTAINING
GROWTH
 This stage refers to as SUSTAINING
OPERATIONS which includes two
important management functions
developing people and encouraging
change.
 Change is synonymous with improvement.
 Therefore, in order to keep improving, you
must welcome changes in the company.
 A Good manager promotes creativity and
innovation, not afraid to take risks that
are within reasonable bounds, for it is
only through it that can sustain the
growth of the company.
 To have a good people in the company,
start with the right people.
 Hire someone with a previous work
experience, or someone who is young, and
is a fast learner.
 If you have good people, you will be
confident to develop them to take on more
responsibilities and to become the next
managers.
 Roles and
Responsibilities
of a Manager
 Staffing
• includes writing job descriptions, putting
ads for open positions, reviewing resumes
and interviewing applications, interviewing
prospective applicants, hiring and firing.
 Communication
• This may be one of the most important
responsibilities of a manager to keep work
place running efficiently.
• Employees need to know the mission and
goals of the business and what is expected
of them to achieve those results.
 Training
• This is also the responsibility of a manager
to identify who are the candidates for
promotions or advanced positions in the
company and should create career goals
and plans to attain them.
 Administrative Investigation
and Discipline
• A job of a manager to investigate any
employee who violates company rules and
discipline them when proven guilty.
• Discipline may include termination from
employment.
 Employee Relations
• Maintenance of good employer-employee
relations is a very important duty of a
manager.
• Poor relations affect morale of the
employees, productivity, efficiency, and
triggers hostility toward management.
 Business Growth and
Sustainability
• It is the manager’s primary responsibility
to ensure the success of the company.
• His/Her actions should all be geared to
business growth and sustainability.