IM in MANA-01BC-PRINCIPLES-OF-ORGANIZATION-AND-MANAGEMENT-TITO-GONZAGA #MCP - 073423

Republic of the Philippines
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

OFFICE OF THE VICE PRESIDENT FOR BRANCHES AND CAMPUSES
MARAGONDON BRANCH
INSTRUCTIONAL MATERIALS
FOR
MANA 01 BC
PRINCIPLE OF ORGANIZATION AND MANAGEMENT
Compiled by: Checked by:
Almalyn Joy Tito Minerva C. Piedad, LPT, MEM

Dr. Agnes Y. Gonzaga Member
Faculty Committee on Instructional Materials
Date: _________________ Date: ___________________
Approved by:
Dr. Agnes Y. Gonzaga Assoc. Prof. Denise A. Abril

Head, Academic Programs Director
Date: _________________ Date: __________________

INTRODUCTION
Welcome to the Polytechnic University of the Philippines. This module will help you become an
effective learner and successfully meet the requirements of the course. You will discover that
you can learn in a very challenging way at your own pace.
THE POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

VISION
PUP: The National Polytechnic University
MISSION
Ensuring inclusive and equitable quality education and promoting lifelong learning opportunities
through a re-engineered polytechnic university by committing to:
 provide democratized access to educational opportunities for the holistic development of

individuals with global perspectiveoffer industry-oriented curricula that produce highly-
 professionals with managerial and technical capabilities
PHILOSOPHY
As a state university, the Polytechnic University of the Philippines believes that:
 Education is an instrument for the development of the citizenry and for the enhancement
of nation building; and
 That meaningful growth and transmission of the country are best achieved in an
atmosphere of brotherhood, peace, freedom, justice and nationalist-oriented education
imbued with the spirit of humanist internationalism.
 and a strong sense of public service for nation building
 embed a culture of research and innovation
 continuously develop faculty and employees with the highest level of professionalism
 engage public and private institutions and other stakeholders for the attainment of social
development goal
 establish a strong presence and impact in the international academic community
TEN PILLARS
Pillar 1: Dynamic, Transformational, and Responsible Leadership

Pillar 2: Responsive and Innovative Curricula and Instruction
Pillar 3: Enabling and Productive Learning Environment
Pillar 4: Holistic Student Development and Engagement
Pillar 5: Empowered Faculty Members and Employees
Pillar 6: Vigorous Research Production and Utilization
Pillar 7: Global Academic Standards and Excellence
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SUBJECT: MANA 01 BC- PRINCIPLES OF ORGANIZATION AND MANAGEMENT
COMPILED BY: DR. AGNES Y. GONZAGA & ALAMALYN JOY TITO
Pillar 8: Synergistic, Productive, Strategic Networks and Partnerships
Pillar 9: Active and Sustained Stakeholders’ Engagement
Pillar 10: Sustainable Social Development Programs and Projects
SHARED VALUES AND PRINCIPLES
 Integrity and Accountability

 Nationalism
 Spirituality
 Passion for Learning and Innovation
 Inclusivity
 Respect for Human Rights and The Environment
 Excellence
 Democracy
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

MARAGONDON BRANCH
GOALS
 Quality and excellent graduates

 Empowered faculty members
 Relevant curricula
 Efficient administration
 Development – oriented researches
 State-of-the-art physical facilities and laboratories
 Profitable income – generating programs
 Innovative instruction
 ICT – driven library
 Strong local and international linkage
PROGRAM OBJECTIVES
The College of Business aims to:
1. Provide complete understanding of the concepts, principles, theories, and philosophies

in Human Resource.
2. Assist students seek employment and facilitate the integration process in the corporate
environment so they can be immediately productive once employed.
3. Assist the students in appreciating the HR role in the organization and how they can
make meaningful contributions as a strategic partner in building the organization to
become globally competitive.
4. Develop researchers with quality output related to the field.
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MANA 01BC
COURSE DESCRIPTION
COURSE TITLE : PRINCIPLE OF ORGANIZATION AND MANAGEMENT

COURSE CODE : MANA 01BC
COURSE CREDIT : 3 units
PRE-REQUISITE : NONE
This course is designed to provide the students with an in-depth study and exposure to the
concepts and theories about human behavior in organization and will have an opportunity to
build and enhance their skills and attitudes in Business Organization.
COURSE OBJECTIVES
After this course, the student should be able to:
1. Discuss the different theories, concepts, principles, leadership styles and practices
relevant to entrepreneurial leadership in an organization;
2. Apply the skills, knowledge, and attributes acquired to become an effective leader; and
3. Demonstrate appreciation of the leadership challenges in a global market environment.
COURSE REQUIREMENTS
The course requirements are as follows:
1. Students are encouraged to attend the class sessions (online students) and complete all
the requirements (online and offline students).
2. The course is expected to have a minimum of four (4) quizzes and two (2) major
examination (Midterm and Final Examination).
3. Other requirements such as written/programming outputs, exercises, assignments and
the likes will be given throughout the sessions. These shall be submitted on the due
dates set by the teacher.
GRADING SYSTEM
The grading system will determine if the student passed or failed the course. There will be two
grading periods: Midterm and Final Period. Each period has components of: 70% Class
Standing + 30% Major Examination. Final Grade will be the average of the two periodical
grades.
Midterm Grading Final Grading
iv
Class Standing 70% Class Standing 70%
 Quizzes  Quizzes
 Activities  Activities
Midterm Examination 30% Final Examination 30%
100% 100%
FINAL GRADE = Midterm Grade + Final Grade

2
RUBRICS:
Outstanding Very Good Average Poor

5.0-4.5 4.0-3.0 2.5-1.5 1.0
Complete in some
Complete in all aspects Incomplete in many Incomplete and does
aspects and includes
Completeness and includes all aspects and includes not include
most of the
requirements few requirements requirements
requirements
Presents an insightful Presents an insightful Presents shallow Presents incomplete
Analysis and Use and in-depth analysis of and analysis of most of analysis of data; and analysis of data; and
of the all data; uses many the data; uses some uses limited fails to use
Entrepreneurial entrepreneurial entrepreneurial entrepreneurial entrepreneurial
Concepts and concepts and business concepts and business concepts and business concepts and
Business Tools tools learned in the tools learned in the tools learned in the business tools
subject subject subject learned in the subject
Presents limited,
Presents complete, Presents specific, Presents some unrealistic
Setting of realistic, and applicable realistic, and applicable applicable recommendation
Recommendation recommendations from, recommendations from recommendations from from the data
for future action and shows how to use it the data gathered, and the data gathered, and gathered, and failed
plans in their future action shows how to use it in shows how to use it in to show how to use it
plans their future action plans. their future action plans. in their future action
plans.
The paper has
The paper has clarity, The paper lacks clarity, The paper is not clear
Over-all sophisticated clarity,
conciseness, and conciseness, and and contains serious
cohesiveness conciseness, and
correctness. Includes correctness. Includes errors. Failed to
(writing and correctness. Includes all
some needed relevant limited relevant data and include relevant data
presentation) needed relevant data
data and analysis. analysis. and analysis.
and analysis.
COURSE GUIDE
First semester Class (18 weeks)
Week Topic Learning Outcomes Methodology Resources Assessment
v
1 PUP VMGO; PUP Graduate Discuss and Explain the Orientation * PUP Student None
Attributes; Program Educational PUP VMGO, PUP Graduate Discussion Handbook
Objectives/ Student Outcomes; Attributes, Institutional *Course
Course Objectives; Course Learning Outcomes, Syllabus
Policies Program Educational
Objectives/ Course
Intended Learning
Outcomes, Course Policies,
Course Requirement,
Grading System
1-2 Lesson 1 Management and Discuss Industrial Lecture Wriitten

Organization Development Revolution; Discussion Output
Unit 1 The Classical Explain the contribution of
Organizational Theory Frederick W. Taylor, Henri
Unit 2 The Human Relations Fayol and Max Weber.
Movements Learn about organizational
Unit 4 The Organizational behavior movement
Behavior Movement
Unit 5 The Concept of Middle-
Range Theory
3-4 Lesson 2 Management Explain the meaning of Lecture Written Output

Concepts and Structures management as a field of Discussion
Unit 1 Introduction study, team and process.
-Salient features of Management Discuss the five (5) features
-Functions of Management of management
-Levels of Management Discuss why management
is a universal and
integrative process,
dynamic function, social
process, multi-faced
disciplined, and intangible
force.
5-6 Lesson 3 The Forms of Learn the different form of Lecture Quiz
Organization organization. Discussion
-Individual or Sole Proprietorship
-Partnership
-Corporation
-Cooperative
7-8 Lesson 4 Communication Learn the importance of Lecture Written Output

Unit 1 Communication Definition communication in an Discussion
and Its Importance organization.
Unit 2 Communication Process
and Network
Unit 3 Barriers and Strategies to
Effective Communication
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9 MIDTERM EXAMINATION 70% passing
10-11 Lesson 5 Motivation Define motivation and Lecture Wriitten

Unit 1 Concepts of Motivation explain the importance of it Discussion Output
Unit 2 Maslow’s Hierarchy of in organization.
Needs Learn Maslow’s Hierarchy
Unit 3 Motivational Models Need.
Identify the different
motivational model used in
the organization.
12-13 Lesson 6 Leadership Explain the different styles Lecture Written Output
Unit 1 Different Styles of of leadership. Discussion
Leadership
Unit 2 Roles of Leaders in
Organization
Unit 3 Conflict Management
14-15 Lesson 7 Planning Learn the importance of Lecture Quiz

-Introduction of Planning planning. Discussion
- Importance of Planning Identify the difference in
- Steps in Planning Process objectives, policies, and
procedure.
Learn about forecasting.
Apply forecasting in making
a business plan.
16 Lesson 8 Directing and Learn the basic concepts of Lecture Written Output
Controlling directing. Discussion
-Directing Learn the basic concepts of
-Controlling controlling.
17 Lesson 9 Decision-Making Know the importance in Lecture Written Output

-Concepts of Decision-Making decision-making in Discussion
-Steps in Decision-Making business.
-The Dos and Don’ts of
Decision-Making
18 FINAL EXAMINATION 70% passing
vii
TABLE OF CONTENTS
Topic Page
Introduction i
Course Syllabus iv
Lesson 1 Management and Organization Development
Unit 1: The Classical Organizational Theory 1

Unit 2: The Human Relations Movements 7
Unit 3: The Organizational Behavior Movement 10
Lesson 2 Management Concepts and Structures 12
Lesson 3 The Forms of Organization 18
Lesson 4 Communication
Unit 1 Communication Definition and Its Importance 22

Unit 2 Communication Process and Network 26
Unit 3 Barriers and Strategies to Effective Communication 28
Lesson 5 Motivation
Unit 1 Concepts of Motivation 31

Unit 2 Maslow’s Hierarchy of Needs 32
Unit 3 Motivational Models 36
Lesson 6 Leadership
Unit 1 Different Styles of Leadership 41

Unit 2 Roles of Leaders in Organization 44
Unit 3 Conflict Management 46
Lesson 7 Planning 52-
Lesson 8 Directing and Controlling 57
Lesson 9 Decision-Making 63
References 68
viii
MANA 01 BC
LESSON 1 DEVELOPMENTAL STAGES OF MANAGEMENT AND

ORGANIZATION
Unit 1: Classical Organization Theory
Overview
This lesson focuses on the developmental stages of management and organization.
Learning Objectives:
At the end of this lesson, you should be able to:

1. discuss Industrial Revolution;
2. explain the contribution of Frederick W. Taylor, Henri Fayol and Max Weber;
3. present a written output about Industrial Revolution.
Course Materials:
In about 19th century, Western European and American businessmen were trying to step
up their efforts to increase their profits. People believed that greater profitability required
lowering the unit cost of goods production. During this era, engineer and scientists build their
machines and combine it into assembly line units. This was the era for engineer consultant and
efficiency.
The Industrial Revolution created an increase in employment opportunities. As factories

became widespread, additional managers and employees were required to operate them. Since
most of the factories and large companies were located near the cities, the U.S. population
migrated to urban areas often overwhelming the available housing.
The main features involved in the Industrial Revolution were technological,

socioeconomic, and cultural. The technological changes included the following:
(1) The use of new basic materials, chiefly iron and steel
(2) The use of new energy sources, including both fuels and motive power, such as coal, the
steam engine, electricity, petroleum, and the internal-combustion engine,
(3) The invention of new machines, such as the spinning jenny and the power loom that
permitted increased production with a smaller expenditure of human energy,
(4) A new organization of work known as the factory system, which entailed increased division
of labour and specialization of function,
(5) Important developments in transportation and communication, including the steam
locomotive, steamship, automobile, airplane, telegraph, and radio, and
(6) The increasing application of science to industry. These technological changes made
possible a tremendously increased use of natural resources and the mass production of
manufactured goods.
Classical Theory
SUBJECT: PSYC 40033 – HUMAN BEHAVIOR IN ORGANIZATION 1
COMPILED BY: GONZAGA, A.
TITO, A.
It is the traditional theory, wherein more emphasis is on the organization rather than the
employees working therein. According to the classical theory, the organization is considered as
a machine and the human beings as different components/parts of that machine.
6 Pillars of Classical Organizational Theory

1. Division of Labor – In order to obtain a clear specialization in order to improve the
performance of individual workers, the organization must divide work.
2. Departmentalization – The organization must group various activities and jobs into
departments. This allows it to minimize costs and also facilitate administrative control.
3. Coordination – The organization must ensure harmony among diverse functions. This
allows it to arrange the group effort in an orderly manner which provides unity of action
while pursuing a common purpose.
4. Scalar and Functional Processes – A scalar chain is the series of superior-subordinate
relationships from the top to the bottom in an organization. It facilitates the delegation of
authority or command, communication or feedback, and also remedial action or decision.
5. Structure – Structure is the logical relationship of functions in an organization. Further,
these functions are arranged for effective objective accomplishment.
6. Span of Control – This is the number of subordinates that a manager can effectively
supervise.
Frederick W. Taylor
He was one of the top engineering consultants in American

industry. His system of industrial management has
influenced the development of virtually every country
enjoying the benefits of modern industry. He developed the
four (4) “principles of scientific management”.
1. Eliminate the guesswork of rule-of-thumb.

2. Use scientific and systematic methods for selecting and
training employees.
3. Establish a clear division of responsibility between
management and employees.
4. Establish discipline.
The main elements of the Scientific Management

are: "Time studies Functional or specialized supervision.
Standardization of tools and implements. Standardization of work methods Separate Planning
function Management by exception principle. The use of "slide-rules and similar time-saving
devices". Instruction cards for workmen.
Task allocation and large bonus for successful performance. The use of the 'differential
rate' Mnemonic systems for classifying products and implements A routing system A modern
costing system etc. etc. " Taylor called these elements "merely the elements or details of the
mechanisms of management" He saw them as extensions of the four principles of management.
1. The development of a true science

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2. The scientific selection of the workman
3. The scientific education and development of the workman
4. Intimate and friendly cooperation between the management and the men.
The principles of scientific management, stand out:
Rewards
It is to be most effective in stimulating men to do their best work, must come soon after
the work has been done. The average workman must be able to measure what he has
accomplished and clearly see his reward at the end of each day if he is to do his best. In
Taylor's view, it was pointless to involve the shopfloor workers in end-of-year profit sharing
schemes.
Quality standards
The use of written documentation for each part of a worker's job, inherent in scientific
management, is strikingly prescient of the procedural documentation in use in the ISO 9000
series of quality standards:
In the case of a machine-shop which is managed under the modern system, detailed
written instructions as to the best way of doing each piece of work are prepared in advance, by
men in the planning department. These instructions represent the combined work of several
men in the planning room, each of who has his own specialty, or function. The direction of all of
these men, however, are written on a single instruction card, or sheet.
Suggestion schemes
Taylor proposed a form of incentive for employees to make suggestions if they felt an
improvement could be made to either the method or the implement used to undertake a task.
After analysis of the suggestion, and if it was introduced into the workplace, 'The workman
should be given the full credit for the improvement, and should be paid a cash premium as a
reward for his ingenuity. In this way the true initiative of the workmen is better attained under
scientific management than under the old individual plan.'
Taylor was one of the first true pioneers of management through his scientific
examination of the way work was done. His led directly to the achievements of other
management gurus like Max Weber and Henry Ford. Along with Lillian and Frank Gilbreth (see
Related Thinkers), Taylor is also recognised as a major contributor to time and motion study.
This involved examining workers’ movements in detail and using the results to streamline work
and conserve effort, but the approach has now fallen out of fashion.
In many ways Taylor’s philosophy lies in direct opposition to today’s best practice. The
most common criticism of Taylor is that his approach is too mechanistic - treating people like
machines rather than human beings, with the result being a one-size-fits-all approach to people
management and training that fails to recognise the complexity of human motivations.
Writing in 2013, Hales argued that Taylor’s ideas can be seen both as the original ‘stem
cell’ for management theory, and as a ‘pathogen’ afflicting management that most subsequent
theories have tried to remedy.
3
Henri Fayol
He was a French mining engineer, mining

executive, author and director of mines who
developed a general theory of business
administration that is often called Fayolism. He
believed that it is essential to train administrative
group for the improvement of organization’s
operation. Fayol focused on the manager. He
identified five primary functions of management:
1. Planning
2. Organizing
3. Commanding
4. Coordinating
5. Controlling
Principles of Management
 Division of work
Employees are specialized in different areas and they have different skills. Specialization
promotes efficiency of the workforce and increases productivity. In addition, the specialization of
the workforce increases their accuracy and speed.
 Authority & Responsibility

The accompanying power or authority gives the management the right to give orders to the
subordinates.
 Discipline
This principle is about obedience. It is often a part of the core values of a mission and vision in
the form of good conduct and respectful interactions.
 Unity of Command
Every employee should receive orders from only one superior or behalf of the superior.
 Unity of Direction
Each group of organisational activities that have the same objective should be directed by one
manager using one plan for achievement of one common goal.
 Subordination of Individual Interest to General Interest

The interests of any one employee or group of employees should not take precedence over the
interests of the organisation as a whole.
 Remuneration
All Workers must be paid a fair wage for their services. The wages paid must be as per a certain
standard of living to the employee at the same time it is within the paying capacity of the
company.
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 Centralization and Decentralization
This refers to the degree to which subordinates are involved in decision making.
 Scalar chain
The line of authority from top management to the lowest ranks represents the scalar chain.
Communications should follow this chain.
 Order
This principle is concerned with systematic arrangement of men, machine, material etc. There
should be a specific place for every employee in an organization.
 Equity
All the employees in the organization must be treated equally with respect to the justice and
kindliness.
 Stability of Tenure of Personnel

Management should provide orderly personnel planning and ensure that replacements are
available to fill vacancies.
 Initiative
Employees who are allowed to originate and carry out plans will exert high levels of effort.
 Esprit de Corps
Promoting team spirit will build harmony and unity within the organization.
Max Weber also formulated an administrative system called bureaucracy. He believed

that bureaucratic concept attempt to minimize the frustrations and irrationality between
management and employees. Bureaucracy as a political theory is mainly a centralized form of
management and tends to be differentiated from adhocracy, in which management is
decentralized.
According to Weber, these are the six characteristics of bureaucracy:
Task specialization (division of labor)

Weber felt that task specialization promotes the timely completion of work at the highest
level of skill. Tasks, therefore, in Weber's ideal organization are divided into categories based
on team members' competencies and areas of expertise. Employees and departments have
clearly defined roles and expectations in which they are responsible solely for the labor they do
best. This is designed to maximize efficiency for the organization. Overstepping one's
responsibilities, such as presenting new ideas outside of your department's scope, is generally
frowned upon.
Hierarchical management structure

Weber advocated that management should be organized into layers, with each layer
being responsible for its team's performance. Weber believed that each layer of management
should provide supervision to the layers below them while being subject to the control of those
above them. Thus, individuals at the top of the management hierarchy have the most authority,
while those at the bottom have the least power. This hierarchical structure clearly delineates
lines of communication, delegation and the division of responsibilities.
5
Formal selection rules
In the ideal organization, Weber believed that employees should be chosen based on
their technical skills and competencies, which are acquired through education, experience or
training – no other factors should be considered. And since workers are paid for their services,
and services are divided by job position, an employee's salary is entirely dependent on their
position. Contract terms are also entirely determined by the organization's rules and regulations,
and employees have no ownership interest in a company.
Efficient and uniform requirements

Employees, argued Weber, should always know exactly what is expected of them. In the
ideal organization, the rules are clearly defined and strictly enforced. This promotes uniformity
within the organization and keeps the company running as smoothly and efficiently as possible.
If new rules and requirements need to be introduced, higher-level management or directors are
responsible for implementing and enforcing them.
Impersonal environment
Under Weber's theory, relationships between employees are to be only professional
only. The impersonal environment characterized by bureaucracies is designed to promote
decision-making that is based solely on facts and rational thinking. It prevents favoritism or
nepotism as well as involvement from outsiders or political influence, anything that could
interfere with the mission of the organization.
Achievement-based advancement
Weber felt that promotions within an organization should be based solely on
achievement, experience and technical qualifications. Personal favors, relationships or
personality traits should not factor into personnel decisions.
Activities/Assessment:
Exercises:
1. In your own words, who are Frederick W. Taylor, Henri Fayol, and Max Weber?
2. State their contributions during Industrial revolution.
Assignment:
Research about the Classical Organizational Theory
References:
Principles and Practices of Management and Organization (Third Edition)

https://www.britannica.com/event/Industrial-Revolution
https://www.investopedia.com/terms/i/industrial-
revolution.asp#:~:text=Although%20the%20Industrial%20Revolution%20occurred,the%20mode
rn%20cities%20of%20today.
https://www.weforum.org/agenda/2016/01/the-fourth-industrial-revolution-what-it-means-and-
how-to-respond/
https://www.britannica.com/biography/Frederick-W-Taylor
6
https://en.wikipedia.org/wiki/Frederick_Winslow_Taylor
https://www.managers-net.com/Biography/Fayol.html
https://en.wikipedia.org/wiki/Henri_Fayol
https://www.managers.org.uk/~/media/Campus%20Resources/Henri%20Fayol%20%20
Planning%20organisation%20command%20coordination%20and%20control.ashx
Unit 2: The Human Relation Movement
Overview:
This lesson focuses on the human relations movements.

1. learn about human relations movements;
2. know who is Elton Mayo and his role during human relation movements.
Course Materials:
Discussion:
In 1920’s the basis for Human Relations Movement was established after it was proven
that human variability plays an important role in productivity determinants. The concept allow
the administrator to use some practices such as morale, group dynamics, democratic
supervision, personnel relations, and behavioral concepts of motivation. Human relations theory
first came to prominence in the 1930s in response to the then prevailing management theory,
7
scientism. The inventor of scientism, Frederick Winslow Taylor, held it was not important to
consider the feelings and preferences of workers.
The human relations theory of organizations has three main components. First, the
theory places an emphasis on the importance of the individual. A worker is not simply a cog in a
machine but an idiosyncratic individual who responds to his or her environment. Maximizing the
productivity of workers requires taking these individual characteristics into account. Second,
human relations theory takes into account the informal organizations in the workplace. What is
important to a worker – and what influences her productivity level – may not be the official
organizational chart but her or his associations with other workers. Third, human relations
theory stresses the importance of participative management. Employees are more likely to be
happy and engaged at work if they have meaningful input into important workplace decisions.
Failure to solicit employee input leads to unhappy workers and diminished workplace
productivity, according to human relations theory.
By the 1920s, then, scientism was the dominant management philosophy. In an effort to
test means of improving productivity, managers at General Electric’s Hawthorne Works plant in
Cicero, Illinois, began varying working conditions to test their effects on productivity.
Perplexed by their findings, the Hawthorne management team invited Elton Mayo, a
professor at the Harvard Business School, and a team of researchers to attempt to make sense
of their findings. Mayo and his colleagues conducted a series of additional studies which led
them to believe that previous researchers had understated the importance of individuals and
informal social networks in generating companies’ productivity levels.
Mayo and his colleagues developed five strategic conclusions from their work:
1. Individual work behavior is determined by a complex set of factors.

2. The informal or primary work group establishes norms, including for production levels.
3. Job-related symbols of prestige and power are key to maintaining the social structure of these
informal groups.
4. To maximize employee happiness and productivity, supervisors need to understand the
unique needs of each individual.
5. Awareness of employee sentiment and employee participation can enhance receptiveness to
workplace changes.
This movement emphasized interpersonal factor in

administering the relationship within the organization. It attracted
social and behavioral scientist. Jacob Moreno developed the
techniques of sociometric analysis that gathers information from
members of the organization through interview and simple
questionnaires. Using the data gathered, they developed a
sociograms which portrayed the dynamics of the informal social
structure of human groups.
A human relations-centric approach to management and business requires a special skill

set on the part of employers and managers. To effectively carry out a human relations-focused
workplace culture, five skills are essential.
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Five Human Relation Skills
While managers must have a vast array of skills, these five, in particular, are essential to
successful human relations.
1. Communication
Open lines of communication are essential to any workplace, but this is especially vital for
leaders practicing human relations management. Effective communication helps ensure that all
employees not only are on the same page, but also feel motivated and valued in their work. This
refers to in-person conversations as well as written communication such as emails and social
media.
2. Conflict Resolution
Managing individuals with differing personality types, worldviews and goals can make universal
agreement incredibly difficult, if not impossible, to achieve. Therefore, you must be comfortable
and well versed in conflict resolution. You will help your team work together in a civil manner –
even if they don't agree with each other on all points – to ensure the work gets done in a timely
manner.
3. Multitasking
Managers face countless tasks, questions and issues to solve on a daily basis. They are
responsible for not only themselves, but the success of their team, which means time spent
checking in with their team and ensuring things are moving smoothly.
4. Negotiation
Strong negotiation skills are key to keeping the peace between two parties while reaching an
agreement where all parties are satisfied. Effective communication techniques such as mirroring
and adapting language to audience can also be useful in negotiations.
5. Organization
Organization is one of the most important human relations skills, as it impacts all other areas of
work. You must keep your physical workspace, as well as your workflow process, highly
organized. This is especially important when you're filing paperwork or employee records,
because everything must be completed correctly and on time. Staying organized is also a key
part of time management and an efficient workflow.
References:

https://www.business.com/articles/human-relations-management-theory-basics/
https://www.oxfordreference.com/view/10.1093/oi/authority.20110803095949990?rskey
=cNiwqP&result=31
https://link.springer.com/referenceworkentry/10.1007%2F978-3-319-31816-5_2998-
1#:~:text=Definition,workers%20as%20essentially%20interchangeable%20parts.
https://en.wikipedia.org/wiki/Human_relations_movement
9
Unit 3: The Organizational Behavior Movement
Overview:
This lesson focuses on the human relations movements.

1. learn about human relations movements;
2. know who is Elton Mayo and his role during human relation movements.
Course Materials:
Discussion:
Similar to some of the management theories we discussed, the foundations of

organizational behavior can be traced back to the Industrial Revolution. While the Industrial
Revolution began to change company management styles in hopes of increasing productivity, it
was also changing the overall culture and behavior of each organization. For the first time,
companies were growing at an alarming rate, forcing them to change their workflow, company
policies, and management styles.
The first management theory that helped establish the foundation for organizational
behavior was Taylor’s Scientific Management Theory. As we discussed earlier, Taylor placed a
huge focus on productivity and worked to establish the most efficient ways to accomplish every
task, big and small. Taylor’s theory impacted each organization’s productivity and it also
changed the professional and personal dynamic of its employees and managers. This classical
approach to management was later challenged by the onset of the human relations
10
management movement which helped to further develop the groundwork organizational
behavior.
While effective for productivity, the scientific management theory was missing a key
component, human relations. In response to the classical management approach, human
relations management theory was born. The Hawthorne Studies were a shining example of how
much human relations and interactions can affect the workforce. A connection was finally made
between productivity and the people responsible for it. The Hawthorne Studies proved that it
was important for companies to take interest in their employees in order to increase productivity
and decrease turnover. Not only did the studies show that individuals performed better when
given attention, it also revealed that group dynamics were equally as important as individual
contentment. It was becoming clear that the individual and group dynamics in an organization
were equally important and directly related to the output of a company. It was through this
revelation that people began to study the behavior of organizations at multiple levels; individual,
group, and whole organization.
Another big impact on the development of organizational behavior was McGregor’s

Theory X & Theory Y. As you read in the last section, the two theories are extremely different.
Theory X states that people are inherently lazy and need to be forced to work. Theory Y on the
other hand, says that people are motivated to work and argues the importance of a team
dynamic. Theory Y is the more effective of the two theories and is a fundamental part of the
foundation for organizational behavior.
While organizational behavior roots can be found in many management theories, it was
not officially recognized as a field of its own until the 1970s. Since the 1970s, organizational
behavior has developed into its own unique field covering a wide variety of topics for individual
and group relations within organizations. This course will help you deep dive into the
interworking of organizational behavior and help you understand how organizational behavior
affects the day-to-day lives of employees in the workplace.
KEY TAKEAWAYS
 Organizational behavior is the study of how people behave within groups.

 Early studies determined the importance of group dynamics in business productivity.
 The study of organizational behavior is a foundation of corporate human resources.
References:

https://study.com/academy/lesson/organizational-behavior-theory-in-
business.html#:~:text=Organizational%20behavior%20theory%20is%20the,they%20do%20in%
20working%20environments.
https://courses.lumenlearning.com/wmopen-organizationalbehavior/chapter/management-
theory-and-organizational-behavior/
https://www.investopedia.com/terms/o/organizational-behavior.asp
11
LESSON 2 MANAGEMENT CONCEPTS AND STRUCTURES
Unit 1: Introduction
Overview
This lesson focuses on the concepts of management.
1. explain the meaning of management as a field of study, team and process;

2. discuss the five (5) features of management;
3. identify why management is a universal and integrative process, dynamic function,
social process, multi-faced disciplined, and intangible force;
4. learn the concept of planning, organizing, staffing, directing, and controlling.
5. determine the top, middle and lower level of management.
Course Materials:
Discussion:
Managing plays a vital role in all level of organization. It concerns with how an
organization works. Management has been defined in numerous ways. According to Haimann,
the term “management” has three (3) aspects:
Management as Science and Art
Management is both an art and a science. It is an art in the sense of possessing of managing
skill by a person. In another sense, management is the science because of developing certain
principles or laws which are applicable in a place where a group of activities are co-ordinated.
Management as Activity
Management is the process of activity relating to the effective utilisation of available resources
for production. The term ‘resources’ includes men, money, materials and machine in the
organisation.
Management as a Discipline
The boundaries of management are not exact as those of any other physical sciences. It may
be increased by the continuous discovery of many more aspects of business enterprise. So, the
management status as a discipline is also increased in the same manner.
Management as a Continuous Process
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The process of management mainly consists of planning, organising, directing and controlling
the resources. The resources (men and money) of an organisation should be used to the best
advantages of the organisation and the objectives to be achieved. The management function of
any one alone cannot produce any results in the absence of any other basic functions of
Management. So, management is a continuous process.
Management as Team
A class may be defined as a group of people having homogenous characteristics to achieve

common objectives. Engineers and doctors are grouped as a class in a society. Each and every
doctor has the same objectives in life. Just like engineers and doctors, the management people
have got similar aspirations to achieve corporate objectives.
Management as a field of study refers to the principles of practices of management. It

includes as a body of knowledge and its application is entirely. Management as a team refers to
the group of managerial personnel in their supervisory capacity. It is hard to identify who are the
managers and what are the activities unless some yardsticks are prescribed. Management as a
process refers to the steps of management. It includes planning, organizing, staffing, directing,
and controlling. It is the process of getting things done with cooperation of others.
Salient Features of Management
Management is a group of activities. It is to coordinate the actions and reactions of

individuals in the organization. It is called as Organizational Activity. Objective and Goal
Formulation refers that the management is has set of objectives and goals to consider the
actions and reactions of individuals in the organization. Management also evaluates the
effectiveness to attain the organization’s objectives and goals.
In Organizational survival, managers are expected to use the available resources

efficiently for the organization to survive in the competitive industry. Action is the backbone of
management and it is important to implement the policies, guidelines, procedures and
programs.
1. Management is a Goal-Oriented Process

Effective management aims to unite efforts of all individuals to achieve organisational goals.
Therefore, it is important that each organisation must have simple, clearly stated and achievable
goals.
Example:
Every business organisation has an aim to earn maximum profits. To achieve this, the
management should conduct market research to find out demand for their product and plan the
production accordingly. The production manager must target to produce goods at minimum
cost, whereas a sales manager must sell goods with a goal to increase the market share.
2. Management is all Pervasive

Management being pervasive means it is felt everywhere and is followed by one and all.
Each and every organisation, be it business or non-business, requires managing of financial
and non-financial activities of the enterprise however the manner in which the activities are
13
managed may differ from enterprise to enterprise and country to country due to differences in
culture, tradition and history.
Example:
A housewife manages her family, a teacher manages his/her class, a principal manages his/her
school, a CEO manages his/her business organisation, and a Prime Minister manages his /her
country. Therefore, management is widespread, required everywhere and for each activity.
3. Management is Multi-Dimensional
Management is not specific to a task or an activity. Management includes managing
work, people and operations of an enterprise so that the organisation achieves its goals. With
the help of management, an enterprise plans the process of getting work done, organises the
means to trans-form inputs into desired output for consumption and controls the people
performing the task.
It includes taking decisions, solving problems, dealing with employees as individuals and
as a group to make their strengths effective and weaknesses irrelevant. Thus, management has
various dimensions and tasks to perform.
Example:
Director of Stayfit For Ever, Mr. Ramkiran has the overall responsibility of placing orders,
meeting customers’ demand, guiding the sales team to achieve their targets, maintaining work
culture in the organisation etc. Thus, he is managing business at various dimensions using
diverse strategies.
4. Management is a Continuous Process

Management is an ongoing and never-ending process. Each activity for its effective
completion needs to be managed until its completion. All managers constantly and
simultaneously perform all functions of management i.e., planning, organising, staffing, directing
and controlling but of course, the degree of importance for each function may differ from time to
time.
Examples:
A sales manager may spend more time planning and staffing during the launch of a new product
but at the same time, he does organise his current orders, direct his sales team and solve
customers’ problems. On the other hand, while doing routine business he may spend more time
on directing and controlling his sales team as compared to planning.
5. Management is a Group Activity

An organisation achieves its goals with the help of diverse individuals working as a
group. To make sure that each individual works towards the common goal it is a must to see
that they work as a team and all individual efforts are well coordinated. Effective management
provides opportunities to individuals to grow and fulfill their aspirations and as a result is able to
get the best out of each individual.
Examples:
14
A sales manager of an enterprise is assisted by sales executives to achieve the sales targets
set by the company owners. The sales manager manages all the executives as a team and at
the same time, he manages each executive to strengthen his/her selling skills.
6. Management is a Dynamic Function

In order to be successful each enterprise has to positively respond to the changes in the
external and internal environment, which may be due to social, economic or political factors.
Thus, the management cannot follow traditional techniques; instead it adapts to the changes
and prepares strategies to achieve the best in the given circumstances.
Example:
A Korean company sells its products to various countries. It cannot follow the same price for
each country due to difference in demands and expectations. Thus, they always have different
plans for different countries to promote sales. Sometimes they formulate different strategies to
meet the changing demands of the same country.
7. Management is an Intangible Force

Management can be felt and experienced but not seen. If a company enables its
employees to meet their targets, keeps its stakeholders satisfied and eventually achieve its
goals effectively, it is said to be efficiently managed. Thus, the effect of management is
noticeable from the manner in which an enterprise functions.
Examples:
Rama Enterprises is running into losses from last two years. It has lost most of its important
customers to its competitors mainly because of the indifferent attitude of its employees.
Employees do not come to office on time, take leave without giving any notice. No action is
taken against employees because the boss Mr. Rohit Kumar himself comes late to office. Thus,
there is too much chaos and indiscipline in the office. The ill management of business is easily
noticeable.
Functions of Management
In 1976, Harold Koontz and Cyril O’Donnell published an essay Management: A
Systems and Contingency Analysis of Managerial Functions. They felt the previous studies
have been effective in describing the functions, but believed the division should be more
detailed. Koontz and O’Donnell believed there to be five key functions of management:
1. Planning
2. Organizing
3. Directing/Leading
4. Controlling
5. Staffing
Planning is a mental efforts which managers anticipate the possible causes and factors
in order to meet work requirements. Managers at the top-level management devote their time in
planning. Planning provides the organization a better sense of what it wants to achieve and how
it can achieve this.
15
The next function of management follows planning and it is about organizing. It’s about
using the plan to bring together the physical, financial and other available resources and use
them to achieve the organizational goal. Directing involves guiding and leading subordinates.
Lastly, controlling is the measurement of actual performance, fixing standards and taking
corrective actions.
Controlling is the establishment of organizational structure, division of activities,

assigning staff to specific jobs, and coordination of authorities and responsibilities. Staffing
includes inventory, appraising, and selecting applicants for a specific jobs.
Levels of Management
Managers are classified in a hierarchy of authority, and perform different tasks. In many
organizations, the number of managers in every level resembles a pyramid. Each level is
explained below in specifications of their different responsibilities and likely job titles.
1. Top Level Management

Managers are responsible for making organization-wide decisions and establishing the plans
and goals that affect the entire organization. They set the strategic goals of the organization and
make decisions on how the overall organization will operate. Senior managers are generally
executive-level professionals, and provide direction to middle management, who directly or
indirectly report to them.
Example: Board of directors, Chief executive officer (CEO) or President, Executive Vice
President, Managing Director, Chief Operating Officer, Chairman of the Board.
Their functions include:

 Implementing and determining the broad policies of the organization.
 Instructions for preparation of department budgets, procedures, schedules.
 Appointment of middle level executives such as department managers.
 Coordination of departments.
 Media and governmental relations.
 Shareholder communication.
16
2. Middle Level Management
Managers communicate the strategic goals of senior management to the front-line managers.
Example: Branch managers, regional managers, department managers and section managers,
department head, project leader, plant manager, or division manager.

 Design and implement effective group and inter-group work and information systems.
 Define and monitor group-level performance indicators.
 Diagnose and resolve problems within and among work groups.
 Design and implement reward systems that support cooperative behavior.
 Make decision and share ideas with top managers.
3. Low Level Management

Managers oversee the work of regular employees (or volunteers, in some voluntary
organizations) and provide direction on their work. The lowest level of management and
manage the work of nonmanagerial individuals who are directly involved with the production or
creation of the organization's products.
Examples: supervisors, front-line team leaders, line managers, office managers, or even
foremen.

 Training for new employees
 Basic supervision
 Motivation
 Performance feedback and guidance
Activities:
Exercises:
1. give at least three (3) features of management and explain its importance in the
organization.
1. Make a role play showing the roles of top level, middle level, and lower level
management in an organization.
References:

https://www.economicsdiscussion.net/management/features-of-management-top-17-features-of-
management/31465
https://www.managementstudyguide.com/management_features.htm
https://courses.lumenlearning.com/boundless-management/chapter/principles-of-
management/#:~:text=Research%20planning%3A%20Planning%20involves%20the,resources
%20to%20achieve%20those%20targets.
https://www.cleverism.com/functions-of-management-planning-organizing-staffing/
http://nraomtr.blogspot.com/2011/12/principles-o-principles-of-management.html
17
LESSON 3 THE FORMS OF BUSINESS ORGANIZATION
Overview
This lesson focuses on the nature and forms of commercial organizations.
1. understand the nature of commercial organizations.

2. enumerate the forms of commercial organization.
Course Materials:
Discussion:
Business organization is the single-most important choice you’ll make regarding your
company. What form your business adopts will affect a multitude of factors, many of which will
decide your company’s future. Aligning your goals to your business organization type is an
important step, so understanding the pros and cons of each type is crucial.
A business entity is an organization that uses economic resources to provide goods or

services to customers in exchange for money or other goods and services. Business
organizations come in different types and in different forms of ownership.
1. Individual or sole proprietorship
2. Partnership
3. Corporation
4. Cooperatives
Sole proprietorship
The vast majority of small businesses start out as sole proprietorships. These businesses are
owned by one person, usually, the individual who has day-to-day responsibility for running the
business. Sole proprietors can be independent contractors, freelancers or home-based
businesses.
Advantage:
 Owner receives all the profits

 Profits are taxed only once
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 Owner makes all decisions and is in complete control of the company (could also be a
disadvantage)
 Easiest and least expensive form of ownership to organize
Disadvantage:
 Unlimited liability if anything happens in the business. Your personal assets are at risk
(including your home in Missouri)
 Limited in raising funds and may have to acquire consumer loans
 No separate legal status
Partnerships
In a Partnership, two or more people share ownership of a single business. Like proprietorships,
the law does not distinguish between the business and its owners. The partners should have a
legal agreement that sets forth how decisions will be made, profits will be shared, disputes will
be resolved, how future partners will be admitted to the partnership, how partners can be bought
out or what steps will be taken to dissolve the partnership when needed
Disclaimer: If you’re establishing a partnership, it is extremely important to make sure everything

is outlined in case things go sour, especially in the case of starting a business with a loved one
or friend. Seek legal advice to create a partnership operating agreement to hash out all
business decision possibilities including succession or exit plans.
Advantage:
 Easy to establish (with the exception of developing a partnership agreement)

 Separate legal status to give liability protection
 Profits taxed only once
 Partners may have complementary skills
Disadvantage:
 Partners are jointly and individually liable for the actions of the other partners
 Profits must be shared with the partners
 Divided decision making
 Business can suffer if the detailed partnership agreement is not in place
Corporations
A corporation is considered by law to be a unique entity, separate from those who own it. A
corporation can be taxed, sued and enter into contractual agreements. The corporation has a
life of its own and does not dissolve when ownership changes.
There are three types of corporations: C-corporation, S-corporation and Limited Liability
Company.
19
C-corporation – is a corporation that is taxed separately from its owners. It gives the owners
limited liability encouraging more risk-taking and potential investment.
Advantage:
 Limited liability
 Transfer of ownership, shareholders can sell their shares
 Capital is easier to raise through the sale of stock
 Company paid fringe benefits
 Tax benefits
Disadvantage:
 Double taxation (corporation and shareholder earnings taxed)

 Can be costly to form
 More administrative duties - required by law to have annual meetings, notify
stockholders of the meeting, must keep minutes of meetings and turn in
 Pay corporate taxes at a different time than other forms of business
S-Corporation – also known as subchapter S-corporation offers limited liability to the owners.
S-corporations do not pay income taxes rather the earnings and profits are treated as
distributions. The shareholders must report their income on their individual income tax returns.
Advantage:
 Limited liability
 Avoids double taxation
 Profits taxed only once
 Capital is easier to raise through the sale of stock
 Transfer of ownership
Disadvantage:

 Stockholders limited to individuals, estates or trustees
 Required administrative duties
 Cannot provide company paid fringe benefits
 Stockholders are limited to citizens or resident aliens of the United States
Limited Liability Company or LLC – is a hybrid business structure that provides the limited
legal liability of a corporation and the operational flexibility of a partnership or sole
proprietorship. However, the formation is more complex and formal than that of a general
partnership.
Advantage:
 Most common business structure and specifically created for small businesses
20
 Must have insurance in case of a suit
 Separate legal entity
 Usually taxed as a sole proprietorship
 Unlimited number of owners
Disadvantage:

 Yearly administrative costs
 Personal tax liability
 Legal and accounting assistance is recommended
Cooperative
A cooperative is a business organization owned by a group of individuals and is operated for

their mutual benefit. The persons making up the group are called members. Cooperatives may
be incorporated or unincorporated.
Example: water and electricity (utility) cooperatives, cooperative banking, credit unions, and
housing cooperatives.
Assessment:
Review Lesson 1-3 and be prepared for a quiz.
References:

https://prezi.com/v9f7buzoiyqd/forms-of-commercial-organizations/
https://www.rifkindpatrick.com/Blog/2015/November/The-4-Major-Business-
Organization-Forms.aspx
https://www.accountingverse.com/accounting-basics/types-of-businesses.html
https://www.kcsourcelink.com/guides/start-a-business/register-and-license-your-
business/forms-of-business-organization
21
LESSON 4 COMMUNICATION
Unit 1: Introduction and Importance
Overview
This lesson focuses on the basic concepts of communication.

1. learn the importance of communication in an organization.
Course Materials:
Discussion:
Effective communication is important in an organization. It builds cooperation,

understanding, and unity to all the people. It also avoid conflict and misunderstanding.
According to Alvin Dodd, the president of American Management Association, “The number one
problem of management today is communication.”
According to Keith Davis, “Communication is a process of passing information and

understanding from one person to another person.”
Communication is a dynamic and social process. Communication can be expressed

through oral, written and gestures. It should be performed in all level of management. Proper
usage of communication ensures proper planning and is a key for a wise decision. Aside from it
keep employees well-informed, it helps to motivate people and boost their morale. It is the
reason why a good communication is the foundation for sound management.
Verbal Communication
It is a type of communication wherein the message is transmitted through the spoken

words. Here the sender gives words to his feelings, thoughts, ideas and opinions and expresses
them in the form of speeches, discussions, presentations, and conversations.
The effectiveness of the verbal communication depends on the tone of the speaker,
clarity of speech, volume, speed, body language and the quality of words used in the
conversation. In the case of the verbal communication, the feedback is immediate since there
are a simultaneous transmission and receipt of the message by the sender and receiver
respectively.
Non-Verbal Communication
22
It is the process of conveying meaning without the use of words either written or spoken.
In other words, any communication made between two or more persons through the use of
facial expressions, hand movements, body language, postures, and gestures is called as non-
verbal communication.
Unlike the verbal communication, helps in establishing and maintaining the interpersonal
relationships while the verbal only help in communicating the external events. People use non-
verbal to express emotions and interpersonal attitudes, conduct rituals such as greetings and
bring forward one’s personality.
Types of Communication Network
1. Vertical Network
The communication which passes from one person or process to another person or
process in a vertical pattern is called Vertical Network. It can happen either in the top to bottom
or bottom to top format. This communication provides an immediate response as the receiver
receives the information faster than any other network. We can call this network as a formal
network. The best example is the communication between top level and bottom level
employees. Miscommunication does not happen in this network as this is a type of direct
communication.
2. Chain Network
23
This network is in a hierarchical level and follows a series of commands. Here bottom to
top communication does not happen. Superiors ordering the subordinates is the best example
of this type of network. Also, the leader leading the group of people is an example of Chain
Network. The message has to reach from top-level to bottom level without any alteration of
meaning or words. Care should be taken to avoid the same. This network is not fast and few
people who don’t understand the message will remain in the loop.
3. Circuit Network
When the communication between two people happens simultaneously in a circuit is

called Circuit Network. Though it works like Vertical Network, there are no superiors or
subordinates or at least not considered like them. Here the communication is a two-way
communication. The messaging or information reception is continuous and the people involved
can be at the same hierarchical level.
24
4. Wheel or Spoke Network
The commands or information is from a single superior and subordinates form a wheel in
the network. The entire network is highly centralized format and expects immediate feedback
once the message is given to the receiver. And due to this, we can call this communication as a
type of micromanagement. This network is an improved form of Chain Network. Since the
information is received directly from the central authority, there is no chance of
miscommunication and the communication is very powerful. Startups mostly use this type of
network.
5. Star Network
Several people are involved in this network and the process forms a star shape. This
network enables people to communicate with each other or with people who are involved in the
same process. This network can be considered as a development of a wheel network with no
central person to control the way of communication. All are free to communicate with each
25
other. No restrictions are present to block the communication between people in the process.
Teamwork is built using this communication. A WhatsApp group which is related to work is a
good example of Star Network.
References:

https://cdn.educba.com/academy/wp-content/uploads/2019/12/communication-network.png
https://www.educba.com/types-of-communication-network/
Unit 2: Communication Process and Network
Overview
This lesson focuses on communication process and the type of communication

networks.

1. apply effective communication process;
2. identify the network types of communication.
Course Materials:
Discussion:
Communication Process
Parts of the Communication Process
The communication process has several components that enable the transmission of a
message. Here are the various parts:
26
 Sender: This is the person that is delivering a message to a recipient.
 Message: This refers to the information that the sender is relaying to the receiver.
 Channel of communication: This is the transmission or method of delivering the
message.
 Decoding: This is the interpretation of the message. Decoding is performed by the
receiver.
 Receiver: The receiver is the person who is getting or receiving the message.
 Feedback: In some instances, the receiver might have feedback or a response for the
sender. This starts an interaction.
How does the communication process work?
In order to successfully communicate, it's important to understand how the process

works. Here are the seven steps in the communication process:
1. The sender develops an idea to be sent
The beginning of the communication process involves the sender creating an idea that
they plan to send to another person or group of people. Essentially, they're planning the overall
subject matter or information they want to transmit.
2. The sender encodes the message
Once the sender develops an idea, they translate it into a form that can be transmitted to
someone else. This means they transform the thoughts of the information they want to send into
a certain format. For example, if you are writing a letter, you'll translate your idea into words.
The message can also be nonverbal, oral or symbolic.
3. The sender selects the channel of communication that will be used
Next, the sender decides how the message will be sent. This involves selecting the most
suitable medium for the message they're relaying. Some communication mediums include
speaking, writing, electronic transmission or nonverbal communication. If you're communicating
at work, make sure to select the proper and most professional channel of communication.
4. The message travels over the channel of communication
After the medium is chosen, the message then begins the process of transmission. The
exact process of this will depend on the selected medium. In order for the message to be
properly sent, the sender should have selected the appropriate medium.
5. The message is received by the receiver
Next, the message is received by the recipient. This step in the communication process
is done by hearing the message, seeing it, feeling it or another form of reception.
27
6. The receiver decodes the message
The receiver then decodes the sender's message. In other words, they interpret it and
convert it into a thought. After they've done this, they analyze the message and attempt to
understand it. The communication process is performed effectively when the sender and
receiver have the same meaning for the transmitted message.
7. The receiver provides feedback (if applicable)
Lastly, unless it's a one-way communication, the receiver will provide feedback in the
form of a reply to the original sender of the message. Feedback provides the recipient with the
ability to ensure the sender that their message was properly received and interpreted. Between
two people, this is two-way communication.
Types of Feedback
Kevin Eujeberry, the world famous leadership exponent mentioned the four types of
feedback.
1. Negative Feedback or corrective comments about past behavior

2. Positive Feedback or affirming comments about future behavior
3. Negative feedforward or corrective comments about future behavior
4. Positive feedforward or affirming comments about future behavior
References:

https://study.com/academy/lesson/what-is-the-communication-process-definition-steps.html
https://www.tutorialspoint.com/effective_communication/effective_communication_process.htm
Unit 3: Barriers and Strategies to Effective Communication
Overview
This lesson focuses on the barriers that affects communication and the strategies to make an
effective communication in an organization.

1. identify the barriers that affects communication in the organization;
2. apply the strategies to an effective communication.
Course Materials:
People communicate every day. Communication through conversation, expressions and

body language, social media, email, telephone, etc. If the message hasn’t communicated
28
effectively, it will lead to misunderstanding. The barriers to effective communications are status,
semantic, language, or mechanical barriers. It can also be affected by emotion and
environment.
Barriers to Effective Communication
 Lack of Listening Skills

The efficiency of communication process gets disturbed when the receiver listens only
with ears but do not apply his mind. Often, the receiver listens what he wants to listen
and give no attention to other aspects of the information, thereby acting as a hindrance
to the effective communication.
 Selective Attention
This problem arises when the person is impatient and put his objective above all. He
gives ears to only that part of the information which is helpful for him and fulfills his
objective and ignores all the other aspects.
 Lack of knowledge
The communication process suffers if the sender and receiver have less knowledge
about the subject matter.
 Lack of vocabulary
The communication problem arises when the sender uses some words which are difficult
for the receiver to comprehend correctly.
In order to prevent misunderstanding and putting an organization at risk, there are

strategies that can be used. It is necessary to know the target audience and message should be
clear to be easily understand. Medium for communication can also be used and also the
attitude. An effective communication should have one actively listening. It enables the receiver
to understand the message clear and concise.
Strategies to Effective Communication
 Simplify your message

In order to ensure your message is properly understood, you should keep your language
simple and to the point.
 Know your audience

It's also important to consider the audience that will receive your message as well as
their needs and interests.
 Be a good listener
As a communicator, it's important to actively listen to what those around you are saying.
This will ensure that you're sending the right message.
 Ask questions
It's also important to ask good questions to keep the communication flowing. Make sure
your questions are insightful and engaging.
 Take the time to respond

29
When communicating, it's important to consider how you might reply to a person to
ensure you know what you want to say.
 Consider your body language

If you're communicating through a different medium, it's important to be mindful of your
body language. In addition, be aware of the body language of the person you're
communicating with, as well.
 Maintain eye contact

It's also important to make contact with the person or group you're communicating with.
This will show that you're actively listening to who you're communicating with.
 Clarify your message if needed

If the recipient of your message is unclear about what you're trying to say, it's important
to clarify your message. This will help them to better understand you.
Assignment:
Write an essay on what motivates you to study?
References:

https://www.indeed.com/career-advice/career-development/communication-
process#:~:text=The%20communication%20process%20refers%20to,the%20decoding%20of%
20the%20message.
https://businessjargons.com/personal-barriers.html
30
LESSON 5 MOTIVATION
Unit 1: Concepts of Motivation
Overview
This lesson focuses on the importance of motivation within the organization.

1. define motivation;
2. explain the importance of motivation in organization.
Course Materials:
Discussion:
Motivation serves as a guiding force for all human behavior. It is a force that initiates or
provide reason a man to do work. It also guides and maintains goal-oriented behaviors.
Motivation comes from the word “motive” which means need, desire, want or drive.
According to William G. Scott, “the process of stimulating people to act to accomplish

desired goals.” However, Robbins and Coulter stated that motivation “the willingness to exert
high levels of effort to reach organizational goals, conditioned by the efforts ability to satisfy
some individual needs.”
Human Needs
Human needs are things all humans require for normal growth and development. These
needs have been studied by psychologists and categorized in a number of ways. Henry A.
Murray, one of the founders of personality psychology who was active in developing a theory of
motivation, identified a list of core psychological needs in 1938. He described these needs as
being either primary (based on biological needs, such as the need for food) or secondary
(generally psychological, such as the need for independence). Murray believed the interplay of
these needs produce distinct personality types and are internal influences on behavior.
Murray’s research underpins the work of psychologist Abraham Maslow who also
studied human needs, motivation, and personality. While working with monkeys during his early
years of research, he noticed that some needs take precedence over others. For example, thirst
is relieved before hunger because the need for water is a stronger need than the need for food.
In 1954, Maslow published what has become known as Maslow’s Hierarchy of Needs which
remains valid today for understanding human motivation. According to Maslow, human needs
go beyond the obvious physical needs of food and shelter to include psychological needs,
safety and security, love and belongingness, self-esteem, and self-actualization to achieve
one’s goals.
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Human needs are satisfied in order of importance. Once a need is satisfied, humans
work to satisfy the next level of need. Need satisfaction is an ongoing behavior that determines
everyday actions. Each of us is acting from a different level of need. This is why it is not wise to
judge others and prescribe to others a plan of action that works for us, as it may not be practical
for the other person’s life.
Examples:
1. A person who is starving and struggling to have a roof over his head cannot appreciate
spiritual knowledge. His stomach needs to be filled first.
2. A person who never received much love from others throughout his life may crave to be
loved so much that he or she may be willing to take an action that may be judged as
immoral by some who are not operating out of that need.
3. People who are driven by the self-actualization need may not be driven as much by the
need to advance materially, which may not be understood by others who are not at the
same level in the hierarchy of needs.
Assignment:
Research: What is Maslow’s Hierarchy of Needs?
References:
Unit 2: Maslow’s Hierarchy of Needs
Overview
This lesson focuses on Maslow’s Hierarchy of Needs.

1. learn Maslow’s Hierarchy Need.
Course Materials:
Discussion:
Abraham Maslow was an American psychologist who was best known for creating
Maslow's hierarchy of needs. It is a theory of psychological health predicated on fulfilling innate
human needs which grouped into: deficiency needs and growth needs.
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a. Physiological
These are biological needs. They consist of the need for air, food, water, and
maintenance of the human body. If a student is unwell, then little else matters. Unless the
biological needs are met, a person cannot concentrate fully on learning, self-expression, or any
other tasks. Instructors should monitor their students to make sure that their basic physical
needs have been met. A hungry or tired student may not be able to perform as expected.
b. Safety or security
Once the physiological needs are met, the need for security becomes active. All humans
have a need to feel safe. Security needs are about keeping oneself from harm. If a student does
not feel safe, he or she cannot concentrate on learning. The aviation instructor who stresses
flight safety during training mitigates feelings of insecurity.
c. Belongingness and Love

When individuals are physically comfortable and do not feel threatened, they seek to
satisfy their social needs of belonging. Maslow states that people seek to overcome feelings of
loneliness and alienation. This involves both giving and receiving love, affection, and the sense
of belonging. For example, aviation students are usually out of their normal surroundings during
training, and their need for association and belonging is more pronounced. Instructors should
make every effort to help new students feel at ease and to reinforce their decision to pursue a
career or hobby in aviation.
d. Esteem
When the first three classes of needs are satisfied, the need for esteem can become
dominant. Humans have a need for a stable, firmly based, high level of self-respect and respect
from others. Esteem is about feeling good about one’s self. Humans get esteem in two ways:
internally or externally. Internally, a person judges himself or herself worthy by personally
defined standards. High self-esteem results in self-confidence, independence, achievement,
competence, and knowledge.
These are split into two types of needs:
1. Lower self-esteem needs are the need for:
 Respect of others
 Status
 Recognition
 Fame
 Prestige
 Attention
2. Higher self-esteem needs are the need for:
 Self-respect
 Strength
 Competence
 Mastery
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 Self-confidence
 Independence
 Freedom.
 Anxieties and fears
Most people, however, seek external esteem through social approval and esteem from
other people, judging themselves by what others think of them. External self-esteem relates to
one’s reputation, such as status, recognition, appreciation, and respect of associates. When
esteem needs are satisfied, a person feels self-confident and valuable as a person in the world.
When these needs are frustrated, the person feels inferior, weak, helpless, and worthless.
Esteem needs not only have a strong influence on the instructor-student relationship, but also
may be the main reason for a student’s interest in aviation training.
e. Cognitive
In later years, Maslow added cognitive and aesthetic needs to the pyramid. Cognitive is
the need to know and understand. He realized humans have a deep need to understand what is
going on around them. If a person understands what is going on, he or she can either control
the situation or make informed choices about what steps might be taken next. The brain even
reinforces this need by giving humans a rush of dopamine whenever something is learned,
which accounts for that satisfying “eureka!” moment. For example, a flight student usually
experiences a major “eureka!” moment upon completing the first solo flight.
f. Aesthetic
Aesthetic needs connect directly with human emotions, which makes it a subtle factor in
the domain of persuasion. When someone likes another person, a house, a painting, or a song,
the reasons are not examined—he or she simply likes it. This need can factor into the student-
instructor relationship. If an instructor does not “like” a student, this subtle feeling may affect the
instructor’s ability to teach that student.
g. Self-Actualization
When all of the foregoing needs are satisfied, then and only then are the needs for self-
actualization activated. Maslow describes self-actualization as a person’s need to be and do
that which the person was “born to do.” To paraphrase an old Army recruiting slogan, self-
actualization is to “be all you can be.” Fulfillment of needs can be a powerful motivation in
complex learning situations.
Self-actualized people are characterized by:

 Being problem-focused.
 Incorporating an ongoing freshness of appreciation of life.
 A concern about personal growth.
 The ability to have peak experiences.
There are many motivations behind the need for self-actualization. From a high level
they can be categorized as any need for knowledge, beauty, and creativity. Some of these are
the need for:
 Wholeness (unity)
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 Perfection (balance and harmony)
 Completion (ending)
 Justice (fairness)
 Richness (complexity)
 Simplicity ( essence)
 Liveliness (spontaneity)
 Beauty (rightness of form)
 Goodness (benevolence)
 Uniqueness (individuality)
 Playfulness (ease)
 Truth (reality)
 Autonomy (self-sufficiency)
 Meaningfulness (values)
Do all people get to the level of self-actualization needs?

The important thing to note is that not all people that satisfy their basic needs
automatically become driven by this self-actualization need. Many people who are wealthy are
stuck at the lower levels trying to acquire more money, more power, more fame instead of the
need to reach the full potential of their being. Other reasons people may not come into this level
are:
 Poor childhood
 Lower economic conditions
 Inadequate education
h. Self-Transcendence
“Transcendence refers to the very highest and most inclusive or holistic levels of human
consciousness, behaving and relating, as ends rather than means, to oneself, to significant
others, to human beings in general, to other species, to nature, and to the cosmos” (Maslow,
1971, p. 269)
According to Maslow, self-transcendence brings the individual what he termed “peak

experiences” in which they transcend their own personal concerns and see from a higher
perspective. These experiences often bring strong positive emotions like joy, peace, and a well-
developed sense of awareness (Messerly, 2017). Someone who is highly self-transcendent may
also experience “plateau experiences” in which they consistently maintain or enter a state of
serenity and higher perspective (Messerly, 2017).
Assignment:
Research: What are the different motivational models?
References:

https://www.simplypsychology.org/maslow.html
https://joannewellington.com/2011/04/17/according-to-maslow-human-beings-have-different-
types-of-needs/
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Unit 3: Motivational Models
Overview
This lesson focuses on the different Motivational Models.

1. identify the different motivational model used in the organization;
2. explain each model and differentiate it to other models.
Course Materials:
Frederick Herzberg is regarded as one of the great original thinkers in management and
motivational theory. Herzberg set out to determine the effect of attitude on motivation, by simply
asking people to describe the times when they felt really good, and really bad, about their jobs.
 Intrinsic Motivators – are direct motivation to perform the work because the act of
working or performance is rewarding.
 Extrinsic Motivators – are motivation takes place after work or away from work. It
provides no direct satisfaction and employees enjoys it after they stop working. These
are retirement plan, health insurance, and vacations.
What is Two Factor Theory?
Herzberg’s Theory of Motivation is also known as Herzberg's motivation-hygiene theory

and dual-factor theory. It tries to get to the root of motivation in the workplace. You can leverage
this theory to help you get the best performance from your team. Herzberg claims these factors
function on the same plane. In other words, satisfaction and dissatisfaction aren’t polar
opposites. Taking away an employee’s dissatisfaction – for example by offering a higher salary
– doesn’t necessarily mean the employee will then be satisfied. The employee is just no longer
dissatisfied.
According to Herzberg, the factors leading to job satisfaction are "separate and distinct
from those that lead to job dissatisfaction." Therefore, if you set about eliminating dissatisfying
job factors, you may create peace but not necessarily enhance performance. This placates your
workforce instead of actually motivating them to improve performance.
The two factors identified by Herzberg are motivators and hygiene factors.
1. Motivating Factors
The presence of motivators causes employees to work harder. They are found within the
actual job itself. The motivational factors yield positive satisfaction. These factors are inherent to
work. These factors motivate the employees for a superior performance. These factors are
called satisfiers. These are factors involved in performing the job. Employees find these factors
36
intrinsically rewarding. The motivators symbolized the psychological needs that were perceived
as an additional benefit. Motivational factors include:
 Achievement
A job must give an employee a sense of achievement. This will provide a proud feeling of
having done something difficult but worthwhile.
 Recognition
A job must provide an employee with praise and recognition of their successes. This
recognition should come from both their superiors and their peers.
 The work itself

The job itself must be interesting, varied, and provide enough of a challenge to keep
employees motivated.
 Responsibility
Employees should “own” their work. They should hold themselves responsible for this
completion and not feel as though they are being micromanaged.
 Advancement
Promotion opportunities should exist for the employee.
 Growth
The job should give employees the opportunity to learn new skills. This can happen either
on the job or through more formal training.
2. Hygiene Factors (Intrinsic Motivators)

The absence of hygiene factors will cause employees to work less hard. Hygiene factors
are not present in the actual job itself but surround the job. The impact of motivating and
hygiene factors is summarized in the following diagram. Note that you will often see motivators
referred to as factors for satisfaction, and hygiene factors referred to as factors for
dissatisfaction.
 Pay
The pay or salary structure should be appropriate and reasonable. It must be equal and
competitive to those in the same industry in the same domain.
 Company and Administrative Policies

The company policies should not be too rigid. They should be fair and clear. It should
include flexible working hours, dress code, breaks, vacation, etc.
 Fringe benefits
The employees should be offered health care plans, benefits for the family members,
employee help programs, etc.
 Working conditions
The working conditions should be safe, clean and hygienic. The work equipment should be
updated and well-maintained.
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 Status
The employees’ status within the organization should be familiar and retained.
 Interpersonal relations
The relationship of the employees with his peers, superiors and subordinates should be
appropriate and acceptable. There should be no conflict or humiliation element present.
 Job Security
The organization must provide job security to the employees.
The Four Different States Exist at Work:

In a general sense, there are four states an organization or team can find themselves in
when it comes to Two Factor Theory.
1. High Hygiene and High Motivation – this is the ideal situation and the one which every
manager should strive for. Here, all employees are motivated and have very few grievances.
2. High Hygiene and Low Motivation – employees have few grievances but they are not
highly motivated. An example of this situation is where pay and working conditions are
competitive but the work isn’t very interesting. Employees are simply there to collect their salary.
3. Low Hygiene and High Motivation – employees are highly motivated but they have a lot of
grievances. A typical example of this situation is where the work is exciting and really interesting
but the pay and conditions are behind competitors in the same industry.
4. Low Hygiene and Low Motivation – this is obviously a bad situation for an organization or
team to find itself in. Here, employees aren’t motivated and the hygiene factors are not up to
scratch.
Vroom’s Motivational Model

This motivational model assumes that behavior results from conscious choices among
alternatives whose purpose it is to maximize pleasure and minimize pain. Together with Edward
Lawler and Lyman Porter, Victor Vroom suggested that the relationship between people's
behavior at work and their goals was not as simple as was first imagined by other scientists.
Vroom realized that an employee's performance is based on individual factors such as
personality, skills, knowledge, experience and abilities. The theory suggests that although
individuals may have different sets of goals, they can be motivated if they believe that:
 There is a positive correlation between efforts and performance,

 Favorable performance will result in a desirable reward,
 The reward will satisfy an important need,
 The desire to satisfy the need is strong enough to make the effort worthwhile.
Vroom suggests that an employee's beliefs about Expectancy, Instrumentality, and

Valence interact psychologically to create a motivational force such that the employee acts in
ways that bring pleasure and avoid pain.
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Valence
It refers to the emotional orientations people hold with respect to outcomes [rewards]. The depth
of the want of an employee for extrinsic (money, promotion, time-off, benefits) or intrinsic
(satisfaction) rewards. Management must discover what employee value.
Expectancy
Employees have different expectations and levels of confidence about what they are capable of
doing. Management must discover what resources, training, or supervision employees need.
Instrumentality
The perception of employees as to whether they will actually get what they desire even if it has
been promised by a manager. Management must ensure that promises of rewards are fulfilled
and that employees are aware of that.
Thematic Apperception Test (TAT)

It is used to assess employee one by one in order to deem their worthiness for a certain
job. The sectors that require their job prospects to be evaluated with TAT usually demand
dealing with people and ability to cope with psychological stress on a day-to-day basis. For
example: law enforcement, medical field, military, diplomatic service, and so on.
In Tata Steel several initiatives have been taken to further improve the motivation
levels and participation in the decision making process of the officers, greater impetus to
training through a formalised system of a personal development programme, talent review and
job rotation systems, compensation linked to the performance management system, formal
rewards and recognition systems, knowledge management systems linked with appraisals,
leadership opportunities in quality circles, continuous improvement and value engineering
programmes and an extremely transparent and credible multi-path communication system to
address queries and concerns of all employees through various dialogues both formal and
online, with such tools as video conferencing, ‘MD Online’, special dialogues with senior
management, meetings, conferences and seminars.
These initiatives have helped to build a homogeneous and focused team in Tata Steel,
increasing motivation and binding to the vision of the company and spurred employees to
deliver targets on a participatory management basis leading to ownership of processes. Tata
Steel is a company that actively promotes freedom to work, freedom to innovate and even the
freedom to fail. It is a nimble, fast, modern and forward-looking company on a strong growth
path.
The company has undergone a revolutionary change in terms of its production

facilities and the technology in the manufacturing process. These changes have resulted in
creating greater opportunities for taking up newer challenges for young recruits work and for
performance based on IT enabled systems and high levels of automation. These have led to
making the company one of the lowest cost producers of steel and the only Indian company to
be recognised by the World Steel Dynamics as one of the top most ‘World Class’ steel makers.
Tata Steel hopes not only to consolidate but better its leadership by robust leadership
development systems that have seen the company create many CEOs for other companies.
39
References:

Management and Motivation, Vroom, V.H., Deci, E.L., Penguin 1983 (first published 1970)
https://en.wikipedia.org/wiki/Two-factor_theory
https://www.mindtools.com/pages/article/herzberg-motivators-hygiene-factors.htm
https://expertprogrammanagement.com/2018/04/herzbergs-two-factor-theory/
https://www.toolshero.com/psychology/two-factor-theory-herzberg/
https://en.wikipedia.org/wiki/Expectancy_theory
https://www.toolshero.com/psychology/vrooms-expectancy-theory/
40
LESSON 6 LEADERSHIP
Unit 1: Different Styles of Leadership
Overview
This lesson focuses on the importance of leadership and its different style.

1. identify the different style of leadership;
Course Materials:
Discussion:
Leadership is the art of guiding, and motivating people toward a common goal. It is
directing people in the organization to achieve its objectives. According to Anthony D’ Souza, an
individual must have clear and specific goals, establish plans, take personal responsibility and
face setbacks in order to achieve what they want.
According to Edwin Ghiselli, a leader should have the following personal characteristics:
intelligence, initiative, supervisory ability, self-assurance, affinity for workers, decisiveness,
masculinity/femininity, and maturity. Also he emphasizes that a leader should also has
motivational traits such as power, job security, high monetary reward, achievement needs, and
self-actualization.
There are 4 commonly style of leadership, namely: Authoritarian, Democratic, Laissez-

faire, and Paternalistic.
a. Authoritarian Style of Leadership
This leadership relies on authority and power. This style of leadership accepts the
Theory X model of McGregor. The leader decides on its own, wants order to be followed, and
structures all work to his constituents. Fear drives employees to do work. It exercise one-way of
communication (from top to bottom). However, the decision is easy since this avoid delays. This
style of leadership also doesn’t need skilled workers because all the works are structured.
This style is used when leaders tell their employees what they want done and how they
want it accomplished, without getting the advice of their followers. Some of the appropriate
conditions to use this style is when you have all the information to solve the problem, you are
short on time, and/or your employees are well motivated.
Some people tend to think of this style as a vehicle for yelling, using demeaning
language, and leading by threats. This is not the authoritarian style, rather it is an abusive,
41
unprofessional style called “bossing people around.” It has absolutely no place in a leader's
repertoire.
b. Democratic Style of Leadership (Participative)
This leadership is the opposite of Authoritarian. Employees have the freedom to express
their opinion or suggestions for the improvement of the organization. Employees are encourage
to participate in decision-making and there’s a two-way communication. It reduces dissatisfied
employees which results to less absenteeism and turnover. Leader inspires and motivates
employees for the progress of the organization. Since it requires everyone to participate,
decision making took a lot of time. Democratic leaders tend to make followers feel like they are
an important part of the team, which helps foster commitment to the goals of the group.
Advantages:
 It increases employee motivation and job satisfaction.

 It encourages use of employee creativity.
 A participative leadership style helps in the creation of a strong team.
 High level of productivity can be achieved.
Disadvantages:
 Decision-making processes become time-consuming.

 Leaders have a high probability of being apologetic to employees.
 Communication failures can sometimes happen.
 Security issues can arise because of transparency in information sharing.
 Poor decisions can be made if the employees are unskilled.
c. Laissez-faire Style of Leadership (Delegative)
This leadership allows limited scale of authority and giving a wide freedom for the
employee to do their job based on their own plan, procedure and guidelines. The role of the
leader is to facilitate his subordinates. This style of leadership is applicable for organization that
has skilled and competent employees. It provides a good training ground for future leaders.
This style involves the leader including one or more employees in the decision making
process (determining what to do and how to do it). However, the leader maintains the final
decision making authority. Using this style is not a sign of weakness, rather it is a sign of
strength that your employees will respect.
This is normally used when you have part of the information, and your employees have
other parts. A leader is not expected to know everything—this is why you employ
knowledgeable and skilled people. Using this style is of mutual benefit as it allows them to
become part of the team and allows you to make better decisions.
d. Paternalistic Style of Leadership
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This style of leadership considers the interest and welfare of employees. It is like how a
father look after his siblings. However, it is also work-centered and is known as “Personalized
Leadership” since it authoritarian by nature. The leader maintain a personal contact with
employees and encourage them to work harder and better. The organization with this leadership
is like a family who treats each member carefully. Authority is used by leader and subordinates
remain submissive, loyal, and faithful. It usually exists in Japanese-owned business.
e. Situational Leadership
It stress the significant influence of the environment and the situation on leadership.
Hersey and Blanchard's leadership styles is one of the best-known situational theories. First
published in 1969, this model describes four primary styles of leadership, including:
 Telling: Telling people what to do

 Selling: Convincing followers to buy into their ideas and messages
 Participating: Allowing group members to take a more active role in the decision-making
process
 Delegating: Taking a hands-off approach to leadership and allowing group members to
make the majority of decisions
Later, Blanchard expanded upon the original Hersey and Blanchard model to emphasize
how the developmental and skill level of learners influences the style that should be used by
leaders. Blanchard's SLII leadership styles model also described four different leading styles.
 Directing: Giving orders and expecting obedience, but offering little guidance and
assistance
 Coaching: Giving lots of orders, but also lots of support
 Supporting: Offering plenty of help, but very little direction
 Delegating: Offering little direction or support
A good leader uses different styles of leadership, depending on what forces are involved
between the followers, the leader, and the situation. Some examples include:
 Using an authoritarian style on a new employee who is just learning the job. The leader
is competent and a good coach. The employee is motivated to learn a new skill. The
situation is a new environment for the employee.
 Using a participative style with a team of workers who know their jobs. The leader knows
the problem, but does not have all the information. The employees know their jobs and
want to become part of the team.
 Using a laissez-faire style with a worker who knows more about the job than you do. You
cannot do and know everything and the employee needs to take ownership of her job! In
addition, this allows you to be more productive.
 Using all styles: Telling your employees that a procedure is not working correctly and a
new one must be established (authoritarian). Asking for their ideas and input on creating
a new procedure (participative). Delegating tasks in order to implement the new
procedure.
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According to Maxwell, “Leadership is influence”. There are many different kinds of
leaders, therefore there are no ‘set’ qualities that have to be present in all leaders. Rather an
effective leader draws from a range of personal qualities to help them deal with different
circumstances and challenges.
 Courage: Does not hide from challenging or scary situations; speaks up for what is right
even if there is opposition.
 Creativity: Thinks of many different ways to solve challenges.
 Loyalty: Stays true to friends and family or team members through difficult times.
 Honesty: Speaks truthfully; acts sincerely; takes responsibility for own feelings and
actions.
 Self-regulation: Controls emotions and sticks to decisions; is disciplined.
 Forgiveness: Accepts shortcomings of others without anger; gives people a second
chance.
 Compassion: Thinks of how others are feeling.
 Intelligence: Learns quickly and thinks of good solutions; has a love of learning.
 Determination: Focuses on goals and works hard to achieve them.
 Enthusiasm: Has lots of energy and excitement for life.
 Humour: Sees the lighter side of life and helps people laugh.
 Fairness: Treats people fairly and advocates for their rights; doesn’t let personal feelings
bias decisions.
 Generosity: Gives freely of time and possessions; demonstrates kindness.
References:

https://www.verywellmind.com/leadership-styles-2795312
http://www.nwlink.com/~donclark/leader/leadstl.html
https://www.americanexpress.com/en-us/business/trends-and-insights/articles/the-7-most-
common-leadership-styles-and-how-to-find-your-own/
https://www.imd.org/hpl/leadership-reflections/leadership-styles/
Unit 2: Roles of Leaders in Organization
Overview
This lesson focuses of organizational culture in the organization.

1. define Organizational Culture;
2. learn the importance of organizational culture in the organization;
3. identify the cultural characteristics in the organization;
3. name the factors to be consider in communicating the cultures to a new employee;
4. appreciate the culture in an organization.
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Course Materials:
Discussion:
Leadership cultivates the foundation of culture to empower employees to achieve the

company mission and realize how vital each of their contributions is to furthering those goals.
According to (Kotter, 1990) Leadership is always about coping with change. Every organization
needs a leader to commit to a challenge, to foster followers and to be a powerful influence for
them to translate that into productivity by sharing a certain vision of future.
Leaders pay attention to, measure, and control on a regular basis. Evaluating the
different option for given problem. Makes employees get the message in the best way. Supports
at any time to the work to be performed. Leaders reacts to critical incidents and organizational
crises. Leaders should speaks much about the organizations values, norms, and culture.
Leaders recruit, select, promote, and communicate. Founders and leaders should
establish culture base in the organization by hiring and advancing those they perceive. Having
the values they want and eliminating those they consider as having undesirable value base.
Leaders deliberate role modeling, teaching, and coaching. Personal examples of a

leader can send very important and powerful messages to the members of an organization,
particularly if such actions are ethical and consistent.
Leaders allocate resources, rewards, and status. The manner the leader allocates
organizational resources through the organizations budget, also reveals the leaders
assumptions and beliefs. It’s a cycle beginning with leadership style and ending with employees
emulating your behavior and beliefs. The pull to follow along with a leader’s designated path is
stronger than one might think. Here are five ways your leaders may be impacting your
organizational culture.
1. Spread motivations
To make the best out of leadership, get to know the staff. Leaders should open up two-
way communication, and find out employees’ motivations. Listening to and integrating the
beliefs and motivations of the team will make employees feel valued. A positive organizational
culture begins with satisfied employees.
2. Strong vision
The foundation of any organizations is established on the vision of leaders. These
individuals craft it, share it and watch it come to life. An effective leader shares values and views
on work with staff members to act as a compass to follow. Providing awareness allows staff to
work as a team to act out organizational strategies. It also reassures that employees’ actions
are for the good of the organization.
3. Coaching
Leaders are coaches. And like with any team, employees expect leaders to give them
the winning plays. This means more than just having vision. It involves developing a framework
45
that outlines goals, strategy and details necessary to push organization forward. These details
may include organization’s view on quality work, what makes a healthy work environment,
company policies and rules. But it’s not enough to just state these things. Leaders should lead
by example.
4. Responsibility
Employees always need to know what is expected of them in order to properly
communicate the organization’s purpose. Employees must know expected levels of productivity,
the channels to conduct business as well as the proper image to maintain. It all begins with
communication. Detailed descriptions, readily available manuals and policies play a huge role.
Providing documents through an intranet can assist leaders by both compiling necessary forms
into one location and also with tracking. Mandatory reads ensure staff acknowledges receipt of
required information.
When discrepancies or issues arise, it is up to the leader to return order to the

organization. Not only should leaders hold the staff accountable, but they also hold themselves
accountable. A large part of that is the ability to admit mistakes and failures. Transparency will
earn the respect of the staff cultivate two-way trust in the organizational culture.
5. Morale
Develop a culture of encouragement. Let your employees know they are doing a good
job. Acknowledge mistakes but also give guidance on how they may improve. Do not forget that
leaders are the foundation. If they are not held responsible for the morale of their staff, then the
culture of their organization can fall apart around them. Culture is not about other people’s
behavior. It really begins with a leader model: one that employees will want to emulate.
References:
https://www.youtube.com/watch?v=HjKIHYRi5FA
https://www.youtube.com/watch?v=9Oo1uK45fRk
https://www.youtube.com/watch?v=MZcGj-eMH5o
https://www.linkedin.com/pulse/role-leadership-shaping-organizational-culture-momen/
Unit 3: Conflict Management
Overview
This lesson focuses of organizational culture in the organization.

1. identify what is conflict;
2. learn how conflict affect an organization;
3. apply conflict management.
Course Materials:
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Conflict exists when disagreements lead to arguments and struggles between people
with competing ideas and/or personal interests. There are many sources of conflict in the
workplace - differences of opinion, dissatisfaction with working conditions or remuneration,
excessive workloads, lack of recognition or promotion, perceptions of discriminatory or unfair
treatment, feelings of insecurity, fear of redundancy, clashes of personality, misunderstandings
or breakdowns in communication and differing expectations of what constitutes appropriate
behavior.
What is Conflict Management?
Conflict management is the process by which disputes are resolved, where negative
results are minimized and positive results are prioritized. This key management skill involves
using different tactics depending on the situation, negotiation, and creative thinking. With
properly managed conflict, an organization is able to minimize interpersonal issues, enhance
client satisfaction, and produce better business outcomes.
Workplace conflict does not automatically mean that there are specific employees at
fault, although in some cases that will be the issue. If you have employees who question the
status quo and are pushing to make changes that they feel would be positive for the
organization that can indicate that your organization has a high level of employee engagement.
Conflict can also mean that employees are comfortable enough to challenge each other
and that they feel as though their conflicts will be fairly resolved by the organization. Conflict
management, when done properly, can even increase the organizational learning of an
organization through the questions asked during the process.
Conflict Management Styles
When it comes to conflict, there is no one solution that will work in all situations. Each
situation will be different, from the trigger of the conflict to the parties involved. A manager
skilled in conflict resolution should be able to take a birds-eye view of the conflict and apply the
conflict management style that is called for in that specific situation.
1. Accommodating
This style is about simply putting the other parties’ needs before one's own. You allow
them to ‘win’ and get their way. Accommodation is for situations where you don’t care as
strongly about the issue as the other person, if prolonging the conflict is not worth your time, or if
you think you might be wrong.
This option is about keeping the peace, not putting in more effort than the issue is worth,
and knowing when to pick battles. While it might seem somewhat weak, accommodation can be
the absolute best choice to resolve a small conflict and move on with more important issues.
This style is highly cooperative on the part of the resolver but can lead to resentment.
47
Pros: Small disagreements can be handled quickly and easily, with a minimum of effort.
Managers can build a reputation as an easygoing person, and employees will know that they
can speak their mind about problems without reprisal.
Cons: Managers might be viewed as weak if they accommodate too often. Using this technique
with larger or more important issues will not solve any issues in a meaningful way and should
absolutely be avoided.
Example: In a marketing meeting, the colors for the new spring campaign are
being discussed. Raymond is adamant that choice A is the best choice. Gina
thinks that choice B is slightly better, but decides to let Raymond choose the
colors, to avoid arguing about two choices that she thinks are both fine.
2. Avoiding
This style aims to reduce conflict by ignoring it, removing the conflicted parties, or
evading it in some manner. Team members in conflict can be removed from the project they are
in conflict over, deadlines are pushed, or people are even reassigned to other departments. This
can be an effective conflict resolution style if there is a chance that a cool-down period would be
helpful or if you need more time to consider your stance on the conflict itself. Avoidance should
not be a substitute for proper resolution, however; pushing back conflict indefinitely can and will
lead to more (and bigger) conflicts down the line.
Pros: Giving people time to calm down can solve a surprising amount of issues. Time and
space can give a much-needed perspective to those in conflict, and some issues will resolve
themselves. Managers show that they trust employees to act like adults and solve issues.
Cons: If used in the wrong situations, this technique will make conflicts worse. Managers can
seem incompetent if they overuse avoidance because employees will think that they are
incapable of handling disagreements.
Example: Jake and Amy have been collaborating on the new UX design for
weeks. The deadline is looming and they are increasingly unable to agree on
changes.
The deadline is pushed back and they both are given the day to work on other
projects. The space to take a break from each other, as well as the extra time to
complete their project, allows them to cool down and resume in a more
collaborative mindset.
3. Compromising
This style seeks to find the middle ground by asking both parties to concede some
aspects of their desires so that a solution can be agreed upon. This style is sometimes known
as lose-lose, in that both parties will have to give up a few things in order to agree on the larger
issue. This is used when there is a time crunch, or when a solution simply needs to happen,
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rather than be perfect. Compromise can lead to resentment, especially if overused as a conflict
resolution tactic, so use sparingly.
Pros: Issues can be resolved quickly, and the parties in conflict will leave understanding more
about the other person’s perspective. Compromise can set the stage for collaboration down the
road, and allows both parties to feel heard. Managers using this tactic are seen as facilitating
agreement, being hands-on and finding solutions.
Cons: No one leaves completely happy. In some cases, one side might feel as though they
sacrificed too much, and be unwilling to compromise again in the future. Managers who rely on
this technique will burn up their employees’ goodwill and be seen as unable to execute
collaboration.
Example: Rosa and Charles are in charge of the advertising budget for the next
quarter. Rosa wants to hire a full-time social media person, while Charles wants
to increase targeted digital ads.
A compromise is reached by hiring a social media person to work part-time,

with the remainder of the budget being spent on digital advertising.
4. Competing
This style rejects compromise and involves not giving in to others viewpoints or wants.
One party stands firm in what they think is the correct handling of a situation, and does not back
down until they get their way. This can be in situations where morals dictate that a specific
course of action is taken, when there is no time to try and find a different solution or when there
is an unpopular decision to be made. It can resolve disputes quickly, but there is a high chance
of morale and productivity being lessened.
Note: This is not a style that should be relied upon heavily.
Pros: Managers using this style show that they are strong and will not back down on their
principles. Disputes are solved quickly, as there is no space for any disagreement or discussion.
Cons: Managers using this style will be seen as unreasonable and authoritarian. Handling
conflicts by crushing any dissent will not lead to happy, productive employees, nor will it lead to
finding the best solutions in most cases.
Example: Sophia is the head of her department. Within her staff, she has been
dealing with several conflicts. First, Paul and Kevin could not agree on where to
hold the annual team-building activity, she stepped in and decided that the
department would do an escape room. Cecile and Eduardo have been fighting
over which one of them will have to deal with a particularly difficult client.
Neither wants to put in the time and effort and has been arguing that it is the
49
other’s job to deal with it. Sophia decides it is Cecile’s job to handle the client,
even though it arguably could be either person’s job.
Third, Alex has come to Sophia several times, asking for permission to change
the management of a project that he is running. He thinks that the changes he
proposes will make the project much more successful. Sophia will not budge on
the way the project is run and tells him to get the job done the way she has
ordered him to.
As you can see, in the first example, Sophia made a quick decision to stop a
small conflict from escalating or wasting more time. This is an appropriate use
of this style.
In the second decision, while she solved an issue, she created another one:
Cecile is now resentful. Especially in cases where a boss favors an employee,
this type of unilateral decision making will lead to angry employees.
In the third situation, Sophia should not have used the competing style. Not only
is Alex now upset that he is not being heard, but Sophia is also missing an
opportunity to improve the project.
5. Collaboration
This style produces the best long-term results, at the same time it is often the most
difficult and time-consuming to reach. Each party’s needs and wants are considered, and a win-
win solution is found so that everyone leaves satisfied. This often involves all parties sitting
down together, talking through the conflict and negotiating a solution together. This is used
when it is vital to preserve the relationship between all parties or when the solution itself will
have a significant impact.
Pros: Everyone leaves happy. A solution that actually solves the problems of the conflict is
found, and the manager who implements this tactic will be seen as skilled.
Cons: This style of conflict management is time-consuming. Deadlines or production may have
to be delayed while solutions are found, which might take a long time, depending on the parties
involved and can lead to losses.
Example: Terry and Janet are leading the design of a new prototype. They are
having difficulties, as Terry wants to incorporate a specific set of features. Janet
wants to incorporate a different set of features.
To reach a solution, they sit down, talk through each feature, why it is (or isn’t)
important, and finally reach a solution, incorporating a mix of their features and
some new ones they realized were important as they negotiated.
In each of the above conflict management examples, a solution is found,

but there will be lasting effects on morale, productivity, and overall happiness of
50
employees, depending on how that solution was reached. Skilled conflict
management is minimizing the lasting effects of conflicts by using the right
tactic at the right time.
Conflict Management Techniques and Best Practices

Techniques below aim to help managers to understand the complexities of conflict
management.
1. Be aware of conflict
2. Take a considered and rational approach to conflict
3. Investigate the situation
4. Decide how to tackle the conflict
5. Let everyone have their say
6. Identify options and agree on a way forward
7. Implement what has been agreed
8. Evaluate how things are going
9. Consider preventative strategies for the future
Assessment:
Rate how often you use the following types of actions on a scale of 1 to 5:
1. When there is an argument, I will leave the situation as quickly as possible.
2. In conflicts, I discuss the situation with all parties to try and find the best solution.
3. I use negotiation often to try and find a middle ground between the conflicted parties.
4. I know the best path to take and will argue it until others see that I am correct.
5. I prefer to keep the peace, rather than argue to get my way.
6. I will keep disagreements to myself, rather than bring them up.
7. I find it best to keep communication active when there is a disagreement, so I can find a
solution that works for everyone.
8. I enjoy disagreements and find satisfaction in winning them.
9. Disagreements make me anxious and I will work to minimize them.
10. I am happy to meet people halfway.
11. It is important to me to recognize and meet the expectations of others.
12. I pride myself on seeing all sides of a conflict and understanding all of the issues involved.
13. I enjoy arguing my case until the other side concedes that I am correct.
14. Conflict does not engage me, I prefer to fix the problem and move on to other work.
15. I don’t feel the need to argue my point of view, it is less stressful to agree with others.
References:
https://www.thebalancecareers.com/conflict-management-skills-2059687
https://www.valamis.com/hub/conflict-management-styles
https://www.managers.org.uk/knowledge-bank/conflict-management
51
LESSON 7 PLANNING
Overview
This lesson focuses on the planning within the organization.

1. learn the importance of planning;
2. apply the basic steps in planning;
3. understand forecasting.
Course Materials:
Planning is also a management process, concerned with defining goals for a company’s
future direction and determining the missions and resources to achieve those targets. To meet
objectives, managers may develop plans, such as a business plan or a marketing plan. The
purpose may be achievement of certain goals or targets. Planning revolves largely around
identifying the resources available for a given project and utilizing optimally to achieve best
scenario outcomes.
Strategic Planning
Strategic planning is an organization’s process of defining its strategy or direction and

making decisions about allocating its resources to pursue this strategy. To determine the
direction of the organization, it is necessary to understand its current position and the possible
avenues through which it can pursue a particular course of action. Generally, strategic planning
deals with at least one of three key questions:
 What do we do?
 For whom do we do it?
 How do we excel?
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The key components of strategic planning include an understanding of the firm’s vision, mission,
values, and strategies.
1. Vision
This outlines what the organization wants to be or how it wants the world in which it
operates to be (an “idealized” view of the world). It is a long-term view and concentrates on
the future. It can be emotive and is a source of inspiration. For example, a charity working
with the poor might have a vision statement that reads “A World without Poverty.”
2. Mission
It defines the fundamental purpose of an organization or an enterprise, succinctly describing

why it exists and what it does to achieve its vision. For example, the charity above might
have a mission statement as “providing jobs for the homeless and unemployed.”
3. Values
These are beliefs that are shared among the stakeholders of an organization. Values drive
an organization’s culture and priorities and provide a framework in which decisions are
made. For example, “knowledge and skills are the keys to success,” or “give a man bread
and feed him for a day, but teach him to farm and feed him for life.” These example values
place the priorities of self-sufficiency over shelter.
4. Strategy
Means “the art of the general”—a combination of the ends (goals) for which the firm is
striving and the means (policies) by which it is seeking to get there. A strategy is sometimes
called a roadmap, which is the path chosen to move towards the end vision. The most
important part of implementing the strategy is ensuring the company is going in the right
direction, which is towards the end vision.
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Importance of Planning
 Planning Helps in Achieving Objectives
Good and effective management is management by objectives. By focusing attention on

organisational goals, planning assists the management to coordinate the resources of
organisation more efficiently. It also enables the manager to chalk out in advance a “blue print”
of sequence of action to be pursued for realization organisational goals and to avoid needless
overlapping of activities.
 Planning Minimises Risk & Uncertainty
Systematic planning helps to predict and deal with future contingencies, thus enabling the
management to cope the challenges of a dynamic and ever changing environment. Constructive
planning minimises the dangers and risks of future losses to be suffered on account of
insufficient information and lack of direction and foresightedness.
 Planning Facilitates Control
Planning involves setting of goals which become standard against which actual performance
can be measured and evaluated. The function of controlling is to ensure that the activities
conform to the plans. Thus, effective controlling is not possible without meaningful planning
which serves as the basis to monitor, measure, evaluate and control achievement of
organisational objectives.
 Planning Helps in Securing Effective Coordination
Planning determines the course of activities of different units of organisation in such a way that
minimum co-ordination between physical and human resources is achieved. When various
departments in an organisation work in accordance with an overall plan, harmony and co-
ordination is achieved. It can be said that if co-ordination is essence for management, planning
is the base for it.
 Planning Leads to Economy in Operation
Planning is a mental exercise which involves selection of best possible course of action. On one
hand it ensures optimum utilisation of scarce resources at minimum cost and on the other hand
eliminates duplication and overlapping of efforts. By replacing confusion and disorder with co-
operation and co-ordination planning helps in channelising the energies towards efficiency in
operations.
 Planning Facilitates Decision-Making
Planning facilitates the process of decision-making by allowing the managers the freedom to
make choice in evaluation and selection of the best alternatives in relation to the set targets.
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 Planning Promotes Creativity
Management being an art, provides the managers the opportunity to suggest ways and means
in achieving higher targets. Sound planning induces creative thinking and action amongst the
employees to avail the available opportunities in such a way that novel ideas, methods and
techniques emerge leading to growth and prosperity of the organisation.
 Planning Improves Morale and Motivation
Planning makes a systematic arrangement for disposal of financial and non- financial benefits to
the workers of employees. Thus, meeting their emotional and psychological needs. It also
enhances their morale by creating a consistent work environment aimed at achievement of
organisational goals.
Tools and Approaches to Strategic Planning

There are many approaches to strategic planning, but typically one of the following is
used:
1. Situation-Target-Proposal
Situation – Evaluate the current situation and how it came about.

Target – Define goals and/or objectives (sometimes called ideal state).
Path/Proposal – Map a possible route to the goals/objectives.
2. Draw-See-Think-Plan
Draw – What is the ideal image or the desired end state?

See – What is today’s situation? What is the gap from ideal and why?
Think – What specific actions must be taken to close the gap between today’s situation and the
ideal state?
Plan – What resources are required to execute the activities?
Among the most useful tools for strategic planning is a SWOT analysis (Strengths,
Weaknesses, Opportunities, and Threats). The main objective of this tool is to analyze internal
strategic factors (strengths and weaknesses attributed to the organization) and external factors
beyond control of the organization (such as opportunities and threats).
Steps in Planning Process
1. Establishing Objectives
The first step in planning is the statement of objectives to be achieved by the concern. It should
be known to every member of the concern as to what are its purposes and objectives.
Objectives indicate what basically is to be done. Where the preliminary stress is to be placed
and what is to be accomplished by the network of policies, procedures, rules, strategies,
budgets and programmes.
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2. Establishing Planning Premises
It is to establish, obtain agreement to use and disseminate critical planning premises. There are
forecast data of a factual nature, applicable basic policies and existing company plans.
Premises then are planning assumptions, the future setting in which planning takes place in
other words, the environment of plans.
3. Determining Alternative Courses
In planning it is to search for and examine alternative courses of action especially those not
immediately clear. There is seldom a plan for which reasonable alternatives do not exist.
4. Evaluating Alternative Courses
Having sought out alternative courses and examined their strong and weak points the other step
is to evaluate them by weighing the various factors in the light of premises and objectives.
5. Selection from the Alternatives
Selecting the course of action, is the point at which plan is adopted … the real point of decision
making. An analysis and evaluation of alternative courses will disclose that two or more courses
are available, and the manager may decide to follow several courses rather than one best
course.
6. Formulation of Derivative Plans
As soon as the best programme is decided upon, the next task is to work out its details,
formulate the steps in full service to break it down for each section or department, for each
product and component of a product and for each month, quarter, week ultimately, the manager
will get the final plan of action in concrete terms.
7. Effective Communication of Plans
It is necessary that the plans are properly and effectively communicated to all the managers
concerned.
Assessment:
Review Lesson 4-7, and be prepare for a quiz next meeting.
References:

https://businessjargons.com/planning.html
https://en.wikipedia.org/wiki/Planning
56
LESSON 8 DIRECTING AND CONTROLLING
Overview
This lesson focuses on the directing and controlling within the organization.

1. Determine the basic concepts of directing and controlling.
2. Identify the limitation in control.
Course Materials:
Directing is the heart of management function. All other functions of management such
as planning, organizing, and staffing have no importance without directing. Leadership,
motivation, supervision, communication are various aspects of directing. Let us study the
importance and principles of directing.
Directing refers to a process or technique of instructing, guiding, inspiring, counselling,

overseeing and leading people towards the accomplishment of organizational goals. It is a
continuous managerial process that goes on throughout the life of the organization.
Characteristics of Directing
1. Initiates Action
A directing function is performed by the managers along with planning, staffing, organizing and
controlling in order to discharge their duties in the organization. While other functions prepare a
platform for action, directing initiates action.
57
2. Pervasive Function
Directing takes place at every level of the organization. Wherever there is a superior-
subordinate relationship, directing exists as every manager provides guidance and inspiration to
his subordinates.
3. Continuous Activity
It is a continuous function as it continues throughout the life of organization irrespective of the
changes in the managers or employees.
4. Descending Order of Hierarchy

Directing flows from a top level of management to the bottom level. Every manager exercises
this function on his immediate subordinate.
5. Human Factor
Since all employees are different and behave differently in different situations, it becomes
important for the managers to tackle the situations appropriately. Thus, directing is a significant
function that gets the work done by the employees and increases the growth of the organization.
Elements of Directing
1. Initiates Action
Each and every action in an organization is initiated only through directing. The managers direct
the subordinates about what to do, how to do when to do and also see to it that their instructions
are properly followed.
2. Ingrates Efforts
Directing integrates the efforts of all the employees and departments through persuasive
leadership and effective communication towards the accomplishment of organizational goals.
3. Motivates Employees
A manager identifies the potential and abilities of its subordinates and helps them to give their
best. He also motivates them by offering them financial and non-financial incentives to improve
their performance.
4. Provides Stability
Stability is significant in the growth of any organization. Effective directing develops co-operation
and commitment among the employees and creates a balance among various departments and
groups.
5. Coping up with the Changes

Employees have a tendency to resist any kind of change in the organization. But, adapting the
environmental changes is necessary for the growth of the organization. A manager through
motivation, proper communication and leadership can make the employees understand the
nature and contents of change and also the positive aftermaths of the change. This will help in a
smooth adaptation of the changes without any friction between the management and
employees.
6. Effective Utilization of Resources
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It involves defining the duties and responsibilities of every subordinate clearly thereby avoiding
wastages, duplication of efforts, etc. and utilizing the resources of men, machine, materials, and
money in the maximum possible way. It helps in reducing costs and increasing profits.
Principles of Directing
1. Maximum Individual Contribution
One of the main principles of directing is the contribution of individuals. Management should
adopt such directing policies that motivate the employees to contribute their maximum potential
for the attainment of organizational goals.
2. Harmony of Objectives
Directing has an important role to play in establishing harmony and coordination between the
objectives of both the parties. Sometimes there is a conflict between the organizational
objectives and individual objectives. For example, the organization wants profits to increase and
to retain its major share, whereas, the employees may perceive that they should get a major
share as a bonus as they have worked really hard for it.
3. Unity of Command
This principle states that a subordinate should receive instructions from only one superior at a
time. If he receives instructions from more than one superiors at the same time, it will create
confusion, conflict, and disorder in the organization and also he will not be able to prioritize his
work.
4. Appropriate Direction Technique

Among the principles of directing, this one states that appropriate direction techniques should
be used to supervise, lead, communicate and motivate the employees based on their needs,
capabilities, attitudes and other situational variables.
5. Managerial Communication
According to this principle, it should be seen that the instructions are clearly conveyed to the
employees and it should be ensured that they have understood the same meaning as was
intended to be communicated.
6. Use of Informal Organization

Within every formal organization, there exists an informal group or organization. The manager
should identify those groups and use them to communicate information. There should be a free
flow of information among the seniors and the subordinates as an effective exchange of
information are really important for the growth of an organization.
7. Leadership
Managers should possess a good leadership quality to influence the subordinates and make
them work according to their wish. It is one of the important principles of directing.
8. Follow Up
As per this principle, managers are required to monitor the extent to which the policies,
procedures, and instructions are followed by the subordinates. If there is any problem in
implementation, then the suitable modifications can be made.
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Controlling is one of the important functions of a manager. In order to seek planned
results from the subordinates, a manager needs to exercise effective control over the activities
of the subordinates. In other words, the meaning of controlling function can be defined as
ensuring that activities in an organization are performed as per the plans. Controlling also
ensures that an organization’s resources are being used effectively & efficiently for the
achievement of predetermined goals.
Importance of Controlling
Control is an indispensable function of management without which the controlling function in an

organization cannot be accomplished and the best of plans which can be executed can go
away. A good control system helps an organization in the following ways:
1. Accomplishing Organizational Goals

The controlling function is an accomplishment of measures that further makes progress towards
the organizational goals & brings to light the deviations, & indicates corrective action. Therefore
it helps in guiding the organizational goals which can be achieved by performing a controlling
function.
2. Judging Accuracy of Standards

A good control system enables management to verify whether the standards set are accurate &
objective. The efficient control system also helps in keeping careful and progress check on the
60
changes which help in taking the major place in the organization & in the environment and also
helps to review & revise the standards in light of such changes.
3. Making Efficient Use of Resources

Another important function of controlling is that in this, each activity is performed in such manner
so an in accordance with predetermined standards & norms so as to ensure that the resources
are used in the most effective & efficient manner for the further availability of resources.
4. Improving Employee Motivation

Another important function is that controlling help in accommodating a good control system
which ensures that each employee knows well in advance what they expect & what are the
standards of performance on the basis of which they will be appraised. Therefore it helps in
motivating and increasing their potential so to make them & helps them to give better
performance.
5. Ensuring Order & Discipline

Controlling creates an atmosphere of order & discipline in the organization which helps to
minimize dishonest behavior on the part of the employees. It keeps a close check on the
activities of employees and the company can be able to track and find out the dishonest
employees by using computer monitoring as a part of their control system.
6. Facilitating Coordination in Action

The last important function of controlling is that each department & employee is governed by
such pre-determined standards and goals which are well versed and coordinated with one
another. This ensures that overall organizational objectives are accomplished in an overall
manner.
Activity:
Read and Answer:
Rashmi Joshi had been a district sales manager with Fine Productions for ten
years. She was recognised by her peers and supervisors as a person who managed
department in a good way. However, everyone realised that Rashmi was extremely
ambitious and was seeking a higher-level management position. When one of her sales
representatives did a good job, she would attempt to take the credit. However, if a
problem arose, she thought it was not her fault. When the marketing manager retired,
Rashmi applied for the position. The company decided to do a thorough search because
of the responsibility and importance associated with the position. When the search was
concluded, the decision was made to fill the position by a person from outside the
company.
The consensus of top management was that Rashmi, although a good district
sales manager might have difficulties in working with her new peer groups. They felt that
she might displease the other managers if she tried to take credit for their work and, as a
result, their performance would suffer. Rashmi was heart-broken. She had wanted that
particular job for a long time and had dedicated all her energies towards obtaining it. She
became very despondent and her work deteriorated. The department functioned inspite of
her, not because of her.
Decisions were made slowly if at all and she began to be late with her sales
reports. Although her sales staff continued to be productive, Rashmi could not take the
credit. When the new marketing manager took over, one of the first major problems that 61
SUBJECT:he
MANA 01 BC- PRINCIPLES
confronted was how OF to ORGANIZATION
motivate and AND MANAGEMENT
inspire Rashmi to her former level of
COMPILEDperformance.
BY: DR. AGNESHe recognised
Y. GONZAGA that Rashmi hadJOY
& ALAMALYN been with the company for a long time but
TITO
something had to be done to motivate her to perform really well.
If you are the new marketing management, how will you motivate and inspire Rashmi to perform
well as a district sales manager of Fine Productions?
References:
https://www.managementstudyguide.com/importance_of_directing.htm
https://www.coursehero.com/file/52635944/Directingpdf/
https://www.toppr.com/guides/business-studies/directing/introduction-meaning-importance-and-
principles-of-directing/
https://ncert.nic.in/ncerts/l/lebs107.pdf
https://www.lnctu.ac.in/wp-content/uploads/Directing.pdf
https://www.slideshare.net/pragati_jain/directing-as-management-function
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LESSON 9 DECISION-MAKING AND RISK-TAKING
Overview
This lesson focuses on the decision-making and its importance in an organization.

1. Explain what is decision-making and its importance in the organization.
2. Practice effective decision making.
Course Materials:
Decision making is important to achieve the objectives and goals of the organization
within given time and budget. It searches the best alternative, utilizes the resources properly
and satisfies the employees at the workplace. A decision is a course of action chosen to
achieve the organization’s objectives or goals. According to Trewatha & Newport, “Decision-
making involves the selection of a course of action from among two or more possible
alternatives in order to arrive at a solution for a given problem”.
According to the Oxford Advanced Learner’s Dictionary, decision is “the process of

deciding about something important, especially in a group of people or in an organization.”
Robert Harris defines decision-making as “the study of identifying and choosing alternatives
based on the values and preferences of the decision maker”; and “the process of sufficiently
reducing uncertainty and doubt about alternatives to allow a reasonable choice to be made from
among them.”
A good decision-making should come from a complete information, experience or natural

ability of the leader, continuous training and development in analyzing information, human factor
which involves emotions and attitudes, and risk-taking. Decision making is the process of
making choices by identifying a decision, gathering information, and assessing alternative
resolutions.
Using a step-by-step decision-making process can help you make more deliberate,
thoughtful decisions by organizing relevant information and defining alternatives. This approach
increases the chances that you will choose the most satisfying alternative possible.
Six (6) steps in Decision-Making

1. Define the problem
This first step is very important because it involves identifying the problem needs to be
solved or the questions need to be answered. Clearly define the nature of the decision.
2. Gather information
This step involves seeking information from external sources, including studies, market
research, and, in some cases, evaluation from paid consultants.
63
3. Develop alternatives
This step involves identifying the possible solutions to the problem. Identify potential pitfalls
for each of alternatives, and weigh those against the possible rewards.
4. Select an alternative
This step involves making the decision based on all the gathered relevant information.
5. Plan and execute

Execute the plan. Also, develop a project plan related to the decision. This is to make the
decision tangible and achievable.
6. Take follow-up action

Decisions are made at every level of management to ensure organizational or business’
goals are achieved. However, there are things that we need to consider in making a
decision.
Since decision making process follows the above sequential steps, a lot of time is spent
in this process. This is the case with every decision taken to solve management and
administrative problems in a business setting. Though the whole process is time consuming, the
result of such process in a professional organization is magnanimous.
Do: Don’t:
Be Honest Set unrealistic goals
Be Responsible Decide right away
Be Efficient Do unexpected action
Be Confident Fool yourself
Tools for a Better Decision-Making Process
 Decision tree – it is used to weigh evidence. The example below shows a company trying
to determine whether to perform market testing before a product launch. The different
branches record the probability of success and estimated payout so the company can see
which option will bring in more revenue.
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65
Decision Matrix – is another tool that can help you evaluate your options and make better
decisions.
 Pros-and-Cons List – this clearly highlight whether your options meet necessary criteria or
whether they pose too high of a risk.
Managerial Decision-Making Process
66
The phrase managerial decision-making process is similar to and sometimes used
interchangeably with the more general term business decision-making. But in fact, managers
may have more decisions per day, including those affecting employees, beyond the typical
business decisions that need to be made in an organization. Managerial decision-making often
follows the five-step process.
According to the educational group Management Study Guide, there are three main
types of managerial decisions:
1. Strategic
These kinds of decisions are typically made rarely. Not all levels of an organization are or need
to be involved as the decision is being considered and decided. Examples of strategic
managerial decisions include resource and investment, expansion or downsizing, mergers or
acquisitions, investments, etc. These can take significant amounts of time and should not be
rushed.
2. Operational
These decisions also take time to be fully explored and made. Higher level ones may involve
only the C-suite and/or directors, and can include decisions affecting output, company-wide
policies, and culture. Lower-level decisions of this type affect daily operations, so are often
handled by upper and middle management.
3. Managerial
These are made by managers at every relevant level, from middle managers to the executive
suite. They may cover issues like allocation of resources, the decisions to phase out or revise
current products, the creation and introduction of new products, and the like. Every manager in
an organization needs to be aligned and often involved in decisions at this level.
There are at least four strong benefits to making good decisions:
1. Good decisions last longer. You will rarely need to revisit a decision that was made using a
well thought out process, and it can sometimes last the entire lifespan of an organization.
2. Good decisions weigh internal and external factors. A decision-maker should consider a
company holistically. A sound decision won’t have one part of the business succeed at the
expense of another. Both internal and external factors can affect the decision and the
company's road map.
3. Good decisions eliminate conflicts of interest. With transparency and stakeholder buy-in
during the decision-making process, questions or concerns after the fact become far less likely.
The benefits of this process keep the organization on track and focused, and reduce churn.
4. Good decisions actually work better overall. Good decisions actually get the decision-maker,
department, and company closer to their goal, and solve the initial problem.
References:
Essentials of Human Behavior in Organizations (Third Edition)

https://www.lucidchart.com/blog/decision-making-process-steps
https://www.umassd.edu/fycm/decision-making/process/
https://www.smartsheet.com/business-decision-making-process
https://www.managementstudyguide.com/decision-making-in-organizational-context.htm
67
References:
https://www.managementstudyguide.com/importance_of_directing.htm
https://www.coursehero.com/file/52635944/Directingpdf/
https://www.toppr.com/guides/business-studies/directing/introduction-meaning-importance-and-
principles-of-directing/
https://ncert.nic.in/ncerts/l/lebs107.pdf
https://www.lnctu.ac.in/wp-content/uploads/Directing.pdf
https://www.slideshare.net/pragati_jain/directing-as-management-function
Essentials of Human Behavior in Organizations (Third Edition)

https://www.lucidchart.com/blog/decision-making-process-steps
https://www.umassd.edu/fycm/decision-making/process/
https://www.smartsheet.com/business-decision-making-process
https://www.managementstudyguide.com/decision-making-in-organizational-context.htm

https://businessjargons.com/planning.html
https://en.wikipedia.org/wiki/Planning

https://www.indeed.com/career-advice/career-development/communication-
process#:~:text=The%20communication%20process%20refers%20to,the%20decoding%20of%
20the%20message.
https://businessjargons.com/personal-barriers.html
68

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Republic of the Philippines

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Compiled by: Checked by:

Almalyn Joy Tito Minerva C. Piedad, LPT, MEM

Date: _________________ Date: ___________________

Dr. Agnes Y. Gonzaga Assoc. Prof. Denise A. Abril

Date: _________________ Date: __________________

THE POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

PUP: The National Polytechnic University

 provide democratized access to educational opportunities for the holistic development of

As a state university, the Polytechnic University of the Philippines believes that:

Pillar 1: Dynamic, Transformational, and Responsible Leadership

SHARED VALUES AND PRINCIPLES

 Integrity and Accountability

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

 Quality and excellent graduates

1. Provide complete understanding of the concepts, principles, theories, and philosophies

COURSE TITLE : PRINCIPLE OF ORGANIZATION AND MANAGEMENT

After this course, the student should be able to:

The course requirements are as follows:

Midterm Grading Final Grading

FINAL GRADE = Midterm Grade + Final Grade

Outstanding Very Good Average Poor

First semester Class (18 weeks)

Week Topic Learning Outcomes Methodology Resources Assessment

1-2 Lesson 1 Management and Discuss Industrial Lecture Wriitten

3-4 Lesson 2 Management Explain the meaning of Lecture Written Output

7-8 Lesson 4 Communication Learn the importance of Lecture Written Output

10-11 Lesson 5 Motivation Define motivation and Lecture Wriitten

14-15 Lesson 7 Planning Learn the importance of Lecture Quiz

17 Lesson 9 Decision-Making Know the importance in Lecture Written Output

Lesson 1 Management and Organization Development

Unit 1: The Classical Organizational Theory 1

Lesson 2 Management Concepts and Structures 12

Lesson 3 The Forms of Organization 18

Unit 1 Communication Definition and Its Importance 22

Unit 1 Concepts of Motivation 31

Unit 1 Different Styles of Leadership 41

Lesson 7 Planning 52-

Lesson 8 Directing and Controlling 57

LESSON 1 DEVELOPMENTAL STAGES OF MANAGEMENT AND

This lesson focuses on the developmental stages of management and organization.

At the end of this lesson, you should be able to:

The Industrial Revolution created an increase in employment opportunities. As factories

The main features involved in the Industrial Revolution were technological,

6 Pillars of Classical Organizational Theory

He was one of the top engineering consultants in American

1. Eliminate the guesswork of rule-of-thumb.

The main elements of the Scientific Management

1. The development of a true science

The principles of scientific management, stand out:

He was a French mining engineer, mining

 Authority & Responsibility

 Subordination of Individual Interest to General Interest

 Stability of Tenure of Personnel

Max Weber also formulated an administrative system called bureaucracy. He believed

Task specialization (division of labor)

Hierarchical management structure

Efficient and uniform requirements

Research about the Classical Organizational Theory

Principles and Practices of Management and Organization (Third Edition)

Unit 2: The Human Relation Movement

This lesson focuses on the human relations movements.

Date: _ Date: ___

Date: _ Date: __