Pinoy Management

Ernesto A. Franco

Synopsis

Pinoy and American Management

Pinoy and Western Management, particularly American, have great differences
of management style. You can find many theories and concepts about American
Management. They dazzle. They glib-talk in expensive business suits and airconditioned
conference rooms. They have transplanted many techniques in to the indigenous Filipino
environment; sometimes with success; very often with awkwardness resulting in the
closure of banks and investments and finance firms, and the collapse of huge industrial
projects and government contracts. But for the great majority of Filipino proprietorships,
associations, cooperatives, and firms-whether in the cities or in the countryside; whether
closed-family corporations, stockholding, or public- the only management they know,
that they can afford, and depend upon is Pinoy management. They somehow manage and
compete and work, sometimes, though, it ends in a disaster.

No One Management Theory nor Style- Pinoy management thus asserts that there is no
one management theory or style. This is not in the textbooks or in classroom lectures. Yet
it is this part of the hazy block where power plays are made, decisions blocked out,
communication lines opened or bottled up, and commitments offered or withdrawn. Take
Luneta Park, for example: it is probably one of the best managed giant parks in the world.
And who is managing Luneta? All the people who are there roaming around.

Weakness of Pinoy Workers

No Confidence in Oneself (walang bilib sa sarili)- early inculcation of how poor
we Filipinos are, affected our management style.
Indoctrinated with Colonial Mentality ( Dikdik sa Colonial Mentality)- because of
the long years stay of foreigners who conquered our country, Filipinos inherited their
lifestyle and way of management. Filipinos are fond of imported products.

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 Overly Relaxed (Masyadong relax)-Filipinos have a casual, semi-lethargic, and
overly relaxed attitude towards life, towards work, and towards ambitions and
achievements although good education and strong family values are starting to counter
this day. No winter and no coolie labor are two factors that caused overly relaxed style.
Not a Follow up People (Ningas Cogon)- Most of us start well or begin with fire
and much enthusiasm but somehow we cannot keep it up.
Holiday Mentality (Kulang ng Mentality kahit Linggo)- We put breaks on
ourselves so that we don’t push beyond the ordinary or what is necessary.
Lack of Managerial and Organizational Effectiveness- Many want to become
leaders but have no capacity to make people obey them them.
Lack of Self-reliant Tenacity- there is not enough willpower and stamina to be
entirely on our own.

The Reality of Pinoy Management

Origins of Pinoy Managers- they come from the traditional families who owned
business; self-made entrepreneurs; professional lawyers and doctors who are
businessmen; from existing companies or institutions; government officials who retire or
resign from work; and from the business training schools.

Styles of Pinoy Management- Four General Styles

Management by Kayod- the manager of this type works day in and day out, fired
by an inner zeal that does not make any difference between working days, Sundays, and
holidays. His work is his pleasure, his life. Kayod ng Kayod. His process consist of : do-
see-plan a little.
Management by Libro- he is a thinker, technocrat, meticulous, systematic. His
process consist of: plan plenty-do-see-replan plenty again.
Management by Lusot- his process is: see-do-do again and again.
Management by Ugnayan- he runs through this process: see-plan-do-and at the
same time see again.

Other Negative Management Practices

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 Management by Porma- this type of manager relies on posture, clothes, style, and
image-building to run a business or project. Characteristics of management by porma:
likes to be physically charming; always tries to be attractive; spend much money on
clothes and personal care; what is important is this presence and style; no comments-no
mistakes, always well-dressed and always up-to-date.
Management by pakiramdam- this is practiced by managers who are not sure of
what to do and will act according to their reading of the situation. Characteristics are:
slowly feel your way just before deciding; listen, then act, then listen again; do not
commit; do not decide; do not act and in what direction is the wind blowing we move that
way-type.
Management by singit- who thrive on opportunism and timing. Characteristics
are: tendency to exploit situations such as riding on the power or reputation of others;
always looking out for connection; timing is important and maintains a small staff.
Turo-turo Management- dictatorial finger-pointing in the style.
Lamangan Management- Upmanship of putting one over the enemy or
competitor.

Weapons for the Manager

There is a need for No. 2- he needs number tow or refers to a real confidant, a true
assistant, your own eyes and ears. He trusts his assistants.
Grapevine Machine- good managers have a gossip mechanism within the
company.
There is a need of a hatchet man- the manager needs hatchet man as his assistant.
Be an expert on Timing- proper timing is the best to deal with business partners.
Avoid Losers- avoid those people who constantly do not make luck. You might
get contaminated.
Make it Personal- they call it personal touch. Loyalty, commitment, camaraderie
are more important rather than non-personal traits like efficiency or effectiveness.

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 One-On-One Style- means to divide and conquer. The manager should isolate
parties and teams and use go-between or intermediaries to reach those you cannot get in
touch with or are giving you a hard time.

Power Play (Fight)- this is an extreme enemy situation when the enemy, the other
group, another company, or someone in power puts the squeeze on you and you have no
other recourse but to fight back.
Never Say Never ( Huwag Kang Magsasalita ng Tapos)- Leave the door open for
reconciliation, for change, for improvements, for making amendments.
Be Situational and Contingent- sometimes the answer to management problems is
“it depends”. There are times you have to be systematic, or personalistic, or quantitative,
or intuitive.
Choose Your Grounds- don’t fight in a hostile environment where you don’t have
support or resources.
No Hassle Rule- good managers try to simplify always; seek the direct, shortest
route to a problem.
If You Can’t Hack it, Go Away- if you plan to stage any action against the
management be sure that you can handle the outcome.
For the Lazy of the Smart-Aleck- don’t engage yourself in endless debate with the
Smart-Aleck.
It’s Difficult to Have an Absentee Owner- the owner has to be around all the time;
or else, his employees will goof off, put one over him, or the customers will run circles
around the staff.
Let Him Hang Himself- newcomers advocate impact projects that you know are
risky. If despite your objections you still cannot convince them to abandon the projects,
let them hang themselves. Problems will emerge to trap them and perhaps it may turn out
to be valuable lessons for everyone.
Act Intelligently. Pretend to Think Always. – just act as if you know all the things
in the world.
Enter While It is Hot- be alert to hot products, to new fads and consumer interests,
to the happy moods of the boss or powers-that-be.

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 Think Chinese- Work like a dog and don’t spend more that what you earn.
Think Japanese- establish a network of communications and consultations at
every line of the company.

Follow-up- this is the key to management success.

A No is a No- this is a weakness of many Pinoy managers. He finds it difficult to
say NO. Even he said NO, he backtracks when approached by a crying lady or a
repentant employee.
Deadline Conscious- be aware of the deadlines and be sure to meet them.
You are the Owner but you are not the Best- if you are the owner/manager be sure
to make yourself the best employee.
Body Language is Important- managers have to operate in the cultural context of
their employees.
Management Limitations- there are many things management science cannot
solve.

General Principles of Management

Common Sense- management is habitual common sense. Management is the
achievement of objectives by identifying and utilizing human and material resources with
efficiency, effectiveness and efficacy.
Choosing a Management Approach- there are 3 general approaches to
management; ready-made but in detail; man focusing on man; like a computer and it
depends.
Management Principles and Process- the process is; Planning, Organizing,
Staffing, Directing, Controlling, Management Infrastructure, Information Systems,
Communications System, Responsibility/Authority Systems, Behavioral Systems,
Decision Making and Problem Solving.

Crisis Situation
Five Management Rules in a Crisis
1. Manage the fundamentals: liquidity, productivity and the cost of the future.

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 2. Put the old rules in the archives.
3. Anticipate areas most likely for dramatic change, and plan accordingly.
4. Identify and build on your business’ unique strengths.
5. Understand the role of mass and information in your product.

Marketing Mix Under Crisis- One way of approaching marketing in a crisis

environment would be from the point of view of one of the most basic and most
logical marketing principles: the marketing mix or the “4Ps of marketing”.
Examination of the product, price, promotion and placement.

Some Points on Survival

1. Do a realistic assessment of the environment in which you must do business.
2. Determine the volume of business you expect to have within the year and adjust
your resources and capabilities accordingly.
3. Optimize utilization of existing resources, facilities, and capabilities.
4. Develop new business lines.
5. Further strengthen human resources capabilities.

Some Practical Steps

1. Decrease Expenses
2. Raise People’s Morale
3. Watch Carefully the Income and Expenses

Corporate Goals in Starting UP

Small Company Problems
1. Starting up Problems- like lack of management know-how; lack of capital etc
2. Money Problems
3. Delegation Problems
4. Leadership Problems
5. Financial Crisis
6. Succession Crisis

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Identification of Prospects and Project Feasibility Study
Entrepreneurship
Sources of business opportunities
a. Examine the classified ads, business stories, and advertisement of Sunday
newspapers.
b. Scan the yellow pages of telephone directories to get an overview of
business operating in the area.
c. Adapt ideas from Americans and Japanese mail order catalogues.
d. Look up sections on new products and technologies.
e. Visit exhibits.
f. Talk to inventors.
g. Gather promotional materials.
h. Keep tab with the legislations and analyze the annual budget documents.
i. Attend seminars.
j. When you can travel, take pictures.

Marketing
Sales Practices
Subastahan- this is an activity in which goods and products are offered for bid.
Buena Mano- it is a term used to describe first sales or first buyer for the day. It is
a subtle psychological ploy used by the saleslady to push the first sales of the day or to
give the buyer the impression that he is the first buyer of the day and therefore should
bring good luck to the seller.
Tingi- is the process of piece-meal selling. It is a survival from day-to-day type of
buying and selling, with no thought of saving for a rainy day.
Por Kilo- it is similar to tingi but used to refer to the weighing scale such as in
buying pork or chicken so that by measurement, the sale is confined to a per kilo basis.
Todo or lahatan- refers to lot purchase or buying out an entire lot as in wholesale.

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 Bulungan- refers to secret bidding of fish catch in Navotas. This is done by
whispering where the buyer whispers in the ear of the seller and only the seller knows
what bids are made for the fish catch straight form the sea.
Pakyawan- is an activity in which the buyer purchases the whole lot or the entire
produce.
Gugol- refers to the capital of the seller. When bargaining gets too tough, the
seller appeal to the sense of justice of the buyer and claim that her gugol or capital is so
high that there is no more room left for just a little profit. In a fit of sympathy, the buyer
then gives in.
Tsitseria- refers to cheap items of mixed pieces.

Bargaining
Dagdag or Giveaway- is an activity in which the buyer asks for an extra beyond
what was originally purchased.

Tawad- is a process in which the buyer asks for a decrease in price or an

additional unit.

Ganansya- refers to the gross profit of the seller.

Bentang Palugi- refers to aloss in sales resorted to when there are no buyers or
when the fish will rot that a give-away price is offered just to get rid of the stock.

Sellers
Terms for them are: Humahango, maglalako, tindera and suki.

Market Place
Terms for it are: Tiangge, Talipapa, Puesto, Palengke and Tindahan.

Market Research
Filipino businessmen do not want to invest in market research. They think
common sense will suffice or experience.

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Supervision Tools

There are three areas in which management tools can be helpful to managers.
1. Office Equipment- administrative tools such as telephone, computers, files
and records etc.
2. Technical Tools- operations tools.
3. Tools for People- systems for managing people.

Pinoy’s Way of Expression of Achievement

The ways by which these results were gained have been expressed in genuine
Pinoy ways: dancing, fireworks, horn-honking, drum-beating, laughing, crying,
embracing. Or barbed wire wrapped in yellow ribbon. Or crying soldiers. Plus the
persuasive L-finger sign or V-finger sign.