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Organization & Management

Module 13:Week 13
Leading
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Leadership Styles and Theories

The following are the early leadership theories given by Kreitner and Kinicki (2013).
Trait Theory – a theory based on leader traits or personal characteristics that differentiate leaders from
followers, traits like intelligence, self-confidence, assertiveness, high energy and activity level, task-relevant
knowledge, honesty and integrity, being charismatic, being a visionary, and others were proposed as leadership
traits by researchers from their 1940s to the present.
Behavioral Theory – a theory that focuses on the behavior, action, conduct, demeanor, or deportment of a
leader instead of his or her personality traits.
Studies on this theory began during the Second World War or in the early 1940s because of the belief
the leader’s behavior affects work group effectiveness. Further studies emphasized that since behavior is
learned, leader behaviors can also be learned. In short, leaders are made and not born.
Contemporary Theories of Leadership

Fiedler Model – it is a situational leadership theory proposed by Fred Fiedler, an organizational behavior
scholar.
The theory is based on the assumption that the leader’s effectiveness is contingent or dependent on the
extent to which a leader’s style is fitted to actual situations in the organization’s internal and external
environment.
Hersey-Blanchard Model – theory proposed by Paul Hersey and Ken Blanchard.
The theory focused on subordinates’ readiness or extent to which the said subordinates have the ability
and willingness or accomplish a specific work assignment.
Path-Goal Theory – a theory developed by Robert House which states that the leader’s task is to lead his other
followers or subordinates in achieving their goals by providing them direction needed in order to ensure
compatibility of these said goals with the organization’s goals. House identified four leadership behaviors:
1. directive leadership – where the leader gives specific guidelines to followers so that task accomplishment
would be easier;
2. supportive leadership – where the leader shows concern and friendliness to subordinates;
3. participative leadership – where the leader asks for suggestions from followers before decision-making;
4. achievement-oriented leadership – where the leader sets the goals that subordinates must try to achieve.
Modern Leadership Views
1. Transactional Leadership Model
2. Transformational Leadership Model
3. Charismatic Leadership Theory
4. Visionary Leadership Theory
5. Team Leadership Theory
6. Servant Leadership Theory
Communication

Communication applies to all management functions and its general purpose for the organization to
bring positive changes that influence activities leading to the firm’s welfare.

Types of Communication
Verbal – through the use of oral and written words
Non-verbal – through body movements, gestures, facial expressions, eye contact, and by touching
Formal – of communication takes place within prescribed, routine organizational work arrangements
Informal – if communication is not defined by an organization’s hierarchical structure.

Communication Networks in Organization

Chain Network – communication flows according to the usual formal chain of command, downward and
upward

Wheel Network – communication flows between a leader and other members of their group/team.

All-channel Network – communication flows freely among all members of a team.

Barriers to Communication
1. Filtering – the shaping of information communicated in order to make it look good or advantageous to the
receiver.
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2. Emotions – the interpretation of communications which may be influenced by extreme emotions felt by the
receiver
3. Information Overload – there are too many pieces of information received by an individual may have a
negative effect on a person’s processing capacity.
4. Defensiveness – the act of self-protection when people are threatened by something or someone.
5. Language – could also hamper because words used may have different meanings to different people
belonging to different age, educational background, or cultural group.
6. National Culture – may also cause problems in communication among members of an organization,
especially if it is multifunctional company.
Overcoming Communication Barriers
Using Feedback
Using Simple Language
Active Listening
Controlling Emotions
Observing Body Language
MANAGEMENT OF CHANGE AND DIVERSITY IN ORGANIZATIONS
Types of Change
Changes in People
People’s attitudes, values, wants and needs, expectations, perceptions, and behaviors change as time
goes by.
Change in Structure
Due to changing conditions/situations and changing strategies used, organizational structures may also
change according to work specialization, departmentalization, change of command, span of control,
centralization, formalization and job redesign. Among others.
Changes in Technology
Technology changes usually refer to changes in work processes and methods used, introduction of new
equipment and work tools, automation, or computerization.

FILIPINO AND FOREIGN CULTURES IN ORGANIZATION

Three Primary Filipino Values

Social Acceptance – focuses on the desire of the Filipinos to be accepted and treated well by others
Economic Security – emphasizes that one must have financial stability and that he or she must be able to stand
on his or her own two feet, without incurring debt in order to meet his or her basic material needs.
Social Mobility – concerned with his or her desire to meet up the social ladder, to another higher economic
level, to a higher job position of respect in his or her family or in the community where he or she lives or in the
organizations where he or she belongs.

Activity 1. Multiple Choice. Choose the letter of the best answer.

1. You're a member of a work group with 3 other individuals. Three new members are added to your group. The
addition of these new members will likely affect the group in which of the following ways?
a. Complexity of decision making is increased
b. Scheduling meetings will be easier because there are more members to give input on the best time to meet
c. Less time will be needed to make decisions
d. all of the above
2. Joshua, a member of your dorm council, has been a very disruptive group member-- speaking out of turn,
dominating discussions, making inappropriate remarks, and quarreling with other council members. What steps
should be taken to deal effectively with Joshua?
a. Confront Joshua about his disruptive behavior after the council meeting
b. Expel Joshua from the council
c. Continue to allow Joshua to dominate conversation so he will run out of steam
d. Challenge Joshua on every point he makes so he will realize that he can't bully the council
3. Sarah is a devil's advocate. During group discussions she
a. attempts to convert group members to a pet cause or viewpoint
b. tries to motivate the group to be productive
c. monopolizes discussion and prevents others from expressing their points of view
d. gently challenges prevailing viewpoints in a group to test and evaluate their strength
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4. In an 8 person group the possible number of relationships is ___

a. 186
b. 441
c. 1056
d. 11324
5. Which of the following is not a valid conclusion based on research about the situational perspective on
leadership effectiveness?
a. No single style of leadership will be effective in all situations
b. When the readiness level of followers is low, the participating and delegating styles are most appropriate
c. Using the telling style with an able and talented worker will seem like micromanaging and is likely to
produce resentment
d. When the readiness level of followers is high, the participating and delegating styles are most appropriate
6. Communication competence and leadership effectiveness interrelate in which of the following ways?
a. the We-Not Me orientation of the communication competence model is crucial for leadership effectiveness
b. the most effective leaders are those who put aside their ego needs in favor of the group's goal
c. effective leaders try to empower group members and try not to stand out as dominant and deserving of
adoration
d. all of the above
7. The situational leadership perspective includes which of the following leadership styles?
a. delegating
b. readiness
c. maturity
d. laissez-faire
8. Which of the following is not informal types of roles in small groups?
a. disruptive roles
b. explicit roles
c. maintenance roles
d. task roles

9. Pete plays the harmonizer-tension reliever role during group discussion on an issue that provokes strong
disagreement among members. As a harmonizer-tension reliever, Pete
a. engages in horseplay and diverts attention from the group task
b. clarifies ideas for the group
c. maintains the peace; uses gentle humor
d. gently challenges prevailing points of view in the group
10. A group
a. is composed of no fewer than three individuals
b. is still a group even if members are primarily interested in individual accomplishment while in the group
c. has no common purpose
d. cannot be successful in a highly individualist culture
11. The Great Man theory is associated with which of the following approaches to studying leadership?
a. Skills
b. Intelligences
c. Styles
d. traits
12. According to Northouse (2007), which of the following sets of five traits are recognized widely to be major
leadership traits?
a. perseverance, resilience, integrity, empathy, masculinity
b. intelligence, resilience, determination, integrity, extroversion
c. intelligence, self-confidence, determination, integrity, sociability
d. extroversion, intelligence, self-confidence, integrity, resilience
13. What are the three core elements of Adair’s Action-Centered Leadership Model?
a. People, task, leader
b. Task, team, individual
c. Follower, leader, task
d. Team, task, leader
14. Oshagbemi and Gill (2004) provide evidence to suggest that different leadership styles are needed across
different hierarchical levels. Which of the following styles was found to remain equally important and used
across lower, middle and senior managerial levels?
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a. Delegative
b. Directive
c. Participative
d. Consultative
15. According to Katz (1974), what are the three core skills required from managers
at different hierarchical levels?
a. Technical, human, conceptual
b. Human, cognitive, technical
c. Cognitive, conceptual, technical
d. Economic, technical, conceptual
16. Which types of leadership remains underexplored through research?
a. Leadership of teams
b. Leadership in organizations
c. Leadership of organizations
d. Leadership at executive level
17. According to Gill (2006), what are the four key intelligences needed by a leader?
a. Emotional, ethical, cognitive, spiritual
b. Cognitive, spiritual, emotional, moral
c. Moral, ethical, cognitive, spiritual
d. Cognitive, emotional, ethical, technical
18. According to Schein’s (2004) model of culture, what is the manifestation – and
hence observable aspect – of a group’s culture?
a. Values
b. Basic assumptions
c. Beliefs
d. Artefacts
19. A culture is usually recognized to be ______.
a. Fixed
b. Stable
c. Evolving
d. Stagnant
20. There are divergent views on whether a culture is manageable. Which of the following views of culture
assumes that it is manageable?
a. Culture as a variable
b. Culture as a shared sense of belonging
c. Culture as a root metaphor
d. Culture as a rulebook
21. Focusing on the symbolic nature of culture encourages us to see leadership as a symbolic activity. Seen
through this lens, what is the key focus of leaders?
a. Being role models
b. Monitoring and rewarding
c. Sense-making and meaning-making
d. Creating and maintaining rituals
22. Which other leadership theory has been drawn on to explain and explore the key role of leaders within a
group’s culture and specifically in relation to the group’s shared sense of belonging?
a. Implicit leadership theory
b. Path-goal theory
c. Leader-member exchange theory
d. social identity theory
23. Which of the following is NOT a characteristic of etic cultural research?
a. Studying cultural characteristics across cultures
b. Studying culture and leadership through the lens of natives
c. Find universal leadership behaviors
d. Compare effectiveness of leadership styles across cultures
24. Which of the following leadership theories has been most frequently used as a theoretical framework in
cross-cultural leadership research?
a. Implicit leadership theory
b. Path-goal theory
c. Leader-member exchange theory
d. Social identity theory
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25. Which of the following is NOT a critique of cross-cultural leadership research?

a. Overly complex conceptualization of culture and leadership
b. Misrepresentations of local cultures and perpetuation of stereotypes
c. False assumption of representative sampling
d. Treatment of language as a neutral tool

Module 14: Week 14

Different Controlling Methods and Techniques

Controlling Defined
Controlling is a management function involves ensuring the work performance of the organization’s
members are aligned with the organization’s values and standards through monitoring, comparing, and
correcting their actions.
Why we need to Control?
To ensure that activities are completed in ways that lead to accomplishment of organizational goals.
What are the Steps in the Control Process?
Control process involves the following steps shown in the figure.

Establishing standards - This means setting up of the target which needs to be achieved to meet organizational
goals eventually. Standards indicate the criteria of performance such as sales, unit produced and cost.
Measuring and reporting actual performance-The actual performance of the employee is measured against
the target. These include personal observation, statistical reports, oral reports and written report.
Comparing the actual performance with standards- Determining the degree of variation between actual
performance and the standard.
Taking actions- involves the correction of deviations from the set standards. Managers may correct deviations
by modifying their plans, by improving the training of employees, by firing inefficient subordinates, or by
practicing more effective leadership techniques.
Relationship between planning and controlling
Relationship between planning and control can be understood as follows:

1. Planning identifies actions and controlling ensures that actions are carried out.
2. Poor control system is followed by failure of plans and effective control system reinforces the plans.
3. Controlling helps in revising or reframing the plans.
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Types of Control
a. Feedforward control
b. Concurrent control
c. Feedback control
Feed forward Control-A control that prevents anticipated problems before actual occurrence of the problems.
Concurrent Control-A control that takes place while the monitored activity is in progress
Feedback Control-A control that takes place after an activity is done.

Example control measures for employee Theft or Fraud

Financial Control
Financial control is the control of financial resources as they flow into the organization, are held by the
organization and flow out of the organization.
a. Budgetary Control
b. Ratio Analysis
A. Budgetary Control
Budgetary control is a technique of managerial control in which all operations are planned in advance
in the form of budgets and actual results are compared with budgetary standards. Types of budgets include cash
flow or cash budget, capital expenditure budget, sales budget, expenses budget, profit budget and production
budget.
Purpose of Budget
1. Helps managers coordinate resources and activity.
2. Helps define the established standards for control
3. Provide guidelines about the organization’s resources and expectations.
4. Enable the organization to evaluate the performance of managers and organizational units.
B. Ratio Analysis refers to analysis of financial statements through computation of ratios.
Objectives of Ratio Analysis
1. Standardized financial information for comparison
2. Evaluate current operations
3. Compare current performance with past performance
4. Study the efficiency of operations.
5. Study the risk of operations
Financial Statements represent a formal record of the financial activities of an entity. These are written reports
that quantify the financial strength, performance and liquidity of a company.
1. Statement of Financial Position also known as the Balance Sheet presents the financial position of an entity
at a given date. It is comprised of the following three elements: asset- something a business owns, liabilities-
something a business owes to someone, and owner’s equity or capital.
2. Income Statement, also known as the Profit and Loss Statement, reports the company's financial
performance in terms of net profit or loss over a specified period. Income Statement is composed of income and
expenses.
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Financial Ratios
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Benchmarking for Best Practices

Benchmarking is an approach of measuring a company’s own services and practices against those of
recognized leaders in the industry in order to identify areas of improvements.
 A control tool for identifying and measuring specific performance gaps and
areas for improvement.
Benchmark: the standard excellence against which to measure and compare.

Activity1. Identify the steps of controlling process applicable in the following cases:
1. Ella manager of Halika Food Products is observing the quality of their special Ham. She realizes that there is
no need for any action to be taken as long as variances are within the acceptable limits. A day later when she
comes to work, she finds the situation opposite to that of the previous day. This time variance was beyond the
acceptable range and needed immediate action. She called her employees and told them that this should not
happen again.
2. In a garments company the manager is trying to find out the deviation between the actual number of jeans
produced and the desired number. He already knows about the standard as the company has assigned him a
definite quantity of jeans to be produced.
3. Juan Dela Cruz wants to run his business in a different manner. He wants to set standards to be achieved in
both qualitative as well as quantitative terms. He wants to judge the motivation, skill levels and satisfaction of
the employees. All these things will require qualitative standards. On the other hand, the company will have to
set quantitative standards for the number of units produced.
4. Liza prepares performance report of her sales representatives for the month of May. She gathers all the
necessary information to measure performance like the number of unit sold as well as the market share of the
product in the market.
5. The manager of ABC fries and drinks notice some variances on their collection day by day. The management
decided to install CCTV camera to monitor the activity of the store. Upon observation on the actual CCTV
footage, they find out that there is a fraud commit by the cashier. Immediate the manager calls the attention of
the concern personnel and corresponding sanction imposed.

Activity 2: Name the Controlling Methods and Techniques

Direction: Identify what controlling method and technique is being described below.
1. It is a technique of managerial control in which all operations are planned in advance in the form of budgets
and actual results are compared with budgetary standards. _________________________
2. It is a control that takes place after an activity is done. _____________________
3. It is control that prevents anticipated problems before actual occurrence of the problems.
_____________________________
4. It is the control of financial resources as they flow into the organization, are held by the organization and
flow out of the organization. ___________________
5. It is a control tool for identifying and measuring specific performance gaps and areas for improvement.
____________________________
6. It is a control that takes place while the monitored activity is in progress ________________________
7. This financial ratio is computed by dividing total debt to total assets. ______________________
8. It is a financial ratio that identifies the profits that various products are generating. _____________________
9. This financial ratio is computed by dividing current asset to current liabilities. _______________________
10. This refers to analysis of financial statements through computation of ratios.
_________________________.

Activity 3. Let’s Compute Financial Ratio

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1. Compute the liquidity ratio of Good Angel Souvenir store. It has 100,000 current liabilities and 200,000
current assets. ____________________________
2. What will be the return on investment if a jewelry store net profit after tax is 600,000 and its total assets is
3,000,000? _______________________________
3. Compute the profit margin ratio of Mr. Canlas Motor Shop having total sales of 1,000,000 net profit after tax
of 300,000. _________________________
4. What will be the debt ratio of a fast-food chain if it has total assets of 1,000,000 and total liabilities of
250,000? ________________________________
5. During the year Danny Furniture reported a total cost of goods sold of 2,000,000 with an average of
1,000,000 worth of inventory. Compute the inventory turnover of Danny Furniture.

Activity 4. Financial Ratio Analysis

Compare the two business organizations who were both the leading native Kakanin Store I one of the town in
Pampanga. Determined which among the two is more favorable in terms of financial ratios. Justify your answer.

Activity 5. Fill the spaces with correct word or phrases on the discussion about controlling
functions of management.

Controlling is a management function involves

___________________________________________________________________________
The control process involves four steps which include
___________________________________________________________________________
Relationship between planning and controlling can be understood as:
___________________________________________________________________________
Types of control are:
___________________________________________________________________________
Financial Control includes:
___________________________________________________________________________
Benchmarking is a control tool:
_________________________________________________________________________

Activity 6. Choose the letter of the correct answer. Write the letter that corresponds to your answer on a
separate sheet of paper.
1. Miguel a manager of MotorSiklo, has established a monthly sales target for his sales team. Which management
functions best described Miguel action?
a. Planning c. Staffing
b. Controlling d. leading
2. What is the best explanation for profitability ratio?
a. It measure the capacity of business to generate profit
b. It measures profit
c. It measure success
d. It measures data to perform calculation
3. Which of the following would be an example of a feedforward control by a school?
a. Having students fill out evaluation forms about their teacher at the end of the school year
b. Having a students take a standardized admission test
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c. Issuing final grades at the end of the school year

d. Having the principal monitor the teacher performance by sitting on a class discussion
4. You are working as a bookkeeper on a grocery store. The owner is trying to implement control to deal with theft. You
have been asked to provide the sales and inventory figure for the month so he can determine whether the controls they put
have been effective. Once you provide them the data, what is the next step in the control process?
a. Establishing standards
b. Measuring and reporting actual performance
c. Comparing actual performance with standards
d. Taking actions
5. Mr. Morato a sales manager of agricultural supplies sets target sales for three months. Three months after the target
sales are implemented; the manager reviews the results to see whether the goal was achieved. Which type of control is
being implemented?
a. Feedback c. Feedforward
b. Concurrent d. Proactive
6. Which of the following statements is TRUE as it relates to the analysis of the debt ratio?
a. The lower the ratio, the more debts the business owns as percent of asset
b. The higher the ratio, the more debts the business owns as percent of asset
c. The higher the ratio, the less capital the business own
d. The lower the ratio the more profit the company have.
7. Which of the following is the right formula for acid test ratio?

8. A company has current liabilities of 300,000 and a current asset of 600,000. What is its current ratio?
a. 1 c. 3
b. 2 d.4
9. Jenny manages 5 sales representatives that have missed their sales target for the past two months. After reviewing each
sales representative’s performance record, Jenny adjusted the sales target to take additional control measures into
consideration. Why is this example of controlling?
a. Because somebody will get fired as a result of this analysis
b. Because Jenny acted as a leader
c. Because Jenny is managing his staff
d. Because Jenny looked at results and took appropriate action.
10. Your fast-food business is trying to determine how competitive it is in the market. Fast food A is just as good as your
business, while Fast food B is a much larger fast-food that can be considered as a leader in the business considering its
high revenue and sales. Which business should you compare your business with in the case of best practices
benchmarking?
a. Fast food A because they are good as your business
b. Fast food B because you want to compare to the leader in the business
c. Fast food B because in benchmarking, you should always compare your business with the highest revenue and sales
d. Fast food A because if you compare your business of a similar size, it is easy to detect the difference.

Module 15: Week 15

Introduction to the Different
Functional Areas of Management
Functional Areas of Management
Nature in the firm
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Role in the firm

Human Resource Management responsibility is to manage its people to become skilled and competent workers.
Training and development of employees is one of the major programs of every company. It is the duty of the HRM to
have effective and efficient workers which is very important in running a business firm. However, this area is also in
charge on evaluating the job performance of each employee in the company for them to identify those employees who are
qualified to receive an increase in salary, rewards, incentives and benefits.

Marketing Management primary concern is the production and marketing aspects of the company to target customer
satisfaction. Its basic role is to promote the products and services of the firm in an affordable price. In this area, managers
usually examine the business location of the firm because the place of the business plays a major role in the marketing
mix. Marketing managers choose the best place for their target markets which is the customers and it is consider as one of
their marketing strategies.

Operation Management is responsible for manufacturing goods and services in the company, this area of management
must engage to the other areas in order for the company to adopt different operational strategies.

Financial Management duty is to focus on the overall financial activities of the firm from sales, revenues, expenses,
income down to profit or losses of the business to detect its stability.

Material and Procurement Management is in charge on buying raw materials at its lowest cost to control the company
budget.

Office Management is liable on the overall workforce of the firm, its office activities and the task assigned to the
employees to achieve the organizational objectives.

Information Communication and Technology Management role in the firm is to track any information of the firm’s
business data to maintain its profitability among its competitors.

Activity 1. Identify the following statement intelligently and concisely based on your understanding about the new
concept that you read on the module. Write on the space provided after the sentence.
1. Its primary concern is the production and marketing aspects of the company to target customer
satisfaction.___________
2. This area focuses on the sales and revenues of the firm whether it is gaining profit or have financial
losses.____________
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3. This is in charge on buying raw materials at its lowest cost to control the company budget.___________
4. The role in the firm is to track any information of the firm’s business data to maintain its profitability among its
competitors.____________
5. This shows the flow of the manufacturing process of the products and goods that the firm needs to sell in the market to
be globally competitive.__________

Activity 2. Imagine that you are a marketing manager in the firm which is focus on its internal factors. List at least five
strengths and weaknesses relating to business operation of the organization in the Marketing Management area. Write
your answers on the given table.

Activity 3. Modified TRUE or FALSE. Directions: Write T if the statement is true. Write F if the statement is False and
change the underline words to make it right.
_____, __________1. The Office Management is responsible in monitoring the firm’s activities and assign task of the
employees to meet company’s objectives.
_______,_______________2. The managers are usually focus on the business location of the firm, so it means promotion
is highly recommended for feasibility studies relating to marketing mix.
________,______________3.The process of recruiting and selection is under the human resource management that is link
to leading on the major functions of management.
_______,_______________4. This ICT Management of the firm is being tied up with different online shopping as a
strategy for productivity.
_______,_______________5. It is the Financial Management area that purchases raw materials and supplies for the firm
and also responsible for shipment and delivery.
_______,_______________6. The 4P’s namely product, price, promotion and place are the main focus of marketing mix
in Marketing Management.
_______,_______________7. The Financial Management is the process of monitoring the financial position in the
business firm in terms of gains and losses.
_______,_______________8. Checking the quality of the products produces in the manufacturing plant involves Material
Management.
_______,_______________9. The Human Resource Management is also in charge on evaluating the job performance of
each employee in the company for them to identify those employees who are qualified to receive an increase in salary,
rewards, incentives and benefits.
______,________________10. Innovations of product are being process on the manufacturing plant of the firm that
usually describes the area of Material and Procurement Management.
Activity 4. Matching type. Directions: Match column A to column B. Write the letter on the space provided before the
number.
Column A Column B
______1. Expenses A. Human Resource
______2. Innovation of products B. Financial
______3. Promotion C. Marketing
______4. Purchasing D. Operations
______5. Selection E. Procurement
F. Technology

References
Book
Medina, Roberto Phd. Organization and Management. Philippines: Rex Bookstore, 2013,

Website
https://www.slideshare.net/christinejoyjubacpilapil/chapter-8-introduction-to-the-different-functional-areas-of-
management

Website
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https://www.the teachertoolkit.com, 2020

Module 16: Week 16

The Basic Concept of Small Family Business
Entrepreneurship – innovative, creative, risk-taking, growth-oriented behavior that brings new opportunities for
individuals or organizations to start new business and to produce new products or services that are beneficial to society.
Entrepreneurial ventures- organizations that persistently pursue opportunities are characterized by creative, innovative
activities that have service, growth, and profitability as principal goals.
Small business – a business that has fewer than 100 – 500 workers (depending on the prevailing commercial law in a
particular country), independently owned, operated, and financed; not always entrepreneurial in orientation and does not
dominate its industry; capital is low but capable of producing goods or rendering services designed to satisfy particular
needs of customers.

What are the Entrepreneurial Procedures?

Steps in Entrepreneurial Procedure
 Formulate the business vision and mission statements
 Segment of the market
 Find the target market
 Understand the environment
 Develop the business Plan

Business plan is a written description of your business's future, a document that tells what you plan to do and how
you plan to do it. If you jot down a paragraph on the back of an envelope describing your business strategy, you've written
a plan, or at least the germ of one. Business plans are inherently strategic.

Business Plan
Executive summary - Products and services
Environmental analyst - Operations
Industry analysis - Management and ownership
Market analysis - Financial Data
Company description - Time table

Marketing and sales activities

 Implement and monitor the business venture
 Maximize the utilization of business resources
 Creative and Innovative * Good Planners
 Customer-oriented * Open-minded
 Flexible * Persistent
 Confident * Organized
 Updated/Well-informed * Team players
 Knowledgeable * Risk-takers

Business Registration – a government requirement that order new business owners to furnish government agencies with
necessary information prior to the legal operation of their business organization.

The legal forms of business are determined by its ownership or proprietorship.

Family Business- a business owned and financially controlled by members of a family

Enterprise – any projected task or work; undertaking

What are the Forms of Business?

Single or Sole Proprietorship – a business owned by one person only. The owner and the business are considered as one,
meaning the owner’s income and the business income are one and the same and the business income is taxed as a personal
income. Decision making is the sole responsibility of the owner and if the business succeeds, he or she gets all the profits.
If it fails, then he or she suffers all the losses and must pay whatever debt are incurred. The business ends upon the death
of the owner or
single proprietor.
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Partnership – a business formed when two or more partners formally agree to be joint owners of a business. The
resources (money and other assets) and talents (skills, experience, and management expertise) of all involved may be
pooled together. All partners share the profits equally, unless otherwise specified in their partnership agreement.
Corporation – a business entity involving five or more persons owning it. It is registered and recognized by law as a
“legal person” that has legal rights and responsibilities, can sue or be sued in court, can own and sell properties, and can
transact or enter into contracts. Corporation ownership is divided into units known as shares of stocks and owners of these
are called stockholders. A board of directors, elected by the stockholders on a regular basis, manage the corporation which
is run according to terms specified by their by-laws and articles of incorporation. The corporation’s life does not end with
the death of stockholder or by the selling of the stocks of a particular stockholder.
Cooperative - a group enterprise made up of several traders, consumers, or producers who are interested to produce or
trade as a group. The cooperatives’ original purpose was to supply those involved with goods or services at lower costs
compared to those bought from retailers. Later types of cooperatives have emerged that include farmers, producers, and
credit cooperatives. A group of officers, called board of directors and committees, headed by a chairman, manage the
cooperative’s activities. The cooperative’s life is not affected by the death of any of its members nor by the selling of
a member’s shares. It can, however, be dissolved by a majority vote of the board of directors and a resolution signed by at
least two-thirds of the general membership.

Government agencies where the business to be registered:

 Department of Trade and Industry (DTI)
 Securities and Exchange Commission (SEC) (Partnership and Corporation)
 Cooperative Development Authority (CDA)
 Barangay clearance and securing Community Tax Certificate
 Mayor’s Permit and license to operate
 Fire Safety Clearance – Bureau of Fire Protection (BFP)
 Bureau of Internal Revenue (BIR)
 Pag-ibig Fund (Home Development Mutual Fund)
 Department of Labor and Employment (DOLE)
 Social Security System (SSS)
 Philippine Health Insurance Corporation (Philhealth)

Activity 1. A Choose the letter of the correct answer. Write your answer on your notebook.
1. Businesswoman Joana wants her business to pursue different opportunities that design, innovate different activities and
the principal goals of the business are the growth and profitability. What ventures it is?
a. Entrepreneurial ventures
b. Small Business
c. Micro Business
d. Leadership
2. Innovative, creative, risk-taking, growth-oriented behavior that brings new opportunities for individuals or
organizations to start new business and to produce new products or services that are beneficial to society.
a. Entrepreneurship
b. Organization
c. Management
d. Accounting
3. Which of the following best describe the Small Business?
a. Organizations that persistently pursue opportunities are characterized by creative, innovative activities that have
service, growth, and profitability as principal goals.
b. Business that has fewer than 100 – 500 workers (depending on the prevailing commercial law in a particular country),
independently owned, operated, and financed; not always entrepreneurial in orientation and does not dominate its
industry; capital is low but capable of producing goods or rendering services designed to satisfy particular needs of
customers.
c. It is inherently strategic.
d. Innovative, creative, risk-taking, growth-oriented behavior that brings new opportunities for individuals or
organizations to start new business and to produce new products or services that are beneficial to society.
4. Adrian now living in Toronto, Canada her business was inherent to his parents and now owned and operated by his two
children. What kind of business they are engaged in?
a. Family Business
b. Large Business
c. Money Business
d. Foundation
5. Any projected task or work; undertaking
a. Entrepreneurship
b. Enterprise
c. Family Business
d. Government Agencies
6. Capital is low but capable of producing goods or rendering services designed to satisfy particular needs of customers.
a. Small Business
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b. Entrepreneurial ventures
c. Entrepreneurship
d. Entrepreneur
7. A group enterprise made up of several traders, consumers, or producers who are interested to produce or trade as a
group.
a. Single or Sole Proprietorship
b. Partnership
c. Corporation
d. Cooperative
8. A business formed when two or more partners formally agree to be joint owners of a business.
a. Single or Sole Proprietorship
b. Partnership
c. Corporation
d. Cooperative
9. The students task to do a written document to start a small business with mission, vision, product description, target
market personnel and financial data. What kind of documents the student will create?
a. Business Plan
b. Student’s Portfolio
c. Student’s Handbook
d. Student’s Profile
10.Paul and Arlene created a small business they agreed upon equal share in all financial needs of the business. What
forms of business is it?
a. Single or Sole Proprietorship
b. Partnership
c. Corporation
d. Cooperative
Activity 1.B. Matching Type: Write the letter of the correct answer. Choose from the letter below and write your answer
on your notebook.
1. A government requirement that order new business owners to furnish government agencies with necessary information
prior to the legal operation of their business organization.
2. Sarah Jane wants to put up her own business all the advantages and disadvantages are her own responsibilities. What
type of business it is?
3. A business entity involving five or more persons owning it. It is registered and recognized by law as a “legal person”
that has legal rights and responsibilities, can sue or be sued in court, can own and sell properties, and can transact or enter
into contracts.
4. The cooperative’s life is not affected by the death of any of its members nor by the
selling of a member’s shares.
5. The resources (money and other assets) and talents (skills, experience, and management expertise) of all involved may
be pooled together.

A. Sole/Single Proprietorship
B. Partnership
C. Corporation
D. Cooperative
E. Business Registration

Activity 2. Let’s do additional activity that enrich and remember your knowledge and skill of the lesson we learned.
1. Make 1 page Business Plan.
One Page Business Plan
 Description of Business
 Product and Services
 Target market
 Competition
 Personnel
 Financial data
2. What are the different forms of business and give example of each type?

Rubrics:
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