Org. Management 12 q2 F
Org. Management 12 q2 F
Org. Management 12 q2 F
ORGANIZATION
AND
MANAGEMENT
The Notre Dame of Masiag, Inc.
S.Y. 2021-2022
Grade 12, Quarter 2
Name __________________________________________
Introductory Part
The course Organization and Management and this module reflect those changes
and will help you prepare to become ideal managers who will be ready to face the
world’s varying challenges.
Here are the references that you will find useful for this module:
http://www.businessdictionary.com/definition/trigger-pointhtml#ixzz3RUccexQd
http://www.businessdictionary.com/ definition/organizational-
design.html#ixzz3RUnVe6OL
https://www.managementstudyhq.com/functions-of-management.html
Definition of Terms
(ICTM) – the management of information and communication technology that collects, organizes,
and distributes data to be used in the organization’s decision-making functions.
Communication – the exchange of information and understanding.
Compensation/wages – all forms of pay given by employers to their employees for the performance
of their jobs.
Control Methods – techniques used for measuring an organization’s financial stability, efficiency,
effectiveness, production, output, and organization members’ attitudes and morale.
Controlling – 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.
Development – refers to learning given by organizations to its employees that is geared toward the
individual’s acquisition and expansion of his or her skills in preparation for future job
appointments and other responsibilities.
E-business – electronic business which involves business to business (B2B) and business to
customer (B2C) transactions.
Entrepreneurial ventures – organizations that persistently pursue opportunities and are characterized
by creative, innovative activities that have service, growth, and profitability as their principal
goals.
Entrepreneurship – innovative, creative, risk-taking, growth- oriented behavior that brings new
opportunities for individuals or organizations to start new businesses and to produce new
products or services that are beneficial to society.
External Recruitment – refers to recruitment from outside sources.
Financial management – the management and custody of the organization’s funds, seeing to it
that funds are effectively and efficiently utilized in order to provide for all the needs of the
organization’s various operating units.
Financial Planning – the process of setting financial objectives and determining what should be
done to accomplish them.
Human resource management – the process of attracting, training, developing, and maintaining an
excellent work force.
Information and communication technology management
Internal Recruitment – refers to recruitment done within the organization.
Interview – the determining of an applicant’s qualifications in order to gauge his or her ability to do
the job.
Job – a specific piece of work done for a certain fee.
Job Analysis – the process of obtaining information about jobs needed to achieve the
organization’s goals/objectives.
Macroeconomic Environment – business environment that includes or considers economic
aggregates such as national income, total volume of savings, and money supply.
Management Control – control that makes use of balance sheets, income statements, cash flow
statements to analyze and examine financial statements in order to determine the company’s
financial soundness and viability, as well as financial ratios to determine the organization’s
stability.
Marketing management – the process of managerial planning and carrying out of the conception,
pricing, promotion, and distribution of ideas, goods, and services in order to bring about
exchanges to satisfy individual and organizational goals (as defined by the American
Marketing Association).
Motivation – refers to psychological processes that arouse and direct goal-directed behavior.
Non-quantitive Control Methods – methods which make use of tools such as inspections, reports,
direct supervision, performance evaluation, and on-the-spot checking to accomplish goals.
Non-verbal communication – refers to communication through body movements, gestures, facial
expressions, eye contact, or body contact.
Operations management – the study of how goods and services are produced in organizations.
Performance evaluation – a process undertaken by the organization, usually done once a year,
designed to measure employees’ work performance.
Quantitive Control Methods – methods which make use of data and different tools expressed in
members for monitoring and controlling production output.
Recruitment – a set of activities designed to attract qualified applicants for job position vacancies in an
organization.
Selection – the process of choosing individuals who have the required qualifications to fill present and
expected job openings.
Small business – a business that has fewer than 100 to 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.
Staffing – refers to filling in all organizational job positions.
Standard – any established measure of extent quantity, quality, or value.
Strategic Control – a systematic monitoring at control points in strategic plans that may tend to
change in the organization’s strategies.
Systems approach to staffing – is the step-by-step way of filling job positions in organizations,
considering variables such as numbers and kinds of human resources needed, open managerial
and no managerial positions, potential successors to open job positions, etc.
Theory – a body of fundamental principles verifiable by experiment or observation.
Training – refers to learning given by organizations to its employees that concentrates on short-term
job performance and acquisition or improvement of job-related skills.
Value chain – the actual sequence of activities that results in the production of goods and services
that have value for customers.
Verbal communication – refers to oral and written communication.
Lessons and Coverage
Lesson Topic/Title You’ll learn to…. Estimat
No. ed
Time
Chapter 5: 1. Definition and Apply organization theories for
Staffing Nature of Staffing effective business management
2. Recruitment and Discuss the concept and nature of 5
Selection staffing weeks
3. Compensation/Wages Analyze the process of recruiting,
and Performance selecting and training employees
Evaluation/Appraisal Examine the functions and
importance of compensation,
wages and performance
evaluation, appraisal, reward
system, employee relations and
movement
Chapter 6: 1. Motivation Analyze motivation, leadership,
Leading 2. Communication and communication work in an
organization
Analyze the role of 1 week
communication in directing people
within the organization.
Chapter 7: 1. Apply the Apply the concept and nature of
Controlling concept, Nature different control methods and
of Different techniques in accounting and 1 week
Control Methods marketing
and Techniques
in Accounting
and Marketing
Chapter 8: 1. The Different Explain the nature and role in the
Introductio Functional Areas firm of the following functional
n To The of Management areas of management:
Different a. Human Resource Management
Functional b. Marketing Management 1 week
Areas Of c. Operations Management
Managemen d. Financial Management
t e. Material and Procurement
Management
f. Office Management
g. Information & Communication
Technology Management
Chapter 9: 1. Small Business Explain the steps and importance
Special Management and of starting a family business 1 week
Topics in Entrepreneurship
Managem
ent
Expected Skills
To do well in this module, you need to remember and do the following:
Module Map
Staffing
Leading
Controlling
Managers often consider human resources as their organization’s most important resource. Very few
administrators would argue with the fact that human resources are very important for the efficient and effective
operation of a company. To emphasize their importance, human resources are also called human capital,
intellectual assets, or management or company talents. These terms imply that human resources are the drivers of
the organization’s performance; hence, staffing is a crucial function of managers.
In this chapter, we define the concept of staffing and discuss the various processes involved in
systematic staffing.
Activity 1– PRE-ASSESSMENT 1
Let’s find out how much you already know about this module. Please answer all
items. After taking this short test, you will see your score. Take note of the items that you
were not able to correctly answer and look for the right answer as you go through this
module. Write your answer in your own provided sheets. Entitle your work as Q2-
Chapter 5 – Activity 1 – Pre-Assessment.
Direction: Read and understand the given statement below, identify the process of staffing.
Write your answer in your own provided sheets.
1. This can be resignation which is voluntary separation or termination which is
involuntary separation.
2. This is the pooling of job candidates to match the human resource plan of the
organization.
3. The objective of this step is to ensure that the personnel needs of the organization are
met and sustained.
4. This aims to improve the skills of employees for them to be more efficient where it
intends to educate the employees for additional responsibility and for promotion.
5. This step evaluates job applicants which are among the best through a thorough
analysis of their qualifications by interviews, tests, reference checks and physical
examination.
6. The chosen applicants are introduced to their immediate superiors, officemates and
make them aware on the policies of the company.
7. This is to evaluate an individual’s job performance against job standards such as
responsibilities, accountabilities and measurements.
8. This is a movement to a different job with similar pay and responsibility.
9. This is the advancement in position with higher pay and responsibility.
10. This is a movement to a lower-status position. In some cases, the employee is given
an impressive title, but with less responsibility.
Lesson 5 . 1
DEFINITION AND NATURE OF STAFFING
Employees or people are the most important asset of business organizations. Thus, all
business organizations focused their attention and concerned on getting and retaining
employees. The efficiency and effectiveness of an organization significantly depends on the
quality of its personnel and since it is one of the primary functions of management to achieve
qualified and trained people to fill various positions, staffing has been recognized as a distinct
function of management.
Thus, this self-learning activity sheet guides comprehend the importance of getting
the right person to fit in the right job and capacitate themselves on the efficiency and
effectiveness of employees in the organization.
Direction: This is a word mapping activity. Read and analyze this question: What comes into
your mind upon hearing the word ‘Staffing’? What are the words you can associate to it?
Use a graphic organizer to present your answer. Write your answer in your own provided
sheets. Entitle your work as Q2 – Lesson 5.1 – Activity 2 – WORD MAPPING.
My Graphic Organizer
Direction: Look at the given pictures below and use these to answer the following process
questions given below. Entitle your work as Q1 – Lesson 5.1 – Activity 3 – PICTURE
ANALYSIS
PROCESS QUESTIONS:
Staffing, according to Dyck and Neubert (2012), is the Human Resource function of
identifying, attracting, hiring, and retaining people with the necessary qualifications to fill the
responsibilities of current and future jobs in the organization. The number of managerial
personnel or non-managerial human resources needed by an organization depends upon the
size and complexity of its operations, its plans for branching out or increasing products, and
turnover rates of both types of human resources, among others. Besides considering their
number, the qualifications for the individual positions must be identified, so that the best-
suited individuals for the job positions may be selected for hiring.
EXTERNAL AND INTERNAL FORCES AFFECTING PRESENT AND FUTURE NEEDS FOR
HUMAN RESOURCES
Present and future needs for managers and other human resources are affected by both
external and internal forces.
External forces include the following:
1. economic
2. technological
3. social
4. political
5. legal factors
For example, economic progress in a particular country may bring about increased needs
and wants among people, resulting, in turn, in increased demand for certain products, followed by
the expansion of the company and its work- force, as well as increased demand for managers.
Information explosion coming from the internet, from business publications, or from the labor
department of countries may give either encouraging or discouraging long-term trends in the
world labor market, thus causing an increase or a decrease in demand for managers and other
human resources.
The firm’s goal and objectives, technology, the types of work that have to be done, salary
scales, and the kinds of people employed by the company are among the internal factors or
forces that affect staffing. For example: salary scales offered by a company may not be high
enough to attract personnel who are really qualified for the job. Also, this may encourage fast
managerial and labor turnover.
THE STAFFING PROCESS
1. Human Resource Planning
2. Recruitment
3. Selection
4. Orientation/ Introduction
5. Training and Development
6. Performance Appraisal
7. Transfer, Promotion and Demotion
8. Separation
Companies of today have several experiences in terms of managing people. Some were
retained and some left their organization. Some companies lose employees simply because they
have been placed in the wrong job and who might have found more satisfaction in the other
companies. Employees come and go, that's why managers gradually look at the plans and
policies.
PROCESS QUESTIONS:
1. If you are the human resource manager, which do you think is the critical part of the
staffing process to scrutinize? Why?
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2. Do you believe that employees are the important asset of a company? Why? How?
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ACTIVITY 6: MY IDEA!
DIRECTION: Read and answer the following process questions below. Write your
answer in your own provided sheets. Entitle your work as Q2 – Lesson 5.1 – Activity 6 – My
Idea.
PROCESS QUESTIONS:
1. As a Damean, how could you relate the core values NOTRE DAME in staffing?
DIRECTION: Analyze and answer the question below. Write your answer in your own
provided sheets. Entitle your work as Q2 – Lesson 5.1 – Activity 8 – Understand Me.
1. Based on your experiences or observations, how is staffing used in your family, in school
or in the community?
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Lesson 5 . 2
RECRUITMENT AND SELECTION
The process of recruitment cost both time and money such that management should be
able to attract the qualified candidates within a reasonable period of time. This topic enables the
learners to enrich their knowledge on how to recruitment process takes place.
This self-learning activity sheet leads the learners to determine the importance of recruitment
and analyze contemporary issues of recruiting employees.
Selection is the second process of staffing which described as a negative process in
contrast with the positive process of recruitment. The basic purpose of the selection process is
choosing right type of candidates to man various positions in the organization. For this purpose,
well-organized selection policies involve critical decision of a manager. A candidate undergoes
step and at each step more and more information is obtained about the right candidate to fill in
the vacancy
This self-learning activity sheet leads learners to recognize the recruitment and selection
process and will give an avenue to solve simple case let about the process of recruitment and
selection.
Direction: Read and follow carefully the given instruction. This is to check how thorough
your understanding about recruitment. The table below is provided. Write your answer in
your own provided sheets. Entitle your work as Q2 – Lesson 5.2 – Activity 1 – MY IDEAS
ABOUT RECRUITMENT.
2.
3.
In the event of a job opening, administrators must be careful when recruiting and
choosing who to bring into the organization. They must see to it that their new recruit possesses
the knowledge and skills needed to be successful in helping their company achieve their set
goals and objectives and that he/ she is suited for the job position and the job design.
In internal recruitment, filling job vacancies can be done through promotions or transfer
of employees who are already part of the organization. In other words, recruitment is within the
organization.
Both external and internal recruitment have their own advantages and disadvantages.
Advertising and recruiting through the Internet reach a large number of possible
applicants, thus, increasing the possibility of being able to recruit applicants suited for the
job.
Applicants who submit applications and resumes through their own initiative are believed
to be better potential employees because they are serious about getting the job.
Employee referrals from outside sources are believed to be high quality applicants
because employees are generally hesitant to recommend persons who are not qualified for
job openings.
Executive search firms usually refer highly qualified applicants from outside sources
because they make an effort to check applicants’ qualifications before recommending
them to client firms who pay for their services.
Educational institutions know the capabilities and qualifications of their graduates, hence,
increasing the chances of their ability to refer qualified applicants to potential employers.
The cost and time required by external recruitment are the typical disadvantages of using
this recruitment method. Advertising job openings and the orientation and training of newly
hired employees from outside sources, as well as sorting out large volumes of solicited or
unsolicited job applications present challenges in budgeting time and money.
Another disadvantage of external recruitment is the possibility of practicing bias or
entertaining self-serving motives in the referral of friends and relatives by current
employees and in the recommendation of private employment agencies of job applicants.
Internal Recruitment Advantages
Less expenses are required for internal recruitment advertising; news- letters, bulletin
boards, and other forms of internal communication may disseminate information to
current employees interested to apply for job openings within the company.
Training and orientation of newly promoted or transferred current employees are less
expensive and do not take too much time since they are already familiar with company
policies.
The process of recruitment and selection is faster because the candidate for transfer or
promotion is already part of the organization.
SELECTION
Interviews are important in determining the qualifications of an applicant and gauging his
or her ability to perform a job. Interviews may come in different forms.
Types of Job Interviews
a. Structured interview – the interviewer asks the applicant to answer a set of prepared
questions—situational, job knowledge, job simulation, and worker requirement questions
b. Unstructured interview – the interviewer has no interview guide and may ask questions
freely
c. One-on-one interview – one interviewer is assigned to interview the applicant
d. Panel interview – several interviewers or a panel interviewer may con- duct the
interview of applicants; three to five interviewers take turns in asking questions.
Similarly, there are different kinds of employment tests administered to measure or test
an applicant’s specific skill or capacity.
a. Intelligence test – designed to measure the applicant’s mental capacity; tests his or her
cognitive capacity, speed of thinking, and ability to see relationships in problematic
situations
b. Proficiency and aptitude tests – tests his or her present skills and potential for learning
other skills
c. Personality tests – designed to reveal the applicant’s personal characteristics and ability
to relate with others
d. Vocational tests – tests that show the occupation best suited to an applicant.
In reality, there is no one perfect way to select a firm’s human resources. Predicting
performance is difficult as there is a difference between what individuals can do at present and
what they will do in the future. This is because a persons’ needs and wants change, and so do an
organization’s climate and environment. The fact that many selection approaches and tests have
been devised is enough proof that management experts are still in search of what could be done
to improve the present selection process.
A B C
1. Requisition of New 1. Study the different jobs 1. Actual Recruitment of
Employee and do job analysis Applicants
2. Actual Recruitment of 2. Requisition of New 2. Study the different jobs
applicants Employee and do job analysis
3. Study the different jobs 3. Actual Recruitment of 3. Requisition of New
and do job analysis applicants Employee
PROCESS QUESTIONS:
ACTIVITY 4: MY IDEA!
DIRECTION: Read and analyze the situation below. Write your answer in your own
provided sheets. Entitle your work as Q2 – Lesson 5.2 – Activity 4 – My Idea.
Mrs. Malou Pitt is the auditor of MugTaza Company for almost 10 years. She rendered
resignation because she decided to be with her family abroad. Ms. Teeyagha Khoo, the finance
manager was full of regrets because Mrs. Pitt’s decision since she was one of the most
dedicated and superb employees of the company. Mr. Khoo accepted her resignation letter and
forwarded it to Atty. Kizze Magalang, the Human Resource Manager. Hence, the company will
be on the process of recruiting applicants to fill in the position of Mrs. Pitt.
In this scenario, who will fill up the Personnel Requisition Form?
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1. As a Damean, how could you relate the core values NOTRE DAME in recruitment
and selection?
Lesson 5 . 3
COMPENSATION/WAGES AND PERFORMANCE
EVALUATION/APPRAISAL
A responsible employer or business owner knows how to attract and keep employees by
providing the right compensation and benefit package. They must recognize that employees are
part of their success.
A most promising and attractive employee’s compensation and benefits can lead to attract
top talented individuals, increased employee’s motivation, boost employees loyal, and increase
productivity and profitability.
Organizations that seek to maintain and improve its competitive advantage must be able
to manage the behavior of its employees to optimize results. Performance appraisal of employee
is one of the important aspects of every organization because individual performance is the
building block of organization success and growth. Organizations must control and direct the
efforts of their people towards the achievement of its goals and objectives. Certainly, people in
the organization are the key ingredients for success and growth of a company. Thus, managing
people’s performance is extremely important.
ACTIVITY 1: MY IDEAS!
Direction: Read and follow carefully the given instruction. Explain the following
terminologies given below.The table below is provided. Write your answer in your own
provided sheets. Entitle your work as Q2 – Lesson 5.3 – Activity 1 – MY IDEAS.
TERMINOLOGIEST EXPLANATION
Monthly-paid
employees
Parental Leave
Wage
Thirteen-Month Pay
Daily-paid employees
Overtime Pay
Maternity Leave
Wage Rationalization
Act
Regional Tripartite
Wages and Productivity
Boards
Compensation/wages and performance evaluation are related to each other because the
employees’ excellent or poor performance also determines the compensation given to them,
after considering other internal and external factors like the actual worth of the job,
compensation strategy of the organization, conditions of the labor market, cost of living, and
area wage rates, among others. Compensation may come in different forms. It may be direct,
indirect, or nonfinancial.
TYPES OF COMPENSATION
1. Direct compensation – includes workers’ salaries, incentive pays, bonuses, and
commissions
2. Indirect compensation – includes benefits given by employers other than financial
remunerations; for example: travel, educational and health benefits, and others
3. Nonfinancial compensation – includes recognition programs, being assigned to do
rewarding jobs, or enjoying management support, ideal work environment, and
convenient work hours
The daily minimum wage rate differs in relation to factors such as geographical area and industry
or sector. The National Wages and Productivity Commission is the government agency concerned with
minimum wage determination in the country.
Compensation rates are influenced by internal and external factors. Among the internal
factors are the organization’s compensation policies, the importance of the job, the employees’
qualifications in meeting the job requirements, and the employer’s financial stability.
External factors, on the other hand, include local and global market conditions, labor
supply, area/regional wage rates, cost of living, collective bargaining agreements, and national and
international laws, among others.
Purposes of Performance Evaluation: Administrative and Developmental
Improving individual job performance through performance evaluation is just one of the
reasons why employees are subjected to assessments on a continuous basis. There are other
purposes behind employee assessment that are beneficial to the company and employees:
a. Administrative Purposes – These are fulfilled through appraisal/ evaluation programs
that provide information that may be used as basis for compensation decisions,
promotions, transfers, and terminations.
Human resource planning may also make use of it for recruitment and selection of
potential employees.
b. Developmental Purposes – These are fulfilled through appraisal/ evaluation programs
that provide information about employees’ performance and their strengths and
weaknesses that may be used as basis for identifying their training and development
needs. Through this approach, the workers become more receptive to the explanations
given by the organization’s management regarding the importance of having
evaluations at regular intervals—that these are conducted to improve their
competencies in order to prepare them for future job assignments.
Different performance appraisal methods are used depending on the information an
evaluator aims to find out.
Performance Appraisal Methods
Methods of evaluating workers have undergone development in order to adapt new legal
employment requirements and technical changes. Some appraisal methods used today are the
following:
a. Trait methods – performance evaluation method designed to find out if the employee
possesses important work characteristics such as conscientiousness, creativity, emotional
stability, and others.
b. Graphic rating scales – performance appraisal method where each characteristic to be
evaluated is represented by a scale on which the evaluator or rater indicates the degree to
which an employee possesses that characteristic
c. Forced-choice method – performance evaluation that requires the rater to choose from
two statements purposely designed to distinguish between positive or negative
performance; for example: works seriously— works fast; shows leadership—has initiative
d. Behaviorally anchored rating scale (BARS) – a behavioral approach to performance
appraisal that includes five to ten vertical scales, one for each important strategy for
doing the job and numbered according to its importance
e. Behavior observation scale (BOS) – a behavioral approach to performance appraisal
that measures the frequency of observed behavior
Why Some Evaluation Programs Fail
Performance appraisals (such as manager/supervisor appraisal, self-appraisal, subordinate
appraisal, customer appraisal, peer appraisal, team appraisal, or 360-degree appraisal) may
sometimes fail due to various reasons including the following:
2. Does Mr. Curry Phot have the right to complain and claim the deductions back?
Justify your answer.
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ACTIVITY 4: MY IDEA!
DIRECTION: Analyze the table given below. Write your answer in your own
provided sheets. Entitle your work as Q2 – Lesson 5.3 – Activity 4 – My Idea.
Table: Daily Minimum Wage Rates in the
Philippines
PROCESS QUESTIONS:
2. The table above is Minimum Wages Rates in the Philippines. Why is it that each
region in the country have different minimum wage rate?
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1. As a Damean, how could you apply the core values NOTRE DAME in performance
evaluation/appraisal?
2.
Instruction: Rank 1 to 4 the following sets of statements according to how they describe
the manner in which (Name of Employee performs the job. A rank 1
should be the used for the most descriptive statement, and a rank of 4 should be given for
3. the least descriptive.
Does not anticipate difficulties
Grasps explanations quickly
Rarely wastes time
Easy to talk to
A leader in group activities
Wastes time on unimportant things
Cool and calm at all times
Hard worker
June 1-Daisy listened carefully to the customer’s complaint, answered the woman’s questions,
and then look back the merchandise. He was polite, prompt, and interested in her problem.
4. June 16- Daisy had the longest lunch break during the busiest day. He failed to attend
customers complains.
July 10-Daisy entertained and solved 10 customer concerns and complaints. Because of that
the department received compliments from the customers.
5.
6.
CHAPTER 6:
LEADING
Activity 1– PRE-ASSESSMENT 1
Let’s find out how much you already know about this module. Please answer all items.
After taking this short test, you will see your score. Take note of the items that you were not
able to correctly answer and look for the right answer as you go through this module. Write
your answer in your own provided sheets. Entitle your work as Q2- Chapter 6 – Activity 1 –
Pre-Assessment.
Direction: Modified True or False. Two statements are given. If only the first statements is
true, answer A; if only the second statement is true, answer B; If both statements are true,
answer C; if both statements are false, answer D. Write your answers on the space provided.
Write your answer in your own provided sheets.
________1. Leading and managing are synonymous terms. Successful leadership must begin
by focusing on the psychological capital of both the employer and the employee.
________2. Conscientiousness knows what is right and what is wrong. Extraversion is the
degree to which someone is sociable, talkative, and assertive.
________3. Job satisfaction refers to the employees’ general attitude toward their respective
job. It has no effect on productivity.
________4. Theory X is a positive view of workers. Theory Y is a negative view of workers.
________5. The Two Factor Theory of Motivation was proposed by McClelland. The ERG
Theory was developed by Alderfer.
________6. Self-actualization refers to the human need for continued personal growth. Esteem
is the human need for self-respect and self-fulfilment.
________7. Managers are advised to set goals for their subordinates. Difficult goals demotivate
workers.
________8. Job enlargement is the increasing of job depth by empowering employees to
assume tasks often done by managers. It is an example of Job Design Theory.
________9. Change is considered by many organization members as a threat. Fear of change
may be due to uncertainty, pessimism, and concern about personal loss.
________10. Mañana habit has a positive implication to organizational management. Ningas
Cogon is another positive belief of Filipino workers.
Lesson 6 . 1
MOTIVATION
Direction: Choose a picture of a family member, a friend, or a person that you admire in
business, political, sports entertainment and other industries that motivate you to achieve your
dream. Be creative with your answer. Write your answer in your own provided sheets.
Entitle your work as Q2 – Lesson 6.1 – Activity 2 – MY IDOL…MY INSPIRATION.
MOTIVATION
1. Physiological Needs refer to the human need for food, water, shelter, and other physical
necessities.
2. Safety Needs refer to human needs for security and protection from physical and
psychological harm.
3. Social Needs pertain to the human desire to be loved and to love, as well as the need for
affection and belongingness.
4. Esteem Needs include the human need for self-respect, self-fulfillment, and become the best
according to one’s capability.
5. Self-actualization Needs are the final needs in Maslow’s hierarchy.
The Hierarchy of Needs was published by Abraham Maslow in 1943. According to him,
physiological needs must be satisfied first. Once a need is satisfied, it activates the next higher
need in the hierarchy. The process continues until the need for self-actualization is activated. It
is important for managers and leaders to focus on satisfying employee needs related to self-respect,
self-esteem, and self-actualization because their satisfaction is related to many outcomes such as
academic achievement, job performance, work problems/success, and others.
B. McGregor’s Theory X and Theory Y – refers to the theory that was proposed by Douglas
McGregor.
Theory X is a negative view of workers which assumes that workers have little ambition,
dislike work, and avoid responsibilities; they need to be closely monitored or controlled in order
for them to work effectively.
Theory Y is a positive view of workers which assumes that employees enjoy work, seek out
and accept responsibility, and are self-directed.
Managers must be guided by Theory Y, so McGregor proposed that they must give
employees a chance to participate in decision-making, assign those challenging jobs to exercise
their responsibility in handling complex situations, and allow them to have good work relations
with others, which would enhance their motivation.
C. Herzberg’s Two Factor Theory – was proposed by Frederick Herzberg This theory is also
known as the Motivation-Hygiene Theory which states that intrinsic factors (achievement,
recognition, growth, and responsibility) are associated with job satisfaction, while extrinsic
factors (company policy, salary, security, and supervision) are associated with job
dissatisfaction. Intrinsic factors are the motivators while the extrinsic factors are called
hygiene factors.
D. McClelland’s Three Needs Theory – was proposed by David McClelland and a state that
individuals have three needs that serve as motivators at work.
The three needs McClelland referred to are: the need for achievement (nAch), the need for
power (nPow), and the need for affiliation (nAff). Managers are advised to be observant of
these needs among their sub- ordinates so that they could be given job assignments that would
satisfy their highest needs, if possible. In doing so, they may be more motivated to work well.
E. Alderfer’s ERG Theory – was developed by Clayton Alderfer in the 1960s. For Alderfer, a
set of core needs explains behavior. E- stands for existence needs, R- refers to
relatedness needs, and G- pertains to growth needs. The needs or desire for physiological
and materialistic well-being, to have meaningful relationships with others, and to grow as a
human being are similar to the needs presented in Maslow’s Theory.
FIGURE 6.3 How Maslow’s, Herzberg’s, and Alderfer’s theories relate
Modern Theories of Motivation are process theories that focus on the notion that motivation is a
function of employees’ perceptions, thoughts, and beliefs. Among these are:
1. Goal Setting Theory – a theory stating that specific goals motivate performance and that
more difficult goals, when accepted by employees, result in greater motivation to perform
well, as compared to easy goals.
Managers are advised to set goals for their subordinates as this is a major source of job
motivation. Doing well also helps increase their motivation.
If the result or consequences that immediately follow a behavior is good, then there is a
probability that the individual will be motivated to repeat the behavior. Using this theory,
managers can motivate employees’ positive behavior by using positive reinforcement for actions
that help the company achieve its goal.
3. Job Design Theory – a theory which states that employees are motivated to work well by
combining tasks to form complete jobs.
Managers are advised to design jobs that will meet the requirements of the ever-changing
environment, the firm’s technology, and the workers’ skills, abilities, and preferences. In doing so,
employees are motivated to perform well. Examples are: job enlargement—the horizontal
expansion of a job by increasing job scope; job enrichment—the increasing of job depth by
empowering employees to assume some tasks usually done by their managers; and job
characteristics model—where employees are motivated to perform well because the task
assigned to them have the five core job dimensions that serve as motivators.
4. Equity Theory – a theory developed by J. Stacey Adams which states that employees assess
job outcomes in relation to what they put into it and then compares these with their co-
workers.
If the employee perceives that his job is equitable in comparison to those of his
coworkers, there is no problem. However, if the opposite is true, this will become a demotivator
to his or her job performance. Man- agers must see to it that they exercise fairness or equity in
their company.
5. Expectancy Theory – states that an individual tends to act in a certain way, based on the
expectation that the act will be followed by an outcome which may be attractive or
unattractive to him or her.
Managers are advised to understand an employee’s goal so that he or she would be able
to link the rewards or outcomes to be offered with the said goals.
DIRECTION: Describe that person you choose in Activity 1 (MOTIVATION ) and based on
Maslow’s Hierarchy of Needs Theory explain how he/she motivates you and your desire to
fulfil your dreams/needs. Use your own provided sheets to justify your answer. Entitle your
work as Q2 – Lesson 6.1 – Activity 4 – Let’s Work and Learn.
_____________________________________________________________________________
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ACTIVITY 5: MY IDEA!
DIRECTION: Analyze what type of motivation theory takes place in each workplace
scenario. Then, be ready to answer the given process questions below. Write your answer
in your own provided sheets. Entitle your work as Q2 – Lesson 5.2 – Activity 5 – My
Idea.
Mr. Bayucan has been working as the head of the Accounting Department at ABC
Corporation for five (5) years now. Recently, he noticed that Mr. Ramiscal dislike his work, and
he avoids responsibilities while Ms. Deniega seems to enjoy her work, she seeks out and
accepts responsibility, and she is self-directed.
PROCESS QUESTIONS:
1. What type of motivation theory do you observe from Mr. Ramiscal’s actions? What
type of motivation theory do you observe from Ms. Deniega’s actions? Support your
answer.
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2. Do you think Mr. Bayucan should motivate Mr. Ramiscal and Ms. Deniega? If you were
Mr. Bayucan what would you do? How will you apply Herzberg’s Two Factor Theory
to Mr. Ramiscal and Ms. Deniega that will enhance their motivation?
_____________________________________________________________________________
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1. As a Damean, how could you relate the core values NOTRE DAME in different
theories about motivation?
a. Draw a poster-slogan about McClelland’s Three Needs Theory and Alderfer’s ERG
Theory of motivation in an organization.
b. Create a three-minute promotional video on hiring motivated employees using
Herzberg’s Two Factor Theory of motivation in an organization.
Lesson 6 . 2
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.
The communication process starts with the sender who has an idea or a message, which is then
transmitted through a selected channel to the receiver, who in turn who has to be ready for the
reception of the message, so that it could be decoded into thoughts. Accurate communication
occurs when the sender and the receiver understand one another, according to Hobbins and
Coulter (2009).
Communication networks are varied patterns of combined horizontal and vertical flows of
organizational communication. Types of communication networks include the following:
1. Chain network – where communication flows according to the usual formal chain of
command, downward and upward.
2. Wheel network – where communication flows between a leader and other members of their
group/team.
3. All-channel network – where communication flows freely among all members of a
team.
It has been observed by communication researchers that there is no single network that
could be considered applicable or fit for all circumstances in an organization.
Organization members also communicate through other networks and means such as the
grapevine and computer networks.
The grapevine is an informal communication network in an organization. An example is
gossip/rumor which could quickly disseminate information. Managers must stay aware of the
grapevine’s flow and pat- terns, and could use it to transmit important information. They,
however, should also be conscious of the negative effects of gossip as these may cause conflicts in
their company. Negative effects of rumors may be minimized by practicing transparency and
communicating openly with employees.
Meanwhile, computer networks present another means of communication among
organization members. Information technology has made it possible for managers to
communicate with each other and with subordinates and for employees to communicate with
each other anytime, regardless of distance. Examples of computer communication applications
are e-mail, blogging, teleconferencing, and intranet.
BARRIERS TO COMMUNICATION
Organization members may encounter various types of barriers that can alter the meaning
of communications that they receive. These barriers include filtering, emotions, information
overload, defensiveness, language, and national culture.
For example, a manager who is in a very bad mood and receives good news may not see the
positive aspect of it because his rational thinking process is affected by his emotional judgment.
3. Information overload – another barrier to good communication since there are too many
pieces of information received by an individual may have a negative effect on a person’s
processing capacity.
For example, the hundreds of job applications received by human resource managers
through e-mail may be too many for them to read fully and respond to accurately.
Due to this feeling, people may resort to communicating lies in order to protect
themselves or to interpret communications differently to defend their interests, thus, reducing
mutual understanding.
5. Language – could also hamper good communications because words used may have
different meanings to different people belonging to different age, educational
background, or cultural group.
6. National culture – just like language, the prevailing national culture may also cause
problems in communication among members of an organization, especially if it is
multinational company
Certain office practices, like sending formal memoranda to employ- ees, may be
negatively interpreted by employees coming from another country with a different culture that
values face-to-face interpersonal communication. Such negative interpretation may, in turn, cause
employee dissatisfaction and less motivation to perform their work well.
1. Using feedback – This is usually done by asking questions about a memo sent to
subordinates or by asking them to give their comments or suggestions. In doing so, they
are able to determine whether the communication they sent out was understood the way
they originally intended.
2. Using simple language – This is done by avoiding uncommon terms and flowery words
that may just cause misinterpretation. Language used must fit the level of understanding
of the intended recipients of the communication. Effective communication is achieved
when the message is understood by those who received it.
3. Active listening – This means listening well in order to grasp the full meaning of the
communication. Hearing without giving full attention to what others seek to
communicate usually results in misinterpretations and communication distortions.
4. Controlling emotions – This is another method of overcoming communication
misinterpretation. When the receiver is affected by extreme anger, his interpretation of a
message received may not be accurate. On the other hand, when the sender is affected by
extreme emotions, he/ she may also send or transmit inaccurate information. Therefore, it
is important to practice emotional restraint.
5. Observing body language – This also influences how communication is interpreted. Actions
of the message receiver, like throwing away a letter delivered to him, betrays his negative
feelings regarding its message, even if he says “yes” or “okay” to what is requested.
Nonverbal cues must always be watched because, as the saying goes, actions speak louder
than words.
a. Mr. Balag has been working as an accounting staff at ABC Corporation for a year
now. Recently, the company hired another staff, Miss Lim, to work with Mr. Balag.
Miss Lim discovered that Mr. Balag has been committing fraud in the financial
reports that he is making. Mr. Balag warned Miss Lim that she should keep quiet and
mind her own business.
PROCESS QUESTIONS:
1. What is the flow of communication between Mr. Balag and Miss Lim? Support your
answer.
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2. Do you think Miss Lim should report this to their superiors? If you were Miss Lim what
will you do?
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b. Miss Kris works in the Auditing Department of company X. There are five members
in their group. Recently, Miss Kris’s colleagues are complaining about the lack of
competence and being too rigid of their team leader, Miss Bueno. Miss Kris proposed
that they sit down with Miss Bueno and discuss the problems with her; however, the
group disagreed and wanted to speak directly to their supervisor, insisting that Miss
Bueno is too uncompromising to listen.
PROCESS QUESTIONS:
1. What will be the flow of communication between staff to the Auditing Department and
the supervisor if they talk? Support your answer.
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
2. Do you agree that the group should report the problem to the supervisor, why or why not?
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c. Mr. Respicio is the unit head of the finance department. He noticed that one of his
disbursing officers, Paul has been habitually coming to the office 5-10 minutes late.
Mr. Respicio tolerated him at first, but when he noticed this somehow affected his
performance, he gave him a memo on his habitual tardiness. Paul showed
improvement the following days, but was late again after a week.
PROCESS QUESTIONS:
1. What is the flow of communication between Mr. Respicio and Paul? Support your
answer?
_____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
2. If you were Mr. Respicio, what will you do next? How will you communicate to Paul?
What do you think about his behaviour?
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____________________________________________________________________________
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1. As a Damean, how could you relate the core values NOTRE DAME in different
process of communication?
ACTIVITY 5: DO ME!
A luxurious car without gasoline is similar to a viable business without carefully managed funds.
Who needs a non-running vehicle that is good for display only? How can a business be successful without
the well-managed funds required for its operation and expansion? This is where controlling comes in.
Essentially, controlling is all about the acquisition of money and its useful disbursement. It requires
identification and reinforcement of the firm’s priorities and understanding how its operations are going to
ascertain where improvement is needed.
.
Activity 1– PRE-ASSESSMENT 1
Let’s find out how much you already know about this module. Please answer all items.
After taking this short test, you will see your score. Take note of the items that you were not
able to correctly answer and look for the right answer as you go through this module. Write
your answer in your own provided sheets. Entitle your work as Q2- Chapter 7 – Activity 1 –
Pre-Assessment.
Direction: Elimination. Four terms/items are given. Choose the letter that corresponds to the
term/items not related to the other three. Write your answer in your own provided sheets.
Lesson 7 . 1
Management control in marketing is the control that makes use of projected sales or
forecasts, statistical models, econometric modelling, surveys, historical demand data, and actual
consumption of their products.
A sale is considered to be the "lifeblood of the business." No matter how good the
product is, if it is not sold in the market, there is no way that a business can survive. Thus, the
projected sales often guide the sales manager or the marketing head on how much the target or
the quota must be.
The goal of businesses is to gain profit. In order to achieve this, managers need
accounting/financial controls. The following financial ratios will help managers analyze the
organization's financial condition.
C - ____________________________________________________________________
O - ____________________________________________________________________
N - ____________________________________________________________________
T - ____________________________________________________________________
R - ____________________________________________________________________
O - ____________________________________________________________________
L - ____________________________________________________________________
L - ____________________________________________________________________
I - ____________________________________________________________________
N - ____________________________________________________________________
G - ____________________________________________________________________
In earlier times, controlling was associated with the concept of just being a corrective action.
Present-day management, however, applies it as a foreseeing activity that sets standards in
determining actual performance to correct previous decisions or actions. Therefore,
management must focus on management control and the control process.
IMPORTANCE OF MANAGEMENT CONTROL
Management control makes sure that the firm’s operating cash flow is sufficient,
efficient, and, if possible, profitable when invested.
Working capital, when properly controlled, must be adequate enough for daily operations
such as financing, inventories, credit payments to suppliers, reinvestment of cash surplus, and
salaries of employees, or, in general, maintaining an acceptable capital structure. The decision to
seek funds should be appropriate, so as not to incur expenses since borrowing would be
subjected to payment of interest.
Spending without thinking of how it could be regained in the future could put any starting
business or even a well-established one in jeopardy. There should be a continuous monitoring of
the organization’s activities, followed by corrective actions based on previously planned
programs of action. Moreover, tasks should be completed with less errors. This could be
achieved by comparing tasks with previously set standards or with competitor’s standards or
standards prevailing in a particular industry setting.
Control techniques used for controlling financial resources, office management, quality
assurance, and others are essentially the same. The typical control process involves establishing
standards, measuring and reporting actual performance, and comparing it with standards, and
taking action.
Establishing standards means setting criteria for performance. Man- agers must identify
priority activities that have to be controlled, followed by determining how these activities must be
properly sequenced. In doing so, managers will be able to set key performance standards that
need to be achieved. The value chain, or the proper sequencing of activities needed to convert
the company’s raw materials into finished products, is a valuable instrument for helping
managers determine and establish key performance standards.
Measuring and reporting actual performance and comparing it with set standards is
essentially the monitoring of performance. To be able to do this, managers must develop
appropriate information systems which will help them identify, collect, organize, and
disseminate information. Managers are able to control facts and figures called data, and
information, which have been given meaning and considered to have value. Analyses of
data/information gathered measure actual performance and comparing it with set standards
serves as a means for detecting deviations. Deviations must be revealed as early as possible in
order to correct them.
Taking action involves the correction of deviations from set standards. This activity
clearly shows the control function of management. Managers may rectify deviations by
modifying their plans or goals, by improving the training of employees, by firing inefficient
subordinates, or by practicing more effective leadership techniques.
METHODS OF CONTROL
A firm may apply control techniques or methods which are either quantitative or non-
quantitative.
QUANTITATIVE METHODS
a. Quantitative methods make use of data and different quantitative tools for monitoring
and controlling production output. Budgets and audits are among the most common
quantitative tools.
The most widely recognized quantitative tool is the chart. Charts used as control tools
normally contrast time and performance. The visual impact of a chart often provides the
quickest method of relating data. A difference in numbers is much more noticeable when
displayed graphically.
1. Budgets. The budget remains the best known control device. Budget and control are, in
fact, synonymous. An organization’s budget is an expression in financial terms of a plan
for meeting the organization’s goals for a specific period. A budget is an instrument of
planning, management, and control.
Budgets are used in two ways: to establish facts that must be taken into account during
planning and to prepare a description and financial information to be used by the chain of
command to request for and manage funds. At present, two major budget systems are used;
these are zero-based budgeting (ZBB) and the planning, programming, and budgeting system
(PPBS).
2. Audits. Internal auditing involves the independent review and evaluation of the
organization’s non-tactical operations, such as accounting and finances. As a
management tool, the audit measures and evaluates the effectiveness of management
controls. Audit service provides an independent audit of programs, activities, systems,
and procedures. It also provides an independent audit of other operations which involve
the utilization of funds and resources as well as the fulfilment of management goals.
FIGURE 7.2 A chart showing sales trends is among the quantitative tools used in organizations.
NON-QUANTITATIVE METHODS
Management control in accounting and finance is the control that makes use of the
balance sheet, income statement, and cash flow statement to analyze and examine financial
statements in order to deter- mine the company’s financial soundness and viability, as well as
financial ratios to determine the company’s stability. On the other hand, management control in
marketing is the control that makes use of projected sales or forecasts, statistical models,
econometric modelling, surveys, historical demand data, and actual consumption of their
products.
Sales are considered to be the “lifeblood of the business.” No matter how good the
product is, if it is not sold in the market, there is no way that a business can survive. Thus, the
projected sales often guide the sales manager or the marketing head on how much the target or the
quota must be. In a way, this will also serve as a guide for the operations manager in
determining the number of units to be produced. Excess production may mean cost, and unsold
items may resort to inventory expenses or worse, the obsolescence or degradation of the
product. Indeed, the sales forecast requires consideration.
For more established businesses, or those that had been in the industry for quite some time,
the most commonly used technique is to look at the historical demand and actual consumption,
with the assumption of the same economic condition.
A firm may generate a set of assumptions regarding the macroeconomic environment to
which all divisions must adhere as their guide, but forecasts can still be generated from the
customer level and taken into account. Some firms produce two sets of forecasts, one that uses a
statistical approach and another that relies on customer feedback. Senior managers then
compare the two forecasts to see how far apart they are before setting a final sales objective.
The goal of businesses is to gain profit. In order to achieve this, managers need
accounting/financial controls. Managers must also analyze the organization’s financial
condition, which is done with the help of the following financial ratios.
a. Liquidity ratio – tests the organization’s ability to meet short term obligations; it may
also refer to acid tests done when inventories turn over slowly or are difficult to sell.
current ratio = current assets ÷ current liabilities
b. Leverage ratio – determines if the organization is technically insol- vent, meaning that
the organization’s financing is mainly coming from borrowed money or from the owners’
investments.
debt-to-assets ratio = total debt ÷ total assets
c. Activity ratio – determines if the organization is carrying more inventory than what it
needs; the higher the ratio, the more efficiently inventory assets are being used.
inventory turnover = cost of goods sold ÷ average inventory
d. Profitability ratio – determines the profits that are being generated;
net profit after taxes ÷ total sales
STRATEGIC CONTROL
As mentioned earlier, planning and controlling are closely related. Strategic plans serve
as control points for strategic control—a systematic monitoring at control points that leads to
change in the organization’s strategies based on assessments done on the said strategic plans.
Control provides a chance for comparing the plan’s intended goals with the actual organizational
performance. This becomes the basis for modifications in the firm’s strategies.
BENCHMARKING
a.) strategic benchmarking which compares various strategies and identifies the key strategic
elements of success;
b.) operational benchmarking which compares relative costs or possibilities for product
differentiation; and
c.) management benchmarking which focuses on support functions such as market planning
and information systems, logistics, and human resource management, among others.
Many companies use benchmarking. Some prefer to benchmark only the top 10 or the
best companies in their particular industry. Others benchmark best global practices and go
further away from their own industry and reason out that their goal is competitive superiority
and not just competitive parity.
The benchmarking process begins with determining which company functions are to be
benchmarked and the key performance indicators to be measured. Then, the best industry
performers have to be identified. Data gathering and analysis follows and these become the
foundations for performance goals. New programs are implemented, and during this step,
performance is measured at regular intervals.
Corrective actions are taken to close the gap between the organization and the best-in-
class companies. The monitoring of results must be continuous to ensure benchmarking success.
PROCESS QUESTIONS:
B. Explain briefly the relationship between strategic plans and strategic controls.
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ACTIVITY 5: MY IDEA!
DIRECTION: Let us apply the formulas of Accounting/Financial Control Ratios. Show your
solution in every problem. Write your answer in your own provided sheets. Entitle your work as
Q2 – Lesson 7.1 – Activity 5 – My Idea.
1. Identify the Activity ratio of a computer shop if its Cost of Goods Sold is P12 million
and the Average Inventory is P24 million.
2. What is the Current ratio of a Department store located in Cagayan Valley? Its current
assets amount to P6 million while its current abilities are at P2 million. Analyze and
interpret your answer.
3. Compute the return on investment of a Grocery store's if its net profit after taxes is P10
million and its total assets is P100 million. Analyze and interpret your answer.
1. As a Damean, how could you relate the core values NOTRE DAME in solving
Accounting/Financial Control Ratios?
ACTIVITY 7: DO ME!
DIRECTION: Please refer to the information below. Show your complete solutions. Write
your answer in your own provided sheets. Entitle your work as Q2 – Lesson 7.1 – Activity 7 –
Do Me.
Cagayan Valley Agri. Corp.
Statement of Financial Position
January 31, 2020
ASSETS
Cash P5,000
Receivables 10,000
Inventory 15,000
Land & Building 150,000
Equipment 100,000
Total Assets P280,000
LIABILITIES AND OWNERS EQUITY
Current Liabilities
Accounts Payable P5,000
Notes Payable 10,000
OWNERS EQUITY
Capital P15,000
Net Income 250,000
PROCESS QUESTIONS:
CHAPTER 8:
INTRODUCTION TO THE DIFFERENT FUNCTIONAL AREAS OF
MANAGEMENT
To prepare you to become future leaders and managers, you must become familiar with the
functional areas of management—Human Resource Management, Marketing Management, Operations
Management, Financial Management, and Information and Communication Technology Management. In
doing so, you will be ready for the local and global challenges that you will inevitably meet in tomorrow’s
workplace. Managerial and leadership functions are essentially the same because all these aim to establish an
environment for the effective and efficient performance of individuals and cooperate with one another in
teams/groups of different organizations. Therefore, reading and understanding this chapter will be beneficial to
all persons who will one day join organizations—not just business companies but also nonbusiness
organizations such as government, educational and health care institutions, and other nonprofit
organizations.
.
Activity 1– PRE-ASSESSMENT 1
Let’s find out how much you already know about this module. Please answer all items.
After taking this short test, you will see your score. Take note of the items that you were not
able to correctly answer and look for the right answer as you go through this module. Write
your answer in your own provided sheets. Entitle your work as Q2- Chapter 8 – Activity 1 –
Pre-Assessment.
IDENTIFICATION: Direction: Identify what is being asked below. Write your answer in
your own provided sheets.
Lesson 8 . 1
B. MARKETING MANAGEMENT
As marketing expert Philip Kotler puts it, marketing management “is essentially
demand management.” This is because it involves “influencing the level, timing, and
composition of demand” so that an organization may reach its goals.
Analyses of demand management starts with the gathering of data through marketing
research. Activities under marketing planning include decision-making on target markets,
market positioning, product development, pricing, distribution channels, physical distribution,
communication, and promotion. The implementation of the marketing plan is formally carried
out by sales managers, sales people, advertising and promotion managers, and customer service
managers.
Controlling refers to monitoring of the marketing plan’s progress. Goals and budgets are
set for each month or quarter. A review of the results follows in order to identify businesses that
are not attaining their goals. Managers of unsuccessful businesses must explain what the
problem is and propose contingency plans that the management has to take in response to such
negative developments.
Analyze, plan, and implement marketing programs that aim to bring about an expected
level and mix of business deals with target markets. It is important that analysis and planning
precede the implementation of the marketing program, in order to ensure that its aim will be
achieved. Strategic planning for individual business entails defining the business mission, analyzing
the business’ external and internal strengths and weaknesses, and formulating goals and
strategies. In doing so, the implementation of the marketing program will go smoothly and the
chances that it will achieve its aim of bringing an expected level and mix of business deals with
target markets will be increased.
Stimulate demands for the products of the company. This is achieved by influencing the
level, timing, and composition of demand, bearing in mind the attainment of the company’s
objectives.
Make crucial decisions that will ensure the company’s competitiveness. These are decisions
regarding target markets, development of products, distribution of goods, market positioning,
and setting of right prices for their products.
Make sure that marketing techniques employed are efficient, effective, and socially
responsible or ethical. Marketing managers and their team members must balance their own
best interests (big sales commissions, recognition, or promotion) with the best interests of their
company, consumers, and society.
C. OPERATIONS MANAGEMENT
Business managers today focus on productivity, technology use, quality of goods and
services, customer satisfaction, and speed. They are conscious that they need to innovate on
their processes and activities in order to succeed in a highly competitive globalized market.
Because of these needs, the operations management functions of management must include the
following:
a. Overseeing the transformation processes that change resources into finished goods and
services. In order to do this, managers must address resource acquisition inventories,
facilities, work flows, technologies, and quality. In doing so, productivity and
competitive advantage will be ensured as they accomplish the multiple processes that
transform the various resources—in the form of people, material, equipment, and capital
—into quality finished products and services.
b. Improvement of productivity and competitive advantage. Productivity measures the
efficiency by which inputs are turned into outputs. The basic equation for productivity is:
c. Managing the sequence of activities and information along the whole course of the
value chain. Proper management of these activities and information results in the
creation of finished products and services that have value to customers. Elements in an
organization’s value chain include inflow of resources and materials, organizing of
resources and materials, creating goods or services, distributing finished products or
services, and serving of target customers.
Through the study of the essentials of operations management, businesses of different types
and sizes may increase their chances for survival and success in today’s business environment
which is characterized as highly competitive and fast-paced in producing quality products and
services.
D. FINANCIAL MANAGEMENT
Gaining profit is the main goal of businesses. To attain this goal, managers must
practice good financial management and this, of course, starts with understanding the
financial management functionsof management. These functions include:
Taking charge of the company’s financial policies and strategies, investments, capital
structures, and dividend policies. Financial man- agers of organizations must formulate sound
financial standing plans that will communicate broad guidelines for their financial decisions and
strategies. These plans include typical financial policies that address the organization’s
investments, capital structures, and dividend policies. Investment policy covers choice of product
lines and capital project. Capital structure policy covers a working capital policy (for the balancing
of assets and liabilities) and leverage policy (for balancing long-term financing). Dividend policy
considers the use of either a systematic pattern of earnings retention or dividend distribution.
Financial management and control. The management and custody of the organization’s
funds also include control which gives an assurance that funds are properly utilized in order to
provide for all the organization’s needs. Examples of standard financial management and control
practiced by organizations are the following: project management, which makes sure that long-
term projects are implemented according to previously planned budgets and checks if these have
yielded forecasted cash returns; working capital management, which includes cash, accounts
receivable, and inventory management; cash management, which gives an assurance that there is
enough cash balance that may be used for daily operating needs, that idle cash is invested
through marketable securities, and that proper cash control rules are instituted; and accounts
receivable management, which ensures the optimization of accounts receivable investments and
the formulation of sound credit evaluation and collection procedures. Meanwhile, inventory
management determines inventory levels by making maximum use of trade-off between inventory
carrying cost, ordering cost, and lost sales opportunities; it also institutes good stable inventory
control procedures. Fund sources management identifies short-and long-term funds that may be
available, and transacts and keeps watch of credit facilities with banks and other financial
institutions. Dividend policy implementation determines the form and amounts of dividends and
schedules their payments.
Financial planning. Financial planning is the process of setting financial objectives and
determining what should be done to accomplish them. This includes financial forecasting,
financial analysis, and financial performance evaluation.
Financial forecasting involves cash budgeting, profit planning, and balance sheet
forecasting. Cash budgeting is a forecast of cash needs and sources. Profit planning is a forecast of
revenues and expenditures. Balance sheet forecasting considers future assets, liabilities, and the
organization’s net worth position. On the other hand, financial analysis involves capital
budgeting techniques, operating leverage analysis, financial leverage analysis, and analysis of
pricing and costs. Capital budgeting involves the assessment of long-term investments.
Operating leverage analysis critically examines cost-volume profit relationships. Financial
leverage analysis studies the effect of debt on income to the organization’s common stockholders.
Analysis of pricing and costs of products, materials, sup- plies, and production/manufacturing
also fall under financial analysis. Financial performance evaluation refers to the assessment of
financial ratios to indicate the overall performance of the organization, as well as the
assessment of market-wide financial indicators.
The widespread use of ICT has brought about the emergence of a “knowledge-based society”
due to easy access to information at low costs through the Internet. Management may use it for its
different managerial functions. It may be used for scenario planning or identifying future
scenarios in the business environment, which may need careful planning; decision-making
through the use of information generated by IT; aiding team work; facilitating productivity
measurement; easy, low-cost communication; worldwide selling through the Internet; and many
others. It may be said, therefore, that ICT has revolutionized the business world.
ACTIVITY 4: LET’S LEARN MORE
DIRECTION: Recall the nature and roles of the different functional areas of management and
answer the crossword puzzle below. Write your answer in your own provided sheets. Entitle
your work as Q2 – Lesson 8.1 – Activity 4 – Let’s Work and Learn More.
Horizontal Vertical
2. health care, educational, and vacation leave 1. settle differences between labor and management
3. stimulation of demands for company product 4. bonuses
7. important in attracting qualified applicants 5. most important resource of management
6. the desirability of commercial products for sale
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7
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ACTIVITY 5: MY REFLECTION!
DIRECTION: Let us apply your learning in the discussion above. Write your answer in your
own provided sheets. Entitle your work as Q2 – Lesson 8.1 – Activity 5 – My Reflection.
1. As a Damean, how could you relate the core values NOTRE DAME in different
functional areas of management?
ACTIVITY 7: DO ME!
DIRECTION: Explain the questions below. Write your answer in your own provided sheets.
Entitle your work as Q2 – Lesson 8.1 – Activity 7 –Do Me.
1. As a part of the company’s management team. How are you going to manage your people
so that they can earn a living and feed their families without risk their health in the midst
of the pandemic?
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
PROCESS QUESTIONS:
1. How does management work?
2. Among the functional areas of management, which one is the most important?
3. If one, two, or three functional areas of management disappears, will each department
still able to maintain a good working relationship?
CHAPTER 9:
SPECIAL TOPICS IN MANAGEMENT
Activity 1– PRE-ASSESSMENT 1
Let’s find out how much you already know about this module. Please answer all items.
After taking this short test, you will see your score. Take note of the items that you were not
able to correctly answer and look for the right answer as you go through this module. Write
your answer in your own provided sheets. Entitle your work as Q2- Chapter 9 – Activity 1 –
Pre-Assessment.
FILL-IN-BLANKS: Direction: Identify what is being asked below. Write your answer in your
own provided sheets.
Lesson 9 . 1
SMALL BUSINESS MANAGEMENT AND ENTREPRENEURSHIP
Business opportunities are waiting for people who have creative and innovative minds.
However, following a systematic process is crucial in the pursuit of entrepreneurial ventures.
Moreover, business success is also determined by certain traits that are required of an
entrepreneur.
For us to come up with new strategies and great ideas that will lead us to successful
achievement of our goals, we must be innovative, creative and intuitive in business
management which are valuable in a highly competitive and ever changing business world. It
also addresses the need for the creation of new products and development of new services for
society’s benefit.
______A. Develop a Business Plan- defined as the road map which the business must follow
utilizing the resources at hand while keeping the environment in mind.
______B. Find the Target Market- use of statistical tools to decide which of the whole market
they can serve in the best possible manner.
______C. Formulate the business vision and mission statement- vision provides where the
business venture in the future and mission states its basic purpose and scope of
operation.
_____D. Implement and Monitor the Business Venture- follows after careful business
planning, choosing the right people, considering the correct timing of business
implementation and monitoring business ventures progress.
______E. Maximize The Utilization of Business Ventures. Considering ways on how to
finance the business by debt or equity financing. Human and physical resources must
also be fully utilized.
______F. Segment the market- identifying specific groups to cater by geographical,
demographical, psycho-graphical, or behavioral.
______G. Understand the environment- internal or external factors that may cause changes
that may greatly impact the business. External factors have two types:
microenvironment and macro-environment.
Business opportunities are waiting for people who have creative and innovative minds.
However, following a systematic process is crucial in the pursuit of entrepreneurial ventures.
This entrepreneurial procedure involves the following steps:
1. Formulate the business vision and mission statements. The business vision of the
organization provides a picture of where the entrepreneurial venture is headed and what
the organization can become in the future. Its mission states the basic purpose and scope of
the organization’s operations.
2. Segment of the Market. A business cannot entertain or offer goods and services to
society at the onset in a large scale. It first must identify a specific segment or group of
people it may cater to or what is called a target market. The basis for segmenting the
market to find the target market may be geographical, demographical, psycho-graphical,
or behavioral.
Internal factors are environmental factors within the company and can be controlled.
These include the employees, management, physical facilities, and so on. On the other hand,
external factors have two types: microenvironment and macro-environment. Microenvironment
includes customers and suppliers, whereas macro-environment includes economic, sociocultural,
technological, legal, political, and natural factors, as stated by Kotler (1997).
5. Develop the Business Plan. We can define a business plan as the roadmap which the
business must follow utilizing the resources at hand while keeping the environment in
mind. A business plan has the following contents:
a. executive summary – contains the overview of the business and its major plans
b. environmental analysis – includes study of internal and external organizational
surroundings
c. industry analysis – includes study of trends in the economy, legal requirements, and
possible risks
d. market analysis – includes analysis of market size, business competitors’
strengths/weaknesses, and short-term sales goals
e. company description – mentions ownership, mission and vision of the
organization, registration legalities, etc.
f. marketing and sales activities – strategies for distribution, promotion, and pricing
of products/services
g. products and services – refers to descriptions of good/services and their unique
features
h. operation – refers to descriptions of manufacturing and service methods, supplies and
suppliers, and control processes
i. management and ownership – refers to identification of owners and
administrators
j. financial data – includes capital needs, financial projections for one to five years,
available funds, and possible loan services
k. time table – refers to estimated completion dates of ventures
Business planning is important as it helps minimize business risks and expenses needed
for the production of goods and carrying out services. It may also determine financial
requirements and programs of activities in advance.
Implement and Monitor the Business Venture. This step follows after careful business
planning. Choosing the right people to work with and considering the correct timing for the
business implementation are important. Monitoring the business venture’s progress is also a
must to check if its implementation is proceeding in the right direction or if modifications are
needed along the way.
Maximize the Utilization of Business Resources. Consider the basic ways of financing
business ventures such as debt financing by taking loans from reputable institutions and equity
financing which exchanges ownership shares in return for an outside investment if additional
capital is needed. Human resources and other material or physical resources must also be fully
utilized.
Aside from the procedure mentioned above, business success is also determined by
certain traits that are required of an entrepreneur. Some of these entrepreneurial characteristics
are listed below. Entrepreneurs must be:
Creative and Innovative. Entrepreneurs must have a creative and innovative mindset
and must think out of the box to survive competition and at the same time have competitive
advantage over rival organizations. These are the characteristics that differentiate entrepreneurs
from businessmen.
Good planners. Planning, on the part of the entrepreneur, bridges the gap between where
they are and where they want to go. In other words, it shows the right business direction that
would lead them to success.
Persistent. There is no shortcut to success, and that is why it takes time to attain the
objectives of the company. In the long run, things will not always fall under the control of the
business managers. During times of change and hardship, the entrepreneur must not give up,
especially when things are not favorable for business. Entrepreneurs must be persistent until
their goals are achieved.
Confident. Entrepreneurs must be confident about their own abilities, together with the
abilities of their other team members. They must think positively and believe in their
capabilities and they must not doubt that they can accomplish the most challenging tasks at
hand.
Organized. Entrepreneurs must be well-organized when it comes to all activities of the
business. A well-organized entrepreneur makes sure that their organizational structure furnishes
an environment where individual performance, both present and future, contributes effectively
and efficiently to group endeavors.
Team players. Entrepreneurs must be able to work well with others. In unity, there is
strength; good coordination with others will ensure business success.
Knowledgeable. Entrepreneurs must have expert knowledge about the product or service they
want to sell, their competitors, and local/regional/ national markets so that they will have better
chances of succeeding.
Risk-takers. Entrepreneurs are not afraid of risks and are ready to meet business
challenges. However, they prefer calculated risks since they are aware that business
undertakings may result in either success or failure, profit or loss.
ACTIVITY 5: MY REFLECTION!
DIRECTION: Let us apply your learning in the discussion above. Write your answer in your
own provided sheets. Entitle your work as Q2 – Lesson 9.1 – Activity 5 – My Reflection.
1. Explain in 8-10 sentences, if you want to pursue an entrepreneurial venture in the future,
what form would you like to establish? Why?
ACTIVITY 6: LET’S DO THIS…
DIRECTION: In five sentences, answer the question below. Write your answer in your own
provided sheets. Entitle your work as Q2 – Lesson 9.1 – Activity 6 – Let’s Do This.
1. As a Damean, how could you relate the core values NOTRE DAME in
entrepreneurship?
ACTIVITY 7: DO ME!
DIRECTION: Explain the questions below. Write your answer in your own provided sheets.
Entitle your work as Q2 – Lesson 9.1 – Activity 7 –Do Me.
REFLECTION:
1. For me entrepreneurship is _____________________________________________
_______________________________________________________________________
_______________________________________________________________________
2. Its benefits and contributions to the society are __________________________________
_______________________________________________________________________
_______________________________________________________________________
3. Entrepreneurial procedures includes: _____________________________________
_______________________________________________________________________
_______________________________________________________________________
4. Entrepreneurial characteristics are: ______________________________________
_______________________________________________________________________
_______________________________________________________________________
5. The benefits/advantages of complying with government legal requirements of starting a
business are ________________________________________________________
_______________________________________________________________________.
GODBLESS YOU!
MAAM JHOY