OrgAndMngt SHS 2nd Quarter

DIVISION OF NAVOTAS CITY
Organization and
Management
(Quarter 1)
First Semester
S.Y. 2021-2022
NAVOTAS CITY PHILIPPINES
Organization and Management for Senior High School
Alternative Delivery Mode
Quarter 1 and 2
Second Edition, 2021
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Published by the Department of Education

Secretary: Leonor Magtolis Briones
Undersecretary: Diosdado M. San Antonio
Development Team of the Module
Writer: Caroline D. Nepomuceno

Editor: Lisa D. Escoto
Reviewer: Belinda I. Salazar
Illustrator: Eric De Guia, BLR Production Division
Layout Artist: Grace R. Nieves
Management Team: Alejandro G. Ibañez, OIC- Schools Division Superintendent
Isabelle S. Sibayan, OIC- Asst. Schools Division Superintendent
Loida O. Balasa, Chief, Curriculum Implementation Division
Grace R. Nieves, EPS In Charge of LRMS/EPP-TLE-TVL
Lorena J. Mutas, ADM Coordinator
Vergel Junior C. Eusebio, PDO II LRMS
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MODULE 6
In this module you will learn that planning can be more effective by using
different techniques, and tools and having a good business decision-making.
In this lesson various quantitative and scientific techniques will be discussed
to aid the manager in his planning process. And these techniques can also be used
in in the decision- making process.
This module is mainly focused on one module, specifically:
 Lesson 6 – Planning Techniques and Tools and their applications

and Decision making
Learning Competency:
 Apply appropriate planning techniques and tools and business decision
making
(LC Code: ABM _AOM11-Ie-g-13)
At the end of this lessons, you are expected to:
1. apply appropriate planning techniques and tools;
2. understand the decision-making process; and
3. formulate a decision from several alternatives.
Lesson Planning Techniques, Tools and

6 Business Decision Making
PLANNING TECHNIQUES AND TOOLS AND THEIR APPLICATIONS

There can be different types of goals with varying degrees of importance and
timespans. But one thing that remains common is devising a plan that is efficient
enough to help achieve these goals. Creating an effective planning tool will be
possible to achieve goals.
In your professional and personal lives, you would have certain objectives.
Planning allows you to convert your targets into achievements. It helps you devise a
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mechanism and chart a course for reaching your set goals. Hence, the importance
of planning is paramount, and it requires an in-depth understanding of the
requirements in terms of resource allocation and time management.
For effective planning in today’s dynamic environments, different techniques
and tools must be used, such as:
1. FORECASTING according to Schermerhorn (2008) forecasting is an attempt to
predict what may happen in the future.
 All planning types without exception, make use of forecasting.

 Under this technique, past and present or current information is used to
predict future events or conditions.
 Forecasts used may either be quantitative or qualitative
Quantitative forecast used mathematical calculations and statistical
analyses of surveys or research.
Qualitative forecast based on opinions of prominent economist.
However, these are just aids for planning, forecasts are predictions and may
be inaccurate, at times due to errors of human judgment.
2. CONTINGENCY PLANNING contingency factors may offer alternative courses of

action when the unexpected happens or when things go wrong.
 Contingency plans must be prepared by managers ready for
implementation when things do not turn out as they should be.
 Contingency factors called “trigger points” indicate when the prepared
alternative plan should be implemented.
3. SCENARIO PLANNING is a planning for future states of affair s is a long-term

version of contingency planning.
 Alternative plans must be prepared in order to meet changes or challenges in
the future.an organization can make necessary adjustments in their
strategies ang challenges in the future.
 Some challenges and changes that may arise in future scenarios like:
environmental pollution, human rights violations, climate and weather
changes, earthquake damages to communities, and others.
4. BENCHMARKING a planning technique that generally involves external
comparisons of a company’s practices and technologies with those of other
companies.
 External benchmarking is to search for best practices used by other
organizations that enabled them to achieve superior performance.
 Internal benchmarking is also a practiced by some organizations when they
encourage all their employees working in their different work units to learn
and improve by sharing one another’s best practices.
5. PARTICIPATORY PLANNING is a planning process that includes the people who

will be affected by the plans and those who will be asked to implement them in all
planning steps.
Other planning techniques and tools that can be used:
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 MANAGEMENT BY OBJECTIVES (MBO) Peter Ducker used this term in
1954 and applied it is an approach to planning. MBO drawn a great deal of
attention among the academics and practitioners. MBO is an approach to
management initiative and prevent working at cross -purposes, or indeed,
for no purpose at all. It is a way to help managers accomplish their job
within the framework of organization needs and resources.
 BREAK EVEN ANALYSIS -break even charts are used for planning purposes
and almost every manager makes a profit plan and break- even analysis is
useful in developing it.
Using the break-even charts, a break-even point, that is, the point at which
total cost equal total revenue, can be determined. Using this chart, a
manager can say whether the company can sell enough products to break-
even and plan accordingly.
Figure 6.1 Break-even Chart
 Some organizations use Gantt Chart to properly schedule production processes and
allocate resources
Figure 6.2 Gantt Chart
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DECISION-MAKING
Decision-making is the process of choosing a specific procedure or course of

action from among several possible alternatives. In the business world, a great
investment in time, economy, effort, personnel, and materials may be involved in
arising at a decision. The extent to which these things are involved, as well as the
total effect of their involvement, depend on the business level at which the decision
is made.
TYPES OF DECISIONS
1. Structured or programmed decision- a decision that is repetitive and can be
handled using a routine approached.
Example: A restaurant customers complains about the dirty utensils the waiter
has given him. This is not an unusual situation, and therefore, standardized
solutions to such problem may be readily available.
2. Unstructured or nonprogrammed decisions- applied to the resolution of

problems that are new and unusual, and for which information is incomplete.
Example: Increase in advertising expenditure, effective salesmanship, upgraded
technology, quality controls, brand image and reasonable prices are expected to
increase sales and profits. If, despite all this, profits are declining, it requires
immediate decision-making and such decisions are non-programmed decisions.
TYPES OF DECISION-MAKING CONDITIONS

1. Certainty conditions- ideal conditions in deciding problems; these are situations
in which a manager can make precise decisions because the results of all
alternatives are known.
2. Risk or uncertainty conditions -compel the decision maker to do estimates
regarding the possible occurrence of certain outcomes that may affect his or her
chosen solution to a problem.
THE DECISION - MAKING PROCESS ACCORDING TO ROBBINS AND COULTER
Step 1: Identify the Problem
The problem may be defined as a puzzling circumstance or a discrepancy between
an existing and a desired condition.
Step 2: Identify the Decision Criteria

These are important or relevant to resolving the identified problem.
Step 3: Allocate Weights to the Criteria

This is done in order to give the decision-maker the correct priority in making the
decision.
Step 4: Develop Alternatives
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Requires the decision-maker to list down possible alternatives that could help
resolve the identified problem
Step 5: Analyze the Alternatives

Alternatives must be carefully evaluated by the decision-maker using the
criteria identified In step 2.
Step 6: Select an Alternative

The process of choosing the best alternatives or the one which has the highest total
points in Step 5
Step 7: Implement the chosen Alternatives

This step puts the decision in action.
Step 8: Evaluate Decision Effectiveness

The last step and involves in the evaluation of the outcome or result of the decision
if the to see if the problem was resolved.
Directions: Analyze each situation and identify what type of decision to be

used. Write PD if Programmed decision and NPD for Nonprogrammed
decision. Use the given chart as your guide.
Characteristics Programmed Nonprogrammed

Decision Decisions
Type of problem structured unstructured
Managerial level lower level upper level
Frequency repetitive new, unusual
Time frame for solution short Relatively long
Solution relies on procedures, rules and judgment and creativity
policies
1. Investing in a new unproven technology

2. Acquiring a company
3. Reorder office supplies
4. Employee coming in late habitually
5. Periodic reorder of inventory
6. Changing strategies direction
7. Moving into new market
8. Monthly preparation of expense reports
9. Expansion of business
10. Counting and balancing cash every morning before any cash
transactions.
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ACTIVITY 6.1 CASE STUDY: DECISION- MAKING
Attorney Lorna Corona was the general manager of their family- owned
publishing company. Subordinates described her as an ideal boss who knew the “ins
and outs’ of their business, who focused on long-term concerns of their company,
emphasizing maintenance of stability, development, progress, and overall efficiency
and effectiveness. She too, exhibited emotional intelligence that enabled her to
maintain interpersonal relationships with everyone, in both internal and external
environments of their organization. Since everyone was happy and satisfied, their
company succeeded in achieving their goals. In1999, Lorna had to give up her
position because of severe injuries she suffered after a vehicular accident. Her
parents gave the task of managing their company to her younger brother, Gerald who
was her assistant general before the said vehicular accident.
Despite being knowledgeable in managing their publishing company, Gerald
did not show emotional intelligence. He often had conflicts with other managers and
subordinates: lacked good relations with customers and other companies’ managers;
and could not calm himself quickly when angry and under pressure during
problematic situations. These circumstances caused dissatisfaction among the
employee of their company, hence affecting their efficiency and productivity. Other
stockholders, too, were negatively affected. In 2009, their company had to close the
shop.
QUESTIONS:
1. Examine your tendencies. Do you have emotional intelligence? Explain your
answer.
2. Can you identify problem? State the problem.
3. Can you recommend at least three solutions in this case?
Alternative 1 or Solution 1
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4. Among the three alternatives or solutions which one will you recommend? Why?
Explain your answer briefly.
MODULE 7
In this module after planning, organizing follows. The goals and objectives
established during planning will all go to waste without effective organizing.
In this lesson, Organizing is undertaken to facilitate the implementation of
plans. The manager needs to acquire various skills in management including those
for organizing business activities.
This module mainly focused on one lesson, specifically:
 Lesson 7 – Nature of Organization and Types of Organization Structures.

 Analyze the nature of organizations and types of organization structures
(LC Code: ABM _AOM11-IH-j-15)

1. discuss the nature of organizations;
2. distinguish the various types of organization structures; and
3. understand the significance of organization structures for effective

business management.
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Lesson
7 Organizing
NATURES OF ORGANIZATIONS AND TYPES OF ORGANIZATION

STRUCTURES
To function well, organization structures an and their specific roles must be
understood by all members of the organization. Rules and regulation principles
must also put into practice. However, the organizing depends on the specific
situation of the firm.
Although there are differences of interpretation as to the exact nature of
organization. It is undeniable fact that the proper organization is the backbone
of the successful enterprise, the solid foundation upon which the entire business
is built.
All business enterprises, irrespective of their forms, require organization for
their economic operation and smooth running of business. The larger the size of a
business, the more complicated and formal becomes the task of organizing.
What is an organization?
 Organization is the structure in which harmonious inter-relationship of

functions and personnel is created through the process of grouping the work
to be performed, allocating duties and responsibilities, and delegating
authority for the purpose of realizing the objectives of the enterprise.
 Organization is the “executive structure of the business”. according
to Webster.
What is Organizing?
 Organizing is a management function which involves assigning of tasks,
allocating of resources, and coordinating work activities in order to achieve a
common purpose.
 Organizing is the process of grouping together men establishing
relationships among them, defining authority and responsibility of personnel
by using the company’s basic resources to attain predetermined goals or
objectives.
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NATURE OF ORGANIZATIONS
1. PROCESS
The framework provides the means for assigning activities to various parts and
identifying the relative authorities and responsibilities of those parts. In simple
term, organization is the process by which the chief executive, as a leader, groups
his men to get the work done.
2. STRUCTURE
The function of organizing is the creation of a structural framework of duties and
responsibilities to be performed by a group of people for the attainment of the
objectives of the concern. The organization structure consists of a series of
relationships at all levels of authority.
3. DIVIDING AND GROUPING THE ACTIVITIES

Activities of an enterprise are required to be distributed between the departments,
units or sections as well as between the persons for securing the benefits of
division of labor and specialization and are to be integrated or combined for giving
them a commonness of purpose.
4. ACCOMPLISHMENT OF GOALS OR OBJECTIVES

An organization structure has no meaning or purpose unless it is built around
certain clear-cut goals or objectives. In fact, an organization structure is built-up
precisely because it is the ideal way of making a rational pursuit of objectives.
5. AUTHORITY-RESPONSIBILITY RELATIONSHIP
An organization structure consists of various positions arranged in a hierarchy
with a clear definition of the authority and responsibility associated with each of
these.
6. HUMAN AND MATERIAL ASPECTS

Organization deals with the human and material factors in business. Human
element is the most important element in an organization. To accomplish the task
of building up a sound organization, it is essential to prepare an outline of the
organization which is logical and simple. The manager should then try to fit in
suitable men.
Difference between organizational structure and organizational chart

ORGANIZATION STRUCTURE is a system made up of tasks to be accomplished,
work movements from one work level to other work levels in the system, reporting
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relationships, and communication passageways that unite the work of individual
persons and groups.
ORGANIZATIONAL CHART shows the different positions in the firm and its
hierarchical arrangement for dividing labor and providing a picture of the reporting
structure.
 It is a diagram or drawing showing the important aspects of an
organizational structure.
 It shows the relationship among positions as to authority, responsibility and
accountability, and the people who occupy them.
TYPES OF ORGANIZATIONAL STRUCTURES INCLUDE:

a. Vertical structure
b. Horizontal structure
c. Network structure
A. VERTICAL STRUCTURE
 According to Bateman and Snell (2008), a vertical structure clears out issues
related to authority rights, responsibilities, and reporting relationship.
 Authority rights refers to the legitimate rights of individuals, appointed in
positions like president, vice president, manager, and the like to give orders
to their subordinates, who in turn, report to them what they done. Owners of
private business companies have absolute authority, even if other persons
are appointed as managers in their companies.
 Besides chairman of the board, a chief executive officer (CEO) is appointed to
occupy the top post in the organization.
 Below the top -level managers are the middle-level managers in charge of
departments who, as earlier mentioned, report to them.
 Under the middle-level managers are the lower -level managers which
include office managers, sales managers, and supervisors who directly report
to the former.
 Employees under the lower mangers also have reporting relationships with
their respective department managers.
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Figure 7.1 Organizational Chart with Vertical Structure
B. HORIZONTAL STRUCTURE refers to the departmentalization of an organization

into smaller work units as tasks become increasingly varied and numerous.
TYPES OF DEPARTMENTS
1. Line departments – deal directly with firm’s primary goods and services;
responsible for manufacturing, selling, and providing services, to the clients.
2. Staff departments- support the activities of the line department by doing
research, attending to legal matters, performing public relations duties, etc.
DEPARTMENTALIZATION results from grouping of work, the desire to obtain

organization units of manageable size, and to utilize managerial ability.
Examples: Accounting Department, Sales Department, Auditing Department
DEPARTMENTALIZATION may be done using three approaches
a. Functional approach -where the subdivisions are formed based on

specialized activities such as marketing, production, financial
management and human resource management.
Figure 7.2 Organizational Chart with Horizontal Structure- Functional approach
b. Divisional approach – where departments are formed based on

management of their products, customers, or geographic areas covered.
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Figure 7.3 Organizational Chart with Horizontal Structure -Divisional approach- by Geographic
Figure 7.4 Organizational Chart with Horizontal Structure-Divisional approach by product
c. Matrix approach- is a hybrid form of departmentalization where managers

and staff personnel report to the superiors, the functional managers, and
divisional managers.
Figure 7.5 Organizational Chart with Horizontal Structure- Matrix
C. NETWORK STRUCTURE - is a collection of independent, usually single function

organizations/companies that work together in order to produce a product or
service. Such network organizations are each capable of doing their own specialized
work activities independently, like producing, distributing, designing, etc. but can
work effectively at the same time with other network members.
Organization structures are needed to keep employees needed, to build learning
organization and to manage global structural problems.
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Directions: Modified True or False. Read the statement carefully. If the
statement is True write R if the statement is False write W.
1. After Planning, Organizing is the second function of management
2. Organization structure and organization chart are only the same.
3. Organization chart shows the work to be performed, their divisions,
and their interrelationships.
4. Without the support of organizing the set goals can be achieved
5. One of the principles of management applied on organizing is
teamwork.
ACTIVITY 7.1 CASE STUDY: ORGANIZING

Organizing the Power Company
“I do not believe in organization charts or position descriptions of any kind
of this company.” Declared Johnny Ramos, president and founder of the Power
Company., manufacturer of men’s ready-to-wear (RTW) suits and jackets.” We are
successful and fast-rising company where I want all managers and labor to work as
a team. Organization charts and descriptions make believe they own position on a
chart and want to keep it. We grew from a small company with P100,000 annual
sales to P5Million enterprise because we pooled our resources, coming up with
competitive products at low costs. We are not San Miguel Corporation with the
complex organization charts.
Mr. Silang, the company comptroller, strongly depended on the president,
emphasizing that teamwork, not organization charts, is the key to success.
Linda Ignacio, head of manufacturing, believed otherwise and declared the
president’s view “unreal and unprogressive.” Ms. Ignacio said “I could not run my
department without organization charts and positions description. As a matter fact,
I have them hidden in my desk where Johnny Ramos never sees them!”
QUESTIONS:
1. With whom you align yourself with? Mr. Johnny Ramos, Mr. Silang or Ms.
Linda Ignacio? Why?
2. Can you identify the problem? State the problem.
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MODULE 8
In this module, the different organization theories and applications used in

organization structure will be discussed.
In this lesson, it will discuss and identify organization theories that can help
how the organization functions best.
This module will discuss specifically the:
Lesson 8 – Organization Theories and Applications,
Delegation, Formal and Informal Organization
 Apply organization theories for effective management
(LC Code: ABM _AOM11-Ih-j-17)
1. apply organization theories in solving business cases;
2. identify the different elements of delegation; and
3. differentiate formal and informal organization.
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Lesson Organization Theories and
8 Applications
Organizational theory attempts to explain the workings of organizations to

produce understanding and appreciation of organizations. Correctly applying
organizational theory can have several benefits for both the organization and society
at large.
Organizational theory studies organizations to identify the patterns and
structures they use to solve problems, maximize efficiency and productivity, and
meet the expectations of stakeholders.
ORGANIZATION THEORIES AND APPLICATIONS
There are two main classifications of theories regarding organizational design
according to Robbins and Coulter (2009):
1. Traditional Theories – are the usual, old-fashioned ways.
2. Modern Theories – are contemporary or new design theories.
Traditional Organizational Design Theories Include:

1. Simple Organizational Design- has few departments, wide span of control, or a
big number of subordinates, directly reporting to a manager has a centralized
authority figure and has a very little formalization of work; usually used by companies
that start out as entrepreneurial ventures.
Strengths Weaknesses
-flexible -risk that over-dependence on a single
-fast decision-making and results person
-clear accountability -no longer appropriate as the company
grows
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2.Functional Organizational Design – groups together similar or related specialties.
Generally, functional departmentalization is utilized and put into practice an entire
organization.
-cost-saving advantages -managers have little knowledge of other’s
-management is facilitated because unit function
workers with similar tasks are grouped
together.
3.Divisional Organizational Design- is made up of separate business division or
units, where the parent corporation acts as overseer to coordinate and control the
different divisions and provide financial and legal services.
-focused on results -possible duplication of activities and
-managers are responsible for what resources.
happens to their products and services -increased cost and reduced efficiency.
Modern Organizational Design Theories include:

1. Team Design -the entire organization is made up of work groups or teams.
advantages: are include empowerment of team members and reduced
barriers among functional areas.
Disadvantages: including a clear chain of command and great pressure on
teams to perform.
2. Matrix -Project Design-

Matrix Design refers to an organization design where the different
specialist from different department works on projects that are supervised by
a project manager. This design results in double chain of command wherein
workers have two managers- their functional area manager and their project
manager- who share authority over them.
Advantage: specialists are involved in the project.
Disadvantage: task and personality conflicts
Project Design refers to an organizational design where employees

continuously work on a project
Advantages: Flexible designs and fast decision-making.
Disadvantages: Complexity of assigning people to project and tasks and
personality conflicts.
3. Boundary-less Design another modern organizational design where the

design is not defined limited by vertical, horizonal, and external boundaries.
There are no departmentalization and no boundaries that separate the
organization from customers, suppliers, and other stakeholders.
Virtual organization designs are often used in this design; small groups of full -
time employees and outside specialist are temporarily hired to work on the projects.
Advantages: being highly flexible and responsive
Disadvantages: are lack of control and problems in communication.
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DELEGATION
DELEGATION refers to assigning a new additional task

to a subordinate; or getting the work done through others
by giving the work done through others by giving them
the right to make decisions or act.
The Three Elements of Delegation
1. Authority – the right to act legally or officially

2. Responsibility - the state of being answerable legally and morally for the
discharge of duty
3. Accountability – is to be liable be called to explain
FORMAL AND INFORMAL ORGANIZATIONS

Whether an organization is formal or informal is determined by the kind of
relationship that prevails in each organization type.
FORMAL ORGANIZATIONS – are characterized by hierarchical and reporting
relationships among groups or members.
 Refers to the organizations formed by the company owner or manager to help
firm accomplish its goals; made up of formal groups (work groups/project
teams/committee) similarly formed by company authorities to support their
activities and achieve their objectives.
INFORMAL ORGANIZATIONS – consist of informal groups born out of the need for
social affiliation.
 Refers to the organizations exist because of friendship or common interest;
made up of informal groups which exist for the member’s need for social
affiliation.
Both formal and informal organizations may exist in the same organization
structure.
Directions: Identify the following Organizational design is Traditional (T) or

Modern (M). Write letter only.
1. Design that groups together similar or related specialties
2. It is made up of work teams.
3. Design where employee continuously work on project
4. Focus on performance improvement of people
5. Focus on flexibility and problem solving
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ACTIVITY 8.1 CASE STUDY
Engineer Jose Santos is a supervisor of group of light project engineers. His
unit is burdened with heavy workloads because of increase in orders of their
company’s computer components. Following up customer’s orders and the
availability of these said products by himself is too much work for him. As a
consultant for the company, what would you advise Engineer Santos?
QUESTIONS:
2. Can you recommend at least two solutions in this case?
3. Among the two alternatives or solutions which one will you recommend? Why?
POST TEST: Choose the letter of the best answer. Write the chosen letter on a
separate sheet of paper.
1. A management function which involves assigning of tasks, allocating of
resources, and coordinating work activities to achieve a common purpose.
a. Planning c. Staffing
b. Organizing d. Directing
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2. Organizational design which is made up of separate business division or units.
a. Division Organizational c. Team Design
b. Functional Organizational d. Matrix Design
3. The statements below define management except for:
a. The force that runs an enterprise and is responsible for its success and
failure.
b. The performance of conceiving and achieving desired results by means of
group effort.
c. An art only and not important subject in business.
d. Satisfying the economic and social needs by being productive for the
human being, for the economy and for society.
4. He postulated a management theory make use of the step, scientific methods for
finding the single best way for doing a job.
a. Henry Fayol c. Joseph M.Juran
b. Frederick W. Taylor d. W. Edwards Deming
5. The following statements are nature of planning except:
a. Planning is the function of all managers.
b. Planning for efficient organization
c. Assigning of responsibility
d. Contribution to purpose and objective
6. The process of choosing a specific procedure or course of action from among
several possible alternatives.
a. Scenario Planning c. Contingency Planning
b. Forecasting d. Decision-making
7. The skills that are helpful in decision-making.
a. Human c. Conceptual
c. Technical d. Physical
8. These persons may be called vice-president, managing director, chief executive
officer or chairman of the board etc. and in charge to the overall objectives of the
organization.
a. Middle-Level Managers c. Tactical Managers
b. Top-Level Managers d. Lower -Level Managers
9. An environment that includes, political, legal, economic, socio cultural and
technological aspects.
a. Opportunities c. Business Firm
b. Internal Environment d. External Environment
10. Is the study of how society produces and distributes its desired goods and
services.
a. Economics c. Marketing
b. Management d. Entrepreneurship
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DIVISION OF NAVOTAS CITY
Organization and
Management
(Quarter 2)
First Semester
S.Y. 2021-2022
NAVOTAS CITY PHILIPPINES
PRETEST: Choose the letter of the best answer. Write the chosen letter on a
1. The process of acquiring and developing human resources to carry out and
perform various activities of the organization.
a. Scanning c. Organizing
b. Planning d. Staffing
2. Is the procedure for determining the duties and skill requirements for a job or
position, as well as other qualifications sought for in an employee or applicant.
a. Job Specification c. Job Analysis
b. Job Description d. Job Position
3. Theory of motivation which predicts that employees are motivated to work well
because of the attractiveness of the rewards or benefits that they may possibly
receive from a job assignment.
a. Scientific Management Theory c. Equity Theory
b. Expectant Theory d. General Administrative Theory
4. Gift, prize, or recompose for merit, service or achievement which may have a
motivating effect on the employee.
a. Rewards c. Promotion
b. Salary d. Compensation/wage
5. Refers to process of social influence that enables a person to encourage others
and enlist their aid and support.
a. Motivation c. Communication
b. Leadership d. Controlling
6. Is important in organizing jobs, it can take several forms: verbal, written and
expressed or body language.
a. Directing c. Motivation
b. Controlling d. Communication
7. 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.
a. Planning c. Controlling
b. Staffing d. Organizing
8. Are used for measuring an organizations financial stability, efficiency
effectiveness, production output, and organizations member’s attitude and morale.
a. Control Methods c. Feedback Control
b. Financial Control d. Feedforward Control
9. A functional area of management responsible in financial management and
control.
a. Office Management c. Financial Management
b. Marketing Management d. Operation Management
10. A road map which the business must follow utilizing the resources at hand
while keeping the environment in mind.
a. Business Plan c. Tactical Plan
b. Marketing Plan d. Strategic Plan
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MODULE 9
In this module, we will learn that Staffing or Human Resource Management

involves acquiring and developing human resources that will carry out and perform
various activities in an organization. Staffing the organization is another major
responsibility of managers.
These lessons will define the concept of staffing and discuss the various processes
involved in systematic staffing.
This module is focused on one lesson, mainly:

Lesson 9 – Staffing-Part 1
 Definition and Nature of Staffing
 The process of recruitment, selection, and training and
development of an employee
Learning Competencies:
 Discuss the concept and nature of staffing.
(LC Code: ABM_AOM11-IIa-b-20)
 Analyze the process of recruiting, selecting and training employees
(LC Code: ABM_AOM11-IIa-b-21)
(LC Code: ABM _AOAM111a-b-22)
At the end of this module, you are expected to:

1. discuss the nature of staffing;
2. explain the steps in the recruitment and selection process; and
3. recognize the different training programs.
Staffing – Part 1
Lesson Concept and Nature of Staffing, The
9 Process of Recruitment, Selection and
Training of Employees.
Managers often considers 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 human capital, intellectual
52
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.
1. The Concept and Nature of Staffing

STAFFING
Definition of Staffing
 STAFFING is the process of recruiting,
selecting, and training of men. It means
putting the right men on the right jobs.
 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.
 STAFFING involves appointing qualified
people into positions in the organization,
ensuring that they are efficient and effective
employees, and promoting their growths as Retrieved from:
they continue to work in the company. https://medium.com/@hlinesoft053/staffing-
process-540f078d63da
CONCEPT OF PEOPLE MANAGEMENT Accessed October 10, 2020.
Human Resource Management (HRM) is concerned with how employees are

employed and managed in organizations. It is defined as “the comprehensive set of
managerial activities and tasks concerned with developing and maintaining a
qualified workforce and human resource, in ways that contribute to organizational
effectiveness.”
NATURE OF STAFFING
Staffing or Human Resource Management involves acquiring ang
developing human resources that will carry out and perform the various activities of
the organization. Aside from hiring people into the organization, the company also
engages in human resource management and utilizes various tools and techniques
to promote employee loyalty, satisfaction, and personal growth within the company.
THE HUMAN RESOURCE DEPARTMENT
The Human Resource Department (HRD) is tasked to implementing human
resource management in the company. The activities of HRD include the primary
function of human resource management such as human resource planning, job
analysis, recruitment and hiring, training and development, performance appraisal
and management, compensation, and employee relations.
The HRD is also responsible for ensuring that the company complies with
workplace safety standards and labor and employment laws.
This department is staffed by human resource professionals and headed by a
Human Resource Director. Some companies appoint a Vice President for Human
Resources to oversee HR management.
53
THE STAFFING PROCESS
Retrieved from:
https://www.businessmanagementide
as.com/staffing/staffing-meaning-
features-and- importance/3508
The staffing process is crucial for the achievement of organizational goals.

1. The first step in the process is human resource planning where in the
manager identifies the right number of people and the required skills for the
different job
2. Job analysis is employed to determine the task, activities, skills required in
the identified positions. After identifying the job specifications, qualified
people scouted to fill in the positions in the organization.
3. The process of finding people to hire for a job is called recruitment.
4. The selection of job candidates is done through interviews, psychological test
and background check.
5. Upon hiring, new employees are oriented on company rules and policies,
compensation and benefit packages, and training programs.
JOB ANALYSIS is the procedure for determining the duties and skill requirements
for a job or position, as well as other qualifications sought for in an employee or
applicant.
JOB ANALYSIS is the procedure used for determining /collecting information
relating to the operations and responsibility of a specific job. The end results are job
description and job specifications.
Retrieved from
http://learnersdestination.com/job-
analysis/
Accessed October 12, 2020
Figure 2. Job Analysis Process
 Job description -organized, factual statement of duties and responsibilities

of a specific job. It tells what to be done, how it is done, and why.
 Job specifications – a written explanation of the minimum acceptable human

qualities necessary for effective performance of a given job. It designates the
qualities required for acceptable performance, which are requisite education,
skills, personality.
54
Figure 3. Job analysis
Retrieved from:
http://learnersdestination.com
/job-analysis/ accessed
October 12, 2020
This is an example of
Job Analysis. It contains the Job
Position, Job Description and Job
Specification.
2. The Process of Recruitment, Selection, and Training and
Development of Employees
RECRUITMENT
RECRUITMENT – A set of activities designed to attract qualified applicants for job
position vacancies in an organization.
RECRUITMENT is the process of encouraging, inducing, or influencing applicants
to apply fo a certain vacant position.
TYPES OF RECRUITMENT
1. INTERNAL RECRUITMENT - Filling job vacancies can be done through
promotions or transfer of employees who are already part of the part of the
organization
2. EXTERNAL RECRUITMENT - Outside sources are considered in the process of
locating potential individuals.
Methods of Recruitment
Advertisment Through website, newspaper, radio, televisions, posters
e-mails
Unsolicited application Received by an employer, from an individual who may or
may not qualified for the job opening
Internet recruiting Independed job boards on the Web
Employee referrals Recommendations
Executive search firms Also known as “headhunters “ help employers find the
person for a job.
Educational institution Good source of young applicants or new graduates
Professional associations May offer placement services to their members who seek
employments
Labor unions Possible source of applicants for blue-collar and
professional job
Public and private May also good sources for different types of job
agencies vacancies.
55
SELECTION
SELECTION – the process of choosing individuals who have the required
qualifications to fill present and expected job openings.
SELECTION -the process of getting the most qualified applicant from among
different seekers.
STEPS IN SELECTION
1. Reception of applicants
2. Preliminary Interview
 Interviews are important in determining the qualifications of an
applicant and gauging his or her ability to perform a job.
Types of Job Interviews
a. Structured Interview – the interviewer asks the applicants to answer a
set of prepared questions.
b. Unstructured Interview- the interviewer has no interview guide and may
ask the 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 conduct
the interview of applicants: three to five interviewers take turn in asking
questions.
3. Complete application form
4. Employment Test
 Intelligence Test- designed to measure the applicant’s mental capacity
test his or her cognitive capacity
 Proficiency and aptitude Tests- test his or her present skills and
potential for learning skills.
 Personality Tests- designed to reveal the applicant’s personal
characteristics and ability to relate with others.
 Vocational tests- test that show the occupation best suited to an
applicant.
5. Final selection by immediate supervisor or department head
6. Physical and medical examination
7. Hiring
8. Orientation/ Induction/Indoctrination
NEW EMPLOYEE ORIENTATION PROGRAM
The initial training of newly hire hired employee includes an orientation. The
new employee orientation program aims to provide new employees with relevant
information about the company such as the company’s history, vision and mission,
culture, products, and services provided, work hours, dress code, and company
policies.
The program also introduces new employees to their superior and co-
employees within the department and the top management are introduced.
56
3. Training and Development of an Employee
TRAINING AND DEVELOPMENT refer to two
distinct processes in employee development.
TRAINING is an organized activity that
increases and enhances employees’ knowledge
and skills on their job to improve their current
performance.
Retrieved from:https://nbsl.org.uk/business-bullets/people/70-3-
DEVELOPMENT is the enhancement of the things-to-consider-when-planning-your-training-and-development-

strategy Accessed October 13,2020
competencies of employees by giving them opportunities for greater responsibilities

as well as challenging tasks that will help them achieve their total growth.
Some of the common techniques used by companies in training programs:
1. Lecture is the oldest and most popular method of teaching where the trainer
or speaker gives a speech explaining a topic or concept.
2. Demonstration method-is utilized to show how something works or how to
perform task.
3. Computer-based training program utilizes computer programs to teach
knowledge and skills and does not require face-to-face interaction with the
trainer.
4. Programmed Instruction is a form of computer -based training that the
participants go through the content of the material and answer tests. Once
they pass a test, they are able to proceed to the next level of the program.
5. Case study method presents a particular situation and trainee discuss and
decide on a solution to an organizational problem highlighted in the case.
6. Role Playing method presents actual work situations for analysis and
participants are asked to act out of specific roles.
7. Teambuilding is a training program that utilizes activities that encourage
employee to work in groups.
8. On-the-job Training and Job Rotation the trainee is shown how to perform
the job and allowed to do it under the trainer’s supervision.
9. Vestibule Training procedure and equipment similar to those used in the
actual job are set up in a special working area are called a vestibule.
10.Management Development Program is a systematic process of training and
growth by which individuals gain and apply knowledge, skills, insights, and
attitudes to manage work organizations effectively.
Directions: Read the group of words or statement written below. Match it with the
words inside the box which are the staffing process. Write only the letter of your
answer in a separate sheet.
A. JOB ANALYSIS C. SELECTION E. STAFFING

B. RECRUITMENT D. TRAINING
57
1. Intelligence test, aptitude test, personality test
2. Job position, Job description, Job specification
3. External applicant, internal applicant
4. Demonstration, lecture, role playing
5. Preliminary interview, employment test
ACTIVITY 9.1 CASE STUDY: STAFFING

Directions: Read and understand the case study. Write your answer in a separate
sheet.
The department manager holds a regular meeting with the four section
Heads confining each meeting to one chief problem. On this day, the subject was
the “poor” quality of the twenty supervisors reporting to the section heads.
“We have a rather poor record in selecting good supervisor” she began. “We
may have five or six who are outstanding, but there are too many who are not.
What do you people consider when you recommend candidates to me?”
“I think my best technical people make the best supervisors, “said one
section head. “They have the respect of their associates and subordinates who rate
their technical competence highly. They can train new staff members effectively,
and pitch in to do the most demanding jobs themselves.”
“Maybe that is just the trouble”, said the department manager. “People like
them because everyone never learn to manage because they spend their time in
technical work.” Another section head said, I made my recommendation based on
seniority. It has popular appeal because everyone expects to be a long this line.”
“Do you think “the manager said “that age is the only or most important
criterion for supervision? “. Such a practice conveniently ignores everything learned
about managing, or it assumes that the candidate has the capability to become
proficient in management after getting the job. Is this realistic?”
During the meeting, other factor such a s getting along with people, making
impression, having the capability for further promotion, and being able to exact
responsibility were all considered. The department manager was clearly frustrated
and, as she ended the meeting she remarked “No wonder we have 40% failure rate
in selecting supervisor.
QUESTIONS:
2. Base from the case, can you enumerate the reasons why the company has 40%
failure state in selecting supervisors?
58
MODULE 10
In this module, we will learn that Staffing or Human Resource Management

also involves the objective of compensation, employee relations, employee movements
and the reward systems that is equitable to the employer and employee alike.
 Examine the functions and importance of compensation, wages and
performance evaluation, appraisal, reward system, employee relations and
movement
(LC Code: ABM_AOM11-IIa-b-23 to ABM_AOM11-IIa-b-26)
These lessons will explain the policy or guidelines in compensation and

performance, importance of employee relations, various employees’ movements and
adopt effective reward systems.

Lesson 10 – Staffing Part 2
 Compensation/Wages and Performance Evaluation
Employee Relations
 Employee Movements and Reward System
1. Identify the policy guidelines on compensation and wages and performance

evaluation or appraisal;
2. discuss the importance of employee relations;
3. differentiate various employee movement; and
4. realize the importance of adopting an effective reward system.
59
Lesson Staffing - Part 2 Compensation/Wages
and Performance Evaluation
10 Employee Relations
Compensation/wages and performance evaluation are related to each

other because the employee’s excellent or poor performance also determines the
compensation given to them, after considering other internal or 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/Wages – all forms of pay given by employers to their employees for
the performance of their jobs. Any tangible equivalent or reward for services
rendered or for the performance of a task performed in the organization.
TYPES OF COMPENSATION
1. Direct compensation – includes worker’s salaries, incentive pays, bonuses
and commissions.
2. Indirect compensation- includes benefits given by the employers other
than the financial remuneration: example: travel, educational and health
benefits, sportsfest 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.
COMPENSATION: A Motivational Factor for Employee
Compensation pay represents a reward that an employee receives for good
performance that contributes to the company’s success. In relation to this the
following must be considered:
Pay Equity – related to fairness: the Equity Theory is a motivation theory
focusing on employee’s response to the pay that they receive and the feeling that
they receive less or more than they deserve. In other words, pay equity is achieved
when the pay given to them by their employers is equal to the value of the job
performed.
Expectant Theory another theory of motivation which predicts that employees are
motivated to work well because of the attractiveness of the rewards or benefits
that they may possibly receive from a job assignment.
BASES FOR COMPENSATION
Employee may be compensated based on the following:
1. Piecework basis – when pay is computed according to the number of units
produced.
60
2. Hourly basis- when pay is computed according to the number of work hours
rendered.
3. Daily basis – when pay is computed according to the numbers of work days
rendered.
4. Weekly basis – when pay is computed according to work weeks rendered.
5. Monthly basis – when pay is computed according to the number of work
months rendered.
SALARY – refers to compensation given to professionals on a monthly or semi-
monthly basis.
WAGE- refers to compensation given on a weekly or daily basis and usually applies
to manual workers.
ADVANTAGES OF GOOD COMPENSATION AND BENEFITS.
1. Job satisfaction 3. Low absenteeism
2. Motivation 4. Low Turn-over
PERFORMANCE EVALUATION
Performance Evaluation- a process undertaken by the organization, usually done
once a year, designed to measure employees’ work performance.
Purpose of Performance Evaluation
1. Administrative Purposes -These are fulfilled through appraisal evaluation
programs that provide information that may be used as a basis for
compensation decisions, promotions, transfers, and terminations.
2. 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 developmental needs.
Performance appraisal methods includes trait methods, graphic rating

scales, forced choice method, behaviorally anchored rating scale (BARS), and
behavioral observation scale (BOS).
EMPLOYEE RELATIONS
Employee relations are the connection created among employees/workers as they
do their assigned tasks for the organization to which they belong.
Employee relations applies to all phases of work activities in organizations, and
managers to be effective must be able to encourage good employee relationship
among all human resources under his or her care.
Employees/workers are social beings who need connections or relations with

other human beings-other employees/workers-who can give them social support
as they carry out their tasks in an organization where all of them belong.
Three Types of Employees

Engaged -Employees who work with passion and feel a deep
connection with their company
-They drive innovation and move the organization
forward.
Not engaged -employees who essentially “checked out “
61
- they put time, but not energy or passion, into
their work
Actively Disengaged -employees who are not only unhappy at work, but
also act out their unhappiness
-they undermine what their engaged coworkers
accomplish
Source: www.gullup.com
Here are some ways to overcome barriers to good employee relations:
 Develop a healthy personality to overcome negative attitudes and behaviors

 Find time to socialize with coworkers
 Overcome tendencies of being too dependent on electric gadgets
 Develop good communication skills and open to other’s opinion
 Minimize cultural/subcultural tension.
EMPLOYEE MOVEMENTS
Employee movements are inevitable and are often the result of evaluation or
structural changes within an organization. An organization can move its employee
either vertically or horizontally.
Vertical Movement – entails the movement of an employee from a lower position
to a higher one.
Horizontal Movement- involves in the transfer of an employee to another
department or position with similar responsibilities or status.
 PROMOTION - is a movement to a higher level or position.

-refers to the shifting of an employee to a new position to
which both his status and responsibilities are increased.
 DEMOTION – is a movement to a lower position.
A common reason for an employee’s demotion is inefficiency of
poor performance.
 TRANSFER- is a movement to another position but with the same level or
scope of responsibility. It can also mean a transfer to another branch or
location, but employee still occupies the same tasks.
 SEPARATION- an employee’s departure from the organization.
1. Resignation- this is an employee’s voluntary decision to leave the
organization.
2. Separation with authorized cause – more commonly known as layoff,
this is the company’s decision to terminate the employee s due to
business reasons.
3. Separation with just cause – This occurs when an employee is
terminated due to theft, fraud, and other serious offenses.
4. Retirement – this refers to the end of a worker’s employment with the
company due to illness, or infirmity. Some companies set their retirement
age for employees 60 or 65 years old.
LABOR UNION is a formal union of employees/workers that deals with employers,
representing workers in their pursuit of justice and fairness and in their fight for
their collective or common interest.
Employee or workers unionize because of financial needs, unfair management
practices and social leadership.
CBA stands for Collective Bargaining Agreement and Labor Union.
62
UNIONISM – the principle of combination for unity of purpose and action.
GRIEVANCE PROCEDURE – is a formal procedure that authorizes the union to
represent their members in processing a grievance or complaint.
REWARDS SYSTEM
Organizations offer competitive rewards systems to attract

knowledgeable and skilled people and to keep them
motivated and satisfied once they are employed in their firm.
Further, rewards promote personal growth and
development and present fast employee turnover.
Retrieved from: https://www.get- REWARD- gift, prize, or recompose for merit, service or
benefits.com/miscellaneous/reward-employees-
bonus-plan-makes-sense/ Accessed October 8, a
chievement which may have a motivating effect on the
employee
TWO TYPES OF REWARDS
1. MONETARY REWARDS – rewards which pertain to money, finance , or currency
A. Pay/salary - weekly, monthly, or hourly pay, piecework compensation.
B. Benefits - health care benefits, retirement benefits, educational
benefits
C. Incentives - bonuses, merit pays, sales incentives
D. Executive pay - basic salary, bonuses, stock plans, benefits, gratuity
E. Stock options – are lanes that grant employees the right to buy a
specific number of shares of the organization stocks.
The Philippine government has implemented law that requires business

establishments to give 13th month pay to all employees that have worked for
them for at least a month.
2.NON-MONETARY REWARDS- rewards which do not pertain to money, finance or
currency .
A. Award – trophies, medal, certificates of recognition
B. Praise – superior to their subordinates when they express oral or verbal
appreciation for excellent job performance.
Directions: Modified TRUE or FALSE.

Read and understand the following statement. If the statement is TRUE write T
and If the statement is FALSE write F. Write your answer in separate sheet.
1. Family and personal problems and reasons why workers joined from a
labor union.
2. Employees feel that their salary must be commensurate to the efforts they
exerted in the performance of their job.
63
3. A labor union is an informal grouping of employees that negotiates with an
Employer.
4. Performance evaluation done by companies never fails.
5. Compensation/wages are all forms of pay given by employer to their
employees for the performance of their jobs.
Directions: Read and understand the case study. Write your answer in a separate
sheet.
CASE STUDY STAFFING
ACTIVITY 10.1 WHY WE NEED TO CHANGE
Artemio was appointed CEO of Rafol’s Enterprise s upon the death of his
father.
The company went public under the leadership of Artemio and must adapt to
being open and transparent to outside investors. There were pressures from the
shareholders to reduce costs and increase profits. In response, Artemio implemented
cost-cutting measures including downsizing by means of enforcing early retirement
of employees who he felt could not move to digitize the operation of the business.
As expected, most of the employees were not happy and this affected the
morale of their employees. Artemio sought the assistance of Ely Buenaobra, the VP
of HR. Ely suggested a comprehensive program wherein it is not just the managers
who would be evaluated based on achieving results but even the employees by means
of demonstrating to their employees that their performance affects company results.
This in turn will show to the shareholders that the company’s primary
objective in to increase performance.
Inspired by the case entitled “A Time for Change” from the book Human Resource Management by Wendell
French, Houghton Mifflin Company,2007.
QUESTIONS:
2. Do you agree with the proposal of Ely? Explain your answer.

64
MODULE 11
This module highlights another function of management – Leading. It

is important because it involves the organization’s people who possess different
attitudes, behaviors, personalities, and motivations among them to achieve a
common goal is quite challenging because of their many diverse characteristics.
Analyze motivation, leadership, and communication work in an organization
LC Code: ABM_AOM11-IIc-e-27, ABM_AOM11-IIc-e-28,
ABM_AOM11-IIc-e-29, ABM_AOM11-IIc-e-30,
ABM_AOM11-IIc-e-31
These lessons will explain understanding leading or directing begins with how
people behave, what their motivation s and how to communicate with them.
Lesson 11 - Leading and Motivation
Leadership Styles and Theories
Communication

1. Discuss the nature of leading or directing;
2. Differentiate leading from managing;
3. Identify the different theories of motivation;
4. Differentiate the various styles of leadership; and
5. appreciate the role of communication in directing people within the organization.
Lesson Leading – Motivation, Leadership

11 and Communication
1. Leading and Motivation

LEADING
Successful leading must begin with focusing on
the psychological capital of both the
employer/leader and the employee subordinate.
Looking for what is right with people rather than
what is wrong is suggested to prevent mental and
behavioral problem which are barriers to
achieving both organizational and individual
Retrieved from: goals.
LEADING is a management function combine
https://crossroadscareer.org/what- two significant concepts – the DIRECTING and
leadership-is-not/ Accessed October 9,
LEADERSHIP.
2020
65
Directing is the fourth universal function of management and it refers to the
process of motivation, communication, and leadership. It deals with the
relationship of managers and non-managers. Planning, organizing, staffing and
controlling could be done effectively, but it must be supported by an understanding
of people’s behavior by good communication and ability to lead.
Leadership is an essential skill that manager must possess to guide their
organization towards achieving their goal. Effective leadership requires an
understanding of human motivation.
Managers as leaders should understand the motive of people, and they should
maintain or improve the interpersonal relationship in an organization so that
people can be satisfied from contributing to the achievement and development of
objectives of the enterprise.
Leading and Managing
Leading - a management function that involves inspiring and influencing people in
the organization to achieve common goal.
Managing – the process of working with and through others to achieve
organizational objectives efficiently and ethically amid constant change. It also
deals with planning, organizing, staffing, leading, and controlling.
2.MOTIVATION
Motivation refers to psychological processes that arouse and direct goal- directed
behavior. Motivation encourages individuals to work enthusiastically, often
performing more work than what is required.
 What could mangers to do ensure such motivated and enthusiastic
performance among their subordinates?
 What could be done to inspire employee whose work performance is
limited to the minimum need?
Motive is something that arouse or induces an individual to behave or induces an
individual to behave or certain thing. It is also known as need or desire.
Internal Motives are based on an individual’s own personal drive to achieve
certain goal.
External Motives are based on forces or influences that are outside of the person
such as environment, peer group, family members, and society.
THEORIES OR MOTIVATION
Several theories have outlined principles and ideas that explain the nature of
motivation and its effects on a person’s behavior.
A. McClelland’s Learned Need Theory also known as Achievement

Motivation Theory
According to David McClleland, an American Psychologist, human behavior
is defined by three motivators which are learned and shaped by a person’s
life experiences.
The learned needs:
1. Need for achievement have a strong desire to accomplish challenging
goals and gain advancement in their profession.
2. Need for Affiliation prefer to be in the company of others.
3. Need for power want to control and influence others.
B. Herzberg’s Two-Factor Theory – The American psychologist Frederick

Herzberg proposed the Two-Factor Theory of Motivation.
66
Two important factors:
1. Hygiene factors – include rules and policies, salaries and benefits,
relationships with coworkers and superiors, work conditions, quality and
supervision.
2. Motivators factors – include the nature of job itself, recognition, personal
growth, opportunity for advancement, responsibility, and employment
status.
C. Abraham Maslow’s Hierarchy of Needs the most widely recognized theory of

motivation that specifies the fundamental needs of individual.
Retrieved from: https://mrjoe.uk/maslows-

hierarchy-needs-psychology-myth-busting-1
Accessed on October 12,2020
Maslow’s theory assumes that lower-level needs should be satisfied first to

enable a person to address his or her higher-level needs such as self-esteem and
self-actualization.
The Five Human Needs according to Maslow’s Hierarchy of Needs Theory:
1. Physiological Needs refer 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
need for the 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.
D. Alderfer’s ERG Theory - the ERG (Existence, Relatedness, Growth)

Theory of Motivation
Was developed in 1969 by Clayton Alderfer, An American Psychologist.
1. Existence needs are comprised of physiological and security needs.
2. Relatedness needs combine love and belongingness
3. Growth needs include self-esteem and self-actualization.
Let us see and analyze the diagram of some Motivation theories.
67
Retrieved from: https://www.damak.tk/33238/learning-theories-summary-chart.htm
Accessed October 12, 2020
LEADERSHIP
Leadership refers to process of social influence that

enables a person to encourage others and enlist their aid
and support in the performance of task and in achieving a particular goal.
It is not primarily based on power or authority, but it is a product of social interaction
and defined social characteristics such as charisma intelligence and other traits.
Leadership is the process of inspiring and influencing a group of people to achieve

a common goal.
Leading is a complex process. It involves influencing others to accomplish a
mission, task, or goal.
Management experts identify four primary traits that leaders should possess. These
are as follows:
1. Emotional Stability – A leader is calm and confident during stressful

time.
2. Ability to admit error -A leader does not cover up his or her mistakes and
takes responsibility for them.
3. Good interpersonal skills- A leader can communicate and persuade others.
4. Intellectual breadth – A leader is broad-minded and is knowledgeable about
a wide range of areas.
LEADERSHIP THEORIES and LEADERSHIP STYLES

The Hershey- Blanchard Leadership Theory is a leadership model developed by
leadership mentors Paul Hersey and Ken Blanchard. This focuses on the direction
and emotional support a leader provides his or her followers as they undertake a
task.
THERE ARE FOUR LEADERSHIP STYLES ARISING FROM THIS MODEL:
1. Directing – the leader directs and gives clear instructions. This is good for
followers who have low competence.
68
2. Coaching- The leader is always open to two-way communication. He or she
continually motivates employees. This is good for followers who are
moderately competent.
3. Supporting- The Leader and members of the group support each other.
There is an active participation among workers who are moderately
competent.
4. Delegating- The leader has followers who are highly competent. The
followers are highly motivated and take responsibility for accomplishing
assigned task.
THE PATH-GOAL THEORY OF LEADERSHIP – describes the way leaders support

their followers in achieving their goals.
Its proponent, leadership theorist Robert House, identified four leadership style:
1. Supportive leadership-The leader supports a friendly environment by
looking their subordinate’s welfare. This approach is best when the job is
stressful or tedious.
2. Directive Leadership- The leader communicates to the members of the
group the goals expectation and assign clear tasks.
3. Participative leadership- The leader consult with his or her followers and
consider their ideas in decision-making.
4. Achievement- oriented leadership – the leader trusts the capabilities and
set challenging goals to motivate them to perform at their optimal levels.
PARTICIPATIVE LEADERSHIP
Kurt Lewin, a German American psychologist identifies three leadership styles
based on their decision-making practices
a. Autocratic leaders – These leaders take sole charge in decision making and
do not consult with other members.
b. Democratic leaders – These leaders allow team members to provide inputs
before deciding.
c. Laissez-faire leaders – These leaders do not interfere in the decision making
and they allow members to make most of the decisions.
Action-Centered Leadership Model - a theory of John Adair, that teamwork is
essential in the accomplishment of tasks, and leader puts emphasis on the
following elements depending on the situation.
1. Task – includes defining the task, plans, allocating resources, and
assigning specific tasks.
2. Team – entails maintaining discipline, building team spirit, and
motivating members.
3. Individual – includes attending to personal problems, recognizing and
using individual abilities, and developing group members.
3. COMMUNICATION
Communication applies to all management functions and its general

purpose for the organizations to bring positive changes that influence activities
leading to the firm’s welfare.
69
Communication is important in organizing jobs and making sure that all
tasks are jobs are accomplished to achieve goals. Communication can take several
forms: verbal, written, and expressed or body language.
Communication – the exchange of information and understanding
Verbal communication – refers to the oral and written communication
Non-verbal communication – refers to communication through body movements,
gestures, facial expressions, eye contact, or body contact
The Communication Process
Retrieved from: https://sites.google.com/a/jasonpurton.com.au/jason-purton/blog/elementsofmarketing-

backtobasicspart5 Accessed October 13,2020
The following are the elements involved in the communication process:

1. Input- the content of the message
2. Sender – the one who encodes or sends the message
3. Code – a symbol system, known to both the sender and the receiver, that
construct the meaning.
4. Channel- the means by which the sender relays the message to the receiver.
5. Noise- any distortion or interference during the communication process
6. Receiver- the one who decodes or receives the message
7. Output- the content of the message is decoded by the receiver.
8. Response – the reaction of the receiver to the message.
9. Feedback- the part of the receiver’s response that is transmitted back to the
sender.
Barriers to Communication in the Overcoming Communication
workplace Barriers
Physical barriers – Proximity aids in Using feedback – Asking them to give
communication and encourages comment or suggestion
closeness among co-workers. Using simple language – Avoiding
Perceptual barriers- Perception uncommon term or flowery words
refers to how people look at things. that may cause misinterpretation.
Emotional barriers-These barriers Active listening – listening well in
consist of fear, mistrust and order to grasp the full meaning of the
suspicious. communication.
70
Cultural barriers- Cultural Controlling emotions- it is
differences among groups make important to practice emotional
communication difficult. restraint
Language barriers- People in Observing body language- Non
different countries do not speak the verbal cues must always be watched
same language. because , as the saying goes, action
Gender barriers-There are distinction speak louder than words.
on the speech patterns of men of
women that may cause
misinterpretations.
Interpersonal barriers-Interpersonal
relationships and personal attitudes
can be barriers to communication.
Directions: Modified True or False. Two statements are given.

If only the first statement is true, Answer is A
If only the second statement is true, Answer is B
If both statements are true, Answer is C
If both statements are false, Answer is D
1. Leadership is a process of inspiring and influencing a group of people to

achieve common goals. Motivation encourages individuals to work enthusiastically.
2. The Two Factor Theory of Motivation was proposed by McClelland. The ERG
Theory was developed by Alderfer.
3. Managers are advised to set goals for their subordinates. Target goals
should not be achieved at the end of the plans.
4. Change is considered by many organization members as threat. Fear of
change may be due to uncertainty, pessimism, and concern about personal loss.
5. Autocratic leaders are allowed team members to provide inputs before
making decision. Democratic leaders take sole charge in decision making and do
not consult other members.
Directions: Read and understand the case study. Write your answer in a
separate sheet.
CASE STUDY DIRECTING
Activity 11.1 EDSA RADIO AND TV COMPANY
Bong Tadiwan founded a small radio manufacturing plant in EDSA in 1991.
The business grew to become one of the nation’s largest radio, TV, and appliance
production companies. By 1999, its sales approached P300 Million with 15,000
employees and ten manufacturing plants. Throughout the company’s growth, the
founder was its active, imaginative, and driving force. In earlier days, he knew every
71
manager and worker are called by their first names. When the company grew fairly
larger, people still felt that they knew the founder and president, and this strong
feeling of personal loyalty helped make for the absence of a company union.
However, the company prospered, Bong Tadiwan worried that it was losing
its “small company” spirit. He also worried that his philosophies and objectives
were not understood by the employees and that duplications take place because of
poor communication of company policies among workers, thus affecting the
development and marketing of new products.
To solve the communication problem, he hires a director of communication
who reported to him, and together, they utilized all communication device other
companies use: bulletin boards in all company’s offices and plants; a revitalized
house newsletter carrying news items from all company plants; a company manual
for every employee giving significant information about the firm; profit-sharing
Scheme; company-sponsored courses on communication; monthly meeting at the
main office for the top executives; annual three-day meetings of 1,200 level-
managers and special committees to discuss.
After much time, effort, and expense. Mr. Tadiwan was disappointed to find
that his problems of lack of communication and the loss of “small company” feeling
still exist. In short, his measure failed significantly.
QUESTIONS:
2. What do you think the reasons, that even there are several solutions made to
solve communication problem, still it does not work out? Explain your answer.
72
MODULE 12
This module covers another function of management – Controlling. For the

successful management of an organization Controlling involves the establishment of
performance standards based on the company’s objectives, measurement and
assessment of actual performance based on the prescribed standards, and
implementation of necessary corrective and preventive actions.
Apply the concept and nature of different control methods and techniques in
accounting and marketing
LC Code: ABM_AOM11-IIf-h-34 to ABM_AOM11-IIf-h-37
These lessons will explain understanding that controlling is essential in 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.
Lesson 12 -Definition and Nature of Management Control
Control Methods and System
Application of Management Control in Accounting
And Marketing Concepts and Techniques

1. discuss the nature of controlling;
2. describe the link between planning and controlling;
3. identify and discuss control methods and system; and
4. relate management control to accounting and marketing concepts and
techniques.
Lesson
Controlling the Organization
12
Controlling is one of the important functions of a manager. In, order to seek

planned results from the subordinates, a manager needs to exercise effective
control over the activities of the subordinates. In other words, the meaning of
controlling function can be defined as ensuring that activities in an organization
are performed as per the plans
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.
73
1. Definition and Nature of Management Control
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.
CONTROLLING - is the process of measuring and correcting activities (plans,
organization, personnel, etc.) in an organization.
STANDARDS – any established measure of extent quantity, quality, or value.
NATURE OF CONTROLLING
Controlling is an ongoing process that involves members at all levels of the
organization. The control function is the responsibility of everyone to, thus
employees are expected to address problems s even if these are not within his or
her responsibility.
Controlling is also considered an end function because this is performed after all
other functions are done. It is also dynamic process because any deviations from
standards should be immediately corrected. Constant monitoring is a vital
component of the control process.
THE CONTROL PROCESS
1. Establishment of standard
2. Measure of performance
3. Comparison of actual performance with the standard
4. Taking corrective actions and realigning processes.
THE LINK BETWEEN PLANNING AND CONTROLLING

Planning and Controlling are closely related management functions.
PLANNING identifies the goals and standards that an organization should aim for
while CONTROLLING ensures that the performance of the whole organization
conforms to the outlined plans. CONTROLLING also provides management with vital
information that can be used in the formulation of new plans for the company.
PLANNING provides the baseline of the company’s future while
CONTROLLING becomes the tool that ensures the company’s success.
The failure of controlling would mean failure of planning, and success
of planning means success of controlling.
All forms of management controls are designed to give manager information
regarding progress, the manager use this information to:
1. Prevent crises
2. Standardization outputs.
3. Appraise employee performance
4. Update plans
5. Protect an organization’s asset
2. Control Methods and Systems
Control methods are used for measuring an organizations financial stability,

efficiency effectiveness, production output, and organizations member’s attitude
74
and morale. From the general point view, managerial effectiveness must be
concerned with the maximizing of the abovementioned factors that are measured
by the control methods.
Therefore, the challenge for present-day managers is to devise control
methods and system that are aligned and consistent and will help attain these
concerns.
METHODS OF CONTROL
A firm may apply control technique or methods which either quantitative
or nonquantitative.
A. QUANTITATIVE METHODS
Quantitative methods which make use data and different tools expressed in
members for monitoring and controlling production output.
Budgets and audits are among the most common quantitative tools.
Budgets remains the best-known control device. 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.
Audits. Internal auditing involves the independent review and evaluation of the
organizations, nontactical, such as accounting and finances. As a management
tool, the audit measures and evaluates the effectiveness of management control.
Charts used as control tools

normally contrast time and
performance. A difference in
numbers is much more
noticeable when displayed
graphically.
B. NONQUANTITATIVE METHODS
Nonquantitative Methods refer to the overall control of performance instead of
only those of specific organizational processes.
These methods use tools such as inspections, reports, direct supervision,
and on-the-spot checking and performance evaluation or counseling to
accomplish goals.
OTHER CONTROL METHODS:

1. Feedforward control prevents problems because managerial action before
the actual problem occurs.
2. Concurrent control takes place while work activity is happening. The best
example of this type of control is direct supervision or management by
walking around.
3. Feedback control is control that takes place after the occurrence of the
activity. It is advantageous because the time the manager receives the
information, the problem had already occurred.
75
4. Employee discipline is a control challenge for managers. Enforcing
discipline in the workplace is not easy. Concerns regarding this include
workplace privacy, employee theft, and workplace violence, among other.
5. Project management control ensures that the task of getting a project’s
activities done on time, within the budget, and according to specifications, is
successfully carried out.
Various Control Methods and System in Monitoring and Controlling The

General Conduct Of Company Operations.
1. Administrative Control- This technique entails establishing procedures

and policies that ensure efficiency in the activities of the company.
2. Performance appraisal – This provides general impression of employee
performance.
3. Quality Control- This control method relies on the quality of products and
services as a basis for establishing performance standards, monitoring
results, and comparing results with standard.
3. Application of Management Control in Accounting and

Marketing Concepts and Techniques
Control is applied to many functional areas in the business organization,
particularly in Accounting and Marketing. These two departments generate
important information regarding the overall performance of the company.
The Accounting Department provides financial information that can help
determine the financial stability of the organization.
The Marketing Department, meanwhile, provides data on the company’s
sales performance.
Management control in accounting and finance is the control that make use of the
balance sheet, income statement, cash flow statement to analyze and examine
financial statements to determine the company’s stability.
On the other hand, management control in marketing is the control that
make use of projected sales or forecast, statistical models, econometric modeling,
surveys, historical demand data, and actual consumption of their products.
SALES is 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.
ACCOUNTING OR FINANCIAL CONTROLS
Financial controls are important tools that determine whether the company is on
track toward achieving its financial goals.
Financial ratios are one of the control methods utilized in financial control.
These rely on information gained from financial statements, which are
formal records of the financial activities of the organization. The main types of
financial statements are the balance sheet and the income statement.
76
BALANCE SHEET – Is a financial statement which is defined by most accounting
book as “snapshot” of any entity’ financial condition because it present the
financial balances of a particular period.
Contains the company’s assets, liabilities, and capital account.
Illustration of a Balance Sheet
Wendy Santos Company

Balance Sheet
December 31, 2019
Assets Liabilities
Cash P 80,000 Accounts Payable P 70,000

Accounts Receivable 10,000 Notes Payable 90,000
Land 140,000 Total Liabilities 160,000
Building 400,000 Owner’s Equity
Equipment 70,000 Santos, Capital 640,000
Vehicle 100,000 Total Liabilities and
Total Assets P 800,000 Owner’s Equity P 800,000
 ASSETS – are things or resources that the company owns. These include
things that the company has purchased or acquired.
 LIABILITIES-are the obligations of the company to creditors for past

transactions such as acquisition of raw materials and other debts.
 OWNER’S EQUITY OR STOCKHLDER’S EQUITY -shows the amount of the

capital the owners of the business have invested.
 Owner’s Equity is applicable for sole proprietorship
 Stockholder’s Equity is applicable for corporation
The standard formula for determining the financial status of the company using a
balance sheet is Asset = Liabilities + Owner’s Equity
INCOME STATEMENT – reports profit earned, or losses incurred by the company

over a given period.
contains information about the company’s gross income, expenses and profits.
Illustration of an Income Statement
WENDY SANTOS
Income Statement
For the Month Ended May 31, 2019
Revenues
Consulting Revenues P 67,700
Referral Revenues 4,000
77
Total P 71,700
Expenses
Salaries Expense P 15,600
Utilities Expense 4,400
Rent Expense 4,000
Depreciation Expense-Service Vehicle 4,000
Interest Expense 3,500
Supplies Expense 3,000
Insurance Expense 1,200
Depreciation Expense-Office Equipment 1,000
Total 36,700
Profit P 35,000
 REVENUE – This is the income from primary activities such as production

and selling of goods on the part of the manufacturer.
Sales Revenue refers to revenue gained from the sale of goods, by retailers,
distributors, manufacturers, and wholesaler.
Other revenue – comes from the secondary activities unrelated to the main
business-like rent from an idle warehouse or garage.
 EXPENSES- These are costs incurred in the operation of the business.
 NET INCOME – the income statement lists the revenues and expenses
incurred by the company, and the total expenses is subtracted from the
total revenues.
Profit – indicates the expenses are less than the income or total revenue.
Loss – If the expenses are greater than the revenue.
ACCOUNTING /FINANCIAL CONTROL RATIOS

Liquidity ratio- test the organization’s ability to meet short term obligations, it
may also refer to acid test done when inventories turnover slowly or are difficult to
sell.
Current ratio = current assets ÷ current liabilities
Leverage ratio – determine if the organization is technically insolvent, meaning

that organization’s financing is mainly coming from borrowed money or from the
owner’s investment.
Debt-to-assets ratio = total debt ÷ total assets

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
Profitability ratio- determines the profits that are being generated.
Net profit = after taxes ÷ total sales
78
MARKETING CONTROLS
Control is also applicable in the marketing function since setting

performance standards is an important part of developing marketing objectives.
There are five types of marketing control:

1. Strategic control – This refers to processes implemented to control the
formulation and execution of strategic plans.
2. Annual plan control – This involves analyzing a company’s sales date to
determine trends and changes in sales figures and identify any discrepancy or
variance in performance.
3. Customer tracking – These are methods that determine customer behavior
and their reactions to marketing activities.
4. Profit control -This determines the profitability of company activities and
identifies where the company is making or losing money.
5. Efficiency control – This keeps track of the efficiency of marketing
expenditures such as sales force, advertising, sales promotion, and
distribution.
Directions: Identify whether the item is an element or type of accounting or

marketing control. Write A if related in accounting control, and M if it is related to
marketing control. Write your answers in a separate sheet.
1. Strategic control 6. Market share analysis
2. Income Statement 7. Balance Sheet
3. Net Income 8. Long-term liabilities
4. Customer tracking 9. Sales analysis
5. Current Assets 10. Annual plan control
ACTIVITY 12.1 CONTROLLING
Directions: Describe briefly the possible errors and their remedial actions
affecting the four managerial functions. Write your answer in a separate
sheet.
FUNCTIONS and POSSIBLE

ERRORS/DEVIATIONS REMEDIAL ACTIONS
PLANNING
1.
2.
79
3.
ORGANIZING
1.
2.
3.
STAFFING
1.
2.
3.
LEADING/DIRECTING
1.
2.
3.
MODULE 13
This module discusses the different functional areas of management. This 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 non-profit organizations.
Explain the nature and role in the firm of the following functional areas of
management:
a. Human Resource Management
b. Marketing Management
c. Operations Management
d. Financial Management
e. Material and Procurement Management
f. Office Management
g. Information and Communication Technology Management
LC Code: ABM_AOM11-IIi-39
This module specifically discuss:
Lesson 13 - Introduction to the Different Functional Areas of Management

Explain the nature and role in the firm of the following functional areas of
management:
80
a. Human Resource Management
b. Marketing Management
c. Operations Management
d. Financial Management
e. Material and Procurement Management
f. Office Management
g. Information and Communication Technology Management
Lesson Introduction to the Different

13 Functional Areas of Management
Different Functional Areas of Management

To prepare you to become a
future leaders and managers, you
must become familiar with the
functional areas of management. -
In doing so, you will be
ready for the local and global
challenges That you will inevitably
meet tomorrow’s workplace.
Managerial and leadership
functions are essentially the same
because all these aims to establish
an environment for the effective and
Retrieved from :https://www.slideshare.net/christinejoyjubacpilapil/chapter- efficient performance of an
8-introduction-to-the-different-functional-areas-of-management. Accessed individual s and cooperate with one
November 12, 2020
another in teams/groups of different
organizations.
The different functional areas of Management with basic functions of
management:
Human Resource Financial

Management MANAGEMENT Management
(POSDICON)
Marketing Planning Material & Procurement

Management Organizing Management
Staffing
Directing
Operation Controlling Office
Management Management
Information and Communication Technology

Management
81
HUMAN RESOURCE FUNCTIONS OR ROLES OF HUMAN
MANAGEMENT MANAGEMENT
HUMAN RESOURCE MANAGEMENT 1. Conducting Job Analysis
is the process of attracting, training, 2. Planning Labor and recruiting
developing, and maintaining an 3. Selecting candidates for the job
excellent workforce. 4. Orienting and training new
HUMAN RESOURCE MANAGEMENT employees
Is the process of planning, organizing, 5. Managing compensation or pay.
staffing, directing, controlling the 6. Providing incentives and benefits
human/personnel activities. 7. Evaluating employee’s performance
HUMAN RESOURCE also known as 8. Communicating
human capital, drive the performance 9. Developing employees
of organization s along with other 10. Building employee commitment
resources. 11. Providing good working conditions
HUMAN RESOURCE MANAGERS – 12. Handling grievances and industrial
recruits, conducts interviews, and manage relations
benefits based on company policies.
MARKETING MANAGEMENT FUNCTIONS OF MARKETING

MANAGEMENT
MARKETING MANAGEMENT is the 1. Analyzing, planning, implementing,
process of managerial planning and and controlling of goods, services and
carrying out of the conception, pricing, ideas to create exchanges that satisfy
promotion, and distribution of ideas, customer needs and company goals.
goods, and services in order to bring 2. Management of marketing resources.
about exchanges to satisfy individual Such as salespeople, advertising,
and organizational goals. marketing research.
(As defined by the American Marketing Advertising is any system of
Association) attracting public notice to an event the
MARKETING MANAGEMENT is the desirability of commercial products for
process of planning, organizing, sale.
staffing, directing, and controlling the 3. Analyze plan and implement
marketing activities. marketing programs that aim to bring
MARKETING MANAGERS- are tasked about an expected level and mix of
of developing strategies for the brand business dals with target markets.
analyzing the demand for the product 4. Stimulate demands for the products
or services. of the company.
They also identify potential 5. Make crucial decisions that will
markets, distributors, and ensure the company’s competitiveness.
competitors. 6. Make sure that marketing
MARKETING MANAGERS are also techniques employed are efficient,
called product managers or brand effective, and socially responsible and
managers. ethical.
OPERATIONS MANAGEMENT FUNCTIONS OF PRODUCTIONS

MANAGEMENT
OPERATIONS MANAGEMENT 1.Overseeing the transformation
The study of how goods and services are processes that change resources into
produced in an organization. finished goods and services.
82
OPERATIONS MANAGEMENT is the 2. Improvement of productivity and
process of planning, organizing, directing, and competitive advantage.
controlling the production activities.
PRODUCTION is the creation of anything Productivity measures the efficiency
of value such as goods, services, or ideas by which inputs are turned into
that people want are willing to pay for. outputs.
PRODUCTION in reference to
manufacture, is the processing of 3. Managing the sequence of activities
materials into a new expected form. and information along the whole
PRODUCTION MANAGERS – deal with course of the value chain.
the resource and service requirement s of
manufacturing of production.
Their managerial tasks are
production scheduling, procurement,
maintenance, equipment, and facilities
repair.
Retrieved
from:https://masterstart.co
m/blog/financial-
management/financial-
management-overview/
Accessed November 17,2020
FINANCIAL MANAGEMENT FUNCTIONS OF FINANCIAL

MANAGEMENT
FINANCIAL MANAGEMENT - is 1. Taking charge of the company’s
the management and custody of the financial policies and strategies,
organization’s funds, seeing to it that investments, capital structures, and
funds are effectively and efficiently dividend policies.
utilized in order to provide for all the 2. Financial Management and control.
needs of the organization’s various 3. Financial Planning.
operating units.
FINANCIAL MANAGEMENT is the Financial Planning is the process of
process of planning, organizing, setting financial objectives and
directing, and controlling the financial determining what should be done to
activities. accomplish them. This includes:
FINANCE – is defined as the art and  financial forecasting
science of managing money. It can also  financial analysis
be defined as the effective acquisition  financial performance
and management of the assets of an evaluation
organization.
FINANCE MANAGERS- supervise all
finance operations. They raise funds,
invest assets, and manage them
effectively in economically unstable
environment.
83
MATERIAL AND PROCUREMENT FUNCTIONS OF MATERIAL AND
MANAGEMENT PROCUREMENT MANAGEMENT
PROCUREMENT MANAGEMENT is the 1. The proper utilization of money
process of planning, organizing, staffing, is extremely important to the
directing, and controlling the procurement survival of every individual and
activities. company.
PROCUREMENT is the act of purchasing or
acquiring goods and services for company 2. Purchased materials and
use. Companies usually have a separate services include the biggest part of
department for procurement which is called expenditures in most companies.
the Purchasing Department.
Purchasing department is in charge in 3. The investment in raw materials,
acquisition of materials and resources for parts, and supplies inventory in
the different departments in the some companies is essential, and
organization. the efficient management of such
PROCUREMENT MANAGERS OR inventory can contribute to profit.
PURCHASING MANAGERS – supervise the
procurement process of the company. They
evaluate and approve for acquisition and
ensure that materials purchased are of
good quality and purchases at competitive
price.
OFFICE MANAGEMENT FUNCTIONS OF

OFFICE MANAGEMENT
OFFICE MANAGEMENT - Involves the 1. Determining the complete course
proper handling maintenance of the action to accomplish the work.
clerical aspects of all the functional
departments of the organization, as well as 2. Providing an effective office
facilitation of proper communication, organization
coordination, and storage of data.
OFFICE MANAGEMENT is the process of 3. Inspring the office personnel to
planning, organizing, staffing, directing, do their best.
and controlling office activities and those
performing them in order to achieve
determined objectives
MIDDLE MANAGERS OR SUPERVISORS
perform a number of roles related to office
management, such as coordinating with
support services, and ensuring that
deadlines are met, and efficiency is
maintained in their respective
departments by formulating appropriate
strategies.
84
INFORMATION AND FUNCTIONS OF INFORMATION
COMMUNICATION TECHNOLOGY AND COMMUNICATION
MANAGEMENT (ICTM) TECHNOLOGY MANAGEMENT
(ICTM)
THE MANAGEMENT OF INFORMATION
AND COMMUNICATION TECHNOLOGY 1. Developing the organization’s
that collects, organizes and distributes hardware, hardware, software, and
data to be used in the organization’s other computing and communicating
decision- making function. technology.
Information Systems are now
indispensable tool in conducting 2. Developing the organization’s
business. Mangers can utilize these in management information system
accessing and managing the crucial (MIS) tailored to the needs of the
information that they need to perform firm’s units.
their management functions.
Information technology is extensively 3. Encouraging e-commerce through
used in business operations, with many Internet use.
of the information regarding processes,
personnel, clients, suppliers, and market
statistics now provided in electronic
formats for easy access and exchange.
INFORMATION SYSTEM MANAGERS
take charge of establishing an
information system, managing its
components and programs, and
rendering technical support to the
various departments in the organization.
Their tasks include software and
hardware management, networking, and
internet maintenance.
Directions: Matching. Match the items in Column 1 with the items in Column 2.
Write only the letter of the correct answers in a separate sheet.
COLUMN 1 COLUMN 2
1.Information Communication a. Their tasks include software and
and Technology Management hardware management, networking, and
(ICTM) internet maintenance.
2.Marketing Managers b. They raise funds, invest assets, and
manage them effectively in economically
unstable environment.
3.Human Resource Management c. Is the process of planning, organizing,
staffing, directing and controlling the
procurement activities.
4.Financial Management d. Is the process of planning, organizing,
staffing, directing, controlling the
human/personnel activities.
5.Information System Managers e. Providing an effective office organization.
85
6.Office Management f. Is the process of planning, organizing,
directing, and controlling the financial
activities.
7.Material and Procurement g. They are also called product managers or
Management brand managers.
8.Finance Managers h. Oversee transformation of resources into
finished product.
9.Marketing Management i. Stimulation of demands for company’s
product
10. Operations Management j. Collect, organize, and distribute date
needed for the firm’s decision-making
function.
ACTIVITY 13.1 Different functional areas of Management
Directions: Think of a business proposal. Give some activities affecting the

various areas of management. Write your answer in a separate sheet.
BUSINESS PROPOSAL:
AREAS OF
MANAGEMENT ACTIVITIES
Production
Management
Marketing
Management
Financial
Management
Human
Resource
Management
86
MODULE 14
This module highlights the discussion on the significant role of the small
businesses in the Philippine Economy and encourage the students to apply their
skills and engage in business through the formulation of business plan.
These lessons will explain understanding of starting small business in the country:
Lesson 14 Special Topics in Management

Small business Management and Entrepreneurship
Family Business Enterprise
Starting a Business Legal Forms and Requirements
Explain the steps and importance of starting a family business
Learning Code: ABM_AOM11-IIj-40
ABM_AOM11-IIj-41
ABM_AOM11-IIj-42
At the end of this Modules, you are expected to:

1. explain how to start family business;
2. appreciate the role of small/family business operation in the improvement of
one’s economic status; and
3.identify legal business forms and requirements.
Lesson
14 Special Topics in Management
1. Small Business Management and Entrepreneurship
ENTREPRENEURSIP AND MANAGEMENT

Innovative, creative, and intuitive thinking in business management helps
entrepreneurs come up with great ideas or new strategies that may lead to the
successful achievement of their goals-service, growth, and profitability.
87
ENTRPRENEURSHIP 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.
ENTREPRENEURSHIP also has socio-economic contributions. It provides
employment, not only to the entrepreneur, but to fellow Filipinos. Thus, helping
ease unemployment. Entrepreneurship provides additional sources of taxes for the
government, hence contributing to Philippine economic progress.
ENTREPRENEUR is an individual who establishes a business for the purpose of
achieving profit. He or she identifies opportunities and acquire s and organize the
resources. Needed for such business. Most entrepreneurs start small. Successful
entrepreneurs can easily spot a business opportunity and capitalize on that
opportunity to gain maximum profit. Entrepreneurs, now adays come up with
innovative ideas and approaches in business, often redefining traditional ways of
doing business.
ENTREPRENEURIAL PROCEDURE INCLUDES THE FOLLOWING:
1. Formulate the business Vision-Mission Statements
2. Segment the market into:
a. Geographical – market segmentation may be used on location (city,
province, region, or country: north, south, east and west)
b. Demographical – bases consider population and further be extended to
include age, income, education, marital status, and other related
information.
c. Psychographical – psychographics looks into people’s behavior toward
purchasing or spending, or toward a product or service.
d. Behavioral – segmentation may be based on people’s behavior toward
purchasing or spending, or toward a product or service.
3. Find the Target Market
4. Understand the environment – internal and external environment
5. Develop the business plan
Business plan is a road map which the business must follow utilizing the
resources at hand while keeping the environment in mind.
6. Implement and monitor the business venture
7. Maximum the utilization of human resources.
2. Family Business Enterprise

Nowadays, there are many successful family businesses run by entrepreneurs
who have different stories to tell and different strategies for their business success.
However, they have possessed some common characteristics such as creativity,
innovativeness, service orientation, and the ability to take risks and do hard work,
among others There are stories wherein ordinary family members despite of starting
with meager capital, have persevered to produce competitive products or render of
good services that brought them success in their chosen business endeavor.
 SMALL BUSINESS a business that has fewer r 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
88
producing goods or rendering services designed to satisfy particular needs of
customers.
 FAMILY BUSINESS a business owned and financially controlled by
members of the family.
 ENTERPRISE any projected task or work, an undertaking
THE FAMILY BUSINESS ENTERPRISE
Families owning businesses are common around the world. It is estimated
that about 65% of registered business worldwide are owned by families. The
Philippine business sector is dominated by well-known family-owned businesses,
and about 80% of business enterprise in the country are run by families.
Among the most famous of Filipino business families are the Sy family,
owners of SM Investments and SM Prime Holdings; the Lopez’s, who owns Lopez
Holdings and ABS-CBN; the Gokongwei’s of Universal Robina, Robinson’s, and
Cebu Pacific; and the Ayala Family of Ayala corporation and Globe Telecom.
.
CHARACTERISTIC OF FAMILY-OWNED BUSINESS
 The primary characteristics of a family business is that its owners consider

the business as a legacy that will be passed on to the next generation.
 Family- owned business consider the long-term perspective with regards to
the performance of the business.
 Family owners aim to maintain and improve the performance of the business
and allow the next generation to reap and re-sow the fruits of the company’s
success.
 The family- owned business is also viewed not merely as an organization,
but an extension of the family where each member is given great importance.
3. Starting a Business: Legal Forms and Requirements

The legal form of business is determined by its ownership or proprietorship. A
business may be a single proprietorship, a partnership, a corporation or a
cooperative.
WHY AND WHERE WE SHOULD A BUSINESS BE REGISTERED?
BUSINESS REGISTRATION is a government requirement that orders new
business owners to furnish government agencies with necessary information prior
to the legal operation of their business organization.
Businesses or entrepreneurial ventures must be registered in compliance to
Philippine Laws. Without proper registration in authorized government agencies, the
business cannot operate legally. Registering also give credibility to business, hence
helping earn the trust of customers, suppliers, partners, and other stockholders.
REGISTRATION DOCUMENTS SHOULD BE SUBMITTED TO THE:
 Department of Trade and Industry (DTI) and the Securities and Exchange
Commission (SEC) for commercial registry;
 Barangay office for clearance and securing community tax certificate;
 City mayor’s office for the mayor’s permit and license to operate;
 City or national government agencies for sector- specific licenses/permits;
 Bureau of Fire Protection (BFP) for safety clearance
 Bureau of Internal Revenue (BIR) for taxation purposes;
89
 Pag-IBIG Fund (Home Development Mutual Fund)office for employee’s
housing needs/security; and
 The Department of Labor and Employment (DOLE) for labor statistics
REGISTRATION OF THE LEGAL FORMS OF BUSINESS
Future entrepreneurs must contact the government agencies concerned
regarding their updated or revised rules and regulations as well as latest legislations
that may have to be complied with.
SINGLE PROPRIETORSHIP Single Proprietorship Registration
Single Proprietorship – a business 1. Business name registration with the
owned by one person only. DTI
In single proprietorship the owner 2. Submission of two recent 2x2 ID
and the business are considered one, pictures
meaning the owner’s income and the 3. Submission of Filipino citizenship
business income are one and the same proofs examples of needed evidence are
and the same and the business income birth certificates, passport and voter’s
is taxed as personal income. ID among others
Decision-making is the sole 4. Payment of application fee for
responsibility of the owner and if it processing fee plus documentary stamp
succeeds, he gets all the profits. If it amount
fails, he suffers the losses and has to
pay all debts incurred.
PARTNERSHIP Partnership Registration
PARNERSHIP is business formed when 1. Filing of the previously prepared
two or more persons formally agree to partnership agreement by two or more
be joint owner of a business. applicants with the SEC.
Their resources (money and other 2. Payment for the filing fee
assets and talents (skills, experience,
management expertise) maybe pooled 3. Valuation of the application by the
together. lawyer and staff of the Corporate and
Legal Department of SEC.
All partners share the profits equally,
unless otherwise specified in their 4. Release of the approved application
partnership agreement. (within 15 to 30 days)
CORPORATION Corporation Registration
CORPORATION is a business company 1. Filing of the previously prepared
involving five or more persons owning articles of incorporation and by-laws
it. and bank certification regarding
The corporation is registered and stockholder’s share of stock s with SEC
recognized by law as a “legal person”
that has legal rights and 2. Payment of the registration fee
responsibilities, can be sue or be sued
in court, can own and sell properties, 3. Valuation of the application by the
and can transact/enter into contracts. lawyer and staff of the Corporate and
Ownership is divided into units known Legal Department of SEC
as “shares of stocks” and owners are
called stockholders. 4. Release of the approved application
A board of directors, elected by the (within 15 to 30 days)
stockholders on a regular basis,
manage the corporation which is run
90
according to term specified by their by-
laws and articles of incorporation.
COOPERATIVE Cooperative Registration

Cooperative is group enterprise made 1. Submission of four copies of previously
up of several traders, consumers, and prepared economic survey with a general
producers who interested to produce or statement that describes the cooperatives’
trade as a group. structure, purpose, economic feasibility,
operation area, and membership size, among
The cooperative original purpose was others to the Cooperative Development
to supply those involved with good and Authority (CDA)
services at lower cost as compared to 2. Submission of four copies of
those bought from retailers. previously prepared articles of
cooperative agreement together with
A group of officers, called board of the bonds paid for accountable officers.
directors and committee, headed by 3. Submission of four copies of the
chairman, manage the cooperative cooperative’s by-laws
activities. 4. Payment of registration fee prescribed
by CDA
5. Release of approved registration on
specified dates.
Directions: Arrange the steps involved in the Entrepreneurial Procedure or

Process according to its chronological order. Number the first step 1 and the last
step 7.
a. Find the target market
b. Develop the business plan
c. Understand the environment
d. Implement and monitor the business venture
e. Segment the market
f. Formulate the business vision and mission statements
g. Maximize the utilization of business resources
ACTIVITY NO. 14.1 SPECIAL TOPICS IN MANAGEMENT

Directions: Analyze the situation and write an essay discussing the questions
that follow. Write your answer in a separate sheet.
91
IF YOU WERE THE MANAGER
A high-level manager in an information technology firm was invited by his friend
to join a start-up business that will produce an application software to help
Filipinos manage their everyday finances. The manager was told that his
experience in overseeing a IT-based company will be immense or enormous
value to start-up. The manager was hesitant since it would mean leaving the
company where he worked in for two decades.
7Discussion Questions
1. If you were the manager, will you take the chance and join the start-up?
Why or why not?
2. What information would you need from the start-up business to further
clarify your choice whether to join the company or not?
3. What advice would you give the entrepreneurs to guide them in their
start-up business?
POST TEST: Choose the letter of the best answer. Write the chosen letter on a
1. A functional area of management responsible in financial management and
control.
a. Office Management c. Financial Management
b. Marketing Management d. Operation Management
2. A road map which the business must follow utilizing the resources at hand
while keeping the environment in mind.
a. Business Plan c. Tactical Plan
b. Marketing Plan d. Strategic Plan
3. The process of acquiring and developing human resources to carry out and
perform various activities of the organization.
a. Scanning c. Organizing
b. Planning d. Staffing
4. Is the procedure for determining the duties and skill requirements for a job or
position, as well as other qualifications sought for in an employee or applicant.
a. Job Specification c. Job Analysis
b. Job Description d. Job Position
5. 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.
a. Planning c. Controlling
b. Staffing d. Organizing
Are used for measuring an organizations financial stability, efficiency effectiveness,
production output, and organizations member’s attitude and morale.
c. Control Methods c. Feedback Control
d. Financial Control d. Feedforward Control
6. Theory of motivation which predicts that employees are motivated to work well
because of the attractiveness of the rewards or benefits that they may possibly
receive from a job assignment.
a. Scientific Management Theory c. Equity Theory
b. Expectant Theory d. General Administrative Theory
7. Gift, prize, or recompose for merit, service or achievement which may have a
motivating effect on the employee.
a. Rewards c. Promotion
b. Salary d. Compensation/wage
8. Refers to process of social influence that enables a person to encourage others
and enlist their aid and support.
a. Motivation c. Communication
b. Leadership d. Controlling
9. Is important in organizing jobs, it can take several forms: verbal, written and
expressed or body language.
a. Directing c. Motivation
b. Controlling d. Communication

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DIVISION OF NAVOTAS CITY

Published by the Department of Education

Development Team of the Module

Writer: Caroline D. Nepomuceno

 Lesson 6 – Planning Techniques and Tools and their applications

At the end of this lessons, you are expected to:

1. apply appropriate planning techniques and tools;

2. understand the decision-making process; and

3. formulate a decision from several alternatives.

Lesson Planning Techniques, Tools and

PLANNING TECHNIQUES AND TOOLS AND THEIR APPLICATIONS

 All planning types without exception, make use of forecasting.

2. CONTINGENCY PLANNING contingency factors may offer alternative courses of

3. SCENARIO PLANNING is a planning for future states of affair s is a long-term

5. PARTICIPATORY PLANNING is a planning process that includes the people who

Figure 6.1 Break-even Chart

Figure 6.2 Gantt Chart

Decision-making is the process of choosing a specific procedure or course of

2. Unstructured or nonprogrammed decisions- applied to the resolution of

TYPES OF DECISION-MAKING CONDITIONS

Step 2: Identify the Decision Criteria

Step 3: Allocate Weights to the Criteria

Step 4: Develop Alternatives

Step 5: Analyze the Alternatives

Step 6: Select an Alternative

Step 7: Implement the chosen Alternatives

Step 8: Evaluate Decision Effectiveness

Directions: Analyze each situation and identify what type of decision to be

Characteristics Programmed Nonprogrammed

1. Investing in a new unproven technology

2. Can you identify problem? State the problem.

3. Can you recommend at least three solutions in this case?

 Lesson 7 – Nature of Organization and Types of Organization Structures.

At the end of this lessons, you are expected to:

2. distinguish the various types of organization structures; and

3. understand the significance of organization structures for effective

NATURES OF ORGANIZATIONS AND TYPES OF ORGANIZATION

 Organization is the structure in which harmonious inter-relationship of

3. DIVIDING AND GROUPING THE ACTIVITIES

4. ACCOMPLISHMENT OF GOALS OR OBJECTIVES

6. HUMAN AND MATERIAL ASPECTS

Difference between organizational structure and organizational chart

TYPES OF ORGANIZATIONAL STRUCTURES INCLUDE:

B. HORIZONTAL STRUCTURE refers to the departmentalization of an organization

DEPARTMENTALIZATION results from grouping of work, the desire to obtain

DEPARTMENTALIZATION may be done using three approaches

a. Functional approach -where the subdivisions are formed based on

Figure 7.2 Organizational Chart with Horizontal Structure- Functional approach

b. Divisional approach – where departments are formed based on

Figure 7.4 Organizational Chart with Horizontal Structure-Divisional approach by product

c. Matrix approach- is a hybrid form of departmentalization where managers

Figure 7.5 Organizational Chart with Horizontal Structure- Matrix

C. NETWORK STRUCTURE - is a collection of independent, usually single function

ACTIVITY 7.1 CASE STUDY: ORGANIZING

2. Can you identify the problem? State the problem.

In this module, the different organization theories and applications used in

2. identify the different elements of delegation; and

3. differentiate formal and informal organization.

Organizational theory attempts to explain the workings of organizations to