Lesson 4 : Motivation , Leadership and

communication work in an Organization

The main objective of this lesson is to delve into essential concepts
including the nature of leading and directing, distinguishing between
leading and managing, exploring various theories of motivation, identifying
different leadership styles, and recognizing the vital role communication
plays in guiding people within an organization.

The Nature of Leading and Directing

Leading or directing within an organization focuses on motivating
individuals to put forth their maximum effort toward achieving the
organizational goals. It is considered a critical aspect of management that
inspires team members to work both efficiently and effectively. The
essence of directing lies in the proactive encouragement of employees to
contribute actively towards the objectives of the organization.

Differentiating Leading from Managing

The distinction between leading and managing is pivotal in organizational
behavior:

● Managers: Primarily task-oriented, focusing on processes and

procedures. Managers are the strategic thinkers behind business
operations.
● Leaders: Goal-oriented and centered on people, motivating
employees to reach their full potential and improving team
performance.

In essence, management involves tasks while leadership entails fostering

relationships.

Big Five Personality Characteristics

In understanding effective leadership, the following five personality traits
are significant:
 ● Extraversion: The degree of sociability, assertiveness, and
enthusiasm in an individual.
● Agreeableness: Reflects cooperation, trust, and kindness in
interpersonal relationships.
● Conscientiousness: Pertains to dependability, organization, and a
strong sense of duty.
● Emotional Stability: Represents the level of calmness and security
versus the tendency to experience negative emotions.
● Openness to Experience: Indicates creativity, curiosity, and a
willingness to embrace new ideas.

Leading in Organizations
Effective leadership is influenced by the diverse attitudes and work
behaviors exhibited by teams. To enhance productivity and harmony:

● Organizational Citizenship Behavior (OCB): This refers to

behaviors that go beyond job requirements, such as exhibiting
concern for colleagues and engaging actively in teamwork.
● Organizational Commitment: Higher commitment levels are linked
to increased job performance; thus, leaders should aim to foster
loyalty and dedication among workers.

Understanding Motivation
To cultivate an environment where employees are motivated and high-
performing, managers should assess human needs and perceptions:

Maslow’s Hierarchy of Needs

● Physiological Needs: Basic necessities like food and shelter.

● Safety Needs: Ensuring security and protection from harm.
● Social Needs: The desire for affection and relationships with others.
● Esteem Needs: The need for respect and personal achievement.
● Self-Actualization Needs: The pursuit of personal growth and
realizing one's potential.

Theories of Motivation
 ● McGregor’s Theory X and Y: A perspective on employee motivation
where Theory Y emphasizes a positive outlook toward employee
capabilities and involvement in decision-making.
● Herzberg’s Two-Factor Theory: Distinguishes between intrinsic
factors that lead to job satisfaction and extrinsic factors that can
cause dissatisfaction.
● McClelland’s Three Needs Theory: Identifies the need for
achievement, power, and affiliation as key motivators. Tailoring roles
according to employee needs can enhance motivation.
● Alderfer’s ERG Theory: Consolidates Maslow's theories into three
core needs: existence, relatedness, and growth.

Modern Theories of Motivation

These theories emphasize that motivation depends on employees’
perceptions, thoughts, and beliefs about their work environment and
outcomes.

Leadership Styles and Theories

Leaders adopt various styles to influence their teams:

● Fiedler Model: Suggests that a leader’s effectiveness is contingent

on their leadership style fitting the situational context.
● Hersey-Blanchard Model: Focuses on adapting leadership style
based on the readiness level of followers.
● Path-Goal Theory: Proposes that leaders' primary role is to guide
followers along the path to achieving their goals.
● Transactional Leadership Model: Involves motivating followers
through rewards for achieving set organizational goals.
● Transformational Leadership Model: Aims to inspire followers by
creating a vision and encouraging extraordinary performance.

Communication in Organizations
Communication is essential for effective management. It involves the
exchange of information and varies by direction:

Direction and Flow of Communication

 ● Vertical Communication: Flows between different organizational
levels and includes directives from managers to subordinates.
● Horizontal Communication: Occurs between employees at the
same level, facilitating cooperation.

Types of Communication Networks

● Chain Network: Communications follow a structured chain of

command.
● Wheel Network: Characterized by a central leader relaying
information to team members.
● All-Channel Network: Encourages open communication among all
members of a team.
● The Grapevine: An informal communication network that can quickly
spread gossip or rumors.

Barriers to Communication

● Filtering: Involves selectively withholding information to influence

reactions.
● Emotions: The feelings of a receiver can distort the interpretation of
the message.
● Information Overload: Too much information can hinder effective
processing.

Overall, effective leadership, motivation strategies, and clear

communication are fundamental components in ensuring organizational
success and achieving desired outcomes.

Lesson 5 Controlling: Understanding Its

Nature and Importance in Management
Controlling is a vital function in the field of management, aimed at ensuring
that an organization's goals are achieved effectively and efficiently. At the
heart of controlling lies the process of monitoring performance, identifying
errors, and implementing necessary corrections to align outcomes with
established standards. This process enables organizations to address
deviations systematically, enhancing their overall performance.

According to management theorist Harold Koontz, controlling involves the

measurement and correction of performance to ensure that enterprise
objectives and plans are successfully accomplished. This definition
highlights the importance of controlling as a proactive rather than reactive
process; it emphasizes the need for management to anticipate errors and
take preventive measures rather than simply responding after problems
arise.

The Relationship Between Planning and Controlling

The functions of planning and controlling are intricately linked in the
management process. Planning sets the stage by defining organizational
goals, strategies, and standards. In turn, controlling ensures that the
organization's performance aligns with these predetermined plans. The
synergy between these functions is crucial; controlling provides vital
information that assists management in formulating new plans and in
making necessary modifications to existing strategies based on
performance data.

When plans are implemented, controlling acts as the mechanism that

verifies adherence to those plans, thereby ensuring that the organization
remains on track towards achieving its objectives. Consequently, the
insights gained from control methods become critical in guiding revisions
and enhancements to future planning efforts, creating a continuous loop of
improvement.

Control Methods in Practice

Control can be applied through various methods depending on the context
and specific needs of the organization. Some prevalent control methods
include:

● Feedforward Control: This proactive approach anticipates potential

issues before they occur, allowing management to take corrective
actions preemptively.
 ● Concurrent Control: This method involves monitoring processes in
real-time to ensure that they are adhering to planned standards.
● Feedback Control: This retrospective approach assesses
performance after the fact, offering insights that inform future actions.

Elements of Good Control

To establish an effective control system, several key elements must be
considered:

1. Feedback: The backbone of any control system, feedback comes in

two forms: formal feedback (including financial reports and statistics)
and informal feedback (such as personal observations and casual
discussions).
2. Objectivity: Controls must be based on objective criteria to ensure
unbiased evaluations of performance.
3. Prompt Reporting of Deviations: It is essential for management to
receive timely information regarding any discrepancies to act swiftly.
4. Forward-Looking Control: Managers should anticipate potential
deviations and prepare actions to avoid or mitigate them.
5. Flexible Controls: Control systems must be adaptable to changing
circumstances; for example, if production deadlines are at risk,
organizations may need to hire additional personnel to meet demand.
6. Hierarchical Suitability: Control mechanisms should align appropriately
with the organizational structure to function effectively.
7. Economical Control: Controls should be cost-effective and not exceed
the benefits they provide.
8. Strategic Control Points: Identifying critical areas for control helps
prioritize efforts and resources.
9. Simplicity: Control systems should be easy to understand for all employees involved.
10. Focus on Workers: Effective control should prioritize employee engagement and
motivation, as workers are central to achieving organizational goals.
The Different Functional Areas of
Management
Management is a multifaceted discipline that encompasses various
specialized functional areas that contribute to the overall effectiveness of
an organization. According to business management principles, success
relies not only on general management functions such as planning,
organizing, staffing, leading, and controlling but also on specialized skills
within specific domains. These functional areas include human resource
management, marketing management, operations management, financial
management, materials and procurement management, office
management, and information & communication technology management.
Mastery over these areas is essential for both small and large businesses
to thrive. Skilled management increases the likelihood of success and
sustainability, which is particularly aspirational for young entrepreneurs and
students looking to emulate exemplary business leaders like Henry Sy,
John Gokongwei, and Jaime Zobel de Ayala.

Understanding Career Anchors

One vital concept in career development is the idea of career anchors, as
developed by Edgar Schein, a former professor at MIT Sloan School of
Management. A career anchor is essentially an individual’s self-concept
related to their career, encompassing their perceptions of talents, abilities,
values, and motivations.

The Eight Career Anchor Compositions

1. Autonomy or Independence: Individuals who prioritize independence prefer
to set their own rules and work according to their own pace. They often find
fulfillment in roles such as consultants or independent business owners,
struggling with rigid company policies.

2. Security and Stability: These individuals prioritize job security, good salaries,
and benefits. They aim for stable job offers that cover their financial needs, often
opting for positions with clear long-term advantages.

3. Technical-Functional Competence: Highly skilled practitioners thrive on

challenges within their field of expertise, often choosing not to pursue managerial
roles in favor of deepening their technical knowledge in areas like engineering or
accounting.

4. General Managerial Competence: These individuals aspire to leadership

roles where they can influence organizational direction. Their satisfaction is
measured by the success of the teams they lead and the decisions they make.

5. Entrepreneurial Creativity: Innovators in this category derive satisfaction

from creating new ideas or products, often prioritizing creativity and innovation
over financial gains.

6. Service or Dedication to a Cause: Individuals in this category are motivated

by service and altruism. They seek roles that allow them to contribute to the
welfare of others, such as social workers or teachers.

7. Pure Challenge: Competitive individuals find fulfillment in overcoming

obstacles. They seek roles that offer constant challenges and the opportunity to
test their capabilities.
8. Lifestyle: This group values a balance between work and personal life, preferring work
arrangements that offer flexibility to accommodate family responsibilities.

Functional Areas of Management in Organizations

1. Human Resource Management
The Human Resource (HR) Management department is vital for recruiting skilled
employees across different organizational levels. HR duties include training
personnel to enhance their skills, ensuring compliance with labor laws (such as
overseeing apprenticeships), managing payroll processing, and maintaining
employee records. They ensure that employees are compensated according to
legal standards, monitor overtime calculations, and handle worker benefits such
as social security and health insurance. Additionally, HR mediates conflicts
between management and labor unions, emphasizing the importance of ensuring
job satisfaction among employees.

2. Marketing Management
The marketing department is tasked with driving sales through effective
advertisements and promotions. This department's success hinges on
understanding customer needs, handling complaints, and ensuring that
production meets market demands. Marketing strategies now heavily leverage
social media for advertisement efficiency and engaging with customers, allowing
for responsive customer service. Key roles in this area include Marketing
Directors, Managers, and Public Relations specialists, each responsible for
different oversight functions aimed at enhancing brand reputation and sales
performance.

3. Operations Management
Operations Management focuses on the logistical aspects of production.
Responsible for designing the production schedule and ensuring that materials
and services are readily available, this department also aims to maintain efficient
operations and high productivity levels. Coordination between production
managers and purchasing departments is essential to ensure timely availability of
materials, thereby adhering to production deadlines and achieving operational
goals.

4. Financial Management
The Finance department manages the monetary aspects of the company. This
includes raising funds, managing investments, and overseeing budgets. The
Chief Financial Officer (CFO) often leads this department, reporting directly to the
CEO. Key tasks handled include investment decision-making, financing options
determination, and asset management to support the company’s operational
goals and ensure sustainability. Financial managers also oversee various
specialized roles such as credit and cash management.

5. Materials and Procurement Management

This department oversees the acquisition of materials required for production. It
involves monitoring inventory levels and conducting price comparisons to procure
materials at competitive rates. A structured competitive bidding process is often
applied for large-scale acquisitions, ensuring that the organization acquires high-
quality products at reasonable prices.

6. Office Management
Office Management incorporates the efficient handling of clerical tasks across
various organizational functions. Employees in this domain, such as office
managers and administrative assistants, are crucial for maintaining orderly
communication and managing documentation. Effective office management
supports target achievement, optimal resource use, cost control, and overall
organizational productivity.

7. Information and Technology Management

Information Technology Management refers to the utilization of computer
systems and modern technology to streamline communication both within and
outside the organization. Various information systems are implemented to help
track sales, finances, and human resources, facilitating data-driven decisions that
enhance operational efficiency.

Small-Family-Business
National SMALL FAMILY BUSINESS

Objectives

● By the end of this lesson, students should be able to:

○ Explain how to start a small family business
○ Identify business legal forms and requirements
○ Appreciate the role of small family businesses in improving economic
status

How to Start a Small Family Business

● Family businesses are prevalent worldwide.

● In the Philippines, many of the most profitable and renowned businesses are
family-owned.

Entrepreneur

● Definition: An entrepreneur is an individual who establishes a business to achieve

profit.
● Most entrepreneurs start small and are skilled at spotting business opportunities
to maximize profits.

Characteristics of a Successful Entrepreneur

1. Initiative
2. Self-reliance
3. Vision - Entrepreneurs dream big and know how to turn those dreams into reality.
Types of Businesses According to Size and Growth Potential

1. Gazelles
● Small companies with high growth potential.
2. Microbusiness
● Operate on a small scale with limited profits (e.g., service shops, beauty
salons, repair shops, sari-sari stores).
3. Small and Medium Sized Businesses (SMEs)
● Companies with 50 to 250 employees and total assets worth between
500,000 to 20 million pesos.

Basic Business Permits

● Entrepreneurs must comply with laws, regulations, and guidelines ensuring

product service quality and proper business conduct.
1. Barangay Clearance
2. DTI Business Name Registration Certificate
3. SEC Certificate of Registration
4. Mayor’s Business Permit
5. BIR Certificate of Registration
6. SSS Employer’s Registration
7. PhilHealth Employer’s Registration
8. Pag-IBIG Employer’s Registration
9. DOLE Registration

Special Business Permits

1. Bangko Sentral ng Pilipinas (BSP)

2. Bureau of Food and Drugs (BFAD)
3. Bureau of Animal Industry (BAI)
4. Bureau of Fisheries and Aquatic Resources (BFAR)
5. Bureau of Forest Development
6. Bureau of Plant Industry
7. Commission on Higher Education (CHED)
8. Department of Trade and Industry (DTI) and Bureau of Product Standards (BPS)
9. Fiber Industry Development Authority (FIDA)
10. Forest Management Bureau (FMB)
11. Garments and Textile Industry Development Office (GTIDO)
12. Insurance Commission (IC)
13. Intellectual Patent Office (IPO)
14. National Food Authority (NFA)
15. National Subcontractors Exchange (SUBSONEX)
16. National Tobacco Administration (NTA)
17. Philippine Coconut Authority (PCA)
18. Technical Educational and Skills Development Authority (TESDA)