Organization and Management

Chapter 6

Lesson 1: Leading

Leading – management function that involves inspiring and influencing.

Management – the process of working with and through others to achieve

organizational objectives. Deals with planning, organizing, staffing, leading, and
controlling.

Personality – pertains to the unique combination of physical and mental

characteristics of an individual.

Robbins and Coulter – develop the 5 Personality Characteristics in 2009 also

called as Big Five Model.

 Extraversion – someone is sociable, talkative, and assertive.

 Agreeableness – someone is good natured, cooperative, and trusting.
 Conscientiousness – someone is responsible, dependable, persistent, and
achievement-oriented.
 Emotional Stability – someone is calm, enthusiastic, and secure or tense,
nervous, depressed, and insecure.
 Openness to Experience – someone is imaginative, artistically sensitive,
and intellectual.

Emotional Intelligence (EI) – ability to manage one’s self and interact with others
in positive ways.

Kreitner and Kinicki gave 4 key components of EI in 2013

 Self-awareness
 Self Management
 Social Awareness
 Relationship Management
Organizational Citizenship Behavior (OCB) – employee behaviour that exceeds
work role requirements.

Organizational Commitment – individual employee identifies with an

organization and its goals.

Job Satisfanction and Productivity – employees’ general attitude toward their

respective job.

Lesson 2: Motivation

Motivation – psychological processes that arouse and direct goal-directed

behaviour.

Theory – body of fundamental principles.

Maslow’s Hierarchy of Needs Theory – refers to the 5 human needs

 Physiological Needs – need for food, water, shelter, and other physical
necessities.
 Safety Needs – needs for security and protection.
 Social Needs – desire to be loved and to love and need for affection and
belongingness.
 Esteem Needs – need for self-respect, self fulfilment, and need to be the
best.
 Self-actualization Needs – financial needs in this theory.

Abraham Maslow published this theory in 1943.

McGregor’s Theory X and Theory Y – proposed by Douglas McGregor.

Theory X – the negative view of workers (little ambition, dislike work, and avoid
responsibilities)

Theory Y – the positive one (enjoy work, seek out and accept responsibility and
self-directed)
Herzberg’s Two Factor Theory – proposed by Frederick Herzberg. Also known as
the Motivation-Hygiene Theory – states that intrinsic factors (achievement,
recognition, growth, and responsibility) are associated by Job Satisfaction while
extrinsic (company policy, salary, security, and supervision) are from job
dissatisfaction. Intrinsic is the motivators while extrinsic is called hygiene factors.

McClelland’s Three Needs Theory – proposed by David McClelland.

 Need for achievement (nAch)

 Need for power (nPow)
 The need for affiliation (nAff)

Alderfer’s ERG Theory – developed by Clayton Alderfer in 1960’s. The needs for
physiological and materialistic well-being, to have meaningful relationship with
others and to grow as a human being, similar to maslow’s theory.

 E – Existence Need
 R – Relatedness
 G – Growth

Modern Theories of Motivation

 Goal Setting Theory – stating that specific goals motivate performance.

 Reinforcement Theory – behaviour is function of its consequences.
 Job Design Theory – employees are motivated to work well by combining
tasks to form complete job.
^Job Enlargement – horizontal expansion
^Job Enrichment – increasing of job depth
^Job Characteristics Model – have the 5 core job dimensions that serves as
motivators.
 Equity Theory – developed by J. Stacey Adams which states that employees
assess job outcomes in relation to what they put into it.
 Expectancy Theory – individual tends to act in a certain way.

5 Core Job Dimension

  Skill Variety – job requires different activities.
 Task Identity – job requires completion.
 Task Significance – job has significant impact.
 Autonomy – job provides enough freedom and discretion.
 Feedback – job requires results.

Lesson 3: Leadership Styles & Theories

Leadership – inspiring and influencing a group of people to achieve common goal.

Kreitner & Kinicki leadership theories

 Trait Theory – leader traits or personal characteristics that differentiate

leaders and followers.
 Beharioral Theory – focuses on behaviour, action, conduct, demeanor, or
deportment of a leader instead of his/her personality traits.

Contemporary Theories of Leadership

 Fiedler Model – proposed by Fred Fiedler. Leader’s effectiveness is

contingent or dependent on the extent to which a leader’s style is fitted to
actual situations.
 Hersey-Blanchard Model –proposed by Paul Hersey and Ken Blanchard.
Subordinates’ readiness or extent which the said subordinates have the
ability and willingness to accomplish a specific assignment.

4 Stages of Subordinate Readiness given by the two (H-B)

 Where the subordinates are both unable and unwilling to accomplish

 “ are unable but willing to do the task
 “ are able but unwilling to do their assigned tasks
 “ are both able and willing to do what the leader wants to complete the
task

Path-Goal Theory – developed by Robert House. Leader’s task is to lead his other
followers or subordinates in achieving their goals by providing them directions.
4 Leadership Behaviors by House

1. Directive Leadership – leader gives specific guidelines.

2. Supportive Leadership – leader shows concern and friendliness.
3. Participative Leadership – leader asks for suggestions from followers.
4. Achievement-oriented Leadership – leader sets the goals.

Modern Leadership Views

1. Transactional Leadership Model – leader guide their subordinate by using

social exchange or transactions and by offering rewards.
2. Transformational Leadership Model – leaders inspire or transform
followers to achieve extraordinary outcomes.
3. Charismatic Leadership Model – leaders who have charismatic personality
are able to influence their followers to follow them.
4. Visionary Leadership Theory – ability to create and articulate a realistic,
credible, and attractive vision that may improve present conditions.
5. Team Leadership Theory – leadership is increasingly taking place w/n a
team context.
6. Servant Leadership Theory – proposed by Robert Greenleaf in 1970.
Servant-leaders must focus on increased service to others rather than to
one’s self.

Lesson 4: Communication

Verbal Communication – oral & written

Non-verbal Communication – body movements, gestures, facial expressions, eye

contact or body contact.

Types of Communication

 Verbal
 Non-verbal
 Formal
 Informal
Vertical Communication – communication flow between people belonging to
different organizational levels.

Upward Communication – flow of info from an employee to the boss.

Downward Communication – flow of info from the boss to subordinates.

Horizontal/Lateral Communication – take place in same hierarchical level.

Diagonal Communication – take place in different units and different hierarchical

level.

Communication Network in Organizations

 Chain Network – usual formal chain of command, downward and upward.

 Wheel Network – flows between a leader and other member of their
group.
 All-channel Network – flows freely among all members of the team.
 Grapevine Network – informal (gossip)
 Computer Network – communication among organization members.
(technology)

Barriers to Communication

 Filtering – shaping of information

 Emotions – influenced by extreme emotions felt by the receiver.
 Information Overload – too much info is bad.
 Defensiveness – self-protection when there’s a threat.
 Language – words used may have different meanings to different people.
 National Culture – multinational company is not going to work.

Overcoming Communication Barriers

1. Using Feedback – asking to give their comments or suggestions.

2. Using Simple Language – avoiding uncommon terms and flowery words.
3. Active Listening – listening well in order to grasp the full meaning of the
communication.
 4. Controlling emotions – involves emotional restraint.
5. Observing Body Language – action speak louder than voice.

Lesson 5: Change and Diversity

Organizational Change – brought by external or internal forces.

Organizational Diversity – making people different from and similar to each other
in organization.

Types of Change

 Changes in people – everything in people changes as time goes by.

^Organizational Development (OD) – used to describe organizational
change methods.
^Unfreezing – Faced with dilemma or issue. They are aware of change.
^ Changing – new models of behaviour are explore and tested.
^Refreezing – application of new behaviour is evaluated.
 Changes in structure – organizational structure may also change according
to work specialization, departmentalization, change of command, etc.
 Changes in technology – changes in work processes and method used.
Introduction of new equipment and work tools, automation or
computerization.

Managing Resistance to Change

 Education – needs to be educated to know the reasons for the relevance of

change.
 Participation – allow members to participate in decision-making.
 Facilitation and support – facilitate and provide new skills training to
minimize the fear of change.
 Manipulation of Information – withhold damaging info about change.
 Selection of people – select people who are open to change.
 Coercion – use of direct threats to make people accept change.

Lesson 6: Filipino and Foreign Cultures

Culture – a set of beliefs and values.

Organizational Culture – a set of shared values and norms/standards for

behaviour and expectations.

3 Primary Filipino Values

 Social acceptance – desire of Filipinos to be accepted and treated well by

others.
 Economic Security – one must have financial stability and that she/he can
stand on his/her own feet w/o debts.
 Social Mobility – desire to move up the social ladder to another higher
economic level, etc.

Mañana Habit – it is alright to postpone work.

Ningas Cogon – initial show of enthusiasm over a project during its beginning.

Filipino Time – arriving late and ignoring the original time.

Cultural Dimension according to Kreitner & Kinicki

 Gender Egalitarianism – amount of effort which must be put into

minimizing gender discrimination.
 Assertiveness – how confrontational and dominant individual should be in
social relationships.
 Performance Orientation – how much individual should be rewarded for
improvement.
 Humane Orientation – how much society should encourage and reward
people for being kind.

Cultural Relativism – different interpretations of the same behaviour by members

of different cultures.

Ethnocentrism – beliefs that one’s own way of ife and culture is superior to
others.

Chapter 7
Lesson 1: Management Control

Controlling – work of the organization’s members are aligned with organization’s

values and standards through monitoring, comparing, and correcting their
actions.

Standard – any measure of extent quantity, quality, or value.

Control Process

 Establishing Standards – setting criteria for performance.

 Measuring and Reporting actual performance and comparing it with set
standards – essentially the monitoring of performance.
 Taking Actions – involves the correction.

Lesson 2: Planning and Controlling

Double Entry Accounting – preparation of two different accounting reports.

Dual Entry – process of journalizing the debit and credit.

Liquidity – ability to meet short-term obligations.

Balance Sheet – is a financial statement or the snapshot in other book of

accounting.

A = L+C

Income Statement – also known as the profit and loss statement, revenue and
expenses statement, statement of financial performance, or earnings statement.

Statement of Cash Flow – summarizes the inflow and outflow of cash during a
given period.

Organizational Performance Control

 Organizational Productivity – the amount of goods or services produced.

 Organizational Effectiveness – is a measure of the organizational goals’.

Other Performance Controls in Organizations

  Computer-based Control Systems – firms’ database which could provide
meaningful information for performance evaluation.
 Bureaucratic Control – make use of strict rules.
 Clan Control – compliance with norms, values, etc.

Lesson 3: Control Methods and Systems

Control Methods – techniques used for measuring an organization’s financial

stability.

Quantitive Control Methods – make use of data or numbers.

Non- Quantitive Control Methods – make use of tools such as reports or written
works that doesn’t involve numbers.

Budgets – best known control device.

 Zero-based budgeting (ZBB)

 Planning, programming, and budgeting system (PPBS)

Audits – involves nontactical operations such as accounting and finances.

Feedforward Control – prevents problems.

Concurrent Control – takes place when work activity is happening.

Employee Discipline – control challenge for managers.

Project Management Control – project’s activities are done on time.

Lesson 4: Applications

Sales – considered as the lifeblood of the business.

Management Controls – makes use of balance sheets, different types of

statements.

Strategic Control – systematic monitoring.

Macroeconomic Environment – includes economic aggregates such as national
income, total volume of savings, and money supply.

Financial Control Ratios

 Liquidity ratio – test the organization’s ability to meet short-term

obligations.
 Leverage ratio – determines if the organization is technically insolvent.
 Activity ratio – determines if the organization is carrying more inventory
than what it needs.
 Profitability ratio – determines the profits that are being generated.

Benchmarking – an approach of measuring a company’s own service and

practices.

Weihrich & Koontz (2005) three types of benchmarking

a. Strategic Benchmarking – compares various strategies

b. Operational Benchmarking – compares relative costs of possibilities.
c. Management Benchmarking – focuses on support functions.

Lesson 5: Budgets in Planning and Controlling

Budget – plans to monitor, control, and implement the firm’s resources.

Fixed Budget – fixed amount of resources for a specific purpose.

Steps towards better budget-making

1. Collaborate and communicate with organization administration

2. Practice flexibility
3. Relate the budget to company goals
4. Coordinate the budget with all the company departments
5. Use computer software when needed

Chapter 5

Lesson 1: Staffing
Staffing – human resources function of identifying, attracting, hiring, and
retraining people said by Dyck and Neubert (2012)

Staffing 2 main components

 Recruitment – attracting the people with necessary qualifications.

 Selection – choosing who to hire.

Steps in Staffing

1. Identifying job position

2. Checking internal environment
3. External recruiting
4. Selecting those with essential qualifications
5. Placing the selected applicants
6. Promoting
7. Evaluating performance
8. Planning of employee’s career
9. Training of human resources
10.Compensating human resources

External Factors – economic, technological, social, political, and legal force.

Internal Factor – firm’s goal and objectives, technology, the types of work that
have to be done, salary scales, and the kinds of people employed.

Lesson 2: Recruiting

Recruiting – set of activities designed to attract qualified applicants for job

vacancies.

Staffing – filling in all organization job position.

System approach to staffing – step-by-step way of filling job positions in

organizations.

Internal Recruitment – filling job vacancies can be done through promotions of

employees who are already part of the organization.
External Recruiting – outside the organization.

Methods of External and Internal Recruitment

 Advertisements – websites, newspaper, radio, television, etc.

 Unsolicited applicants – may or may not be qualified for job openings.
 Internet recruiting – independent job boards on the web.
 Employee referrals – recommendations from the organization’s present
employees.
 Executive search firms – also known as ‘head hunters’; help employers find
the right person for the job.
 Educational institution – good sources of young applicant or new graduates
who have formal training.
 Professional associations – may offer placement services to their members.
 Labor union – possible sources of applicants for both blue and white collar
jobs.
 Public and private employment agencies – may also good source of
applicants.

Lesson 3: Selection

Selection – choosing individuals who have the required qualifications.

Interview – determining of an applicant’s qualifications.

Steps in Selection

1. Establishing the selection criteria

2. Requesting applicant to complete the application form
3. Screening by listing applicants who seem to meet the set criteria
4. Screening interview to identify more promising applicants
5. Interview by the supervisor/manager or panel interviewers
6. Verifying information provided by the applicants
7. Requesting the applicant to undergo psychological and physical
examination
8. The applicant that he/she has been chosen for the position applied for
Types of Job interview

 Structured interview – prepared questions.

 Unstructured interview – has no interview guide and it is freely to ask.
 One-on-one interview – one interviewer only.
 Panel interview – many/several interviewers

Types of Employment Tests

 Intelligent Test – to measure the applicant’s mental capacity.

 Proficiency and aptitude tests – his/her present skills and potential.
 Personality tests – reveal the applicant’s personal characteristics and
ability.
 Vocational Tests – show the occupation best suited to an applicant.

Lesson 4: Training and Development

Training – concentrates on short-term job performance and acquisition or

improvement of job-related skills.

Development – geared toward the individual’s acquisition and expansion of

his/her skills in preparation for future job appointments.

Learning Principles

 Modeling – use of personal behaviour.

 Feedback – comments. Reinforcement –verbal encouragements .
 Massed vs. Distributed learning – training through long or short period of
time (massed) while series of short period of time (distributed)
 Goal-setting – learning through the explanation of training goals.
 Individual differences – account and accommodate the individual
differences of the trainees.
 Active practices and repetition – learning through the giving of frequent
opportunities to trainees.

Employee development – to match the individual’s development needs with the

needs of the organization.
Lesson 5: Compensation/Wages and Performance Evaluation

Compensation/Wages – all forms of pay given by employers to their employees.

Performance Evaluation – a process undertaken by the organization, usually done

once a year, designed to measure employee’s work performance.

Types of Compensation

 Direct Compensation – includes workers’ salaries, incentive pays, bonuses,

and commission
 Indirect Compensation – includes benefits given by employers other then
financial remunerations such as travel, educational and health benefits, and
others.
 Nonfinancial Compensation – includes recognition programs, being
assigned to do rewarding jobs, or enjoying management support, ideal
work environment, and convenient work hours.

Motivational Factor

Pay Equity – related to fairness; Equity Theory –motivation theory focusing on

employees’ response to the pay that they receive and the feeling that they
receive less or more than they desire.

Expectancy Theory – predicts that employees are motivated to wok well because
of the attractiveness of the rewards.

Bases for Compensation

 Piecework Basis – number of units produced.

 Hourly Basis – number of work hours rendered.
 Daily Basis – number of work days rendered.
 Weekly Basis – number of work weeks rendered.
 Monthly Basis – number of work months rendered.
Internal Factors – organization’s compensation policies, the importance of the
job, employees’ qualifications in meeting the job requirements, and employer’s
financial stability.

External Factors – local and global market conditions, labour supply,

area/regional wage rates, cost of living, collective bargaining agreements, and
national and international laws, among others.

Purposes of Performance Evaluation

 Administrative Purposes –may be used as basis for compensation

decisions, promotions, transfers, and terminations.
 Developmental Purposes – employees’ performance and their strengths
and weaknesses that may be used as basis for identifying their training and
development needs.

Performance Appraisal Methods

 Trait Methods – find out if the employee possesses important work

characteristics such as conscientiousness, creativity, emotional stability,
and others.
 Graphic Rating Scales – each characteristic to be evaluated is represented
by a scale on which the evaluator or rater indicates the degree to which an
employee possesses that characteristic.
 Forced-choice Methods – the rater choose from two statements purposely
designed to distinguish between positive or negative performance.
 Behaviorally Anchored Rating Scale (BARS) – five to ten vertical scales, one
for each important strategy for doing the job and numbered according to
its importance
 Behavior Observation Scale (BOS) – measures the frequency of observed
behaviour.

Lesson 6: Employee Relations

Employee Relations – the connection created among employees/workers.

Three types of Employees

 Engage – employees who work with passion and feel a deep connection
with their company.
 Not Engage – employees who are essentially “checked out”. 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.

Lesson 7: Employee Movements

Employee Movements – series of actions initiated by employee groups toward an

end or specific goal.

Unionism – the principle of combination for unity of purpose and action.

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 interests.

Why unionize

 Financial Needs – complains regarding salaries.

 Unfair management practices – unfair or biased managerial actions.
 Social and leadership concerns – satisfaction of their need for affiliation.

Steps in Union Organizing

1. Employee/union contact – all about data.

2. Initial organizational meeting – attract more supporters and select
potential leaders.
3. Formal of in-house organizing committee – identifications of
employees who are ready to act as leaders.
4. If a sufficient number of employees support the union movement,
the organizer requests for a representation election or certification
election – representation petition is filed the NLRC.
5. End of union organizing – the election was done.
CBA (Collective Bargaining Agreement) Process

 Prepare for negotiations – data to support bargaining proposals are

collected.
 Develop Strategies – management proposals are developed & limits of
concessions are determined.
 Conduct negotiations – consist of bargaining, analyzing proposals, or
boycotting the employer’s products.
 Formalize agreement – needs to familiarize the agreement.

Grievance Procedure – formal, authorized the union to represents its members in

processing complaint

Lesson 8: Reward System

Reward – gift, prize, or recompense for merit.

Monetary reward – refers to money or cash.

a. Pay/Salary – financial remuneration

b. Benefits – indirect compensation
c. Incentives – pay-for-performance philosophy
d. Executive pay – basic salary, bonuses, stock plans, benefits, and
perquisites.
e. Stock options – buy specific number of shares of the organization’s stock.

Non-monetary reward – refers to intrinsic rewards.

a. Award – trophies, medals, etc.

b. Praise – verbal appreciation