PRINCIPLES OF MANAGEMENT AND ORGANIZATION

First Year College – BSBA-MM 1-3D

Name : Clemente, Laurence Borres

Insert picture Grade & Section : BSBA-MM 1-3D
here! Teacher : Prof. Perry Solosa
Date : February 2023
Activity Title : Compilation of Activities

Chapter 1: Nature and Concept of Management

A. Essay. Answer the following questions.

1. "Management is the art of getting things done through people in formally organized
groups." Explain by defining management and its scope.

Management is the process of planning, organizing, staffing, directing, and

controlling resources to accomplish the main goal of the organization through the
effective use of human resources. And you can do that by making sure that all
jobs are properly done by employees. A good manager should be guiding the
employees through the process and helping them to properly utilize their skills
and capabilities to produce an optimum output, which is the main purpose of
management. It is also the job of the manager to motivate them in the best way
possible, so there will not be any conflict within their working environment, and
they will have enough motivation to keep working to achieve the organization’s
goal.

2. Explain the different types of management theories and why it is important in an

organization.

The first classification of management theories is the classical

management theory, wherein high-performing employees are rewarded through
 wages or bonuses in order to motivate them to improve their output and increase
their productivity. Behavioral management theory, on the other hand, is where
the central focus of management is on human behavior and the satisfaction of
the employees to keep them motivated. Finally, modern management theory
makes use of technological advancements to monitor employee performance.
Management theories are crucial in every organization to make sure that the
employees are well-motivated and doing their best on every task assigned to
them. It is important for a manager to make sure that these motivations are
enough for them to produce an optimum output and accomplish the goal of the
organization; otherwise, it is impossible without the human resources.

3. As a manager, why do the functions, roles, and skills of a manager an essential part
of the organization's success. Explain.

Without the function of managers, it is impossible to pave a way for the

path of the organization. An organization without a manager to plan, organize,
staff, lead, and control resources is an organization without direction. It is also
important that managers have skills that will enable them to effectively use all the
resources and achieve the main goal of the organization. Lastly, managers have
a lot of roles inside the organization that they must fulfill, which include
interpersonal, informational, and decisional roles. To conclude, the functions,
roles, and skills of a manager are an essential part of the organization's success
since an organization cannot survive without them.

B. Case Solutions: Nature and Concept of Management. Answer the following

case discussion questions.

1. What makes George David such a highly regarded manager?

George David is respected for being good at management, and the fact
that his employees respect him as a manager just means that he has the quality
of a good manager. I believe that he is a highly regarded manager because he
genuinely cares about his employees. He tries to help them whenever they need
 help, and he wants to make sure that they have a trusting relationship that will
function over the long term. He even made a scholarship program for the
development of his employees, which is the UTC’s Worldwide Employee
Scholarship Program. Moreover, he also cares for ethical values, which include
the safety of both employees and the environment. Most importantly, he knows
when the organization has a problem and makes sure to solve it.

2. How does David get things done through people?

David makes sure that his employees are well-motivated to get things
done. For instance, David created a scholarship program for his employees in
order to give them opportunities to improve themselves, which also benefits the
organization since it generates a better workforce that stays longer. With this
motivation, employees are able to produce their best output and do their tasks
efficiently. He also built a management team with the aim of building trusting
relationships inside the organization, which helped them work smoothly and
effectively. With the said motivations, David was able to get things done and
accomplish the goal of his organization.

3. What evidence can you see of David's planning and strategizing, organizing,
controlling, leading, and developing?

One example is when David encountered a problem with the poor

performance of the Otis elevator. He tried to identify the problem with his product
with the help of a Japanese engineer. He, together with Yuzuru Ito, figured out
the problem, which is about the quality of his product. Therefore, he planned,
strategized, organized, led, and controlled his resources in order to improve the
quality of UTC’s product. He eventually developed a solution, which is to lower
the cost of the product and focus on its quality.
4. Which managerial competencies does David seem to possess? Does he seem to
lack any?

The text shows how good David is as a manager and how his skills and
competencies play an important role in accomplishing the goal of his
organization. His skills include good communication, good organization, team
building, leadership, domain knowledge, and the ability to deal with changes
effectively. He also possesses the core functions of management, including
planning, organizing, staffing, directing, and controlling. Even though the given
reading text about him is short, his skills and competencies as a manager are still
evident in the success of the United Technologies Corporation.
 Chapter 2: The Firm and Its Environment

A. Essay. Answer the following questions.

1. Analyze the various environmental forces affecting the firm in the Philippines and
summarize these using PESTEL and SWOT Analyses.

PESTEL Analysis:

✓ Political: The Philippines has a democratic government with a president as

the head of state and government. The politics in the Philippines are generally
stable, but there have been instances of civil unrest and protests because of
some policies and laws.
✓ Economic: Even though the Philippines has a developing economy with a
growing middle class, poverty and income inequality remain significant
issues.
✓ Sociocultural: The Philippines is divided into multiple regions that have
different cultures and religions, resulting in a diverse population. It should also
keep in mind that family and community values are strong in this country.
✓ Technological: The Philippines has a large population that already uses
technological inventions, such as mobile phones and internet access.
However, there is still room for improvement in areas such as infrastructure
and research and development.
✓ Environmental: The Philippines is prone to natural disasters such as
typhoons, earthquakes, and volcanic eruptions. There are also environmental
concerns in this country, such as pollution, deforestation, and overfishing.
✓ Legal: The Philippines has a legal system based on common law. There are
laws and regulations in place to protect the environment, labor rights, and
consumer rights, but enforcement is often weak.
 SWOT Analysis:

✓ Strengths: Strong culture and values, diverse population, growing middle

class, high technological adoption
✓ Weaknesses: High poverty and income inequality, weak enforcement of laws
and regulations, natural disasters
✓ Opportunities: Growing focus on environmental sustainability, potential for
improvement in infrastructure and research and development
✓ Threats: Natural disasters and other environmental concerns, such as
pollution, deforestation, overfishing

2. How will you describe the business environment of the firms here in the Philippines
compared to the international business environment firms?

The degree of corruption and the legal system are two examples of
differences in the business environments of Philippine and foreign firms in terms
of the political and legal frameworks in which the firms operate. Relative to other
countries, the Philippines has a weak legal system and a high level of corruption,
which makes doing business challenging. On the positive side, in comparison to
other countries, the Philippines offers a lower cost of labor and a larger consumer
market, which might be advantageous for individuals planning to start a business.

3. What is the role of business in relation to the economy?

Businesses are the engines of the economy. Without them, countries

would be primitive and not as prosperous as they currently are. Businesses
produce jobs all over the world, which become the source of income for millions
of people. They also manufacture goods and services that are purchased with
money earned through employment. To sum up, it is through businesses that
money is transferred from the market to people and vice versa, and this cycle
greatly contributes to the overall growth of the economy.
4. Discuss the different phases of economic development in the Philippines.

The first phase of economic development in the Philippines is during the pre-
colonial period, when the economy is focused on farming and barter trade. And this
agricultural economy continued during the Spanish colonial period, when the country
became a source of raw materials for the Spanish empire. On the other hand, there
was a significant change in the country’s economy in the American colonial period
since Americans invested in the infrastructure in the Philippines, which made the
country shift its focus from agriculture toward manufacturing and industry. In
addition, the country experienced rapid growth due to the expansion of various
industries during the post-World War II and post-Marcos periods. In the present day,
the Philippines is currently experiencing economic growth but is still facing
challenges in terms of various aspects, such as poverty, inequality, and
infrastructure development.

B. Case Study Questions

1. What are the barriers to entry into the pharmaceutical industry? To what extent do
you think these entry barriers protect established pharmaceutical companies from new
competitors?

It is challenging to enter the pharmaceutical industry since the cost and

risk of developing a new drug and bringing it to market are too high because of
some regulations and requirements. Another reason is the existence of other
prescription drugs and their patents, wherein you cannot produce a drug that is
identical to other drugs, which will lead the business owners of pharmaceutical
companies to invest a large amount of money in their research and development.
Furthermore, the aforementioned entry barriers protect established
pharmaceutical companies from new competitors in terms of profitability, as they
will profit more if they have fewer competitors.

2. The pharmaceutical industry has long been one of the most profitable in the United
States. Why do you think this is the case?
 Prescription drugs are in demand in the United States because of its
demographics. The country has a large population of elderly people who need
these drugs most. This is due to the fact that as people get older, they need more
prescription drugs to treat their diseases and extend their lives.

3. What forces in the general environment influence the nature of competition in the task
environment facing pharmaceutical firms?

Based on the given text, the forces in the general environment that
influence the nature of competition in the task environment facing pharmaceutical
firms are sociocultural and technological factors: A sociocultural factor because
of population changes in society, as the demand for prescription drugs rises as
the number of elderly people rises, and a technological factor because business
owners must invest more in technology as well as research and development in
order to develop new prescription drugs or improve existing ones in order to
compete successfully with other businesses.

4. Are there reasons for believing that the profitability of the industry might come under
threat over the next decade? What do you think managers in the industry should do to
counter this threat?

The profitability of the industry will also, in my opinion, be threatened in the

future. There are an increasing number of businesses because of the large and
expanding market, which makes the business environment more competitive.
Additionally, the threat to a business profit increases with the number of
competitors it has, which could result in low annual sales. And I think the
managers should spend money on marketing and advertising to counter this
threat. They must take action to attract customers and persuade them to
patronize their business rather than one of their competitors. Simply explained,
companies need to employ marketing principles with a stronger focus on the
needs and wants of their customers.
 Chapter 3: Principles of Management Functions
A. Case Problem

Discuss in your own words the different functions of management and as a manager,
how these functions of management can be applied in the businesses and
organizations during a pandemic crisis of Covid-19.

The function of management is to get things done through people in order

to accomplish the main goal of the organization. The five primary functions of
management are planning, organizing, staffing, directing, and controlling.
Planning is a future-oriented function that aims to make the best business
decisions by predicting the future and attempting to control the events for the
success of the organization. While organizing is the function of identifying the
tasks to be done to achieve the organizational goal and assigning them to the
right personnel. Staffing, on the other hand, is the function of recruiting the right
people for the job based on their competencies in order to create a suitable
workforce. Moreover, directing is the function of guiding, instructing, overseeing,
and doing all activities that encourage personnel to do their jobs effectively and
efficiently. Finally, controlling is the function of making sure that the ongoing
activities are performing according to plan, and it is done by establishing
standards for performance and applying them to the actual performance.

These management functions can be applied in the businesses and

organizations during a pandemic crisis of COVID-19. Healthcare organizations
and businesses, including the government, should plan their actions by predicting
the number of COVID-19 cases in the future and what they should do to put an
end to it. After doing so, they can take action by organizing and staffing. They
need to identify what actions to take and assign each task to the right people,
such as healthcare professionals. On the other hand, the head of the said
healthcare project should undergo directing to guide, instruct, and oversee the
performance of the personnel to make sure that they are creating a quality
output. He should also control the overall flow of the project based on the
established standard performance of the personnel to make sure that everything
is going according to plan. With the said management functions, the government
and other organizations and businesses are able to accomplish their goal of
ending the COVID-19 pandemic through the effective use of people.
 Chapter 4: Concept of Planning Function
A. Essay. Answer the following questions.

1. What is the nature of planning and why it is important in the success of any

business and organization?

Planning is a goal-oriented function of the organization. It is by setting the

goals of any organization and developing strategies and plans to achieve those
organizational goals. Planning is important to the success of any business or
organization because it is the source of good business decisions, such as the
allocation of resources where productivity can be maximized and resources are
not wasted through effective planning. It can also be used in risk and uncertainty
management by identifying risk factors in the environment and developing
contingency plans for each of them. Planning is used in all fields, not just
business, because it is critical to the success of any activity.

2. Describe the different types of plans and explain how it can be used to

accomplished results in any organization?

There are four different types of plans, which include the operational,
strategic, tactical, and contingency plans. Operational plans involve the daily
routine of the organization, which can be used to accomplish results by creating
policies, regulations, and procedures for achieving organizational goals. Strategic
plans, on the other hand, involve long-term decisions within the organization,
which is helpful since it is the foundation of the organization. The tactical plans
support the strategic planning by breaking it down into smaller and more
actionable components. Lastly, contingency plans are the backup plans in case
there is a sudden change in the process of achieving the goal, which is crucial
since it keeps the process going despite something unexpected happening.
3. What are the different planning techniques and tools and how can a manager

make effective planning?

Another planning technique and tool that we can use is brainstorming. It is

the technique that is used to generate ideas through the discussion of a group of
people. A manager can create a group of employees who will take part in the
brainstorming process, and he could ask them one by one about their ideas on
how to address their challenge or problem. Then he could choose the best idea
out of all, and they could further discuss how to improve and implement it. With
this technique, people can generate as many ideas as they can, which is part of
an effective planning process.

4. Formulate an effective plan for a specific business endeavor during this pandemic
crisis of the COVID-19.

One of the problems caused by the COVID-19 pandemic is the temporary

closure of physical stores for businesses due to the restrictions on social
interactions. In order to address this problem, we need to create an effective
plan. Since people cannot go out of their houses as much as they want because
of health guidelines or protocols, businesses can make use of online shopping to
sell their goods despite the pandemic. With that, customers can continue to
patronize their products by purchasing them online and receiving their deliveries
as a result. Therefore, both the sellers and buyers benefit from this type of plan,
which makes it effective.
B. Case Discussion Questions

1. Why did the strategic plans adopted by companies like Level 3, Global Crossing,

and 360 Networks fail?

The strategic plans of these companies failed because they did not conduct
careful research about the fiber optic cable. The managers of these companies
believed the claim that there is over 1,000 percent in data traffic per year, so they
invested a lot of money to build a massive fiber optic network to create a profit
with this opportunity. Unfortunately, their businesses failed due to the wrong
information and ineffective planning.

2. The managers who ran these companies were smart, successful individuals, as were
many of the investors who put money into these businesses. How could so many smart
people have been so wrong?

Even though the managers of these companies are skilled and

professionals in this field, they could be blinded by money, which affected their
decision-making process. The fact that they could profit a large amount from the
possible business opportunity led them to believe what they wanted to believe
without double-checking the information they received. It is also possible that
they did not double check the claim of the chief scientist because that person
seems credible because of his successful name. Whatever the reason, a
researcher warned them, but they ignored him, which led to the bankruptcy of
their respective companies.

3. What specific decision-making biases do you think were at work in this industry
during the late 1990s and early 2000s?

Based on the given text, there is a decision-making bias at work in this

industry, which is the bias toward what people want to believe. The owner of the
 largest network of fiber optic cable in the world claimed an increase in the growth
rate of data traffic per year. Because of the biases of the business people during
this time, they believed his claim and attempted to take advantage of this
"opportunity" by building fiber networks. However, a researcher warned them that
the claim was not correct, but they ignored him, so they failed in the end.

4. What could the managers running these companies have done differently that might
have led to a different outcome?

The managers of these companies could have a different outcome if they

double-checked the claim about the increase in growth rate of data traffic per
year before building fiber networks. They should have done their own
comprehensive research on it before planning and making a decision. In addition,
they should have opened their minds when a researcher released a contradictory
study about the said claim since it might be true. They should not have ignored it;
instead, they should have conducted an analysis and evaluation of both claims,
weighing the evidence to determine which claim was correct. Then, after knowing
the true claim, they can now generate ideas about their business and plan on
how to implement those ideas for the success of the business. By doing so, their
businesses could be more successful.\
 Chapter 5: Concept of Organizing Function
A. Essay. Answer the following questions.

1. What is organizing and explain the nature of organization in the present business
performance?

Organizing is a management function that involves work division, work

assignment, and authority utilization. It is the job of a manager to organize his
team and resources according to his plan. The nature of organization in the
present business environment is focused on managers controlling productivity
and creating quality outputs because of the expanding market and more
competitive business environment. It is important for managers to meet the
determined objectives in time through effective grouping of activities and
assignment of jobs based on the skills, abilities, and experience of their
subordinates.

2. What are the different types of organization structures and what is the significance of
these structures for effective business management?

There are three different types of organizational structure, which include

the functional structure, divisional structure, and matrix management. Functional
structure is the most common organizational structure where employees are
grouped based on their specialized skills or their common set of tasks and roles.
Divisional structure, on the other hand, groups employees into divisions or
departments that have different functions and necessary resources. Lastly,
matrix management is a structure where employees report to two or more
supervisors or heads rather than one. These organizational structures are crucial
for effective business management because they are the key to accomplishing all
the organization’s tasks and activities efficiently, effectively, and successfully.
3. What are the different elements of delegation and how it can be used for the success
of the organization?

The elements of delegation are responsibility, authority, and accountability.

It is the responsibility of the subordinate to complete his tasks and duties that are
assigned to him by top management. Authority, on the other hand, is the power
of making and choosing decisions, which is done by those in high positions but
can also be assigned to a subordinate. Finally, accountability refers to the
subordinate's responsibility to his superior for his work performance. These
delegation elements can be used for the success of the organization by making
the job of managers easier by reducing their workload and focusing on their other
managerial activities, which leads to more productivity inside the organization. It
also provides subordinates with opportunities for growth, development, and
motivation because he is given the authority to make decisions on his own.

4. What is the difference between formal and informal organization?

Formal and informal organizations are different in many ways. A formal

organization focuses on work performance and has established rules and
regulations for compliance, while an informal organization focuses on
interpersonal relationships and makes decisions based on its norms, values, and
beliefs. In addition, the authority in a formal organization is based on the
hierarchy, whereas all members of an informal organization are equal. Finally,
the nature of formal organization is to accomplish their organizational goal, while
the nature of informal organization is to satisfy their social and psychological
needs.
B. Case Discussion Questions

1. Why did Dow Chemical first adopt a matrix structure? What benefits did it hope to
derive from this structure?

Based on the reading text, the matrix structure is created to make Dow
Chemical’s operation responsive to both local market needs and corporate
objectives. I believe the CEO of Dow hoped to make the best decisions for the
organization from this structure since it has three interacting elements, which are
functions, businesses, and geography. And each interacting element has a head
that is accountable for making decisions. Therefore, if there are a lot of qualified
people taking part in the decision-making process, it is more likely that it will lead
to the best decisions for the success of the organization.

2. What problems emerged with this structure? How did Dow try to deal with them? In
retrospect, do you think those solutions were effective?

Since there are three interacting elements in this structure, most managers
report to more than one boss. Because of this system, conflict and confusion
arise, which lead to overlapping responsibilities and a lack of accountability. Dow
attempted to address this issue by making the structure more flexible by
assigning priorities to each business sector and delegating primary authority
based on circumstances. In my opinion, the improved matrix structure was still
confusing, which might affect the operation inside the organization. And knowing
that Dow eventually abandoned the structure means that it is not effective.
3. Why did Dow change its structure again in the mid-1990s? What was Dow trying to
achieve this time? Do you think the current structure makes sense given the industry in
which Dow operates and the strategy of the firm? Why?

In 1995, Dow changed its structure again because they realized it was
complex and costly. They also found a better structure that involves global
product divisions. I believe that they made the right decision to use a global
divisional structure knowing that they had refocused on commodity chemicals,
which is advantageous for them since they produce low-cost products.
 Chapter 6: Concept of Staffing Function
A. Essay. Answer the following questions.

1. What is the nature of staffing and why it is important in an organization?

Staffing is a management function that involves the recruitment, selection,

and development of employees. It is also a pervasive and continuous function
since employees keep leaving and joining, and managers appoint them in
different positions based on different levels and functions. Staffing is part of
human resources management and the personnel department. Lastly, staffing
deals with the most important resources of an organization, which are people,
since they are the ones who convert other raw resources into output.

2. What are the different steps in the recruitment and selection process?

Recruitment is the first step of the staffing function, which is done by

finding and attracting potential employees to apply for a position in the
organization. Its processes include recruitment planning, strategy development,
searching, screening, evaluation, and control. Selection, on the other hand, is a
staffing function that is done after the recruitment processes. It aims to select the
best candidates for specific jobs. The selection processes include the preliminary
interview, application blank, written test, employment interview, medical
examination, application letter, and others.

3. What are the different ways or methods of training?

The training method is focused on the development of the employees by

improving their knowledge and skills necessary for the organization. It is done for
the employees to do their jobs effectively and efficiently. There are two ways or
methods of training, which are on-the-job training, which is done while employees
 are working at their workplace, and off-the-job training, which is done away from
the employee’s work environment.

4. What is employee remuneration and discuss its importance in an organization?

Employee remuneration is the money paid to employees as a reward or

compensation for their efforts. It is often mistaken with salary, but they are
different since remuneration is a broader term and depends on the employee's
performance and output. Employee remuneration is important in an organization
since it is an effective way of motivating employees to do their jobs to the best of
their abilities. It is due to the fact that money is important in our lives as it allows
us to survive and improve our way of living. Therefore, remuneration motivates
the employees, which positively affects their productivity and performance.

B. Case Discussion Questions

1. Discuss McDonald's current situation from a human resource planning perspective.

Based on the provided text, McDonald's developed various campaigns to

combat people's negative perceptions of their employment image. That includes
their “My First” and “Family Contract” campaigns. I believe that these campaigns
are successful as they have had a positive effect on McDonald's employment. In
the current time, there are a lot of people who desire to apply for a job there,
which indicates that their human resources planning and strategy are effective.

2. Is McDonald's taking the best approach to improve its employer brand? Why or why
not? If you were in charge of developing the McDonald's employer brand, what would
you do differently?

I believe McDonald's strategy to improve its employer brand is effective

because it is successful in changing people's negative impressions and
perceptions of their employment. Therefore, a lot of people desire to work there
 nowadays, which means that their employer brand has improved. If I were to
develop the McDonald’s employer brand, I would create a campaign showing the
satisfied and happy employers of the restaurant as if they enjoy working there. If
the customers see them while buying their foods or watch them in an
advertisement, it would create a good image and convince potential employees
to apply.

3. Would the different recruiting tactics help McDonald's attract more applicants? Why
or why not" If so, what tactics might be effective?

I believe that McDonald’s made the right decision of using their tactics to attract
more applicants. Instead of using other tactics, they created campaigns to prove
to people that the McJob perceptions are just myths, and they should not believe
them. Showing people that former McDonald's employees eventually became
successful is a good strategy. They clearly expressed their message that they
can start achieving their dreams by working at McDonald's, which is a success.
 Chapter 7: Concept of Directing/Leading Function
A. Essay. Answer the following questions.

1. What is the nature of directing or leading and why it is important in an organization?

Directing or leading is a management function that deals with the

assignment of roles to personnel in the organization and making sure that they
are able to perform their tasks effectively in order to achieve the organizational
objectives. It is also a function that creates a positive environment and day-to-
day interaction between management and staff. It aims to motivate,
communicate, and encourage employees to increase their efficiency and
productivity in the workplace.

2. What is the difference between leading and managing? Explain

Leading is a more specific term that is used to describe the function of

guiding, instructing, overseeing, and doing all activities that encourage personnel
to do their jobs effectively and efficiently. Leading is just one of the five functions
of management. Managing, on the other hand, is a broader term that involves the
process of planning, organizing, staffing, directing, and controlling resources to
accomplish the main goal of the organization through the effective use of human
resources.

3. What are the different theories of motivation?

There are two general types of motivational theories, which are content
theories and process theories. Content theories focus on the factors that
motivate individuals, including their wants and needs. These theories include
Maslow’s Hierarchy of Need, Herzbeg's Motivation Hygiene Theory, Mcclenad’s
Need Theory, and Alderfer’s ERG Theory. On the other hand, process theories
focus on issues relating to how these theories and processes work and sustain
 themselves over time. These theories include Vroom's Expectancy Theory,
Adam's Equity Theory, and Reinforcement Theory.

4. What are the different styles of leadership and how it can affect the organization?

There are different styles of leadership, which include democratic,

autocratic, laissez-faire, strategic, transformational, transactional, coach-style,
and bureaucratic leadership. Different styles of leadership can give different
levels of motivation to employees, which is what makes them crucial since they
can affect the productivity of the entire organization.

5. What do you think will happen if communication in directing people within the
organization is not properly utilized?

Communication between management and staff is crucial for the success

of an organization. If it is not properly utilized, it is possible that the employees
would not be able to report progress and issues about their tasks, resulting in
bad outcomes. It would also result in a decrease in the motivation of the
employees since they would not know if they were doing a good job or if they
were already making a mistake without proper communication with the
management. Thus, proper communication is a must inside the organization
since it is the key to good teamwork.
B. Case Discussion Questions

1. How would you characterize the leadership style of A.G. Lafley-people-oriented or

task-oriented?

I believe that the leadership style of A.G. Lafley is people-oriented. It is

because he prioritizes the working environment of his employees before anything
else in order to achieve the output that he desires from them. For instance, he
made sure to break the barriers in his employee’s working environment by
encouraging people from different divisions to communicate and share their
ideas with each other. He even created a reward system for employees who
shared their ideas and created a workplace where people could easily connect
and communicate.

2. What leadership competencies does A.G. Lafley have? What competencies often
associated with strong leaders does he seem to lack?

Lafley was an open-minded, good listener, and effective leader. He listens

and is open to the suggestions and ideas of others and considers each of them
before making a final decision for the organization. He also makes effective
strategies for their products, such as prioritizing selling their top brands instead of
making new products that are not generating significant sales. If he lacks
competency as a leader, that would be the quality of a good speaker. It is
significant for a leader to have good communication skills, but it still did not stop
Lafley from achieving their organizational goal even without them.

3. How did Lafley go about shifting the strategy and culture of P&G? Would you
characterize Lafley as a transformational leader or a transactional leader?

When Lafley learned about the decreasing stock price of P&G, he decided
to change the organization's strategy and culture. Knowing that their top brands
were losing market share and the organization was having a hard time
 introducing new products to the market, he decided to shift the organization’s
focus to selling more of their existing products instead of creating new ones.
Their employees’ morale was also low at that time, so he created a work
environment where employees from different divisions were able to communicate
and share their ideas. I believe that Lafley is both a transformational and a
transactional leader, but he is more of the former. It is because he causes
changes or transformations in the organization in a positive way.

4. What does the story of A.G. Lafley tell you about the attributes and style of effective
leaders?

Through the story of Lafley's leadership, I learned one important attribute

or style of effective leadership, which is open-mindedness. Just like Lafley, a
good leader should know how to listen to the ideas of his members and the
opinions of their customers. In that way, they can gather multiple ideas, choose
the best one, and also improve what needs to be improved for the success of an
organization, just like in the inspiring success story of P&G.
 Chapter 8: Concept of Controlling Function
A. Essay. Answer the following questions.

1. What is the nature of controlling and how do managers exercise control?

Controlling is a management function that is done to ensure that all

activities inside the organization follow the set standards, done correctly, and are
making progress toward the organization’s goals and objectives. It is a function
that ensures that other management functions, such as planning, organizing,
staffing, and leading, are followed correctly. Managers exercise control by
identifying mistakes in all tasks and providing preventive measures so that
employees have a lower chance of committing errors. It is also their job to correct
all mistakes if there are any, create a standard of performance, and make sure
that progress is made toward the organizational goals.

2. What is the relationship between planning and controlling?

Planning originates controlling since plans are made to pursue the goals of
the organization, and control is needed in order to do that. In addition, controlling
sustains planning and provides information for planning by guiding the spots
where planning is needed and collecting information about the actual
performance of employees, which can be used for planning. Moreover, planning
and controlling are forward-looking since they are concerned with the attempt to
control future outcomes. Overall, planning and controlling are interrelated.

3. What is the difference between controlling methods and techniques?

There are four types of controlling methods and techniques. It includes

financial control that focuses on monetary assets, behavioral control that focuses
on the employee’s actions, and operational control that focuses on business
processes.
B. Case Discussion Questions

1. What kind of control systems does Lincoln Electric rely on to generate high employee
productivity?

Lincoln Electric uses control systems and organizational culture that

involve the workers’ salaries based on their productivity. It means that the more
pieces a worker produces, the higher the salary he receives. They also have a
culture where everyone in the company, including the managers and other
employees, is treated equally, which leads to motivation and high productivity.

2. Can you think of any possible unintended consequences of an incentive pay system
based on piece work? How does Lincoln guard against these unintended
consequences?

Because of Lincoln’s incentive pay system, their workers are well-

motivated to work harder and produce more pieces in order to receive higher
salaries. However, the system might have an unintended consequence for the
quality of their output. It is because the workers tend to focus more on the
quantity of their produced pieces than their quality since their salary is based on
the number of pieces. But it is stated in the text that quality inspection is done
before the calculation of their piece work, so the problem is solved.

3. Do Lincoln's control systems match the strategy of the enterprise? How?

The control systems at Lincoln also matches their strategy. Lincoln’s

strategy is to offer the products to the market at a low price, and it is only
possible because of their employees' productivity. As stated, Lincoln Electric
uses control systems that determine the workers’ salaries based on their
productivity, which is why they are well motivated to produce as many pieces as
they can. And this system made them a leading company in the global market for
welding equipment.