MANAGEMENT Middle Managers

Management is getting work done through

- they are responsible for setting objectives
others. consistent with top management’s goals
Management is…
- ex. you are a manager then you directly
EFFICIENCY is getting work done with a report to the COO
minimum effort, expense, or waste.
- they directly work with the top managers
EFFECTIVENESS is accomplishing tasks that
help fulfill organizational objectives such as First-Line Managers
customer service satisfaction.
- they train and supervise the performance of
non-managerial employees who are directly
Management Functions: responsible for producing the company’s
• Planning products or services
• Leading
- they work with the staff
• Organizing
- they know the ins and outs of the company
• Controlling
Team Leaders
Kinds of Managers:
- they are responsible for facilitating team
Top Managers: activities toward goal accomplishment,
- CEO engaging and flourishing internal and
- COO external relationship among members
- CFO - they set up meetings or group discussions
- CIO - focused on building harmonious
- Vice President relationships with the team
- Corporate Head - its more on small groups; micro way of
- Chairman, Presidents, etc managing a team
Middle Managers:
- General Managers What companies look for in a manager?
- Plant Managers • Technical Skills
- Regional/Divisional Managers • Human Skills
First-Line Managers: • Conceptual Skills
- Office Manager • Motivation to Manage
- Shift Supervisor
- Department Manager ORIGINS OF MANAGEMENT
Team Leaders:
- Team Leader EVOLUTION OF MANAGEMENT
- Team Contact (Chain of Wonders)
- Group Facilitator I. Scientific Management
A. Frederick Taylor
Top Managers - Father of Scientific Management
- they are executives responsible for the - He analyzed/observed the productivity
overall direction of the organization of men and machines
- ex. you man the entire operations of the - Production efficiency in a shop could be
bank regardless of its location greatly enhanced by great observation
of an observer…
 - Workers/employees should contribute IV. Human Relations Management
to the productivity of a company A. Mary Parker Follet
- Productivity Metrics: Factories, - Constructive conflict and coordination
Manufacturing firms - active social worker in the field on
B. Frank Gilbreth management process
- Motion Studies - studied constructive conflict
- early advocate of scientific - “management is the art of getting
management things done through people”
- pioneer of time and motion study B. Elton Mayo
(observing a specific task in terms of - Hawthorne Studies
time it is completed, motions involved - Contribution: relational factors are more
in completing that task) important than environmental factors
- to analyze any insignificant/irrelevant (or physical things)
motions that can be eliminated to make - there are sufficient number of breaks for
a process faster employees in the companies (1 hr lunch
- Goal: Production efficiency / Efficiency break, two 15 min breaks — one in the
at Work morning and one in the afternoon)
C. Lillian Gilbreth C. Chester Barnard
- mother of the scientific management - Cooperations and Acceptance
- focused on the manufacturing process Authority
- same as Frank - He wrote the book “Functions of the
- reduction of no. of motions in a task, Executive” — presents the theory or
worker satisfaction organization and management
D. Henry Gantt - focused on organizational studies
- Charts (Gantt Chart) - contributed the channels of
- A chart that illustrates a project communication
schedule - Contribution: Acceptance Theory of
- he introduced the Task and Bonus Authority (your employees should
system accept that u have the authority to lead
II. Bureaucratic Management them, give them orders, and comply — if
A. Max Weeber not, you’re not efficiently managing
- Father of Bureaucracy them)
- system of power is based on discipline
- Administrative, hierarchy, division of O-I-S-C MANAGEMENT
work, etc. Operations, Information, Systems, and Contingency
III. Administrative Management
A. Henri Fayol I. Operations Management
- developed the functions of - involves managing daily production of
management goods and services
- Fayolism Management Theory (involves - uses quantitative or mathematical
14 principles of management and 5 approaches to increase productivity
basic steps to ensure efficiency and - to improve quality and reduce costly
productive management) inventories
- Planning, Organizing, Commanding, - the concept of having interchangeable parts
Coordinating, Controlling of certain products started operations
- 40,000 muskets were ordered and delivered the sales of the customers (to know which
on time product is more salable at a particular
period)
Eli Whitney:
“If gun parts were made accurately enough, Cycle of Information Management:
these could be made standardized A. Acquisition of Information
interchangeable parts” - pertains to the collection part; information
is acquired
ONE BIG PROBLEM: Too Much Inventories B. Custodianship and Distribution
- was totally burned down - as a business, how will u act on it
- had to keep production up and coming - get the products from the warehouse,
“We are responsible for just-in-time inventories” check it, pack it, and send to the customer
C. Disposition through Archiving or Deletion
Gaspard Monge: - once the order has been delivered, lazada
“I drew the map of town of Beaune, France” will still keep the information for record
“I created Descriptive geometry!” purposes
“That’s 3-Dimensional! Thanks to me, you now - some companies will archive the
have CAD and CAM” information after 2-5 years or some would
completely delete it and no longer retain
Gaspard Monge contributed to operations your information
management by making precise three-
dimensional drawings permitting Importance/Uses of Information Management
manufacturers to make standardized, • Tracking Progress and Inventories
interchangeable parts without first examining a • Creating reports, such as financial reports,
prototype which was Eli Whitney’s obstacle. sales performance, employee performance
Monge ushered in the modern era of CAD and attrition rate, etc. (Planning and
(computer-aided design) and CAM (computer- Organizing)
aided manufacturing) enabling parts to be
made from design drawings alone. Types of Information Management Systems
1. Transaction Processing System (TPS)
II. Information Management - aka “real-time processing”
- takes place the moment you start online - a system to capture and process the
shopping detailed information necessary to update
- application of management techniques to data on the fundamental operations of an
collect, communicate, store information organization
within and outside the organization for - an information processing system for
quicker and better decisions business transactions involving the
- collection = order is received collection, modification, and retrieval of all
- communication = order being transmitted to transaction data (per transaction basis)
another system that receives all information - related to routine activities
regarding the purchase/data (when you click - initial information as a customer that you
purchase then your order is transmitted by provide to the business; when you input
the system to Lazada) your order and the other party receives it
- storing = the business will keep the - Ex. the order you give the to the cashier at
information for reporting purposes; monitor McDonalds
 - Examples: - DSS: Purpose
• Sales Order Entry • helps companies to identify and solve
• Online Reservations problems, and make decisions
• Payroll and Employee Record
• Manufacturing and Shipping Details III. Systems Management
- example of shipping: LBC or any other - Set of interrelated elements or parts that
carrier companies function as a whole.
2. Management Information System (MIS) - SUBSYSTEM — smaller systems
- a computerized database of financial - The presence of a system enables a business
information organized and programmed organization to streamline its functions and
in such a way that it produces regular processes
reports on operations for every level of - Synergy = the product of the whole is
management in a company greater than the sum of its parts
- helps in strategic planning, management - Refers to an enterprise-wide administration
control, operation control and transaction of distributed systems including computer
processing (middle management) systems
- using the reports would help the - used to store information (all the data)
managers determine what the flaws, - Examples:
strengths, weaknesses are that you have to ‣ Security Management (Data Security)
address — then come up with strategic ‣ Storage Management
plans ‣ Hardware Inventory (helps you manage/
- Examples: monitor/track your physical assets,
• Sales Management Report equipments)
• Marketing Management Report ‣ Software Inventory and installation
• Financial Report ‣ Capacity Monitoring
3. Decision Support System (DSS) ‣ Network Capacity and Utilization
- Computer-based application that collects, Monitoring
organizes, and analyzes data to help ‣ -Environmental Management
management in sound decisions making, ‣ -Accounting Management
operations and planning - There are different functions, called the
- helps in making decisions that are unusual subsystems, that make up the entire
/ doesn’t happen on a daily basis company
- DSS: Analyzed data - managing control over the systems in an IT
• projected revenue and sales for the environment
upcoming months; - optimizes maintenance and increases
- projected involves analysis and a security (of information & details)
decision to be made
• financial increase and loss IV. Contingency Management
- entails decision making on what to - ensure business continuity
do with the loss - emergency or disruption preparedness
• inventory projections - identify dangers and vulnerabilities (do
- forecasting quality control)
- DSS involves the ‘what ifs’ scenarios — - devise measures to prevent accidents and
matters than managers need to scrutinize limit their impact
to come up with business decisions
- mitigate business risk and minimize - choosing a goal and developing a method
potential losses or strategy to achieve that goal
- Examples:
‣ Business Continuity Plan (BCP) Benefits and Pitfalls of Planning
- having business continue operations ‣ BENEFITS:
despite emergencies • intensified effort
- absent employees • persistence

‣ Disaster Recovery Plan (DRP) • direction

- focused on natural calamities • creation of task strategies
- what to do as a business after ‣ PITFALLS:
‣ Information System Contingency • impedes change or adaptation
- sometimes you’re too focused
- when it is not working, maybe its time to
change
• false sense of certainty

• detachment of planners
- more on the corporate setting
- leaders and planners need to work
together to achieve the goal

RATIONAL DECISION MAKING

PLANNING Decision Making:
How to make a plan that works? - process of choosing a solution from
1. Setting of Goals
available alternatives
• Specific
Rational Decision Making:
• Measurable - a systematic approach in which managers
- you can track your progress
define problems, evaluate alternatives, and
- if the activities planned are actually
choose optimal solutions that provide
working or not
maximum benefits to the organization
• Achievable/Attainable
• Relevant/Realistic
Reasons for Having a Less Profitable Branch:
- is it possible
- competition
• Timely/Time bound - quality and price
- time started, time finished
- location
- stages
2. Developing Commitment
Rational Decision Making Steps:
3. Developing Effective Action Plans
1. Define the Problem
• who’s in charge - Problem — a gap between a desired state
• how will it be accomplished
and existing state
• when…
2. Identify Decision Criteria
• what… - Decision Criteria — the standards used to
4. Tracking Progress
guide judgments and decisions
5. Maintaining Flexibility
- ex. visibility, accessibility, physical
attributions, feasibility
Planning
3. Weigh the Criteria
 - ex. comparison (use data), see what has - organizes work and workers into separate
more impact on the business, set priorities units responsible for producing products
4. Generate Alternative Courses of Action or services
- set possible actions that will serve as - divided into products or services
backup plans Advantages:
5. Evaluate Each Alternative • easier assessment of work-unit performance
- pros and cons • faster decision making
6. Compute the optimal decision • managers are experts in their industry
Disadvantages:
ORGANIZING • duplication of work
Designing Organizational Structure • coordination across departments are minimal

Departmentalization
- subdividing work and workers into separate
organizational units responsible for
completing particular tasks

5 Methods of Departmentalization:
3. Customer Departmentalization
1. Functional Departmentalization
- organizes work and workers into separate
- organizes work and workers into separate
units responsible for particular kinds of
units responsible for particular business
customers
functions or areas of expertise
- broad term; there’s marketing, sales, HR,
etc
- most common and simple

Advantages:
• work is done by highly qualified specialists
• lower costs by reducing duplication (of
output)
Advantages:
• communication and coordination are less
• focuses on customer needs rather than
problematic
product or business functions
Disadvantages:
Disadvantages:
• doing what’s right for us! (departments are
• duplication of work/output
more focused on what they intend to
• coordination across departments are minimal
accomplish rather than for the organization)
• decisions made may always be in favor of the
• decision-making are slow customers, and hurt the business

2. Process Departmentalization
4. Geographic Departmentalization
 - organizes work and workers into separate specific skills and stimulate their thinking.
units responsible for doing business in Jay Kelso, the founder and Chief of
particular geographic areas Operating Officer of KTM, owns and
Advantages: operates the business, relying on employee
• easier response to the demand of different ideas for new toys to manufacture. Kelso’s
markets (countries, cities, regions) aim is to build and maintain a creative and
• reduces cost through organizational family-centric environment in the business.
resources closer to customers Mr. Kelso focuses most of his attention in
Disadvantages: the promotion and marketing side of KTM,
• duplication of resources leaving his plant manager, Ray Groff, in
• immediate coordination between charge of the operations. Human resources
departments are minimal to none decisions such as recruitment, discipline,
and rewards were the responsibility of the
5. Matrix Departmentalization company’s supervisors, with each having
- hybrid structure which uses two department their own different set of practices. This
structure, often the combination of product strategy worked well for a considerable
and functional department period. Things began to change, seemingly
with the increase in the number of
employees. Kelso noticed that morale was
deteriorating. He was especially concerned
because of his business strategy’s
dependence on employee suggestions for
new products, which had declined
substantially as morale waned. Kelso
decided to centralize HR functions to adapt
to the growing number of employees by
Distinctions: selecting Ernest Billingsly, a senior
1. Employees report to two bosses. One from accountant who had a reputation of having
those part of the matrix and main manager food people skills, as HR manager. This
in the matrix selection was met with resistance by the
2. Cross-Functional Interaction supervisors who were previously
Advantages: responsible for HR decisions, with many
• efficient management of complex tasks such feeling that they lost control, that the new
as R&D and marketing hires are not up to par with their standards,
• employees are flexible and that Billingsly is not qualified for the
• diverse pool of human resources available job.
Disadvantages: Possible Problems: (question/statement form)
• high-level of management skills • Kelso was too focused on getting the
• disagreements and misunderstanding of suggestions of the employees to produce
budget, resources and schedule, resulting to diff toys but not paying attention to the
slow decision-making quality of the company as a whole
(relationships being built)
Review of Rational Decision Making: • Different supervisors have diff standards in
1. Kelso Manufacturing Company (KTM) hiring employees so when the owner
manufactures toys that teach children decided to centralize human resources, the
 previous supervisors who implemented stuff
were really resistant
• How will Kelso revive the “one big family”
feeling in the company?
Decision Criteria Weight/Priority

Employee Morale and Team Spirit 1st priority

Urgency to adress to the issue 2nd priority

Organizational structure 3rd priority

Overall business improvement 4th priority

Cost 5th priority

Alternative Courses of Action:
• Launch an employee engagement session
involving the entire company personnel
(management and staff) to explain the new
centralized HR function. This should also be
followed by a training program for newly
appointed HR Manager to enhance his
administrative skills in the HR function.
• Hire a business consultant reporting directly
to Kelso in order to assess all aspects of KTM.
The business consultant will then come up
with recommendations on how to address
the issues of the company.
• Externally hire an experienced HR Manager
to replace Billingsly
*Based on the decision criteria, the first
alternative course of action would be
implemented since it can be urgent
ORGANIZING: ORGANIZING:
JOB PROFILE ORGANIZATIONAL AUTHORITY
What is a Job Profile? - is the framework in which an organization
- an outline, a high-level overview of a job defines how tasks are divided, resources are
position deployed, and departments are coordinated
- Components:
‣ Job Title/Position It defines the following:
‣ Department 1. Set of formal tasks assigned
‣ Job Summary 2. Formal reporting relationships
‣ Duties and Responsibilities 3. Design of systems for effective
‣ Qualifications coordination
‣ Salary
- Example: Important terms:
Job Title: Sales Assistant • Chain of Command
Seniority Level: Entry Level (fresh grads) - an unbroken line of authority that links all
Employment Type: Temporary employees in an organization and shows
Industry: Financial Services Hospital & who reports to whom
Health Care - aka “line of command”
Qualifications:
- college degree holder
- MS Excel proficient
- licensed driver
- amenable to be assigned
anywhere in the Philippines
- difference from a job description is that a job
description is more detailed • Unity of Command
- a management principle which state that
Job Specialization all employees must report to only one
- a job composed of a small part of a larger superior
task or process • Scalar Principle
- ex. McDonald's crew member (drive-thru or - refers to a clearly defined line of authority
take-out window) — special task within mcdo in the organization that includes all
employees
Job Enlargement
- increasing the number of different tasks that Questions:
a worker performs within one particular job 1. Do managers always choose to exercise
their authority?
Job Enrichment 2. Do managers always have the right to
- increasing the number of tasks in a particular command who are under him? To impose
job and giving workers the authority and rules or command to other staff of different
control to make meaningful decisions about departments? If not, why?
their work
Authority - the employee accepts the
- is the legitimate right of a manager to make responsibility given to them
decisions or issue orders (by position or Stage 4: Accountability
appointment)
Importance of Having an Organizational
Responsibility Structure
- is the duty to perform tasks or activity that 1. know who is assigned or who to go to in
one has been assigned when making decisions
2. letting the entire company operate
Accountability seamlessly without confusion —
- mechanism through which authority and communication is clear
responsibility are brought into alignment
STAFFING
Span of Control - process of filling position/posts in the
- number of employees that can be controlled organization with adequate and qualified
directly by a manger and depends on: personnel
1. the type of work - involves putting the right man at the right
2. variability of work place
3. complexity of the work - involves manning the organizational
structure
Line Authority *place refers to position
- formal power to direct and control
immediate subordinates (applies to the Line Human Resource Management (HRM)
department) - a strategic approach to the effective
management of people in an organization,
Staff Authority so that they help the business gain a
- right to advice, counsel in a certain area of competitive advantage
expertise (applies to staff department)
Human Resource Department
Can managers “transfer” authority to his - is a process by which the employees of an
subordinates? organization are helped in continuous and
- “delegation” of work can be done planned way to acquire, sharpen and
develop their capabilities
Delegation of Authority - its responsibilities include payroll, benefits,
- is when managers transfer authority and hiring, firing, and keeping up to date
responsibility to positions below them in the
hierarchy
- Stages of Delegation:
Stage 1: Assignment
- assigning someone
Stage 2: Transfer
- providing what the employee needs
like documents or files or access to
systems
Stage 3: Acceptance
I. Human Resource Planning - they look into the mission of the company
- the process of using an organization’s goals (ex. to expand, offer employment to those
and strategy to forecast its human resource in need in certain locations)
needs in terms of attracting, developing and 11. Productivity of Current Employees
keeping qualified workforce - HR knows the performance of the people
- if the performance is doing well then they
Forecasting Demand & Supply need to hire more people with the same
Workforce Forecasting skills
- the process of predicting the number and - if the performance is bad then there’s
kind of workers with specific skills and probably something wrong with their
abilities that an organization will need in the hiring
future 12. Skills/Educations of Current Employees
- bcos of the skills and education of their
Work Force Forecast employees then the productivity is well
Internal Factors - HR has to take note of this in relation to
1. New Position no. 9
- if the company has new positions to fill in External Factors
then a new position is opened 1. Demographics of Labor Supply
2. New equipment & technology - gender, age group, or comprise
- if the company acquired new demographics
technologies/equipment, HR needs to - Ex. In fashion, most likely they’d hire
prepare more to fill in these tasks to utilize women
all equipments 2. Geographic population shifts
3. Terminations - shifting of the location of available
- if someone leaves then you need to potential employees
replace them, in this case they are fired 3. Shift from manufacturing to service to
4. Retirements information based economy
5. Resignations - the company would have to cope with all
6. Turnover these improvements
- rate of how many people are leaving and 4. General economics conditions
how many are needed to replace them - in relation with the economy
7. Transfer - ex. inflation rate could affect so it is
- someone else transferred to a different something you have to look into when you
role forecast
- not promoted 5. Unemployment Rate
- ex. transferred from Manila to Mindanao, - ex. if the unemployment rate is high and
same job but just transferred to a different you will open positions then it is good for
location you because many people would apply
8. Deaths 6. Labor unions
9. Promotions - separate organization or group within the
* no. 3-9 share the same concept, if someone company
leaves someone has to replace them * - main purpose is to protect the welfare of
10. Organization’s Mission the employees
- not all companies have labor union in the
Philippines
7. Availability of applicants with specific skills - the process of developing a pool of
and education qualified job applicants
- different ways to attract their target Job Analysis
employees - is purposeful, systematic process for
8. Strength and numbers of competitors collecting information on the important
- look into the strengths and figures of work-related aspect of a job
competitors (ex. if Jollibee is your
competitor and they release videos, you Information collected in Job Analysis:
ask how you can come up with videos like • work activities such as what workers do and
that or who could they have hired, etc) how, when, and why they do it
9. Growth in particular businesses and • the tools and equipment used to do the job
markets • the context in which the job is performed,
- study what the company looks for then such as the actual working conditions or
adapt to the strategies schedule
• the personnel requirements for performing
3 Kinds of Forecasting Method the job, meaning the knowledge skills, and
1. Direct Managerial Input abilities needed to do a job well
- based on straight forward projections of
cash flows, expenses or financial measures Two Types of Recruitment
such as return on capital 1. Internal Recruiting
2. Best Guess Forecasting - the process of developing a pool of
- a method based on managers assessment qualified job applicants from the people
of current head count plus of how internal who already work in the company
factors and external factors will affect that - “promotion from within” — promoting
head count employees in the company
3. Statistical / Historical Ratios - usually the first option of companies
- a method uses statistical method such as
multiple regression in combination with Two Methods of Internal Recruitment
historical date to predict the number and (1) Job Posting
kind of using data from the last 2 years - a procedure for advertising job openings
within the company to existing employees
Human Resource Information System (HRIS) (2) Career Path
- computerized system/s for gathering, - a planned sequence of jobs through
analyzing, storing and disseminating which employees may advance within the
information related to attracting, developing company
and keeping a qualified workforces
Marketing Staff —2 years—> Marketing Head —4
Employee Legislation years—> Marketing Supervisor (5th year)
- law that governs employment within the
workplace with everyone who works * companies would prioritize their own people
- legal responsibilities of an organization first since they may have employees who are
- DOLE (Department of Labor and ready to be promoted — prioritize the
Employment) development of your people
* however, if no one is fit for the role, that’s the
II. Recruiting time you look for people outside
2. External Recruiting background information not provided by
- the process of developing a pool of applicant
qualified job applicants from out of the • Selection Test
company - To have applicants take a test that
measure something directly or indirectly
Examples of External Recruitment Sources: related to doing well on the job
• Advertising (newspaper, social media, - similar to college entrance tests (3-4 hours
magazine, direct mail, radio or television) of the same test)
• Employees referral (recommend possible job ๏ Cognitive Ability Test

applicants) ๏ Biographical Data or Biodata

• Walk-Ins ๏ Personality Test

• Outside organizations such as private ๏ Work Sample Test

agencies or professional search firms — ๏ Assessment Centers

having a third party channel through • Interviews

recruitment agencies - A selection tool in which company
representatives ask job applicants job-
III. Selection related question to determine whether
- the process of gathering information and job they are qualified for the job
applicant to decide who should be offered a - Basic kind of interviews:
job ๏ unstructured interview — casual
๏ structured interview — formal

Validation ๏ Semi structure interview — can start off

- process of determining how well a selection as casual to set the mood then go
test or procedure predicts future job formal
performance ๏ Panel Interview

Common Selection Procedures: Topics that must be handled with care/caution

• Application Forms or Resume by employers (in application forms, interview
- It includes: or other parts of selection process)
๏ objectives (it reflects something about - children
you) - age
๏ profile summary (for more seasoned - disabilities
employees they replace objectives with - physical characteristics
this) - citizenship
๏ educational background - lawsuits or arrest records
• Employment Reference - smoking (or excessive drinking)
- source such as previous employers or co- - AIDS/HIV
workers who can provide job-related
information about job candidates Interview
• Background checks Definition
- procedures used to verify the truthfulness - it is an interactional communication process
and accuracy of information that which involves the asking of questions by
applicants provide about themselves and the interviewer for the specific purpose of
to uncover negative job-related obtaining research-relevant information and
answering of questions by the interviewee
Things to know before an interview: V. Performance Appraisal
Interviewer: - the process of assessing how well
1. Be prepared. employees are doing their jobs
2. Observe proper decorum.
3. Qualifications matter more than your How to Accurately Measure Job Performance
appearance. Using:
4. Ask your questions clearly. • Objective Performance Measures
5. Set the interviewee’s expectations. - most objective, easiest way of measuring
Interviewee: - accountable, measurable, quantifiable
1. Be prepared. - ex. you run a manufacturing firm creating
2. Observe proper decorum. shirts so your objective performance
3. Qualifications matter more than your measure for your workers could be the no.
appearance. of shirts they complete within a month
4. Give concise answers. - so when you check their performance, you
5. Be honest. base it off how much shirts they’ve already
accomplished from the goal (if they don’t
Guidelines for conducting a structured reach it, you can give them a low rating)
interview: • Subjective Performance Measures
Step 1: Job Analysis - measured based on opinions,
- checking on your files perceptions, and gut feel
- recall the job analysis you have prepared or - not really good bc ppl who will evaluate
previously done you are not directly involved in your
Step 2: Define Requirement performance
- specific experience in a job - prone to bias
- specific skills (ex. communication skills, - generic feedback
leadership skills) - ex. someone is your supervisor but will ask
Step 3: Develop lead and probing questions someone from the other team to rate you
- going deeper into the conversation so he would only see the surface
- not just getting basic answers - Ex. “I think she works slow bcos she is
- use their experiences to draw more answers quiet in the workplace” it doesn’t mean
- situational questions that u are quiet, u work slow but in reality
Step 4: Determine grading scale you are able to deliver
- scoring system (like rubrics) • Behavior Observation Scale
Step 5: Conduct the interview - specific list of behaviors
- there’s a basis
IV. Training - there’s a certain scale
- developing skills and knowledge that - Ex. Using the scale of 1-5, Does this
employees need in order to perform their person often greet the customers when
job or improve their performance they arrive? If she always does so, you give
her a 5.
Steps in conducting a training: *The measures/scale can be combined. Most
1. Determine the specific training needs of the time managers would combine
2. Select appropriate training method objective, subjective, and behavior
3. Evaluate training
*It will be easier to conclude on something if ‣ commission
you have different measures - received a portion of the sale
Ex. you have good objective and behavior - usually good for companies who do sale
results but in your subjective someone would ‣ profit sharing
say you have a work attitude problem, that - its like a bonus
person may have a personal problem against - the big company will share its profits that
you while everyone else gives good feedback it attained
— thus you can have balance - not mandated by law; it is an add-on
‣ employee stock ownership plans
How to Effectively Share Performance - investment
Feedback Using: - multinational companies have this for their
• 360 Degree Feedback employees
- feedback coming from different people - you buy stocks then you get dividends in
(the ones you directly work with) return
- good way of evaluating and receiving • Pay Structure
feedback since the people are directly ‣ hierarchy
working with you, you have a good - there’s levels
relationship with them, and they could - ex. level 1 they can only have salaries
come from different locations ranging from 10,000-30,000
- it could come anonymously or not - usually tenured / seasonal employees will
- very effective reach the highest level
- ex. you work in a marketing firm, your ‣ compressed
colleague from another office will give you - adding up everything (basic salary,
a feedback since there’s a working commission, deductions)
relationship even if they’re from a different • Employment Benefits
location ‣ cafeteria plans or flexible plans
- as an employee you have the liberty to
VI. Compensation choose the kind of benefits you will
- the financial and non-financial rewards that receive
organizations give employees in exchange - not all companies offer this
for their work - it could be in the form of free meals, car
subsidy, etc
Kinds of Compensation Decisions:
• Pay Level VII. Employee Separation
‣ job evaluation - a broad term covering the loss of an
- usually happens monthly basis, mid-year, employee for any reason
and end-year
- you are basically being evaluated Types of Employee Separation:
- most typical decision that managers have • Terminating Employees
to make - letting go of an employee
• Pay Variability • Downsizing
‣ piecework - the company has to lay off or let go of
- quantifiable objective performance some people bcos the company is no
measure longer earning profits
- depends on outputs • Retirement
 - if you’ve reached the retirement age or SUBSTITUTES FOR LEADERSHIP
some companies give you an early Do Leaders Always Matter?
retirement package
• Employees Turnover Leadership Substitutes
- pertains to resignation - subordinate, task, or organizational
- if the company has a high rate of turnover characteristics that make leaders redundant
then you have to investigate why or unnecessary
- Ex. experienced employee who has been
LEADERSHIP working in the company for 10 years, very
Leadership is the process of influencing others knowledgeable and knows the ins & outs of
to achieve group or organizational goals. a company therefore a manager may no
longer be needed since the employee can
Leaders VS Managers work on his own (doing a good performance
with or without the presence of a leader)
MANAGER LEADER
Leadership Neutralizers
• do things right • do the right things - subordinate, task, or organizational
• status quo • change characteristics that can interfere with a
- maintaining the current - find a way to be better leader’s actions or make it impossible for a
state
leader to influence followers’ performance
• short term • long term
- thinks about the present - thinks about the future; more
situation strategic
Examples:
Individual • individual professionalism
• builders • architects
- construct - design Factors • individual ability, knowledge,
and motivation
• problem solving • inspiring and motivating
• individual experience and
training
• means • ends • indifference to rewards
- how they would solve a - focused on the end result
problem Job Factors • structured/automated
Examples: • highly controlled
1. If you have sales target in your company… • intrinsically satisfying
manager: would try to accomplish it and • embedded feedback
focused on the target (like going overtime) Organization • explicit plans and goals
leaders: aside from achieving the set target, Factors • rigid rules and procedures
they would tend to look into the moral, ethics, • rigid reward system not tied
and humanistic side (like maybe one of the to performance
staff is experiencing a personal problem thats • physical distance between
why their not achieving so they wouldn’t let the supervisor and subordinate
person go overtime first)
Group Factors • group performance norms
• high level of group
Leaders build your confidence so you will tell cohesiveness
them what they need to hear. • group interdependence
Managers build your fear so you will tell them
*Structured/Automated — a manufacturing
what they want to hear.
company wherein everything is computerized
(automated), the employees memorized the
steps (structured process of operating the - Ex. as the owner of the company, you have 3
machine) like press then wait; gives them a managers. If you know one team is chaotic
reason not to follow a leader even if the system (high rate of absences, employees don’t
breaks down deliver) you have to get a strong or
aggressive leader. If another team doesn’t
LEADERSHIP THEORIES have to be monitored, behaves well, then
I. Trait Theory of Leadership you assign a leader who has the same
- the traits of a leader are different from those qualities.
who are non-leaders
- Common traits of a leader: III. Path-Goal Theory
Knowledge of the business

Initiative

Tenacity - persevering

Energy - energy to work/perform

- influence his subordinates

Decision Making Skills - pros & cons

Flexibility
- goal focused
Creativity - out of the box

Charisma - positivity IV. Hersey-Blanchard Situational Leadership

Theory
Emotional Intelligence

Drive and Motivation

Confidence

Honesty and Integrity

II. Fiedler’s Contingency Model

- situational
- the leader adjusts
- opposite of fiedler’s
- maturity of leader: if the leader already
gained experiences and knows when to
adjust his leadership then he will do so
- more realistic

- the situation has to fit the style of the leader

- instead of the leader adapting to the
different challenges or situations,the
situation has to adjust
- leadership and situation goes together
V. Vroom-Yetton-Jago Decision Model - however, if you go overboard between
leaders and non-leaders they might get
confused
- its okay to speak up but sometimes the
leader might not agree with you
- there should be a balance of behavior and
setting of expectations
- at the end of the day, the boss is still the
boss

- focused on a leader’s decision making skills IV. Supportive Leadership

- focuses on 3 three leadership styles - friendly and approachable
- Autocratic: “this is what I will do” you just - concern for employees
have to follow what the manager will say - supports you and concerned for your
- Consultative: task-oriented but asks welfare as a leader
somebody else — usually done individually, - sometimes when you’re too approachable/
uses insights to make a decision, one-on-one friendly, they might not give u the respect na
in getting insights as a leader
- Collaborative: the leader will decide with a - they might treat u as a friend instead of their
group, as a group boss
- excessiveness of this isn’t good anymore
LEADERSHIP STYLES
I. Directive or Autocratic Leadership V. Strategic Leadership
- specific guidelines or orders - ability to anticipate and envision
- standards of performance - flexibility
- rules and regulations - initiates changes
- focuses on the “I” “me” as a leader - strategically plans and initiates
- the followers have no choice but to follow/ improvements in the workplace
comply - focused on implementation of changes,
- very strict plans
- generally, it is not a good thing - has techniques/strategies ready
- before implementing something, the leader
II. Achievement-Oriented Leadership would have strategies first or options
- sets challenging goals - generally, a good thing
- high expectations - not just goal-oriented but very competitive
- confidence
- they expect their people to achieve the VI. Visionary Leadership
goals - positive image of the future
- future planning
III. Participative or Democratic Leadership - sometimes you think too much of the future
- consults employees so you have to take action
- involved in decision-making
- generally a good thing because everyone VII. Charismatic Leadership
else will feel part of the group - behavioral characteristics
- exceptional strong relationship
VIII. Transformational Leadership Standards
- awareness and acceptance - a basis of comparison for measuring the
- purpose and mission performance of the organization
- beyond needs and self-interest
- be instrumental, contributing something to Steps in the Control Process
the needs of the world Step 1: Establish performance objectives and
- focuses on helping out on the society and standards
the country Ex. Benchmarking
- example: social entrepreneurs, politicians - a way of establishing standards
- process of identifying outstanding practices,
MOTIVATION processes, and standards in other
What is motivation? companies and adapting them to your
-set of forces company
-initiates Step 2: Measure actual performance
-directs Step 3: Compare actual performance with
-persistence objectives and standards
Step 4: Take necessary action
Basics of Motivation
1. Effort and Performance SUMMARY:
- effort = performance

2. Needs Satisfaction
- physical or psychological requirements
- survival and well-being
3. Maslow’s Hierarchy of Needs

CONTROL PROCESS
- establishing standards
- achieve goals
- correction action