MODULE 3: FUNCTIONS OF MANAGEMENT

LESSON 1: PLANNING TECHINCAL ACTIVITIES

“A goal without a plan is just a wish.” – Antoine de Saint-Exupery
THE NATURE OF PLANNING
To minimize mistakes in decision-making, planning is undertaken.
PLAN
✓ Output of planning
✓ Provides methodical way of achieving desired results
✓ Useful guide to implement activities

PLANNING DEFINED
According to Nickels and others, planning refers to “the management function that involves
anticipating future trends and determining the best strategies and tactics to achieve organizational
objectives.”
Aldag and Stearns, define planning as “the selection and sequential ordering of tasks required to
achieve an organizational goal.”
The definition of Cole and Hamilton provides a better guide on how to effectively perform this vital
activity. Planning, according to them is “deciding what will be done, who will do it, where, when and
ho it will be done, and the standards to which it will be done.”
Planning is selecting the best course of action so that the desired result may be achieved.

PLANNING AT VARIOUS MANAGEMENT LEVELS

Planning activities undertaken at various levels are as follows:
1. Top Management Level – strategic planning
2. Middle Management Leve; - intermediate planning
3. Lower Management Level – operational planning
Strategic Planning
The term strategic planning refers to the process of determining the major goals of the organization and the
policies and strategies for obtaining and using resources to achieve those goals.
The output of strategic planning is the strategic plan which spells out “the decision about long-range goals and
the course of action to achieve these goals.”
Intermediate Planning
Intermediate planning refers to the process of determining the contributions that subunits can make with
allocated resources.” This type of planning is undertaken by middle management.
The intermediate plan is designed to support the strategic plan.
Six months to two years.
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Operational Planning
Then term operational planning refers to the process of determining how specific taska can best be
accomplished on time with available resources.”

THE PLANNING PROCESS

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Planning involves the following:
1. Setting organizational. Divisional, or unit goals
2. Developing strategies or tactics to reach those goals
3. Determining resources needed and
4. Setting standards
Setting Organizational, Divisional, or unit Goals
The first task of the engineer manager is to provide a sense of direction to his firm (if he is the chief executive),
to his division (if he heads a division), or to his unit (if he is a supervisor).
Goals may be defined as the “precise statement of results sought, quantified in time and magnitude, where
possible.” (SMART)
Developing Strategies or Tactics to Reach Goals
A strategy may be defines as “a course of action aimed to ensuring that the organization will achieve its
objectives.”
A tactic is a short-term action taken by management to adjust to negative internal or external influences.
Determining Resources Needed
When particular sets of strategies or tactics have been devised, the engineer manager will, then, determine
the human and non-human resources required by such strategies or tactics.
The quality and quantity of resources needed must be correctly determined.
Setting Standards
A standard may be defined as “a quantitative or qualitative measuring device designed to help monitor the
performances of people, capital goods, or processes.”

TYPES OF PLANS
Plans are of different types. They may be classified in terms of functional areas, time horizon, and frequency
of use.
Functional Area Plans
Plans may be prepared according to the needs of the different functional areas. Among the types of functional
area plans are the following:
1. Marketing Plan – this is the written document or blueprint for implementing and controlling an
organization’s marketing activities related to a particular marketing strategy.
2. Production Plan – this is a written document that states the quantity of output a company must
produce in broad terms and by product family.
3. Financial Plan – it is a document that summarizes the current financial situation of the firm, analyzes
financial needs, and recommends a direction for financial activities.
4. Human Resources Management Plan – it is a document that indicates the human resource needs of a
company detailed in terms of quantity and quality and based on the requirements of the company’s
strategic plan.

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Plans With Time Horizon
1. Short-range Plans – plans intended to cover a period of less than one year. First-lined supervisors are
mostly concerned with these plans.
2. Long-range plans – plans covering a time span of more than one year. These are mostly undertaken by
middle and top management.

Plans According to Frequency of Use

Plans may be classified as:
STANDING PLANS.
Standing plans may be further classified as follows:
1. Policies – they are broad guidelines to aid managers at every level in making decisions about recurring
situations or function.
2. Procedures – they are plans that describe the exact series of actions to be taken in a given situation.
3. Rules – they are statements that either require or forbid a certain action.
SINGLE-USE PLANS.
It may be further classified as follows:
1. Budgets – “a plan which sets forth the projected expenditure for a certain activity and explains where
the required funds will come from.”
2. Programs – a single-use plan designed to coordinate a large set of activities
3. Projects – a single-use plan that is usually more limited in scope than a program and is sometimes
prepared to support a program.

MAKING PLANNING EFFECTIVE

Planning may be made successful if the following are observed:
Recognized The Planning Barriers
1. Manager’s inability to plan
2. Improper planning process
3. Lack of commitment to the planning process
4. Improper information
5. Focusing on the present at the expense of the future
6. Too much reliance on the planning department
7. Concentrating on only the controllable variable
Use of Aids to Planning
1. Gather as much information as possible
2. Develop multiple sources of information
3. Involve others in the planning process
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LESSON 2: ORGANIZING TECHINCAL ACTIVITIES
For every minute spent organizing, an hour is earned. – Benjamin Franklin
Organizational skills contribute largely to the accomplishment of the objectives of many organizations.
The opportunities offered by skillful organizing are too important for the engineer manager to ignore.

REASONS FOR ORGANIZING

Organizing is undertaken to facilitate the implementation of plans.
In effective organizing, steps are undertaken to breakdown the total job into more manageable man-size jobs.
These will help to facilitated the assignment of authority, responsibility, and accountability for certain
functions and tasks.

ORGANIZING DEFINED
Organizing is a management function which refers to “the structuring of resources and activities to accomplish
objectives in an efficient and effective manner.”
The arrangement or relationship of positions within an organization is called the structure. It is the result of
organizing process.

THE PURPOSE OF THE STRUCTURE

1. It defines the relationships between tasks and authority for individuals and departments.
2. It defines formal reporting relationships, the number of levels in the hierarchy of the organization, and
the span of control.
3. It defines the groupings of individuals into departments and departments into organization.
4. It defines the system to effect coordination of effort in both vertical (authority) and horizontal (tasks)
directions.
When structuring an organization, the engineer manager must be concerned with the following:
1. Division of Labor – determining the scope of work and ow it is combined in a job.
2. Delegation of Authority – the process of assigning various degrees of decision-making authority to
subordinates
3. Departmentation – the grouping of related jobs, activities, or processes into major organizational
subunits
4. Span of Control – the number of people who report directly to a given manager
5. Coordination – the linking of activities in the organization that serves to achieve a common goal or
objective.

THE FORMAL ORGANIZATION

The formal organization is “the structure that details lines of responsibilities, authority, and position.”

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Organizational chart is “the planned structure” and it “represents the deliberate attempt to establish
patterned relationships among components that will meet the objectives effectively.”
The formal structure is described by management through:
1. Organization Chart – a diagram of the organization’s official positions and formal lines of authority
2. Organizational Manual – provides written descriptions of authority relationships, details the functions
of major organizational units, and describes job procedures.
3. Policy Manual – describes personnel activities and company policies.

INFORMAL GROUPS
There are instances when members of an organization spontaneously form a group with friendship a principal
reason for belonging. This group is called an informal group.
Informal groups are oftentimes very useful in the accomplishment of major tasks.
The informal organization, useful as it is, is “vulnerable to expediency, manipulation, and opportunism”. Its
low visibility makes it “difficult for management to detect these perversions, and considerable harm can be
done to the company.”

TYPES OF ORGANIZATIONAL STRUCURES

Organizations may be classified into three types. They are the following:
1. Functional Organization – everyone is engaged in one functional activity
2. Product or Market Organization – brings together all those involved with a certain type or product or
customer
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 3. Matrix Organization – each employee reports to both a functional or division manager and to a project
or group manager

Functional Organization

ADVANTAGES:
1. The grouping of employees who perform a common task permit economies of scale and efficient
resource use.
2. Decision-making is centralized, providing a unified direction from the top.
3. Communication and coordination among employees within each department are excellent.
4. The structure promotes high-quality technical problem-solving.
5. The organization is provided with in depth skill specialization and development.
6. Employees are provided with career progress within functional departments.

DISADVANTAGES:
1. Communication and coordination between the departments are often poor.
2. Decisions involving more than one department pile up at the top management level and are often
delayed.
3. Work specialization and division of labor, which are stressed in a functional organization, produce
routine, nonmotivating employee tasks.
4. It is difficult to identify which section or group is responsible for certain problems.
5. There is limited view of organizational goals by employees.
6. There is limited general management training for employees.

Product or Market Organization

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ADVANTAGES:
1. The organization is flexible and responsive to change.
2. The organization provides a high concern for customer’s needs.
3. The organization provides excellent coordination across functional departments.
4. There is easy pinpointing of responsibility for product problems.
5. There is emphasis on overall product and division goals.
6. The opportunity for the development of general management skills is provided.

DISADVANTAGES:
1. There is high possibility of duplication of resources across divisions.
2. There is less technical depth and specialization in divisions.
3. These is poor coordination across divisions.
4. There is less top management control.
5. There is competition for corporate resources.

Matrix Organization
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ADVANTAGES:
1. There is more efficient use of resources than the divisional structure.
2. There is flexibility and adaptability to changing environment.
3. The development of both general and functional management skills are present.
4. There is interdisciplinary cooperation and any expertise is available to all divisions.
5. There are enlarged tasks for employees which motivate them better.

DISADVANTAGES:
1. There is frustration and confusion from dual chain of command.
2. There is high conflict between divisional and functional interests.
3. There are many meetings and more discussion than action.
4. There is a need for human relations training for key employees and managers.
5. There is a tendency for power dominance by one side of the matrix.

TYPES OF AUTHORITY
1. Line Authority – a manager’s right to tell subordinates what to do and then see that they do it.
2. Staff Authority – a staff specialist’s right to give advice to a superior
3. Functional Authority – specialist’s right to oversee lower level personnel involved in that specialty,

THE PURPOSE OF COMMITTEES

A committee is a formal group of persons formed for a specific purpose.
Committees may be classified as follows:

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 1. Ad Hoc Committee – one created for a short-term purpose and have a limited life.
2. Standing Committee – it is a relatively permanent committee that deals with issues on an ongoing
basis.

LESSON 3: STAFFING THE ENGINEERING ORGANIZATION

Great vision without great people is irrelevant. – Jim Collins
WHAT IS STAFFING?
The engineer manager must be concerned with putting the right person in various positions within his area of
concern.
The engineer manager assumes a great responsibility in assuring that the right persons are assigned to
positions that fit their qualifications.
Staffing may be defined as “the management function that determines human resources needs, recruits,
selects, trains, and develops human resources for jobs created by an organization.”
Staffing is undertaken to match people with jobs so that the realization of the organization’s objectives will be
facilitated.

THE STAFFING PROCEDURE

The staffing process consists of the following series of steps:
1. Human resource planning
2. Recruitment
3. Selection
4. Induction and orientation
5. Training and development
6. Performance appraisal
7. Employment decisions (monetary rewards, transfers, promotions and demotions)
8. Separations
Human Resource Planning
Human resource planning may involve three activities , as follows:
1. Forecasting – which is an assessment of future human resource needs in relation to the current
capabilities of the organization.
2. Programming – which means translating the forecasted human resource needs to personnel
objectives and goals.
3. Evaluation and control – which refers to monitoring human resource action plans and evaluation their
success.
Methods of Forecasting
1. Time series methods – which use historical data to develop forecasts of the future.

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 2. Explanatory, or casual models – which are attempts to identify the major variables that are related to
or have caused particular past conditions and then use current measures of these variables to predict
future conditions.
3. Monitoring methods – are those that provide early warning signals of significant changes in
established patterns and relationships so that the engineer manager can assess the likely impact and
plan responses if required.
Recruitment
Recruitment refers to attracting qualified persons to apply for vacant positions in the company so that those
who are best suited to serve the company may be selected.
SOURCE OF APPLICANTS
1. Current employees
2. Advertising
3. Schools
4. Referrals from employees
5. Recruitment firms
6. Competitors
Selection
Selection refers to the act of choosing from those that are available the individual most likely to succeed on
the job.
The purpose of selection is to evaluate each candidate and to pick the most suited foe the position available.
Selection procedures may be simple or complex depending on the costs of a wrong decision.
WAYS OF DETERMINING THE QUALIFICATIONS OF A JOB CANDIDATE
1. Application blanks. Age, marital status, address, educational background, experience, and special
interest.
2. References. Previous employers, co-workers, teachers, club officers, etc.
3. Interviews.
4. Testing.
TYPES OF TESTS
1. Psychological Tests
a. Aptitude test
b. Performance test
c. Personality test
d. Interest test
2. Physical Examination
Induction and Orientation
In induction, the new employee is provided with the necessary information about the company. His duties,
responsibilities, and benefits are relayed to him.
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In orientation, the new employee is introduces to the immediate working environment and co-workers.
Location, rules, equipment, procedures, and training plans and also performance expectations.
Training and Development
Training refers to the “learning that is provided in order to improve performance on the present job.” Training
programs consist of two general types, namely:
1. Training programs for nonmanagers
2. Training and educational programs for executives
TRAINING PROGRAM FOR NONMANAGERS
1. On-the-job training – where the trainer is placed in an actual work situation under the direction of his
immediate supervisor
2. Vestibule school – where the trainee is placed in a situation almost exactly the same as the workplace
3. Apprenticeship program – where a combination of on-the-job training and experiences with
classroom instruction in particular subjects are provide to trainees.
4. Special courses – are those taken which provide emphasis on education rather than training.
TRAINING PROGRAMS FOR MANAGERS
The decision-making skills of the manager may be enhanced through any of the following methods of training:
1. In-basket – where the trainee is provided with a set of notes, messages, telephone calls, letters, and
reports, all pertaining to a certain company situation.
2. Management games – is a training method where “trainees are faced with a simulated situation and
are required to make an ongoing series of decisions about that situation.”
3. Case studies – this method presents actual situations in organizations and enable one to examine
successful and unsuccessful operations.
The interpersonal competence of the manager may be developed through any of the following methods:
1. Role-playing – is a method by which the trainees are assigned roles to play in a given case incident.
2. Behavior modeling – this method attempts to influence the trainee by “showing model persons
behaving effectively in problem situation.”
3. Sensitivity training – under this method, awareness and sensitivity to behavioral patterns of oneself
and others are developed.
4. Transactional analysis – is the training method intended “to help individuals not only understand
themselves and others but also improve their interpersonal communication skills.”
In acquiring knowledge about the actual job the manager is currently holding, the following methods are
useful:
1. On-the-job experience
2. Coaching
3. Understudy
In the attempt to increase the trainee’s organizational knowledge, exposure to information and events
outside of his immediate job is made. In this regard, the following methods are useful:
1. Position rotation – under this method, the manager is given assignments in a variety of departments.

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 2. Multiple management – junior executives must be provided with means to prepare them for higher
management positions.
Performance Appraisal
Performance appraisal is the measurement of employee performance. The purposes for which performance
appraisal is made are as follows:
1. To influence employee performance and development;
2. To determine merit and pay increases;
3. To plan for future performance goals;
4. To determine training and development needs;
5. To assess the promotional potential of employees.
WAYS OF APPRAISING PERFORMANCE
1. Rating scale method
2. Essay method
3. Management by objectives method
4. Assessment center method
5. Checklist method
6. Work standards method
7. Ranking method
8. Critical-incident method
Employment Decisions
1. Monetary rewards
2. Promotion
3. Transfer
4. Demotion
Separation
Separation is either a voluntary or involuntary termination of an employee.
Voluntary (Resignation)
The organization’s management must find out the real reason. If the presence of a defect in the organization
is determined, corrective action is necessary.
Involuntary (Termination)
Last option that the management exercises when an employee’s performance is poor or when he/she
committed an act violating the company rules and regulations.
Usually made after training efforts fail to produce positive results.

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LESSON 4: COMMUNICATING
Effective teamwork begins and ends with communication.
WHAT IS COMMUNICATION?
Morris Philip Wolf and Shirley Kuiper define communication as “a process of sharing information through
symbols, including words and message.”
In management, communication must be made for a purpose.

FUNCTIONS OF COMMUNICATION
1. Information function –used for decision-making at various work levels
2. Motivation function –means to motivate employees to
3. Control function – when properly communicated, reports, policies, and plans define roles. Clarify
duties, authorities and responsibilities. Effective control is, then, facilitated.
4. Emotive function – Expression of feelings; means to decrease internal pressure affecting the
individual.

THE COMMUNICATION PROCESS

The communication process consist of eight steps:
1. Develop an Idea
The most important step in effective communication is developing an idea. It is important that the
idea to be conveyed must be useful or of some value.
2. Encode
The next step is to encode the idea into words, illustrations. Figures, or other symbols suitable for
transmission.
3. Transmit
Among the various channels used include the spoken word, body movements, the written word,
television telephone, radio, an artist’s paint, electronic mail, etc.
Proper transmission is very important so the message will reach and hold the attention of the receiver.
To achieve this, the communication channel must be free of barriers, or interference (sometimes
referred to as noise).
4. Receive
Actual receiving of the message by the intended receiver. The requirement is for the receiver to be
ready to receive at the precise moment the message relayed by the sender.
The message may be initially received by a machine or by a person.
5. Decode
The next step, decoding, means translating the message from the sender into a form that will have
meaning to the recipient. If the receiver knows the language and terminology used in the message,
successful decoding may be achieved.
6. Accept

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 The next step is for the receiver to accept or reject the message.
The factors that will affect the acceptance or rejection of a message are as follows:
- The accuracy of the message;
- Whether or not the sender has the authority to send the message and/or require action; and
- The behavioral implications for the receiver.
7. Use
The next step is for the receiver to use the information. If the message provides information of
importance to a relevant activity, then the receiver could store it and retrieve it when required.
8. Provide Feedback
The last step in the communication process is for the receiver to provide feedback to the sender.
Depending on the perception of the receiver, however, this important step may not be made.

FORMS OF COMMUNICATION
Verbal Communication
Oral communication mostly involves hearing the words of the sender, although sometimes, opportunities are
provided for seeing the sender’s body movements, facial expression. Gestures, and eye contact.
An alternative to oral communication is the written communication where the sender seeks to communicate
through the written word. This sometimes preferred because of time and cost constraints..
Nonverbal Communication
Nonverbal communication is a means of conveying message through body language, as well as the use of
time, space, touch, clothing, appearance, and aesthetic elements. Body language consists of gestures, bodily
movement posture, facial expression, and mannerisms of all kinds.

THE BARRIERS TO COMMUNICATION

The barriers to communication may be classified generally as:
1. Personal barriers
2. Physical barriers
3. Semantic barriers
Personal Barriers
Personal barriers are hindrances to effective communication arising from a communicator’s characteristics as
a person, such as emotions, values, poor listening habits, sex, age, race, socioeconomic status, religion,
education.
Physical Barriers
Physical barriers refer to interferences to effective communication occurring in the environment where the
communication is undertaken.
Distraction does not allow full understanding of the meaning of the entire message and is an example of a
physical barrier.
Physical barriers include distances between people.
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Semantic Barriers
Semantic barriers is the study of meaning as expressed in symbols. Words, pictures, or actions are symbols
that suggest certain meanings. When the wrong meaning has been chosen by the receiver, misunderstanding
occurs.
A semantic barrier may be defined as an “interference with the reception of a message that occurs when the
message is misunderstood even though it is received exactly as transmitted.”

OVERCOMING BARRIERS TO COMMUNICATION

To eliminate problems due to noise, selective perception, and distraction, the following are recommended:
▪ Use feedback to facilitate understanding and increase the potential for appropriate action.
▪ Repeat messages in order to provide assurance that they are properly received.
▪ Use multiple channels so that the accuracy of the information may be enhanced.
▪ Use simplified language that is easily understandable and which eliminates the possibility of people
getting mixed-up with meanings.

TECHNIQUES FOR COMMUNICATING IN ORGANIZATIONS

Downward Communication
This refers to message flows from higher levels of authority to lower levels. Among the purposes of downward
communication are:
1. To give instructions
2. To provide information about policies and procedures
3. To give feedback about performance
4. To indoctrinate or motivate
Among the techniques used in downward communication are as follows: letters, meetings, telephones,
manuals, handbooks, and newsletters.
Upward Communication
The primary reason for upward communication is for management to know the specific needs of the
employees.
Formal Grievance Procedures.Grievance is any employee’s concern over a perceived violation of the labor
agreement that is submitted to the grievance procedure for eventual resolution.
Employee Attitude and opinion Surveys. Finding out what the employees think about the company is very
important.
Suggestion Systems. Suggestions from employees are important sources of cost-saving and production
enhancing ideas.
Open-Door Policy. An open-door policy, even on a limited basis, provides the management with an opportunity
to act on difficulties before they become full-blown problems.
Informal Gripe Sessions. Informal gripe sessions can be used positively if management knows how to handle
them.

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Task Forces. When a specific problem or issue arises, a task forces may be created and assigned to deal with
the problem or issue.
Exit Interview. When employees leave an organization for any reason, it is to the advantage of management
to know the real reason.
Horizontal Communication
The purpose of horizontal communication are:
▪ To coordinate activities between departments
▪ To persuade others at the same level of organization
▪ To pass on information about activities or feelings

MANAGEMENT INFORMATION SYSTEM

Management information system (MIS) is defined as “an organized method of providing past, present, and
projected information on internal operations and external intelligence for use in decision-making.”
The Purpose of MIS
▪ To provide a basis for the analysis of early warning signals that can originate both externally and
internally.
▪ To automate routine clerical operations like payroll and inventory reports.
▪ To assist managers in making routine decisions like scheduling orders, assigning orders to machines,
and reordering supplies.
▪ To provide the information necessary for management to make strategic or nonprogrammed
decisions.

LESSON 5: MOTIVATING
WHAT IS MOTIVATION?
Motivating refers to the act of “giving employees reasons or incentives to work to achieve organizational
objectives.”
Motivation refers to the “process pf activating behavior, sustaining it, and directing it toward a particular goal.”

FACTORS CONTRIBUTING TO MOTIVATION

1. Willingness to do a job.
2. Self-confidence in carrying out a task.
3. Needs satisfaction.

THEORIES OF MOTIVATION
1. Maslow’s needs hierarchy theory
2. Herzberg’s two-factor theory
3. Expectancy theory
4. Goal setting theory

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Maslow’s Needs Hierarchy Theory

Herzberg’s Two-Factor Theory

The two-factor theory is one developed by Frederick Herzberg indicating that a satisfied employee is
motivated from within to work harder and that a dissatisfied employee is not self-motivated.

Expectancy Theory

Expectancy theory is a motivation model based on the assumption that an individual will work depending on
his perception of the probability of his expectations to happen.

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Goal Setting Theory

Goal setting refers to the process of “improving performance with objectives, deadlines or quality standard.”

Goal Content. Challenging, attainable, specific and measurable, time-limited, and relevant.

Goal Commitment. When individuals or groups are committed to the goals they are supposed to achieve, there
is a chance that they will be able to achieve them.

Work Behavior. Goals influence behavior in terms of direction, effort, persistence, and planning.

Feedback Aspects. Feedback provide the individuals with a way of knowing how far they have gone in
achieving objectives.

TECHNIQUES OF MOTIVATION

Motivation Through Job Design

Job design may be defined as “specifying the tasks that constitute a job for an individual or a group.”

In motivating through the use of job design, two approaches may be used:

Fitting People to Jobs.

▪ Realistic job previews

▪ Job rotation
▪ Limited exposure

Fitting Jobs to People.

▪ Job enlargement
▪ Job enrichment

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Motivating Through Rewards

Rewards can be classified into two categories:

1. Extrinsic – those which refer to payoffs granted to the individual by another party.
2. Intrinsic rewards – those which are internally experienced payoffs which are self-granted.

MANAGEMENT OF EXTRINSIC REWARDS

▪ It must satisfy individual needs;

▪ The employees must believe effort will lead to rewards;
▪ Rewards must be equitable;
▪ Rewards must be linked to performance.

Motivation Through Employee Participation

The specific activities identified where employees may participate are as follows:

▪ Setting goals
▪ Making decisions
▪ Solving problems
▪ Designing and implementing organizational changes

The more popular approached to participation includes the following:

▪ Quality control circles

▪ Self-managed teams

Quality Control Circles. A method of direct employee participation is the quality control circle (QCC). The
objective of the QCC is to increase productivity and quality of output.

The circle consists of “a group of three to ten employees usually doing related work, who meet at regular
intervals (once a week for an hour, for example) to identify problems and discuss their solutions.” The circle
includes “a leader such as a foreman, but rely on democratic processes.” The members are trained in various
analysis techniques by a coordinator.

Self-managed Teams. Also known as autonomous work groups or high performance teams, self-managed
teams “take on traditional managerial tasks as part of their normal work routine.”

The self-managed teams work on their own, turning out a complete product or service and receiving minimal
supervision from managers who act more as facilitators than supervisors.
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Save on supervisory costs.

Requisites to Successful Employee Participation Program

▪ A profit-sharing or gainsharing plan

▪ A long-term employment relationship with good job security

▪ A concerted effort to build and maintain group cohesiveness.

▪ Protection of the individual employee’s rights.

Motivation Techniques for Diverse Workforce

Flexible Work Schedules. An alternative to this arrangement is the adaptation of the forty-hour work in four
days allowing the employee to choose a day-off.”.

Family Support Services. Day care facilities for children of employees.

Sabbaticals. The employee is allowed to go on leave for two months to one year with pay to give him time for
family, recreations, and travel.

LESSON 6: LEADING
WHAT IS LEADING?
Leading is that management function which “involves influencing others to engage in the work behaviors
necessary to reach organizational goals.”
Leading refers to the function, leadership refers to the process.

HOW LEADERS INFLUENCE OTHERS

Bases of Power

Legitimate Power. A person who occupies a higher position has legitimate power over persons in lower
positions within the organization.

Reward Power. When a person has the ability to give rewards to anybody who orders or requests, he is said
to have reward power.

Coercive Power. When a person compels another to comply with orders through threats or punishment, he
is said to possess coercive power.

Referent Power. When a person can get compliance from another because the latter would want to be
identified with the former, that person is said to have referent power.

Expert Power. This influence, called expert power, is possessed by people with great skills in technology.

THE NATURE OF LEADERSHIP

Leadership may be referred to as “the process of influencing and supporting others to work enthusiastically
toward achieving objectives.”

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Traits of Effective Leaders
Personal Drive. Persons with drive are those identified as willing to accept responsibility, possess vigor,
initiative, persistence, and health. Drive is a very important leadership trait because of the possibility of failure
in every attempt to achieve certain goals.

The Desire to Lead. Special requirement: the desire to lead.

Leaders with a desire to lead will always have a reservoir of extra efforts which can be used whenever needed.

Personal Integrity. Integrity means and includes “honesty, honor, incorruptibility, rectitude, righteousness,
uprightness, and similar virtues.”

Self-Confidence. Necessary for decisions to be continuous and precise.

A leader cannot win if he loses his nerve.

Analytical Ability. A leader with sufficient skill to determine the root cause of the problem may be able to help
the subordinate to improve his production.

The ability to analyze is one desirable trait that a leader can use to tide him over many challenging aspects of
leadership.

Knowledge of the Company, Industry or Technology. A leader who is well-informed about his company, the
industry where the company belongs, and the technology utilized by the industry, will be in a better position
to provide directions to his unit.

Charisma. When a person has sufficient personal magnetism that leads people to follow his directives, this
person is said to have charisma.

Creativity. Ronnie Millevo defines creativity as “the ability to combine existing data, experience, and
preconditions from various sources in such a way that the results will be subjectively regarded as new,
valuable, and innovative, and as a direct solution to an identified problem situation.”

Flexibility. One will adapt a different method from another person’s method.

It allows the other means of achieving goals when the prescribed manner is not appropriate.

Leadership Skills

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Technical Skills. These are skills a leader must possess to enable him to understand and make decision about
work processes, activities, and technology. Technical skills is the specialized knowledge needed to perform a
job.

Human Skills. These skills refer to the ability of a leader to deal with people

Apart from motivating, human skills include coaching, communicating, morale building, training and
development, help and supportiveness, and delegating.

Conceptual Skills. These skills refer t “the ability to think in abstract terms, to see how parts fit together to
form the whole.”

BEHAVIORAL APPROACHES TO LEADERSHIP STYLES

There are several approaches used in classifying leadership styles. They are as follows:

1. According to the ways leaders approach people to motivate them.

2. According to the way the leader used power.

3. According to the leader’s orientation towards task and people.

Ways Leaders Approach People

There are two ways, a leader may approach people to motivate them. They are: (1) positive leadership and (2)
negative leadership.

Ways Leaders Uses Power

Autocratic Leaders. Leaders who make decisions themselves, without consulting subordinates are called
autocratic leaders.

The autocratic style is effective in emergencies and when absolute followership is needed.

The disadvantages of autocratic leadership is that the leader “receives little, if any, information and ideas from
his people as inputs into his decision-making.”

Participative Leaders. When a leader openly invites his subordinates to participate or share in decisions, policy-
making and operation methods, he is said to be a participative leader.

The advantage of participative leadership u=is that it generates a lot of good ideas.

The disadvantage of participative leadership is that it is time-consuming and frustrating to people who prefer
to see quick decision reached.

Free-Rein Leaders. Leaders who set objectives and allow employees or subordinates relative freedom to do
whatever it takes to accomplish these objectives.

If free-rein leadership fits the situation, there is full managerial delegation resulting to optimum utilization of
time and resources.

The weakness of free-rein leadership is that there is very little managerial control and a high degree of risk.

Leaders Orientation Toward Tasks and People

Employee Orientation. A leader is said to be employee-oriented when he considers employees as human

beings of “intrinsic importance and with individual and personal need” to satisfy.

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Task Orientation. A leader I said to be task-oriented if he places stress on production and the technical aspects
of the job

CONTINGENCY APPROACHED TO LEADERSHIP STYLE

Fiedler’s Contingency Model

According to Fed Fiedler, “leadership is effective when the leader’s style is appropriate to the situation.” The
situational characteristics is determined by three principal factors:

1. The relations between leaders and followers

2. The structure of the task

3. The power inherent in the leader’s position.

If the situation does not fit the leader:

1. Change the leader’s trait or behaviors.

2. Select leaders who have the traits or behaviors fitting the situation.

3. Move leaders around in the organization until they are in positions that fit them.

4. Change the situation.

Hersey and Blanchard Situational Leadership Model

Blanchard and others elaborated on the leadership styles appropriate for the various maturity level of
subordinates. They are as follows:

DEVELOPMENT STAGE RECOMMENDED STYLE

1. Low ability + High willingness Style 1 – DIRECTING: structure, control and supervise
2. Low ability + Low willingness Style 2 – COCAHING: direct and support
3. High ability + Low willingness Style 3 – SUPPORTING: praise, listen and facilitate
4. High ability + High willingness Style 4 – DELEGATING: turn over responsibility for day-to-day
decision-making

Path-Goal Model of Leadership

The path-goal model of leadership espoused by Robert J. house and Terence R. Mitchell, stipulate that
leadership can be made effective because leaders can influence subordinate’s perceptions of their work
goals, personal goals, and paths to goal attainment.

By using the path-goal model, it is assumed that effective leaders can enhance subordinate motivation by:

▪ Clarifying the subordinate’s perception of work goals,

▪ Linking meaningful rewards with goal attainment

▪ Explaining how goals and desired rewards can be achieved

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Leadership Styles. The leadership styles which may be used by path-goal proponents are as follows:

1. Directive leadership – where the leader focuses on clear task assignments, standards of successful
performance, and work schedules.

2. Supportive leadership – where subordinates are treated as equals in a friendly manner while striving
to improve their well-being.

3. Participative leadership –consults with subordinates to seek their suggestions when making decisions.

4. Achievement-oriented leadership – set challenging goals, emphasize excellence, and seek continuous
improvement while maintaining a high degree of confidence

Vroom’s Decision-Making Model

Vroom’s model of leadership is one that prescribes the proper leadership style for various situations, focusing
on the appropriate degrees of delegation of decision-making authority.

MANAGEMENT AND LEADERSHIP

Leadership and Management must go hand in hand. They are not the same thing but they are necessarily
linked, and complementary.

Manager’s job is to plan, organize, and control. Leader’s job is to inspire and motivate.

Any effort to separate the two is likely to cause more problems than it solves.

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LESSON 7: CONTROLLING
WHAT IS CONTROLLING?

Controlling refers to the “process of ascertaining whether organizational objectives have been achieved; if
not, why not; and determining what activities should then be taken to achieve objectives better in the future.”
Controlling completes the cycle of management functions.

IMPORTANCE OF CONTROLLING

When controlling is properly implemented, it will help the organization achieve its goal in the most efficient
and effective manner possible.

Proper control measures minimize the ill effects of such negative occurrences.

Example:

If the requires standard daily output for individual workers is 100 pieces, all workers who do not produce the
requirements are given sufficient time to improve; if no improvements are forth-coming, they are asked to
resign.

STEPS IN THE CONTROL PROCESS

Establishing Performance Objectives and Standards

▪ Sales targets

▪ Production targets

▪ Worker attendance

▪ Safety record

▪ Supplies used

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Measuring Actual Performance

There is a need to measure actual performance so that when shortcomings occur, adjustments could be
made. The adjustments will depend on the actual findings.

annual growth rate, market share approach and position in the industry.

Comparing Actual Performance to Objectives and Standards

Actual performance vs target.

Actual production output vs target output.

Example:

A construction firm entered into a contract with the government to construct a 100 kilometer road within
then months. It would be, then, reasonable for management to expect at least 10 kilometers to be
constructed every month. As such, this must be verified every month, or if possible, every week.

Taking Necessary Action

The purpose of comparing actual performance with the desired result is to provide management with the
opportunity to take corrective action when necessary.

Based on previous example, if 15 km were completed in two months:

▪ Hire additional personnel

▪ Use more equipment

▪ Require overtime

TYPES OF CONTROL

Feedforward Control

When management anticipates problems and prevents their occurrence, the type of control measure
undertaken is called feedforward control. This type of control provides the assurance that the required
human and nonhuman resources are in place before operations begin.

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Concurrent Control

When operations are already ongoing and activities to detect variances are made, concurrent control is said
to be undertaken. It is always possible that deviations from standards will happen in the production process.
When such deviations occur, adjustments are made to ensure compliance with requirements.

Feedback Control

When information is gathered about a completed activity, and in order that evaluation and steps for
improvement are derived, feedback control is undertaken.

Feedback control validates objectives and standards..

COMPONENTS OF ORGANIZATIONAL CONTROL SYSTEMS

Strategic Plans

A strategic plan provides the basic control mechanism for the organization. When there are indications that
activities do not facilitate the accomplishment of strategic goals, these activities are either set aside, modified
or expanded.

The Long-Range Financial Plans

The planning horizon differs from company to company.

Engineering firms will require longer term financial plans. This is because of the long lead times needed for
capital projects.

The financial plan recommends a direction for financial activities.

The Operating Budget

An operating budget indicates the expenditures, revenues, or profits planned for some future period
regarding operations. The figures appearing in the budget are used as standard measurements for
performance.

Performance Appraisals

Performance appraisal measures employee performance. As such, it provides employees with a guide on how
to do their jobs better in the future. Performance appraisals also function as effective checks on new policies
and programs.

Statistical Reports

▪ Labor efficiency rates

▪ Quality control rejects
▪ Accounts receivable
▪ Accounts payable
▪ Sales reports
▪ Accidents reports
▪ Power consumption report

Policies and Procedures

Policies refer to “the framework within which the objectives must be pursued.”

Procedure is “a plan that describes the exact series of actions to be taken in a given situation.”

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IDENTIFYING CONTROL PROBLEMS

Executive Reality Check

Exposes Managers to certain realities.

Comprehensive Internal Audit

An internal audit is one undertaken to determine the efficiency and effectivity of the activities of an
organization.

A comprehensive internal audit aims to detect dysfunctions in the organization before they bring bigger
troubles to management.

Symptoms of Inadequate Control

Common symptoms as follows:

▪ An unexplained decline in revenues and profits

▪ A degradation of service (customer complaints)
▪ Employee dissatisfaction (complaints, grievances, turnover)
▪ Cash shortages caused by bloated inventories or delinquent accounts receivable.
▪ Idle facilities or personnel
▪ Disorganized operations (work flow bottlenecks, excessive paperwork).
▪ Excessive costs.
▪ Evidence of waste and inefficiency (scrap, rework).

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