TM Organization - Management

ORGANIZATION
AND MANAGEMENT
TEACHER’S MANUAL
• Helena Ma. F. Cabrera, PhD

• Anthony DC Altarejos, PhD
• Riaz Benjamin
Authors
• Clarence Darro B. Del Castillo

Editor
i
Department of Education • Republic of the Philippines
Organization and Management
Teacher’s Manual for Senior High School
ISBN 978-971-07-3861-8
Copyright © 2016 by Vibal Group Inc. and Helen Ma. F. Cabrera, Anthony DC.
Altarejos, and Riaz Benjamin.
All rights reserved. No part of this book may be reproduced or transmitted in

any form or by any means—electronic or mechanical, including photocopying,
recording, or any information storage and retrieval system without permission
in writing from the publisher and authors.
Published by Vibal Group, Inc. with main office at 1253 Gregorio Araneta
Avenue, Quezon City, Philippines.
Regional Offices: 0290 Nivel Hills, Lahug, Cebu City, and Kalamansi St. cor.
1st Ave., Juna Subdivision, Matina , Davao City.
Editors: Clarence Darro B. del Castillo
Reviewers: Wilson T. Ojales and Gregorio R. Sismondo
Printed in the Philippines by:_________________________________
ii
Preface
T
his set of textbook and teacher’s manual for Organization
and Management is about the management and managers of
organizations. All organizations—no matter the kind, size, or
location—need good managers in order to successfully achieve their
organizational goals and objectives. As future managers, students
must realize that managers have to deal with the ever-changing world,
hence, management styles must also be dynamic in order to adapt to
these inevitable changes. This course, Organization and Management,
and this textbook reflect those changes and will help students become
ideal managers who will be ready to face the world’s varying challenges.
This management course and this textbook is described as an

introduction to the realm of management, covering many topics that
are discussed quickly—without delving too deeply into each topic—to
provide the basic information that could guide your student to succeed
in their future management tasks. The authors of this textbook and
you as a teacher act as leaders and partners that help students under-
stand this preparatory course, helping them become successful future
managers of organizations.
What is expected from students of this course? They are expected

to competently fulfill their class requirements, read and understand
the contents of this textbook, to realize the importance of the topics
discussed, and to apply the simple management problems presented
in this textbook in real-life situations.
Finally, encourage students to make full use of the learning expe-

riences they will acquire from the contents of this textbook, from class
discussions and from assignments done, as these will strongly influence
the kind of managers they will become.
iii
FEATURES
of the BOOK
Chapter Opener
Introduces the chapter and
presents the learning objectives
for the chapter.
Lesson Enders:
Fast Learning Review
Presents questions to assess the
students’ understanding of the
key concepts in the lesson.
Exercises
Gives suggested activities
and presents situations that
engage the different skills of the
students and aim to help them
demonstrate their ability to
relate these concepts with real-
life organizational practice.
iv
Lesson Opener
Introduces the lesson proper.
Definition of Terms
Presents the definition of important concepts
or terms found in the lesson.
Chapter Ender:
Integration
Reinforces students’ learnings
on how these are linked to real-
life situations by encouraging
them to share what they
have realized and to commit
by applying what they have
learned.
v
K to 12 BASIC EDUCATION CURRICULUM
Senior High School – Accountancy, Business
and Management (ABM) Specialized Subject
Page
Chapter Learning Competencies
TX TM
Chapter 1 Nature and Concept 1. discuss the meaning and functions of 2-11 2
of Management management (ABM_AOM11-Ia-b-1)
2. explain the various types of management
theories (ABM_AOM11-Ia-b-2)
3. explain the functions, roles, and skills of a
manager (ABM_AOM11-Ia-b-3)
Chapter 2 The Firm and its 4. identify various forces/elements of the firm’s 12-25 8
Environment environment (ABM_AOM11-Ic-d-4)
5. summarize these forces using the PEST and
SWOT analyses (ABM_AOM11-Ic-d-5)
6. describe the local and international business
environment of a firm (ABM_AOM11-Ic-d-6)
7. explain the role of business in relation to the
economy (ABM_AOM11-Ic-d-7)
8. discuss the different phases of economic
development (ABM_AOM11-Ic-d-8)
9. differentiate the various forms of business
organizations (ABM_AOM11-Ic-d-9)
Chapter 3 Planning 10. discuss the nature of planning (ABM_AOM11- 26-37 14

Ie-g-10)
11. compare and contrast the different types of
plans (ABM_AOM11-Ie-g-11)
12. describe planning at different levels in the
firm (ABM_AOM11-Ie-g-12)
13. apply appropriate planning techniques and
tools (ABM_AOM11-Ie-g-13)
14. formulate a decision from several alternatives
(ABM_AOM11-Ie-g-14)
Chapter 4 Organizing 15. discuss the nature of organizations (ABM_ 38-50 18

AOM11-Ih-j-15)
16. distinguish the various types of organization
structures (ABM_AOM11-Ih-j-16)
vi
17. apply organization theories in solving busi-
ness cases. (ABM_AOM11-Ih-j-17)
18. identify the different elements of delegation
(ABM_AOM11-Ih-j-18)
19. differentiate formal from informal organization
(ABM_AOM11-Ih-j-19)
51-75 22
Chapter 5 Staffing 20. discuss the nature of staffing (ABM_AOM11-
IIa-b-20)
21. explain the steps in the recruitment and se-
lection process
22. recognize the different training programs
(ABM_AOM11-IIa-b-22)
23. identify the policy guidelines on compen-
sation/wages and performance evaluation/
appraisal (ABM_AOM11-IIa-b-23)
24. discuss the importance of employee relations
25. differentiate various employee movements
26. adopt effective rewards system (ABM_
AOM11-IIa-b-26)
Chapter 6 Leading 27. discuss the nature of directing (ABM_AOM11- 76-100 29

IIc-e-27)
28. differentiate leading to managing (ABM_
AOM11-IIc-e-28)
29. identify the different theories of motivation
(ABM_AOM11-IIc-e-29)
30. differentiate styles of leadership (ABM_
AOM11-IIc-e-30)
31. appreciate the role of communication in
directing people within the organization
(ABM_AOM11-IIc-e-31)
32. explain the management of change and
diversity in the workplace (ABM_AOM11-
IIc-e-32)
33. recognize the interrelationship of Filipino from
foreign cultures (ABM_AOM11-IIc-e-33)
vii
Chapter 7 Controlling 34. discuss the nature of controlling (ABM_ 101-119 35
AOM11-IIf-h-34)
35. describe the link between planning and con-
trolling (ABM_AOM11-IIf-h-35)
36. distinguish control methods and systems
(ABM_AOM11-IIf-h-36)
37. apply management control in accounting
and marketing concepts and techniques
(ABM_AOM11-IIf-h-37)
38. prepare a budget plan (ABM_AOM11-
IIf-h-38)
Chapter 8 Introduction to the 39. explain the nature and role in the firm of the 120-135 42
Different Functional following functional areas of management:
Areas of Management a. Human Resource Management
b. Marketing Management
c. Operations Management
d. Financial Management
e. Material and Procurement Management
f. Office Management
g. Information & Communication Technol-
ogy Management (ABM_AOM11-IIi-39)
Chapter 9 Special Topics 40. explain how to start a small-family business. 136-147 49
in Management (ABM_AOM11-IIj-40)
41. appreciate the role of small-family business
in an improving economic status (ABM_
AOM11-IIj-41)
42. identify the business legal forms and require-
ments (ABM_AOM11-IIj-42)
viii
TABLE of
Contents
Chapter 1 Nature and Concept of Management ••••••••••••••••••••••••••••••••••••••••••• 2
Chapter 2 The Firm and its Environment••••••••••••••••••••••••••••••••••••••••••• 8
Chapter 3 Planning•••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• 14
Chapter 4 Organizing••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• 18
Chapter 5 Staffing••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• 22
Chapter 6 Leading••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• 29
Chapter 7 Controlling••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• 35
Chapter 8 Introduction to the Different Functional Areas of Management•••••••••• 42
Chapter 9 Special Topics in Management•••••••••••••••••••••••••••••••••••••••••••• 49
ix
x
ORGANIZATION
AND MANAGEMENT
TEACHER’S MANUAL
1
Chapter 1 Nature and Concept of Management, (p. 2-11)
Content Standard Performance Standard
The learners have an understanding of... The learners shall be able to...
basic concepts and theories of management. apply management theories and concepts in solving
business cases
A. Chapter Outline
1. Definition and Functions of Management
2. Evolution of Management Theories
3. Functions, Roles, and Skills of a Manager
After reading and studying this chapter, the students will be able to:
1. discuss the meaning and functions of management;
2. explain the various types of management theories;
3. explain the functions, roles, and skills of a manager; and
4. understand the basic concepts and theories of management
B. Chapter Summary/Essential Ideas:

1. Management is the process of coordinating and overseeing the work performance of individuals
working together in organizations, so that they effectively accomplish their chosen aims/goals.
2. Management functions include planning, organizing, staffing, leading, and controlling.
3. Planning is the determining of the organization’s goals, defining strategic actions to accomplish
them, developing coordination/integration activities, and allocating appropriate organizational
resources needed to achieve them.
4. Organizing is the assigning of tasks, setting apart of funds, and bringing harmonious relations
among the individuals and work groups/teams in the organization.
5. Staffing is the filling-up of the different job positions in the organization’s structure.
6. Leading is the influencing/motivating of others to do their best so that their work efforts result
in the achievement of organizational goals.
7. Controlling involves the evaluating and correcting, if necessary, of the work performance of
individuals or work groups/teams in order to make sure that they are all working towards a
common goal.
8. Evolution of Management theories involves the improvement of work management methods
from simple to more complex ones which also focus on customer satisfaction and conduct of
people at work.
9. Scientific Management Theory makes use of the step by step, scientific methods for finding the
single best way for doing a job.
10. General Administrative Theory concentrates on the manager’s functions and what makes up
2
good management exercise or implementation.
11. Total Quality Management (TQM) is a philosophy of management that focuses on the satisfaction
of customers, their needs and expectations.
12. Organizational Behavior Approach (OB) is the study of the conduct, demeanor or action of
people at work.
13. Top-level managers are the strategic managers who focus on long term organization concerns:
its stability, development, progress, and over-all efficiency and effectiveness.
14. Middle-level managers are tactical managers in-charge of the organization’s departments. They
formulate specific objectives and activities based on strategic goals set by top-level managers.
15. Lower-level managers are front-line or operational managers. They are responsible for the su-
pervising of the organization’s day to day activities.
16. The classification of managerial roles are interpersonal, informational and decisional or their
roles to act as leader, spokesperson, and disturbance handler/negotiator.
17. Managerial skills are conceptual, human, and technical. Conceptual skill is the ability to analyze
and solve complex problems; human skill is the ability to work well with other people; technical
skill is the ability to use one’s expertise.
C. Teaching Tips on Selected Topics

1. Exploring Students’ Prior knowledge
A diagnostic test covering the contents of this Chapter may be administered. The purpose of
this is to assess what students already know about the topics, what they know little or nothing
about, and what misconceptions they might have, if any.
2. In connection with the roles of managers in bringing managerial success in organizations, it
would be wise to bring in a discussion of Managerial Roles, Skills, and Competencies.
The following ideas will be helpful:
a. Managerial success in this ever-changing business world requires mastery of managerial
roles: interpersonal, informational, decisional.
b. Managerial success also requires, besides leadership and liaison work with their sub-
ordinates, interpersonal networking with other persons outside their organization to
accomplish their goals/objectives.
c. Managerial success starts with the learning of managerial skills and competencies,
which in turn requires the taking of complete advantage of the organization’s training
and development programs, as well as daily personal and job experiences.
d. Essential managerial skills are, in general, described as: conceptual, ability to analyze
and solve complex problems; human, the ability to work well with others; and technical,
ability to use expertise.
e. The building blocks for managerial success are the following skills: communications,
team work, self-management, leadership, critical thinking, and professionalism.
f. Managerial competency is a skill-based capability that contributes to high performance
in doing managerial work.
3
3. Selected activities on studying Managerial Success in Organization
a. Demonstration. Ask the students to use colored clays to demonstrate how managers could
get involved with teams and teamwork as: team leader/supervisor, facilitator of a team acting
as a specific task force, helpful participant in a team project, and external coach/sponsor of
a problem solving team. Correct positioning of the manager and the team members indicate
the students’ perceptions of the manager’s involvement/role in teamwork
b. Understanding the foundations for Managerial success.
Ask the students to agree or disagree with the following statements by putting a check
mark on their chosen answer. Seven Agree answers will show the students’ sufficient or
average understanding of the foundations for managerial success. Eight to nine Agree an-
swers will indicate superior understanding of the said foundations for managerial success.
Successful Managers are those who:
Agree Disagree
1. look after their self-interests first

2. inspire their subordinates to do their best in assigned
tasks
3. can craft messages that could be understood clearly by
subordinates
4. have self-discipline
5. believe in using punishment to make subordinates follow
6. work well with others
7. do not believe in due process
8. practice logical thinking before decision-making
9. always consider the “general good”
10. have the ability to listen what others seek to communicate
11. respect everyone and has the ability to maintain career
advancement
12. generally “goes the extra mile” for those around him or
her
4
a1. Illustration of a demonstration of how managers could get involved
with a team and teamwork:
b1. Agree or Disagree. Correct answers to 3b. Understanding the foundations for managerial
success.
Agree Answer: 2, 3, 4, 6, 8, 9, 10, 11, 12
Disagree Answer 1, 5, 7
D. Assessments and Scoring Rubrics

Below are Assessment tasks on page 11 of the textbook:
Task 1. Get hold of a current business magazine or any kind of printed media material available.
Name five Chief Execuive Officers (CEOs) or Presidents of known corporations whose
accomplishments are discussed in the said magazine. Describe their work as top level
managers of their respective corporations. Relate your description of their work with the
functions, roles, and skills of managers discussed in this chapter.
Task 2. Choose a partner from among your classmates. You and your partner should list down
managerial skills that both of you may have already. Compare your lists and explain to
each other why there are similarities or differences.
Scoring:
Take a look at the Answer Keys to grade the student’s performance. These will give you some
examples of famous CEOs/Presidents of their respective business and their beliefs/accomplishments.
Also, see how their beliefs/accomplishments could be related to the functions, roles, and skills of
managers discussed in this chapter by reading the next five paragraphs.
Compare the above mentioned examples with the students’ answers.
Level of
Criteria Performance Score
Performance
a. Beliefs or accomplishments of five Demonstrate all criteria Excellent 5

CEOs/Presidents related to the func-
tions, roles, and skills of managers
5
b. Beliefs or accomplishments of five Only four CEOs/Presi- Very Good 4
CEOs/Presidents related to the func- dents with their beliefs or
tions, roles, and skills of managers accomplishments related to
functions, roles, and skills
of managers.
c. Beliefs or accomplishments of five Only three CEOs/Presi- Good 3

CEOs/Presidents related to the func- dents with their beliefs or
tions, roles, and skills of managers accomplishments related to
of managers.
d. Beliefs or accomplishments of five Only two CEOs/Presidents Fair 2

CEOs/Presidents related to the func- with their beliefs or ac-
tions, roles, and skills of managers complishments related to
of managers.
e. Beliefs or accomplishments of five Only one CEO/President Poor 1

CEOs/Presidents related to the func- with his/ her beliefs or ac-
tions, roles, and skills of managers complishments related to
of managers.
E. Answer Keys:
Task 1
According to the book Go Negosyo (2006) the following CEOs/Presidents gave business lessons
that are worth remembering.
1. CEO/President – Henry Sy – SM Investments Corporation
Mr. Henry Sy knew the importance of planning, setting a vision, practicing proper deci-
sion-making, and using his conceptual skills, regarding the overcoming of obstacles to the smooth
running of their business. His belief in continuous non-stop growing showed that the honing or
developing of technical skills was also important to him.
Tried to overcome obstacles and did not give up easily,
Believed that one must not stop growing
2. President – Tony Tan Caktiong – Jollibee Food Corporation
He believed that being big does not guarantee victory; listening to customers’ needs is im-
portant; and a good offense is sometimes the best defense. Jollibee became what it has become
now because of hard work and determination of people working towards the achievement of
their organization’s vision.
Mr. Tony Tan Caktiong practiced good leading functions by inspiring his subordinates to
6
work hard and be determined to work towards the achievement of their organization’s vision
and giving them good business values like listening to what the customers are suggesting to
them to improve their products and services. He also showed conceptual skills and good plan-
ning when he was able to define strategic actions that they could use to be able to compete with
McDonald’s, a well-known brand.
3. President/CEO – Cecilio Kwok Pedro – Lamoiyan Corporation
He believed that one can turn crisis into opportunity; it is not impossible to play against a
giant and survive even when success and bigness comes; the entrepreneurial mind must continue;
and there is no conflict practicing one’s faith and running a successful enterprises.
Mr. Cecilio Pedro’s conceptual skills enable him to think out of the box and this was shown
when he put up a business that would have as its principal rival, a giant in the dental care industry.
He made use of his human skills when he hired employees who were deaf-mutes. He showed
his technical skills when he used his expertise to produce products that could compete with the
products of his business competitors.
4. President – Margarita Flores – Cibo Inc.
She maintained that one must be hands-on and obsessive about details; holding on to one’s
initial vision is important before taking the leap of faith, one must keep on moving forward, so
competitors cannot easily catch up with one’s business.
5. CEO – Johnlu Koa – French Baker
He believed that: understanding the essence is fundamental to entrepreneurship, a network
that gives support in starting helps, enterprise mastery will ensure that the opportunity is seized
Mr. Johnlu Koa emphasized that relating well with others or exercising human skills gives
support when starting and maintaining a business. His belief in enterprise mastery was used
when he exercised his leading functions to inspire subordinates to seize business opportunities.
Ms. Gaita Flores gave importance to strategic management practices when she emphasized
that holding on to the firms initial vision before planning anything else. As a CEO leading her
subordinates, she inspired them to do their best by advocating detail orientation and continuous
growth that would inevitably result in their organization’s growth.
Task 2
Personal Managerial Skills Classmate’s Managerial Skills
Human Skills Human Skills
relating well with people; relating well with people;
communicating, leading, communicating skills only
inspiring, motivating them
Student’s Personal Managerial Human Skills are similar to Classmate’s. Both have human
skills because of similarities in age, education level and social environment. Possible explana-
tion for differences regarding leading, motivating, and inspiring skills may be due to personal
qualities and opportunities.
7
Chapter 2 The Firm and Its Environment, (p. 12-25)
the role of business in the environment, and how the analyze the various environmental forces affecting
environment affects the firm. the firm and summarize these using Strengths, Weak-
nesses, Opportunities and Threats (SWOT) Analysis
frameworks.
A. Chapter Outline
1. Environmental Forces and Environmental Scanning
2. The Local and International Business Environment of the Firm
3. Phases of Economic Development
4. Forms of Business Organizations
1. identify the various forces/elements of the firm’s environment and summarize these forces using
SWOT analysis;
2. describe the local and international business environment of a firm; and
3. explain the role of business in relation to the economy, discuss the different phases of economic
development, and differentiate the various forms of business organizations.
B. Chapter Summary/Essential Ideas

1. The Business Environment may be classified into two types: the External and the Internal Busi-
ness Environment.
2. The External Business Environment refers to the forces/factors outside the organization which
may affect, either positively or negatively, the performance of the organization.
3. The Internal Business Environment refers to the forces/factors within the organization which
may affect, either positively or negatively, the performance of the organization.
4. The General External Business Environment includes the Economic, Socio-Cultural, Politi-
co-legal, Demographic, Technological, World and Ecological situations; and all these must be
considered as managers plan, organize, staff, lead and control their respective organizations.
5. The Specific External Business Environment includes: stakeholders, customers, pressure groups,
investors, and employees.
6. The Internal Business Environment includes the organizations’ resources, research and devel-
opment, production, procurement of supplies, and products and services offered.
7. Environment Scanning involves the seeking for and sorting through data about the organization’s
environment.
8
8. Components of Environmental Scanning are the development of a competitive mind-set, con-
sidering of future business scenarios, business prediction/forecasting, and benchmarking.
9. Benchmarking is the process of measuring or comparing one’s own products, services, and prac-
tices with those of the recognized industry leaders in order to identify areas for improvement.
10. Cultural Intelligence is an individual’s ability to favorably receive and adjust to an unfamiliar
way of doing things.
11. Monochronic culture is a culture where people tend to do one thing at a time.
12. Polychronic culture is a culture that is more flexible on time and it is used to accomplish many
different things at one time.
13. Economic development is a total process which includes not only economic growth or the increase
in the amount of goods and services produced by the country’s economy but also consider the
social, political, cultural, and spiritual aspects of the country’s growth.
14. Economic development phases/stages in a particular country includes economic growth, improve-
ment of human development index, availability of benefits provided by science and technology,
societal improvement of the opportunities, and general welfare of its members.
15. Human development index is a measure of a country’s socio-economic development based on
data regarding life expectancy at birth, educational attainment, literacy, and adjusted real income
per capita.
16. A business organization is a collection of people working together to achieve a common pur-
pose related to their organization’s mission, vision, goals and objectives, and sharing a common
organizational culture.
17. Organizational culture is the set of beliefs and values shared by organization members and which
guide them as they work together to achieve their common purpose.
18. Simple business organization is an organization with few departments, centralized authority
with a wide span of control, and with few formal rules and regulations.
19. Functional business organizations group together people with similar or related duties, practices
delegation of authority to functional managers like the personnel managers, sales managers or
financial managers but allow CEOs to retain authority for strategic decisions.
20. Divisional business organizations are made up of semi-autonomous, separate business units,
with a division head responsible for his or her unit’s performance.
21. Profit business organizations are organizations designed for the purpose of achieving their goals
and achieving stability through income generation and profit-making.
22. Non-profit organizations are organizations designed to give service to cli-
ents without expecting monetary gains or financial benefits for their
endeavors.
23. Open/Flexible business organizations are formed to meet today’s changing work environment.
They include team structures, matrix business organizations, project business structures, bound-
aryless business organizations, and virtual business organizations.
9
1. Exploring Students’ Prior Knowledge
A diagnostic test covering the contents of this Chapter may be administered. The purpose of
2. In connection with the study of the firm’s environment, it is suggested to bring in the topic
“Competitive Environment” that can affect strategic business decisions that managers have
to make.
The following ideas will be helpful in discussing the topic:
a. The competitive environment refers to specific groups of people with which the com-
pany/firm interacts.
b. The company’s customers, rival firms, new entrants, substitutes, and suppliers make-up
the firm’s competitive environment forces.
c. The above-mentioned competitive environment forces have the power to influence the
nature of the competition among rival companies so the firm must learn to adapt to or
influence also the said competition.
d. The less power each of these competitive environment forces have, the more profitable
the industry will be.
e. The firm’s managers must be able to identify the varying needs of its customers and
focus on creating customer value.
f. The firm must also know the answers to the questions “who are our rival companies?”
“who are the new entrants to the industry?” “what are their different or new and better
ways of providing value to customers?”
g. The firm must realize that the substitutes are the biggest opportunity or threat in an
industry and this implies that they may have to think of new strategies to compete with
them (For example, landline phones have cell phones as substitutes).
h. The firm must also realize the importance of their suppliers that provide them with major
inputs: raw materials for manufacturing of goods, money from investors and financial
institutions, and people who supply them with new ideas and help in the production of
goods and services that they offer.
3. Selected activities on studying the topic “Competitive Environment”
a. Demonstration. Ask the students to use colored pencils to show the diagrammatic
framework of the firm and its competitive environment forces.
b. Students will find it interesting to identify and list down the customers, rival firms, new
entrants, substitutes, and suppliers of Philippine Airlines (PAL) or any known Philippine
Company listed among the top 100 Philippine Corporations.
a1. Demonstration of Diagrammatic Framework of the Firm/Company and its Competitive
Environment Forces
b1. Identification/Listing down of PAL’s Competitive Environment Forces
10
Customers Rival Firms New Entrants
Businessmen Cebu Pacific Air Asia-Zest
Professionals Foreign Airlines Tiger Airlines
Overseas Filipi- Servicing the same routes: Etihad
no Workers (OFW) – KLM Lionair Inc.
People from all walks of life – Air Macau Vietnam Airlines
and ages – Cathay Pacific
– China Airlines
– Japan Airlines
Suppliers Substitutes
Aircraft Maintenance and Service Shipping Lines for Domestic/International
Aircraft Dealers/Distributors Magsaysay Lines Inc.
Airlines Catering Services Sulpicio Lines Inc.
Travel Agencies Bus Companies for Domestic Travel
Train Companies for Domestic Travel
11
D. Assessment and Scoring
Below are Assessment Tasks to measure the students’ understanding of the topics discussed in
Chapter 2 of the textbook.
Task 1. Which cultural dimensions are practiced in the Philippines? Put a check mark 4 or
an 8 mark beside the cultural dimension to express your affirmative or negative response.
Cultural dimension 4 or 8
a. Low power distance _________
b. High power distance _________
c. Low uncertainty avoidance _________
d. High uncertainty avoidance _________
e. Individualism _________
f. Collectivism _________
g. Masculinity _________
h. Femininity _________
i. Short term thinking _________
j. Long term thinking _________
Task 2. Fill in the blanks with the correct answer. Answer may be one of the following: Simple,
Functional, Divisional, Profit, Non-Profit, Open/Flexible, Boundaryless or Virtual Business
Organization.
(1) _____________ Business organizations maintain their stability through income gen-
eration.
(2) _____________ Business organizations made up of semi-autonomous units.
(3) _____________ Business organizations formed to meet today’s changing work
environment.
(4) _____________ Business Organization is easy to manage because it has few depart-
ments, centralized authority, and few rules and regulations.
(5) _____________ Business organization that groups together those with similar or
related specialized duties.
(6) _____________ Business organization that assigns experts belonging to different
departments to work together on one or more projects.
(7) _____________ Business organization whose design is flexible and unstructured.
(8) _____________ Business Organization whose members are physically dispersed and
who, oftentimes, communicate electronically through computers.
Note: The teacher may provide additional tasks that may require higher-level thinking (e.g.
multiple choice).
12
E. Answer Keys:
Task 1. 4 — for b, d, f, h, j
8 — for a, c, e, g, i
Task 2. (1) Profit

(2) Divisional
(3) Open/Flexible
(4) Simple
(5) Functional
(6) Matrix
(7) Boundaryless
(8) Virtual
13
Chapter 3 Planning, (p. 26-37)
the importance of planning concepts in business formulate effective plans for a specific business
success. endeavor.
A. Chapter Outline
1. Definition and Nature of Planning
2. Types of Plans
3. Planning at Different Levels in the Firm
4. Planning Techniques and Tools
5. Applications of Planning Techniques and Tools
6. Decision Making
1. discuss the nature of planning;
2. compare and contrast the different types of plans;
3. describe planning at different levels of the firm;
4. apply appropriate planning techniques and tools; and
5. formulate a decision from several alternatives.

1. Planning is a process that involves the setting of the organization’s goals, establishing strategies
for accomplishing those goals and developing plans of actions that managers intend to use to
achieve said organizational goals.
2. Planning is important because: it provides direction to all of the organization’s human resources:
managers and employees; and it reduces uncertainty and minimizes wastes of time, effort, and
resources.
3. Goals are the targets that management desires to reach while plans are the means or actions
which management intends to use to achieve the said goals/targets.
4. Plans are best described in terms of their comprehensiveness, time frame, specificity, and fre-
quency of use.
5. Planning types includes the following: strategic, tactical, operational, long term, short term,
directional, specific, single use, and standing plans.
6. Planning steps include: defining of goals/objectives determining where you stand in relation to
set goals/objectives, developing premise regarding future conditions, analyzing and choosing
action alternatives, implementing the plan, evaluating results, and taking corrective action, if
needed.
14
7. Planning is done at different levels in the firm, but all these must be integrated and directed
towards the achievement of the organization’s goals.
8. CEOs/Presidents must see to it that all communication lines in their organization are open to
ensure excellent dissemination of information to all levels.
9. Effective planning must make use of the following: forecasting, contingency factors that make
use of alternative courses of action when things go wrong; scenario planning that consider future
states of affair; benchmarking which compare company practices and technologies with those of
other companies considered as industry leaders; and participatory planning which includes, in
all planning steps, all the people affected by the plan and those who will be asked to implement
them.
10. Decision making is the choosing of the appropriate alternative.
11. Steps involved in decision making process are: a) identification of the problem, b) identification
of the decision criteria, c) allocation of weights to the criteria, d) development of alternatives,
e) analysis of alternatives, f) selection of an alternative, g) implementation of the alternative
chosen, and h) evaluation of decision effectiveness
12. Decisions may be done under a) certainty conditions and b) uncertainty/risk conditions.
13. In risk or uncertainty conditions, the decision maker is compelled to do estimates regarding the
possible occurrence of certain outcomes that may affect his or her chosen solution.

A diagnostic test covering the content of this chapter may be administered. This is to assess
what the students already know about the topic, what they know little or nothing about, and
what misconceptions they might have, if any.
2. In connection with the role of planning in Management, it is suggested to bring in the topic
Strategic Planning. The following ideas will be helpful in discussing the topic:
a. Strategic Planning determines long-term objectives of an enterprise done by their CEOs or
Presidents.
b. Without strategic plans or clear long-term objectives, no firm managers can perform effec-
tively and efficiently.
c. Short term plans done by subordinate managers must be made with reference to long-range
plans.
d. Short-term plans must contribute to the achievement of the long term plans.
e. Responsible middle-level and lower-level managers should review and revise their decisions
continually in order to determine if these contribute to long-term plans.
f. Middle-level, lower-level managers should be regularly briefed on long-term plans to make
sure that they will make decisions consistent with these said long-term plans.
3. Selected activities on studying the topic “Strategic Planning”
a. Demonstration. Ask the students to use colored pencil or ballpen to show, by using arrows,
the relationship of Strategic Planning to Tactical and Operational Planning; also indicate,
beside each plan, the managers tasked to prepare these said plans.
15
b. Students will find it easier to understand “Strategic Planning” if they are asked to state,
at least one long-term plan for a hotel service business with corresponding tactical and
operational plans to achieve them.
a1.
Strategic Plan (CEO or President)
Tactical Plan (Department Head)
Operational Plan (Frontline Manager)
b1.
Suggested Hotel Service Strategic Plan: To expand Hotel Service
to different parts
of the Philippines in seven years
Operational Plan: Financial Department

To allocate 30% of annual hotel income
for planned expansion of hotel service
Tactical Plan: Frontline Managers for Training and Development

to have Continuing Training Development
Programs for Hotel Personnel to ensure excellent
Hotel services which will ensure good hotel income
16
Chapter 3 of the textbook
Task 1. Arrangement in Chronological Order

Arrange the Steps of the Decision-making Process according to its chronological order. Number
the first step 1 and the last step 8.
________ Development of Alternatives
________ Evaluation of Decision Effectiveness
________ Identification of Decision Criteria
________ Identification of a Problem
________ Analysis of Alternatives
________ Implementation of Alternative Chosen
________ Allocation of Weights to the Criteria
________ Selection of Alternative
Task 2. Matching
Match the items in Column 1 to items in Column 2. Answer in letters corresponding to the
correct answer.
Column 1 Column 2
_____ cover one year or less a. Directional plans
_____ apply to a particular unit area only b. Standing plans
_____ refers to completeness of planning coverage c. Long-term plans
_____ clearly stated in understandable language d. Short-term plans
_____ states organization’s over-all goals e. Specific plans
_____ stated once only f. Strategic plans
_____ number of months or years covered g. Operational plans
_____ gives general guidelines h. Single-use plans
_____ on-going plans i. Comprehensiveness
_____ go beyond three years j. Time frame
E. Answer Keys:
Task 1. 4 8 2 1 5 7 3 6
Task 2. d g i e f h j a b c
17
Chapter 4 O
rganizing, (p. 38-50)
the significance of organization structures for effective design an appropriate organization structure for a spe-
business management. cific business.
A. Chapter Outline
1. Nature of Organizations
2. Types of Organization Structures
3. Organization Theories and Applications
4. Delegation
5. Formal and Informal Organizations
1. discuss the nature of organizations;
2. distinguish the various types of organization structures;
3. apply organization theories in solving business cases;
4. identify the different elements of delegation; and
5. differentiate formal from informal organizations.

1. Organizing is a management function which involves assigning of tasks, allocating of resources,
and coordinating work activities in order to achieve a common purpose.
2. An organization chart shows the different job positions in the firm and its hierarchical arrange-
ment for dividing labor and providing a picture of the reporting structure.
3. Specialization is the process in which different individuals and work units perform different
tasks.
4. Integration is another process in the organization’s internal environment which involves the
working together and coordination of its different work units.
18
5. Organization structure is a system made up of tasks to be accomplished, work movements from
one work level to other work levels in the system, reporting relationships, and communication
passageways that unite together the work of different individual persons and groups. Its types
include vertical structure, horizontal structure and network structure.
6. Organization structure design may be: traditional or modern. Traditional design focuses on
performance improvement of people in firms while the modern design focuses on team work,
flexibility, and problem solving.
7. Delegation is the assigning of new or additional task to a subordinate; or getting work done
through others by giving them the right to make decisions and take action.
8. Delegation may have advantages and disadvantages.
9. Formal organizations are formed by the company owner/manager to help the company accom-
plish its goals.
10. Informal organizations exist because of friendship and common interests of some organization
members which may also help minimize potential problems in the organization.

A diagnostic test covering the contents of this Chapter may be administered. The purpose
is to assess what students already know about the topic, what they know little or nothing about
and what misconceptions they might have, if any.
2. In connection with the role of organizing in achieving the vision, mission, goals and objec-
tives of the company, it would be wise to bring in the topic: “The Influence of the Leader in
Organizing.”
a. Organizational culture is the shared behavior, beliefs, and values which members of the
company have in common.
b. Organizational culture is fairly stable and does not change fast and is important in organizing.
c. Company slogans give a general idea of what the company stands for.
d. Managers, especially those in the top level, create the climate for the company.
e. The values of managers influence the direction of company activities, guided by the com-
pany’s mission, vision, goals, and objectives.
f. Value-driven company leaders serve as the role models, set the standards for performance,
motivate employees, and make the external environment know what their company stands
for.
g. The leader’s clear emphasis of their company vision and common purpose brings commit-
ment and loyalty of human resources to the organization.
3. Selected activities:
a. Demonstration. Ask the students to give the slogans of any three organizations/companies
a.1 Examples: SM – “We’ve got it all”
PS Bank – “Simple lang. Maaasahan”
Fujidenzo – “Quality Above All”
19
b. Students will find role-playing as company or organization leaders organizing activities
and influencing a positive organizational culture, interesting. Ask them to act like an ideal
organization leader trying to organize and influence their subordinates to work towards the
achievement of their organization’s or company’s vision, mission, goals, and objectives
by formulating their own organization vision, mission statements, slogan and values and
planning means to disseminate these to them.
b1. Examples:
Name of Organization: Council of Medical Specialists
Vision: An internationally-recognized organization of Medical Specialists dedicated to
ensuring the highest standard of care for patients
Mission Statements:
• Provide opportunities for training, continuing medical education, and research
• Establish and maintain strategic local and international linkages
• Implement and maintain innovative strategies geared towards excellent know-
how in medical care
Slogan: “Global Quality Medical Care”
Values: Commitment to Medical Practice
Concern for Patients
Means for Disseminating Vision, Mission, Slogan, and Values:
1. Organizationa Posters with their Vision
2. Continuing Medical Education and Research for Members
3. Local and International Seminars for Medical Practitioners
D. Assessments and Scoring

Below are assessment tasks based on the topics discussed in Chapter 4.
Task 1. Identification. Identify if the following Organizational Structure Design is Traditional
(T) or Modern (M).
_______ a. Design that groups together similar or related specialties
_______ b. It is made up of work teams.
_______ c. Design where employees continuously work on a project
_______ d. Focus on performance improvement of people
_______ e. Focus on flexibility and problem solving
_______ f. Design made up of separate units where parent corporation acts as overseer
_______ g. Boundaryless
_______ h. Big number of subordinates reporting to a centralized authority figure
_______ i. Matrix Design
_______ j. Design with few departments, wide spans of control
20
Task 2. Arrangement in Chronological Order: Arrange the following Delegation steps in
chronological order. Number the first step 1, and the last step 8.
_______ a. Granting to the assigned person the authority to act
_______ b. Assigning of responsibility
_______ c. Checking the task accomplishment progress
_______ d. Defining the goal clearly
_______ e. Giving the assigned person enough time and resources to do the task
_______ f. Making sure that the task objectives has been achieved
_______ g. Asking person assigned about his planned approaches
_______ h. Selecting the person who will be given the task
Scoring: Give one point for each correct answer in Task 1 and Task 2.

Correct Answers
For Task 1: 9 – 10 = Excellent knowledge of the topic Organizational Structure Design
7 – 8 = Very Good
6 = Good
4 – 5 = Fair
1 – 3 = Poor

Correct Answers
For Task 2: 8 = Excellent knowledge of the topic Organization Structure Design
6 – 7 = Very Good
5 = Good
3 – 4 = Fair
1 – 2 = Poor
E. Answer Keys:
Task 1: Identification Task 2: Arrangement in Chronological Order
_T_ a. 5. a
_M_ b. 3. b
_M_ c. 7. c
_T_ d. 1. d
_M_ e. 6. e
_T_ f. 8. f
_M_ g. 4. g
_T_ h. 2. h
_M_ I.
_T_ J.
21
Chapter 5 Staffing, (p. 51-75)
the process of recruiting, selecting, and training conduct and prepare job analysis.
employees.
A. Chapter Outline
1. Recruitment
2. Selection
3. Training and Development
4. Compensation/Wages and Performance Evaluation
5. Employee Relations
6. Employee Movements
7. Rewards System
1. discuss the nature of staffing;
2. explain the steps in the recruitment and selection process;
3. recognize the different training programs;
4. identify the policy guidelines on compensation and wages and performance evaluation or
appraisal;
5. discuss the importance of employee relations;
6. differentiate various employee movements; and
7. realize the importance of adopting an effective rewards system.

1. Staffing is the filling up of all organizational job positions and keeping these positions filled
with the persons who are most qualified to do the job.
2. Systems Approach to Staffing is the step by step way of filling-up job positions in organizations.
3. Variables to be considered in the Systems Approach to Staffing are: numbers and kinds of human
resources needed, open managerial and non-managerial positions, and potential successors to
open positions among others.
22
4. Management Succession/Replacement Chart contains the names of potential successors to
managerial positions.
5. External recruitment is the recruitment of applicants for filling-up vacant positions from outside
the company.
6. Internal recruitment is the recruitment of applicants for filling-up vacant job positions within
the company.
7. External recruitment methods include advertisements, unsolicited applications, Internet recruiting,
employee referrals, executive search firms, educational institutions, professional associations,
labor unions, and public and private employment agencies.
8. Internal recruitment fills up open job positions through promotions or transfer.
9. Both external and internal recruitment have advantages and disadvantages.
10. Selection is the process of choosing individuals who have the required qualifications to fill
present and expected future job openings.
11. Selection process is quite hard as there is a difference between what individuals can do, at pres-
ent, and what they will do in the future.
12. There are several types of job interview: structured, unstructured, and one on one and panel
interview.
13. Structured interview is where the interviewer asks the applicant to answer a set of prepared
questions.
14. Unstructured interview is where the interviewer has no interview guide and may ask questions
freely.
15. One on one interview is where only one interviewer is assigned to interview the applicant.
16. Panel interview is where several interviewers or panel conduct the interview of applicants.
17. Some types of employment tests include: intelligence tests,proficiency and aptitude tests,
personality tests, and vocational tests.
18. Job design is the arranging of work tasks for individual employees/workers, work groups/teams.
19. Training is learning given by organizations to its employees that concentrates on short term job
performance and acquisition or improvement of job-related skills.
20. Development is the learning given by organizations to its employees that is geared towards the
individual’s acquiring and widening of his/her skills in preparation for future job appointments
and other responsibilities.
21. Both training and development are very essential to the success of today’s organizations.
22. The conducting of training needs assessment must be done before the designing, implementation,
and evaluation of a training program.
23. Developing employees is a part of the organization’s career management program and its goal
is the matching of the individual’s development needs with the needs of the organization.
24. The different learning principles include: modeling, feedback and reinforcement, massed vs.
distributed learning, goal setting, taking into account individual differences, active practice, and
repetition.
25. Compensation/Wages are all forms of pay given by employees to their employees for the
performance of their jobs.
26. Performance Evaluation is a process done, usually once a year, to measure the work’s perfor-
23
mance.
27. Excellent or Poor Performance Evaluation rating determine the compensation given to workers/
employees, after considering other internal and external factors such as actual worth of the job,
compensation strategy of the company, cost of living, labor market conditions, and area wage
rates, among others.
28. Compensation Types: direct, indirect, and non-financial; direct refers to salaries, incentive pays,
bonuses and commissions; indirect includes: benefits given by employers such as travel, educa-
tional, health benefits, and others; non-financial includes recognition programs, being assigned
to do rewarding jobs, enjoying management support, ideal work environment, and convenient
work hours.
29. Wage experts, now, prepare compensation packages that create value for both the organization
and its employees.
30. Equity Theory is a motivation theory which focuses on employees’ response to the pay that
they receive, to the feeling that they receive salaries commensurate to their efforts exerted in
the performance of their job.
31. Expectancy Theory is another motivation theory which predicts that employees work well be-
cause of the attractiveness of the rewards or benefits that they may possibly receive from a job
assignment.
32. Compensation bases include piecework, hourly, daily, weekly, and monthly basis.
33. Administrative purpose of performance evaluation is used as basis for decisions related to com-
pensation, promotions, transfers and terminations.
34. Development purpose of performance evaluation provides information about employees’ per-
formance, and strengths and weaknesses that may be used as basis for deciding their training
and development needs.
35. Performance appraisal methods includes trait methods, graphic rating scales, forced choice
method, behaviorally anchored rating scale (BARS), and behavior observation scale (BOS).
36. Performance evaluation may also fail due to: inadequate orientation and bias of evaluators,
incomplete cooperation of evaluatees, vague language used in questionnaire, etc.
37. Employee relations is defined as the workers/employees being connected or related to each other
as they do their assigned tasks for the organization to which they belong.
38. Employees are social beings who need connections or relations with other beings, who are
capable of giving them social support as they do their assigned tasks in organizations.
39. Social support refers to: esteem, informational, and financial support.
40. There are some barriers to good employee relations such as anti-social personality, lack of trust
in others, selfish attitude, lack of good self-esteem, cultural and sub-cultural differences, and
not a team player among others.
41. Overcoming barriers to good employee relations are developing a healthy personality to over-
come negative attitudes/behavior, finding time to socialize with co-employees, developing good
communication skills, overcoming dependence on electronic gadgets, and trying to reduce
cultural and sub-cultural differences.
42. Employee movement are series of actions initiated by employee groups towards an end or spe-
cific goal.
24
43. Labor union is a formal union of employee/workers that deal with employers, as the represent-
ative of workers in their pursuit of justice and fairness, and in their fight for their collective/
common interests.
44. Employees unionize because of financial needs, unfair management practices, and social and
leadership concerns.
45. CBA stands for Collective Bargaining Agreement between Management and Labor Union.
46. Grievance procedure authorizes the labor union to represent its members in procuring a grievance
or complaint.
47. Rewards, monetary or non-monetary, are given for merit service or achievement by employers
to their employees.
48. Rewards may have a motivating effect on employees.
49. Monetary Rewards include pay/salary, benefits, incentives, executive pay, and stock options.
50. Non-monetary rewards include awards (trophy, medal, and certificate of recognition) or praise
given by superiors to their subordinates.

A diagnostic test covering the contents of this chapter may be administered. The purpose
,and what misconceptions they might have, if any.
2. In discussing how to attract a quality workforce, elaborate on the topic “Job Analysis” in the
class.
a. Humane resource planning is the process of analyzing the organization’s staffing needs
and identifying actions to fill those needs.
b. HR planning’s goal is to make sure that the most qualified people are always in place
when needed by the company.
c. The foundations of HR planning are job analysis, job description, and job specifications.
d. Job analysis studies what is done in a job and why.
e. Job description details the duties and responsibilities of a job holder, consistsing of the
following: job title, job vode, department boss/supervisor, job summary, and duties/
responsibilities.
f. Job specifications list the qualities required of a job holder.
g. HR functions that must be considered when preparing job analysis, job description and
job specifications are the following: recruitment, selection, HR planning, employee
training and development, career development, performance management, compensation,
safety and health, and labor relation.
h. Steps involved in job analysis;
1. Understand the purpose of the job analysis;
2. Understand the roles of jobs in the organization and its link to organizational
strategy;
3. Determine the tasks necessary to successfully complete the job;
25
4. Determine the skills necessary to complete tasks; involve workers and supervisors;
and
5. Generate tangible outcomes: job description, job specification.
3. Selected Activities
a. Demonstration. Students will find it interesting to make a diagram of the multifaceted nature
of job analysis. Ask them to show human resource functions that must be considered in a
job analysis, job description, and job specifications.
b. Ask the students to create job descriptions and job specifications of a job positions in a five
star hotel’s human resource department.
b.1 Demonstration of: Job Description
Job Title: Benefits Supervision
Job Code: 11-1438
Department: Human Resources Department
Direct Manager: Manager, Human Resources Department
Job Summary: Manager the benefits program of the employees of the Hotel
Duties and Responsibilities:
• Planning and directing the implementation and administration of the Hotel’s
benefits program.
• Directing the preparation and dissemination of information to employees
regarding the various benefits offered by the Hotel, such as insurance plans,
educational plans, paid vacation leaves, and hospitalization, etc.
• Evaluating the benefits program offered by the Hotel.
• Planning modifications of existing benefits program, if necessary.
• Recommending modifications to management.
• Notifying employees and labor union representatives of changes in the benefits
program, if approved by management.
• Directing performance of clerical functions such as records updating, and
processing of needed documents.
Demonstration of: Job Specification
• Specialized knowledge/skills: General knowledge of policies and practices
involved in Human Resource Management
• Education/Experience: BSBA major in Human Resource Management or any
4 year business degree at least 2-3 years experience in analysis, design, and
administration of benefits
• Work Environment: Fast-paced general office environment
• Physical Requirement: Physically fit for 8-hour per day regular office work, 5
days per week
26
Task 1. Fill in the blanks. Write the correct answers on the blanks provided in the given statements.
1. The foundations of any labor-management relationship is ______________, which is the
process of negotiating, administering, and interpreting a labor contract.
2. __________ is a learning principle that uses personal behavior to demonstrate performance
expected of others.
3. Choosing of individuals to hire from a pool of qualified applicants is called ________.
4. __________ recruitment is the inviting of applicants for filling-up vacant job positions from
outside the company.
5. An interview where the interviewer asks the applicant to answer a set of prepared questions
is called __________.
6. _________ is learning given by organizations to its employees that concentrates on short
term job performance and acquisition or improvement of job-related skills.
7. Salaries and bonuses are _________ compensation types.
8. _________ is defined as the workers/employees being connected or related to each other as
they go about doing their assigned tasks for the company to which they belong.
9. The _________ purpose of performance evaluation are used for decision-making related to
promotions, transfers, and terminations.
10. Developing employees is a part of the organization’s ___________ management program
and its goals is the matching of the individual’s development needs with the needs of the
organization.
27
Task 2. True or False. Answer T if the statement is true and F if the statement is false.
______ 1. Family and personal problems are reasons why workers form a labor union.
______ 2. The General Organization Chart is also called Management Succession Chart.
______ 3. Internal recruitment may be practiced in Companies today.
______ 4. Advertising and Internet recruiting methods increase the possibility of recruiting
applicants best-fitted for the job openings.
______ 5. Panel interview may have higher reliability compared to one-on-one interview.
______ 6. Proficiency and aptitude tests are designed to evaluate the applicant’s present skills
and potential for learning other skills.
______ 7. Training programs, in order to be successful, must have clear instructional objec-
tives.
______ 8. Employees feel that their salary must be commensurate to the efforts they exerted
in the performance of their job.
______ 9. Performance evaluations done by companies never fail.
______ 10. A labor union is an informal grouping of employees that negotiates with an
Employer.
Scoring: Combine the total correct answers for Task 1 and Task 2. Give one point for each correct
answer.

Correct Answers
For Tasks: 19 – 20 = Excellent knowledge of the topic covered in Chapter 5 - Staffing
17 – 18 = Very Good
11 – 16 = Good
6 – 10 = Fair
1 – 5 = Poor
E. Answer Keys
Task 1: Fill in the Blanks Task 2: True or False
1. Collective Bargaining 1. F
2. Modeling 2. F
3. Selection 3. T
4. External 4. T
5. Structures Interview 5. T
6. Training 6. T
7. Direct 7. T
8. Employee Relations 8. T
9. Administrative 9. F
10. Career 10. F
28
Chapter 6 Leading, (p. 76-100)
how motivation, leadership, and communication work demonstrate knowledge in motivation, leadership, and
in an organization. communication by solving business cases.
A. Chapter Outline
1. Definition and Leading Individuals in Organizations
2. Motivation
3. Leadership Theories and Styles
4. Communication
5. Management of Change and Diversity in Organizations
6. Filipino and Foreign Cultures in Organizations
1. discuss the nature of leading or directing;
2. differentiate leading from managing;
3. identify the different theories of motivation;
4. differentiate among various styles of leadership;
5. appreciate the role of communication in directing people within the organization;
6. explain the management of change and diversity in the workplace; and
7. recognize the interrelationship of Filipino and foreign cultures.

1. Leading is a management function that involves the inspiring and influencing of people in the
organization to achieve a common goal.
2. Managing is the process of working with and through others to achieve organizational objectives,
efficiently and ethically amid constant change.
3. Successful leadership begins by focusing on the psychological well-being of both the employer/
leader and the employee/subordinate.
4. Personality is the unique combination of physical and mental characteristics that affect how
individuals react to situations and interact with others; and if unhealthy or not fully functioning
could cause conflicts/problems among them.
5. Healthy personality is possessed by persons who are fully functioning in mind, body, and spirit.
6. Ideally, human resources of organizations must have a healthy fully-functioning personality
because when one is functioning at the highest level, one, inevitably, becomes efficient in one’s
work, and cooperative with managers/leaders and co-workers.
7. The Big Five Personality Traits that ensure success/efficiency in the workplace are extraversion,
29
agreeableness, conscientiousness, emotional stability, and openness to experience.
8. Emotional Intelligence (EI) is the ability to manage one’s self and interact with others in a pos-
itive way.
9. The Four Key components of EI are self-awareness, self-management, social awareness, and
relationship management.
10. Organizational citizenship Behavior is employee behavior that exceeds work role requirements.
11. Organizational commitment is the extent an employee identifies with an organization and its
goals.
12. Job satisfaction and productivity are related; those with high level of job satisfaction have a
positive attitude toward their respective jobs, thus affecting their productivity and, ultimately,
increasing the profits of their organizations.
13. Motivation refers to psychological processes that arouse and direct goal-directed behavior.
14. Early theories of motivation revolved around the idea that motivation is brought the employees’
desire to fulfill their needs.
15. Maslow’s Hierarchy of Needs Theory refers to physiological, safety, social, esteem, and self-ac-
tualization needs.
16. Other Theories related to need satisfaction are: McGregor’s Theory X and Theory Y, Herzberg’s
Two Factor Theory, McClelland’s Three Needs Theory, and Alderfer’s ERG Theory.
17. Modern Theories of Motivation are: Goal-setting Theory, Reinforcement Theory, Job Design
Theory, Equity Theory and Expectancy Theory.
18. Early leadership theories include the following: Trait Theory which is based on a leader’s personal
characteristic; and Behavioral Theory which focuses on the leader’s conduct, and demeanor as
a leader.
19. Contemporary theories of leadership based on situational control are the Fiedler Model,
Hersey-Blanchard Model, and Path Goal Theories.
20. Situational control refers to a leadership style dependent on circumstances in which leadership
occurs.
21. Modern leadership views include the following theories: Transactional, Transformational, Char-
ismatic, Visionary, Team Leadership and Servant Leadership.
22. Communication is the interpersonal exchange of information and understanding among
organization members.
23. Communication may be verbal, non-verbal, formal, and informal.
24. Communication direction and flow may be vertical (upward or downward), horizontal, lateral,
and diagonal.
25. Communication networks are varied patterns of combined horizontal and vertical flows of
organizational communication.
26. Grapevine is an informal communication network; rumors/gossips are examples.
27. Computer networks are also used in communication among organization members.
28. Barriers to communication filtering, emotions felt by receiver, information overload, defensive-
ness, language used, and national culture.
29. Overcoming barriers to communication include using feedback, using simple language, active
listening, controlling emotions, and observing body language.
30
30. Organizational change is any alteration of people structure or technology in organizations brought
by external or internal forces which they encounter.
31. Organizational diversity is the host of individual differences that make people in organizations
different from each other.
32. To manage resistance to organizational change, the following are needed: a) education of em-
ployees regarding the reasons and importance of change; b) participation of members in deci-
sion-making related to bringing about change; c) facilitation and support to minimize fear of
change; d) manipulation of information to avoid damaging information; e) selection of people
who are open to change, to help disseminate beneficial effects of change; and by f) coercion or
the use of force to make people accept change.
33. Workplace Diversity in an organization is inevitable, but it can be managed by encouraging
employees to accept the organization’s culture and the differences in the workplace.
34. Organizational culture is a shared set of beliefs, values, norms, standards of behavior and expec-
tations that influence the interaction of organization members in order to achieve their mission,
vision, goals, and objectives.
35. The Primary Filipino Values are social acceptance, economic security and social mobility. These
may have positive and negative implications to organizational management.
36. Foreign Culture related to gender egalitarianism, assertiveness, performance orientation, and
humane orientation may also influence organizational management.
Note: The teacher may also include key concepts on different leadership styles.
A diagnostic test covering the contents of this chapter may be administered. The purpose
and what misconceptions they might have, if any.
2. In discussing the role of leadership in an organization, include the topic “Leadership Traits.”
a. The Great Person Theory advocates that there are some personal distinguishing char-
acteristics that separate effective and ineffective leaders.
b. Physical traits such as an individual’s height, weight, skin color, and physique make
no difference in determining leadership success.
c. S u b o r d i n a t e s c o n s i s t e n t l y a d m i r e l e a d e r s w h o a r e h o n e s t ,
competent, forward looking, inspiring, and credible.
d. A comprehensive review by Shelley Kirkpatrick and Edwin Locke (in Schemerhorn,
2008) identify the following personal traits of many successful leaders: drive/high en-
ergy, self-confidence, creativity and cognitive ability, business knowledge, motivation,
flexibility, honesty, and integrity.
3. Selected Activities:
a. Demonstration. Ask the students to check their own personal leadership traits by going through
the list of leadership traits given by Kirkpatrick and Locke. They must also demonstrate
their leadership traits by citing specific examples of past experiences as leader.
31
a1. Suggested answer:
My personal leadership traits: Examples of past experiences as leader
1. drive/high energy 1. As school leader, I accomplished multiple

tasks.
2. self-confidence 2. I was not easily intimidated by a rival

group’s negative comments.
3. creativity 3. I introduced new projects that our school

organization sponsored.
4. cognitive ability 4. I had good grades; and I easily recognized

school problems that needed immediate
solutions.
b. Students will find it intersting to give creative suggestions or innovations for an existing
present day product.
b1. For example, landline telephone was innovated by the introduction and the manufac-
ture of cell phones. This innovation showed creativity and excellent leadership in the
telecommunication business.
Note: The teacher can add more activities such as role-playing.
Task 1. Elimination. Four terms are given in each number. Choose the term which is not related
to the other three. Write the letter corresponding to the unrelated term on the provided
blank before each number.
______ 1. a. extraversion c. charismatic
b. agreeableness d. emotional stability
______ 2. a. leading c. inspiring people
b. managing people d. influencing people
______ 3. a. Physiological needs c. social needs
b. Self actualization needs d. equity needs
______ 4. a. modern motivation theory c. Maslow’s hierarchy of needs theory
b. ERG theory d. Theory X and Theory Y
______ 5. a. Transactional Model c. Contemporary Theory
b. Transformational Model d. Servant Leadership Theory
______ 6. a. diagonal communication c. upward communication
b. vertical communication d. downward communication
______ 7. a. chain network c. computer network
32
b. wheel network d. all-channel network
______ 8. a. filtering c. emotions felt
b. active listening d. defensiveness
______ 9. a. coercion
b. participation in decision making
c. creating new rituals
d. education of employees
______ 10. a. ningas cogon c. economic security
b. social acceptance d. social mobility
Task 2. Modified True or False. Two statements are given.

If only the first statements is true, answer A; if only the second statement is true, answer
B; If both statements are true, answer C; if both statements are false, answer D. Write
your answers on the space provided.
_______ 1. Leading and managing are synonymous terms. Successful leadership must
begin by focusing on the psychological capital of both the employer and
the employee.
_______ 2. Conscientiousness is knowing what is right and what is wrong. Extraversion
is the degree to which someone is sociable, talkative, and assertive.
_______ 3. Job satisfaction refers to the employees’ general attitude toward their re-
spective job. It has no effect on productivity.
_______ 4. Theory X is a positive view of workers. Theory Y is a negative view of
workers.
_______ 5. The Two Factor Theory of Motivation was proposed by McClelland. The
ERG Theory was developed by Alderfer.
_______ 6. Self-actualization refers to the human need for continued personal growth.
Esteem is the human need for self-respect and self-fulfillment.
_______ 7. Managers are advised to set goals for their subordinates. Difficult goals
demotivate workers.
_______ 8. Job enlargement is the increasing of job depth by empowering employees
to assume tasks often done by managers. It is an example of Job Design
Theory.
_______ 9. Change is considered by many organization members as a threat. Fear of
change may be due to uncertainty, pessimism, and concern about personal
loss.
_______ 10. Mañana habit has a positive implication to organizational management.
Ningas Cogon is another positive belief of Filipino workers.
33
Scoring: Combine the total correct answers for Task 1 and Task 2. Give one point for each correct
answer in Task 1 and two points for each correct answer in Task 2.

Correct Answers
For Tasks: 29 – 30 = Excellent knowledge of the topics covered in Chapter 6 - Leading
26 – 28 = Very Good
17 – 25 = Good
10 – 16 = Fair
1 – 9 = Poor
E. Answer Keys
Task 1: Elimination Task 2: True or False
1. c 1. C
2. b 2. A
3. d 3. A
4. a 4. D
5. c 5. B
6. a 6. C
7. c 7. A
8. b 8. B
9. c 9. C
10. a 10. D
34
Chapter 7 Controlling, (p. 101-119)
different controlling methods and techniques. apply appropriate control measures for a specific
business situation.
A. Chapter Outline
1. Definition and Nature of Management Control
2. Link between Planning and Controlling
3. Control Methods and Systems
4. Application of Management Control in Accounting and Marketing Concepts and Techniques
5. Role of Budgets in Planning and Control
1. discuss the nature of controlling;
2. describe the link between planning and controlling; and
3. distinguish control methods and systems.
35
B. Chapter Summary/Essential Ideas:
1. Management control makes sure that the firm’s operating cash flow is sufficient, efficient,
and, if possible, profitable when invested; that the decision to seek or borrow funds should be
appropriate; that there is a continuous monitoring of the organizations’ activities followed by
corrective action; that tasks are completed with less errors by comparing them with previously
set standards.
2. Controlling is a management function that ensures the work performance of the organization’s
members are in-line with the organization’s values and standards.
3. Control techniques are basically the same for controlling financial resources, office management,
quality of service, and quality of goods, among others.
4. The control process involves establishing standards, measuring and reporting actual performance
and comparing it with standards, and taking action.
5. There is a link between planning and controlling.
6. Planning determines the organization’s goods or performance objectives.
7. Controlling makes sure that all organization members are working towards a common direction
or towards the previously set goals and plans of the organization.
8. The Balance Sheet is a financial statement showing the organization’s financial condition; it
presents the financial balances of a particular period and follows an accounting entry A = L +
C or total asset is equivalent to the aggregate summation of liabilities and capital or owner’s
equity.
9. The Income Statement is also known as the Profit and Loss Statement, and Revenue and Ex-
penses Statement.
10. The Cash Flow Statement summarizes the inflows and outflows of cash during the given period.
11. Financial Statements, to be useful in doing financial forecast, must contain the following minimum
items: sales or gross revenues, net income, gross profit, income from continuing/discontinuous
operations, usual income statement items, tax provisions, material changes in financial positions.
12. In preparing prospective financial statements, state that prospective results may not material-
ize because assumptions used are based on information/circumstances existing at the time the
financial statements were prepared.
13. The usual measures of organizational performance control are organizational productivity, or-
ganizational effectiveness, and rankings in industry.
14. Organizational productivity is the amount of goods or services produced (output) divided by
the input or materials needed to produce the said output.
15. Organizational effectiveness is a measure of the organizational goals’ suitability to organizational
needs and how well these goals are being attained.
16. Ranking in industry is a commonly used way to measure organizational performance; being
ranked high, middle or low indicates the company’s performance in comparison with others.
17. Control methods are techniques used for measuring an organization’s financial stability,
efficiency, effectiveness, production output, and organization members’ attitudes and morale.
18. Control techniques are either quantitative or non-quantitative.
36
19. Quantitative control methods include chart, budget, and audits.
20. Non-quantitative control methods include inspections, direct supervision, on the spot checking,
performance evaluation, and counseling.
21. Other control methods: feed forward control, concurrent control, feedback control, employee
discipline, and project management control.
22. Management control accounting and finance makes use of a balance sheet, income statements,
and cash flow statement to analyze and examine financial statements in order to determine the
company’s financial soundness and viability; it also uses financial ratios to determine the com-
pany’s stability, whether it is strong or weak and about to declare bankruptcy.
23. Management control marketing makes use of projected sales or forecasts; statistical models
and econometric modeling to achieve growth targets; surveys to assess product demands; and
historical demand data and actual consumption of their products.
24. Accounting/financial control ratio includes liquidity ratio, leverage ratio, activity ratio, and
profitability ratio.
25. Asset management is the ability to use resources efficiently and operate at minimum cost.
26. Strategies control is a systematic monitoring of control points in strategic plans that leads to the
changing of the organization’s strategies based on assessments.
27. Benchmarking is an approach and process of measuring a company’s services and practices
against recognized leaders in industry to identify areas for improvement.
28. Types of Benchmarking a) strategic benchmarking compares various strategies and identifies
the key strategic elements of success; b) operational benchmarking compares relative costs or
possibilities for product differentiation; and c) management benchmarking focuses on support
functions such as market planning and information systems, logistics, and human resource
management, among others.
29. Budgets are plans that monitor control and make use of the resource of the firm on its operation
based on its objectives or goals.
30. Fixed budget allocates a fixed amount of resources for the specific purpose, while a flexible
budget allows allocation of resources to change depending on firm’s activities.
31. Budget-making improvement involves: a) collaboration and communication with organization
administrators and selected members; b) practicing flexibility to adapt to organization’s needs;
c) relating budget to company goals; d) coordinating budget with all company departments for
them to make full use of the budget allocations given to their respective units; e) using com-
puter softwares when needed to facilitate accurate computations and proper dissemination of
information related to the budget.

A diagnostic test covering the contents of this chapter may be administered. The purpose of
2. In connection with the Quantitative Control Methods for measuring the organization’s stabili-
37
ty, efficiency, production output, etc., it would be wise to discuss the use of the Gantt Chart in
project management. The following ideas will be helpful:
a. The Gantt Chart is a graphical display of the scheduling of tasks required to complete a
project.
b. Henry Gantt, an industrial engineer, developed this chart in the early twentieth century. It
is still used in today’s project management.
c. A visual overview is provided of what needs to be done on the chosen project to be
accomplished.
d. Progress checks could be done at different time intervals.
e. It also helps in the sequencing of activities related to the project, ensuring that work gets
done in time for later work to build upon them.
f. Gantt Chart tries to avoid delays in finishing earlier tasks that may cause delays in later tasks
that will follow.
3. Selected activities on studying the Quantitative Control Method for measuring the organization’s
stability, efficiency, and production output.
a. Demonstration. Ask the students to use pencils or ball pens to demonstrate the use of
the Gantt Chart for a new electronic car prototype. Plot the activities required against the
time in months needed to complete the project.
a1. Demonstration
Activities
A. Complete research and development work
B. Complete engineering design
C. Prepare budgets
D. Build the e-car prototype
E. Test the e-car prototype
b. Students will find it easier to understand the Quan-

titative Control Methods in Organizations if they are asked to list down and define other
quantitative control methods, besides the use of charts.
b1. Other quantitative control methods:
1. Budgets – an expression in financial terms of a plan for meeting the organization’s
goals for a specific period. It is an instrument of planning, management, and control.
2. Audit – an independent review and appraisal of accounting, financial, and other
non-tactical operations. The audit measures and evaluates the effectiveness of
management controls and provides an independent audit of programs, activities,
systems and procedures.
38
Below are assessment tasks to measure the students’ understanding of the topics discussed in
Chapter 7.
Task 1. Multiple Choice. Choose the letter which corresponds to the correct answer and put it on
the space provided before each number.
_______ 1. The first step in the control process
a. taking action
b. establishing standards
c. measuring and reporting actual performance
_______ 2. _______ refers to all the properties owned by an organization.
a. liabilities b. equities c. assets
_______ 3. The amount of goods and services produced by organizations
a. output b. input c. throughput
_______ 4. A measure of the suitability of organizational goals to organizational needs
and how well these goals are being attained
a. Industry ranking
b. Organizational effectiveness
c. Organizational productivity
_______ 5. The organization’s ability to meet short term obligations
a. liquidity b. solidity c. control
_______ 6. It is a method which prevents problems because managerial actions is taken
before the occurrence of actual problems.
a. employee discipline
b. feedforward control
c. feedback control
_______ 7. The “lifeblood of the business”
a. sales b. strategies c. projections
_______ 8. The ability to use resources efficiently and operate at minimum cost
a. activity ratio b. leverage c. asset management
_______ 9. An approach of measuring a company’s own services and practices against
recognized leaders in industry in order to identify areas for improvement.
a. strategic control
b. benchmarking
c. market planning
_______ 10. Profit and Loss Statement is also known as __________.
a. Progress Statement
b. Income Statement
c. Operations Statement
39
Task 2. Elimination. Four terms/items are given. Choose the letter that corresponds to the term/
items not related to the other three. Write your answers on the space provided.
_______ 1. a. accounts payable c. mortgages
b. marketable securities d. long term debts
_______ 2. a. land c. cash on hand
b. property and equipment d. accruals
_______ 3. a. sales c. sales forecast
b. gross profit d. tax provisions
_______ 4. a. inspection reports c. audit interview
b. performance evaluation d. spot checking
_______ 5. a. top down approach c. traffic count
b. macro-economic forecast d. statistical models
_______ 6. a. liquidity ratio c. leverage ratio
b. service ratio d. activity ratio
_______ 7. a. sales volume projections c. working capital needs
b. liquidity predictions d. warehouse handling
_______ 8. a. non quantitative tool c. quantitative tools
b. visual impact d. charts
_______ 9. a. project planning control c. determine workplace privacy
b. identify activities d. determine completion date
_______ 10. a. control process c. establishing sequence of activities
b. correction of deviations d. establishing criteria of performance

Scoring: For Tasks 1 and 2, you may give one point for each correct answer. This will give a
maximum score of 10 for Task 1 and 10 for Task 2. Total Score: 20

Level of understanding Scores
Chapter 7 topics
Excellent 19 – 20
Very Good 16 – 18
Good 11 – 15
Fair 6 – 10
Poor 0 – 5
40
E. Answer Keys
Task 1: Multiple Choice Task 2: Elimination
1. b 1. b
2. c 2. d
3. a 3. c
4. b 4. c
5. a 5. c
6. b 6. b
7. a 7. d
8. c 8. a
9. b 9. c
10. b 10. c
41
Chapter 8 Introduction to the Different Functional
Areas of Management, (p. 120-135)
the different functional areas of management. select one’s area of interest for future career path.
A. Chapter Outline
1. Human Resource Management
2. Marketing Management
3. Operations Management
4. Financial Management
5. Information and Communication Technology Management

1. Human resources management (HRM) is the process of attracting, training, developing, and
maintaining an excellent workforce.
2. Human Resources are also known as human capital and they, along with other resources, drive
the performance of organizations.
3. HRM functions of management include the following:
a. conducting job analyses;
b. planning labor need and recruitment;
c. selecting candidates for the job;
d. orienting and training new employees;
e. managing compensation or pay;
f. providing incentives performance;
g. evaluating employees’ performance;
h. communicating;
i. developing employees;
j. building employees’ commitment;
k. providing good working conditions; and
l. handling grievances and industrial relations.
4. Marketing management is the process of managerial planning and carrying out the conception,
pricing, promotion, and distribution of ideas, goods and services to bring exchanges that satisfy
individual and organizational goals.
5. The marketing management functions of management includes the following:
a. Analyses, planning, implementing, and controlling of goods, services, and ideas to create
exchanges that satisfy customer needs and company goals.
42
b. Management of marketing resources: sales people, advertising, and marketing research.
c. Analysis of marketing program plans and its implementation.
d. Stimulation of demands for the products of the company.
e. Making of crucial decisions that will ensure the company’s competitiveness.
f. Making sure that marketing techniques employed are efficient, effective, and socially re-
sponsible or ethical
6. Marketing management is important because it is the key to achieving organizational goals, the
satisfaction of customers, and increasing profits.
7. Advertising is any system of attracting public notice to an event or the desirability of commercial
products for sale.
8. Operations management is the study of how goods and services are produced in organizations.
9. Operations management functions of management must include:
a. Overseeing the transformation process that changes resources into finished goods and
services;
b. Improvement of productivity and competitive advantage; and
c. Managing sequence of activities and information along the whole course of the value chain.
10. Expertise in operations management is important because it may increase a company’s chances
for survival and success in today’s business environment, characterized by intense competition
and desire for innovative, quality products and services.
11. Financial management is the management and custody of the organization’s funds, seeing to it
that funds are effectively utilized in order to provide for all the needs of the various operating
units of the organization.
12. Financial management functions of management includes:
a. taking charge of the company’s financial policies and strategies, investments, capital struc-
tures and dividend policies;
b. financial management and control; and
c. financial planning.
13. Financial management facilitates the choice of investments, financial policies, and operating
mechanism of the organization to effectively achieve its goals and objectives.
14. Financial managers maximize the wealth of the organization; stockholders/shareholders satisfy
other goals such as providing good customer service, minimizing bankruptcy risks, and actively
participating in present societal concerns, among others.
15. Information and Communication Technology Management (ICTM) is the management of in-
formation and communication technology that collects, organizes and distributes data for the
organization’s decision-making functions.
16. ICTM functions include:
a. Developing the organization’s hardware, software, and other computing and communicating
technologies;
b. Developing the organization’s management information system tailored to the needs of the
firm’s units; and
c. Encouraging e-commerce through Internet use
17. The widespread use of ICTM has brought the emergence of a Knowledge-based economy due
43
to easy access to information at low costs through the Internet.
18. ICTM may be used for different managerial functions such as scenario planning decision-making,
aiding team work, facilitation of productivity measurement, easy low cost communication, and
world wide selling through the Internet among others.
19. ICTM has revolutionized the business world.
20. Knowledge society are composed of individuals or groups of people who have acquired much
information and understanding of things due to experience, practical ability, and easy access to
information through the Internet.

A diagnostic test covering the contents of this chapter may be administered. The purpose of
2. In connection with the “Different Functional Areas of Management” it is recommended that the
two different approaches to performing management functions in the different functional areas
of management mainstream and multistream management – be discussed. The following ideas
will be helpful:
a. Mainstream and multistream approaches to management are ideal types, according Max
Weber.
b. Mainstream and multistream managers follow similar four-step processes to set goals and
make plans, but proceed differently.
c. Mainstream managers’ four-step processes are the following:
1. Identification of the organization’s mission and vision that will ensure maximum financial
returns for the organization’s owners;
2. Setting strategic goals and plans focused towards the optimization of the organization’s
competitive advantage;
3. Implementation of operational goals that are specific, measurable, achievable, results-based
and time specific, and plans that includes both new and on-going goals; and
4. Checking proper implementation of goals and seeing to it that members who meet goals
are rewarded.
d. Multistream managers in cooperation with members and other stakeholders follow a four-
step process which include:
1. Identification of the organization’s mission and vision that are beneficial to stakeholders’
well-being;
2. Setting strategic goals and plans focused towards the optimization of benefits for its
stakeholders/shareholders;
3. Implementation of operational goals that are significant, meaningful, agreed upon,
relevant and timely and plans that include both new and on-going goals; and
4. Learning continuously from set goals and plans and improving them as they are being
carried out.
3. Selected activities on studying “Mainstream and Multistream Management”
44
a. Demonstration. Ask the students to formulate the vision-mission and goals of a business
organization using the mainstream and multistream approaches.
b. Understanding the Foundations of Mainstream and Multistream management.
Ask the students to Agree or Disagree with the following statements by putting a check
mark on their chosen answers. Seven correct Agree answers will show the students’ sufficient
or average understanding of the Foundations of Mainstream and Multistream Management.
Eight to nine correct Agree answers will indicate superior understanding of the said topic.
Multistream Managers are those who: Agree Disagree
1. maximize productivity via self-interest

2. believe in the nature of the community through virtue
3. plan using practical wisdom and participation
4. control human resources performance through the prac-
tice of fairness
5. practice centralization, and standardization when organ-
izing marketing tasks
6. motivate others so that their work efforts serve to meet
organizational goals
7. work together with others so that everyone’s work efforts
serve to meet agreed upon organizational goals
8. ensure that members’ actions in the company are just
and consistent with company values
9. practice courage and experimentation to facilitate meeting
of company goals
10. practice relational self-control in leading work teams
11. do not rely on measurable goals in setting company
strategies
12. do not practice top-down linear analysis in financial
planning

45
a.1 Demonstration of Vision, Mission, Goals Formulation
1. Mainstream Approach
Vision: A globally recognized organization in the __________ business that
ensure the highest standard of service and returns on investments (ROI).
Mission: Provide opportunities for training, continuing education, and research in
the field of ____________.
Establish and maintain strategic local and international alliances.
Ascertain ROI.
Goals: Intensify training and development of organization members to gain
expertise in __________.
Continue developing and nurturing partnership/linkages.
Offer unique services that will encourage customer support/patronage.
2. Multistream Approach
Vision: A socially-responsible organization in the __________ business that is
recognized for its concern for the community/society.
Mission: Provide opportunities for the organization members’ exposure to existing
community/societal problems and needs.
Establish and maintain strategic alliances with government and non-gov-
ernment organizations that cater to societal problems/needs.
Goals: Intensity training and development of organization members to gain ex-
pertise in social concerns that could be offered in the _________ business.
Continue developing and nurturing alliances formed.
b.1 Agree-Disagree Correct Answers to b. Understanding the Foundations of Mainstream

and Multistream Management
Agree Correct Answers: 2, 3, 4, 7, 8, 9, 10, 11, 12
Disagree Correct Answer: 1, 5, 6

Chapter 8 of the textbook, page 124.
Task 1. Identification. Put answer on the spaces provided

_______________ 1. The most important business resource
_______________ 2. The study of how goods and services are produced in
organizations
_______________ 3. Any system or method of attracting public notice to an event to
be attended or the desirability of commercial products for sale
_______________ 4. The process of setting financial objectives and determining what
should be done to accomplish them
_______________ 5. Forecast of cash needs and sources
46
_______________ 6. The process of managerial planning and carrying out of the
conception, pricing, promotion and distribution of ideas, goods,
and services to bring exchanges that satisfy individual and or-
ganizational goals
_______________ 7. Individuals or groups of people who have acquired much infor-
mation and understanding of things due to experience, practical
ability, and easy access to information through the Internet
_______________ 8. The process of obtaining information about jobs needed in order
to achieve the organization’s goals/objectives by determining its
duties, tasks or activities
_______________ 9. Functional area of management which handles the evaluation of
employees’ performance
_______________ 10. Functional area of management which is concerned with the
stimulation of demands for the company’s products
Task 2. Matching. Match the items in Column 1 with the items in Col-
umn 2. Write only the letter of the correct answer on the space provided
Column 1 Column 2
_______ 1. ICTM A. salesmen, advertising, research
_______ 2. Marketing resources B. important for attracting qualified job
_______ 3. HRM applicants
_______ 4. Financial management C. bonuses
_______ 5. Operations management D. handles compensation/pay of workers
_______ 6. M a r k e t i n g m a n a g e m e n t E. effective/efficient use of company
functions funds
_______ 7. Recruitment F. health care, educational, vacation
_______ 8. Employee benefits leave
_______ 9. Incentives G. settle differences between labor and
_______ 10. Grievance procedure management
H. oversee transformation of resources
into finished products
I. stimulation of demands for company
products
J. collect, organize, and distribute data
needed for the firm’s decision-making
function
47
Scoring: For Tasks 1 and 2, you may give one point for each correct answer. This will give a
maximum score of 10 for Task 1 and 10 for Task 2, hence a total of 20 points

Level of Understanding Scores
Chapter 8 Topics
Excellent 19 – 20
Very Good 16 – 18
Good 11 – 15
Fair 6 – 10
Poor 0 – 5
E. Answer Keys
Task 1: Identification Task 2: Matching
1. Human Resource 1. J
2. Operations Management 2. A
3. Advertising 3. D
4. Financial Planning 4. E
5. Cash Budgeting 5. H
6. Marketing Management 6. I
7. Knowledge Society 7. B
8. Job Analyses 8. F
9. Human Resource Management 9. C
10. Marketing Management 10. G
48
Chapter 9 Special Topics in Management, (p. 136-147)
the basic concepts of small-family business. initiate an appropriate small-family business.
A. Chapter Outline
1. Small Business Management and Entrepreneurship
2. Family Business Enterprise
3. Starting a Business: Legal Forms and Requirements
1. explain how to start a small/family business;
2. appreciate the role of small family business operation in the improvement of one’s economic
status; and
3. identify legal business forms and requirements.

1. Entrepreneurship is an innovative, creative, risk-taking, and growth-oriented behavior that
brings new opportunities for individuals/organizations to start a new business and produce new
products that are beneficial to society.
2. Entrepreneurial ventures are organizations that persistently follow opportunities characterized
by creative and innovative activities that have service, growth, and profitability as their principal
goals
3. Small business is a business that has fewer than 100 to 500 workers (depending on the prevailing
commercial law in a particular country) independently owned, operated, and financed; not always
entrepreneurial in orientation and does not dominate its industry; capital is low but is capable
of producing goods or rendering services designed to satisfy particular needs of customers.
4. Entrepreneurship also contributes some socio-economic benefits such as providing employment
for himself and other fellow Filipino citizens, thus helping solve the country’s unemployment
problems and additional source of tax of the government.
5. Entrepreneurial procedure includes the following:
a. formulate the business Vision-mission statements;
b. segment the market into: geographical, demographical, psychological, and behavioral;
c. find the target market;
d. understand the environment;
e. develop the business plan;
f. implement and monitor the business venture; and
g. maximize the utilization of business resources.
49
6. Entrepreneurial characteristics include the following: creative, innovative, good planner, cus-
tomer-oriented, open-minded, flexible, persistent, confident, organized, updated, team player,
knowledgeable, and risk taker.
7. Business registration is a government requirement that orders new business owners to furnish
government agencies with necessary information prior to legal operation of their business firm.
8. Single proprietorship is business owned by one person only; the owner’s income and the business
income are one and the business income is taxed as a personal income; decision-making is the
sole responsibility of the owner and if it succeeds, he gets all the profits. If it fails he suffers all
the losses and has to pay all debts incurred.
9. Partnership is business formed when two or more persons formally agree to be joint owners of
a business. Their resources (money and other assets) and talents (skills, experience, manage-
ment expertise) may be pooled together; all partners share the profits equally, unless otherwise
specified in their partnership agreement.
10. Corporation is a business company involving five or more persons owning it. The corporation is
registered and is recognized by law as a “legal person” that has legal rights and responsibilities,
can sue or be sued in court, can own and sell properties, and can transact/enter into contracts.
Ownership is divided into units known as “shares of stocks” and owners are called stockholders.
A board of directors is elected by stockholders on a regular basis. They manage the corporation
which is run according to the terms specified by their by-laws and articles of incorporation.
Its life does not end with the death of a stockholder or by the selling of stocks of a particular
stockholder.
11. Cooperative is a group enterprise made up of several traders, consumers, and producers who are
interested to produce or trade as a group. A group of officers called board of directors and the
committees, headed by a chairman, manage its activities. The cooperative office staff, who run
the daily office work, are usually, hired. The life of the cooperative is not affected by the death
of any of its members nor by the selling of a member’s shares. It can be dissolved, however,
by a majority vote of the board of directors and a resolution signed by at least two-thirds of the
general membership.
12. Registration procedure of the legal forms of business differ from each other.
13. Advantages of single proprietorship are as follows:
a. creation is simple and low cost;
b. owner gets all the profits; and
c. decision-making is the owner’s sole responsibility.
14. Advantages of partnerships are as follows:
a. establishment is easy;
b. equal division of profits based on the agreement of partners; and
c. availability of bigger capital due to pooling of resources.
15. Advantages of corporations are as follows:
a. less liability of stockholders;
b. ability to attract larger amount of capital;
c. transfer of stock ownership is easy;
d. large pool of talents; and
50
e. division of profits is fair, depending on stock units owned.
16. Advantages of cooperatives are as follows:
a. as a group enterprise, members may avail themselves of economies of scale;
b. different types may be formed (farmers’, producers; and credit cooperatives);
c. some registered cooperatives may apply for tax exemption;
d. has large pool of talents, skills and knowledge; and
e. members have limited liability.
17. Disadvantages of single proprietorship are as follows:
a. owner is liable to all risks and losses;
b. limited capital and other resources; and
c. solo owner has to do long hours of work.
18. Disadvantages of Partnerships are as follows:
a. business control is limited;
b. profits are shared;
c. wrong decisions made by a partner is binding to other partners; and
d. invested property becomes the joint property of all partners.
19. Disadvantages of corporations are as follows:
a. major decisions cannot be done easily and without the approval of the board of directors;
b. corporate and individual profits are taxed separately, resulting in double taxation and more
expenses; and
c. has more rules and regulations to be complied with.
20. Disadvantage of Cooperatives are as follows:
a. business control is shared
b. ideas and decisions made by the Board of Directors have to be accepted by the general
membership
21. Family Business is defined as a business owned and financially controlled by members of the
family.
22. Globally, there are many successful family businesses run by entrepreneurs who have different
stories to tell and different formulas for their business success.
23. Some common characteristics of members of successful family businesses include the following:
creativity, innovativeness, service orientation, ability to take risks, and do hard work.

A diagnostic test covering the content of this chapter may be administered. This is to assess
what the students already know about the topic, what they know little or nothing about, and
what misconceptions they might have, if any.
2. In connection with the role of small businesses in entrepreneurship, it is suggested to bring in
the topic “Why Many Small Businesses Fail.” The following ideas will be helpful in discussing
the topic:
51
a. Most failures of small businesses are due to bad judgment and management mistakes.
b. Such bad judgment and management mistakes, according to Schermerhorn (2008) may be
due to:
1. Lack of experience – not having sufficient know-how to run a business in the chosen
market or area.
2. Lack of expertise – not having expertise in the essentials of business operations, including
finance, purchasing, selling, and production.
3. Lack of strategy and strategic leadership – not taking the time to craft a vision and
mission, as well as formulate and properly implement a strategy.
4. Poor financial control – not keeping track of the numbers and failure to control business
finances.
5. Growing too fast – not taking the time to consolidate a position, fine tune the organiza-
tion, and systematically meet the challenges of growth.
6. Insufficient commitment – not devoting enough time to the requirements of running a
competitive business.
7. Ethical failure – falling prey to the temptations of fraud, deception, and embezzlement.
3. Selected activities on studying the topic “Why Small Businesses Fail”
a. Demonstration. Ask the students to use colored pencils or ballpens to show the negative
influence of bad-judgment and management mistakes on small businesses that cause it to
fail.
b. Students will find it easier to understand “why small businesses fail” if they are asked to
state solutions to overcome the identified bad judgments and management mistakes that
cause small businesses to fail.
a1. Demonstration showing negative influence of bad judgment and management mistakes
that cause small businesses to fail
52
b1. Proposed remedy to overcome the identified bad judgment and management mistakes
that cause small businesses to fail
1. for lack of experience – attend on-the job training/apprenticeship programs on the
chosen business.
2. for lack of expertise – consult experts on the essentials of running chosen business.
3. for lack of strategy and strategic leadership – take time to craft your mission and
vision about the business chosen; read and understand guidelines on strategy for-
mulation and leadership theories/models.
4. for poor financial control – consult finance experts and practice tight controlling
methods.
5. for growing too fast – take time to think things over before deciding to branch-
out; make sure that your business already has the capability to expand/grow.
6. for insufficient commitment – have enough time to oversee the running of your
business; avoid delegation of responsibilities to others.
7. for ethical failure – avoid temptations to engage in unfair business practices.

Chapter 9.
Task 1. Arrangement in Chronological Order.

Arrange the Steps involved in the Entrepreneurial Procedure/Process according to its
chronological order. Number the first step 1 and the last step 7.
_______ a. find the target market
_______ b. develop the business plan
_______ c. understand the environment
_______ d. implement and monitor the business venture
_______ e. segment the market
_______ f. formulate the business vision and mission statements
_______ g. maximize the utilization of business resources
Task 2. Fill in the Blanks. Put answer on the space provided before each number.
_______________ 1. Business owned by one person is called _____________.
_______________ 2. Business registration documents have to be submitted to the
Department of _____________ for commercial registry.
_______________ 3. The external _____________ environment includes the business
organization’s customers and suppliers.
_______________ 4. The _____________ serves as the roadmap which the business
must follow.
_______________ 5. The _____________ data refers to capital needs, available funds,
and possible loan services.
53
_______________ 6. _____________ is the business formed when two or more persons
formally agree to be joint owners of the said business.
_______________ 7. _____________ is the innovative, creative, risk-taking, and
growth-oriented behavior _____________ that bring about new
opportunities for individuals and organizations to start a new
business and produce new products that are beneficial for society.
_______________ 8. The _____________ target market considers the population,
customers’ age, education, income, and marital states.
_______________ 9. Entrepreneurs must be _____________ to adapt to the changing
environmental conditions.
_______________ 10. A _____________ is elected by stockholders on a regular basis
to manage corporations.
Scoring: For Tasks 1 and 2, you may give one point for each correct answer. This will give a max-
imum score of 7 for Task 1 and 10 for Task 2; Total Score, therefore is 17

Level of Understanding Scores
Chapter 9 Topics
Excellent 16 – 17
Very Good 13 – 15
Good 9 – 12
Fair 5 – 8
Poor 0 – 4
E. Answer Keys
Task 1: Arrangement in Chronological Order Task 2: Fill in the Blank
a. 3 1. Solo/Single Proprietorship
b. 5 2. Trade and Industry
c. 4 3. Micro
d. 6 4. Business Plan
e. 2 5. Financial data
f. 1 6. Partnership
g. 7 7. Entrepreneurship
8. Demographical
9. Flexible/adaptable
10. Board of Directors
54

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ORGANIZATION

• Helena Ma. F. Cabrera, PhD

• Clarence Darro B. Del Castillo

All rights reserved. No part of this book may be reproduced or transmitted in

Editors: Clarence Darro B. del Castillo

Reviewers: Wilson T. Ojales and Gregorio R. Sismondo

Printed in the Philippines by:_________________________________

This management course and this textbook is described as an

What is expected from students of this course? They are expected

Finally, encourage students to make full use of the learning expe-

Chapter 3 Planning 10. discuss the nature of planning (ABM_AOM11- 26-37 14

Chapter 4 Organizing 15. discuss the nature of organizations (ABM_ 38-50 18

Chapter 6 Leading 27. discuss the nature of directing (ABM_AOM11- 76-100 29

Chapter 2 The Firm and its Environment••••••••••••••••••••••••••••••••••••••••••• 8

Chapter 8 Introduction to the Different Functional Areas of Management•••••••••• 42

Chapter 9 Special Topics in Management•••••••••••••••••••••••••••••••••••••••••••• 49

Content Standard Performance Standard

B. Chapter Summary/Essential Ideas:

C. Teaching Tips on Selected Topics

1. look after their self-interests first

D. Assessments and Scoring Rubrics

a. Beliefs or accomplishments of five Demonstrate all criteria Excellent 5

c. Beliefs or accomplishments of five Only three CEOs/Presi- Good 3

d. Beliefs or accomplishments of five Only two CEOs/Presidents Fair 2

e. Beliefs or accomplishments of five Only one CEO/President Poor 1

Content Standard Performance Standard

B. Chapter Summary/Essential Ideas

Task 2. (1) Profit

Content Standard Performance Standard

B. Chapter Summary/Essential Ideas

C. Teaching Tips on Selected Topics

Tactical Plan (Department Head)

Operational Plan (Frontline Manager)

Operational Plan: Financial Department

Tactical Plan: Frontline Managers for Training and Development

Task 1. Arrangement in Chronological Order

Content Standard Performance Standard

B. Chapter Summary/Essential Ideas

C. Teaching Tips on Selected Topics

D. Assessments and Scoring

Content Standard Performance Standard

B. Chapter Summary/Essential Ideas

C. Teaching Tips on Selected Topics

Content Standard Performance Standard

B. Chapter Summary/Essential Ideas

My personal leadership traits: Examples of past experiences as leader

1. drive/high energy 1. As school leader, I accomplished multiple

2. self-confidence 2. I was not easily intimidated by a rival

3. creativity 3. I introduced new projects that our school

4. cognitive ability 4. I had good grades; and I easily recognized

Task 2. Modified True or False. Two statements are given.

Content Standard Performance Standard

C. Teaching Tips on Selected Topics

b. Students will find it easier to understand the Quan-

Content Standard Performance Standard

B. Chapter Summary/Essential Ideas

C. Teaching Tips on Selected Topics

Multistream Managers are those who: Agree Disagree

1. maximize productivity via self-interest

b.1 Agree-Disagree Correct Answers to b. Understanding the Foundations of Mainstream

D. Assessments and Scoring

Task 1. Identification. Put answer on the spaces provided

Content Standard Performance Standard