Professional Documents
Culture Documents
TM Organization - Management
TM Organization - Management
AND MANAGEMENT
TEACHER’S MANUAL
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.
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.
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.
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)
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
(ABM_AOM11-IIa-b-24)
25. differentiate various employee movements
(ABM_AOM11-IIa-b-25)
26. adopt effective rewards system (ABM_
AOM11-IIa-b-26)
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 3 Planning•••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• 14
Chapter 4 Organizing••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• 18
Chapter 5 Staffing••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• 22
Chapter 6 Leading••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• 29
Chapter 7 Controlling••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• 35
ix
x
ORGANIZATION
AND MANAGEMENT
TEACHER’S MANUAL
1
Chapter 1 Nature and Concept of Management, (p. 2-11)
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
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.
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
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
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
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.
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 learners have an understanding of... The learners shall be able to...
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
After reading and studying this chapter, the students will be able to:
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.
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
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 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
13
Chapter 3 Planning, (p. 26-37)
The learners have an understanding of... The learners shall be able to...
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
After reading and studying this chapter, the students will be able to:
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.
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.
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)
b1.
Suggested Hotel Service Strategic Plan: To expand Hotel Service
to different parts
of the Philippines in seven years
16
D. Assessment and Scoring
Below are Assessment Tasks to measure the students’ understanding of the topics discussed in
Chapter 3 of the textbook
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 learners have an understanding of... The learners shall be able to...
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
After reading and studying this chapter, the students will be able to:
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.
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.
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
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 learners have an understanding of... The learners shall be able to...
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
After reading and studying this chapter, the students will be able to:
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.
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.
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
D. Assessment and Scoring
Below are assessment tasks based on the topics discussed in Chapter 5.
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)
The learners have an understanding of... The learners shall be able to...
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
After reading and studying this chapter, the students will be able to:
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.
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.
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
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 discussing the role of leadership in an organization, include the topic “Leadership Traits.”
The following ideas will be helpful in discussing the topic:
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:
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.
D. Assessment and Scoring
Below are assessment tasks based on the topics discussed in Chapter 6.
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
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)
The learners have an understanding of... The learners shall be able to...
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
After reading and studying this chapter, the students will be able to:
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.
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
38
D. Assessment and Scoring
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 learners have an understanding of... The learners shall be able to...
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
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
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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.
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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.
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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.
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_______________ 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
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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
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Chapter 9 Special Topics in Management, (p. 136-147)
The learners have an understanding of... The learners shall be able to...
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
After reading and studying this chapter, the students will be able to:
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.
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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
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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.
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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
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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.
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.
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_______________ 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
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