SHS

Organization and Management

Quarter 2: Module 5
Organization and Management
Grade 11: Quarter 2: Module 5
First Edition, 2020

Copyright © 2020
La Union Schools Division
Region I

All rights reserved. No part of this module may be reproduced in any form without
written permission from the copyright owners.

Development Team of the Module

Author: Fatima D. Tatunay

Editor: SDO La Union, Learning Resource Quality Assurance Team

Illustrator: Ernesto F. Ramos Jr., P II

Management Team:

Atty. Donato D. Balderas, Jr.

Schools Division Superintendent

Vivian Luz S. Pagatpatan, Ph.D

Assistant Schools Division Superintendent

German E. Flora, Ph.D, CID Chief

Virgilio C. Boado, Ph.D, EPS in Charge of LRMS

Lorna O. Gaspar, EPS in Charge of ABM

Michael Jason D. Morales, PDO II

Claire P. Toluyen, Librarian II
Organization and
Management
Quarter 2: Module 5
 Target

Leadership is the art or process of influencing people so that they will strive
willingly and enthusiastically toward the achievement of group goals. It is the ability
of getting the people do or not do certain activities directed towards the achievement
of organizational goals.

Motivation is the willingness to exert high levels of effort to reach

organizational goals, conditioned by the ability of the effort to satisfy some individual
need. A motivated person is in a state of tension; and to relieve this tension, he/she
exerts efforts. The higher the tension, the higher the level of effort exerted in order to
attain his goals.

Communication is the essence of leadership--- it is the process of sharing and

exchanging of messages between people for the purpose of achieving common
meaning.

Your previous lesson provided you with knowledge about the function and
importance of compensation, wages and performance evaluation, as well as
appraisal, reward system, employee relations and movement.

This learning material will help you gain perspective on how motivation,
leadership and communication work in an organization.

At the end of this learning material, you are expected to:

1. demonstrate knowledge in motivation, leadership, and communication by
solving business cases.

Before going on, check how much you know about this topic by
answering the pre-test.

1
 Jumpstart

For you to understand the lesson well, do the following activities.

Have fun and good luck!

Activity 1: Compare and Contrast, a good Leader will always make a blast!

Directions: Read the definition of leadership and cite the difference between a leader
and a manger.

Leading or directing is a management function that involves influencing,

supervising, training, guiding and motivating subordinates to do their best so that
they would be able to help the organization’s endeavor to attain their goals. It begins
with understanding how people behave, what motivates them and how you
communicate with them in order to attain your common goal.

The primary function of a leader is to produce change. People who provide

effective leadership always seem to have above-energy levels, they appear to thrive
on achieving something important and being in a position of influencing others to
achieve.

Leading vs. Managing

Warren Bennis, a leadership guru, differentiates leader from manager by

saying a “leader is one who do the right thing” while “manager do things right”.
According to Bennis, leadership is the capacity to create compelling vision and to
translate it into actions and sustain it. Below is a comparison between a Leader and
a Manager as described by Bennis:

Leader Manager

- innovates - administers
- develops - maintains
- focuses on people - focuses on systems and
- inspires trust structures
- has a long range of perspective - relies on control
- asks what and why - short-range view
- has his eye on the horizon - asks how and when
- originates - has his eye always on the bottom
- challenge the status quo line
- does the right thing - imitates
- accepts the status quo
- does things right

2
 According to Genevieve Capowski, a leader embodies the “soul” of an
organization, characterized as visionary, passionate, creative, flexible, inspiring,
innovative, courageous, imaginative, experimental, change initiator, with power
based on personal trait. On the other hand, a manager embodies the “mind”,
characterized as rational, consulting, persistent, tough-minded, analytical,
structured, deliberate, authoritative, stabilizing, with power based on position.

Directions: Read the following statements and identify whether it is True or False.
Write your answers on a separate sheet of paper.

1. A leader does the right thing and a manager does things right.
2. A leader embodies the soul and mind of an organization.
3. The secondary function of a leader is to produce change in the organization.
4. Leadership begins with understanding how people behave, what motivates
them and how you communicate with them in order to attain your common
goal.
5. A manger only has a shot range view on the company and always imitates the
leader.

Discover

Motivation refers to the psychological process that arouse and direct goal-
directed behavior. As mentioned earlier, it is the willingness of an individual to exert
high levels of effort to reach organizational goals; thus, a motivated person tries hard.
However, high levels of efforts are unlikely to lead a favorable job performance
outcome unless the effort is channeled in a direction that benefits the organization.
Also, an individual employee’s needs must be compatible with the organizational
goals.

Some of the known theories that explains about motivation are as follows:

1. Maslow’s Hierarchy of Needs Theory

Maslow created a theory based on his assumption of human needs known as
Maslow’s Hierarchy of Needs that are classified according to hierarchal
structure of importance from lowest to highest. It states that the lower the
hierarchy of needs, the greater the need for satisfaction.

3
 Figure 1. Maslow’s Hierarchy of Needs
Tay L, and Diener E. (2011). Needs and subjective well-being around the world. Journal of Personal Social
Psychology, 101, 2, 354-65. Retrieved from http://changingminds.org/explanations/needs/maslow.htm

a. Physiological Needs refer to the humans’ basic necessities such as food,

clothing, sleep.
b. Safety Needs refer to human needs for safety and protection from any
danger whether in physical or psychological form.
c. Social Needs refer to the needs of an individual to feel the sense of
belongingness to a certain group and the need for affection. Man as a social
being, prefer to work to interact with other people.
d. Esteem Needs pertains to the human needs for self-respect, self-fulfillment
and become the best according to one’s capability. Fulfilling this need
makes an individual more self-confident in expressing himself.
e. Self-actualization is the last final need in Maslow’s hierarchy. This is
achieved when all of the four needs have already been satisfied. This is the
level where an individual actually realizes his full potential and what he
can do.

2. McGregor’s Theory X and Theory Y

Douglas McGregor proposed that managers tend to hold two assumptions

when it comes to the nature of people at work. Theory X pertains to the
negative view of a worker towards work, while Theory Y refers to the positive
view of workers.

Theory X Theory Y

1. The average man is lazy by 1. The expenditure of physical

nature—he works as little as and mental is as natural as
possible play and rest
2. He exercises self-direction
and self-control in the service

4
 2. He lacks ambition, disliked
responsibility and prefers to
be led
3. He is inherently self-centered
and indifferent to
organizational needs
4. He is by nature resistant to
change
5. He is gullible, not very bright
of objectives to which he is
committed
3. Commitment to objectives is a
function of rewards
4. The average person learns
under proper conditions not
only to accept but also seek
responsibility
5. He exercises a high degree of
imagination and creativity

McGregor highly proposed that managers should be guided by Theory Y, giving

every individual a chance to play a part of the organization and participate, if
not, give a feedback in the decisions made in order to have a good working
relation.

3. Herzberg’s Two Factor Theory

Two Factor Theory also known as the Motivation-Hygiene Theory was

proposed by Frederick Herzberg in 1964. This theory cites that factors that
are associated with employees’ job satisfaction and dissatisfaction. These
factors are called motivators and hygiene factors. While Motivators are job
factors are intrinsically motivating people to endure their work and become
more productive, Hygiene factor extrinsically dissatisfying the employees, thus
making them raise complaints and arguments against the management.

Motivators Hygiene Factors

- Achievement - Company Policies and

- Recognition Administration
- Advancement - Quality of Supervision
- Work Challenge - Relationship with Supervisors
- Possibility of Growth
- Responsibility This may also include:
- Peer relations
- Compensation
- Job Security
- Working Conditions

4. McClelland’s Three Need Theory

The theory states that there are needs that serves as motivators in a
workplace:

5
 Need for Achievement (nAch) is the drive to excel and drive to succeed.
People with this kind of need seek situations where they can take
responsibility in finding solutions to the problem and receive positive
feedbacks from the management.

Need for Power (nPow) is the desire to become influential and to have an
impact. People in high nPow enjoys being in charge of tasks and prefer to work
in a competitive environment.

Need for Affiliation (nAff) is the desire to be liked and accepted. The need to
feel sense of belongingness is high and people with this need prefer to work in
a cooperative environment rather than competitive.

5. Alderfer’s ERG Theory

Clayton Alderfer’s ERG Theory set of core needs explains behavior. From
Maslow’s Five Hierarchy of Needs Theory, Alderfer condensed it into three
parts abbreviated as ERG that stands for Existence needs, Relatedness needs
and Growth needs. How these needs are associated with each other is similar
to Maslow’s.

Aside from the known theories about motivation, there are also Modern Theories that
explains motivation and these are:

1. Goal-setting Theory

This theory is a proposition that the more specific the goal, even if it is difficult,
if accepted by the workers, the higher their performance will be.

2. Reinforcement Theory

It is the counterpoint of goal-setting theory and thus this theory explains that
an individual’s purpose directs his or her actions and is a function of its
consequences. This theory ignores factors such as goals, needs and
expectations, it only focuses on what happens to a person when he/she takes
some action.

For example, employee E got rewarded for being the most efficient sales person
for the month and is given cash incentives, what do you think his response
will be? This explains that the more positive the reinforcement is, the more
motivated the workers will be.

3. Job Design Theory

This theory states that the employees are more motivated to work well by
combining tasks to complete their jobs. Managers are advised to design jobs
deliberately and thoughtfully to reflect the demands of the ever-changing

6
 environment and organization’s technological advances. The job design must
also suit the skills and abilities of its employees.

4. Equity Theory

A theory developed by J. Stacey Adams and it states that every employee

compares his job’s inputs-outputs to his co-employee and then corrects any
inequity. Managers are encouraged to exercise fairness among its people.

5. Expectancy Theory

Expectancy theory states that an individual tends to act based on expectation

that the act will be followed by an outcome that may or may not be attractive
to him.

For you to understand the lesson well, do the following activities. Have fun
and good luck! Use a separate sheet of paper.

Explore

Enrichment Activity 1

Directions: Below are some of the known theories and styles of leadership,
read and ponder on each of them and answer the following questions after the
discussion.

Managers vary in many ways on their leadership styles. As management

knowledge is supported by theories, leadership is authenticated by the following
theories:

1. Trait Theories holds that certain distinguishing features that differentiates a

leader from the group. Its started from the “great man” theory that leaders are
born, not made, a belief dating back to the ancient Greek Romans and
popularized by Thomas Carylyle in modern times, researchers have tried to
identify the physical, mental and personality traits a leader must possess.

2. Behavioral Theories on Leadership proposed by Kurt Lewin, Lippitt and

White focuses on how leaders behave and assumes that their leadership traits
can be copied by other leaders. This theory explains the two types of
leadership styles: the autocratic style of leadership and the democratic style.

7
 Autocratic Style - this style of leadership ensures to perform highly as long
as the leader is directly supervising the workers during working hours. There
are limited inputs or none at all from the employees thus feeling of displease
arises from them.

Democratic Style - the leader delegates authority ant trust to its members
and makes them participate in decision-making or if not, the leader at least
considers feedbacks from them.

In addition to these styles, earlier research by Lewin, Lippitt and White

suggested a continuum leadership theory with three basic styles of leadership
and the third style is the Laissez-faire style.

Laissez-faire Style – suggests a hands-off style of leadership. The leader

minimizes group communication and interaction. This style of leadership only
applies for highly self-motivated people.

3. Situational/ Contingency Theory on Leadership argues that the successful

leadership depends on the relationship between the organizational situation
and the leader’s style and that the most effective leadership style depends on
the particular situation.

Directions: Supply the correct answer/s for the following questions.

1. Who are the proponents of Behavioral Theories on Leadership?

2. This style of leadership only accepts a little or no inputs from its subordinates.
3. A theory on leadership that states that the most effective leadership style
always depends on a particular situation.
4. A leadership style where the leader delegates tasks and asks for inputs from
his subordinates in decision-making.
5. The “great man” theory states that________________.
6. A theory that tells that a leader possesses distinct features that distinguishes
him from the group.
7. A style of leadership that only works on highly motivated employees because
the leader does not participate in directing them.
8. A theory that focuses on how leaders behave and assumes that their
leadership traits can be copied by other leaders.
9. The proponent of Traits theory.
10. Before the Behavioral Theory, what theory did Lewin, Lippitt and White
proposed that tackled about laissez-faire style of leadership?

8
Enrichment Activity 2. Comparing and Contrasting theories

Directions: In not more than five (5) sentences, compare and contrast the following
theories

1. Maslow’s Hierarchy of Needs Theory and Adelfer’s ERG Theory

2. Herzberg’s Two Factor Theory and McGregor’s Theory X and Theory Y
3. Reinforcement Theory and Expectancy Theory

Deepen

Among the leadership theories and styles discussed, the essence of leadership
is conveyed through communication. Without communication, no leader and no
manager can perform their functions well in the organization.

Communication is the interpersonal process of sending and receiving

messages through words, symbols or even gestures. As for managerial perspective,
it is the process of exchanging plans and information in order to achieve a mutual
understanding about work-related issues.

Elements of the Communication Process

Sender – the initiator of the message

Encoding – the process of translating the intended message into words and gestures

Message – the encoding process outcome that have been developed to convey
meaning to its receiver

Medium – the method used to convey the message

Receiver – the person with whom the message is exchanged

Decoding – the process of interpreting the symbols into interpreted messages.

Noise – any factor in the communication that interferes with exchanging messages

Feedback – the receiver’s basic response to the interpreted messages.

Management of Change and Diversity

Managing change and diversity means planning and implementing systems

and practice to manage people to maximize the advantages of diversity and minimize
its potential disadvantages.

9
 Diversity recognizes, respects and accepts that everyone is unique and
different from one another in various ways such as beliefs, cultural background and
preferences. Businesses nowadays adopt to the ever-changing environment and
learns that doing it is not only about numbers but also on how the management deal
and treat their employees.

Types of Change in an Organization

Changes in People – people’s attitudes, values, wants and needs, expectations

change as time goes by but changing them for the better is not easy and so Kurt
Lewin formulated the most noted figure in social psychology. He proposed that
change consisted of three broad phases:

Unfreezing stage – this is the stage where the current behavior, assumptions
and attitudes of a system is being openly questions and the desire for change is
generated;

Changing stage – the factors mentioned in the unfreezing stage is consciously

altered in a planned direction;

Refreezing stage – new forms of operation becomes a part of the normal

functioning system.

Changes in Structure – alteration of organizational structure must be done

depending on the needs of the organization.

Changes in Technology – this refers to the change in methods used and

introduction of new technology to cope up with the global technological changes.

Filipino and Foreign Cultures in Organization

Filipino and foreign culture in an organization greatly influences the functions

of a manager and how will his subordinates react on his leadership styles.

Culture is the set of beliefs and values about how a community should act and
do things and Organizational culture is defined as a set of shared values and norms/
standards for behavior and expectation towards achieving organizational goals

Below are some of the Shared Values and Beliefs of Filipinos that influences our
attitude about work:

1. Social Acceptance – this value focuses on the desire to be accepted and treated
well by others especially by our own family.
2. Economic Security – this Filipino value greatly stresses the need to be
financially independent, and that you are expected to stand in your own feet
and be free of any financial liabilities to other in order to support you needs.
3. Social Mobility – this value emphasizes the desire to move up from the social
ladder.

Among the mentioned shared values by Filipinos, the most popular example of
beliefs and practices among Filipinos are the manana habit, ningas cogon and Filipino
Time.

10
Manana habit – common practice among Filipinos to procrastinate what is supposed
to be done now because they think that there will be a lot of time even if they do the
task later.

Ningas cogon - is a Filipino practice that refers to the initial show of interest about a
certain project but gradually lowers during the course.

Filipino Time – this Filipino belief states that being late is acceptable.

These beliefs impose negative effect to organization management and so

Kreitner and Kinicki (2013) cited cultural dimensions to help administrators manage
his subordinates easier:

Gender Egalitarianism -refers to the amount of effort exerted to minimize gender

discrimination;

Assertiveness – refers to how confrontational and dominant one should be in a social

relationship;

Performance Orientation – refers to how much an individual should be rewarded for

improvement and excellence;

Humane Orientation – refers to how much society should encourage and reward
people for being kind, fair, friendly and generous.

Activity 2: Relate and Elaborate!

Directions: Choose and relate the above cited values and cultural dimensions to
yourself as a learner and support your choice by discussing it in not more than 10
sentences.

1. Choose two of the shared values and beliefs among Filipinos and discuss how
it is related in your day to day life as a home-based learner.
2. Which of the cited foreign cultural dimensions do you think is applicable to
you as a learner and how does it contribute to your studies?

11
 Gauge

Directions: Read the statements carefully and supply the correct answer for the
following questions. Use a separate sheet of paper for your answers.

1. A style of leadership that suggests a hands-off kind of leadership.

a. Autocratic Style c. Bureaucratic Style
b. Laissez-faire Style d. Democratic Style
2. This refers to a motivation theory that states that the lower the hierarchy of
need, the greater the need for satisfaction.
a. Herzberg’s Two-Factor Theory c. Maslow’s Hierarchy of Needs
b. Adelfer’s ERG Theory d. Job Design Theory
3. Leadership is an art or process of influencing people so that they will strive to
forcefully and enthusiastically toward the achievement of group goal.
a. The statement is correct
b. The statement is wrong
c. The statement is either correct or wrong
d. The statement id neither correct nor wrong
4. The process of sharing and exchanging of messages among people is what you
call?
a. Motivating c. Motivation
b. Communication d. Communicating
5. Warren Bennis distinguished the difference between a leader and a manager.
Which of the following do not a leader?
a. A leader has a long range of perspective
b. A leader does things right
c. A leader innovates and develops
d. A leader challenges the status quo
6. Statement 1. Man, as a social being prefers to work and interact with people.
Statement 2. Social needs refer to the needs of an individual to feel the sense
of attractiveness and the need for affection.
a. Only statement 1 is correct
b. Only statement 2 is correct
c. Both statements are correct
d. Neither statement 1 nor statement 2 is correct
7. It is the set of shared values and norms for behavior and expectation towards
achievement of organizational goals.
a. Shared Values c. Organizational Culture
b. Culture d. Organizational Structure
8. A Filipino value that greatly emphasizes the need to become financially stable
in order to support basic necessities.
a. Social Mobility c. Social Acceptance

12
 b. Social Security d. Economic Security
9. An element of communication that is used to convey messages.
a. Method c. Meaning
b. Medium d. Message
10. Statement 1. Feedback is the receiver’s expected response to the interpreted
message.
Statement 2. A sender is the initiator of the message and the also the one
who gives feedbacks.
a. Only statement 1 is correct
b. Only statement 2 is correct
c. Both statements are correct
d. Neither statement 1 nor statement 2 is correct
11. This is the stage in which new forms of operation becomes a part of the normal
functioning system among and around the organization.
a. Changes in people c. Changing Stage
b. Refreezing stage d. Unfreezing Stage
12. A common practice among Filipinos is to show an initial interest and
enthusiasm about a certain project but gradually declines during the course.
a. Manana Habit c. Social Mobility
b. Filipino Time d. Ningas cogon
13. It refers to how much the society should reward and encourage people for
being king, fair, friendly and generous
a. Reward System c. Reinforcement Theory
b. Humane Orientation d. ERG Theory
14. A motivation theory that says, an individual tends to act based on expectation
that the act will be followed by an outcome that may be attractive or
unattractive to him.
a. Goal-setting Theory c. Expectancy Theory
b. Job Design Theory d. ERG Theory
15. A leadership theory that states that there is a distinguishing feature that
differentiates a leader from the group.
a. Situational Theory c. Contingency Theory
b. Traits Theory d. Behavioral Theory

Great job! See you on the next learning material!

13
Key Answer
Activity 1.

1. TRUE
2. FALSE
3. FALSE
4. TRUE
5. TRUE

Enrichment Activity 1

1.KURT LEWIN, LIPPITT AND WHITE

2.AUTOCRATIC STYLE
3.SITUATIONAL/CONTINGENCY THEORY
4.DEMOCRATIC STYLE
5.LEADERS ARE BORN, NOT MADE
6.TRAITS THEORY
7.LAISSEZ-FAIRE STYLE
8.BEHAVIORAL THEORIES
9.THOMAS CARLYLE
10.CONTINUUM LEADERSHIP THEORY

Enrichment Activity 2

Varied Answers

Activity 2

Varied Answers

Gauge

1.B
2.C
3.B
4.B
5.B
6.A
7.C
8.D
9.B
10.D
11.B
12.D
13.C
14.C
15.B

14
References

Printed Materials:

Cabrera, Helen Ma. F. et al. (2016). Organization and Management (pp77-100), Quezon City,
Philippines.

Santos, Emmanuel T. (2004). Organization and Management (pp394-421), Manila City,

Philippines.

Rodriguez, Rafael A. and Echanis, Erlina S. (2001). Fundamentals of Management Text and
Philippine Cases (pp371-381), Manila, Philippines: Diwata Publishing, Inc.

Website:

Wikipedia contributors. (2020, September 30). Two-factor theory. In Wikipedia, The Free
Encyclopedia. Retrieved 09:56, October 18, 2020,
from https://en.wikipedia.org/w/index.php?title=Two-factor_theory&oldid=981071263

Wonolo Blog. (2018, June 17.). 6 Benefits of Having a Diverse Workforce. Retrieved, October
20,2020. from https://www.wonolo.com/blog/6-benefits-of-having-a-diverse-workforce

15