Philippine Industries and Management: Workbook in IT 20

Workbook in IT 20:
Philippine Industries
and Management
IT-20, Philippine Industries & Management

RAYMUND R. BANIAGA
Dedication
First of all, I would like to thanks the IM Chief, Dr. Ronald Candy Lasaten and the
CIT focal person, Prof. Jasper Kim Rabago, for their encouragement, dedication,
assistance and guidance in the realization of this learning packet.
To the administration, for allowing us to have a series of seminars on how to
publishers whose materials constitute the sources of this learning packet, without
them this learning packet would not be completed.
To all the students who will be using this Learning Packet, I hope I can give you
what is really expected to learn in this subject.
To my family, who are very supportive and cooperative in assisting me and given me
Above all, to God Almighty for the compassion, health, love and protection to work
and enjoy the lif

Introduction
About this workbook
This workbook has been developed and intended for this subject IT 20 – Philippine
Industries and Management which provides the learner a basic knowledge, concepts, theories,
principles, and methodology for managing a business. This workbook mainly focuses on a
management styles in Philippine setting its type and application that was practice by large and
small businesses. This was extracted from the written books by an expert with various
experiences in management system and design (standards, research and development) that is
simple, clear and practical to college students. This workbook is written primarily for a
student’s – and not for the teachers.
Aside from the terms and questions for review and discussion at the end of every
chapter, a simple and practical questions are presented at the end of a learning outcomes. I
hope and expect that such greater participation of the learners in the learning process will
provide them better understanding about management and apply in their personal and
professional lives in the years to come. I encourage the learner not to rely only on the contents
of this workbook but to read also some other references materials for them to broaden their
knowledge and understanding about managing a business.
I have no claim to the originality of the content of this workbook. My job as a developer
of this workbook is to present the principles and theories of management fundamentals based
from the ideas of the different authors used in this workbook. I believe this is necessary in
helping college students developed their understanding and skills to become competent
managers, service advisor or a leader.
Raymund R. Baniaga

CONTENTS
Dedication
Introduction
About the Workbook
Lessons and Activities
Chapter I. Introduction to Management

1. Definition of management and different function based on Philippine setting
2. Types of Management
Chapter II. The Philippine Business Enterprise

1. Business Basic Resources
2. Philippine Business Environment
3. Business Oppurtunities in the Philippines
4. Investment Potential in the Philippines
5. Business Procedure and Incentives
Chapter III. Business Organization

1. Reasons for going into Business
2. Test for Business Success
Chapter IV. Forms or Business Organizations

1. Entrpreneurial Skills
2. Steps in Starting a New Business
3. The Project Study Basic Phase, General Format
Chapter V. Small Business is Possible

1. Characteristics and Strength of Small Business
2. Difference Between Big and Small Business
3. Advantages and Disadvantagesof Small Buiness
4. Economic Contribution of Small Business
5. Why Small Business Fails
Chapter VI. Industry Analysis/Review

1. Automotive Sectors
2. The Cement Construction Sector
3. The Consumer Sector
4. The Hotel Sector
5. The Mining Sector
6. The Telecommunication Sector
7. The Utility Sector

Chapter VII. Local Industries
1. Nature of Management
2. Types of Management
3. Concept of Management
4. Levels of Management
Chapter VIII. Managerial Roles

1. Managerial Rules of Management
2. Managerial Rule
3. Management Skills
4. Pinoy Managerial Skills
Chapter IX. Business Plan

1. Background Study
2. Marketing Plan
3. Strategic Plan
4. Financial Study
5. Organizational Structure
6. Operational Plan

About the Workbook
The following are the contents of the workbook:
Learning Outcomes. These are the specific learning targets of each

unit based on the topics/lessons presented in the course syllabus of
IT 20 the department based on the competencies reflected in the
COPC of the BSIT program.
Definition of Key Terms. This part unlocks specific words that are
significant in every unit. Definition of these key terms are based on
how they are presented in every lesson for further understanding-
most of them are contextualized.
Concept Building (What You Need to Know). A warm up of the

different lessons based on the specific learning outcomes before the
assessment proper. It contains relevant and up-to-date information
about the lessons tackled in the different units for concept building
which will serve as springboard for the learners for further readings.
Testing Your Brain Power: How Much Have You Learned? A variety
of assessment activities to test the learning outcomes of the learner
in every finished topic. Assessment activities come in many forms-
from objective to subjective assessment modes- to foster further
understanding and appreciation of the lessons.
Developing Your Higher Order Thinking. A higher order, most likely

a combination of cognitive-affective questions, are presented right
after each set of learning tasks to enhance and further boost the
higher order thinking skills of the learner.
Learning Resources. A selection of possible reading materials and a

listing of bibliographic references used in this workbook in various
forms: print media, online retrievals, and film. This will be an added
guide for students in strengthening their understanding of various
concepts presented in the Concept Building (What You Need to
Know).

At the end of the lesson, you
are expected to have a higher
level of understanding and
appreciation of the following:
LO 1. Nature of Management
LO 2. Types of Management
LO 3. Concept of Management
LO 4. Levels of Management
DEFINITION OF KEY TERMS
HANDLOOMS – any various looms or weaving devices operated wholly or partly by hand or
foot power.
MICROMANAGEMENT – as management with excessive control or attention on details.
PERVASIVE – it is a unique feature of planning, spreading widely throughout an area or a group

of people.
SERVANT LEADER – is someone who is servant first, who has responsibility to be in the world,
and so he contributes to the well-being of people and community.
SOCIAL PROCESS – Splitting up of society into social categories that develop into social groups
cooperating, competing, conflicting- for the status quo or social change.

Concept Building:
What You Need To Know
Lesson 1. Nature of Management
LO 1. Explained the Nature of Management.
According to F.W. Taylor, ‘Management is

an art of knowing what to do when to do and see
that it is done in the best and cheapest way ‘.
Management is the art of getting things

done by others. So, you are thinking how? we will
tell you how – at every level in the organization a
manager has to get things done through its
subordinates. At the top level, the subordinates
themselves are managers I.e. a top executive
manager manages other managers. At the middle
level, managers get things done through
supervisors. At the supervisory level, supervisors get
things done through clerks and workers.
The nature of management is briefly discussed through the following points:
1. Management is a Universal Process
The 14 basic principles of management given by henry Fayol are universal in nature. This
means it has the same applicability all over the world. These principles are equally applicable
in different organizations, businesses, government departments and others. The managerial
job is basically the same at all level of organization and in all types of institutions.
2. Management is a Continuous Process
Management is an on-going process. The cycle of management continues to operate as

long as the organization exists. The main objective of this continuous process is to make small,
progressive changes that will provide greater value in the long run. Continuous management
is done for the effective and efficient achievement of goals.
3. Management is Intangible
Intangible means anything which cannot be seen and touched, it can be felt only.
Management is an unseen and invisible force. It cannot be seen but its presence can be felt
everywhere in the form of results. The effect of management can be noticed in an organization
when targets are met according to plans, employees are happy and satisfied.

4. Management is a Social Process
Management is done by people, through people and for the people. Management is a
social process because it deals with people. It is concerned with making the best use of human
efforts. managers have to create co-operation among employees in an organization. they have
to look after the interests of employees, customers, investors, shareholders, community and
stakeholders.
5. Management is an art as well as a Science
Management involves a systematic body of theoretical knowledge as well as the practical

experience of such knowledge. Management is the “art of arts” because it organizes and uses
human talent. It is science also because Management follows a systematic method to find a
possible solution for a problem.
6. Management is Goal-Oriented
The existence of management is for the sole purpose of achieving the organizational goals.
Management directs the energy of all the human resources available in the organization
towards the accomplishment of the predetermined goals. achievement of goals provides
justification for the existence of an organization.
7. Management is a Group Activity
Management requires group efforts in order to achieve the common objectives of the
organisation.it is an activity which is concerned with getting the things done rather than doing
itself. People generally join groups to achieve what they cannot achieve individually. Group
activity is required in all areas of human activity.
8. Management is Being Creative
The proper management means attaining the organizational objectives with the highest
efficiency at the minimum possible cost. The job of managers is to make a productive
enterprise out of available human and material resources. The basic aim of management is the
optimum utilization of the available resources. Effectiveness and efficiency are the two pillars
on which the managerial performance is based.
https://commercemates.com/nature-of-management/

Testing Your Brain Power:
How Much Have You Learned
Identification: Read the following statements and write your answer on the space
provided.

Developing Your Higher Order Thinking
“A business like an automobile, has to

be driven in order to get results.”
B.C. Forbes

Concept Building:
Lesson 2. Types of Management.
LO 2. Gave the Types of Management.
5 Different Types of Management Styles:
The 5 different management styles we explore in this article are: Results-Based,

Democratic, Transformational, Servant Leader, and Transactional.
What Does “Management Style” Mean?
A management style is defined as the way you help your team grow, make decisions
and ultimately, get work done.
1. Results-Based Management Style
“Get it done, and I’ll be happy—I don’t care how!”
Results-based management means that you don’t necessarily need to know—or even
care about—where and how your team is getting their work done. In a results-based
environment, team members have more autonomy to choose how they approach their work
instead of having it prescribed to them.

This type of management style is probably one of the styles of management that
intimately familiar with, as the company, Crema, has a results-based culture.
A results-based management style is on the other end of the spectrum from coercive
leadership in which the person in charge tries to get everyone to comply with their mandates.
The expectation is set that you trust them, like adults, to get their work done—efficiently. This
also means that when team members feel like there’s a better way to get the work done, that
you hear them out and perhaps even change a process so that it’s more efficient.
The primary focus of this management style is exactly what you think it is: results.
Advantages:
This creates an environment of mutual respect and can be very motivating to types of
people prize autonomy and mastery over their work.
Disadvantages
Not all projects, people, or work environments are suited to a results-based paradigm.
Results-based management can leave some people feeling unsupported and can lead to a
sense of isolation or siloing as people work more independently of one another.
Tip For Results-Based Managers
Results-based management styles really work best in work environments where people
have openly bought into the idea of results-based work from the start. Because not everyone
works best with this management style, I find that it’s best to mix this type of management
with others, especially for projects.
2. Democratic Management Style
“You’re the experts, so discuss what you all think is right—let’s just do that!”
Democratic management means engaging your entire team in discussion, particularly

to make decisions, rather than making them in an isolated manner.
Democratic managers usually strongly feel that their team is full of smart individuals that can
come up with great ideas, no matter their role or place in the company.
Advantages
When done correctly, this can create a strong team bond built on trust and lead to
stronger results. This is because everyone has bought into the idea, given their ideas, and the
final product is some combination of everyone’s ideas.
I’ve seen the democratic management style work really well for project teams, because
everyone has ownership over the plan and the work getting done.
A democratic approach to management can also be one of the more effective conflict
management styles, as it encourages everyone to contribute to the conversation, to
participate and to own their part.

Disadvantages
In democratic management, everyone is encouraged to own and contribute to the

decisions—but decisions still need to be made. When everyone owns the discussion, it
sometimes feels like no one does. When not managed correctly, meetings can quickly turn into
a merry-go-round of passing ideas around without making a decisive plan for action.
Tip For Democratic Managers
You have to balance which decisions need entire team discussions, and which decisions
need to be made on their behalf. I think this, along with the results-based management style,
pair well together.
3. Transformational Management Style
“Come on, I’m counting on you to be better. Think bigger, jump higher!”
Transformational management means encouraging team members to go beyond what

they’re comfortable—to focus on areas of change and growth, and always keep up with trends.
Advantages
This management style can be helpful to grow a relatively green team into a high
performing machine within a short amount of time. It’s common to see this style of
management in a startup or fast-paced environment where team members are more effective
when able to adapt to change and forge new ways of problem-solving or thinking.
Disadvantages
The downside of the transformational management style manifests when everyone

becomes so focused on being high-performing that you accidentally create a culture of
burnout. This is because everyone is continually trying to raise the bar.
Tip For Transformational Managers
It’s important that the team knows that while you’re expecting a lot from them, that
it’s still okay for your team to “tap out” and coast for a while.
4. Servant Leader Management Style
“How can I help you do your best work?”
Servant leadership means putting your people first and what needs to get done second.
Servant Leaders place the overall health of the team above the results, with the thought that
if the team is healthy, and you’re creating an environment for that, the project will be better
executed.
Basically, servant leaders do anything in their power to help their team grow and feel
supported.
Advantages
This type of management style is a fan favorite of Digital Project Managers because,
frankly, it produces results. If your team is happy, they’re going to be producing results, even
if the work is not ideal. This is because your relationship with your team doesn’t seem
transactional and it feels like you genuinely care about them.
Disadvantages
Where servant leadership can go wrong is when you become too focused on being
everyone’s friend, rather than work getting done. This can result in the work not really getting
done—and then when you do have to push your team, it can create tension.
Tip For Servant Leaders
It’s important to ensure you find the balance between caring about your team as
people, but also making sure that you’re hitting the mark in terms of results.
5. Transactional Management Style
“Please get it done and stop asking questions—and here’s what you’ll get if you do.”
Transactional management tends to use rewards to motivate teams to get work done.
This is a leadership style that can be easy to fall into, especially when you have a lot going on.
Advantages
Transactional management can provide clear boundaries—a straightforward setup of

cause and effect that can be very helpful for getting short-term gains.
Disadvantages
Because transactional management relies on an explicit exchange (you do this, and I’ll
give you that), when one side of the equation disappears, there isn’t much left to uphold the
other side over the long-term. Take away the reward (a benefit, perk, reward, recognition,
competition, bonus), and commitment to the results soon starts to fade.
Tip For Transactional Managers
Sometimes, as Digital Project Managers, it can feel a little transactional with our
team(s). You can feel like you’re just constantly going to them about the work they’re doing
and maybe don’t have a strong personal relationship with them. That should be a hint that
something needs to change. Your team should be doing the work because they care. Research
shows that rewards are great for promoting quantity, not quality, and that you’re better off
providing intrinsic motivation (e.g., a Developer who loves to solve problems).
https://thedigitalprojectmanager.com/management-styles/

provided.

“It is not the beauty of building you

should look at; it’s the construction of
the foundation that will stand the test
of time.”
-David Allan Coe

Concept Building:
Lesson 3. Concept of Management.
LO 3. Gave the Concept of Management.
Management is required in all kinds of organizations whether they are manufacturing

computers or handlooms, trading in consumer goods or providing saloon services and even in
non-business organizations. No matter what the organization is or what its goals might be,
they all have something in common – management and managers. Successful organizations
achieve their goals by following a deliberate process called ‘management. Management
consists of a series of interrelated functions that are performed by all managers. In simple
words Management is the art of getting things done through people. Let’s understand the
concept of management.
Concept of Management
Some of the common definition of management given by famous writers and thinkers are:
• According to Harold Koontz and Heinz Weihrich, Management is the process of
designing and maintaining an environment in which individuals, working together in
groups, efficiently accomplish selected aims.
• According to Robert L. Trewelly and M. Gene Newport, Management is defined as the
process of planning, organizing, actuating and controlling an organization’s operations
in order to achieve coordination of the human and material resources essential in the
effective and efficient attainment of objectives.
• According to Kreitner, “Management is the process of working with and through others
to effectively achieve organizational objectives by efficiently using limited resources in
the changing environment.
• According to George R Terry, Management consists of planning, organizing, actuating
and controlling, performed to determine and accomplish the objectives by the use of
people and resources.
So, Management can be defined as a process of getting things done with the aim of achieving
goals effectively and efficiently.
Some important terms in this definition are:

1. Process: Process means the primary functions or activities that management performs
to get things done. These functions are planning, organizing, staffing, directing and
controlling.
2. Effectiveness: Effectiveness is concerned with the end result. It basically means
finishing the given task. Thus Effectiveness in management is concerned with doing the
right task, completing activities and achieving goals

3. Efficient: Efficiency means doing the task correctly and with minimum cost.
Management is concerned with the efficient use of input resources which ultimately
reduce costs and lead to higher profits.
it is important for management to achieve goals (effectiveness) with minimum resources i.e.,
as efficiently as possible while maintaining a balance between effectiveness and efficiency.
Characteristics of Management
Basic characteristics of management are:

1. Management is a goal-oriented process: An organization has a set of basic goals which
are the basic reason for its existence. Management unites the efforts of different
individuals in the organization towards achieving these goals.
2. Management is all pervasive: The activities involved in managing an enterprise are
common to all organizations whether economic, social or political.
3. Management is multidimensional: Management is a complex activity that has three
main dimensions:
1. Management of work: All organizations exist for the performance of some
work. Management translates this work in terms of goals to be achieved and
assigns the means to achieve it.
2. Management of people: Human resources or people are an organization’s
greatest asset. Managing people has two dimensions:
1. it implies dealing with employees as individuals with diverse needs and
behavior;
2. it also means dealing with individuals as a group of people
The task of management is to make people work towards achieving the
organization’s goals, by making their strengths effective and their weaknesses
irrelevant.
3. Management of operations: It requires a production process which entails the
flow of input material and the technology for transforming this input into the
desired output for consumption
4. Management of operations: It requires a production process which entails the flow of
input material and the technology for transforming this input into the desired output
for consumption
5. Management is a continuous process: The process of management is a series of
continuous, composite, but separate functions (planning, organizing, directing, staffing
and controlling). These functions are simultaneously performed by all managers all the
time.
6. Management is a group activity: An organization is a collection of diverse individuals
with different needs. Management should enable all its members to grow and develop
as needs and opportunities change
7. Management is a dynamic function: Management is a dynamic function and has to
adapt itself to the changing environment. In order to be successful, an organization
must change itself and its goals according to the needs of the environment.
8. Management is an intangible force: Management is an intangible force that cannot be
seen but its presence can be felt in the way the organization functions
https://www.papertyari.com/general-awareness/management/concept-management/

provided.

“Many people want the government

to protect the consumer. A much
more urgent problem is to protect
the consumer from the government.”
Milton Friedman

Concept Building:
Lesson 4. Levels of Management.
LO 4. Gave your Analysis on the Hotel Sector.

What are the different Levels of Management?
“Sound management is the secret of every successful company.”
I am sure that you must have heard this phrase a lot of times in your life. Every
successful company is built on the hard work of a team. Teamwork and professional
collaboration work on different management levels in companies. These management levels
help define authority and responsibilities within an Organization.
We will be discussing the three levels of Management, which are common in every
corporation. Numerous studies and researches have stated the effectiveness of these
corporate structures. We will be sharing the details along with the functions of each level of
Management.
1. Top-level Management
Top-level Management consists of the senior-most executives and decision-makers in

an organization. Every member of the top Management is responsible for the direction and
growth of the company. Sound top-level management in a company basically defines the
success and future of a company.
All the C-level executives and some other designations fall under this category. To name a
few, some of the top-level designations are –

• Chief Executive Officer
• Chief Marketing Officer
• Chief Sales Officer
• Chief Technology Officer
• President
• Managing Director
• Vice-president
• Chief Operating Officer
• And a few other designations
The right set of people in the top-management can make or break an organization. We
would also like to enlighten you about the functions that these executives perform within an
Organization –
• Top-level Management is responsible for strategizing and making plans for the
business. They form the company’s vision and mission, which helps every employee
and the customers understand the fundamentals of every business.
• They design the functions and responsibilities of middle-level Management. They will
assign tasks and goals for the employees to follow.
• Top-level Management drafts the policy of the company
• They manage the finance and all obligations of the company. In total, they are solely
responsible for the survival and growth of the Organization as a whole.
2. Middle-level Management
Middle-level Management consists of the heads of various departments in an

organization. These executives are responsible for communication between top-level
Management and the lower level of Management. They handle most of the executions and
micro-management within an organization.
Some of the standard designation titles of mid-level management executives are –
• Marketing Manager
• Purchase Head
• Sales Manager
• Operations Manager
• Branch Manager
• Finance Manager
• And similar other designations
There is a basic set of functions and responsibilities which are handled by middle-level
executives. Primary of these are –
• Communicate the policies and the mission set by top-level Management. They are
responsible for handling all the communications and maintaining a healthy business
environment in the office.
• Micro-manage the tasks performed by every member of the lower-level Management.
They are responsible for all the coordination between teams.
• They are responsible for the performance of lower-level executives. Motivating and
encouraging employees to work efficiently is a crucial responsibility.
• Middle-level Management handles all the recruitments and allocations within a team.
They hire the employees and manage company resources for optimum use.
3. Operational/Lower level Management
Operational level management is responsible for managing the coordination between

the operative workforce and middle-level Management. They micromanage specific tasks to
operative workers and manage teams. Operational level management has very few decision-
making powers and generally execute orders of the middle-level management.
Some of the standard designations of operational level management executives are –
• Supervisor
• Foreman
• Clerk
• Junior Managers
• Inspectors
• Sub-department executives
Just like all other levels of Management, their role is critical in the success of an organization.
The difference lies in the fact that they do not make critical decisions, and their efficiency and
performance depend on middle-level Management. Some of the essential roles played by
operational level management are –
• The most critical responsibility of operational level management is to communicate the

challenges and grievances of operative workers.
• They are responsible for training the workers and micro-managing their progress.
• They are responsible for maintaining healthy working conditions for workers and
improving the efficiency of tasks. Operational level workers make sure that all
guidelines of operations are followed in the company.
• These executives manage company resources and also work towards the optimum
utilization of these resources.
• They help the middle-level Management in assessing employee performance and all
other roles of the human resources department in the company.
https://www.easymnotes.in/levels-of-management/

provided.

“Your most unhappy customers

are your greatest source of
learning.”
Bill Gates

Learning Resources
Fajardo, Feliciano R. (1997) Management, Rex Book Store, Inc.
Franco, Ernesto A. (1986), Pinoy Management. National Book Store Inc.,
Tan Tek Meng et al. (1996), Business Opportunities in the Philippines. Singapore: Nanyang Business
School, Prentice Hall,
Zulueta F. et al. (1999) Management: theories and Practice. Mandaluyong City: Academic Publishing
Corp.,
https://commercemates.com/nature-of-management/
https://thedigitalprojectmanager.com/management-styles/
https://www.papertyari.com/general-awareness/management/concept-management/
https://www.easymnotes.in/levels-of-management/

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Workbook in IT 20:

IT-20, Philippine Industries & Management

To the administration, for allowing us to have a series of seminars on how to

IT-20, Philippine Industries & Management

About this workbook

IT-20, Philippine Industries & Management

Chapter I. Introduction to Management

Chapter II. The Philippine Business Enterprise

Chapter III. Business Organization

Chapter IV. Forms or Business Organizations

Chapter V. Small Business is Possible

Chapter VI. Industry Analysis/Review

IT-20, Philippine Industries & Management

Chapter VIII. Managerial Roles

Chapter IX. Business Plan

IT-20, Philippine Industries & Management

The following are the contents of the workbook:

Learning Outcomes. These are the specific learning targets of each

Concept Building (What You Need to Know). A warm up of the

Developing Your Higher Order Thinking. A higher order, most likely

Learning Resources. A selection of possible reading materials and a

IT-20, Philippine Industries & Management

DEFINITION OF KEY TERMS

MICROMANAGEMENT – as management with excessive control or attention on details.

PERVASIVE – it is a unique feature of planning, spreading widely throughout an area or a group

IT-20, Philippine Industries & Management

Lesson 1. Nature of Management

LO 1. Explained the Nature of Management.

According to F.W. Taylor, ‘Management is

Management is the art of getting things

The nature of management is briefly discussed through the following points:

1. Management is a Universal Process

2. Management is a Continuous Process

Management is an on-going process. The cycle of management continues to operate as

IT-20, Philippine Industries & Management

5. Management is an art as well as a Science

Management involves a systematic body of theoretical knowledge as well as the practical

7. Management is a Group Activity

8. Management is Being Creative

IT-20, Philippine Industries & Management

IT-20, Philippine Industries & Management

“A business like an automobile, has to

IT-20, Philippine Industries & Management

Lesson 2. Types of Management.

LO 2. Gave the Types of Management.

5 Different Types of Management Styles:

The 5 different management styles we explore in this article are: Results-Based,

What Does “Management Style” Mean?

1. Results-Based Management Style

“Get it done, and I’ll be happy—I don’t care how!”

IT-20, Philippine Industries & Management

Tip For Results-Based Managers

2. Democratic Management Style

Democratic management means engaging your entire team in discussion, particularly

IT-20, Philippine Industries & Management

In democratic management, everyone is encouraged to own and contribute to the

Tip For Democratic Managers

3. Transformational Management Style

Transformational management means encouraging team members to go beyond what

The downside of the transformational management style manifests when everyone

Tip For Transformational Managers

4. Servant Leader Management Style