ORGANIZING

Chapter 4
Learning Outcomes:
1. Discuss the nature of organizing;
2. Identify the key elements of organizational
structure;
3. Determine the various approaches to
departmentalization;
4. Describe the organizational approaches and
theories; and
5. Explain the concept of delegation.
Lesson 14: Nature of Organizing
Organizing is the process of arranging and allocating the work among
members of the organization so that organizational goals can be
efficiently achieved.
- Stoner and Wankel (1987)
Organizing is arranging and structuring work to accomplish
organizational goals.
- Robbins and Coulter (2012)
The management function of properly structuring, arranging, and
coordinating the work activities to efficiently achieve organizational
goals and objectives.
- The author, Nick Aduana
Benefits of Organizing
A. It actualizes the philosophy of Work
Specialization
• Work Specialization or Division of Labor has been
attributed to Adam Smith who believes that the
productivity and efficiency of workers will increase once they
specialize in one specific task instead of completing the
whole task.
• Organizing is grounded on the concept of division of
labor or work.
• If the workload becomes bigger, dividing it among
departments and individuals becomes a must.
B. It departmentalizes common activities.
• Departmentalization means grouping of similar work
activities.
• After knowing who will perform the task or job, the next
thing is to group together common functions.
• Departmentalization may be done by functional areas,
geographic location, product lines, process, or customer
types.
C. It clarifies the chain of command
• Extends from the highest level of the organization down to
the lowest level and determines to whom an employee
should report.
• The chain of command rests on three important concepts –
authority, responsibility, and unity of command.
D. It defines the job description
• Job Description – a well-organized business structure has adopted
a written statement about the content of a particular job in the
organization.
E. It promotes work coordination.
• The workflows become smooth, and jobs are properly
coordinated in terms of communication, documents, raw
materials, supplies, work in progress, finished goods, and
movements of the workforce.
F. It establishes the formal organizational structure.
• Organizational Structure refers to the formal arrangement and
relationship of jobs operating in the organization.
• The structure is virtually depicted in the so-called “Organizational
Chart”
 Structuring

Monitoring Defining
and Work
Reorganizing Activities

Organizing Activities ORGANIZING

Coordinating Dividing
Work Flows Total Work

Grouping
Similar Work
 Organizing Activities
• Structure the Entire Organization
• The first activity that the business must undertake once goals are
set in accordance with the SMART principle is to structure itself
properly in order to efficiently achieve the desired outcomes.
• Structuring in this context refers to the design of the organizational
structure best fitted to meet the desired goals.

Structuring

Defining Monitoring
Work and
Activities Reorganizing
 Organizing Activities
• Define Work Activities Properly
• The entire structure of the organization may have varying degrees of
work ranging from simple tasks to very complicated or intricate jobs.
• Regardless of the level of task to perform, each work should have
defined specifications and descriptions so as not to create confusion,
doubts, and trouble among the members of the organization.

Defining
Work
Activities

Dividing
Total Work Structuring
 Organizing Activities
• Divide the Total Work
• Accomplishing the business goal cannot be done by one person alone.
• The division of the total workload will make the burden light and
facilitate the initial accomplishments of designated tasks.
• Job specialization is highly encouraged to be adopted by a business with
different types of activities.

Dividing
Total
Work
Grouping Defining
Similar Work Work
Activities
 Organizing Activities
• Group Similar Work
• This will improve the productivity of workers and the entire organization
as well.
• Wastes in time, materials, or supplies are eliminated, and a greater
number of output in terms of finished products or services can be
expected

Grouping
Similar
Work

Coordinating Dividing
Work Flows Total Work
 Organizing Activities
• Coordinate Workflows
• The activities of individuals, groups, or departments are meant to
contribute to the accomplishment of the desired goal.
• These activities should be coordinated to address what the business
expects to meet.

Coordinating
Workflows

Monitoring Grouping
and Similar Work
Reorganizing
 Organizing Activities
• Coordinate Workflows
• The activities of individuals, groups, or departments are meant to
contribute to the accomplishment of the desired goal.
• These activities should be coordinated to address what the business
expects to meet.

Monitoring
and
Reorganizing

Coordinating
Structuring
Work Flows
Purpose of Organizing
• Organizing, as evidenced by the different levels of
management, is designated to achieve the following
purposes:
a. Divide the entire work activity into specific jobs.
b. Define the tasks and responsibilities attached to the job.
c. Group Similar or related work activities.
d. Coordinate various work activities of individuals and
groups.
e. Establish a line of authority in the organization.
f. Facilitate efficient accomplishment of expected outcomes.
g. Present clearly the organizational structure of the business.
Organizational Structure
Lesson 15
Organizational Structure
• The structure of a building usually determines its size,
physical appearance, and purpose for which it has been
constructed.
• Since businesses vary in terms of size, nature, and
purposes, their organizational structures will likewise
vary.
• There is no standard organizational structure that will
best fit all types of business organizations.
• The common denominator, however, is that the
organizational structure should be aligned with the
business goals and objectives, resources, and demands
of the ever-changing business community.
• When there is a demand to change the structure, it
becomes the primary task of the manager to create a
new one or simply to change the old structure.
• The process of changing completely the old structure by
creating a new one, or simply modifying the existing
structure is called “Organizational Design”
Key Elements in Organizational Design
• The structure of any organization is
interchangeable.
• An effective and efficient organization is flexible.
• When there are new trends and developments
brought by powerful forces in the environment,
the organization must change.
a. Specialization of Work Activities
b. Departmentalization
c. Chain of Command
d. Span of Control
e. Centralization and Decentralization
f. formalization
Departmentalization
• Simply refers to the grouping of similar or related jobs in the
organization.
• When the business has already formalized the arrangement of
jobs and work activities, the business prepares its
organizational structure.
• The visual appearance of the organizational structure is
reflected in a diagram called the organizational chart.
• The common approaches to the departmentalization of jobs
are:
a. Functional approach
b. Geographic approach
c. Product Approach
d. Process Approach
e. Customer Approach
 Functional Approach
• The most common departmentalization approach to
organizing. It is usually adopted by small businesses
whose product lines are limited.

President

VP - VP -
VP - Marketing VP – Finance
Operations Administration
Functional Approach
Advantages Disadvantages

a. Enhances the concept of specialization

since workers with common knowledge, a. Limits or confines the goal of the
skills, and technical capabilities are functional unit within its area.
grouped together.

b. Encounters some degree of difficulty in

b. Properly coordinates work within the
making decisions when product lines
functional area.
are increased.

c. Experiences poor communication

c. Improves the efficiency of workers.
among functional areas.

d. Encounters problems in coordinating

d. Easily supervises jobs.
the entire organizational direction.
 Geographical Approach
• Organizing in this approach is based on location or
geographical area.
• Business firms that have wider operational coverage like
the whole Philippine archipelago, entire Southeast Asia,
Europe, or the United States ordinarily adopt this
approach.

President

VP – Northern VP – Central VP – Southern VP – Western VP – Eastern VP -

Luzon Luzon Luzon Visayas Visayas Mindanao
Geographical Approach
Advantages Disadvantages

a. Properly addresses varying customer

a. Duplicates functions
needs based on regional units.

b. Gives immediate answers to unique

b. Incurs higher cost of maintenance
regional issues.

c. Fits marketing strategies to each

c. Isolates the functional unit from other
regional unit with unit’s customers’
units.
demographic profile.

d. Suits easy-to-develop marketing

designs to the needs of the customers.
 Product Approach
• The product approach to departmentalize the
organization appears to be fitted to a business firm that
has multiple products of different characteristics.

President

VP – Computer
VP – Household VP – Garment VP – Dairy
Parts and
Appliances Products Products
Accessories
Product Approach
Advantages Disadvantages

a. Promotes specialization resulting in

efficiency of workers in a particular a. Duplicates other management functions.
division.

b. Immediately acts upon problems relative b. Limits the workers’ view of the
to the product. organizational goals and objectives.

c. Incurs higher cost in handling the

c. Properly addresses customer needs.
operational activities

d. Benefits managers in gaining expertise on d. Shows some tendency to compete with

their individual products the other divisions.

e. Fosters better coordination of work

activities and decisions.
Process Approach
• There are business firms that employ different processes
in manufacturing a product.

General
Manager

Supervisor –
Supervisor - Supervisor – Supervisor -
Sewing and
Assembling Painting Finishing
Planning
Process Approach
Advantages Disadvantages

a. Enables workers to specialize in their a. Limits the activities within a department

work only to certain products.

b. Inability to control delays and problems

b. Fosters efficient flow of activities in one process may cause delays in
succeeding departments

c. Experiences better coordination of c. Limits the workers’ view of the

activities and decisions organizational goals.

d. Enables easy detection of product

defects.
 Customer Approach
• Business firms may also design the organizational
structure based on the needs of the target customers
since the needs and preferences of the customers vary.

President

VP – Individual VP – Industrial VP – VP – Foreign

Customers Customers Government Customers
Process Approach
Advantages Disadvantages

a. Immediately acts on customer’s needs

and problems leading to customer a. Duplicates organizational functions.
satisfaction

b. Fits marketing strategies to specific b. Limits the workers’ view of the

customer’s requirements organizational goals

c. Draws the department closer to the

c. Incurs higher operational cost.
customers
Cross-Functional Approach or Mix Approach
• There are instances when the organization may combine
different approaches in order to meet the needs and
maximize the satisfaction of the customers.
• For example, the business combines the functional and
customer approaches to departmentalization.
• This usually happens when the task is complicated and
involves several departments.
• In this approach, some of the employees report to two
or more managers or supervisors.
Organizational Structure
• There is no such thing as the best organizational
structure.
• The management can design a departmentalization
scheme that will efficiently achieve the goals and
objectives of the organization by considering the
business’s limited resources, size, task to accomplish,
and nature of operations.
Organizational Approaches and Theories
Lesson 16
Organizational Approaches and Theories
• Management experts have different views on the desire
of the organization to become productive and efficient
in the attainment of its goals and objectives.
• The organizational approaches discussed herein are:

Contingency
Approach
Neoclassical
Approach
Classical
Approach
Classical Approach
• The classical approach to organizational design is linked
closely to the philosophy of the early management
thinkers who thought that there was a universal
approach to designing the structure of the organization.
• The “Theory of ‘one best way’”
• Frederick Taylor, Henri Fayol, and Max Weber are strong
advocates of the “one best way” theory.
• They argue that an organization gains a competitive
advantage in the industry once it has a bureaucratic
structure.
• The hierarchical structure of the business formalizes the
authority within the organization, and the members are
likewise provided with concrete guidelines in the
execution of their designated tasks.
• This theory is anchored on the organizational principles
of the bureaucracy, specialization of tasks or division of
labor, and routinization of tasks.
• An organization with a formal bureaucratic structure is
believed to be effective and efficient in handling its
operation.
• The classical approach and the accompanying theory of
the “one best way” consider plainly the structure of the
business as the only mechanism that will help the
organization achieve its goals and objectives.
Neoclassical Approach
• This approach to organizational design merely modifies
to a certain extent the classical approach and the theory
of “one best way”.
• Adds the human factor in the design of the
organizational structure.
• Strongly believed that satisfied employees of the
organization significantly contribute to the attainment of
much-desired goals and objectives, in addition to the
bureaucratic structure.
• Subordinates should participate in the decision-making
and human relations in the organization to improve the
productivity of the workers in general.
• Parallel to the neoclassical approach of organizational
design, Douglas McGregor postulated Theory X and
Theory Y on the work behavior and motivation of
workers in the organization.
• Theory X. This theory assumes that workers, most
especially at the low level or the so-called unskilled
workers, must be closely supervised.
• Workers are believed to have an aversion to work, and
they lack the necessary motivation.
• They will work or discharge their assigned tasks when
supervisors are around checking and monitoring their
activities.
• Theory Y. In theory Y, workers are assumed to be
working even without the presence of the supervisor.
• Workers are properly motivated and satisfied in their
work and they take responsibility for their work
performance.
• It is believed that most workers at the upper-level desire
greater achievement, and they belong to the category of
Theory Y.
Contingency Approach
• Both classical and neoclassical theories revolved around
the philosophy that there is a single and ideal way to
design the organizational structure of the business firm.
• The contingency approach, on the other hand, postulates
that the appropriate organization design is highly
dependent on several factors surrounding and existing
within the organization.
• The factors or variables influencing the design of the
organizational structures include the following:
a. Environment (both internal and external)
b. Technology
c. Strategy
d. Resources
• Various studies revealed that environmental factors
significantly influence the design of the organizational
structure.
• The advancement of technology undoubtedly contributes
to the design of organizational structure.
• The contingency approach also works on the theory that
business strategies and resources have a direct influence
on the overall organizational design.
Concept of Delegation
Lesson 17
Delegation
• Refers to the formal assignment of authority,
responsibility, and specific task to another person
resulting in the creation of accountability of the
latter.
• The person to whom the authority has been
delegated, who is usually a subordinate, must
accept the delegation. Otherwise, the delegation
is not fully materialized.
The Concept of Delegation has the following elements:
1. Authority
2. Responsibility
3. Accountability
4. Unity of Command
5. Span of Control
 Authority
• Refers to the inherent managerial right to issue orders or
command subordinates in the organization on what to do.
• This right is inherent since the authority to give orders is
attached to the position and not dependent on the personal
qualifications and characteristics of the person holding the
position.
• The person vested with the authority has the power to give
orders.
• The different types of authority existing in the organizational
structure are:
a. Line authority
b. Staff Authority
c. Functional Authority
Line Authority
• The manager can give direct orders to the
subordinates.
• The manager who executes the line function does not
only suggest to the subordinates what to do but also
directs them to perform the specified tasks.
• The solid line connecting the operations manager and
the operations workers in the figure below reflects the
line authority existing in the structure.
 General
Manager

Internal
Auditor

Human Operations Research and

Resource Manager Development
(HR) Manager Manager

HR Staff R&D Staff

HR Staff R&D Staff

Operations
Workers
Staff Authority
• There are instances when the manager seeks the
technical assistance of some staff from other
staff.
• Staff function is inherent to departments having
staff or advisory tasks.
• Departments or individuals vested with staff
functions cannot give direct orders to other
departments with line functions but may suggest
advice on their areas of specialization.
Functional Authority
• The basic concept is that the staff function is
limited only to giving advice to line departments.
• The staff does not give orders to line personnel.
• There are instances, however, when a staff
department may be able to control, to a certain
extent, activities of the line department that are
related to the activities of the staff department.
Responsibility
• Refers to the organizational obligations of
the individual to perform the designated
tasks prescribed in the position.
• the organizational concept of responsibility
is directly related to the assignment of tasks.
• Individuals occupying the position are
responsible and discharging the functions
and obligations of the job.
 Accountability
• Simply refers to being held answerable for the results or
consequences of the organizational activities of individuals
in the entire business firm.
• It cannot be separated from authority and responsibility.
• It provides the essence and backbone to the key
organizational concepts.
• The extent of accountability differs among members of the
organizations, particularly the manager and the
subordinates.
• The accountability well most of the subordinates is limited
primarily to their activities.
• However, the accountability of the manager extends to both
his or her activities and those of the subordinates.
 Unity of Command
• Means that workers or subordinates should report only
to one boss or supervisor.
• Requiring workers to report to two or more
supervisors or managers will create confusion among
the workers. With the supervisors to report to, the
accountability of the subordinates will be difficult to
pinpoint or measures.
• The chain of command, otherwise known as the scalar
chain, refers to the line of authority that extends from
the highest level to the lowest level of the
organization.
Span of Control
• Refers to the number of subordinates that are
directly supervised and controlled by the
managers.
• There is no standard number of employees under
the supervision of a manager though the
traditional view recommends 5 to 6 workers as
the ideal number.
Formal and Informal
Organization
Lesson 18
Formal Organization
• A formal organization has a structured organizational
design, operates with a formal communication flow, and
employs standard lines and seizures for the individual or
groups to follow.
Informal Organization
• Composed of a group of individuals without a formal hierarchical
structure, it emerges out of related interpersonal relationships,
needs, perceptions, and interests.
• In any formal organization, there always exists an informal group.
• There are more informal groups than formal groups in any
business or organization.
• Studies conducted by experts in the field revealed that informal
groups have a strong influence on the organization.
• Managers at all levels, therefore, should not belittle the inherent
force of the informal group to influence other members of the
organization.
The informal groups are
classified as follows:
a. Horizontal groups
b. Vertical groups
c. Cross-functional or mixed groups
Horizontal Groups
• This type of informal group is composed of employees
within the same level or line of the different units, divisions,
or departments.
• For example, the clerks of the different functional areas may
form an informal group. In a similar manner, the professors
of different disciplines may group and form an informal
organization.
Vertical Groups
• The vertical group is composed of employees from different
levels of management.
• For example, the group formed by this provisor and his or
her subordinates is an informal group.
Cross-functional or Mixed-group

• This informal group is composed of employees from

different functional areas and various levels of
management.
• The informal group formed by the marketing manager and
several clerks of another department is an example of cross
functional or mixed group.
Advantages of Informal Groups
A. Facilitates faster decision-making.
B. Promotes cooperation among several departments.
C. Satisfies the social and cultural values of the members.
D. Serves as a protective mechanism of employees.
 Disadvantages of Informal Groups

A. Conflict may arise among informal groups or between

them and the management.
B. Informal dissemination of information may result in
rumors.
C. Members are unwilling to change views, interests, and
ambitions.
Chapter 5
At the end of this chapter, the students
should be able to:
1. Define staffing;
2. identify the steps of the staffing process;
3. describe the concept of human resource planning;
4. explain the recruitment and selection process; and
5. discuss the concept of training, appraisal, and rewards.
Lesson 19
Definition and Nature of Staffing
Definition and Nature of Staffing
• Staffing refers to the management function involving the
selection of the right individuals and the training and
development required to make them effective in their
designated positions.
• Staffing, like planning and organizing, undergoes several
stages, but its ultimate goal is to have the qualified person
for the right position at the right time.
The Staffing Process
• The process of matching the requirements of
the position with the educational qualification,
knowledge, skills, talents, behavior,
perceptions, and attitudes of a person.
• It is the process of selecting the right person for
the right position.
Staffing involves the following stages or phases:
a. Human Resource Planning
b. Recruitment
c. Selection
d. Orientation
e. Training and Development
f. Performance Appraisal
g. Transfer
h. Separation
 Human Resource
Lesson 20 Planning
Human Resource Planning
• Refers to the way of identifying the current and future human
resource requirements of the business.
• The first stage of the staffing process otherwise known as
workforce planning.
• The manager at this stage usually answers the following
important questions:
a. Who is the right person for the position?
b. What are the right skills required by the position?
c. Where is the right place to perform the tasks?
d. When is the right time to carry out the job?
e. How much is the cost of hiring a qualified person?
Current Personnel Requirements
• The manager usually starts human resource planning by
identifying the current personal requirements of the
business.
• Job analysis or human resource audit is an assessment
method that defines a particular job and attributes
necessary to perform the tasks. It is highly emphasized that a
job is identified based on a defined organizational structure.
• The usual product of job analysis is job description and job
specification.
Job Description
• Describes the content of the job and its location in the
organizational structure.
• For example:
General Accountant: Reviews the draft financial statements of the branches, assists
in determining the cost of the product, prepares the consolidated financial statements
at the year end, in submits reportorial requirements to government agencies. He or she
reports directly to the vice president for finance.

• When the job being classified is a managerial position level,

the formal statement is technically referred to as a position
description.
• Job description is accompanied by job specification.
Job Specification
• Sets the minimum requirements, identifies the educational
qualifications, and defines the required experiences, skills,
attitudes, and personal attributes for the position.
• For example:

Must be certified public accountant; has a master’s degree; five years experience
in a manufacturing industry with a supervisory position; sufficient background in
cost determination and analysis; with good oral and written communication
skills; can work under pressure, and with good interpersonal skills.

• The job description and job specification are tools by

managers when choosing interested applicants for the
position.
Future Personnel Requirements
• In the process of assessing the future requirements, the
manager recognizes two distinct events – the future demand to
create new positions and the future demand for the current
positions.
• The creation of additional positions given business growth in
terms of geographical market, new product lines, or new
industrial equipment or machines. Once the business expands
its operations increases the number of its branches or even
constructs additional processing plants, there is always a need
to create a new position.
• The need to upgrade the qualifications of the present or existing
position – no new position must be created, but the job
specification of the current position must be upgraded.
Human Resource Planning Steps
1. Analyze The Present Needs.
• Analysis of the present workforce requirements requires
critical evaluation of the environment of the business, both
external and internal. Whether the manager likes it or not,
the business is operating in a particular environment that
has substantial, direct, or indirect bearing on the workforce
requirements.
2. Evaluate The Future Requirements.
• The manager should be able to predict or forecast the
future workforce requirements of the business.
Human Resource Planning Steps
3. Determine The Availability Of Workforce Supply.
• The availability of the future workforce supply is not only concerned
with the estimated number of people. It also requires the necessary
capability of the individual to meet the requirements of the position.
The right number of people with the right skills should be available at
the future time. The manager may consider the internal supply of the
workforce in addition to the external supply.
4. Formulate The Development Plan.
• The workforce demand-supply analysis and all instances should be
done in writing to properly guide the manager in decision-making. The
workforce development plan should also include possible training,
seminars, in development for every future position.
Performance Tasks 3 & 4
• Refer to the Brightspace LMS.
Recruitment and Selection Phases
Lesson 21
Recruitment
Refers to the method of attracting and identifying qualified
applicants based on the job description and specifications.
Recruitment
• Basically, recruitment involves attracting and
identifying a suitable workforce.
• This task defines the primary objective of
recruitment which is to attract and identify the
most qualified persons from a group of
applicants.
• Two types of recruitment are:
• General Recruitment
• Specialized Recruitment
General Recruitment
• The business searches for a group of workers for
a particular position that involves a simple
method.
• The business does not usually encounter any
difficulties in general recruitment.
• For example:
• 5 Drivers to different offices
• 3 Office Clerks
Specialized Recruitment
• When the business organization desires a specific
individual to handle a specialized position which
is usually a high-level position, the business
conducts specialized recruitment.
• In this type of recruitment, the position to be
filled requires specialized tasks with advanced
training and experience.
• For Example:
• Chief Finance Officer
Sources of Recruitment
• The available source of job applicants for the
organization can be either:
• Internal
• External
Internal Source
• The employees from within the business serve as
the internal source of available and capable
applicants for the vacant or newly created
positions.
• Locating or identifying job applicants using the
internal source indicates that the business
attracts, encourages, entertains, and recognizes
the personnel from within the organization.
 External Source
• The external source of job applicants
include the following media or venues:
a. Advertising
b. Internet
c. Labor Trade Fairs
d. Online Job Boards
e. Social Media
Concept Of Derecruitment
• The opposite of
recruitment is called
derecruitment.
• The method of
reducing the
workforce of the
business organization.
• There are instances,
however, when the
business is forced to
decrease its workforce
because of
unfavorable business
conditions.
 Concept Of Derecruitment
A. Transfer
• This is the recruitment
form in which an
employee is moved
downward or
demotivated to a lower
position. Though there is
no reduction in cost or
salary expense since
Philippine labor laws
strictly prohibit the
diminution of salary, the
transfer of an employee
can minimize any
imbalances in supply and
demand for the labor
force.
 Concept Of Derecruitment
B. Early Retirement
• Based on Philippine labor
laws, the compulsory
retirement age for
employees is 60 years old.
Businesses, however, may
offer the option of early
retirement to employees as
a mechanism of
derecruitment. To
encourage employees to
avail themselves of the
early retirement scheme,
business organizations
commonly offer attractive
compensation packages and
benefits.
Concept Of Derecruitment
c. Firing
• This is a mechanism
of streamlining the
workforce through
permanent involuntary
termination. Managers
do not usually fire
employees without a
valid reason, probable
cause, and due
process that should be
accorded to employ
employees.
Concept Of Derecruitment
d. Layoff
• this is a kind of
derecruitment wherein the
services of the worker are
involuntarily terminated
temporarily. Though the
terms firing, and layoff are
interchangeably used,
firing is permanent in
character while layoff is
considered temporary.
Concept of Derecruitment
e. Job Sharing
• This type of derecruitment
does not happen in the
Philippine context. It is a
practice of having two or
more employees sharing a
full-time position. This type
of working arrangement
easily creates conflicts
among the employees
assuming the same single
job.
Concept of Derecruitment
f. Attrition
• In this
derecruitment
form, the
business does
not fill out the
position vacated
by an employee
because of
retirement or
resignation.
Selection
Otherwise known as screening, is the staffing stage that
involves determining the best-qualified applicants for a
particular job.
Selection Tools
a. Application
screening
• In this selection
tool, the
interested job
applicant submits
the application
letter, resume, or
application form,
signifying his or
her earnest desire
for the position.
Selection Tools
b. Written Test
• This is a written
examination conducted
usually during the
selection method to
evaluate the level of
intelligence, ability,
aptitude, personality, or
interest of the job
candidate. The written
test must be related to
the job and is composed
of multiple-choice
questions.
Selection Tools
c. Interviews
• This screening tool for job
applicants is very useful
for positions that require a
higher level of technical
abilities, especially for a
supervisory or managerial
position. For this medium
to become effective, the
person conducting the
interview must focus
mainly on job-related
questions.
Selection Tools

d. Background Investigations
• The primary objective of background investigation as a
tool in selecting the job candidate for a particular
position is to verify the veracity of the application data.
Job candidates often are required to attach the
transcripts of records, employment records,
certificates, diplomas, board examination ratings, and
other types of documentary evidence to the application
letter together with the resume, including the
character references.
Selection Tools
e. Physical And Medical Examinations
• The physical or medical examination as a screening
tool determines whether the job applicant is healthy
and physically fit for the job. Companies consider
physical capacity as a very significant attribute to the
applicant. It should be remembered that the human
workforce is a very important resource of the business.
Sickly and physically unfit employees may be the
company’s bane rather than its boon for they will
project an unsavory image of the company to the
business community.
Orientation and Training
Lesson 22
Orientation
Refers to the staffing process of introducing the newly hired employee
did the organization and the specific job assignment.
 Orientation
• The employees have their own customs, traditions, practices,
and culture. At the same time, the business organization has its
own distinct culture too.
• Once the individual is hired after hurdling the final selection
stage, he or she does not immediately perform assigned tasks.
Instead, the newly hired employee must undergo a complete
orientation session.
• Basically, the two types of orientations are:
• Organizational Orientation
• Job Orientation
Organizational Orientation
• This type of orientation briefs the new employee about the
company in general including the company's vision and
mission, goals and objectives, historical background,
philosophical values, general procedures, guidelines, rules
and policies, physical structures of the business, and various
offices, and their heads or supervisors.
• The primary objective of this orientation is to familiarize the
newly hired employee with the nature and culture of the
company.
Job Orientation
• In the job orientation, and newly hired employee is
introduced to the different activities of the job, including the
expected accomplishments at the end of the day or week.
• Newly hired employees who have been properly oriented
have a clear and concrete direction in their assigned tasks.
• Through the orientation process, newly hired employees get
an initial taste of acceptance, friendship, and camaraderie of
the entire organization and this eases the feeling of being a
stranger in the company.
Training Stage
Refers to the staffing process of enhancing the knowledge, skills,
abilities, attitudes, and competencies of employees, both old and newly
hired, for the present and future demands of the position period
Training Stage
• There is a need for employees to be trained not only to
become competitive but also to keep abreast and the
changes in developments happening in the industry they
belong in.
• Training is conducted for newly hired employees, the
primary objective is to equip them with the necessary skills
required by their positions.
• Training is conducted for old employees aims to upgrade or
update them on their job descriptions very specifications
brought about my internal or external environmental
factors.
Types of Training
• Training has been broadly classified as follows:
• General Training
• Specialized Training
• other types of training may include
• Generic training
• Cross-functional training
• Leadership Training
General Training
• This type of training applies to all types of employees in the
organization. It includes training on the improvement of
communication skills, computer system applications,
technological skills, personal growth, customer service,
supervisory skills, and managerial skills.
• The training design and efforts are all directed at improving
the skills and abilities of the employees to ensure that they
meet the demands of their positions.
Specialized Training
• This type of training is usually conducted to meet the
requirements of regulatory bodies and agencies of the
Philippine government, or the specific requirements of the
industry where the business operates. You know
• it includes compliance training, product development, and
knowledge, cultural awareness and diversity, ethics and
governance, and accreditation standards.
• The company requires its employees to undergo specialized
training because there is an order, law, or policy requiring
such, or the company needs to be properly informed of new
requirements or standards.
Generic Training
• This type of training is primarily designed to improve the
skills, abilities, and competencies of the individual employee
in order to become effective and efficient and the tasks
required by the position
Cross-Functional Training
• This training or development program is designed for
employees from different functional areas.
• The employees are trained simultaneously to synchronize
the development of skills and competencies among various
units. The training aims to ensure smooth flow from one
department to another.
Leadership Training
• This type of training is conducted to develop and improve
the managerial skills, decision-making process, in judgment
of managers at various levels.
Methodologies of Training
• The different training methodologies are broadly classified
as follows:
• On-the-job training
• Off-the-job training
• Technology-based training method
On-the-job Training Method
• Simply means that the employee undergoes training while
performing the specific tasks under the direct supervision of
a trainer.
• The four types of on-the-job trainings are:
• Coaching
• Mentoring
• Job Rotation
• Simulated Exercise
Coaching
• It is a short-term task or performance-oriented method all
training an individual to develop the necessary skills and
knowledge required by the job.
• In coaching, the trainer provides specific instructions and
demonstrations of the necessary competencies of the
trainee to learn.
Mentoring
• Long-term relationship approach developing a worker.
• In addition to the primary objective of developing the skills
and abilities of the trainee, mentoring also includes building
good employee relationships and other personal
enhancement activities.
• Mentoring is acquiring the skills and knowledge of the
person requirements of the job but also for the future
demands of the position.
Job Rotation
• This method of training requires that an employee be
assigned to do different related tasks.
• As a worker is exposed to different jobs, he or she gradually
acquires and develops various skills and competencies.
• Job rotation of workers is advantageous in case of
prolonged absences of personnel.
• It is a mosque in delicate and sensitive position like those
involving cash handling or disbursement.
Simulated Exercise
• This type of on-the-job training requires the employee to
participate in simulation activities and role-playing.
• The employee usually studies extensively the tasks to be
performed before simulating the activities.
• During the experimental activities, the trainer is always on
hand to respond to problems or questions.
Off-the-job Training Method
• Employees undergo training and development outside their
actual respective workstations.
• The training may be in-house in the company’s training
rooms or training centers, or outside the company's
premises, such as in universities, other companies, and
other venues.
• The employees interact with other trainees from their own
company or those from other business organizations.
Technology-Based Training Method
• With the tremendous advances in computer and
information technology, training of employees has been
facilitated and conducted through a technology-based
training method that makes use of audio recordings, videos,
teleconferencing, and the Internet.
Training Procedural Steps
There is a need for all training programs they follow a
systematic procedure, which involves the following steps:
• Training Needs Analysis
• Training Objectives-Setting
• Training Program Development
• Training Implementation
• Training Result Evaluation
Training Needs Analysis
• The corollary query to this requirement is: how will the
manager determine the training needs of the individual
employees?
• In answering the question, the manager can conduct the
following types of analysis:
• Workforce analysis
• performance analysis
• job analysis
• organizational analysis
 Performance Analysis
Workforce Analysis
• during the submission of an
application letter and the
updating of the employee’s
personal file, the business
holds a complete set of
documentary evidence
about the employee’s
educational qualifications,
past training and
experiences, seminars
attended, and evaluation
and performance reports.
• By critically reviewing the
personal records of every
employee, the manager
gains an idea of who among
the workers needs particular
training.
• another tool that may be
used by the manager to
determine training needs
is to check the
performance status of
every employee.
• The performance report
or appraisal conducted
clearly defines the present
skills and abilities of the
workers related to their
tasks.
• Normally, the evaluation
of performance reports
outlines the strong and
weak points based on
criteria.
 Organizational Analysis
Job Analysis • This approach focuses on
• This tool for analyzing the performance of the
the training needs of an entire department, unit,
employee is anchored division, or branch.
on the job specification • It is based on the premise
and job description. that what is happening with
the unit is also applied to the
• The content of a individual members or
particular job including employees.
its requirements defines • The performance of the
the standard or the entire unit, therefore, dictates
“should be” situation of the needs for individual
members to undergo training
the task. activities.
Training Objectives
• The training objectives must be congruent with the needs of
employees and the objectives of the organization.
• It should be remembered that the ultimate goal of the
training and development is to improve the present skills of
the employees so that the organization can easily achieve
its desired goals and objectives.
• The training objectives should be confined to the training
needs of employees.
Training Program Development
• Among others, the training program development should
include the following:
a. Program Development Objectives
b. Training Scope
c. Training Duration
d. List Of Trainers And Their Qualifications
e. Skills And Competencies To Be Developed
f. Training Activities
Training Implementation
• This phase of the training procedure is the actualization of
the program content.
• The implementation of the training content is highly
influenced by the types and methodologies of training.
• The actual implementation of the training activities should
be, As much as possible, handled by the training
development program
Training Result Evaluation
• To test the effectiveness of the training program, the
manager may evaluate the trainees through written
examinations and interviews.
Performance and Evaluation System
Lesson 22
Performance and Evaluation System
• This phase addresses two basic concerns: One area of
appraisal is the effectiveness of the employee, and the
other area is his or her efficiency.
• The entire performance management system is
underscored by the effectiveness and efficiency of the
employee.
• The employee is effective when the outcome of his or
her work is aligned with the tasks. They are intended to
contribute to the achievement of the organizational
goals and objectives.
• The employee becomes efficient when the final output
of his or her tasks requires less cost or when it comes
from a lesser given input.
Performance and Evaluation System
• Through performance appraisal, it is easy for managers to identify
the employee who:
a. Deserves merit increases
b. Needs training and development
c. Must be promoted
d. Will finally be derecruited
• In addition, the performance appraisal is expected to:
a. Motivate the workers
b. Improve the selection technique
c. Streamline policies and human resources
d. Facility communication between employees and supervisors
e. Identify criteria for giving rewards and bonuses
 Types of Performance
Appraisal
• Informal Appraisal
• This type of performance evaluation appears to be subjective since the
manager most often does not provide a written appraisal result, and the
system does not adopt written standard criteria in the evaluation process.
• Instead, the manager simply provides oral feedback about the work output
and behavior of the employee daily. Rating the work performance of the
employee, whether good or defective, is a difficult task for a manager.
• The primary objective of the informal appraisal is to improve the present
work performance level of employees. It is not designed to determine who
among the employees will receive merit or promotion.
Types of Performance
Appraisal
• Formal Appraisal
• The evaluation of work performance is scheduled either
annually or semi-annually
• The system is usually structured and there are standards and
procedural steps to follow.
• There is also a set of criteria used as a basis to rate the work
performance.
• This appraisal system is intended to determine who among
the employees deserves a promotion or needs additional
training.
Types of Performance
Appraisal
• Formal Appraisal
• The formal appraisal system is usually conducted in
the following manner:
a. Supervisor evaluates the subordinates
b. a group of supervisors evaluates and rates the
subordinates
c. peer evaluates and rates a colleague
d. employees evaluate a manager
 Performance Appraisal Methods
• The different types of
appraisal methods include
the following:
a. 360-degree Appraisal
b. Graphic Rating Scale
c. Critical Incident Approach
d. Behaviorally Anchored
Rating Scale (BARS)
e. Management By Objectives
(MBO)
A. 360-degree Appraisal
• In this approach, an employee is rated by a supervisor – either a manager
or a supervisor – a co-worker of equal rank, and subordinate.
• This approach provides a complete performance perspective of a worker,
but the process is time-consuming.
• For example, when a professor is rated by the Dean of the college, co-
professors, and students.
B. Graphic Rating Scale
• The instrument used in rating an employee includes performance
indicators with an incremental scale like the features of the Likert scale.
• For example, the performance indicators or attributes in rating a professor
include performance appearance, communication skills, attitude to
students, in classroom management. A rating scale with one to three
choices, for example, may have the following descriptive equivalents: 1-
poor; 2-average, and 3-excellent
C. Critical Incident Approach
• This approach of appraising work performance requires the listing of
effective and ineffective performance indicators of an employee.
• It also includes the measurement of the behavior of the workers
D. Behaviorally Anchored Rating Scales (BARS)
• This rating tool combines the attributes of a graphic rating scale and
a critical incident approach. The employee is rated using the graphic
rating scale with in-depth performance indicators.
E. Management By Objectives (MBO)
• This approach is based on the accomplishments of the employee to
the goals of the organization.
• It measures the degree of participation made by the employee in
accomplishing organizational goals and objectives.
Reward System
Lesson 23
 Reward System
• An incentive-based system of procedures and standards in
allocating benefits to employees whose work performance has
been rated above the satisfactory level.
• Giving awards to employees is one form of motivating them to
perform better in their assigned tasks.
• The concept of rewards does not only include the elements of
compensation and benefits but also encompasses professional
growth, work, life balance, recognition, and work environment
setting.
Types of Rewards
• Extrinsic reward
• this type of reward focuses on the concept that employees who
have performed better in the organization in terms of producing an
excellent output should be given rewards.
• This reward, in most cases, is in monetary consideration form.
• It is called a pay-performance system. It may come in the form of
wage incentives, merit pay, or profit-sharing.
Types of Rewards
• Intrinsic reward
• This type of reward, the employee usually receives benefits in a non-
monetary form, that is, he or she is satisfied, contented, and happy
with the present environment and condition within the organization.
• The reward is the self-satisfaction or self-fulfillment of the employee
• this type of happiness and contentment can hardly be measured by
any amount of money.
• Though there is no cost involved on the part of the organization,
managers should critically evaluate the internal factors that
contribute to the satisfaction of employees.
• Workers who are internally happy and satisfied with their work are
generally productive.
 Chapter 6

Leading or Directing
Learning Outcomes:
• At the end of this chapter, the student should be
able to:
1. Explain the concept of leading;
2. Identify different leadership styles;
3. Describe the models and theories of motivation;
and
4. Discuss the nature of communication in the
organization.
Lesson 25
Nature of
Leading
Or
Directing
 “… the most
important thing we
should be teaching
young girls (&boys)
today is
leadership…”
- Miss Universe 2019 Zozibini Tunzi
Nature Of Leading
Or Directing
• Leading or directing is defined as the management function that
involves the process of influencing and motivating the workers to
improve their performance level.
• The nature of leadership indicates that the person leading or
directing has the power to lead.
• Otherwise, when the person does not have the inherent power to
lead, there is a tendency that no one will follow. This will create
problems and confusion in the workplace.
Nature Of Leading
Or Directing
• The manager sets plans, and structures in the organization,
hires the most qualified personnel, and leads the workforce in
various organizational activities.
• The manager acts as the leader of the organization, however,
not all managers are leaders, and not all leaders are
managers.
• There are distinct differences between a leader and a
manager.
a. Leaders have followers while managers have employees
b. Leaders create change, hence they are proactive;
meanwhile, managers react to change, and thus they are
reactive.
c. Leaders develop teams while managers have groups
d. Leaders influence followers while managers manage
subordinates.
e. Leaders facilitate decisions while managers make decisions.
f. Leaders take responsibility while managers shift or minimize
responsibility.
g. A leader manages the followers from his/her heart while a
manager manages the employees from the head.
View of Leadership: What makes a manager a leader?

A. Traits Approach To Leadership.

• This view of defining what should a leader be is based on the
premise that he or she should possess the traits and personal
characteristics that are different and distinct from those of any
ordinary person.
• It further assumes that the person with the combined traits of a
leader is destined to become a leader in any organization.
• Those who do not have the required rates are expected to become
mere followers.
View of Leadership: What makes a manager a leader?

B. Behavioral Approach To Leadership.

• A person who has the behavior of a leader - though the personal
traits can hardly be distinguished or identified - will become a leader
in any group.
• The essence of this approach is that leadership, like behavior, can be
acquired, learned, and developed.
• Any individual, therefore, who receives the proper training in
leadership will become an effective leader.
View of Leadership: What makes a manager a leader?
C. Contingency Approach To
Leadership.
• The contingency approach the leadership
does not only consider the personal traits and
behavior of a person but also the prevalent
factors present in the environment.
• The surrounding forces and existing
circumstances define the requirement of a
leader.
• As such, the personal traits and behavior that
are applicable and effective in one situation
may not necessarily be applicable in another
situation.
• What is effective in one situation is contingent
on the variables surrounding and existing in
that particular situation.
View of Leadership: What makes a manager a leader?

D. Contemporary Approach To Leadership.

• The contemporary approach includes the latest theories in the study
of leadership.
• Among the theories are the leader-member exchange theory,
transformational-transactional leadership, charismatic-visionary
leadership, and deem leadership.
Effective Leader
• Defined as the person who leads the entire workforce towards
efficiently achieving organizational goals and objectives.
• The surrounding circumstances significantly influence the
leader to become effective or not.
• The approach to leadership will vary based on a given
situation. For example, the leader must adopt different
approaches when the subordinates need close supervision or
when they are highly motivated and have a specific direction.
Traits of A Leader
1. Intelligence.
• The complicated but interrelated functions
of a manager involving planning,
organizing, staffing, leading, and controlling
require a higher level of knowledge.
2. Desire to Lead.
• Leaders always want to become the guiding star in different
types of work activities. This trait connotes the idea of gaining
the trust of the subordinates or influencing them to come to
the side of the leader who has the great responsibility of
leading the tasks.
 Traits of a Leader
3. Inner Drive.
• The drive to lead should come from within the leader, and not
from or influenced by outside factors.
• Leaders are achievers, persistent, full of energy, and generally
ambitious.
• They are not propelled by the amount of money as
compensation, recognition, or any external factors when they
lead.
4. Knowledge of the Job.
• Leaders know fully the coverage of the job, the history,
operation, and future blends of the company, the
nature and trend of the industry, and the environment
surrounding the business.
Traits of a
Leader
5. Extraversion.
• Leaders can easily adapt the different groups and are socially
affable. They joined various groups and were lively and energetic.
6. Personality Traits
• The personality traits common among leaders include honesty,
integrity, self-confidence, and assertiveness.
• Leaders are consistent with their words and actions, and trustworthy.
• Subordinates usually lose their trust in leaders who are liars and
deceitful, and those who portray low self-confidence.
Behavior of a Leader
• The behavior approach to leadership strongly suggests that
the behavior of an individual rather than the inherent personal
traits serves as the controlling factor to become a leader.
• The recommended behavioral patterns of a leader can be
grouped into two broad dimensions:
• Leadership Functions
• Leadership Style
 Leadership Function
• The leadership function dimension emphasizes the performance
of a leader in the organization.
• It suggests that a leader should
demonstrate behaviors that are
directly and closely related to
organizational performance.
• In this dimension, the function of a
leader is further subdivided into the
following:
• Task-related Function
• Social-related Functions
• Task-Related Functions
• The behavior that pertains to this function may include those that
have something to do with providing solutions, giving information,
and transferring and using knowledge.
• Relative to task-related functions, the leaders, among others, should:
• Teach
• define strategic perspective
• drive employees to achieve results
• coach subordinates
• solve problems
• collaborate with all the members
• share work experiences and skills
• focus on improving results
• lead but not follow
• Social-related Functions
• This division of leadership dimension function tends to
develop and maintain smooth and harmonious
relationships among individuals and groups.
• The leader in this function manifests the following
behavior:
• Motivate and inspire other members
• develop and support every member
• build strong interpersonal relationships among members and
groups.
• Listen and give importance to feedback
• keep everyone and all groups accountable
• inspire the workforce with the organization's vision
• support and develop subordinates
Styles of Leadership
Lesson 26
Leadership
• Refers to the approach of providing direction and
motivation to the entire workforce.
• There is no perfect style of leadership applicable to all
situations.
• The styles of leadership are as follows:
• Autocratic Style
• Democratic Style
• Laissez-Faire Style
 Autocratic Style
This leadership style of handling the workforce is manifested
by these actions:
a. Dictating the work methods, procedures, and performance
b. Limiting the participation of the employees
c. Centralizing the decision-making
d. Manipulating goals to accomplish
e. Supervising personal work
performance
f. Acting as a dictator by strictly
imposing the rules
 Autocratic Style
Advantages Disadvantages
When urgency is of primary importance The one-way flow of communication
(e.g., production must be rushed) curtails feedback mechanism
When the business faces a very critical High possibility of developing frustrations
situation, and an immediate decision is among workers
needed (e.g., substantial number of losses
are incurred)
Easy to learn, hence, one does not need a Curtail the creativity and innovative
deeper understanding of the concept of attitudes of employees
leadership.
When a situation demands no room for Does not encourage growth and
erroneous action or decision (e.g., life and development of a worker
safety are at stake)
When workers lack experience and are not
motivated
When workers are lazy, or they work only
when the leader is present
Democratic Style
The democratic style of
leadership is highly
characterized by these
attributes:
• Subordinates are involved in
decision making
• Authorities and
responsibilities are delegated
• Members are encouraged to
participate
• Responsibilities and
accountabilities are clearly
defined
Democratic Style
Advantages
Less close supervision is required
Workers are more productive
Feeling of acceptance contributes to a
higher level of performance
Facilitates the solution of complicated
business problems
Easily foster an innovative environment
Disadvantages
There are strong culture differences
among workers
Employees have no defined production
target
The workforce needs closer supervision
Members have inferiority feeling to take
participative role
Urgency is very much required.
 Laissez – Faire Style
• The leader or the manager of the entire organization gives
freedom to each group and its designated team leader to plan
the entire course of work.
• Each group sets its own plans or goals to achieve and decides
on the completion of the job.
• In this leadership style, the leader no
longer influences or motivates each
member of the group, but simply observes
the group’s performance.
• This style of leadership is most
applicable when the group
members are technically skilled,
highly motivated competitive, and
performance-oriented.
Models of
Motivation
Lesson 27
Motivation
• Refers to a process or a factor that kindles the work
performance of the workers in the attainment of
organizational goals and objectives.
• It is a process since the leader has the primary task of
directing all the efforts of the workforce to a channel
that will finally provide benefits both to the organization
and its members on a day-to-day basis.
• Motivation is a factor consisting of several elements
that internally push the workforce to perform beyond
what is required.
Models of Motivation
• A representation of a concept, idea, or theory that
either presents the relationship and properties of a
system or a simplified reflection of realities for analysis
and evaluation.
• The most popular models of motivation are:
a. Traditional Model
b. Human Relation Model
c. Human Resources Model
Traditional Model of Motivation
• This model is directly related to the scientific approach to
management.
• This motivation model is founded on the premise that money
in the form of wage or salary is the primary element that
motivates employees in the workplace.
• The model is based on the view that workers are lazy and
must be closely supervised in their repetitive and routine
tasks.
• They are highly dependent on what the manager instructs
as to the course of activities.
• Their performance output determines the amount of
financial reward they receive; hence, the more they
produce, the more they get paid.
Human Relation Model of Motivation

• This model of motivation is parallel to the behavioral

approach theory of management, that workers’
performance level is not only motivated by giving them
considerable salaries but also by recognizing their
social needs.
• Workers have increased participation in organizational
productivity once given recognition and importance.
Human Resources Model of Motivation

• This model is based on the concept that workers are

motivated neither by the monetary remuneration they
receive nor by the satisfaction of their social needs, but
by their self-fulfillment in a job well done.
• Workers are completely satisfied in the workplace
when they are given more responsibilities for making
decisions in the completion of their assigned tasks, and
not by giving them enough money as a reward or by
manipulating their social needs.
Theories of Motivation
Lesson 28
Theories of Motivation
• Theory refers to a set of assumptions or propositions
explaining events (e.g. cause and effect) in the real world.
• Although not factual, it has been widely accepted that a theory
explains a particular phenomenon.
• There may be pieces of evidence or none that will confirm or
deny the validity of the assumptions.
• The motivation theories can be broadly classified into the
following:
• Content Theories;
• Process Theories; &
• Reinforcement theories
Content Theories
• This category of motivation theories focuses mainly on the
“what” aspect of motivation.
• If the manager adopts the content theories to motivate
workers, he/she should have a definite answer to the query:
What type of worker’s need must be satisfied in order that
they will be properly motivated?
Process Theories
• The focus is on the “how” aspect of motivation.
• When the manager uses these theories to influence workers,
the query that should be properly addressed is: How will the
workers need to be satisfied so that they will be motivated?
• The process theories of motivation suggest that the worker’s
behavior and expectations must be carefully studied.
Reinforcement Theories
• This category of motivation theories is not influenced entirely
by the concept of motivation, but by the past experiences of
workers.
• The past experiences or actions of workers may either have
or have no favorable effects on them.
• Communication plays a significant role in the reinforcement
theories.
Different Theories of Motivation
• Maslow’s Hierarchy of needs theory
• McGregor’s Theory X and Theory Y
• Herzberg’s Two- Factor theory
• Three Needs Theory
• Goal-Setting Theory
• Reinforcement Theory
• Equity Theory
Maslow’s Hierarchy of Needs Theory
1. Physiological Needs – these include a person’s need for
food, drink, shelter, and other physiological needs like sex.
2. Safety Needs – these include a person’s safety, security, and
protection from all types of physical and emotional harm.
3. Social Needs – belongingness, acceptance,
friendship, and affection.
4. Esteem Needs – Internal esteem (self-
respect or achievement) and external
esteem ( recognition, status, or social strata)
5. Self – Self-Actualization – a person’s need
for self-fulfillment, professional growth, or
achievement of potentials.
McGregor’s Theory of X and Y
• The entire workforce of the organization is
classified either as Theory X or Theory Y
workers.
• Theory X assumes that workers are lazy, hate
work, avoid responsibilities, are without
ambition, and are closely supervised.
• Theory Y assumes the opposite behavior that
the workers love work, are highly responsible,
participate in decision-making, and have a
self-direction.
 Herzberg’s Two-Factor Theory
• Otherwise known as, motivation-
hygiene theory by Frederick Herzberg,
proposes that two factors influence the
behavior or perceptions of the workers
– the intrinsic and extrinsic factors.
• Intrinsic factors or motivators bring job Herzberg’s
satisfaction. Two-Factor
• These include achievement, recognition,
the work itself, responsibility, Theory
advancement, and growth.
• Extrinsic Factors or Hygiene Factors
are necessary to maintain the
workplace’s condition but do not lead
to positive job satisfaction.
• These include supervision, company
policy, relationship with supervisor,
working conditions, salary, relationship
with peers, personal life, relationship with
subordinates, status, and security.
Three Needs Theory

• Developed by David McClelland and his

associates, proposes that workers are
motivated by three types of needs:
a. the need for achievement
b. The need for power
c. The need for affiliation
Goal-Setting Theory
• This theory presupposes that workers are motivated and have
the inner drive to succeed and achieve satisfactory
performance ratings due to the goals they have set for
themselves.
• Research conducted in the past and their concluding
statements are:
a. Self-generated feedback has a more favorable effect than feedback
coming from others.
b. Workers are more committed to self-set goals than assigned goals
c. Individuals can complete task
d. The national culture has significant influence on the value of
setting goal.
Reinforcement Theory
• Developed by B.F. Skinner, based on the
assumption that behavior is a function of its
consequences.
• If the consequences of the behavior appear
to be favorable and rewarded, the workers
tend to repeat the behavior.
• Undesirable behavior is less likely to be
observed or repeated since it will simply be
ignored.
 Equity Theory
• Popularized by J. Stacey Adams, presupposes
that the efficiency of workers is mainly
influenced by fair and equitable practices in
the organization.
• Workers are motivated and tend to contribute
to the fullest their skills, talents, knowledge,
and competencies when there is fairness and
equitable treatment in the workplace.
• This theory further assumes that workers
compare their contributions (input) to what
they receive (output).