STAFFING THE ENGINEERING

ORGANIZATION

What is Staffing?

The Statfing Procedure

Human Resource Planning

Recruitment

Selection

lnduction and Orientation

Training and Development

Performance Appraisal

Employment Decisions

Separations

88
 Chapter 5

After setting up the organizational structure that has

been decided to best serve the interest of a certain firm,
the next move thathas to be made is to fill up the identified
positions with the most qualified persons available.
Engineering organizations are very sensitive to
whatever staffing errors are made. Placing the wrong
prjrson in a highly specialized position like quality control,
for instance, may bring untold damages to the firm. Yet,
this refers to a single error only.
An example of.the ill-effects of staffrng errors was
provided by the TV program "Brigada Siete."l The disaster
that happened in the Film Center at the Cultural Center
Complex in Manila was highlighted in the program. In
November 1981, the whole sixth floor of the Film Center
collapsed while undergoing construction. Many workers
and an engineer died as a result.
When intervieived by the TV program's staff, a former
construction worker said he was hired to do masonry job
when he does not have training in masonry. Some other
examples of staffing errors were provided in the program.
This type of tragedy underscores the importance of
staffing in any organization, engineering or othervrrise.
Effective staffing, on the otherhand places the engineering
organization on a competitive stance.

WHAT IS STAFFING?
The engineer manager must be concerned with
l"Brigada Siete", TV Channel 7 program, November 23, 1996.

89
putting the right persons in various positidns within his
area of concern. Although some of the important aspects
of staffing may be delegated to the human resource office,
the engineer manager assumes a great responsibility in
assuring that the right persons are assigned to positions
that fit their qualifications.
Staffi ng may be defined as "the management function
that determines human resource needs, recruits, selects,
trains, and develops human resources for jobs created by
an organization."2
Staffing is undertaken to match people with jobs so
that the realization of the organization's objectives will
be facilitated.

THE STAFFING PROCEDURE

The staffing process consists of the following series
of steps:3
1. human resource planning
2. recruitment
3. selection
4. induction and orientation
5. training and development
6. performanceappraisal
7. employment decisions (monetary rewards, trans-
fers, promotions and demotions) and
8. separations.

Human Resource Planning

The planned output of any organization'will require

2leslie W Rue and Lloyd L. Byerc, Management Theory and Application,

Fourth Edition (Homewood, Illinois: Irwin, N.D.) p. 630.
3Plunkett and Attner, pp.263-264.

90
a systematic deployment of human resources at various
levels. To be able to do this, the engineer manager will
have to involve himself with human resource planning.
This will be done in conjunction with the efforts of the
human resource officer, i.e., if the company has one.
Human resource planning may involve three activi-
ties, as follows:
1. Forecasting
- which is an assessment of future
human resource needs in relation to the current
capabilities of the organization.
2.' Programming which means translating the
-
forecasted human resource needs, to personnel
objectives and goals.
3. which refers to moni-
Evaluation and controi
-
toring human resource action plans and
evaluating their success.
Methods of Forecasting. The forecasting of man-
power needs may be undertaken using any of the follow-
ing quantitative methods:a
1.' Time series methods use historical data
to develop forecasts -which
of the future.
2. Explanatory, or causal models
- whichthat
are at-
tempts to identi$r the major variables are
related to or have caused particular past con-
ditions and then use current measures of these
variables to predict future conditions.
The three major types of explanatory models
are as follows:
a) regression models (presented in Chapter 2)
b) econometric models a system ofregression
- from
equations estimated past time-series
aKathryn M. Bartol and David C. Martin, Mo nagement (New York: McGraw-
Hill, 1991) pp. 297-300.

0l
 data and used to show the effect ofvarious
independent variables on various dependent
variables.s
c) leading indicators
- refers to time series
that anticipate business cycle turns.
3: Monitoring methods
- are those that provide
early warning signals of signifrcant changes in
established patterns and relationships so that the
engineer manager can assess the likely impact
and plan responses if required'

Recruitment
When the different positions have been identified to
be necessary and the decision to fill them up has been
made, the next logical step is recruitment.
Recruitment refers to attracting qualifred persons to
apply for vacant positions in the company so that those
who are best suited to serve the company may be selected.

Source of APPlicants
When management wants to fill up certain vacancies,
the following sources may be tapped:
1. The organization's current employees. Some of
the organization's current employees may be
qualified to occupy positions higher than the ones
they are occupying. They should be considered.
2. Newspaper advertising. There are at least three
major daily newspapers distributed throughout
the Philippines. Readership is higher during
Sundays.
3.' Schools. These are good sources of applicants.
sHeinz Kohler, Statistics
for Business and Ecorutmics (Glenview, Illinois:
Scott, Foresman and Company, 1985) p. G-6.

92
 Representatives of companies may interview
applicants inside campuses'
4. Referrals from employees' Current employees
sometimes recommend relatives and friends
who maY be qualified.
5.' Recruitment firms. Some companies are speci-
frcally formed to assist client firms in recruiting
qualified persons. Examples of these companies
are the SGV Consulting and John Clements Con-
sultants, Inc., (See Figure 5'1)'
6. Competitors. These are useful sources of qualified
but underutilized Personnel'
For entry-level personnel, the engineer manager
will likely rely on newspaper advertising, schools, and
referrals. when recruiting managers., the reliabie sour-
ces are current employees, recruitment firms, and com-
petitors.

Selection
Selectionreferstotheactofchoosingfromthosethat
are available the individuals most likely to succeed on the
job. A requisite for effective selection is the preparation
of u llrt indicating that an adequate pool of candidates
is available.
The purpose ofselection is to evaluate each candidate
and to pick the most suited for the position available'
Selection procedures may be simple or complex
depending on the costs of a wrong decision' If the man-
agement picks the wrong person and the subsequent
effect to the organization is negligible, then the selection
process is made simple. This is true in the case of con-
struction laborers where a review of their applications is
done. Within a few days or even a few hours, the applicants
are informed of the decision.

93
Figure 5.1 An Example of the Services provided by a
Professional Recruitment Firm

PROFESSIONAL STAFFERS
A Division of John Clements Consultants, Inc.
A multinational firm which is poised to revolutionize the building
materials industry locally and internationally, our client is offering
rewarding career opportunities to highly driven professionals who can
assume the posts of:
SALES ENGINEERS
SALES REPRESENTATIVE
in maintaning and developing dealer accounts, the appointees will be
expected to provide pre-sales and post-sales support to dealers and
implement marketing activities. The background we seek consists of:
. 2-3 years of experience in selling construction/building
materials gained from a manufacturing or marketing firm;
. exposure in wood business will be an advantage;
o aggressiveness and good command of the English language;
o computer literacy and driving skills;
. knowledge of Chinese dialect is a plus factor but not a
requirement;
o degree in Engineering or Architecture is preferred but post
is open to any business course;
. male or female, 25 to B0 years old.
Attractive remuneration and benefit packages plus commissions will
be offered to the successful candidates.
Resum6s coded salesforce -g6-248 should be forwarded not later than
15 November 1996 to the address below.

PHOFESSIONAL STAFFEBS
4/F Golden Rock Building
168 Salcedo St., Legaspi Village, Makati City
Tel. nos. 812-59-94/B1B-48-8b

'FFrom an advertisement, Manila Bulletin, November 10, Lgg6,

p. c-3.

94
 When the position under consideration involves
special skills, a more elaborate selection process is un-
dertaken.

Ways of Determining the Qualifications

of a Job Candidate
Companies use any or all of the following in deter-
mining the qualifrcations of a candidate:
1. Application blanks. The application blank pro-
vides information about a person's characteris-
tics such as age, marital status, address, edu-
cational background, experience, and special
interests. After reading the appJication blank, the
evaluator will have some basis on whether or not
to proceed further in evaluating the applicant.
2. . References. References are those written by
previous employers, co-workers, teachers, club
officers, etc. Their statements may provide some
vital information on the character of the ap-
plicant.
3. Interviews. Information may be gathered in an
interview by asking a series of relevant ques-
tions to the job candidate.
4. Testing. This involves an evaluation of the future
behavior or performance of an individual.

Types of Tests
Tbsts may be classified as follows:
1. Psychological tests
- which is "an objective,
standard measure of a sample behavior".6 It is
classified into:
-.,
."-: - a). aptitude test one used to measure a per-
' -
1 son's capacity or potential ability to learn.

GMargaret Matlin, Psychology (New York: Harcourt Brace, 1992) p. 460:

96
 ,, b) performance test - one used to measure a
iJ') person's current knowledge of a subject.

11
.) personality test
- one used to measure
personality traits as dominance, sociability,
and conformity.
d) interest test - one used to measure a
il person's interest in various frelds of work.
2. Physical examination
- a type of test given to
assess the physical health of an applicant. It is
n.i given "to assure that the health of the applicant
is adequate to meet the job requirements."T

Induction and Orientation

After an applicant is frnally selected from among the
various ones and then subsequently is hired, the next steps
undertaken are induction and orientation.
In induction, the new employee is provided with the
necessary information about the company. His duties,
responsibilities, and benefits are relayed to him. Person-
nel and health forms are fiIled up, and passes are is-
sued. The company history, its products and services, and
the organization structure are expiained to the new em-
ployee.
In orientation, the new employee is introduced to
the immediate working environment and co-workers.
The following are discussed: location, rules, equipment,
procedures, and training plans. Performance expecta-
tions are also discussed. The new employee also under-
goes the "socialization process" by pairing him with an
experienced employee and having a one-on-one discussion
with the manager.
THerbert J. Cruden and Arthur W Sherman, Jr., Managing Human
Resources, Seventh Edition (Cincinnati: South-Western Publishing Co., 1984)
p. 134.

96
Training and Development
If the newly-hired (or newly-promoted)employee is
assessed to be lacking the necessary skills required by the
job, training becomes a necessitY.
Tlaining refers to the "learning that is provided in
order to improve performance on the present job.4 Tlain-
ing programs consist of two general types, namely:e
1. training programs for nonmanagers, and
2. training and educational programs for executives.

Training Program for Nonmanagers

This type of training is directed to nonmanagers for
specific increases in skill and knowledge to perform a
particular job. The four methods under this type are:
1. On-the-job training
- where the trainer is placed
in an actual work situation under the direction
ofhis immediate supewisor, who acts as trainer.
This situation motivates strongly the trainee to
.^ it learn.
2. Vestibule school
- where the trainee is placed
in a situation almost exactly the same as the
workplace where machines, materials,-and time
constraints are present. As the trainer works
full time, the trainee is assured of sufficient
attention from him.
3. Apprenticeship program
- where a combina-
tion of on-the-job training and experiences with
classroom instruction in particular subjects are
provided to trainees.

sJerry W Gilley and Steven A. Eggland, Principles of Human Resource

Deuelopment (Reading, Massachusettes: Addison-Wesley Publishing Co., Inc'
1989) p. 7.
eEdwin B. Flippe, Personnel Management, Sixth Edition (New York:
McGraw-Hill Book Co., 1984) p. 200.

97
 4. Special courses are those taken which provide
more emphasis -on education rather than train-
ing. Examples are those which concern specific
uses of computer like computer-aid'ed design
and building procedures.

Training Programs for Managers

The training needs of managers may be classified
into four areas: decision-making skills, interpersonal
skills, job knowledge, and organizational knowledge.
The decision-making skills of the manager may be
enhanced through any of the following methods of train-
ing:
1. In-basket where the trainee is provided with
-
a set of notes, messages, telephone calls, letters,
and reports, all pertaining to a certain company
situation. He is expected to handle the sitiration
within a given period of 1 or 2 hours.
2. Management games is a training method
-"r ' where "trainees are -faced with a simulated
situation and are required to make an ongoing
$ series of decisions about that situation.,,lo
3.
- this methodandpresents
Case studies actual
situations in organizations enable one to
examine successful and unsuccessful operations.
It emphasizes "the manager's world, improves
communication skills, offers rewards of solving
a mystery, possesses the quality of illustration,
and establishes concrete reference points for
. connecting theory with practice.,,11
The interpersonal competence of the manager may
be developed through any of the following methods:

loAldag and Stearns, p.

G-11.
llWheelen and Hunger, p. 408.

98
Figure 5.2 An Example of an Invitation for Enrollment in
Specialized Courses

CIM TECHNOLOGIES, INC.

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. Basic AutoCAD Release 13
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- (For Mechanical.fi\{anufacturing)
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(For Animation /Rendering)
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(For Civil Engineering)
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(For Structural Engineering)
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For more information, please call or visit us:

CIM TECHNOLOGIES, INC.
The Leader in CAD Technology
LG 103 Peninsula Court, 8735 Paseo de Roxas corner
Makati Avenue, Makati City, Metro Manila 1226
Tel. 752-24-68 . Fax: 752-24-70

*From an advertisement, Manila Bulletin, November 10,

1996, p. 18.

90
 1. Role-playing
- is a method by which
the train-
ees are assigned roles to play in a given case
incident. They are provided with a script or a
description of a given problem and of the key
persons they are to play. The purpose of this
method is to improve the skill of the trainees in
human relations, supervision, and leadership.
2. Behavior modeling
- this method attempts to
influence the trainee by "showing model persons
behaving effectively in a problem situation."l2
The trainee is expected to adapt the behavior of
the model and use it effectively in some instances
later on.
3. Sensitivity training under this method, aware-
- to
ness and sensitivity behavioral patterns of
oneself and others are developed.
,,'. 4. Thansactional analysis
- is a training method
" intended "to help individuals not only understand
themselves and others but also improve their
interpersonal communication skills."13
In acquiring knowledge about the actual job the man-
ager is currently holding, the following methods are useful :
L. On-the-job experience - this method provides
,. valuable opportunities for the trainee to learn
rz' ' various skills while actually engaged in the
performance of a job.
2. Coaching
- this method requires a senior man-
ager to assist a lower-level manager by teach-
ing him the needed skills and generally provi-
ding directions, advice, and helpful criticism.
The senior manager must be skilled himself and

12Dale Yoder and Paul D. Standohar, Pers onnel Mana6lement and Industrial
Relations, Seventh Edition (Englewood Cliffs, New Jersey: Prentice-Hall, Inc.,
1987) p.274.
13Rue and Byars, p. 436.

100
 have the ability to educate, otherwise the method
will be ineffective.
3. this method' a manager
Understudy - under
works as assistant to a higher-level manager and
participates in planning and other managerial
functions untii he is ready to assume such
position himself. Once in a while' the assistant
is allowed to take over'
In the attempt to increase the trainee's knowledge
of the total organization, exposure to information and
events outside ornir immediate job is made. In
this regard,
the following methods are useful:
man- '
1. Position rotation - under this method' ofthedepart-
1-\-t, ager is given assignments in a variety
ments. The purpose is to expose him to differ-
ent functions of the organization'
2. Multiple management - this method is premised
on the idea that junior executives must be
provided with means to prepare them for higher
management positions' To achieve this' a
junior
board ofdireciors is created consisting ofjunior
executives as members' The board is given the
authority to discuss problems that the senior
board could discuss. The members are encouraged
to take a broad business outlook rather than
concentrating on their specialized lines of work'

Performance APPraisal
Performance appraisal is the measurement of em-
ployee performance. The purposes for which performance
appraisal is made are as follows:14
1. To influence, in a positive manner, employde
performance and develoPment;

laBartol and Martin, P' 421'

l0l
 2. To determine merit pay increases;
3. To plan for future performance goals;
4. Tb determine training and development needs;
and
5. To assess the promotional potential of employees.

Ways of Appraising performance

An employee's performance may be measured using
any of the following methods:l5
1. Rating scale method where each trait or
characteristic to be rated- is represented by a line
or scale on which the rater indicates the degree
to which the individual possesses the trait or
characteristic.
2. Essay methodl- where the evaluator composes
statements that best describe the persor eva_
luated.
3. Management by objectives method _ where
specific goals are set collaboratively for the orga_
nization as a whole, for various subunit", irrd
for each individual member. Individuals are,
then, evaluated on the basis of how well they
have achieved the results specified by the goats.
4. Assessment center method _ where one is
evaluated by persons other than the immediate
superior. This method is used for evaluating
managers.
5. Checklist meth"od where the evaluator checks
- that are deemed to charac_
statements on a list
terize an employee,s behavior or performance.
6. Work standards method _ where standards are
lsCruden and
Sherman, pp.23g-246.

toz
 set for the realistic worker output and later on
used in evaluating the performance of non-
managerial emPloYees.
7.
q Ranking method
- where each evaluator ar-
ranges employees in rank order from the best
to the poorest.
8. Critical-incident method
- where the evaluator
n
r< recalls and writes down specific (but critical)
incidents that indicate the employee's perform-
ance. A critical incident occurs when employee's
behavior results in an unusual success or failure
on some parts of the job'

Ernployment Decisions
After evaluating the performance of employees
(managerial or otherwise), the management will now be
ready to make employment decisions. These may mnsist
of the following:
1. Monetary rewards - these are given to em-
I ployees whose performance is at par or above
standard requirements.
2. Promotion
- this refers
to a movement by a
' person into a position ofhigher pay and greater
responsibilities and which is given as a reward
for competence and ambition.
D
d. Tlansfer this is the movement of a person to
-
a different job at the same or similar level of
lr
responsibility in the organization. Tbansfers are
*ud" to provide growth opportunities for the
persons involved or to get rid of a poor performing
employee.
4. Demotion -_ this is a movement from one posi-
tion to another which has less pay or respon-
sibility attached to it. Demotion is used as a form

103
 of punishment or as a temporary measure to keep
an employee until he is offered a higher position.

Separation
Separation is either a voluntary or involuntary
termination of an employee. When made voluntarily, the
organization's management must find out the real rea-
son. If the presence of a defect in the organization is
determined, corrective action is necessary.
Involuntary separation (or termiiation) is the last
option that the management exercises when an employee,s
performance is poor or when he/she committed an act
violating the company rules and regulations. This is
usually made after training efforts fail to produce positive
results.
SUMMARY
Engineering organizations are not immune to the
difficuliies of filling with qualified persons the various
positionsidentified in the organizing stage.As the outputs
of engineering firms are produced by people under the
supervision of engineer managers, errors in the per-
formance of jobs may not be easily discernible. As such,
staffing must be treated with serious concern.
Staffing deals with the determination of human
resource needs, recruitment, selection, training, and
development.
The staffing process consists of the following series
of steps: human resource planning, recruitment, select-
ion, induction and orientation, training and development,
perftrrmance appraisal, employment decisions, and
separations.
The sources of applicants consist of the organization,s
current employees, newspaper advertising, schools,
referrals from employees, recruitment firms, and com-
petitors.

104
 The ways of determining the qualifications of job
candidates consist of application blanks, references,
interyiews, and testing.
Tlaining programs consist of one type for non-
managers and another type for executiYes.
The various methods of performance appraisal are
classified into the rating scale inethod, the essay method,
management by objectives method, assessment center
method, checklist method, work standards method;
ranking method, and critical-incident method.
Employment decisions are classified as: monetary
rewards, promotion, transfer, and demotion.
Separations may be classified as voluntary or
involuntary.

106
 QUESTIONS FOR REVIEW AND DISCUSSION
1. Why is staffing an important activity?
2. What activities are undertaken in staffing?
3. What is the purpose of human resource planning?
4. How may human resource needs be determined?
5. What are the possible sources of applicants for va-
cant positions in the firm?
6. What is the implication of the cost of the "wrong
decision" in the selection process?
7. How may one determine the qualifications of a job
candidate?

8. How may the types of tests be described?

9. In induction, what activities are undertakenJ
10. How may the two general types of training be
described?

SUGGESTED ITEM FOR RE-SEARCH

1. Prepare a forecast of the human resource needs of
an engineering firm.

106
Case 5. KUNDIMAN COMMUNICATIONS CORPORATION:
Mr. Lonely
The Kundiman Communications Corportion (KCC)
is a local company with more than 2,000 persons in its
payroll. The company's top management is composed of
the President, the Vice President for Marketing, the Vice
President for Operations, and the Vice President for
Administration.
A member of the staff, Engineer Lorenzo de Guzman,
an electronics engineering graduate, has just received an
order from his immediate superior, the VP for Operations,
to head the newly built telecommunication facility in
Antipolo, Rizal. So far, he is the only company personnel
identified with the new facility. He was given three months
to make the facility operational.
Engineer de Guzman appraised that for theAntipolo
unit to operate, it will require the services of a number
of persons skilled in the various activities that will be
undertaken.
As he has been working with KCC for ten years (five
years in the field and five years in the head office),
Engineer de Guzman is familiarwith many aspects of the
firm's operation. Some of the supervisors and three of the
key officers are his friends.
Engineer de Guzman felt that the various trainings
KCC provided him had really prepared him well for the
technical aspects of his new job. His exposure to the
different units at the head office will also be useful in some
ways to the administrative aspects of his position.
However, his trainings and experiences have not provided
him with the expertise to recruit qualified persons to
occupy the various positions that will be created. To begin
with, he does not even have information on the number
and nature of the positions to be created.
As he was inspecting the building in Antipolo where

to?
he will hold office, Engineer de Guzman wondered if he
could con'irince top management to transfer some of his
acquaintances in the head office to his new assignment.
Engineer de Guzman knows that his next promo-
tion will depend much in the success of the new facility
under his direction. He thought that if he could only get
the right persons, his job would not be too difficult. With
this in mind, he pondered on what his first move must
be.

108
 COMMT]NICATING

What Communication Is

Functions of Communication

The Communication Process

Forms of Communication

The Barriers to Communication

Overcoming Barriers to Communication

Techniques for Communicating in Organizations

Management lnformation Systbm

109
 Chapter 6

The achieveraent of the objectives of the engineer-

ing organization will depend on the performance of the
human and non-human elements attached to it. The task
of management is to "program" these elements correctly
so that each will respond accordingly to their assigned
tasks. Standard programming methods have already
been adapted by technologists for most machines and
equipment.
The programming approach to the human element
is different and must be dealt with using methods espoused
by behavioral scientists. Employees will perform accord-
ing to the dictates of their minds. If this is really so, then
management must reach them through powerful means
of persuasion under an atmosphere conducive to effective
communication.
The issue now will be "is management using the
communication option effectively?" The answer must be
"yes", for if not, trouble may be forthcoming, if it has not
yet arrived.

WHAT COMMUNICATION IS
Lb z,l

ryrytlfhilip Wolf and Shirl-qv Kuiper define com-

munication as "a process of sharing information through
symbols, including words and message."l
Communication may happen between superior and
subordinate, between peers, between a manager and a
client or customer, beiween an employee and a government

rMorris Philip Wolf and Shirley Kuiper, Effectiue Communication in Busi-

zess, Eighth Edition (Cincinnati: South-Western Publishing Co., 1987) p. 5.

ll0
representative, etc. It may be done face-to-face, or through
printed materials, or through an electronics device like
the telephone, etc.
In management, communication must be made for
a purpose and becauseit has a cost attached to it, it must
be used effectively.

FUNCTIONS
-
r2A ?.7
OF COMMUNICATION
Communication may be used to serve any of the
,"r)r:ytrr functions:2
k 'L. Inforrpation function Information provided
-
through communication may be used for deci-
sion-making at various work levels in the orga-
nization. A construction worker, for instance,
may be given instructions on the proper use of
certain equipment. This will later provide him
with a guide in deciding which equipment to use
in particular circumstances.
Another concern is the manager who wants
to make sure that his decision in promoting an
employee to a higher position is correct. Through
communication, the information provided will
minimize if not eliminate the risk.
2. Motivation function Communication is also
- means
oftentimes used as a to motivate em-
ployees to commit themselves to the organiza-
tion's objectives.
3. Control function When properly commu-
-
nicahed, reports, policies, and plans defrne roles,
clarify duties, authorities and responsibilities.
Effective control is, then, facilitated.
4. Emotive function
- When feelings are repressed

'zWilliam G. Scott and Terence R. Mitchell, Organization Theory: A

Structural Behauioral Analysis (Homewood, Illinois: Irwin, 1979) p. 3.

lll
 in the organization, employees are affected by
anxiety, which, in turn, affects performance.
Whatever types of emotions are involved, whe-
ther satisfaction, dissatisfaction, happiness, or
bitterness, communication provides a means to
decrease the internal pressure affecting the
individual.

THE COMMUNICATION PROCESS

The communication process consists of eight steps

Figure 6.1 The Communication Process

SENDER
develops
idea

encodes

then
transmits
message
to

RECEIVER
who
receives
message

decodes

/".."pt}
or then
Vejecty provides
feedback
to

tt2
 lu "2e '
which are as follows: develop an idea, encode, transmit,
receive, dT2f0 use, and provide feedback.3
""".Ot,
Develop an Idea
The most important step in effective communication
is developing an idea. It is important that the idea to be
conveyed must be useful or of some value. An example
of a useful idea is how to prevent accidents in workplaces.

Encode
The next step is to encode the idea into words,
illustrations, figures, or other symbols suitable for
transmission. The method of transmission should be
determined in advance so that the idea may be encorled
to conform with the specific requirements of the identified
method. An example of an encoded message using teiefax
as a means of transmission is shown in Figure'6.2.

Transmit
After encoding, the message is now ready for trans-
mission through the use of an appropriate communica-
tion channel. Among the various channels used include
the spoken word, body movements, the written word,
television, telephone, radio, an artist's paint, electronic
mail, etc.
Proper transmission is very important so the mes-
sage sent will reach and hold the attention of the receiver.
To achieve this, the communication channel must be free
ofbarriers, orinterference (sometimes referred to as noise).

Receive
The next step is the communication process is the
actual receiving of the message by the intended receiver.
3John W Newstrom and Keith Davis, Orgonizational Behauio4 Human
Behauior at Work. Ninth Edition (New York: McGraw-Hill, Inc., 1993) pp.
94-96.

113
The requirement is for the receiver to be ready to receive
at the precise moment the message reiayed by the sen-
der.

Figure 6.2 tn Example of an Encoded Message for Telelax

Transmission

Calao West Chemicals CorPoration

Santiago CitY Branch
Sales Report for JanuarY 1997

Area Volume Amount

(in drums)
I 1,000 F1,000,000
II 1,342 1,342,000
III 2,045 2,045,000
ry 1,089 1,089,000
V 2,686 2,686,000
VI 3,450 3,45o,ooo
Total 11,612 11,612,000

Prepared by:
Josefrna Datu
Branch Manager

The message may be initially received by a machine

or by a person. In anv case, communication stops when
the machine is not turned or tuned on to receive the
message, or the person assigned to receive the message
does not listen or pay attention properly.

Decode
The next step, decoding, means translating the
message from the sender into a form that will have
meaning to the recipient. If the receiver knows the lan-
guage and terminology used in the message, successful

ll4
 decoding may be achieved. Examples of various terms
encoded and decoded are shown in Figure 6.3.
If the receiver understands the purpose and the
background situation of the sender, decodingwill be greatly
improved. In legal practice, for instance, the declarations
of a dying person have more weight.

Accept
The next step is for the receiver to accept or reject
the message. Sometimes, acceptance (or rejection) is
partial. An example is provided as follows:
A newly-hired employee was sent to a supervisor with
a note from his superior directing the supervisor to accept
the employee into his.unit and to provide the necessary
training and guidance.

Figure 6.3 Examples of Encoded and Decoded lnformation

Where Used Encoded Decoded

Selling 5/10; n/30 Sales on account is allowed.
A five percent discount is
deducted from total price
il settled within ten days.
Account must be settled
within 30 days.
Flowcharting lndicates beginning of a
f lowcharting activity.
Production
arrivals + OOO -+['"ri."l -+departures
lfacility I
after services
A basic queuing system
conf iguration indicating
a single-channel, single-
phase system.

l16
 As the supervisor feels that he was not consulted in
the hiring process, he thinks that his only obligation is
to accept the employee in his unit and nothing more.
The factors that will affect the acceptance or rejection
of a message are as follows:
1. the accuracy of the message;
2. whether or not the sender has the authority to
send the message and./or require action; and
3. the behavioral implications for the receiver"

Use
The next step is for the receiver to use the information.
If the message provides information of importance to a
relevant activity, then the receiver could store it and
retrieve it when required. If the message requires a certain
action to be made, then he ma}' do so, otherwise' he
dis0ards it as soon as it is received' All of the above-
mentioned options will depend on his perception of the
message.

Provide Feedback
The last step in the communication process is for the
receiver to provide feedback to the sender. Depending on
the perception of the receiver, however, this important step
may not be made.
Even if feedback is relayed, it may not reach the
original sender of the message. This may be attributed
to the effects of any of the communication barriers.

FORMS OF COMMUNICATION
Communication consists of two major forms:
1. verbal and
2. nonverbal.

It6
Verbal Communication
Verbal communications are those transmitted
through hearing or sight. These modes of transmisslon
categorizes verbal communication into two classes: bral
and written.E 17'e
Oral communication mostly involves hearing the
words of the sender, although sometimes, opportunities
are provided for seeing the sender's body movements,
facial expression, gestures, and eye contact. Sometimes,
feeling, smelling, tasting, and touching are involved.
An alternative to oral communication is the written
communication where the sender seeks to communicate
through the written word. The written communication is,
sometimes, preferred over the oral communication because
of time and cost constraints. When a sender, for instance,
cannot meet personaily the receiver due to some rea'son,
a written letter or memo is prepared and sent to the
receiver.
The written communication, however, has limitations
and to remedy these, some means are devised. Perfume
advertisers, for instance, lace their written message with
the smell of their products. In the same light, the now
popular musical Christmas card is an attempt to enhance
the effects of the written note.
Nonverbal Communication
Nonverbal communication is a means of conveying
message through body language, as well as the use of
time, space, touch, clothing, appearance, and aesthetic
elements. Body language consists of gestures, bodily
movement, posture, facial expression, and rnannerisms of
all kinds"a
Nonverbal expressions convey many shades of
aGerard I. Nieremberg, The Art of' Negotioting (New york: Cornerstone
Library', 1968) p. 101.

rt7
meaning and it is to the advantage of the communicator
to understand what messages are relaydd.

THE BARRIERS TO COMMUNICATION

Various factors may impede the efficient flow of
communication. Any, or all, of these factors may, at any
point, derail the process. Even if the message is trans-
mitted by the channel, the timing and the meaning of the
message may be afflected by the factors.
The barriers to communication may be classified
genera[y
6rs:
1. personal barriers
2. physical barriers
3. semantic barriers

Personal Barriers
Personal barriers are hindrances to effective com-
munication arising from a communicator's characteris-
tics as a person, such as emotions, values, poor listening
habits, sex, age, race, socioeconomic status, religion,
educatiop ptc.
Emotions cloud the communicator's ability to judge
correctly the real meaning of messages received. People
with differentvalues will find it hard to communicate with
each other. Poor listening habits of a receiver frustrate
the communication efforts of a sender.
Phvsical
u\4 Barriers
Physical barriers refer to interferences to effective
communication occuring in the environment where the
communication is undertaken. The very loud sound
produced by a passingjet temporarily drowns out the voice
ofa guest delivering a speech. Such distraction does not
allow full understanding of the meaning of the entire
message and is an example of a physical barrier.

l18
 Physical barriers include distances between people,
walls, a noisy jukebox near a telephone, etc. An office that
is too tidy may sometimes inhibit a person from meeting
the occupant of the office face-to-face. Amenacing pet dog
(or secretary) posted near the door may also prevent a
person from directly communicatingwith the object person
behind the door.
A communication channel that is overloaded may also
prevent important information to reach the intended
user. Another physical barrier to communication is wrong
timing. For instance, how may one expect a person who
has just lost a loved one to act on an inquiry from a fellow
employee?

Semantic Barriers
,0 pl
.Semantics is the study of meaning as expressed in
symbols.s Wo4ds, pictures, or actions are symbols that
suggest certain meanings. When the wrong meaning has
been chosen by the receiver, misunderstanding occurs.
Such error constitutes a barrier to communication.
A semantic barrier may be defined as an .lnterference
with the reception of a message that occurs when the
message is misunderstood even though it is received
exactly as transmitted."6
For example, the words '\Mise" and .,salvage,, will have
different meanings to an English speaking foreigner than
to an ordinary Filipino.

OVERCOMING BAHRIERS TO
COMMUNICATION
When communication barriers threaten effective

uoel P. Bowman and Bernadine p. Branchaw, Business Report writing

(Chicago: The Dryden Press, 1984) p. 192.
6warren K. Agee and others,
_ Introduction to Mass communication, Ninth
Edition (Sydney: Harper and Row publishers, 19gg) p. A-9.

l19
performance, certain measures must be instituted to
eliminate them. To eliminate problems due to noise,
selective perception, and distraction, the following are
recommended:
1. Use feedback to facilitate understanding and
increase the potential for appropriate action.
2. Repeat messages in order to provide assurance
that they are properly received.
3. Use multiple channels so that the accuracy of the
information may be enhanced.
4. Use simplifred language that is easily under-
standable and which eliminates the possibility
of people getting mixed-up with meanings.

TECHNIQUES FOR COMMUNICATING IN

ORGANIZATIONS
Communication may be classified as to the types of
flow of the message which are as follows: downward,
upward, or horizontal. Each of the types of message flow
has its own purposes and techniques.
Downward Communication
Downward communication refers to message flows
from higher levels of authority to lower levels. Among the
purposes of, dowlrward communication are:
vrti? rw
1.S-to give instructions
2. to provide information about policies and pro-
cedures
3. to give feedback about performance
4. to indoctrinate or motivate
a.-\h
BAiriong the techniques used in downward commu-
nication are as follows: letters, meetings, telephones,
manuals, handbooks, and newbletters.

120
 Letters are appropriate when directives are complex
and precise actions are required. When orders are simple
but the result depends largely on employ"" *or.1",
techniques that provide personal interchange like meet-
ings and the telephone, are appropriate. Modern tech-
nology has made it possible for people to hold meetings
even if they are thousands of kilometers apart from each
other.
(tE
Manuals are useful sources of information regarding
.o*p"o"y poii.y, procedures, and organization. Unlike
using persons as sources of information, manuals are
available whenever it is needed.
fr
Hhndbooks provide more specific information about
the duties and priveleges of the individual worker. It has
also the advantage of being available whenever needed.

Figure 6.4 Message Flow and Areas of Concern

UPWARD COMMUNICATION DOWNWARD COMMUN ICATION

Concerns:
- problems and exceptions
- suggestions for improvement
- performance reports
- grievances and disputes
- financial and accounting
information
Concerns:
- implementation of goals,
strategies and objectives
- job instructions and rationale
- procedures and practices
- performance feedback
- indoctrination

HOR IZONTAL COMMUNICATION

interdepartmental coordination
intradepartmental problem-solving
staff advice to the departments

tzt
 Newsletters provide a mixture of personal, social, and
work-related information. Articles about new hirings,
promoti'onb, birthdays of employees, questions and
answers about work related issues are presented.

Upward Communication
There is a need for management to provide employ-
ees with all the
necessary material and non-material
support it can give. The first requirement, however, is
for management to know the specific needs of the em-
ployees. This is the primary reason for upward com-
munication.
Upward'communication refers to messages from
persons in lower-level positions to persons in higher
positions. The messages sent usually provide information
on work progress, problems encountered, suggestions for
improving output, and personal feelings about work and
non-work activities.
4
-t l,
I Among the techniques used in upward commu-
nication are: formal grievanc6 procedures,lmplgyee
attitude and opinion surveys, (uggestion systems, dperr-
door policy, informal gripe sessions, task forces, and e5jt
interviews. '/

Formal Grieuance Procedures. Grievances are part

of a normally operating organization. To effectively deal
with them, organizations provide a system for employees
to air their grievances.
,t
Holley and Jennings define grievance as ""any em-
ployee's concern over a perceived violation of the labor
agreement that is submitted-lp.the grievance procedure
-$r eventual
,'upward
resolution."T G*fdif;rr.". represent an open,
communication channel whereby employees can
r.h '
lt' offer suggestions to management.
{1

lililliam H. Holley and Kenneth M. Jennings,The Labor Relations Pnx:ess,

Fourth Edition (New York: The Dryden Press, 1991) p. 566.

t22
 Depending on the size and nature of the company,
the grievance procedure may consist of a single step or
a number of steps. Companies with a collective bargaining
agreement with its union must refer to the grievance
procedure spelled out in the law on labor relations.s
Employee Attitude and Opinion Surueys. Finding out
what tlie employees think about the company is very
important. The exercise, however, requires expertise
and the company may not be prepared to do it. If the
organization's operation is large enough to justiff such
activity, then it mustbe done. Ifthe assistance ofan outside
research firm is considered, a benefit-cost analysis must
be used as a deciding factor.
Suggestion Systems. Suggestions from employees
are important sources of cost-saving and production
enhancing ideas. Even if majority of the suggestions are
not feasible, a simple means of acknowledging them
contributes to employee morale.
! Open-Door Policy. An open-door poliby, even on a
limited basis, provides the management with an oppor-
tunity to act on difficulties before they become full-blown
problems.
Informal GripeSessions. Informal gripe sessions can
be used positively if management knows how to handle
them. When employees feel free to talk and they are
assured of not being penalized for doing so, then man-
agement will be spared with lots of efforts determining
the real causes of problems in the company.
it
Task Force". Wh"r, a specific problem or issue arises,
a tg*-forl:e may be created and assigned to deal with the
problem or issue. Since membership of task forces con-
sists of management and nonmanagement personnel,
sManuel M. Manansala, The Law on Labor Relations (Manila: National
Bookstore, 1991) p. 31.

tag
integration and teamwork are fostered, creativity is
enhanced, and interpersonal skills are developed.
Exit Interuiews. When employees leave an orga-
nization for any reason, it is to the advantage of man-
agement to know the real reason. If there are negative
developments ih the organization that management is
not aware of, exit interyiews may provide some of the
answers.

Horizontal Communication
Horizontal communication refers to messages sent
to.individuals or groups from another of the same orga-
nizational level or position.
The purposes of horizontal communication are:
1. to coordinate activities between departmeuts
2. to persuade others at the same level of organi-
zation
3. to pass on information about activities or feelings
Among the techniques appropriate for horizontal
communication are: memos, meetings, telephones, picnics,
dinners, and other social affairs.

MANAGEMENT INFORMATION SYSTEM

It was mentioned at the beginning of this'chapter that
comrnunication may be used to serve the information
function. This means that a way must be devised to allow
the organization to absorb information necessary for
effective decision-making. Iri this regard, companies of
various sizes ha.re organized systems to gatherinformation
that will be useful to management. ,.r,
- Managemgnt information system (MIS) is defined
by Boone and kurtz as "an organized inetf,od of provi-
ding past, present, and projected information on internal

124
operations and external intelligence for use in decision-
making."s
The MIS currently used by corporate firms consists
of "written and electronically based systems for sending
reports, memos, bulletins, and the like."1o The system
allows managers of the different departments within the
firm to communicate with each other.
Figure 6.5 The MIS and lts Relation with the Different
Departments of the Organization

Manufacturing Marketing

MANAGEMENT
Finance INFORMATION
SYSTEM

The Purposes of MIS

The MIS is established. for various reasons. Wheelen
and Hunger enumerate them as follows:11
1. To provide a basis for the analysis of early war-
ning signals that can originate both externally
and intelnally.
2. To automate routine clerical operations like pay-
roll and inventory reports.
!'Louis E. Roone and David L. K.urtz. Contemporary Business, Second
Edition (Hinsdale, Illinois: The Dryden Press, 19?9) p. G-7.
roNickels and others, p. 380.
" rrWheelen and Hunger, p. 145.

126
 3. Tb assist managers in making routine decisions
Iike scheduling orders, assigning orders to
machines, and reordering supplies.
4. To provide the infcrmation necessary for man-
agement to make strategic or nonprogrammed
decisions.

SUMMARY
Communicating is a vital function of the engineer
manager. Organizations cannot function properly without
effective communication. If the required outputs must be
realized, communication must be managed.
Communication is used to serve the information
function, motivation function, control function, and
emotive function.
The communication process consists ofvarious steps,
namely, develop an idea, encode, transmit, receive, decode,
accept, use, and provide feedback.
The forms of communication are verbal and non_
verbal.
The barriers to communication may be classified as
personal, physical, or semantic. These may be elimina_
ted or minimized by using feedback, repeating messages,
using multiple channels, and using simplified language.
Communication flows_ are either downward, upward
or horizontal.
Management information' systems are useful rneans
of communication.

126
 OUESTIONS FOR REVIEW AND DISCUSSION
1. How important is communicating as a function of
engineering management?
2. What is communication? How may it be done?
3. For what purposes may communication be used in
the organization?
4. What are the steps in the communication process?
5. What is a communication channel? How may each
of the channel types be described?
6. What is meant by "noise"?
7. What is "decoding"? How may it be successfully
achieved?
8. Whzit are the forms of communication? How is one
ditferent from the other?

,.9 How may barriers to communication be classified?

What is the possible effect of emotion in commu-
nication?
10. How may communication barriers be overcome?
11. What techniques may be used in communication?
L2. What is a management information system? What
are its purposes?

SUGGESTED ITEM FOR RESEARCH

1. Scrutinize an existing engineering organization by
classifying techniques used in communication.

127
Case 6. NORTHERN CONTAINER CORPORATION: Time to
cry
Engineer Godofredo Monsod, Jr., general manager of
Northern Container Corporation (NCC), was taken aback
by a letter-reply from a prospective new customer (see
Exhibitl). His company has been operating for only five
years and is in need of new customers with potentials of
doing business with them in a long-term basis.
NCC is engaged in the manufacture of general and
sanitary tin cans, cooking oil filling facilities, and moulds
and dies fabrication. Its factory and administrative office
is located at Valenzuela, Metro Manila.
Since its first year of operation, Engineer Monsod
worked hard to make NCC's operation at full capacity. The
company's various departments are manned by a person-
nel complement of 323, growing.by b percent annually.
The increasing number of employees is a result of
the growing patronage of the company,s products by
customers. Engineer Monsod felt, however, that the
company needs one more good customer and their
operations will be at full capacity. It was in October 1gg6
that Engineer Monsod came in contact with the general
manager of a newly established company, Mr. Godofredo
Tapiador. Engineer Monsod was able to convince Mr.
Tapiador to order his tin can requirements from NCC.
In January 10, Lgg7, NCC's production manager
informed Engineer Monsod that unless new production
orders are received by his department, he will be forced
to recommend the lay-off of 12 workers in the factory. Five
days later, 12 workers were indeed laid off.
It was in January2S that Engineer Monsod thought
of making a follow-up of the agreement between him and
Mr. Tapiador. A letter was sent to Mr. Tapiador on the
same day. On January 28, Engineer Monsod read the reply
of Mr. Tapiador.

t28
 After a while, Engineer Monsod composed himself and.
prepared to think hard about what happened and what
possible remedies could be worked out.

Exhibit I

RED RIBBON MANUFACTURING CORPORATION

1201 Puting Bato
Taytay, Rizal

27 January 1997

THE GENERAL MANAGER

Northern Container Corporation
1S2O Amihan St.
Bakod Pare, Valenzuela
Metro Manila

Dear Sir:
This is in reply to your letter dated January 25,1gg7 inquiring about
whether we still consider ordering tin cans from your company.
Please be informed that since we have placed our order with your
marketing depaftment as early as December 1, 1996 and no reply
was sent to us, we deemed it wise to deal with another company
as late as January 15, 1997.
Thank you for your interest and we hope to do business with you
under other circumstances.

Yours truly,

GODOFREDO TAPIADOR
General Manager

tw
 MOTIVATING

What is Motivation?

Factors Contributing to Motivation

Theories of Motivation

Maslow's Need Hierarchy Theory

Herzberg's Two-Factor Theory

Expectancy Theory

Goal Setting Theory

Techniques of Motivation

Motivation through Job Design

Motivation through Rewards

Motivation through Employee Participation

Other Motivation Techniques

180
 Chapter 7

Productivity has always been a serious concern of

the management of firms. If it improves, it means grea-
ter chances for the company to grow and be more stable.
One reason why the Philippine economy cannot move
steadily forward is our record of low productivity for so
many years.
Higher productivity, howeveq is not a result ofchance.
It happens because of harder, more efficient, and more
intelligent work made by the employees. To be willing
partners, however, the requirement is for them to be
properly motivated. An example is the management of
a construction firm wanting its employees to finish pro-
jects on time, with the quality required at the least cost.
Tb achieve this, various methods of motivation may be
applied.
When the cost of the other fdctors of production is
seriously affecting the viability of the firm, the remaining
factor (i.e., labor) may save the company from financial
difficulties. However, this will depend on whether or not
Iabor will be motivated to perform their assigned task.

WHAT IS MOTIVATION?
Motivating refers to the act of "giving employees
reasons or incentives . . . to work to achieve organizational
objectives."l Motivation, on the other hand, refers to the
"process ofactivating behavior, sustaining it, and direct-
ing it toward a particular goa1."2 This definition is use-
ful because it specifies three stages: activating, sustain-
rFerrel and Hirt, p. 184.
2Matlin, p. 380.

l3r
 ing, and directing actions towards the achievement of
objectives.

FACTORS CONTRIBUTTNG TO MOTIVATION

There are certain factors influencing a person,s desire
to do his job wel. They are the following:3
1. Willingness to do a job. people who Iike what they
are doing are highly motivated to produce the
expected output.
2. Self-confidence in carrying out a task. When
employees feel that they have the required skill
and training to perform a task, the more moti-
vated they become.
3. Needs satisfaction. people will do their jobs well
if they feel that by. doing so, their needs will be
satisfied.

THEORIES OF MOTIVATION
There are various theories of motivation, but only
the four most influential ones will be discussed. They
consist of the following:
1. Maslow's needs hierarchy theory

,., 2. Herzberg's two-factor theory

3. Expectancy theory
4. Goal setting theory

Maslow's Needs Hierarchy Theory

Abraham Maslow, a psychologist, theorized that
human beings have five basic ,r""J" which are as fol-
lows:_physiological, security, social, esteem, and
self_
actualization. These. needs are hierarchical, which
means,
3Cole and
Hamilton, p. 146.

t32
one need will have to be satisfied frrst before the other
need.a
Physiotogical Needs. Those that are concerned with
biological needs like food, drink, rest, and sex fall under
the category of physiological needs'5 These needs take
priority over other'needs.
Security Need.s. After satisfying the physiological
needs, people will seek to satisfy their safety needs' These
needs include freedom from harm coming from the ele-
ments or from other people, financial security which may
be affected by loss of job or the breadwinner in the fam-
ily, etc.

Figure 7.1 The Process of Motivation

plus
NEEDS MOTIVATION

which leads to
readiness for
the next need

NEED ACTION OR
SATISFACTION GOAL-DIRECTED
BEHAVIOR
which
results
to

aHarper W. Boyd, Jr. and Orville C. Walker, Jr., Marketing ManaSlement

(Homewood, Illinois: Irwin, 1990) p. 12.
5E. Jerome McCarthy and William D. Perreault, Jr , Basic Marketing
(Homewood, Illinois: Irwin, 1990) p. 173.

133
 Figure 7.2 Maslow's Hierarchy of Needs

SELF-ACTUALIZATION NEEDS
Self-fulfillment

ESTEEM NEEDS
Status, respect, prestige

SOCIAL NEEDS
Friendship, belonging, love

SECURITY NEEDS
Freedom from harm, financial security

PHYSIOLOGICAL NEEDS
Food, water, sleep, sex, body elimination

Social Needs. After satisfying his'physiological and

security needs, the employee will now strive to secure love,
affection, and the need to be accepted by peers.
Esteem Needs. The fourth level of needs is called
esteem needs and they refer to the need for a positive self-
image and self-respect and the need to be respected by
others.c
Self-Actualization Needs. The frfth and the topmost
level needs'in the hierarchy are called self-actualizatiou
needs and involve realizing our full potential as human
beings and becoming all that we are able to be.
The Releuance of Maslou's Theory to Engineering
Managemenl. Even if Maslow's theory has been largely
questioned, one basic premise cannot be discarded: a
fulfilled need no longer motivates an individual. If this
is the situation the subordinate is in, the engineer manager
must identify an unfullfilled need and work out a scherne

cGregory Moorhead and Ricky Griffin, Organizational

Behauio4 Second
Edition (Boston: Houghton Mifflin Co., 1989) pp. 109-110.

tu
so that the subordinate will be motivated to work in order
to satisfy the unfulfrlled need'
Herzberg's Two-Factor Theory
The two-factor theory is one developed by Frederick
Herzberg indicating that a satisfied employee is motiva-
ted from within to work harder and that a dissatisfred
employee is not self-motivated'7
Herzberg identified two classes of factors associated
'with employee satisfaction and dissatisfaction' In his
research, Iierzberg found out that satisfied employees
mentioned the following factors (called satisfrers or moti-
vation factors) responsible for job satisfaction: achibve-
ment, recognition, work itself, responsibility, advance-
*""t, and-growth. Dissatisfied employees mentioned
the following factors (called dissatisfiers or hygiene
factors) as responsible for job dissatisfaction: company
folicy and administration, supervision, relationship with
^.op"*itor, work conditions, salary, relationship with
f"L.., personal life, relationship with subordinates'
status, and securitY.
If Herzberg's theory will be considered by the engi-
neer manager in motivating employees, he must do
somethingtoeiiminatethedissatisfiersandinstall
satisfrers.AsshowninFigureT.S,evenifthedissatisfiers
are eliminated (at point zero), the employee is still not
motivated to work hard.

Expectancy Theory
Expectancy theory is a motivation model based on
theassumptionthatanindividualwillworkdepending
onhisperceptionoftheprobabilityofhisexpectationsto
happen.
The theory poses the idea that motivation is deter-

?Kreitner, p. 388.

r36
 Figure 7.3 Herzberg's Two-Factor Theory

10
9
8
7
OF
LEVEL
6
SATISFACTION
5
4
3
2
1

0 level of no satisfaction and

1 no dissatisfaction
D (no reason not to work
- but no motivation to
3 work hard)
4
LEVEL OF 5
DISSATISFACTION 6
7
8
g
10

mined by expectancies and valences.s An expectancy is a

belief about the likelihood or probability that a particular
behavioral act (Iike attending training sessions) will lead
to a particular outcome (like a promotion). Valence is the
value an individual places on the expected outcomes or
rewards.
Expectancy theory is based on the fbllowing as-
sumptions:e

sRichard M. Steet:s,Introductionto
Orglanizatictnal Behauior, Fourth Edition
(New York: Harper Collins Publishing, Inc., 1991) pp. 161-162.
'0Higgins, p. 438.

136
Figure 7.4 An ExpectancY Mode!

perceived
probability
of receiving
an outcome, Valence +
given performance

Valence +

First-level
Outcome
(compensation)
Valence -

@ PERFOHMANCE

First-level
Outcome
(recognition)

Second-level
Outcome
(esteem of
others)

r37
 1. A combination of forces within the individual
and in the environment determines behavior.
2. People make decisions about their own behavior
and that of organizations
q. People have different types ofneeds, goals, and
desires.
4. People make choices among alternative beha-
viors based on the extent to which they think a
certain behavior will lead to a desired outcome.
Shown in Figure 7.4 is a model of the expectancy
theory.

Goal Setting Theory

Goal setting refers to the process of ,,improving per_
formance with objectives, deadlines or quality standard.,,10
When individuals or groups are assigned specific goals,
a clear direction is provided and which later motivates
them to achieve these goals.
The goal setting model drawn by EdwinA. Locke and
his associates consists of the following
components:11
1. goal content
2. goal commitment
3. work behavior
4. feedback aspects
Goal Content. To be sufficient in content, goals must
be challenging, attainable, specific and measurable, time_
limited, and relevant.
When goals are challenging, higher performance may
be expected. The sales quotas imposed by companies tl

loKreitner, p. G-4.
llBartel and Martin, p. 164

138
 Figure 7.5 How Goals Motivate and Facilitate Performance

GOAL
CONTENT

which is
1. challenging
2. attainable
3. specific and measurable
4. time limited
5. relevant

knowledge job knowledge

of results (or <-
and ability
feedback

with
1. direction
2. effort
3. persistence
4. planning
Task Situational
Complexity Constraints:

1. tools
7-. niaterials
r:)
J. equi;irrlr*nt
PERFO}TMANCE

t39
individual members of their sales force indicate reliance
of these companies to the use of challenging goals.
Goals must be attainable if they are to be set. If they
are not, then workers will only be discouraged to perform,
if at all.
Goals must be stated in quantitative terms when-
ever possible. When exact figures to be met are set,
understanding is facilitated and workers are motivated
to perform.
There must be a time-limit set for goals to be ac-
complished.
The more relevant the goals are to the company's
mission, the more support it can generate from various
levels of employment in the organization.
Goal Commitment. When individuals or groups are
committed to the goals they are supposed to achieve, there
is a chance that they will be able to achieve them.
Worh Behauior. Goals influence behavior in terms of
direction, effort, persistence, and planning. When an
individual is provided with direction, performance is
facilitated. In trying to attain goals that are already
indicated, the individual is provided with a direction to
exert more effort. The identification of goals provide a
reason for an individual to persist in his efforts until the
goal is attained.
Once goals are set, the first important input to
planning is already in place.
!,' Feedbach Aspects. Feedback provide the individuals
with a way of knowing how far they have gone in achiev-
ing objectives. Feedback also facilitate the introduction
of corrective measures whenever they are found to be
necessary.

140
TECHNIQUES OF MOTIVATION
Individual or groups of individuals may be motivated
to perform through the use ofvaribus techniques. These
techniques may be classified as follows:12
1. motivation through job design
2. motivation through rewards
3. motivation through employee participation
4. other motivation techniques for the diverse work
force

Motivation Through |ob Design

A person will be highly motivated to perform if he
is assigned a job he likes. The first requisite, however,
is to design jobs that will meet the requirements of the
organization and the persons who will occupy them. Job
design may be defined as "specifying the tasks that
constitute a job for an individual or a group."l3
In motivating through the use of job design, two
approaches may be used: fitting people to jobs or fitting
jobs to people.
Fitting People to Jobs. Routine and repetitive tasks
make workers suffer from chronic dissatisfaction. To
avoid this, the foliowing remedies may be adapted:
1. Realistic job previe where management
provides honest explanations of what a job
actually entails.
2. Job rotation
- where people are moved period-
ically from one specialized job to another.
3. Limited exposure
- where a worker's exposure
to a highlyfragmented and tedious job is limited.

l2Kreitner, pp. 393-410.

l']Heizer and Render, p. 426.

l4l
 Figure 7.6 Technigues of Motivation

TECHNIQUES
OF
MOTIVATION

Motivation Motlvation Motivation thru Other

thr'u thru Employee's Motivation
Job Design Rewards Participation Techniques

Fitting
people
to jobs

with
I extrinsic
rewards
quality
control
circles

1. realistic
intrinsic
self-
job managed
previews rewards
teams
2. job
rotation
3. limited
exposure

Fitting Flexible Family

jobs work support sabbaticals
to people schedules services

1.
enlargement
2. job
enrichment

142
 Fitting Jobs to People.Instead of changing the person,
management may consider changing the job. This may be
achieved with the use of the following:
1. Job enlargement where two or more specialized
. -
tasks in a work flow sequence is combined into
' u single job.
2. Job enrichment where efforts are made to
make jobs more -interesting, challenging, and
rewarding.

Motivating Through Rewards

Rewards consist of material and psychological
benefits to employees for performing tasks in the work-
place. Properly administered reward systems can im-
prove job performance and satisfaction.
Rewards may be classifred into two categories:'
I :; f . Extrinsic
- those which refer to payoffs grarted
to the individual by another party. Examples are
money, employee benefits, promotions, recog-
nition, status s5rmbols, praise, etc.
2. Intrinsic rewards those which are internally
- which are self-granted.
experienced payoffs
Examples are a sense of accomplishment, self-
esteem and self-actualization.
Extrinsic and intrinsic rewards coincide with needs
spelled out at the beginning of the chapter.
Management of Extrinsic Rewards. To motivate job
performance effectively, extrinsic rewards must be properly
managed in line with the following:
f. it must satisfy individual needs;
2. the employees must believe effort will lead to
reward;

143
Figure 7.7 An Array of Monetary and Other lncentives for
r Employees

Ilpe of Benefrt Feature

1. Monthly pay
2. 13th month pay
3. 14th month pay
4. Housing allowance
5. Sick leave benefits
6. Vacation leave benefits
7. Pension plan
depends on qualifications
of employee
given at mid-year
given at yearend
given to permanent
employees
15 days a year with pay
15 days a year with pay
glven to permanent
'employees

8. Paid vacation trip given to employess with

9. Health insurance
10. Accident insurance
outstanding performance
given to permanent
employees
given to permanent
employees

3. rewards must be equitable;

4. rewards must be linked to performance.
No single type of reward is generally applicable to
all employees. This is so because individual persons
have needs different from other persons. As much as
possible the particular needs of an individual must be
matched with the corresponding reward if motivation is
the objective. The administrative contraints inherenu to
such systems, however, will be a hindrance to its adop-
tion. Whenever feasible, however, it must be used.
Employees must believe that efforts will lead to
tu
reward. Otherwise, they will not strive to turn in more
efforts in their particular job assignments.
Rewards that are not equitable will not produce the
desired motivation.
When employees know that reward is tied up to indi-
vidual performance, management may expect extra efforts
from them. A negative example is the practice in some
government offices where every employee, regardless of
performance, is g"iven a productivity bonus. As a result,
the majority are not motivated to exert extra efforts.

Motivation Through Emptoyee Participation

When employees participate in deciding various as-
pects of their jobs, the personal involvoment, oftentimes,
is carried up to the point where the task is completed.
The speci,fic activities identified where employees
may participate are as follows:
1. setting goals
2. making decisions
3. solving problems, and
4. designing and implementing organizational
changes.
i,
The more popular approaches to participation in-
cludes the following:
1. quality control circles
2. self-managed teams
t)
'' Quality Control Circles. A method of direct emplo-
yee participation is the quality control circle (QCC). The
objective ofthe QCC is to increase productivity and quality
of output.
The circle consists of "a group of three to ten em-
ployees. usually doing related work, who meet at regular

146
intervals (once a week for an hour, for exarnple) to identiff
problems and discuss their solutions."la The circle includes
"a leader such as a foreman, but rely on democratic pro-
cesses."l5 The members are trained in various analysis
techniques by a coordinator.
The circle forwards its recommendations to man-
agement, which in turn, makes decisions on its adaption.
Self-managed Teams. When workers have reached a
certain degree of discipline, they may be ripe for forming
self-managed teams. Also known as autonomous work
groups or high performance teams, self-managed teams
. "take on traditional managerial tasks as part of their
normal work routine."16

Figure 7.8 The Quality Control Circle Process

Quality circle members Quality circle

brainstorm, gather data, members prepare
and establish cause solutions and
and effect. recommendations

Results are measured Management

and feedback, considers
recognition and quality circle
rewards given to recommendations
quality control and makes
circle members. decisions.

laRichard M. Steers .and others, Managing Effectiue Organizations, An

Introduction (Boston, Massachussetts: Kent'Publishing Co., 1985) p. 256.
l5Richard J. Schernberger, Operations Management {Plane, Tbxas: Business
Publications, Inc., 1981) p. 352.
l6Kreitner, p. 406.

146
 The self-managed teams work on their own, turning
otit a complete product or seryice and receiving minimal
supervision from managers who act more as facilitators
than supenzisors.
When a product or service is produced by a group
of professionals or specialists, they
might as well be formed
as a self-managed team to save on supewisory costs.

Requisites to Successful Employee Participation

Program
To succeed, an employee participation program will
require the following:
1. a profit-sharing or gainsharing plan.
2. a long-term employment relationship with good
job security.
3. a concerted effort to build and maintain group
cohesiveness.
4. protection of the individual employee's rights.

Other Motivation Techniques

The advent of theories on individual differences and
the bioiogical clock of hurnan beingslT put pressure on the
engineer manager to adapt other motivation techniques
whenever applicable. These refer to the following:
1. flexibie work schedules
2. family support services
3. sabhaticals.
Flexible Work Sehedules. There is an arrangement,
called flextime, whichallows employees to determine their
own arrival and departure times within specified limits.
For example, an engineering firm may allow one group

rTMatlin, p. 141.

t47
of employees to take the B:00 AM to 5:00 PM schedule,
another group takes the 9:00 AM to 6:00 PM schedule,
and another takes the 10:00 AM to 7:00 PM schedule.
An alternative to this arrangement is the adaption
of the forty-hour work in four days allowing the employee
to choose a "day-off'.
An innovation of a popular bank in Makati is the
hiring of part-time tellers to work four hours a day from
Monday to Friday.
There are certain benefits that are offered by flexi-
ble work schedules, although it is not appropriate for all
situations. Nevertheless, the engineer manager must
decide when it is applicable.
Family Support Seruices. Emptroyees are oftentimes
burdened by family obligations like caring for children.
Progressive companies provide day care facilities for
children of employees. A multinational company in far
flung Davao province has even opened an elementary and
a high school within the plantation site.
I Sabbaticals. A sabbatical leave is one glven to an
employee after a certain number of years of service. The
employee is allowed to go on leave for two months to one
year with pay to give him time for family, recreations, and
travel.
It is expected that when the employee returns for
wo'i'k, his motivation is improved.

SUMMARY
Motivating is the management action of giving em-
ployees reasons or incentives to work to achieve orga-
nizational objectives. I\{otivation is the process of activa-
ting behavior, sustaining it, and directing it towards a
particular goal.
148
 Tlie factors contributing 1;o motivation consist of:
(1) willingness to do a job, (2) st:lf-confidence in carrying
out a task, and (3) needs sabisfaction.
There are four theories of motivation that are crucial
to management: These are:
1. Maslow's need hierarchy theory
2. Herzberg's two-factor theory
3. Expectancy theory
4. Goal setting theory
Various techniques of motivation consist of: a) moti-
vation through job design, 2) motivation through rewards,
3) motivation through employee participation, and 4) other
motivation techniques like flexible work schedules, family
supporf services, and sabbaticals.

149
 QUESTIONS FOR REVIEW AND DISCUSSION
1. Why is motivating relevant to the job of the engineer
manager?
2. Are motivation techniques applicable to engineers?
Cite examples.
3. When Maslow insinuated that needs are hierarchical,
what does he mean?
4. What factors are associated with employee satis-
faction and dissatisfaction?
5. What are expectancies and valences? How do they
affect perfotmance?
6. What is meant by goal setting? What are the com-
ponents of the goal setting model?
7. How may an individual be motivated through job
design?

8. How may rewards be classified?

9. In what specific activities may employees partici-
pate?

10. What benefits are made possible under flexible work

.schedules?

SUGGESTED ITEM FOR RESEARCH

1. List down the financial and nonfinancial benefrts
given to employees by an engineering firm of your
choice.

160
Case 7. BATANGAS POLYTECHNIC COLLEGE: The Morning
After t

Engineer Felicidad Lazaro, a mechanical engineering

graduate of Adamson University, has been operating in
the past five years an auto parts supply in Kumintang
Ilaya, Batangas City. It is a lucrative business she inhe-
rited from her father.
Four years ago, she started teaching on a part-time
basis at the Batangas Polytechnic College. After a year,
she became a full-time faculty member of the college of
engineering. She attended to her auto parts business
after her official hours at the school.
Miss Lazaro's dedication to her duties earned her the
chairmanship of the Mechanical Engineering Depart-
ment. When her boss, the dean, was offered a good payrng
job abroad, he resigned. Miss Lazaro was named the new
dean of the College of Engineering.
Miss Lazaro feels that even if she is offered a job
anywhere, she cannot accept it because ofher concern for
her business. This made her also think that she must take
her new job as dean, seriously.
Miss Lazaro's frrst concern is to recruit well-qualified
engineers to filI up the slots left by five faculty members
who resigned. An advertisement for the vacancies was
made. After a few weeks of waiting, only ten applications
were forwarded to her. Nine of the applicants were new
graduates and have no job experience of any kind. The
tenth applicant is a newly retired government employee
with no teaching experience.
Miss Lazaro slowly realized that there are good
engineers in the area but they are not attracted by the
prospect of teaching engineering subjects. Miss Lazaro is
also aware that even those that are currently empioyed
by the school are only waiting for a good job offer from
other institutions.
l6l
 Miss Lazaro was mildly shocked when her assistant
showed her the enrollment statistics of the College of
Engineering. In the past five years, a steady 107o increase
in the number of students was noted. last year, there was
a L67o increase.

Just yesterday, Engineer Lazaro was approached by

two engineering professors, one a department chairman,
and the other, a senior faculty member. They were
requesting for a year's leave of absence. Because nobody
at the moment could take their place, Engineer Lazaro
disapproved their requests. Engineer Lazaro was given
the information that the two will take jobs in another
company on a one-year trial basis. If prospects are good,
they will resign from the school.
After having been informed of the disapproval of
their request for leave, the two professors filed their
irrevocable resignations the next morning.
Engineer Lazaro is now faced with two serious
problems:
1. formulating an immediate solution to the short-
age of teachers in her area of concern; and
2. keeping the incumbedt ones satisfied with their
jobs.
Engineer Lazaro is now contemplating how she will
survive this crisis.

t62
 LEADING

a What is Leading?
a How Leaders lnfluence Others
Bases of Power
The Nature of Leadership
Traits of Effective Leaders

Leadership Skills
Behavioral Approaches to Leadership Skills
Ways Leaders Approach Peopte
Ways Leaders Use Power
Leaders Orientation Toward Tasks and People

Contingency Approaches to Leadership Style

Fiedler's Contingency Model
Hersey and Blanchard Situational Leadership
Model

Path-Goal Model of Leadership

Vroom's Decision-Making Model

163
 Chapter I

There are times when in spite of great diffrculties,

jobs are needed to be done, projects are needed to be
finished on time, and services are needed to be provided.
Employees in the production lines tend to be irritated by
delays in the arrival of necessary production materials
and supplies. Workers complain when difficult jobs are
assigned to their units. When calamities strike, employees
of public works agencies need more than wages to complete
assigned tasks as quickly as possible. These and other
difficulties found in the workplaces provide suffrcient
reasons for poor productivity. The situations cited require
managers with effective leadership.
There are many instances, however, when the ill
effects of whatever shortcomings happen. They seriously
affect the performance of workers. Effective leadership
tends to neutralize such difficulties. Good working con-
ditions, however, cannot overcome the disadvantages of
bad leadership. These are proven by many cases which
occurred in the past and even in modern times.
Successful firms regard the leadership skill require-
ment as a high priority concern. Big companies like Warner
Lambert Philippines, Shell, Fuji-Xerox, and Daewoo are
seriously involved in training their managers to become
effective leaders.r
Engineer managers, in whatever management level
they happen to be, are not exempted from the problem
of effective leadership. If this is really so, then they must
be concerned with the management function of leading.

Uet Magsaysay, "Throw Away Those Rulers,', World Executiue,s Di51est,

December 1996, p. 8.

164
WHAT IS LEADING?
Leading is that management function which "involves
influencing others to engage in the work behaviors
necessary to reach organizational goals."z The definition
indicates that a person or group of persons tasked with
managing a group must assume the role performed by
leaders.
, While leading refers to the function, leadership refers
to the process.

HOW LEADERS INFLUENCE OTHERS

Engineer managers are expected to maintain effect-
ive work forces. To be able to do so, they are required to
perform leadership roles. Leaders are said to be able to
influence others because of the power they possess. Power
refers to the ability ofa leaddr to exert force on another.

Bases of Power
The power possessed by leaders may be classified
according to various bases. They are as follows:
1. legitimate power
2. reward power
3. coercive power
4. referent power
5. expert power
Legitimate Power. A person who occupies a higher
position has legitimate power over persons in Iower
positions within the organization. A supeirvisor, for ins-
tance, can issue orders to the workers in his unit. Com-
pliance can be expected.
Reward Powen When a person has the ability to give

zBartol and Martin, p. G-L3.

156
rewards to anybody who follows orders or requests, he is
said to have reward power. Rewards maybe classified into
two forms: material and psychic.
Material rewards refer to money or oth6r tangible
benefits like cars, house and lot, etc. Psychic rewards
consist of recognition, praises, etc.
Coerciue Powen When a person compels another to
comply with orders through threats or punishment, t1e is
said to possess coercive power. Punishment may take the
form of demotion, dismissal, witholding of promotion,.etc.
Referent Potten When a person can get compliance
from another because the latter would want to be iden-
tified with the former, that person is sairl to have referent
power.
Expert Fouer Experts provide specialized information
regarding their specific lines of expertise. This influence,
cailed expert power, is possessed by people with great ski1ls
in technology.
The expert power exercised by environmetal scien-
tists wab enough to force governments throughout the
world to pass legislations favorable to environmental
protection.

THE NATURE OF LEADEHSHIP

Leadership may be referred to as "the process of
influencing and supporting others to work enthusiastically
toward achieving objectives."s Leadership is expected of
any manager in charge of any unit or division.
One cannot expect a unit or division to achieve objec-
tives in the absence of effective leadership. Even if a leader
is present, but if he is not functioning properly, no unit
or division objectives can be expected to be achieved.
3Newstrom and Davis, p. 222.

156
Traits of Effective Leaders
There are certain leadership traits identifred by re-
searchers and which may be useful in deveioping effect-
ive leaders. These traits are as follows:
1. a high level of personal drive
2. the desire to lead
3. personal integrity
4. self-confidence
5. analytical ability or judgment
6. knowledge of the company, industry or technology
7. charisma
8. creativity
9. flexibility
Personal Driue. Persons with drive are those identi-
fied as willing to accept responsibility, possess vigor,
initiative, persistence, and health. Drive is a very impor-
tant leadership trait because of the possibility of failure
in every attempt to achieve certain goals. If a chosen way
to reach a goal is not successful, a leader finds another
way to reach it, even ifit precedes a succession offailed
attempts. This will, of course, require a high level of
personal drive from the leader.
An example of a person with a high level of personal
drive is Paul Mediarito, plant director of the Polo plant
of San Miguel Corporation between 1992 and 1994. He
was instrumental in radically changing the problem-
riddled Polo plant to a world-class brewery with modern
technology and a work force with a new attitude.a How
he was able to prove himseif as a leader with enough drive
is a feat worth emulating.
aRachel Salazar, "The Brewery That Wouldn't Die" ,World Executiue's Digest,
August 1995, p. 14.

167
 The Desireto Lead. There are somepersonswhohave
all the qualifications for leadership, yet they could not
become leaders because they lack one special require-
ment: the desire to lead.
Even if they are forced to act as leaders, they will
not be effective because their efforts will be half-heartedf
Leaders with a desire to lead will always have a reservoir
of extra efforts which can be used whenever needed.
Personal Integrity. A person who is well-regarded by
others as one who has integrity possesses one trait of a
leader. One who does not have personal integrity will
have a hard time convincing his subordinates about
the necessity of completing various tasks. If this is the
case, the leader will, then, resort to "exercising his
authority and getting things done entirely by the use or
threat of use of the coercive powers yested in him by
virtue of the rank and position he occupies in the hierar-
chy."u If this happens, the economic and emotional costs
will be too high to be maintained for a desirable length
of time. As it is, the better option is to have personal
integrity.
According to V.K. Saraf, integrity means and includes
"honesty, honour, incorruptibility, rectitude, righteous-
ness, uprightness, and similar virtues."(j
Self-Confidence. The activities of leaders require
moves that will produce the needed outputs. The steps
of conceptualizing, organizing, and implementing will
be completed if sustained efforts are made. For the moves
to be continuous and precise, self-confidence is neces-
sary.
McKinsey and company found in a study they co4-
ducted that leaders of mid-sized, high growth companies

6V.K. Saraf, How to Becorne a Good Leader, Pathways tu Perfection

(Singapore: S.S. Mubaruk and Brothers Pte. Ltd., 1995) p. 289.
6l,oc. cit.

158
were "almost inevitably consummate salesmen who
radiate enormous contagious self-confidence."l
Wess Roberts was very precise when he declared the
following as one of the traits of a good leader:8
'A chieftain cannotwin ifhe loses his nerve. He should
be self-confident and self-reliant and even if he does not
win, he will know he has done his best."
Analytical Ability. Leaders are, oftentimes, faced with
difficulties that prevent the completion of assigned tasks.
A subordinate, for instance, may have a record of conti-
nually failing to produce the needed output. A leader
with sufficient skill to determine the root cause of the pro-
blem may be able to help the subordinate to improve his
production
The ability to analyze is one desirable trait that a
leader can use to tide him over many challenging aspects
of leadership.
Knowldege of the Company, Industry or Technology.
A leader who is well-informed about his company, the
industry where the company belongs, and the technology
utilized by the industry, will be in a better position to
provide directions to his unit.
A company, for example, may be the industry leader
because it satisfies the need of its particular market, i.e.,
providing quality products at affordable prices. When a
competing firm is fast catching up with the leader, and
the leader's managers know this, they will better serve
the interest of their company.
Charisma. When a person has sufficient personal
magnetism that leads people to follow his directives, this
person is said to have charisma. Great personalities in

7A. Levitt, Jr. and J. Albertine, "The

Successful Entrepreneur:APersonality
Profile", Wall Street Journal, August 29,1983, p. L2.
8Wess Roberts, Leadership Secrets of Attila
the Hun (New York: Warner
Books, 1987) p. 101.

r69
history like Napoleon Bonaparte, Julius Caesar, Adolf
Hitler, George Washington, Elvis Presley and others are
said to possess charisma. This characteristic was greatly
responsible for whatever accomplishments they achieved.
When used properly, charisma will help the leader
in achieving his goals. With some adjustments, subor-
dinates may be expected to do their tasks willingly.
Creatiuity. Ronnie Millevo defines creativity as "the
ability to combine existing data, experience, and precon-
ditions from various sources in such a way that the results
will be subjectively regarded as new, valuable, and inno-
vative, and as a direct solution to an identified problem
situation."e
As leaders are tasked to provide solutions to problems
besetting their particular units or divisions, creativity will
be a very useful trait. Problems, are oftentimes, complex
and challenglng, and if they are, the leader will need all
the creative abilities he has.
Flexibility. People differ in the way they do their work.
One will adapt a different method from another person's
method. A leader who allows this situation as long as the
required outputs are produced, is said to be flexible.
There is wisdom in being flexible. It allows the other
means of achieving goals when the prescribed manner is
not appropriate.
Leadership Skills
Leaders need to.have various skills to be effective.
They are:
1. technical skills
2. human skiils, and
3. conceptual skills.

'Ronnie Millevo, Handbook of Praduct Design and Deuelopment (Manila:

National Book Store, 1995) p. 99.

160
 These skills are used in varying degrees at different
management levels (Figure 8.1).

Figure 8.1 Leadership Skills and Their Use at Various

Management Levels

Top
Manage-
ment
HUMAN I CONCEPTUAL
TECHNICAL
SKILLS I SKILLS
Middle SKILLS
Manage-
ment

Lower
Manage-
ment
DEGREE OF SKILLS NEEDED

Technical Shills. These are skills a leader must

possess to enable him to understand and make decisions
about work processes, activities, and technology. Tbchnical
skill is the specialized knowledge needed to perform a job.
When a leader has the technical skill related to his area
of responsibility, he will be more confident in performing
his functions. The engineer manager, for instance, must
be able to perform engineeringjobs, ifhe wants to maintain
a motivated work force.
The engineer manager of a construction firm must
have sufficient technical skills to undertake construction
works. The manager of an electrical engineering firm
must possess the skill to install and maintain electrical
facilities and equipment.

161
 Human Skills. These skills refer to the ability of a
leader to deal with people, both inside and outside the
organization. Good leaders must know how to get along
with people, motivate them, and inspire them.
Apart from motivating, human skills inciude coach-
ing, communicating, mordle building, training and
development, help and supportiveness, and delegating.
Conceptual Skills. These skills refer to "the ability
to think in abstract terms, to see how parts fit together
to form the whole."lo A very basic requirement for effect-
ive implementation is a clear and well-expressed pre-
sentation of what must be done. A leader without suffi-
cient conceptuai skills will fail to achieve this.

BEHAVIORAL APPROACHES TO
LEADERSHIP STYLES
Those in positions of leadership exhibit a patteln of
behavior that is unique and different from other patterns.
This total pattern of behavior is cailed leadership styie.
There are several approaches used in classifying
leadership styles. They are as follows:1l
1. According to the ways leaders approech people
to motivate them-
2. According to the way the leader uses power.
3. According to the lead.er's orientation towards task
and people.

Ways Leaders Approach People

There are two ways, a leader may approach people
to motivate them. They are: (1) positive leadership and
(2) negative leadership.

loFerrell and Hirt, p. 193.

llNewstrom and Davis, pp. 226-238.

r62
 Figure 8.2 Behavioral Approaches to Leadership Styles

according
to ways
leaders
approach
people to
motivate
them

BEHAVIORAL
APPROACH
according
to the
way the
leader uses
power

hccording
to the
leader's
orientation
toward tasks
and people

When the leader's approach emphasizes rewards,

the style used is positive leadership. The reward may be
economic, like an increase in monthly salary, or it may
be noneconomic like membership in an advisory com-
mittee.
When punishment is emphasized by the leader, the
style is said to be negative leadership. The punishment
may take the form ofreprimand; suspension, or dismissal.
Leaders, sometimes, alternately use positive and

163
negative leadership depending on the characteristics of
the individual subordinates.

Ways Leaders Uses Power

Leadership styles also vary according to how power
is used. They are as follows: (1) autocratic, (2) participa-
tive, and (3) free-rein.
Autocratic Leaders. Leaders who make decisions
themselves, without consulting subordinates are called
autocratic leaders. Motivation takes the form of threatp,
punishment, and intimidation of all kinds.
The autocratic style is effective in emergencies and
when absolute followership is needed. An example is a civil
engineer in charge.of constructing a temporary bridge over
one that has been currently damaged.
The disadvantages of autocratic leadership is that the
leader "receives little, if any, information and ideas from
his people as inputs into his decision-m&king.,,rz
Participatiue Leaders. When a leader openly invites
his subordinates to, participate or share in decisions,
policy-making and operation methods, he is said to be a
participative leader.
The advantage of participative leadership is that it
generates a lot of good ideas. Another advantage is the
increased support for decisions and the reduction of the
chance that they will be unexpectedly undermined.
The disadvantage of participative leadership is that
it is time-consuming and frustrating to people who prefer
to see a quick decision reached.
Free-Rein Leaders. Leaders who set objectives and
allow employees or subordinates relative f,reedom to do
whatever it takes to accomplish these objectives, are called

l2James Owns, "Five

Basic Styles and Their U ses,, World, Executiue,s Digest,
March 1982, p. 11.

t64
free-rein leaders. They are also referred to as laissez-faite
leaders. This leadership style is most applicable to cer-
tain organizations manned by professionals like doctors
and engineers. An example is the engineering depart-
ment of a university which is headed by the dean.
If free-rein leadership fits the situation, there is full
managerial deiegation resulting to optimum utilization
of time and resources. This happens because many
peopls are motivated to full effort only if given this kind
of free-rein.
The weakness of free-rein leadership is that there is
very little managerial control and a high degree of risk.
If the leader does not know well the competence and
integrity of his people and their ability to handle this kind
of freedom, the result could be disastrous.

Leaders Orientation Toward Tasks ant{ PeopX.e

Leaders may be classified accordiug to how theyvierv

tasks and people. Consequently, a leader rnay either be:
(1) employee oriented or (2) task oriented.
Employee Orientation Aleader is said to be employee-
oriented when he considers empioyees as human beings
of "intrinsic importance anrl. with individual and personal
need"13 to saiisfy.
Task Orientutian. A it:;dcr is said to be task-oriented
ifhe places stress on production and the technical aspects
of the job and the empioyees are viewed as the means of
getting the work done.

CONTINGENCY APPROACHES TO
LEADERSHIP STYLE
The contingency approach is "an effort to determine

tsHiggins, p. 506.

165
through research which managerial practices iand tech-
niques are appropriate in specific situations.,,la The various
contingency approaches are as follows:
1. Fiedler's Contingency Model
2. Hersey and Blanchard's Situational Leadership
Model
3. Path-Goal Model of Leadership
4. Vroom's Decision Making Model

Fiedler's Contingency Model

According to Fred Fiedler, "leadership is effective
when the leader's style is appropriate to the situation.,,15
The situational characteristics is determined by three
principal factors:
1. the relations between leaders and followers
2. the structure of the task, and
3. the power inherent in the leaderh position.
The situational characteristics vary from organiza-
tion to organization. To be effective, the situation must
fit the leader. If this is not so, the following may be
tried:16

1. Change the leader's trait or behaviors.

2. Select leaders who have traits or behaviors fitting
the situation.
3. Move leaders around in. the organization until
they are in positions that frt them.
4. Change the situation.

laNewstrom and Davis, pp.

280-236.
t5Kreitner, p. G-2.
tcAldag and Stearns, p. 510.

166
Hersey and Blanchard Situational Leadership
Model
The situational leadership model developed by Hersey
and Blanchard suggests that the most important factor
affecting the selection of a leader's style is the develop-
ment (or maturity) level of subordinate.l? The leader should
match his or her style to this maturity level.
Maturity has two components:
1. job skills and knowledge, and
2. psychological maturity.
Blanchard and others elaborated on the leadership
styles appropriate for the various maturity level of subor-
diates. They are as follows'l8
Style 1: Directing is for people who lack compe-
tence but are
-
enthusiastic and committed. They need
direction and supervision to get them started.
Style 2: Coaching is for people who have some
-
competence but lack commitment. They need direction
and supervision because they're,still relatively inexper-
ienced. They also need support and praise to build their
self-esteem, and involvement in decision-making to res-
tore their commitment.
Sty1e 3: Supporting
- is for people who have compe-
tence but lack of confidence or motivation. They do not
need much direction because of their skills, but support
is necessary to bolster their confidence and motivation.
Style 4: Delegating is for people who have both
-
competence and commitment. They are able and willing
to work on a project by themselves with little supervision
or support.
lTNewstrom and Davis, p. 232.
l8Kenneth Blanchard and others,I*adership andthe One Minute Manager
(New York Blanchard Management Corporation. 1985) pp. 56-57.

167
Figure 8.3 Development Stage of Subordinates and Recom-
mended Leadership Style

DEVELOPMENT STAGE RECOMMENDED STYLE

1. Low ability + low Style 1 - DIRECTING - structure,

willingness control, and supervise

2. Low ability + high Style 2 -

COACHING - direct and
willingness support

3. High ability + low

willingness
-
Style 3 SUPPORTING - praise,
listen, and facilitate

4. High ability + high Style 4 - DELEGATING - turn over

willingness responsibility for day-to,day
decision-making

Path-Goal Model of Leadership

The path-goal model ofleadership espoused by Robert
J. House and Terence R. Mitchell, stipulates that leader-
ship can be made effective because leaders can influence
subordinate's perceptions of their work goals, personal
goals, and paths to goal attainment.
By using the path-goal model, it is assumed that ef-
fective leaders can enhance subordinate motivation by:1e
1. clarifying the subordinate's perception of work
goals,
2. linking meaningful rewards with goal attain-
ment, and
3. explaining how goals and desired rewards can
be achieved.
The path-goal process is shown in Figure 8.4.

teKreitner, p. 465

168
Figure 8.4 The Path-Goal Process

Leader identifies
employee needs

J
appropriate goals
are established

J
Leader connects
rewards with goals

J
Leader provides
assistance on
employee path
toward goals

J
employee becomes
satisfied and
motivated and
they accept the
leader

J
both employees
effective
performance'
occurs
+ and organization
better reach
their goals

169
 Leadership Styles. The leadership styles which may
be used by path-goal proponents are as follows:
1. Directive leadership
- where standards
on clear task assignments,
the leader focuses
of suc-
cessful performance, and work schedules.

2. Supportive leadership where subordinates

-
are treated as equals in a friendly manner while
striving to improve their well-being;

3. Participative leadership the leader

- towhere
consults with subordinates seek their sug-
gestions and then seriously considers those
suggestions when making decisions.

4. Achievement-oriented leadership where the

-
leader set challenging goals, emphasize excel-
lence, and seek continuous improvement while
maintaining a high degree of confidence that
subordinates will meet difficult challenges in a
responsible manner.

Vroom's Decision-Making Model

Vroom's model of leadership is one that prescribes
the proper leadership style for various situations, focu-
sing,on the appropriate degrees of delegation of decision-
making authority.
Five distinct decision-making styles are identified
under the Vroom model. Tlvo of them are autocratic, two
others are consultative, and one is group directed.
The Vroom model, shown in Figure 8.5, maybe useful
as a guide for the leader. It may also be helpful as a train-
ing guide.

170
Figure 8.5 Alternative Decision Making Styles in the Vroom
Model

DECISION.MAKING DEGREE OF
SYMBOL STYLE SUBORDINATE
PARTICIPATION

AUTOCRATIC LEADEB

A-1 Leader solves the problem or makes None

the decision himsell using available
information.

A-2 Leader obtains necessary information Low

from subordinates, then decides.

CONSULTATIVE LEADER

C-1 Leader approaches subordinates Moderate

individually getting their ideas then
makes decision.

C-2 Leader shares the problem with Moderate

subordinates as a group, obthining
their collective ideas and suggest-
ions, then decides.

GRO]JP DIBEqIED

G-2 Leader shares the problem with High

subordinates as a group. Lets the
group generate and evaluate alter-
native solutions, and then collectively
decides.

17t
 SUMMARY
Managers are expected to provide the required out-
puts by utilizing the various inputs including lpbor. Those
who provide labor, however, will perform when properly
led. As such, engineer managers are required to possess
leadership skiils.
The management function which involves influen-
cing others to engage in the work behaviors necessary to
reach organizational goals is referred to as leading.
Leaders influence others because of the power they
possess. Power may be classified as (1) legitimate, (2)
reward, (3) coercive, (4) referent, and (5) expert.
In developing effective leaders, certain leadership
traits have been identified by researchers.
Leaders need to have technical, human, and con-
ceptual skills to be effective.
Leadership style may be classified in terms of
behavior as follows: (1) according to the ways leaders
approaih peopie to motivate them, (2) according to the
way the leader uses power, and (B) according to the leader,s
orientation towards task and people.
Leadership style may also be classified in terms of
contingency as follows: Fiedler's contingency model,
Hersey and Blanchard's situational leadership model,
Path-Goal model of leadership, and Vroom,s decision-
making model.

172
Case 8. BUENAVISTA ELECTRTC COOPERATIVE, lNC.,: Mas-
querade
Right after Engineer Cscar Pascua frnished his elec-
trical engineering course at FEATI University in 1985,
he was hired as an employee of the National Electrifica-
tion Administration (NEA). He was assigned to handle
jobs in the various units of NEA until his promotion to
Chief Planning Officer in 1994. His main function was
to supervise the planning activities of his unit. Three
engineers and two other employees reported directly to
him. His performance was rated very satisfactory.
Engineer Pascua attended training sessions of var-
ious kinds including those for management. He finished
his M.B.A. course in 1995.
When the position of general manager of the Bue-
navista Electric Cooperative, Inc. (BECI) became vacant
in January 1996, he was nominated by NEA. He got the
post in March 1996. Aware of the many problems beset-
ting the cooperative, he immediately went to work.
When Engineer Pascua called the key offlrcers of the
cooperative to a meeting, he was appraised of the following:
1. that the price of electricity charged to BECI's
customers is the frfth highest in the country;
2. that2l percent of the electricity service provided
by BECI is lost every month and cannot be
accounted for;
3. requisitions for supplies and materials are served
after delays of as long as three months;
4. some employees of the cooperative do not report
regularly for work;
5. the increasing amount of uncollected accounts.
Three days after the meeting, he recommended to
the board of directors the following:

174
 1. the dismissal from the service of employees not
regularly reporting for work;
2. salary increases of up to 20 percent for every
employee on the payroll;
3. the hiring of eight additional employees; and
4. the formation of a team to investigate and recom-
mend measures to minimize "system loss".
All his recommendations were approved by the
board, after which Engineer Pascua signed all the neces-
sary memoranda to implement his programs. He made
regular inspections of the activities of the various units
of the cooperative.
During the first week of March L997, he convened
the key officers for, an evaluation of the'past year's act-
ivities. The following points were made clear to him:
1. No reduction in the price of electricity could be
extended to BECI's customers because no reduct-
ion in the overall cost of doing business was
achieved.
2. Instead of reducing tine 25 percent system loss,
it even went up to 26 percent.
3. There was no improvement in the requisition of
supplies and materials. Delays still reach three
months.
4. There is a new set of employees who do not report
regularly for work.
5. The amount of uncollected accounts increased
from P3.8 million to P4.2 million.
Engineer Pascua concluded that in spite of the
granting of salary increases requested by the rank and
file, no subsequent improvement in services was
registered. He is now considering more drastic measures

t76
but he is not sure if it is the right thing to do.iln addition,
he is also aware that there are some employees who are
qualified and dedicated to their jobs.

t76