Analysis of DCPT Result

TABLE OF CONTENTS
PAGE
Foreword 2
Organization Nature and Characteristics 3
Management Basic Concepts and Dimensions 5
Basic Concepts of Organization and

Management in the Public Service 8
Scientific Management Theory 10
Bureaucratic Management Theory 12
Administrative Management Theory 15
Neo-Classical Theory 19
Theory X & Theory Y 23
Immaturity/Maturity Theory 26
Operations Research Management Science 29
Contingency Approach 34
Theory Z 37
Organization Processes:
Goal and Goal Setting 41

Leadership and Communication 43
Power and Conflict 46
Authority and Responsibility 59
Decision Making 64
Management Functions:
Planning and Organizing 67
Implementation & Monitoring 69
Evaluation, Motivation & Budgeting 73
Management Techniques & Approaches

Management by Objectives 78
Management Information System 80
Network Analysis 83
Organization, Structure and System

for Human Resources Management 87
Personnel Procurement or Hiring

Recruitment, Selection, And Placement 92
Pay Administration: Laws, Rules And Regulation 100
The Organizational Aspect of the

Development Bank Of The Philippines (DBP) 109
Introduction to Organization & Management & Human Resource Management
FOREWORD
This is the compilation of reports in Introduction to
Organization and Management & Human Resource
Management (PA 203) under Dr. Pinto E. Dalaten reported by
the 1st Year MPA Student.
The contents of this publication were based on the

syllabus given during the first meeting. Each topic was
discussed by the reporter giving out their utmost best to
make their listeners understand it.
Each report presents concepts and facts supported by

reliable references from various acclaimed authors worldwide.
1st Year MPA Students

Mindanao State University-SK
2|P age
ORGANIZATION NATURE AND

CHARACTERISTICS
Reporter: Esmail T. Gani
Emergence of Organization
• The first were families and small nomadic tribes
• Villages and tribal communities
• From predominantly agrarian society and small communities to complex
industrial society there came the emergence of large, formal
organization.
What is Organization?
• Organization – is a collection people who work together and coordinates
their actions to achieve a wide variety of goal.
• Organization – is a system made up of parts that are dependent on
each other or a way in which the different parts of a system are
arranged and work together.
• Organization – It is the grouping of activities necessary to attain
enterprise objectives and assignment of each grouping to a manger with
authority necessary to supervise it”. Koontz and O’ Donnell
• Organization - is a system wherein the resources or the inputs are
processed so as to be converted into the end results or the out puts.
• An organization is a system of consciously coordinated activities or
forces of two or more persons.
Organization Nature
 Formal Organization is characterized by intentional structure of
roles and responsibilities coordinated towards achievement of
common goals.
 Informal Organization is the everyday relationship of the men and
women in the organization having common values, interest, and
desires.
Important Characteristics of Organization
 Division of Work/Labor – it is the basis of an organization, In other

words, there can be no organization without division of work. Under
division of , the entire work of business is divided into many
departments. The work of every department is further subdivided into
sub works.
 Coordination – Under organization different persons are assigned in
different works but the aim of all these persons happens to be the same
the attainment of the objectives of the enterprise. Organization ensures
3|P age
that the work of all the persons depends on each other’s work even
though it happens to be different, Hence, it helps in establishing
coordination.
 Plurality of Persons – organization is a group of persons who assemble
to fulfil a common purpose. An individual cannot create an organization.
 Common Objectives - There are various parts of an organization with
different functions to perform but all move in the direction of
achieving a general objective.
Organization is a machine of Management – Organization is considered to

be a machine of management. It is that machine in which no part can afford
to be ill-fitting or non-functional. In other words, if the division of work is not
done properly or posts are not created correctly the whole system of
management collapses.
Formal organization is the basis of effective management of any enterprise. It

can help is achieving the following benefits:
1. Formal organization helps in determining the objectives

of various departments and units.
2. It facilitates the attainment of organizational goals

through the fulfillment of objectives of various departments.
3. It facilitates optimum use of resources and new

technological developments.
4. It clarifies authority and responsibility relationships,

which lead to better communication.
5. Formal organization creates a proper balance of activities

of different departments.
6. Formal organization brings about stability in the

enterprise through procedures, policies, rules and regulations.
The working of different departments continues despite the
leaving of old employees and joining of new hands.
4|P age
MANAGEMENT BASIC CONCEPTS AND

DIMENSIONS
Reporter: Chaand C. Ebos
DEFINITION OF MANAGEMENT:
Management – is the process involving planning organizing
, staffing, directing and controlling human efforts to achieve
stated objectives in an organization.
The Definition by some of the leading Management thinkers are given

below:
 Management is the art of knowing what you want to do and then

seeing that it is being done in the best and the cheapest way- By:
Frederick Taylor.
 To manage is to forecast , to plan , to organize , to command , to
coordinate and to control- By: Henry Fayol
 Management – is an art of getting things through and with the people
in formally organized group.- Koontz and O’Donell
 Management is awork and as such it has its own skills , its own tools
and its own techniques.-Peter Drucker.
CHARACTERISTICS OF MANAGEMENT:
As blood , soul and mind are important for the life , same as
management is for business. Someone has written , “ Management is the of
industrial development. The progress and prosperity of business organization
is based on Management. It is the brain of an organization, without
management nothing can be done in the business. So, it has some
characteristics which as follows;
1. Management is goal oriented:

Management has no justification to exist without goals.
Management goals are called group goals or organizational goals.
The basic goal of management is to ensure efficiency and
economy in utilization of human, physical and financial resources.
The success of Management is measured by the extent to which
the established goals are achieved.
2. Management is Universal
Management is an essential element of every organized activity

irrespective of the size or type of activity. Wherever two or more
persons are engaged in working for a common goal, management
is necessary. All types of organization –family, club, university,
5|P age
government, army, cricket team or business require

management. Thus , management is measured by the extent to
which the established goals are achieved.
3. Management is an Integrative Force

The essence of Management lies in coordination of individuals
efforts in a team. Management reconciles the individual goals
with organizational goals.
4. Management is Social Process
Management is a social process because it is concerned with

interpersonal relations. Human factor is the most important
element in Management. According to Appley, “Management is
the development of people not the direction of things. A good
manager is a leader not a boss. It is the pervasiveness of human
element which gives management ist special character as a social
process.
5. Management is Multidisciplinary
Management has to deal with human behavior under the dynamic

conditions. Therefore, it depends upon wide knowledge derived
from several disciplines like engineering, sociology, psychology,
economics, anthropology , etc. The vast body of knowledge is
management draws heavily upon other fields of study.
6. Management is a continuous Process;
Management is dynamic and an on-going process. The cycle of

Management continues to operate as long as there is organized
action for the achievement of group goals.
7. Management is intangible ;
Management is unseen or invisible force. It cannot be seen but

its presence can be felt e3verywhere in the form of results.
8. Management is Both an Art and Science;
Management is both science and art. It is based on some skills ,

knowledge is also required to achieve goals effectively. So, it is
concerned with art though it is not exactly like Music or Dance.
6|P age
LEVEL OF MANAGEMENT:
The organization may have various level of management. The simple

meaning of the term ”level” is the arrangement of managerial position . So
the level of Management means dividing the authority and responsibility
among the managerial person. The level of management will depend upon the
size, technology process, quantity of production, nature of organization, etc.
Generally, levels of management are categorized as follows;
 Top Level Management
It is the highest level in managerial process. It is generally occupied by

ownership group.- Share holders, board of directors, chief executive and
managing director. It is responsible for the success or failure of an
organization . It establishes over all organizational GOALS and
strategies for their achievements. These persons are also responsible
for deciding objectives, policies and take final decisions.
 Middle Level Management
It consist the middle level rank of management such as branch

manager , production manager, finance manager, department head,
superintendent or other persons with some rank. It is also known as
functional management. The personnel of middle level management
are answerable to top level management and control and order lower
level management. They assist the planning, coordinating motivating,
and controlling the activities of various department.
 Lower Level Management
It is also known as the first line management , first level management

and supervisory management. It includes personnel like foreman,
supervisor, sales officer, finance4 officer, etc. Their main job is to make
work done from other workers and employee who are working directly
under them. They receive instructions from middle level management
and act accordance with policies and program laid down by top level
management.
7|P age
BASIC CONCEPTS OF ORGANIZATION AND

MANAGEMENT IN THE PUBLIC SERVICE
Reporter: Elliel Dominic F. Cerna
In this era of hyperactive efforts to a more

meaningful and better nation-building as the foremost
objective of almost all countries, the basic concepts of
organization and management have been very vital in
reminding the public on how to plan and carry out activities in
order to develop better public administration that would help realize the fuller
importance of public service within the context of real national target.
An ORGANIZATION is a planned, coordination of the activities of

number of people for the achievement of common purpose or goal, through
division of labor and function and through a hierarchy of authority and
responsibility.
An organization can be classified into three; (1) Private for Profit,

includes business and corporation organized with the primary goal of making
an economic profit, (2) Governmental, includes local, state, national, and
international government organizations and (3) Private not for profit, provides
civic and human services which are funded by private citizens through
fundraising organizations or privately funded foundations.
The shared experience that organizational members hold in common is

called organizational culture. These shared experiences merge into a whole
pattern of beliefs, values, and rituals that become the “essence” of
organization’s culture. The concept of organizational culture can help us
understand the difficulty faces by woman, people of color, or persons with
disabilities when they enter organizations that have historically been made up
only of privileged abled bodied white males with traditional paradigms
perspectives.
MANAGEMENT is the process of planning, organizing, leading and

controlling the efforts of organization members and of using all other
organizational resources to achieve stated organizational goals. A process is a
systematic way of doing things. We refer to management as a process to
emphasize that all managers, regardless of their particular aptitudes or skills,
engage in certain interrelated activities in order to achieve their desired goals.
Within the over-all concept of management, the function of

administration can be identified. The practical execution of the plans and
8|P age
decisions on a day-to-day basis requires specific administrative activities that

managers may assign to executive administrators.
Manager is someone who coordinates and oversees the work of other

people so that organizational goals can be accomplished. They can be
classified by their level in the organization, particularly in structured
organizations.
The changing nature of organizations and work often requires

employees in formerly non-managerial jobs to perform managerial activities.
Non managerial jobs are those where one works directly on a job and had no
one reporting to him. Therefore, organizations really need managers.
An organization is a deliberate arrangement of people to accomplish

some specific purpose. Organizations share three common characteristics: (1)
Each has a distinct purpose, (2) Each is composed of people and (3) Each
develops some deliberate structure so members can do their work. Although
these three characteristics are important in defining what an organization is,
the concept of an organization is changing.
The importance of studying management in today’s dynamic global

environment can be explained by looking at the universality of management,
the reality of work, and the rewards and challenges of being a manager.
Public service is the service which is provided by the government to

people living within its jurisdiction, either directly through the public sector or
by financing provision services. The term is associated with a social consensus
that certain services should be available to all, regardless of income.
Public Administration is "the study of government decision making, the

analysis of the policies themselves, the various inputs that have produced
them, and the inputs necessary to produce alternative policies”
Therefore, organization & management is concerned with the

organization of government policies and programs as well as the behavior of
officials (usually non-elected) formally responsible for their conduct; Also,
Public administrators are public servants working in public departments and
agencies, at all levels of government.
9|P age
SCIENTIFIC MANAGEMENT THEORY

Reporter: Angie Lloyd S. Saligan
INTRODUCTION
Scientific management, also called Taylorism, is

a theory of management that analyzes and synthesizes
workflows. Its main objective is improving economic efficiency,
especially labor productivity. It was one of the earliest attempts to
apply science to the engineering of processes and to management.
While the terms "scientific management" and "Taylorism" are commonly

treated as synonymous, the work of Frederick Taylor marks only the first
form of scientific management, followed by other approaches; thus in today's
management theory, Taylorism is sometimes called, or considered a subset of,
the classical perspective on scientific management. Taylor's own names for his
approach initially included "shop management" and "process management".
Taylor's four principles are as follows:
1. Replace working by "rule of thumb", or simple habit and common

sense, and instead use the scientific method to study work and determine the
most efficient way to perform specific tasks.
2. Rather than simply assign workers to just any job, match workers to
their jobs based on capability and motivation, and train them to work at
maximum efficiency.
3. Monitor worker performance, and provide instructions and

supervision to ensure that they're using the most efficient ways of working.
4. Allocate the work between managers and workers so that the

managers spend their time planning and training, allowing the workers to
perform their tasks efficiently.
It is no single element, but rather this whole combination, that

constitutes scientific management, which may be summarized as:
1.Science, not rule of thumb. Harmony, not discord.

2.Cooperation, not individualism.
3.Maximum output, in place of restricted output.
4.The development of each man to his greatest efficiency and
prosperity.
10 | P a g e
Frank and Lillian Gilberth refined Taylor’s work and made many
improvement to the methodologies of time and motion studies.
Time and motion studies.

• Breaking up each job action into its components.
• Finding better ways to perform the action.
• Reorganizing each job action to be more efficient.
CRITIQUES OF TAYLORISM
Taylorism is, according to Stephen P. Waring, considered very controversial,

despite its popularity. Taylor's Scientific Management Theory promotes the
idea that there is "one right way" to do something. These promote individual
responsibility, and seek to push decision making through all levels of the
organization.
Cristicism of Scientific Management Theory
1. Turning the worker into an "automaton" or "machine."[25] Due to techniques
employed with scientific management, employees claim to have become
overworked and were hostile to the process. Workers who were subjected to
an accelerated work pace, lower standards of workmanship, lower product
quality, and lagging wages formed unions, demanded higher pay, and went on
strike to be free.
2. Teamwork is another area where pure Taylorism is in opposition to current

practice. Essentially, Taylorism breaks tasks down into tiny steps, and focuses
on how each person can do his or her specific series of steps best.
3. Scientific management in its pure form focuses too much on the mechanics,
and fails to value the people side of work, whereby motivation and workplace
satisfaction are key elements in an efficient and productive organization. It
separates manual from mental work, whereas modern productivity
enhancement practices seek to incorporate worker's ideas, experience and
knowledge into best practice.
4. Workers complained of having to compete with one another, feeling

strained and resentful, and feeling excessively tired after work.
11 | P a g e
BUREAUCRATIC MANAGEMENT THEORY”

Reporter: Dessa Marie FALE, CE
What is a Bureaucracy?
• Bureaucracy is a system for administering large
organizations involving a specific structure of authority and
a clearly defined set of rules and regulations.
• It may be found in all large, formal organizations, such as
government, corporations, churches, schools, prisons, and political
parties.
• Generally it refers to organizing principles that are intended to achieve
coordination of work In large organization.
• It is criticized for generating red tape, indecisiveness, and excessive
paperwork. Its defenders maintain that bureaucracy is necessary for the
efficient completion of large scale task.
• The bureaucratic institution has their origin in ancient time and it’s
developed to become most large organization both public and private.
How bureaucracy has different connotation:

 It refers to all government offices
o It may refer to totality of government office or bureau that
constitutes the permanent government of the state. It is those
public functions that continue irrespective of changes of political
leaders.
 It refers to all PUBLIC OFFICIALS
o The bureaucracy refers to the entire public officials of a
government. They may constitute both high, low elected and
appointed bureaucrats.
 General invective (negative sense)
o It may refer to inefficient organization full by red tape and
cumbersome procedures in government operation. However this
does not mean that government operation is always inefficient.
Many government agencies have long standing reputation of
being efficient.
The structural features of Bureaucracy
Bureaucracy has been central to public administration. It is because the

characteristic of bureaucracy make it behave in predictable way.
1. Specialized jurisdiction, office, task and division of labor and authority
regarding the achievement of organization goal.
2. Hierarchy of authority to coordinate the activities of specialized office
and to integrate their jurisdictional authority. In the most rational
bureaucratic design, the organization is handled by single individual.
Theories about Bureaucracy:
“Bureaucratic Management Theory”
Max Weber (1864-1920)

• German Sociologist
• Principles and Elements of Management - describe an ideal or
pure form of organizational structure (general policy and specific
commands
12 | P a g e
He saw bureaucracy as a characteristics of movement toward

•
rational social organization in modern industrial societies.
• PRIMARY FOCUS: Organizational Structure
• Worker should respect the “right” of managers to direct activities
dictated by organizational rules and procedures
• More DESCRIPTIVE
Weber’s Theory of Bureaucracy
The Max Weber theory of management, sometimes called bureaucratic

management theory, is built on principles outlined by Frederick Taylor in his
scientific management theory. Like Taylor, Weber advocated a system based
on standardized procedures and a clear chain of command. Weber stressed
efficiency, as did Taylor, but also warned of the danger of emphasizing
technology at the expense of emotion.
• Bureaucracy allows for the optimal form of authority - “rational
authority”
• Concerned with describing the ideal structure of an organization
• Cornerstone: existence of written rules & following certain legal
procedures
• The rational application of written rules ensures the promotion of
legitimate authority and the effective and efficient functioning of the
organization.
Key elements of the Max Weber management theory include:
 Division of labor/Clearly defined job roles

(Departmentalization)
 A hierarchy of authority
 Implementing Rules and Follow Standardized procedures
 Hiring employees only if they meet the specific qualifications for a job
2 essential elements:
1. It entails structuring an organization into hierarchy

Organizational Hierarchy is the arrangement of the
organization by level of authority in reference to levels above and below
it.
What are the needs of an organizational hierarchy?
 Division of labor
 Consistency
 Quality of work/Qualification
 Good decision making
 Create standards
 Control /policy making
2. Governed by clearly defined rational-legal decision-making rules

Rational-legal decision-making rules refers to a set of explicit and
objective policies and procedures that governs how an organization
functions.
Summary:
 Weber’s theory of bureaucracy attempt to enhance management’s

ability to predict and control the behavior of their workers
 It is designed to predict and control behavior in organizations
13 | P a g e
 Such a bureaucratic organization specifies the duties and responsibilities

of bureaucrats.
 Every bureaucratic organization functions with a specific procedure, laid
down by the organization. This procedure is laid down for performing
their functions.
 One of the unique features, suggested by Weber, is the impersonal
approach of an employee, in the organization. Every employee should
function with impersonal approach, while performing duties.
14 | P a g e
ADMINISTRATIVE MANAGEMENT THEORY

(HENRI FAYOL)
Reporter: Joseph Alvin C. Constantinopla
Henri Fayol was a French management theorist who lived

from 1841-1925. Although he was an engineer by trade, he
spent the vast majority of his working years as a manager at a
French mining organization. The last 30 years with the company
were spent as the managing director. It was through this practical experience
that Fayol first realized the lack of education when it came to the concept of
management. Upon his retirement, Fayol felt compelled to open a facility that
would serve as a place for educators to gather and discuss the management
concept. This facility, known as the Centre for Administrative Studies (CSA),
opened in Paris in 1917.
It was during one of his discussions at the CSA that Fayol proposed
what he felt were the 14 needed principles of management. Fayol wanted
educators to understand that management was not just any ordinary job.
Managers, Fayol felt, must be people of exceptional integrity that were able to
be trained to be good managers. These 14 principles were to be the guiding
principles that would allow a person to become a good manager, and benefit
both the individual and the organization.
The rise of large organizations such as factories has given greater
challenge to which is the most effective and efficient management strategy.
Hence, few management principles, tools, models and methods were
introduced having focused on the management in practice. The 14 Principles
of Henri Fayol laid the foundation of the modern management. This article
explores the synthesis of the concepts and underlying factors for successful
management which was made and publish by Henri Fayol in his book “General
and Industrial Management” (1916). The researcher enumerated the 14
Principles of Management introduced by Henri Fayol as follows:
1. Division of Work
In practice, employees are specialized in different areas and they have
different skills. Different levels of expertise can be distinguished within the
knowledge areas (from generalist to specialist). Personal and professional
developments support this. According to Henri Fayol specialization promotes
efficiency of the workforce and increases productivity. In addition, the
specialization of the workforce increases their accuracy and speed. This
management principle of the 14 principles of management is applicable to
both technical and managerial activities.
15 | P a g e
2. Authority and Responsibility

In order to get things done in an organization, management has the
authority to give orders to the employees. Of course with this authority comes
responsibility. According to Henri Fayol, the accompanying power or authority
gives the management the right to give orders to the subordinates. The
responsibility can be traced back from performance and it is therefore
necessary to make agreements about this. In other words, authority and
responsibility go together and they are two sides of the same coin.
3. Discipline
This third principle of the 14 principles of management is about
obedience. It is often a part of the core values of a mission and vision in the
form of good conduct and respectful interactions. This management principle
is essential and is seen as the oil to make the engine of an organization run
smoothly.
4. Unity of Command
The management principle ‘Unity of command’ means that an individual
employee should receive orders from one manager and that the employee is
answerable to that manager. If tasks and related responsibilities are given to
the employee by more than one manager, this may lead to confusion which
may lead to possible conflicts for employees. By using this principle, the
responsibility for mistakes can be established more easily.
5. Unity of Direction
This management principle of the 14 principles of management is all
about focus and unity. All employees deliver the same activities that can be
linked to the same objectives. All activities must be carried out by one group
that forms a team. These activities must be described in a plan of action. The
manager is ultimately responsible for this plan and he monitors the progress
of the defined and planned activities. Focus areas are the efforts made by the
employees and coordination.
6. Subordination of Individual Interest

There are always all kinds of interests in an organization. In order to
have an organization function well, Fayol indicated that personal interests are
subordinate to the interests of the organization (ethics). The primary focus is
on the organizational objectives and not on those of the individual. This
applies to all levels of the entire organization, including the managers.
16 | P a g e
7. Remuneration
Motivation and productivity are close to one another as far as the
smooth running of an organization is concerned. This management principle of
the 14 principles of management argues that the remuneration should be
sufficient to keep employees motivated and productive. There are two types of
remuneration namely non-monetary (a compliment, more responsibilities,
credits) and monetary (compensation, bonus or other financial compensation).
Ultimately, it is about rewarding the efforts that have been made.
8. The Degree of Centralization

Management and authority for decision-making process must be
properly balanced in an organization. This depends on the volume and size of
an organization including its hierarchy. Centralization implies the concentration
of decision making authority at the top management (executive board).
Sharing of authorities for the decision-making process with lower levels
(middle and lower management), is referred to as decentralization by
Fayol. Henri Fayol indicated that an organization should strive for a good
balance in this.
9. Scalar Chain
Hierarchy presents itself in any given organization. This varies from
senior management (executive board) to the lowest levels in the
organization. Henri Fayol ’s “hierarchy” management principle states that
there should be a clear line in the area of authority (from top to bottom and all
managers at all levels). This can be seen as a type of management structure.
Each employee can contact a manager or a superior in an emergency situation
without challenging the hierarchy. Especially, when it concerns reports about
calamities to the immediate managers/superiors.
10. Order
According to this principle of the 14 principles of management,
employees in an organization must have the right resources at their disposal
so that they can function properly in an organization. In addition to social
order (responsibility of the managers) the work environment must be safe,
clean and tidy.
11. Equity
The management principle of equity often occurs in the core values of an
organization. According to Henri Fayol, employees must be treated kindly and
17 | P a g e
equally. Employees must be in the right place in the organization to do things

right. Managers should supervise and monitor this process and they should
treat employees fairly and impartially.
12. Stability of Tenure of Personnel

This management principle of the 14 principles of management
represents deployment and managing of personnel and this should be in
balance with the service that is provided from the organization. Management
strives to minimize employee turnover and to have the right staff in the right
place. Focus areas such as frequent change of position and sufficient
development must be managed well.
13. Initiative
Henri Fayol argued that with this management principle employees
should be allowed to express new ideas. This encourages interest and
involvement and creates added value for the company. Employee initiatives
are a source of strength for the organization according to Henri Fayol. This
encourages the employees to be involved and interested.
14. Esprit de Corps

The management principle ‘esprit de corps’ of the 14 principles of
management stands for striving for the involvement and unity of the
employees. Managers are responsible for the development of morale in the
workplace; individually and in the area of communication. Esprit de corps
contributes to the development of the culture and creates an atmosphere of
mutual trust and understanding.
CONCLUSION
The 14 principles of management can be used to manage
organizations and are useful tools for forecasting, planning, process
management, organization management, decision-making, coordination and
control. Although they are obvious, many of these matters are still used based
on common sense in current management practices in organizations. It
remains a practical list with focus areas that are based on Henri Fayol ’s
research which still applies today due to a number of logical principles.
18 | P a g e
NEO-CLASSICAL THEORY
Reporter: Jenny U. Umag
The Neo-Classical Theory is the extended version of the

classical theory wherein the behavioral sciences gets included
into the management. According to this theory, the organization
is the social system, and its performance does get affected by the human
actions.
The classical theory laid emphasis on the physiological and mechanical

variables and considered these as the prime factors in determining the
efficiency of the organization. But, when the efficiency was actually checked, it
was found out that, despite the positive aspect of these variables the positive
response in work behavior was not evoked.
Thus, the researchers tried to identify the reasons for human behavior
at work. This led to the formation of Neo-Classical which primarily focused on
the human beings in the organization. This approach is often referred to as
“behavioral theory of organization” or “human relations” approach in the
organizations.
The Neo-Classical theory posits that that an organization is the

combination of both formal and informal forms of organization, which is
ignored by the classical organizational theory. The informal structure of the
organization formed due to the social interactions between the workers affects
and gets affected by the formal structure of the organization. Usually, the
conflicts between the organizational and individual interest exist, thus the
need to integrate, these arises.
The Neo-Classical theory asserts that an individual is diversely

motivated and wants to fulfill certain needs. The communication is an
important yardstick to measure the efficiency of the information being
transmitted from and to different levels of the organization. The teamwork is
the pre-requisite for the sound functioning of the organization, and this can be
achieved only through a behavioral approach, i.e. how individual interact and
respond to each other.
19 | P a g e
THEORISTS OF NEO-CLASSICAL THEORY:

1. Elton Mayo pioneered the human relations to improve levels of
productivity and satisfaction. This approach was first highlighted by the
improvements known as ‘Hawthrone Experiments’ conducted at Illionois plant
of Western Electric Company between 1927 and 1932. Elton Mayo and Mary
Parker Follett are the main contributors of human relations approach. Neo-
classical approach also causes ‘Behavioural Science Management’ which is a
further refinement of human relations approach.
Human relations movement deals with the factors which encourage
higher performance on the part of workers. The improvement of working
conditions, lowering of hours of work, improvement of social relations of
workers, besides monetary gains help in increasing productivity.
2. Chester Bernard – presented a more comprehensive theory of
organizational behavior when he wrote the functions of the executive. He
argued that for the executive to become more effective, he should maintain
equilibrium between the needs of the employees and the organization.
Functions of the executive:
 Establishing and maintaining a system of communication;
 Securing essential services for workers;
 Formulating organizational purposes and objectives.
 To manage people and make sure they do their jobs
3. Abraham Maslow – Maslow's (1943, 1954) hierarchy of needs is a
motivational theory in psychology comprising a five tier model of human
needs, often depicted as hierarchical levels within a pyramid. Maslow wanted
to understand what motivates people. He believed that people possess a set of
motivation systems unrelated to rewards or unconscious desires.
Maslow (1943) stated that people are motivated to achieve certain
needs, and that some needs take precedence over others. Our most basic
need is for physical survival, and this will be the first thing that motivates our
behaviour. Once that level is fulfilled the next level up is what motivates us,
and so on.
This five stage model can be divided into deficiency needs and growth
needs. The first four levels are often referred to as deficiency needs and the
top level is known as growth or being needs.
The deficiency needs are said to motivate people when they are unmet.
Also, the need to fulfill such needs will become stronger the longer the
duration they are denied. For example, the longer a person goes without food
the more hungry they will become.
20 | P a g e
One must satisfy lower level deficit needs before progressing on to meet
higher level growth needs. When a deficit need has been satisfied it will go
away. Our activities become habitually directed towards meeting the next set
of needs that we have yet to satisfy. These then become our salient needs.
However, growth needs continue to be felt and may even become stronger
once they have been engaged. Once this growth needs have been reasonably
satisfied, one may be able to reach the highest level called self-actualization.
Every person is capable and has the desire to move up the hierarchy
toward a level of self-actualization. Unfortunately, progress is often disrupted
by failure to meet lower level needs. Life experiences, including divorce and
loss of job may cause an individual to fluctuate between levels of the
hierarchy. Therefore, not everyone will move through the hierarchy in a uni-
directional manner but may move back and forth between the different types
of needs.
Maslow noted only one in a hundred people become fully self-actualized
because our society rewards motivation primarily based on esteem, love and
other social needs.
21 | P a g e
Major Contributions of Neo-Classical Theories
 Organizations exist to serve human needs (Hierarchy of Needs -

Abraham Maslow)
 People and organizations need each other
 When fit between individual & system is poor, both suffer
 A good fit profits both individual and organization
 Organizations cannot exist independently & isolated from their
environments
 Organizations are not simply rational, also a non-rational
 Opened up the door to an explosion of studies organization
22 | P a g e
THEORY X AND THEORY Y

Reporter: Leah Mae C. Sudio
Theory
 Is a contemplative and rational type of abstract or

generalizing thinking, or the results of such thinking.
Douglas Mc Gregor
• He was the lecturer at Harvard University and became the first
fellow professor at MIT.
• He is the founder of Theory X and Y.
Nature of Theory x and y
 'Theory X' and 'Theory Y' are theories of human motivation and
management. They were created and developed by Douglas
McGregor at the MIT Sloan School of Management in the 1960s.
These theories describe two contrasting models of workforce
motivation applied by managers in human resource
management, organizational behavior, organizational
communication and organizational development.
 According to the models, the two opposing sets of general
assumptions of how workers are motivated form the basis for two
different managerial styles. Theory X stresses the importance of
strict supervision, external rewards, and penalties: in contrast,
Theory Y highlights the motivating role of job satisfaction and
encourages workers to approach tasks without direct supervision.
THEORY X (AUTHORITARIAN MANAGEMENT STYLE)
 Theory X assumes that employees are naturally
unmotivated and dislike working, and this encouraged an
authoritarian style of management.
THEORY Y (PARTICIPATIVE MANAGEMENT STYLE)
 Theory Y shows a participation style of management that is de-
centralized. It assumes that employees are happy to work ,
self motivated ,creative and enjoy working with greater
responsibility
23 | P a g e
24 | P a g e
25 | P a g e
IMMATURITY/MATURITY THEORY
Reporter: Nor-Zhainab S. Alawi
Chris Argyris
1980's, he developed his theory of Pattern A and Pattern B.

Similar to McGregor's Theories X and Y.
Pattern A people and groups tend toward Theory X and are more rigid in
their supervision and management styles.
Pattern B people and groups resemble Theory Y traits and are more flexible
and open to new ideas.
He believed people could move between X/Y and A/B, thus a Theory
X manager who believed most workers were lazy might also be open
[3]
and supportive.
THEORY OF IMMATURITY-MATURITY.
Individuals progress at different rates from the total immaturity of

early childhood (being passive, dependent, shallow, limited activity) to
maturity (active, independent, deeper thoughts, more varied interests). Most
organizations have bureaucratic or pyramidal values that foster immaturity in
workers and "in many cases, when people join the workforce, they are kept
from maturing by the management practices utilized in their organizations"
[3]
(Hersey 65).
The most intriguing of these motivational theories. Unfortunately, most

organizations still adopt the bureaucratic or pyramidal style of leadership. This
authoritarian style often resembles a family with a dominating parent
(management) exercising almost total control over the children (employees).
It is no wonder in these environments that trust and creativity are rare. There
are exceptions however. The leadership of the author's employer, the YWCA of
Nashville, values employees and treats them with respect. As a result, YWCA
staff members are more independent and have room to grow. [3]
It is easy to apply this theory to many circumstances outside the

workplace. Families in which parents are either over-protective or, on the
other extreme, do not protect their children at all may have offspring who are
immature and have trouble forming long-term relationships. Governments
26 | P a g e
with strong central authority where people have little personal freedom usually
have citizens who are dependent financially and psychologically. Schools
where rigid rules are more important than the free flow of ideas will probably
graduate students with narrow views and a lack of creativity. It is obvious that
human beings flourish only when they are in an environment with trust,
support and independence.
One of the many theories that seek to explain the human nature and
behavior. Many times, the self organizations functioning (in terms of work
specialization, command chain, delegation level, control level, etc.), form in
themselves a deterrent for the employees to achieve in a natural way a high
maturity level. Many times organizations expect that their cooperators be
passive, dependant, that have a short term perspective and that produce
without requesting a high control level. According to Argyris, whenever an
employee with high maturity level is before a situation like this tends to take
one of three attitudes:
Escape: reflects into resignation, absenteeism, etc.;
Fight: through structures like unions or even through an informal
organization;
Adaptation: is the most common reaction and consists in developing an
apathy and indifference attitude, in which the monthly salary represents
[2]
compensation for the “punishment” that the work represents.
Personality changes
According to Argyris, seven changes should take place in the personality of
[1]
individuals if they are to develop into mature people over the years.
First, individuals move from a passive state as infants to a state of

increasing activity as adults.
Second, individuals develop from a state of dependency upon others as
infants to a state of relative independence as adults.
Third, individuals behave in only a few ways as infants, but as adults
they are capable of behaving in many ways.
Fourth, individuals have erratic, casual, and shallow interests as infants
but develop deeper and stronger interests as adults.
Fifth, the time perspective of children is very short, involving only the
present, but as they mature, their time perspective increases to include the
past and the future.
27 | P a g e
Sixth, individuals as infants are subordinate to everyone, but they move

to equal or superior positions with others as adults.
Seventh, as children, individuals lack an awareness of a "self," but as
adults they are not only aware of, but they are able to control "self."
Argyris postulates that these changes reside on a continuum and that

the "healthy" personality develops along the continuum from "immaturity" to
"maturity.
These changes are only general tendencies, but they give some light on
the matter of maturity. Norms of the individual's culture and personality inhibit
and limit maximum expression and growth of the adult, yet the tendency is to
move toward the "maturity" end of the continuum with age.
Argyris would be the first to admit that few, if any, develop to full maturity.
28 | P a g e
OPERATIONS RESEARCH MANAGEMENT SCIENCE

(Quantitative Scientific Theory)
Reporter: Adela C. Dorego
Operations Research
 It is the used of advanced analytical Techniques to improve decision
making. It is sometimes known as operational research, management
science or Industrial Engineering.
History of Operation Research…

It originated in the efforts of Military Planners during world war 11. In
the decades after the war, the techniques began to be applied , more
widely to the problem in business industry.
Presently…
Operations Research is used virtually in every business and government
throughout the world and remains an active area of academic research.
People with Skills in Operations Research … holds jobs in decision support,

business analytics, marketing analysis and logistics planning as well as jobs
with Operations Researcher in the Title.
Why is Operation Research Needed..?

 It is needed because it made sense to make the best use of the
available resources.
 Organization whether public or private needs to provide their products
and services as effectively and efficiently as possible. Therefore these
require careful planning and analysis the hallmark of good operation
research. These usually based on process , modelling analysis of
aptions or business analytics.
Operation Research in United Kingdom
It is discipline that deals with the application of advanced analytical
methods to help make better decisions.
Management Science and Analytics – sometimes used as synonyms for

operation research.
OPERATION RESEARCH OVERLAPS WITH OTHER DISCIPLINE –

INDUSTRIAL ENGINEERING AND INDUSTRIAL MANAGEMENT.
29 | P a g e
 It is concerned determining a maximum such as;

 @ Profit
 @ Performance
 @ Yield
 It is also concerned with the Minimum such as;

 @ Risk
 @ Loss
 @ Cost
 Operation Research –encompasses a wide range of problem solving
techniques and methods applied in pursuit of improved decision making
and efficiency. Such as;
 Simulation
 Mathematical Optimization
 Queuing Theory
 Macoy’s decision processes
 Economic Methods
 Data Analysis
 statistics
 Neural Networks
 Expert Systems
 Decision Analysis
 Operation Research- Has a strong relation to Computer science

because of the computational and statistical nature of this field.
The Major Sub Discipline in Modern Operations Research are:
1. Computing and Information Technologies

Has a strong relation to Computer Science- because of the
computational and statistical nature of this field.
2. Environment and Natural Resources
Is organized to promote the Development and Applications of
operations research/management science methods and tools to the
solution of problem relating to energy, natural resources and or
environment.
30 | P a g e
Encourage the exchange of Information among the practitioners and

users in energy ; natural resources and environmental applications in the
area
Promote the maintenance of high professional standards in the

applications of operations research /management science to problem areas
in energy , natural resources and or environment.
3. Financial Engineering
The Objective …is to provide continuing specialized focus w/ in
Informs on the topic of financial services with the aim of identifying
current and potential problems and contributions to their solutions , to lead
in the development dissemination and implementation of knowledge , basic
and applied research and technologies in the area of finance and financial
services and to promote high professional standards and integrity.
4. Marketing Science
Is a field thaT approaches Marketing-the understanding of customer
needs and the development of approaches by which they might be
fulfilled,- predominantly through scientific methods.
5. Optimization
A process or methodology of making something as fully perfect
functional or effective as possible specifically the mathematical
procedures ( as finding the maximum functions)
6. Policy Modeling and Public Sector Work
 Uses of Operations Research and Management Science in the

Public Sector
6.1 .Public Policy- Improving governmental decision making in the
legislative and strategic level
6.2 .Public Programs - Improving the Management of government
Programs, services And operations.
6.3 Public Safety -Improving decision - making in support of
homeland security , law enforcement , emergency preparedness
and disaster response.
6.4 Public Service – Supporting community development and
public Service organizations , and encouraging members of the ORMS (
31 | P a g e
Operation Research Management System) professions to volunteer in

public services causes.
6.5 Public Needs-Improving logistics and other national and
international programs to address humanitarian needs.
6.6 . Revenue Management – Selling the right room to the right client
at the right moment at the right price. ( By. Patrick Landman)
Helps to predict consumer demand to optimize inventory and price
availability in order to maximize revenue growth.
6.7 Simulation- The imitative representation of functioning of one
system or process by means of the functioning of another.
WHAT IS MANAGEMENT SCIENCE?

 It is an interdisciplinary branch of applied mathematics engineering and
sciences that uses various scientific research –based principles ,
strategies , and analytical methods including mathematical modeling ,
statistics and algorithms to improve the organization’s ability to enact
rational and meaningful management decisions.
 The discipline is typically concerned with maximizing profit, assembly
line performance ,crop yield, bandwidths, etc or maximizing expenses,
loss, risk .
MANAGEMENT SCIENCE - OVERVIEW

It is concerned w/ a number of different areas of study including
developing and applying models and concepts that may prove useful in
helping illuminate management issues and solve problems.
Management Science Research can be done in Three Levels:

 A fundamental level that lies in three mathematical disciplines;
probability, optimization and dynamic system theory
 A Modeling level that builds models, gather data , and analyzes then
solve mathematically
 An Application Level – just as any other engineering discipline that has
strong aspirations to make a practical impact in the real world.

Applications of Management Science
 Applications of Management Science are usually applied in an Industry
such as airlines, manufacturing companies, service organizations,
military branches, and in the Government.

32 | P a g e
The Range of Problems and issues to which management science has

contributed an insights and solutions is wide; It includes;
 Scheduling of airline, both planes and crew.
 Deciding the appropriate place to place new facilities such as warehouse
of factory.
 Managing the flow of wAter from the reservoir.
 Identifying possible future development paths for parts of the
telecommunications industry.
 Establishing the information needs and appropriate systems to supply
them within the health service.
 Identifying and understanding the strategies adopted by companies for
their information systems.
Quantitative Management Theory

 It focused on the applying mathematical and statistical models and
process to management situation.
Quantitative Research:
 It is the systematic empirical investigation of observable phenomena
via statistical or computational techniques
The Objective of of Quantitative Research …
 To develop and employ mathematical theories, models and /or
hypotheses pertaining phenomena.
Quantitative Data:
 Is any data that is in numerical form such as statistics, percentages,
etc.
Quantitative Research is generally made using Scientific Methods Which can
include:
 The Generation of Models, theories and Hypotheses
 The Development of Instruments and Methods of Measurement.
 Experimental Control and Manipulation of Variables
 Collection of Empirical Data
 Modelling and Analysis of Data
Statistics
 It is the most widely used branch of Mathematics iN quantitative
Research.
 It refers to the methods of obtaining organizing , analysing and
interpreting quantitative data associated with human enterprise
33 | P a g e
CONTINGENCY APPROACH
Reporter: Kimmy Marri P. Sustiguer
The contingency approach to management is based on the

idea that there is no single best way to manage. Contingency
refers to the immediate contingent circumstances. Effective organizations
must tailor their planning, organizing, leading, and controlling to their
particular circumstances. In other words, managers should identify the
conditions of a task, the requirements of the management job, and people
involved as parts of a complete management situation. The leaders must then
work to integrate all these facets into a solution that is most appropriate for a
specific circumstance.
The contingency approach to management assumes that there is no

universal answer to many questions because organizations, people, and
situations vary and change over time. Often there is no one right answer when
managers ask: “What is the right thing to do? Should we have a mechanistic
or an organic structure? A functional or divisional structure? Wide or narrow
spans of management? Tall or flat organizational structures? Simple or
complex control and coordination mechanisms? Should we be centralized or
decentralized? Should we use task or people oriented leadership styles? What
motivational approaches and incentive programs should we use?” Thus, the
answer depends on a complex variety of critical environmental and internal
contingencies.
The contingency theory is similar to situation theory in that there is an

assumption that no simple way is always right. Situation theory, however,
focuses more on the behaviors that the leader should use. The contingency
theory takes a broader view that includes contingent factors about leader
capability and also includes other variables within the situation.
Factors that influence the contingency theory are numerous. These include
the following:
-The size of the organization

-How the firm adapts itself to its environment
-Differences among resources and operations activities
-Assumption of managers about employees
-Strategies
-Technologies being used
34 | P a g e
HISTORICAL OVERVIEW
Classical management theorists such as Henri Fayol and Frederick

Taylor identified and emphasized management principles that they believed
would make companies more successful. However, the classicists came under
fire in the 1950s and 1960s from management thinkers who believed that
their approach was inflexible and did not consider environmental
contingencies. Taylor, however, emphasized the importance of choosing the
general type of management best suited to a particular case. Fayol also found
that there is nothing rigid or absolute in management affairs. So while the
criticisms were largely invalid, they created the contingency school of
management.
CONTINGENCY PERSPECTIVE AND ORGANIZATION THEORY
Environmental change and uncertainty, work technology, and the size of a

company are all identified as environmental factors impacting the
effectiveness of different organizational forms. According to the contingency
perspective, stable environments suggest mechanistic structures that
emphasize centralization, formalization, standardization, and specialization to
achieve efficiency and consistency. Certainty and predictability permit the use
of policies, rules, and procedures to guide decision making for routine tasks
and problems. On the other hand, unstable environments suggest organic
structures that emphasize decentralization to achieve flexibility and
adaptability. Uncertainty and unpredictability require general problem solving
methods for nonroutine tasks and problems.
Paul Lawrence and Jay Lorsch suggest that organizations have developed
separate departments to confront differing environmental segments.
Organizational units operating in differing environments develop different
internal unit characteristics. The researchers say that as internal difference
become greater, additional coordination between units is needed.
CONTINGENCY PERSPECTIVE AND LEADERSHIP
Dissatisfaction with trait-based theories of leadership effectiveness led

to the development of contingency leadership theories. Fred Fiedler, in the
1960s and 1970s, was an early pioneer in this area. Various aspects of the
situation have been identified as impacting the effectiveness of different
leadership styles. For example, Fiedler suggests that the degree to which
subordinates like or trust the leader, the degree to which the task is
35 | P a g e
structured, and the formal authority possessed by the leader are key
determinants of the leadership situation. Task-oriented or relationship oriented
leadership should each work if they fit the characteristics of the situation.
Other contingency leadership theories were developed as well. However,
empirical research has been mixed as to the validity of these theories.
36 | P a g e
THEORY Z
Reporter: Bainor U. Gumbila
Theory Z has been called a sociological description of the

humanistic organizations. Theory Z is an approach to
management based upon management a combination of American and
japanese management philosophies". Proponents of Theory Z suggest that it
leads to improvements in organizational performance.
Total Quality Management Approach
The wide effort to improve quality of products and services

People and organizations mainly focus on quality given by:
Quality= results of work efforts
total cost
Theory Z was first identified as a unique management approach by

William Ouchi in the 1981 book, Theory Z: How American Companies Can
Meet the Japanese Challenge.
It is characterized by:
> long-term job security
> consensual decision making
> slow evaluation and promotion procedures,
> and individual responsibility within a group context
Sometimes considered a blend of the model Theory X and Theory Y, with more
of a leaning towards Theory Y.
Also another part of this theory is that Theory Z workers can be trusted
to do their jobs to their utmost ability, so long as management can be trusted
to support them.
Theory Z is an approach to management " that advocates matching the

organization's culture to that of the larger society and assumes that involved
workers are the key to increased productivity.
37 | P a g e
William Ouchi researched the cultural differences between Japan and USA.
> USA culture emphasizes the individual, and managers tend to feel workers
follow the Theory X
model.
> Japan culture expects workers committed to the organization first and thus
behave differently than USA workers.
Theory Z combines parts of both the USA and Japan structure

> Managers stress long-term employment, work-group, and organizational
focus.
Definition:
1. The Japanese management style popularized in the 1980s that assumes
employees have an interest in good working relationships with management
and other employees. Management generally has high confidence in
employees, who are encouraged to participate in the management decision
making. Employees are viewed as long-term assets who will stay with the
same firm through their careers.
2. Japanese consensus management based on the assumptions that:

a) employees want to build cooperative relationships with their
employers, peers, and other employees in the firms; for this they.
b) require high degree of support in the form of secure employment and
facilities for development of multiple skills through training and job rotation,
c) they value family life, culture and traditions, and social institutions as
much as material success,
d) they have well-developed sense of dedication, moral obligations, and
self-discipline, and
e) they can make collective decisions through consensus.
DIFFERENCES BETWEEN AMERICAN AND JAPANESE MANAGEMENT

PRACTICES
American Organizations Japanese Organizations
Short-term employment Lifetime employment

Individual decision making Collective decision making
38 | P a g e
Individual responsibility Collective responsibility

Rapid evaluation & promotion Slow evaluation &
promotion
Explicit control mechanisms Implicit control
mechanisms
Specialized career paths Non-specialized career
paths
Segmented concern for employee Holistic concern for
employees an employee as a person
Long-Term Employment
Type Z organizations generally make life-long commitments to their
employees and expect loyalty in return, but Type Z organizations set the
conditions to encourage this. This promotes stability in the organization and
job security among employees.
Individual Responsibility
Type Z organizations retain the emphasis on individual contributions
that are characteristic of most American firms by recognizing individual
achievements, albeit within the context of the wider group.
Slow Evaluation and promotion

Slow Type Z organization, conversely, adopts the model of slow
evaluation and promotion.
Informal Control with Formalized Measures

The Type organization relies on informal methods of control, but does
measure performance through formal mechanisms. This is an attempt to
combine elements of both the Type A and Type J organizations.
Moderately Specialized Career Path

The Type Z organization adopts a middle-of-the road posture, with
career paths that are less specialized than the traditional U.S. model but more
specialized than the traditional Japanese model.
39 | P a g e
Holistic Concern
The Type Z organization is characterized by concern for employees that

goes beyond the workplace. This philosophy is more consistent with the
Japanese model than the U.S. model.
Companies Following Theory Z in U.S.:
> IBM
> Procter and Gamble
> Hewlett Packard
> Eastman Kodak
> The US Military
40 | P a g e
GOAL AND GOAL SETTING

Reporter: Talha Sarip
Goal - is the future target or end result that an organization works

to achieve.
THE NATURE OF ORGANIZATIONAL GOALS BENEFITS OF GOALS
1) Goals can increase performance

2) Facilitate the controlling function
3) They increase motivation
Levels of Goals
1) Top management( organizational perspective)
2) Middle management(Department perspective)
3) First level management(Unit individual perspective)
4)
Strategic goals-broadly defined targets on future end results set by top
management.
Tactical goals- are targets or future end results usually set by middle
management for specific departments or units.
Operational goals- are targets or future end results set by lower
management that address specific measurable outcomes required from the
lower levels.
How Goals Facilitate Performance

1) Goal Content (content should be)
a) Challenging
b) Attainable
c) Specific and Researchable
d) Time-limited
e) Relevant
2) Goal Commitment (Influenced by)
a) Supervisory Authority
b) Peer and group pressure
c) Public display
d) Expectation of success
e) Participation
3) Work behavior (Goals & commitment affect work behaviour)
41 | P a g e
a) Direction
b) Effort
c) Persistence
d) Planning
4) Other Process Components (Job process components affect
performance)
a) Work knowledge and ability
b) Complexity of the task
c) Situational Constraint
42 | P a g e
COMMUNICATION AND LEADERSHIP

Reporter: Noraine H. Ulangkaya & Aslim M.Ulangkaya
Communication: The Most Important Key

to Leadership Success. Effective leaders need to master the six
basic functions of management: leading, planning, organizing,
staffing, controlling, and communicating. ... In order to be effective,
a leader needs to focus on three elements: mission, people, and
teamwork.
COMMUNICATION
 is the act of conveying intended meanings from

one entity or group to another through the use of mutually
understood signs and semiotic rules.
 the imparting or interchange of thoughts, opinions, or information

by speech, writing, or signs
 Two-way process of reaching mutual understanding, in which

participants not only exchange (encode-decode) information, news,
ideas and feelings but also create and share meaning. In general,
communication is a means of connecting people or places
 is about more than just exchanging information. It's about

understanding the emotion and intentions behind the information.
Effective communication
Effective communication is an important life skill that enables us to

better understand and connect with the people around us. It allows us to build
respect and trust, resolve differences and foster environments where problem
solving, caring, affection and creative ideas can thrive.
Effective communication is the glue that helps you deepen your

connections to others and improve teamwork, decision making, and problem
solving. It enables you to communicate even negative or difficult messages
without creating conflict or destroying trust.
Effective communication is a learned skill, it is more effective when it’s

spontaneous rather than formulaic. A speech that is read, for example, rarely
has the same impact as a speech that’s delivered (or appears to be delivered)
spontaneously. Of course, it takes time and effort to develop these skills and
43 | P a g e
become an effective communicator. The more effort and practice you put in,
the more instinctive and spontaneous your communication skills will become.
Verbal and Nonverbal Communication
Verbal communication is the most obvious form of communication.
Nonverbal cues include facial expressions, use of hand motions, body

posture and eye movements. Leaders should strive to always match their
nonverbal cues to their words; when they do so, they are more believable and
trustworthy.
LEADERSHIP
 the action of leading a group of people or an organization.
 is both a research area and a practical skill encompassing the ability of

an individual or organization to "lead" or guide other individuals, teams,
or entire organizations
 Leadership brings together the skills needed to do these things. We'll

look at each element in more detail.
 Leadership is the ability of a company's management to set and achieve

challenging goals, take swift and decisive action, outperform the
competition, and inspire others to perform well.
 A good leader has personality, courage, clear vision with ambition to

succeed. A good leader encourages the team to perform to their
optimum all the time and drives organizational success
An effective leader is a person who does the following:
1. Creates an inspiring vision of the future.
2. Motivates and inspires people to engage with that vision.
3. Manages delivery of the vision.
4. Coaches and builds a team, so that it is more effective at achieving the

vision.
44 | P a g e
Characteristics of a Successful Leadership
1. Choose to lead.
2. Be the person others choose to follow.
3. Provide vision for the future.
4. Provide inspiration.
5. Make other people feel important and appreciated.
6. Live your values. ...
7. Leaders set the pace through your expectations and example.
Here are five communication skills that make good

leaders great:
1. Interpreting Body Language
2. Video Skills
3. Listening Carefully
4. Crystal Clear Verbal Communication
5. Writing Skills
Great Communicators Are Made, Not Born
If you lack any or all of these skills, don’t be discouraged. Spend a little bit of
time each day learning, reading, and practicing essential communication
techniques. It may seem difficult to become an excellent communicator, but
with practice, you’ll soon discover that you can do it. And who knows? You
might even discover that you’re a natural.
45 | P a g e
POWER & CONFLICT

AUTHORITY & RESPONSIBILITY
Reporter: Charles Jacon J. Geneza
Power refers to the possession of authority and influence
over others. Power is a tool that, depending on how it's used, can
lead to either positive or negative outcomes in an organization.
In 1959, American sociologists John French and Bertram Raven

published an article, "The Bases of Power," that's regarded as the basis for
classifying power in organizations. They identified five sources of power,
namely: coercive, referent, legitimate, expert and reward power.
FIVE SOURCES OF POWER IN ORGANIZATIONS:
Legitimate Power
Legitimate power is also known as positional power. It's derived from

the position a person holds in an organization's hierarchy. Job descriptions, for
example, require junior workers to report to managers and give managers the
power to assign duties to their juniors. For positional power to be exercised
effectively, the person wielding it must be deemed to have earned it
legitimately. An example of legitimate power is that held by a company's CEO.
Expert power
Knowledge is power. Expert power is derived from possessing

knowledge or expertise in a particular area. Such people are highly valued by
organizations for their problem solving skills. People who have expert power
perform critical tasks and are therefore deemed indispensable. The opinions,
ideas and decisions of people with expert power are held in high regard by
other employees and hence greatly influence their actions. Possession of
expert power is normally a stepping stone to other sources of power such as
legitimate power. For example, a person who holds expert power can be
promoted to senior management, thereby giving him legitimate power.
46 | P a g e
Referent Power
Referent power is derived from the interpersonal relationships that a
person cultivates with other people in the organization. People possess
reference power when others respect and like them. Referent power arises
from charisma, as the charismatic person influences others via the admiration,
respect and trust others have for her. Referent power is also derived from
personal connections that a person has with key people in the organization's
hierarchy, such as the CEO. It's the perception of the personal relationships
that she has that generates her power over others.
Coercive Power
Coercive power is derived from a person's ability to influence others via
threats, punishments or sanctions. A junior staff member may work late to
meet a deadline to avoid disciplinary action from his boss. Coercive power is,
therefore, a person's ability to punish, fire or reprimand another employee.
Coercive power helps control the behavior of employees by ensuring that they
adhere to the organization's policies and norms.
Reward Power
Reward power arises from the ability of a person to influence the
allocation of incentives in an organization. These incentives include salary
increments, positive appraisals and promotions. In an organization, people
who wield reward power tend to influence the actions of other employees.
Reward power, if used well, greatly motivates employees. But if it's applied
through favoritism, reward power can greatly demoralize employees and
diminish their output.
Acquisition of Power
Some people enjoy more power than others because:
1. Extraordinary Works: Doing things in a non-routine or extraordinary

works contribute to power. For example, negotiating a new contract,
developing a new product, or formulating a new programme.
2. Visible Activities: Even extraordinary activities not known to others do
not generate much power. Therefore, activities need to be visible or
known to others. Activities announced and appreciated by the people of
higher echelons bring more power.
47 | P a g e
3. Cultivate Right People: Individuals can also increase their personal

power by developing their interpersonal relationships with their
superiors, subordinates and peers.
4. Coalitions: Coalescing is yet another way to earn power. The
philosophy behind joining together is gaining increased capability to
influence others.
5. Co-opt: Individuals can increase their personal power by co-opting
people or groups. Co-opting, seeks to eliminate threats and opposition
to an individual's base of power.
Personal and Position Power
Doing extraordinary things contribute much to personal power. It is possible

for a person to affect the behaviour of others even when he does not have any
formal authority. They do so because of superior qualities. The basis of such
personal power lies in the competence, charisma and leader-like qualities of
the person concerned.
Legitimate power is power that is based on position. Authority confers

legitimacy to power. Authority is an institutionalised form of power vested in a
position or office. Position power is an exercise of the authority delegated to a
person.
Characteristics (Symbols) of Power and Powerlessness (Negative

aspects)
Kanter has identified several symbols of power or characteristics of powerful

people in organization. These are:
1. Ability to intercede for someone in trouble: An individual who

can pull someone of a jam has power.
2. Ability to get placement for favoured employees: Arranging and
getting a key promotion for an employee is a sign of power.
3. Exceeding budget limits: A manager who can go beyond and
above budget limits without being reprimanded has power.
4. Procuring above-average raises for employees: A manager who
can pull incentives above average for his/her employee has power.
5. Getting items done on own terms at meetings.
48 | P a g e
6. Access to early information: Having access to information before

anyone else is an indication of power.
7. Top managers seeking out opinion: Top managers may seek
advice from their lower-level managers. These lower-level managers have
power.
Unlike Katner, Michael Korda has identified three symbols of power. (1) Office
furnishing, (2) Time power and (3) Standing by.
Office Furnishing: Office furniture is a message about power one has.
Size of the manager's table conveys the amount of power the manger has.
Time Power: The powerful executives value time much. A full calendar
of the day is a proof of manager's power.
Standing by:
People are obliged to stay close to their phones so that the executives
can have access to them. The idea is that the more you can impose your
schedule on your people, the more power you have.
Symbols of Powerlessness (Lack of Power)
The first-line supervisors often display three symptoms of

powerlessness. These are : (i) Overly close supervision; (ii) inflexible
adherence to rules; and (iii) a tendency to do the jobs themselves rather than
educating and training their subordinates to do these.
When staff professionals (accountants and lawyers) feel powerless, they

resist change and try to protect their turf. The key to overcome powerlessness
is to share power, i.e., empowerment and delegate tasks to subordinates.
Empowerment
Empowerment is the sharing of power in such a way that individuals

learn to believe in their ability to do the job. Empowerment has four
dimensions:
1. Meaning: A fit between the work role and the employees values and
beliefs.
2. Competence: A belief that one has the ability to do the job well.
3. Self-determination: Having control over the way one does one's
work.
49 | P a g e
4. Impact: The belief that one's job makes a difference within the
organization.
As a manager, you can use these guidelines for empowering your

employees. Express confidence in employees, set high performance
expectations, create opportunities for participative decision making, remove
constraints that slow autonomy and set inspirational and meaningful goals.
Power is a very useful tool. To use it effectively, consider these tips:
- Use power in ethical ways.

- Understand and use all the various types of power and influence.
- Seek out jobs in the organization that allow you to develop your power
skills.
- Use power tempered by self-restraint and maturity.
- Accept that influencing people is an important part of a manager's job.
FRENCH AND RAVEN'S FIVE PHASES OF POWER

Social psychologists French and Raven, in a now-classic study (1959),
developed a schema of sources of power by which to analyse how power plays
work (or fail to work) in a specific relationship.
Power is the ability to influence someone According to French and
Raven, power must be distinguished from influence in the following way:
power is that state of affairs which holds in a given relationship, A-B, such that
a given influence attempt by A over B makes A's desired change in B more
likely.
Conceived this way, power is fundamentally relative - it depends on the

specific understandings A and B each apply to their relationship and,
interestingly, requires B's recognition of a quality in A which would motivate B
to change in the way A intends. A must draw on the 'base' or combination of
bases of power appropriate to the relationship, to effect the desired outcome.
Drawing on the wrong power base can have unintended effects, including a
reduction in A's own power.
French and Raven argue that there are five significant categories of
such qualities, while not excluding other minor categories. Further bases have
since been adduced - in particular by Morgan (1986: Ch. 6), who identifies 14,
50 | P a g e
while others have suggested a simpler model for practical purposes -for
example, Handy (1976), who recommends three.
In a notable study of power conducted by social psychologists John

French and Bertam Raven in 1959 power is divided into five separate and
distinct forms. As we know leadership and power are closely linked. This idea
shows how the different forms of power affect one's leadership and success.
This idea is used often in organizational communication and throughout the
workforce. "The French-Raven power forms are introduced with consideration
of the level of observability and the extent to which power is dependent or
independent of structural conditions.
Dependency refers to the degree of internalization that occurs among

people subject to social control. Using these considerations it is possible to link
personal processes to structural conditions". (Donald Warren 1968) (Lazarfeld
and Menzel 1961) French & Raven introduce five bases of power Coercive,
Reward, Legitimate, Referent and Expert.
Conflict is the process in which one party perceives that its interests
are being opposed or negatively affected by another party. Conflict is a
process in which people disagree over significant issues, thereby creating
friction between parties. Conflict can exist when people have opposing
interests, perceptions, and feelings; when those involved recognize the
existence of differing points of view; when the disagreement is on-going; and
when opponents try to prevent each other from accomplishing their goals.
Although conflict can be destructive, it can also be beneficial when used as a
source of renewal and creativity. In Competition, rivalry between individuals or
groups over an outcome that both seek, is not the same as conflict. In
competition, there must be a winner and a loser; with conflict, people can
cooperate so that no one wins or loses.
Organizational conflict occurs when a stakeholder group pursues its

interests at the expense of other stakeholders. Given the different goals of
stakeholders, organizational conflict is inevitable. Conflict is associated with
negative images, such as unions getting angry and violent, but some conflict
can improve effectiveness. When conflict passes a certain point, it hurts an
organization.
Conflict Good or Bad Conflict can have both positive and negative
consequences. On the positive side, conflict can bring energy to a competition
51 | P a g e
and focus participants on the task at hand. It can also increase group cohesion
and stimulate open discussion of issues. On the negative side, conflict can
cause participants to lose sight of common goals and focus on winning at all
costs. In addition, it can lead to distorted judgments and a lack of cooperation.
Finally, the losers in a conflict feel demoralized and lose motivation; this loser
effect harms long-term relationships and overall organizational performance.
III. How can conflict improve effectiveness?
Conflict can overcome inertia and introduce change, because conflict

requires an organization to reassess its views. Different views are considered,
and the quality of decision-making is improved. IV. Types and levels of Conflic.
There are four types of conflict. Inter-group conflict occurs when

groups within and outside the organization disagree on various issues. Level of
conflict Type of conflict Interpersonal conflict is due to differences in goals,
values, and styles between two or more people who are required to interact.
Intra group conflict occurs within and between Organization within a

work group over goals and work organizations procedures. Intrapersonal
conflict is a person's within and Group internal conflict over divergent goals,
values, or between groups roles. Inter group conflict can occur at two levels
which are horizontal and vertical.
Horizontal Within and between Individual conflict takes place between

departments or groups at individuals the same level of the organization. In
contrast, vertical conflict occurs between groups at different levels of the
organization. Types of Conflict Task conflict: Conflicts over content and goals
of the work Relationship conflict: Conflict based on interpersonal relationships
Process conflict: Conflict over how work get done.
It is entirely appropriate to say that there has been “conflict over the
role of conflict” in groups and organizations. One school of thought has argued
that conflict must be avoided that it indicates a mal functioning within the
group.
We call this the traditional view. Another school of thought the human
relations view, argues that conflict is a natural and inevitable outcome in any
group and that it need not be evil, but rather has potential to be a positive
force in determining group performance The third, and most recent,
perspective proposes not only that conflict can be a positive force in a group
but explicitly argues that some conflict is absolutely necessary for a group
52 | P a g e
outperform effectively. We label this third school the interactions view. Let’s
take a closer look at each of these views.
The Traditional View:
The early approach to conflict assumed that all conflict was bad. Conflict
was viewed negatively and it was used synonymous with such terms as
violence, destruction and irrationality to reinforce its negative connotation.
Conflict by definition, was harmful and was to be avoided. The traditional view
was consistent with attitudes that prevailed about group behavior in the 1930s
and 1940s. Conflict was seen as a dysfunctional outcome resulting from poor
communication, lack of openness and trust between people and the failure of
managers to be responsive to the needs and aspirations of their employees.
The view that all conflict is bad certainly offers a simple approach to
looking at the behaviour of people who create conflict. Because all conflict is to
be avoided, we need merely direct our attention to the causes of conflict and
correct these mal-functioning’s to improve group and organizational
performance. Although research studies do not provide strong evidence to
dispute that this approach to conflict reduction result in high group
performance, many of us still evaluate conflict situations using this outmoded
standard.
The Human Relations View:

The human relations view argued that conflict was a natural occurrence
in all groups and organizations. Because conflict was inevitable, the human
relations school advocated acceptance of conflict. Proponents rationalized its
existence. It cannot be eliminated, and there are times when conflict may
benefit a group’s performance. The human relations view dominated conflict
theory from the late 1940 through the mid-1970s.
The Interaction view:

While the human relations view accepted conflict, the interactionist view
encourage conflicts on the grounds that a harmonious, peaceful, tranquil, and
cooperative group is prone to becoming static apathetic and non-responsive to
needs for change in innovation. The major contribution of the ineteractionist
view therefore is encouraging group leaders to maintain an ongoing minimum
level of conflict enough to keep the group viable, self-critical and creative.
53 | P a g e
The inetractionist’s view does not purpose that all conflicts are good.
Rather some conflicts support the goals of the group and improve its
performance these are functional constructive firms of conflict. In addition,
there are conflicts that hinder group performance these are dysfunctional or
destructive of destructive forms of conflict. What differentiates functional for,
dysfunctional conflicts? The evidence indicates that you need to look at the
type of conflict. Specifically there are three types: Task, relationship and
process.
Task conflict relates to the content and goals of the work. Relationship
conflict focuses on interpersonal relationships. Process conflict relates to how
the work gets done. Studies demonstrate that relationship conflicts are almost
dysfunctional. Why? It appears that the friction and inter personal hostilities
inherent in relationship conflicts increase personality clashes and decrease
mutual understanding, which hinders the completion of the organizational
tasks However, low level of process conflict and low-to-moderate levels of task
conflict are functional.
For process conflict to be productive, it must be kept low. Intense

arguments about who should do what become dysfunctional when they create
uncertainty about task roles increase the time to complete tasks and lead to
members working at cross purposes. Low to moderate levels of task conflict
consistently demonstrates a positive effect on group performance because it
stimulates discussion of ideas that helps groups perform better.
Forms of Interactionist Conflict:
Functional Conflict
Conflict that supports the goals of the group and improves its
performance
Dysfunctional Conflict
Conflict that hinders group performance
Types of Interactionist Conflict:
1. Task Conflict
Conflicts over content and goals of the work
2. Relationship Conflict
Conflict based on interpersonal relationships
3. Process Conflict
Conflict over how work gets done
54 | P a g e
5 Stages of Conflict Process:
Organizational conflict arises when the goals, interests or values of

different individuals or groups are incompatible and those individuals or
groups block or thwart one another’s attempts to achieve their
objective. Conflict Process shows how conflict works within the organization.
We can identify the stages that a conflict born and grows in an organization.
In this post we will look at the stages of a Conflict covering the birth, rise and
ending of it.
The conflict process can be seen as comprising five stages.
These stages are described below:
Stage 1: Potential Opposition or Incompatibility

The first step in the conflict process is the presence on conditions that create
opportunities for conflict to develop. These cause or create opportunities for
organizational conflict to rise.
These three conditions causes conflict.
 Communications
55 | P a g e
Different words connotations, jargon insufficient exchange of information

and noise in communication channel are all antecedent conditions to
conflict.
Too much communication as well as too little communication can lay the
foundation for conflict.
 Structure
In this context the term structure is used to include variables such as size,
degree of specialization in the tasks assigned to group members,
jurisdictional clarity, members/goal compatibility, leadership styles, reward
systems and the degree of dependence between groups.
The size and specialization act as forces to stimulate conflict. The larger the
group and the more specialized its activities, the greater the likelihood of
conflict. Tenure and conflict have been found to be inversely related.
The potential for conflicts tends to be greatest when group members are
younger and when turnover is high.
In defining where responsibility for action lies; the greater the ambiguity is
the greater the potential for conflict to surface. Such Jurisdictional
ambiguity increases inter group fighting for control or resources and
territory.
 Personal Variables
Certain personality types- for example individuals who are highly
authoritarian and dogmatic- lead to potential conflict. Another reason for
conflict is difference in value systems.
Value differences are the best explanations of diverse issues such as
prejudice disagreements over one’s contribution to the group and rewards
one deserves.
Stage 2: Cognition and Personalization
Conflict must be perceived by the parties to it whether or not conflict

exists is a perception issue, second step of the Conflict Process.
If no one is aware of a conflict, then it is generally agreed that no conflict
exists. Because conflict is perceives does not mean that is personalized.
For example;
A may be aware that B and A are in serious disagreements but it may
not make A tense or nations and it may have no effect whatsoever on A’s
affection towards B.
56 | P a g e
It is the felt level, when individuals become emotionally involved that parties
experience anxiety , tension or hostility.
Stage-2 is the place in the process where the parties decide what the conflict
is about and emotions plays a major role in shaping perception.
Stage 3: Intentions
Intentions are decisions to act in a given way, intentions intervene
between people’s perception and emotions and their overt behaviour.
Using two dimensions cooperativeness (the degree to which one party
attempts to satisfy the other party’s concerns) and assertiveness (the degree
to which one party attempts to satisfy his or her own concerns) five conflict
handling intentions can be identified.
Five Conflict Handling Intentions
1. Competing: when one person seeks to satisfy his or her own interests
regardless of the impact on the other parties to the conflict, he is
competing.
2. Collaborating: A situation in which the parties to a conflict each desire to
satisfy fully the concerns of all the parties.In collaborating, the intention of
the parties are to solve the problem by clarifying differences rather than by
accommodating various points of view.
57 | P a g e
3. Avoiding: a person may recognize that a conflict exists and want to

withdraw from it or suppress it. Avoiding included trying to just ignore a
conflict and avoiding others with whom you disagree.
4. Accommodating: The willingness of one partying a conflict top lace the
opponent’s interest above his or her own.
5. Compromising: A situation in which each party to a conflict is willing to
give up something.
Intentions provide general guidelines for parties in a conflict situation. They

define each party’s purpose.
Yet people intention is not fixed. During the course of conflict, they might
change because of re-conceptualization or because of an emotional reaction to
the behavior of other party.
Stage 4: Behavior
This is a stage where conflict becomes visible. The behavior stage
includes the statements, actions and reactions made by the conflicting parties.
These conflict behaviors are usually overt attempt to implement each party’s
intentions.
Stage 5: Outcomes
The action reaction interplay between the conflicting parties result in
consequences.
These outcomes may be functional in that the conflict results in an
improvement in the group’s performance, or dysfunctional in that it hinders
group performance.
Conflict is constructive when it improves the quality of decisions

simulates creativity and innovations encourages interest and curiosity among
group members provides the medium through which problems can be aired
and tensions released and fosters an environment of self-evaluation and
change.
Conflict is dysfunctional when uncontrolled opposition breeds discontent, which
acts to dissolve common ties and eventually leads to the destruction of the
group.
Among the more undesirable consequences are a retarding of

communication, reductions in group cohesiveness and subordination of group
goals to the primacy of infighting between members.
58 | P a g e
AUTHORITY AND RESPONSIBILITY
Authority refers to the rights inherent in managerial position to give

orders and expect the orders to be obeyed. Authority was a major tenet of the
early management writers; it was viewed as the glue that held the
organization together. It was to be delegated downward to lower level
managers, giving them certain prescribed limits within which to operate. Each
management position has specific inherent rights that incumbents acquire
from the position’s rank or tile.
Authority, therefore, is related to one’s position within an organization

and ignores the personal characteristics of the individual manger. It has
nothing to do with the individual. The expression ‘The king is dead, long live
the king’ illustrates the concept. Whoever is king acquires the rights inherent
in the king’s position. When a position of authority is vacated the person who
has left the position no longer has any authority. The authority remains with
the position and its new incumbent.
When managers delegate authority, they must allocate commensurate

responsibility. That is, when employees are given rights, they also assume a
corresponding obligation to perform. And they should be held accountable for
that performance! Allocating authority without responsibility and accountability
creates opportunities for abuser and no one should be held responsible or
accountable for something over which he or she has authority.
Responsibility means state of being accountable or answerable for any

obligation, trust, debt or something or in other words it means obligation to
complete a job assigned on time and in best way.
Authority and responsibility are closely related and this principle states
that these two must go hand in hand. It means that proper authority should
be delegated to meet the responsibilities.
A match should be there between these two because of two main

reasons:--
Firstly, if a person is given some responsibility without sufficient

authority he can’t perform better, and also could not accomplish the desired
goal.
59 | P a g e
Secondly, if there is excess authority being delegated to an individual

without matching responsibility then the delegated authority will be misused in
one way or the other.
This is an important and useful principle of management because if

adequate authority is not delegated to the employees they cannot discharge
their duties with efficiency and this in turn will hamper the achievement of the
organizational goal. Sometimes the relation between management and
employees is also badly effected by non-delegation of proper authority.
Positive impacts of this principle:
No misuse of authority.
Helps to complete job effectively and efficiently.
Individuals can be held accountable.
Systematized and effective achievement of organizational objectives.
Consequences of violation of this principle:
Misuse of authority.
Responsibility can’t be discharged effectively.
No one can be held accountable.
Conflicts between management and employees.
WHAT ARE THE DIFFERENT TYPES OF AUTHORITY RELATIONSHIP?
Line authority:
The authority that entitles a manager to direct the work of an employee

The early management writers distinguished between two forms of authority:
line authority and staff authority. Line authority entitles a manager to direct
the work of an employee. It is the employer employee authority relationship
that extends from the top of the organization to the lowest echelon, according
to the chain of command. As shown below:
Chain of command:
Chief Executive Officer >
Executive Vice President > President > Executive Vice President
60 | P a g e
Vice president (6)>

Region (5)>
District (A, B, C, D, E, F and G)
As a link in the chain of command a manager with line authority has the
right to direct the work of employees and to make certain decisions without
consulting anyone. Of course, in the chain of command, every manager is also
subject to the direction of his or her superior.
Sometimes the term line is used to differentiate line managers from

staff mangers. In this context, line refers to managers organizational function
contributes directly to the achievement of organizational objectives. In a
manufacturing firm, line managers are typically in the production and sales
functions, whereas managers in human resources and payroll are considered
staff mangers with staff authority. Whether a manager’s function is classified
as line or staff depends on the organization’s objectives. For example, at
MaFoi Management Consultants which offers corporate staffing solutions,
interviewers have a line function. Similarly, at Karvy Consultants, legal
services are a line function and at many call centers tele-service is a line
function.
Staff authority: Position that have some authority but that are created to
support, assist and advise the holders of line authority.
As organizations get larger and more complex, line managers find that
they do not have the time, expertise or resources to get their jobs done
effectively. In response they create staff authority functions to support, assist,
advise and generally reduce some of their informational burdens. The hospital
administrator cannot effectively handle the purchasing of all the supplies the
hospital needs, so she creates a purchasing department, a staff department.
Of course the head of the purchasing department has line authority over the
purchasing agents who work for him. The hospital administrator might also
find that she is overburdened and needs an assistant. In creating the position
of her assistant she has created a staff position.
Delegation of authority is the base of superior-subordinate

relationship, it involves following steps:
61 | P a g e
Assignment of Duties - The delegator first tries to define the task and
duties to the subordinate. He also has to define the result expected from the
subordinates. Clarity of duty as well as result expected has to be the first step
in delegation.
Granting of authority - Subdivision of authority takes place when a

superior divides and shares his authority with the subordinate. It is for this
reason; every subordinate should be given enough independence to carry the
task given to him by his superiors. The managers at all levels delegate
authority and power which is attached to their job positions. The subdivision of
powers is very important to get effective results.
Creating Responsibility and Accountability - The delegation process

does not end once powers are granted to the subordinates. They at the same
time have to be obligatory towards the duties assigned to them. Responsibility
is said to be the factor or obligation of an individual to carry out his duties in
best of his ability as per the directions of superior. Responsibility is very
important. Therefore, it is that which gives effectiveness to authority.
At the same time, responsibility is absolute and cannot be shifted.

Accountability, on the others hand, is the obligation of the individual to carry
out his duties as per the standards of performance. Therefore, it is said that
authority is delegated, responsibility is created and accountability is imposed.
Accountability arises out of responsibility and responsibility arises out of
authority. Therefore, it becomes important that with every authority position
an equal and opposite responsibility should be attached.
Therefore every manager, i.e., the delegator has to follow a system to

finish up the delegation process. Equally important is the delegate’s role which
means his responsibility and accountability is attached with the authority over
to here.
Relationship between Authority and Responsibility
Authority is the legal right of person or superior to command his

subordinates while accountability is the obligation of individual to carry out his
duties as per standards of performance Authority flows from the superiors to
subordinates, in which orders and instructions are given to subordinates to
complete the task. It is only through authority, a manager exercises control.
In a way through exercising the control the superior is demanding
62 | P a g e
accountability from subordinates. If the marketing manager directs the sales

supervisor for 50 units of sale to be undertaken in a month. If the above
standards are not accomplished, it is the marketing manager who will be
accountable to the chief executive officer. Therefore, we can say that authority
flows from top to bottom and responsibility flows from bottom to top.
Accountability is a result of responsibility and responsibility is result of
authority. Therefore, for every authority an equal accountability is attached.
Differences between Authority and Responsibility
Authority Responsibility
It is the legal right of a It is the obligation of subordinate

person or a superior to to perform the work assigned to
command his him.
subordinates.
Authority is attached to Responsibility arises out of

the position of a superior-subordinate relationship
superior in concern. in which subordinate agrees to
carry out duty given to him.
Authority can be Responsibility cannot be shifted

delegated by a superior and is absolute
to a subordinate
It flows from top to It flows from bottom to top.

bottom.
63 | P a g e
DECISION-MAKING
Reporter: Bimbo L. Salazar
Any organization faces making decisions on a daily basis.

Organizations make some decisions after a great deal of
research and forethought, while making others on the spur of the moment in
reaction to an emergency situation. The impact of organizational decisions can
be long-term and far-reaching, or it may be short-lived and practically
unnoticed. No matter what results from a decision, someone has to take
ownership of it.
Different types of decision-making

1. Identifying Problems
2. Short-Term Decisions
3. Following Up and Feedback
1. Identifying Problems
Before making any decision, the organization has to identify exactly
what the problem is. Not identifying the problem could lead to an erroneous
decision. The leader of an organization should evaluate the issue with all
employees so everyone knows about it, and then make a decision that taps
into what's worked before if that decision process is right for solving the issue.
2. Short-Term Decision
Another decision method is the short-term method, or operational
decisions. These decisions usually solve a problem in the immediate term
through the action of employees. The method to this involves practical steps
for a quicker outcome. For example, it could be choosing a particular delivery
service to deliver products to the organization’s customers.
3. Following Up and Feedback

After an organization has made a decision, the manager or CEO needs
to follow up on it to make sure it was implemented correctly. Communication
with every employee involved in implementing the decision is important in this
scenario. Additionally, a leader of an organization should get feedback from
those directly affected by the decision. By doing so, the organization can know
whether the decision was the right one. This helps in gauging how to make
future important business decisions
64 | P a g e
Decision-Making Levels of an Organization

1. Leadership
2. Management Teams
3. Committees
4. Group Consensus
5. Individual
1. Leadership
Leadership in an organization can mean a business owner, a board of
directors, company president or a chief executive officer. No matter who
represents the leadership of an organization, he will ultimately be responsible
for a decision that is made at any level. An organization's leadership team
makes long-range, strategic decisions after weighing both internal and
external factors. Industry trends, economic swings, supply and demand, staff
issues and liability are all considerations that leadership reviews. Once the
team determines the impact of those factors, it makes decisions it believes will
benefit the organization in the long run.
2. Management Teams
Management teams are often responsible for decisions that affect daily
operations of an organization. Items such as staffing needs, work flow
processes, resources and the handling of day-to-day events fall on the
shoulders of managers. A business owner places his trust in a manager to
handle these types of decisions so that he is not bogged down with everyday
operational issues. A good, well-trained manager is confident in making
decisions without conferring with leadership. He understands his decisions
may have consequences, but he has the knowledge to make the right decision
that is best for the organization.
3.Committee
Committees are assigned decision-making responsibility for particular
projects or issues. These are decisions that are not taken lightly, and that
require sufficient time for research and evaluation. An organization chooses
committee members based on expertise in the subject, as well as
representation across the organization. The committee performs due diligence
on the issue, prepares a report and proposes a decision to leadership. The
ultimate decision may revert to leadership, or it may be a consensus between
the committee and leadership. If the committee was granted autonomy, it
makes the decision on its own. However, the leadership still retains ultimate
responsibility for decisions made on behalf of the organization.
65 | P a g e
3. Group Consensus
An organization that thrives on open communication will survey its
constituents when contemplating a decision. Feedback from all levels of the
business can garner different perspectives that will help leaders make a more
educated decision.
4. Individual
A decision made by an individual in an organization can make someone a
hero or be the cause of his demise. Decisions made by an individual are often
a reaction to a situation that is perceived to be an emergency. If the situation
is dire and the individual's decision results in saving the day, it can have a
positive impact on his stance in the organization going forward. If the decision
is incorrect, or is made in haste, the individual faces a loss of credibility among
his supervisors and peers. The adage "act now and ask for forgiveness later"
can be a risky undertaking, but there are times when the individual has no
other choice.
66 | P a g e
MANAGEMENT FUNCTIONS
PLANNING & ORGANIZING
Reporter: Rizaldy P. Maniago Jr.
Around the turn of the century, a Frenchman named

Henri Fayol introduced the management world to “systematic
management theory”. An executive and mining engineer, Fayol
played an important role in the field of management from 1888 until the time
of his death in 1915. He defined the five functions of management in his 1916
book “Administration Industrielle et Generale”, which defined his general
theory of business administration and surprisingly, this text is still seen as a
one of the basic definitions of management.Also, Fayol introduced the 14
principles of management.
“To manage is to forecast and to plan, to organize, to command,

to coordinate and to control.”
PLANNING
Planning is the function of management that involves determining the
best course of action for achieving the objectives of the organization defined
by the governing body. It requires managers to be aware of environmental
conditions facing their organization, the capacity and capability of the
organization, and to forecast future conditions and trends.
Planning assists to bridge the gap between where we are to where we
want to go. Planning is deciding in the present about the future. It means
what is to be done, and how, when, where and by whom it is to be done.
Types of Planning
1.) STRATEGIC PLANNING.
Strategic planning involves analyzing competitive opportunities and

threats, as well as the strengths and weaknesses of the organization, and then
determining how to position the organization to compete effectively in their
environment. Strategic planning generally includes the top level management.
2.) TACTICAL PLANNING.
Tactical planning is intermediate-range planning that is designed to

develop relatively concrete and specific means to implement the strategic
plan. Middle-level managers often engage in tactical planning.
67 | P a g e
3.) OPERATIONAL PLANNING.
Operational planning generally assumes the existence of objectives and

specifies ways to achieve them. Operational planning is short-range planning
that is designed to develop specific action steps that support the strategic and
tactical plans.
ORGANIZING
Organizing is the function of management that involves developing an
organizational structure and allocating human resources to ensure the
accomplishment of objectives. The structure of the organization is the
framework within which effort is coordinated. The structure is usually
represented by an organization chart, which provides a graphic representation
of the chain of command within an organization. Organizing also involves the
design of individual jobs within the organization.
An organization can only function well if it is well-organized. This means

that there must be sufficient capital, staff and raw materials so that the
organization can run smoothly and that it can build a good working structure.
The organizational structure with a good division of functions and tasks is of
crucial importance. When the number of functions increases, the organization
will expand both horizontally and vertically.
ORGANIZING PROCESS OF MANAGEMENT:

1. Identification and Division of Work - the total work is divided into various
activities.
2. Departmentalization – the activities of the same nature are grouped
together and assigned to a particular department.
3. Assignment of Duties – the responsibility of each individual or post is
decided.
4. Establishing Reporting Relations – everybody should know their respective
superiors and subordinates.
68 | P a g e
IMPLEMENTATION AND MONITORING
Reporter: Amin Ahsan M. Pabil
WHAT IS A PROJECT?
A project is a series of activities (investments) that
aim at solving particular problems within a given time
frame and in a particular location. The investments include time,
money, human and material resources. Before achieving the objectives,
a project goes through several stages. Monitoring should take place at
and be integrated into all stages of the project cycle.
The three basic stages includes:

 Project planning (situation analysis, problem identification,
definition of the goal, formulating strategies, designing a
work plan, and budgeting);
 Project implementation (mobilization, utilization and
control of resources and project operation) and;
 Project monitoring.
WHAT IS IMPLEMENTATION?
It is the stage where all the planned activities are put into action.
Before the implementation, the implementors should identify their
 strength and weaknesses (internal forces);
 Opportunities and threats (external forces).
The strength and opportunities are positive forces that

should be exploited to efficiently implement a project. The weaknesses
and threats are hindrances that can hamper project
implementation.
Monitoring is important at this implementation phase to ensure

that the project is implemented as per the schedule. This is a
continuous process that should be put in place before project
implementation starts.
Setting Goals and Objectives:

Before any attempts to implement a project, the planners,
implementers and beneficiaries should set up goals and objectives. A
69 | P a g e
goal is a general statement of what should be done to solve a problem.

It defines broadly, what is expected out of a project. The objectives
should be "SMART. “
What is SMART?
 Specific: clear about what, where, when, and how the situation
will be changed;
 Measurable: able to quantify the targets and benefits;
 Achievable: able to attain the objectives (knowing the resources
and capacities at the disposal of the community)
 Realistic: able to obtain the level of change reflected in the
objective; and
 Time bound: stating the time period in which they will each be
accomplished.
WHAT IS MONITORING?
It is an integral part of every project, from start to finish.
Monitoring is the systematic, regular collection and occasional analysis
of information to identify and possibly measures changes over a period
of time. (Vernooy, et al., 2003). Monitoring should take place at and be
integrated into all stages of the project cycle.
Good management practices include regular monitoring on both a

short- and long-term basis. An effective monitoring process provides
ongoing, systematic information that strengthens project
implementation. The monitoring process provides an opportunity to:
 compare implementation efforts with original goals and targets,

 determine whether sufficient progress is being made toward
achieving expected results and,
 Determine whether the time schedule is observed.
An effective monitoring and reporting system ideally includes

the following elements:
 Clearly articulated targets and a set of indicators to measure

performance;
 A schedule and set of guidelines for all responsible parties to
report to each other;
70 | P a g e
 An opportunity for responsible parties and stakeholders to

periodically meet to coordinate actions and review each other’s
performance
 A link between the evaluation reports and relevant statutory
planning cycles of the municipality, such as annual budgeting and
capital planning, so that the municipality can adjust its plans as
based on the actions taken by other sectors.
Why do we have to Monitor?

 To assess project results. (to find out if and how
objectives are being met and are resulting in desired
changes);
 To improve project management and process
planning.;
 To promote learning. (to identify lessons of general
applicability, outcomes, impacts, to learn what works and
what does not), and;
 To understand different stakeholders’ perspective.
(Involvement of stakeholders and better understand
competing or conflicting views and interest)
What are the Key Questions of Monitoring?

1. What do we want?
2. What do we have?
3. How do we use what we have to get what we want?
4. What will happen when we do?
 Monitoring Stage
Monitoring should be executed by all individuals and institutions
which have an interest (stake holders) in the project. To efficiently
implement a project, the people planning and implementing it should
plan for all the interrelated stages from the beginning.
 What are the Monitoring Indicators?

Monitoring indicators are quantitative and qualitative signs
(criteria) for measuring or assessing the achievement of project
activities and objectives. The indicators will show the extent to which
71 | P a g e
the objectives of every activity have been achieved. Monitoring

indicators should be explicit, pertinent and objectively verifiable.
 Types of Monitoring Indicators

 Input indicators: describe what goes on in the project
 Output indicators: describe the project activity
 Outcome indicators: describe the product of the activity
 Impact indicators: measure change in conditions of the
community
 Summary of the Relationship:
 Planning describes ways which implementation and monitoring
should be done;
 Implementation and monitoring are guided by the project
work plan; and
 Monitoring provides information for project planning and
implementation.
72 | P a g e
EVALUATION, MOTIVATION & BUDGETING
Reporter: Larry V. Gleyo
EVALUATION
 Evaluation means to judge something with a sort of standard.
 Evaluation refers to a periodic process of gathering data and then
analysing or ordering it in such a way that the resulting
information can be used to determine whether your organization
or program is effectively carrying out planned activities, and the
extent to which it is achieving its stated objectives and
anticipated results.
Why is there a need to evaluate?
An organization needs constantly to take stock of its workforce

and to assess its performance in existing jobs for three reasons
1. To improve organizational performance via improving the

performance of individual contributors (should be an automatic process
in the case of good managers, but (about annually) two key questions
should be posed:
 What he has been done to improve the performance of a

person last year? And what can be done to improve his or
her performance in the year to come?).
2. To identify potential, i.e. to recognize existing talent and to use that

to fill vacancies higher in the organization or to transfer individuals into
jobs where better use can be made of their abilities or
3. To provide an equitable method of linking payment to performance

where there are no numerical criteria (often this salary performance
review takes place about three months later and is kept quite separate
from 1. and 2. but is based on the same assessment).
Whom and what to evaluate?
 Organizational Objectives
 Program/ Activities
 Employee
73 | P a g e
The Importance of Evaluation in Management Function
 Evaluation can, and should, however, be used as an ongoing

management and learning tool to improve an organization's
effectiveness.
 Well-run organizations and effective programs are those that can

demonstrate the achievement of results. Results are derived from good
management. Good management is based on good decision making.
Good decision making depends on good information. Good information
requires good data and careful analysis of the data. These are all critical
elements of evaluation
MOTIVATION
What is Motivation?
 Motivation is the driving force that makes people to run towards their goals
rather than trudge towards it. Motivation is a relative and subjective term,
we are not here to discuss motivation but, to see how budgeting affects
the motivation of staff.
 It is defined as getting people to contribute their maximum effort toward
the attainment of organizational objectives
 Mean inspiring, stimulating or encouraging the sub-ordinates with zeal to
work. Positive, negative, monetary, non-monetary incentives may be used
for this purpose.
 Is one of the key ingredients in employees performance and productivity
THEORIES OF MOTIVATION
1. Classical Theory this theory propounded that people will be highly

motivated if their reward is directly to performance. This theory
assumes that man consciously choose the course that is most profitable
financially and that money is the best motivation.
2. Human Relations Theory. The theory which Mayo evolved from

these studies states that informal groups exist alongside the formal
organization and that those informal groups could exert a greater pull
on the workers ‘s motivation than the combined strength of money
74 | P a g e
3. Field Theory. A person motivation depends on organizational

environment. B= (P.E) B for human behaviour, P is a person, and E is
his environment. In other words, human behaviour is a function of a
person and his environment.. It implies that people can have different
motivation at a different times and what motivates an individual
depends on the environment in which he belong.
4. Needs Theory
Need for Power .People who have a high need for power express
great concern for exercising influence and control over others.
Need for Affiliation. People with a high need for affiliation seek
acceptance by social group.
Need for Achievement. People having a high need for achievement
have an intense desire for success and equally intense dread for failure
5. Abraham Maslow’s Needs Hierarchy Theory

Physiological needs= basic needs of human (air, water, food,
clothing, shelter, sex etc.)
Safety and security needs=needs for protection from possible harm.
Social needs= need for belongingness to be accepted by others.
Esteem needs= needs for self- respect, self-confidence and feel the
he is important.
Self-actualization needs= needs or desire of someone to become
everything that one is capable of becoming. Ex.artist, politician
6. Two Factors Theory. The research conducted by Frederick

Herzberg and his associate .They identified two groups, 1. Hygiene
Group .One of these groups contained environmental factors such as
salary, supervision, status, job security, working conditions, company
policy, administration and interpersonal relations. 2. Motivator or
satisfier. These factors all related to job content, include the work
itself, recognition, responsibility and achievement.
7. Theory x and Theory Y

a. Theory X asserts that the average human being is inherently
lazy, dislikes of any kind of work and will avoid it whenever
possible. Because of these characteristics, the theory implies that
people must be directed, ordered and constantly supervised by
the managers so that the organizational goals may be achieved.
75 | P a g e
b. Theory y asserts that the average human being is not indolent

nor he is without the urge to assume responsibility. He can be
self-motivated, and find self-satisfaction in work.
8. Theory Z. This theory by William G. Ouchi addresses the

practicalities of applying an understanding of Japanese management to
American setting. Simply put it suggest that involved workers are the
key to increase productivity employees. It points out that the problem
of productivity cannot be solved through monetary policy neither
through hard work, coordinating individual efforts in a productive
manner ang giving employees the incentives to do so by taking a
cooperative view. The important elements in this theory are trust and
subtlety.
9. The expectancy theories by Victor H. Vroom’s Valence Expectancy

theory can be expressed in the following equation.
Motivation=Valence X Expectancy. Vroom claimed that the strength
of an individual‘s motivation is the product of the strength of his
preference for an outcome (valence) and the probability that a
particular course of an action will achieve a desired outcome
(Expectancy).
10. Equity or Social Comparison Theory. This Theory is based on

the assumption that people are motivated by their desire to be
equitably treated in their work relationships. It contends that people are
motivated not only by what they receive but also by what they see or
believe others receive .People make comparison of inputs (educational,
effort, time spent on the job) and rewards (money, working conditions,
recognitions) for themselves and others in the organization.
11. E. R. G Theory. Another theory of motivation based on the Needs

concept is Clayton P. Aldefer’s . This Theory identifies three human
needs- existence ( Refer to all forms of materials and physiological
needs), relatedness ( refer to all forms of relationships with others such
as family, co- workers, subordinates, superiors ( and growth and
contends( refer to the desire to improve one's self and his
environment) that this needs are active in all human beings but in
varying degrees at different times.
76 | P a g e
BUDGETING
Budgeting in its general sense is the act of quantifying
objectives in financial terms. Budgeting assists managers
in decision making process in an organization. It is the function of
the management accountant to provide information needed in
budgeting process.
Budgeting performs the following functions in a company:
 Quantification of plans
 Help in financial planning
 Monitoring and controlling scarce resources through
performance measurement
7 FUNCTIONS OF BUDGET
1. FORECASTING
2. PLANNING
3. COMMUNICATION
4. MOTIVATION
5. EVALUATION
6.CONTROL/ CO-ORDINATION
7. AUTHORIZATION
77 | P a g e
MANAGEMENT TECHNIQUES AND

APPROACHES
MANAGEMENT BY OBJECTIVES
Reporter: Joan S Makalasay
Management by objectives (MBO) is a management

model that aims to improve performance of an organization by
clearly defining objectives that are agreed to by both management
and employees.
According to the theory, having a say in goal setting and action plans
should ensure better participation and commitment among employees, as well
as alignment of objectives across the organization. The term was first outlined
by management guru Peter Drucker in 1954 in his book "The Practice of
Management."
BREAKING DOWN 'Management By Objectives – MBO
A key tenet of management by objectives is the establishment of a

management information system to measure actual performance and
achievements against the defined objectives.
Practitioners claim that the major benefits of MBO are that it improves
employee motivation and commitment, and ensures better communication
between management and employees. However, an oft-cited weakness is that
MBO unduly emphasizes the setting of goals to attain objectives, rather than
working on a systematic plan to do so.
BASIC PRINCIPLE
Peter Drucker set forth several principles. Objectives are determined

with the employees and are challenging but achievable. There is daily
feedback, and the focus is on rewards rather than punishment. Personal
growth and development are emphasized, rather than negativity for failing to
reach the objectives.
Peter Drucker believed MBO was not a cure-all, but a tool to be utilized.
It gives organizations a process, with many practitioners claiming the success
78 | P a g e
of MBO is dependent on the support from top management, clearly outlined

objectives, and trained managers who can implement it.
Putting it into Practice
MBO calls for five steps that organizations should use to put the
management technique into practice. The first step is to either determine or
revise organizational objectives for the entire company. This broad overview
should be derived from the firm's mission and vision.
The next step is translating the organizational objectives to employees.
Drucker used the acronym SMART (Specific, Measurable, Acceptable, Realistic,
and Time-bound) to express the concept.Step three is stimulating the
participation of employees in setting objectives.
After the organization's objected are shared with employees, from the
top to the bottom, employees should be encouraged to help set their own
objectives to achieve these goals. This gives employees greater motivation
since they have greater empowerment.
The next to last step is to monitor the progress. In step 2, a key

component of the objectives was that they are measurable in order for
employees and managers to determine how well these were met. Lastly,
progress is evaluated and rewarded. This step includes honest feedback on
what went well and what did not.
79 | P a g e
MANAGEMENT TECHNIQUES AND

APPROACHES
MANAGEMENT BY INFORMATION SYSTEM (MIS)
Reporter: Zenitha Safiyya M Talungon
The MIS is defined as a system based on the database

of the evolved for the purpose of providing information to
the people in the organization.
Management information systems are distinct from regular
information systems in that they are used to analyze other information
systems applied in operational activities in the organization. MIS involve
three primary resources: technology, information, and people.
Management information systems are regarded to be a subset of the
overall internal controls procedures in a business, which cover the
application of people, documents, technologies, and procedures used by
management accountants to solve business problems such as costing a
product, service or a business-wide strategy.
ROLE OF MIS
 The role of MIS in an organization can be compared to the role of
heart in the body.
 The information is the blood and MIS is the heart. In the body the
heart plays the role of supplying pure blood to all the elements of
the body including the brain.
 The MIS plays exactly the same role in the organization.
 The system ensures that an appropriate data is collected from the
various sources, processed, and sent further to all the needy
destinations.
 The system is expected to fulfill the information needs of an
individual, a group of individuals, the management functionaries:
the managers and the top management.
 The MIS satisfies the diverse needs through a variety of systems
such as Query Systems, Analysis Systems, Modeling Systems and
Decision Support Systems.
 The MIS helps in Strategic Planning, Management Control,
Operational Control and Transaction Processing.
80 | P a g e
CHARACTERİSTİCS OF MIS
 Management-oriented: The basic objective of MIS is to provide
information support to the management in the organization for
decision making.
 Management directed: When MIS is management-oriented, it
should be directed by the management because it is the
management who tells their needs and requirements more
effectively than anybody else.
 Integrated: It means a comprehensive or complete view of all
the subsystems in the organization of a company.
 Common data flows: The integration of different subsystems
will lead to a common data flow which will further help in avoiding
duplicacy and redundancy in data collection, storage and
processing.
 Heavy planning-element: The preparation of MIS is not a one
or two day exercise. It usually takes 3 to 5 years and sometimes
a much longer period.
 Subsystem concept: When a problem is seen in 2 sub parts,
then the better solution to the problem is possible.
 Common database: This is the basic feature of MIS to achieve
the objective of using MIS in business organizations.
 Computerized: MIS can be used without a computer. But the use
of computers increases the effectiveness and the efficiency of the
system.
 User friendly/Flexibility: An MIS should be flexible.
 Information as a resource: Information is the major ingredient
of any MIS.
FEATURES OF MIS
 Timeliness
 Accuracy
 Consistency
 Completeness
 Relevance
AİMS OF MANAGEMENT INFORMATİON SYSTEM
81 | P a g e
 The main aim of MIS is to inform management and help them

make informed decisions about management and the way the
business is run.
 Types Of MISTransaction processing systems: These systems
process a large volume of routine, recurring transactions.
 Operations information systems: These systems gather
comprehensive data, organize it and summarize it in a form that
is useful for managers.
 Decision support systems: These systems help mangers with the
necessary information to make intelligent decisions.
 Expert systems: They are meant to mimic humans in making
decisions in a specific field.
ELEMENTS OF MIS
1.Hardware
2.Software
3.Control
4.Databases and application programs
5.People
6.Telecommunications
82 | P a g e
MANAGEMENT TECHNIQUES AND APPROACHES

NETWORK ANALYSIS
Reporter: Donna Eve M. Fetalino
Networks model the interrelated flows of work that must be

accomplished to complete a project. They visually portray the events and
activities that are planned for the project and show their sequential
relationships and interdependencies. Networks generally flow from left to right
and may or may not be drawn to scale on a time-based calendar.
In doing a network analysis, you are taking a systems approach to
producing a fully elaborated project plan that can subsequently be employed
with confidence as a managerial tool.
FOUR PRINCIPAL STAGES IN NETWORK ANALYSIS:
1. NETWORK GENERATION
This stage begins with specifications of the project's goal or
objective. It moves from the conceptualization of what must be done to
the precise specification of events and activities that are to be carried
out in achieving the goal or objective. The network produced during this
stage represents a graphic model of the project and incorporates time
(and sometimes cost) estimates.
2. NETWORK EVALUATION.
Once an initial network plan for a project is completed, it must
be assessed by a manager to determine its soundness from the
standpoint of its underlying logic.
3. NETWORK MONITORING.
Once adopted, the network plan becomes a valuable managerial
tool for the life of the project. It can be employed to determine the
extent to which the project is proceeding as planned and whether
managerial interventions are required. Where such interventions are
necessary, the network provides useful data for weighing possible
alternative managerial actions.
4. NETWORK MODIFICATION.
Monitoring may indicate that the network plan will have to be
altered to maintain necessary managerial control.
83 | P a g e
TWO TECHNIQUES OF NETWORK ANALYSIS:
1. PERT (Program Evaluation Review Technique)
- The programme, evaluation and review technique (PERT) is part of a

time management programme for large and complex public service
delivery activities. It is made up of a number of interdependent
government activities that usually includes development and
construction services. PERT provides public managers with the
understanding of where delays are likely, and what they will mean
for the rest of the public service delivery activities. The plans can be
adapted to changing circumstances with delays and the reasons for
them made visible.
- PERT originally focused only upon time variables, but it was not long
before it became possible to incorporate cost variables as well.
Sophisticated computer programs became essential for full-blown
applications of these planning technologies to handle the quantity of
calculations required by periodic updating of network plans or for
simulation of calculations.
- The Program Evaluation and Review Technique was developed in
1957 by the Navy’s Special Projects Office with the assistance of
Booz-Allen-Hamilton to aid in managing the development of the
Polaris weapon system
2. Critical Path Method (CPM)
- According to McGowen (2013:441), the critical path method (CPM) is

a time management programme aimed at public service delivery
planning, implementation and reporting. This time charting tool
calculates the earliest and latest start and finishing dates for public
service delivery activities and floats. Public service delivery activities
with no positive floats are called critical, meaning that any delay in
these activities will delay the completion of public service delivery.
84 | P a g e
BASIS FOR
PERT CPM
COMPARISON
Meaning PERT is a project CPM is a statistical technique of

management technique, project management that
used to manage uncertain manages well defined activities
activities of a project. of a project.
What is it? A technique of planning and A method to control cost and

control of time. time.
Focus on Event Activity
Model Probabilistic Model Deterministic Model
Estimates Three time estimates One time estimate
Appropriate for High precision time estimate Reasonable time estimate
Management of Unpredictable Activities Predictable activities
Nature of jobs Non-repetitive nature Repetitive nature
Critical and Non- No differentiation Differentiated

critical activities
85 | P a g e
BASIS FOR
PERT CPM
COMPARISON
Suitable for Research and Development Non-research projects like civil

Project construction, ship building etc.
Crashing concept Not Applicable Applicable
CONCLUSION
Network analysis can be a valuable technique for managers confronted

with responsibilities for planning and controlling their projects. The benefits
are many and will far outweigh costs associated with networking appropriate
for a particular project.
When engaging in network planning, it is important that advantage be

taken of less costly methods for generating, analysing, monitoring, and
updating plans. There is no “one best way” for planning all projects. Be willing
to innovate wrinkles that seem appropriate to your unique needs without
worrying about whether you are unorthodox.
86 | P a g e
ORGANIZATION, STRUCTURE, AND SYSTEM

FOR HUMAN RESOURCES MANAGEMENT
Reporter: Odessa De Guzman
BRIEF HISTORICAL BACKGROUND OF THE PHILIPPINES

BUREAUCRACY PARTICULARLY THE DEVELOPMENT OF THE CIVIL
SERVICE
1900 – the Civil Service System in the Philippines was established

pursuant to Public Law No 5.
Public Law No 5 – An act for the establishment and Maintenance of
Our Efficient and Honest Civil Service in the Philippine Island.
1905 – the board was reorganized into bureau.
1935 – the Philippine constitution firmly established the merit system
as the basis for employment in government.
Civil Service Board is composed of the following:

 Chairman
 Secretary
 Chief Examiner
“The board administered civil service examinations and set standards for
appointment in government service”
Civil Service Bureau include the three branches of the government:

- National government
- Local government
- Government corporations
-
RA 2260 – otherwise known as “ Civil Service Law” was enacted in 1959.
- This Act converted the Bureau of Civil Service to Civil Service
Commission with department status.
PD 807 – “The Civil Service Decree of the Philippines “which redefines the
role of the Commission as the central personnel agency of the government.
Article IX Section B of the 1987 Philippine Constitution

– Institutionalization of the Civil Service Commission which shall be
independent.
- it was given effect through Book V of Executive order No 292 or the
Administrative Code of 1987.
87 | P a g e
“The Code essentially reiterates existing principles and policies in the

administration of the bureaucracy and recognizes the right of
government employee to self-organization and collective negotiations
under the framework of the 1987 Constitution”
THE CENTRAL PERSONNEL AGENCY: ITS STRUCTURE, SCOPE, POWER

AND EVOLUTION
The Civil service as the central personnel agency of the Government,
shall established a career service and adopt measures to promote morale,
efficiency, integrity, responsiveness, and courtesy in the civil service. It shall
strengthen the merit and rewards system, integrate all human resources
development programs for all levels and ranks, and institutionalize a
management climate conducive to public accountability. It shall submit to the
President and the Congress an annual report on its personnel programs.
Civil Service Commission composed of the ff:

1. Chairman
2. Two Commissioners
- The Commissioners shall be shall be natural-born citizens of the

Philippines and 35 years old at the time of their appointment with proven
capacity for public administration, and must not have been elected, and
must not have been candidates for any elective position in the elections
immediately preceding their appointment.
- They shall be appointed by the President with the consent of the
Commission on Appointment
- The chairman shall hold office for seven years, Commissioner for five
(5) years, and another commissioner for three (3) years without
reappointment
Category of Civil Service
1. Career Service - the entry of the civil service career is based on merit
and fitness to be determined as far as practiceable by competitive
examinations based on highly technical qualifications, opportunity for
advancement to higher career positions, and security of tenure.
2. Non Career service - characterized by entrance on bases other than
those of the usual tests of merits and fitness utilized by the Career Service
and tenure which is limited to a period specified by the law, or which is
88 | P a g e
coterminous with that of the appointing authority or subject to his pleasure, or

which is limited to the duration of a particular subject for which the purpose
employment was made.
Position Exempt from Examinations

 Policy Determining
- position is reserved to someone who exudes competence in decision
making process and public policy system like politicians or cabinet secretaries
 Highly Technical Office
- Possess the technical and necessary skills and trainings related
field. Professional and competent persons fit this particular
degree or office like professors or scientist.
 Primarily confidential
- It requires not only confidence in the aptitude of the appointee for the
duties of the officials but close intimacy which ensures freedom of intercourse
without embarrassment or freedom from misgiving or betrayals of personal
trust or confidential matters of the state.
e.g. Clerks or drivers
SCOPE
 The Civil Service embraces all branches, subdivisions, instrumentalities,
and agencies of the Government, including government-owned or
controlled corporations with original charters
Recruitment and Appointment in Civil Service

 The opportunity for government employment shall be open to all
qualified citizens and positive efforts shall be exerted to attract the best
qualified to enter the service.
 Appointment in the Civil Service shall be made only in according to
merit and fitness to be determined, as far as practiceable, and except
as to positions which are policy-determining, primarily confidential, or
highly technical, by competitive examination.
The following are some prohibitions in the Civil Service agency

(Phil. Constitution) :
 No officer or employee of the civil service shall be removed or suspend
except for cause provided by law
 No officer or employee in the civil service shall engage, directly or
indirectly, in any electioneering or partisan political campaign
89 | P a g e
 The right to self organization shall not be denied to government

employees
Remuneration
 The Congress shall provide for the standardization of compensation of
government-owned or controlled corporations with original charters,
taking into account the nature of the responsibilities pertaining to, and
the qualifications required for their position.
Promotion and Performance Evaluation
- Promotion is a movement from one position to another with an
increase in duties and responsibilities as authorized by law and usually
accompanied by an increase in pay.
- The competence of the employees in the civil service is gauged
through the administration of a performance evaluation system which is done
every six (6) months. (e.g. IPER)
Personnel Training and Development
The Civil Service Commission made a policy that employees are to be
provided atleast one human resource development interventions every year
for their personal growth and career advancement.
Issues and concerns in the Philippine Civil Service
- Civil servants belong to the unelected government personnel who in
contrast with the elected politicians cannot be accounted for their
actions in the same manner as the elected ones.
- The issue of accountability is simply one of the many concerns that
the central government needs to address in order to reform the
bureaucracy.
Civil Service is organized with three guiding principles:
1. Merit and fitness shall govern its recruitment procedures;
2. Its political neutrality shall ensure that it is responsive to the people
through their elected representatives and that it does not take any part
in, or use its institutional power for, any partisan political activity; and
3. Security of tenure shall protect civil servants from removal without
cause.
Civil Service and the Political Executives

 The President exercises his executive and administrative functions
throughout the bureaucracy.
90 | P a g e
 The Civil Service is responsible at the frontlines for the delivery of the
government’s various services to the people and the performance of its
regulatory functions.
CIVIL SERVICE AND THE POLITICAL EXECUTIVES
The effects of Party politics on the professionalism and neutrality of

the civil service are described in the following observation:
- By 1950s political influence through letters of recommendation and

similar pressures from party leaders had become common and then
decisive in appointments to key career personnel
- By 1970s the assault by the parties had virtually destroyed the
competitive examination systems
- By 1980s politics had reduced the commission to an ineffectual
personnel records office
- The destruction of neutrality went hand in hand with erosion of
efficiency. Even if the majority of the civil servants did their jobs when
treated as professionals, the politicalization of most positions was
demoralizing. Civil servants lost public regard ands their once high
status, with the added result that their bargaining power for proper
shares was weakened.
Reorganizing the Bureaucracy
The idea of the National government5 in the recent past to reorganized

the civil service is to give it an appropriate structure that is
compartmentalized, decentralized, devolved. It has to be oriented to become
mission-driven, customer oriented and entrepreneurial.
The failure of the government-wide reorganization is

acknowledge tobe due to two factors:
1. The lack of an integrating framework
2. The opposition posed by the Congress and government employee
associations
Overall, the Civil Service is measured as to how efficient it has

been in the delivery of line services to the public. Popular beliefs
suggests, however, that the civil service, at least in the Philippines, is
characterized by too much red tape, inefficiencies and cumbersome
administrative procedures, which perhaps defeated its institutional
mandate.
91 | P a g e
PERSONNEL PROCUREMENT OR HIRING

RECRUITMENT, SELECTION, and PLACEMENT
Reporter: Kristine Ivy D. Pensader
Civil Service Commission Article IX-B of the 1987 Constitution

empowers the Civil Service Commission "to establish a career service and
adopt measures to promote morale, efficiency, integrity, responsiveness,
progressiveness and courtesy in the civil service." It is tasked to strengthen
the merit and rewards system, integrate all human resource development
programs for all levels and ranks and institutionalize a management climate
conducive to public accountability.
Recruitment & Selection Policies
1. Appointments shall be made only according to merit and fitness to be

determined, and, except to positions which are policy- determining, primarily
confidential, or highly technical, by competitive examination.
2. Open to all qualified citizens and on the basis of fitness to perform
the duties and assume the responsibilities of the position.
3. Open to all qualified men and women according to the principle of
merit and fitness.4. When a position in the first, second or third level becomes
vacant, applicants for employment who are competent, qualified and possess
appropriate civil service eligibility shall be considered for permanent
appointment.
Publication of Vacancies
Republic Act No. 7041, also known as the Publication Law, requires that
vacancies in the government service should first be announced to the public
before they can be filled to provide transparency and promote equal
opportunity in hiring personnel. Its implementation is lodged with the agencies
and the Civil Service Commission.
CSC MC No. 03, s. 2001 provides that vacant positions for filling shall
be published in accordance with RA 7041. posted in at least three
conspicuous places in the agency for at least ten calendar days. Other
appropriate modes of publications shall be considered. Filling of vacant
positions in the national government agencies, government owned and
controlled corporation, and state universities and colleges shall be made after
92 | P a g e
ten calendar days from their publication, in the LGUs, after 15 calendar days
from their publication.
The announcement of vacancies should include the following:

1. Position title
2. Item number
3. Full qualification standards, and
4. Work station.
The publication of a particular vacant position is valid until filled up but
not to extend six months reckoned from the date the vacant position
was published
The following positions are exempt from the publication requirement:

1. Primarily confidential positions;
2. Positions which are policy-determining;
3. Highly technical positions;
4. Other non-career positions; and
5. Positions to be filled by existing regular employees in the agency in
case of reorganization.
In CSC Resolution No. 070630 dated April 4, 2007 with the subject:
"Publication of Vacant Third Level Positions in the Government", CSC has
adopted new policy, that all government agencies are required to submit to
the CSC Examination, Recruitment and Placement Office (ERPO), a list of their
vacant third level positions that are authorized to be filled not later than the
10th day of every month.
Qualification Standards
The basic guide in the selection of personnel and in the evaluation of
appointments to all positions in the government. Section 4, Rule IV of the
Omnibus Rules Implementing Book V of Executive Order No. 292 and Other
Pertinent Civil Service Laws, provides that the Commission shall adopt
qualification standards for service-wide positions in the 1st and 2nd levels and
shall review and update, whenever necessary, those already established.
“Revised Policies on Qualification Standards” circularized in

Memorandum Circular No. 12, s. 2003The policies include:
 Qualification Standards that are subsequently prescribed by a special

law shall prevail.
93 | P a g e
 Appointees to career service positions must meet the requirements

prescribed in the Qualification Standards Manual, unless otherwise
determined by the Commission.
 Appointees to casual, contractual, and co- terminus positions that are
not primarily confidential in nature must meet the requirements
prescribed in the Qualification Standards Manual except the eligibility.
However, if duties of the position involve the practice of profession
regulated by the Philippine Bar/ Board laws, and/or require licenses
such as those required for positions listed under Category IV of MC No.
1, s. 1996, the corresponding professional license and/or certificate of
registration shall be required.
 CSC may allow agencies to establish qualification standards for highly
specialized positions with highly specialized and unique duties requiring
specialized education, training or skills which may not be acquired
through formal education, training programs, or experience gained from
service-wide positions.5. Unless otherwise provided by law or exempted
by the CSC, the education requirement for division chief position is a
master’s degree earned from a reputable institution recognized by the
CHED.
Example of a Qualification Standard from 1997 Qualification Standards

Manual:
 Position: Chief Personnel Specialist (Salary grade 24, 2nd Level,
National)
 Education: Masteral Degree
 Experience: 4 yrs in position/s involving management and supervision
 Training: 24 hours of training in management and supervision
 Eligibility: Career Service (Professional/Second Level Eligibility)
Examinations- A person who passes a civil service examination acquires civil

service eligibility which is a basic requirement for entrance into government
service and issued a non-prescribed Certificate of Eligibility used in applying
for a position in the government.
Admission requirements:
 citizen of the Philippines
 at least 18 years of age at the time of application

94 | P a g e
Types of examinations
 Career Service Examination
 Career Executive Officer Examination (CEOE)
 Special Examinations (Stenographer Examination, Fire Officer
Examination, Foreign Service Staff Officer Examination, Foreign Service
Officer Examination, Meat Inspector Examination, Penology Employee
and Penology Officer Examination)
Career Service Examination- Career Service Examination for the

Professional Level and Sub-Professional Level is administered in two modes:
 The Paper and Pencil test is given 2-3/ year and results are released in
2-3 months
 Computer assisted tests are given daily in the CSC Central office and in
the CSC regional offices. Results are released one hour after
examination.
Career Executive Officer Examination (CEOE)

 The unified third level examination system adopted by the CSC and the
Career Executive Service Board (CESB) needed for appointment to third
level or executive positions in the government.- a four-stage
examination system composed of:
 written test;
 assessment;
 interview, which shall be optional; and
 validation.
The CEOE is open to government officials and employees both from the
career and non- career services who are:
1. at least Bachelor’s Degree holders;
2. with at least Salary Grade 18;
3. occupying third level and comparable positions;
4. from the uniformed service of the public safety sector with the rank of at
least Senior Inspector or its equivalent, and from other uniformed services
of comparable rank; and occupying the rank of Captain or higher in the
Armed Forces of the Philippines.
Those from private sector qualified to take the CEOE written examination
include:
1. Proprietors who are managing at least 5 staff for a minimum period
of 2 years, and
95 | P a g e
2. Incumbents of managerial positions exercising supervisory functions

over at least 5 staff for at least 2 years. Employees with pending
administrative or criminal case are allowed to take the examination
without prejudice to cancellation of the eligibility if later found guilty.
Basic Qualifications for Grant of Eligibility under Special Laws and

CSC Issuances
 Citizen of the Republic of the Philippines;
 At least 18 years of age at the time of application;
 Has not been found guilty of crime involving moral turpitude or of
infamous, disgraceful or immoral conduct, dishonesty, drunkenness or
addiction to drugs;
 Has not been previously found guilty of offenses relative to, or in
connection with the conduct of a civil service examination; and
 Has not been dismissed from the service for cause.
Eligibilities Granted Under Special Laws:
 Automatic Grant of Eligibility (RA 1080) Bar/ Board Eligibility

 Barangay Official Eligibility (RA 7160) - granted to the appointive and
elective barangay officials who have served the barangay for an
aggregate of five years
 Honor Graduate Eligibility (PD 907) - granted to the honor graduates of
bachelor’s degree courses from schools or colleges of good standing
 Electronic Data Processing Specialist Eligibility (CSC Res. 90-083)-
passers of the proficiency test, or training course conducted by the
National Computer Center on the following computer programming
courses: Systems Analysis and Design, Computer Programming, Java,
MS Access, and Visual Basic and to other functionally related positions
belonging to the Information Technology/Management Information
System Group
 Scientific and Technological Specialist Eligibility (PD 997)the term
“Scientific and Technological Specialist” shall refer to a person who has
a highly technical qualifications gained through education and
sharpened by research and experience, and completed at least a
bachelor’s degree from a college, university, or institution recognized by
the Commission on Higher Education, with major or specialization in
specific fields of study
96 | P a g e
 Barangay Health Worker Eligibility (RA7883)given to accredited

Barangay Health Workers who have rendered at least five years of
continuous and satisfactory service as BHW to the community
 Skills Eligibility granted under CSC Memorandum Circular No.11, s.
1996Category I - passed appropriate Skills Test conducted by the
Technical Education and Skills Development Authority (TESDA)Category
II – completed 1 year of very satisfactory actual work performance
under temporary status of employment
 Veteran Preference Rating (EO 132, s.1948)10 points shall be added to
the ratings earned by a veteran in a civil service examination which
shall be credited to him for entrance to and promotion in the service
Personnel Selection Board (PSB) Adopts formal screening procedure and

formulates criteria for the evaluation of candidates for appointment.
 Should be contained in the agency’s Merit Selection Plan, including a

system of Ranking Positions
 may employ the assistance of external or independent resource persons
and may initiate innovative schemes in determining the best and most
qualified candidates.
 Any changes made on the PSB membership should be reported to the
concerned CSC regional or field office.
 members must be duly designated and their names posted in the
agency bulletin board Candidates for the first and second level
positions shall be screened by the PSB. Third level positions shall be
screened by the PSB for third level positions composed of at least three
executive service officials as may be constituted by the agency.
The composition of PSB:

1. As Chairperson:
 Agency Head or the authorized representative;
 Local Chief Executive for local government units or the authorized
representative;
 Vice-Governor/ Vice-Mayor or the authorized representative if the
vacant position is in his office or in the Office of the Sanggunian;
2. Division Chief or the authorized career service representative of the
organizational unit where the vacancy is;
3. Human Resource Management Officer or the career service employee
directly responsible for personnel management; and
97 | P a g e
4. Two representatives of the rank-and-file career employees, one from the

first level and one from the second level, chosen by the duly accredited
employee association in the agency, or if none exists, shall be chosen at
large by the employees through a general assembly. They shall serve for 2
years and shall participate during the screening of candidates in their
respective levels only.
Recruitment and selection in government service
Any practice or activity carried on by the organization with the primary

purpose of identifying and attracting potential employees. The
characteristics of the vacancy are more important than recruiters or
recruiting sources when it comes to predicting job choice.
Recruitment activities are designed to affect:

◦ the number of people who apply for vacancies;
◦ the type of people who apply for them, and/or
◦ the likelihood that those applying for vacancies will accept
positions if offered.
Internal recruiting – opportunity for advancement; faster, cheaper,

more certainty
External recruiting – new ideas and approaches
Direct applicants and referrals – self selection, low cost
Newspaper advertising – large volume, low quality recruits
Electronic recruiting (“e-recruiting”) – the Internet
Public and Private employment agencies – headhunters, can be
expensive (job fairs)
Colleges and Universities – campus placement services
Civil Service Commission – central personnel agency
Government agencies, LGUs – if accredited by CSC, can do the hiring
process and issue appointments subject to approval/disapproval by CSC
Open to all qualified citizens

 Based on merit and fitness
 Eligibility either thru CSC or other government examinations; or
granted by special laws and/or CSC resolutions
 Internal hiring thru promotion, transfer, reinstatement,
reemployment, detail, or reassignment is encouraged
98 | P a g e
 Qualification standards were established for each position/salary

grade in terms of education, training and experience, civil service
eligibility, physical fitness, and other qualities required for
successful performance.
Request for filling up of the position –

 Department/Section/Unit head
 Publication – newspaper of general circulation; Posting – bulletin
board
 Submission of documentary requirements
 Initial interview and verification of qualification/fitness to the
position applied for
 Interview by the members of Personnel Selection Board
 Deliberation by the PSB
 Submission of the Recommendation of the PSB to the Appointing
Authority
 Issuance of the Appointment if not department head position; if
department head, confirmation by the SP is needed.
 Approval of the appointment by the CSC
99 | P a g e
PAY ADMINISTRATION: LAWS, RULES AND

REGULATIONS
Reporter: Angie Lloyd S. Saligan
Laws Governing Pay Administration in the Philippines
There are several laws provided in the Philippines Constitution regarding

the pay administration in the government officials and employees. Civil
Service Commission protects the rights of government employees whereas the
Department of Labor and Employment is in charged with workers in private
institutions. Below are some of the Laws governing pay administration in the
Philippines:
a) Presidential Decree No. 1136. Providing for the improvement of

personnel administration, position classification and salary administration in
local governments and for the creation of a joint commission on local
government personnel administration. The local Government Personnel
Administration and Compensation Plans Decree of 1977.
b) Republic Act (RA) No. 6758 August 21, 1989 - An act prescribing a
revised compensation and position classification system in the
government and for other purposes. The act is known as Compensation
and Position Classification Act of 1989.
c) Republic Act (R.A.) No. 4477. An act providing for new classification of
provinces and cities and fixing the rates of salaries of the officials thereof and
for other purposes except Manila, Quezon City and the City of Trece Martires
are divied into seven classes according to their average income during last
four fiscal years.
d) E.O. No. 292. Instituting the "Administrative Code of 1987". Section

28. Salary Increase or Adjustment. Adjustments in salaries as a result of
increase in pay levels or upgrading of positions which do not involve a change
in qualification requirements shall not require new appointments except that
copies of the salary adjustment notices shall be submitted to the Commission
for record purposes.
e) REPUBLIC ACT NO. 6414 - An act amending section twenty-one hundred

eight-four of the revised administrative code, as amended by Republic Act
100 | P a g e
Numbered 430 and 58, by increasing the maximum limit of salaries of

Municipal Officers.
f) EXECUTIVE ORDER NO. 201 - Modifying the salary schedule for civilian
government personnel and authorizing the grant of additional benefits for both
civilian and military and uniformed personnel. Salary Standardization Law of
2016.
Compensation Adjustment Strategy. To ensure that the

compensation structure of government personnel is comparable with the
prevailing rates in the private sector thereby attracting and retaining
competent and committed civil servants, the existing CPCS is hereby
revised or updated to conform with the following:
a) Raise the minimum salary for Salary Grade 1 from the current rate of
Nine Thousand Pesos (P9,000) to Eleven Thousand Sixty Eight Pesos
(P11,068) to make it even more competitive with the market rates;
b) Bring the compensation of government personnel closer to their
private counterparts to at least 70% of the median of the market for all
salary grades;
c) Eliminate overlaps in between salary grade allocations of government
personnel to recognize differences in duties and responsibilities of the
positions;
d) Maximize the net take home pay of government personnel through
the inclusion of additional benefits; and
e) Strengthen the performance-based incentive system in recognition of
government personnel who play a greater role and carry a heavier
responsibility in attaining performance targets and delivering results.
For the military and uniformed personnel (MUP), the compensation
adjustment strategy shall be aligned with the objective of mitigating the
fiscal crisis building up in their pension system and pursuing the pension
reform.
II.IMPORTANCE OF PAY
A pay philosophy is an organization commitment how it values
employees. The goal of a pay is to attract, retain, and motivate
employees. In the public sector, this means a well-rounded philosophy, with a
focus on benefits and work life.
The purpose of a good compensation is to attract, retain, and motivate
good people. To accomplish these goals, companies use a mixture of the three
main components of compensation: Base pay, also called salary; incentive
101 | P a g e
pay, whether in the form of cash or non-cash award such as stock; and
benefits, or non-financial rewards.
III. COMPENSATION
Compensation is a systematic approach to providing monetary value
to employees in exchange for work performed. Compensation may achieve
several purposes assisting in recruitment, job performance, and job
satisfaction.
Compensation may be used to:
 recruit and retain qualified employees.
 increase or maintain morale/satisfaction.
 reward and encourage peak performance.
 achieve internal and external equity.
 reduce turnover and encourage company loyalty.
 modify (through negotiations) practices of unions.
The components of a compensation system include

 Job Descriptions A critical component of both compensation and
selection systems, job descriptions define in writing the responsibilities,
requirements, functions, duties, location, environment, conditions, and
other aspects of jobs. Descriptions may be developed for jobs
individually or for entire job families.
 Job Analysis The process of analyzing jobs from which job descriptions
are developed. Job analysis techniques include the use of interviews,
questionnaires, and observation.
 Job Evaluation. A system for comparing jobs for the purpose of
determining appropriate compensation levels for individual jobs or job
elements. There are four main techniques: Ranking, Classification,
Factor Comparison, and Point Method..
 Pay Structures Useful for standardizing compensation practices. Most
pay structures include several grades with each grade containing a
minimum salary/wage and either step increments or grade range. Step
increments are common with union positions where the pay for each job
is pre-determined through collective bargaining.
 Salary Surveys Collections of salary and market data. May include
average salaries, inflation indicators, cost of living indicators, salary
budget averages. Companies may purchase results of surveys
conducted by survey vendors or may conduct their own salary surveys.
When purchasing the results of salary surveys conducted by other
102 | P a g e
vendors, note that surveys may be conducted within a specific industry

or across industries as well as within one geographical region or across
different geographical regions. Know which industry or geographic
location the salary results pertain to before comparing the results to
your company.
Different Types of Compensation

 Base Pay
 Commissions
 Overtime Pay
 Bonuses, Profit Sharing, Merit Pay
 Stock Options
 Travel/Meal/Housing Allowance
 Benefits including: dental, insurance, medical, vacation, leaves,
retirement, taxes...
IV. SALARY
Salary is a form of periodic payment from an employer to an employee,
which may be specified in an employment contract. It is contrasted with piece
wages, where each job, hour or other unit is paid separately, rather than on a
periodic basis.
V.WAGE
Wage is monetary compensation (or remuneration, personnel
expenses, labor) paid by an employer to an employee in exchange for work
done. Payment may be calculated as a fixed amount for each task completed
(a task wage or piece rate), or at an hourly or daily rate, or based on an
easily measured quantity of work done.
VII. WORKING HOURS

Standard working hours (or normal working hours) refers to the
legislation to limit the working hours per day, per week, per month or per
year. If an employee needs to work overtime, the employer will need to pay
overtime payments to employees as required in the law.
Civil Service Commission MC No. 21, s 1991 - forty-hour work
week. All government officials and employees are required to render eight (8)
working hours a day for five working days a week or a total of forty (40) hours
a week, exclusive of time for lunch.
103 | P a g e
Normal Working Hours: 8:00 am - 12:00 am

1:00 pm - 5:00 pm
VIII. ALLOWANCE
Allowance is an amount of money given or allotted usually at regular

intervals for a specific purpose.
Different Allowance in Government service

a) RATA is Representation And Transportation Allowance. These are
granted to government officials down to division chiefs at monthly standard
to government officials down to division chiefs at monthly standard rates in
order to defray representation and transportation espenses while in the
actual performance of the duties and responsibilities of their positions.
b) PERA (Personal Economic Relief Allowance)- Budget Circular (BC) No.

2009-3, Rules and Regulations on the Grant of Personnel Economic Relief
Allowance at 2,000 per month, to supplement pay due to the rising cost
of living.
c) ACA (Additional Compensation Allowance) of government personnel
are treated as "other benefits" together with the Christmas bonus, 13th
month pay and productivity incentives. Therefore, the excess of the
Php30,000 limit is taxable as part of income tax.
d) Laundry Allowance/ Subsistence - money given in advance to a new
soldier, employee, etc., to buy food, clothing, and pay for other
necessities while awaiting a first pay. It is a money paid to a worker in
addition to salary to cover expenses that may be incurred in the
performance of the job.
e) Uniform Allowance - Budget Circular No.2012-1 To be used for
uniform or clothing allowance of employees at not more than P5,000 per
annum, subject to the rules and regulations issued by the DBM.
IX. HONORARIA
An honorarium is defined as something given not as a matter of

obligation but in appreciation for services rendered, a voluntary donation in
consideration of services which admit of no compensation in money Section 15
of R.A. No. 9184 uses the word may which signifies that the honorarium
cannot be demanded as a matter of right.
104 | P a g e
The government is not unmindful of the tasks that may be required of

government employees outside of their regular functions. It agrees that they
ought to be compensated; thus, honoraria are given as a recompense for their
efforts and performance of substantially similar duties, with substantially
similar degrees of responsibility and accountability.[18] However, the payment
of honoraria to the members of the BAC and the TWG must be circumscribed
by applicable rules and guidelines prescribed by the DBM, as provided by law.
Section 15 of R.A. No. 9185 is explicit as it states: For this purpose, the DBM
shall promulgate the necessary guidelines. The word shall has always been
deemed mandatory, and not merely directory. Thus, in this case, petitioners
should have first waited for the rules and guidelines of the DBM before
payment of the honoraria.
As the rules and guidelines were still forthcoming, petitioners could not
just award themselves the straight amount of 25% of their monthly basic
salaries as honoraria. This is not the intendment of the law.
X.INCENTIVES
An incentive is something that motivates an individual to perform an
action. The study of incentivestructures is central to the study of all economic
activities (both in terms of individual decision-making and in terms of co-
operation and competition within a larger institutional structure).
a) The Productivity Incentive Benefit (PIB) is a cash award

authorized under Administrative Order (AO) No. 161, dated December 6,
1994, to recognize individual personnel productivity and performance which
contributed to attainment of agency goals and targets. Performance
includes conduct and behavior in the discharge of the duties of a public
office.
b) Enhanced Performance-Based Bonus. The existing PBB granted

to qualified government personnel, including those in LGUs, shall be
enhanced to strengthen its results orientation, to be given in an amount
equivalent to one (1) month basic salary up to two (2) months basic salary,
to be implemented in two (2) phases starting in FY 2017.
The PBB shall be subject to the achievement by departments or

agencies, including LGUs and individual employees of their performance
105 | P a g e
targets or commitments and compliance with good governance and other

conditions.
The grant of the enhanced PBB shall be based on a progressive rate

system. As the position and responsibility in improving agency
performance becomes higher, so is the amount of PBB.
The Inter-Agency Task Force on the Harmonization of National

Government Performance Monitoring, Information and Reporting
Systems created under Administrative Order No. 25 (s. 2011) shall prescribe
the conditions on eligibility and procedures for the grant of the enhanced PBB,
including the ranking system to r recognize differences in levels of
performance.
XI.BENEFITS
In general, indirect and non-cash compensation paid to an employee.

Some benefits are mandated by law (such as social security, unemployment
compensation, and workers compensation), others vary from firm to firm or
industry to industry (such as health insurance, life insurance, medical plan,
paid vacation, pension, gratuity).
a)13th month: The Company grants a 13th month pay equivalent to

one (1) month’s pay to all eligible associates every November of each
year. Associates with at least one (1) year of service as of November 20th
shall receive a full bonus equivalent to one (1) month’s basic monthly
salary while those less than one (1) year of service shall receive a pro-
rated bonus provided they have worked for 1 month.
b)Mid-year Bonus: The company grants bonus equivalent to a half
month pay. All probationary and regular employees are eligible to this
bonus.
c)Rice Allowance: The Company shall provide rice subsidy to all eligible
associates in cash which shall be incorporated in the payroll, tax-free,
every month.
d) Meal Subsidy: The Company provides its associates with a meal
subsidy to partially cover for meals every day that the associate reports
for work and to alleviate his daily expenses. An employee must have
rendered the minimum number of hours per day to get a full or half-meal
credit.e
106 | P a g e
e)Tuition Fee Subsidy: All employees are eligible upon hire. Amount of
subsidy: P 2,500 given in April of each year.
f)Employee’s Educational Assistance Program: Provides reimbursement
of duly approved educational expenses upon satisfactory completion of
the course and provided that the degree or course taken is relevant to the
employee’s present or prospective job assignment. Maximum reimbursement
per term is P 10,000. All regular employees are eligible to this benefit.
g)Kapwa Tulong Program: Cash assistance provided to an employee

(KTC members only) in cases of death of immediate dependents or
calamity. The company matches the contribution of employees thru the
Kapwa Tulong Program which is administered through salary deduction.
h)Attendance Bonus: A bonus equivalent to one day pay given to all

Regular and Probationary Employees who are Job Grade 8 & below, and all
Technicians. Associates must have perfect attendance in one (1) month with
no tardiness, undertime or unexcused absence.
i)Prolong Sickness (PSL) Benefits: It is given to all employees with at

least six months of service. Purpose of this benefit is to provide regular
employees with salary protection during recuperation period from certain
medical conditions. The condition may include but not limited to;
k)Loyalty Token – Employees are recognized for their loyal and

dedicated service to the company for every five years of continuous service
by the way of gift check or token, plus plaque of appreciation during the
service award ceremony
l)RETIREMENT Benefits- The plan, which is 100% funded by the

company calculated at one month’s base salary per year of service based
on the employee’s latest basic rate upon normal retirement at age 60,
death or total and permanent disability. Early retirement benefit can be
available to 10 years of service equal to 50% of normal retirement benefit.
m)HOLIDAYS - Eleven (11) paid holidays regular holidays and nine (9)
national special holidays and one (1) local special holiday per year as
provided under Proclamation No. 1105 (2016 Declared Holidays)
Vacation: Thirteen (13) vacation days, with additional 1 vacation day every
107 | P a g e
year starting on 2nd year of service and convertible to cash at the end of
each year. Maximum total vacation leave is 18 days.
XII.SERVICES
These are free services given to officials and employees provided by the
institution.
HEALTH CARE SERVICES - the plan provides a comprehensive health care
coverage for employees and their dependents.
INSURANCES - Government Service Insurance System.

(Filipino: Paseguruhan ng mga Naglilingkod sa Pamahalaan, abbreviated
as GSIS) is a government owned and controlled corporation (GOCC) of
the Philippines. Created by Commonwealth Act No. 186 passed on November
14, 1936, the GSIS is mandated to provide and administer the following social
security benefits for government employees: compulsory life insurance,
optional life insurance, retirement benefits, disability benefits for work-related
contingencies and death benefits. In addition, the GSIS is entrusted with the
administration of the General Insurance Fund by virtue of RA656 of the
Property Insurance Law. It provides insurance coverage to assets and
properties which have government insurable interests.
HOUSING SERVICES - The Home Development Mutual Fund (abbreviated

as HDMF), more popularly known as the Pag-IBIG Fund, is
a Philippinegovernment owned and controlled corporation under the Housing
and Urban Development Coordinating Council responsible for the
administration of the national savings program and affordable shelter
financing for Filipinos employed by local and foreign-based employers as well
as voluntary and self-employed members. It offers its members short-term
loans and access to housing programs.
108 | P a g e
THE ORGANIZATIONAL ASPECT OF THE

DEVELOPMENT BANK OF THE PHILIPPINES
(DBP)
Reporter: Loreta O. Cortez
The Development Bank of the Philippines (DBP) is a

government financial institution created under the laws of the Republic of the
Philippines, classified as a development bank and may perform all other
functions of a thrift bank. Its primary objective is to provide banking services
principally to cater to the medium and long-term needs of agricultural and
industrial enterprises with emphasis on small and medium-scale industries.
History
DBP's history can be traced back to the Commonwealth Era. In 1935, the
National Loan and Investment Board (NLIB) was created to coordinate and
manage the various government trust funds such as the Postal Savings Fund
and the Teacher's Retirement Fund. In 1939, the NLIB was abolished and its
functions were transferred to a new body, the Agricultural and Industrial
Bank (AIB).
AIB continued operations until the outbreak of World War II. After the war,
in 1947, the AIB was abolished and the Rehabilitation Finance Corporation was
formed in its place by Republic Act No. 85, absorbing the powers and functions
of the AIB. The RFC provided credit facilities for the development of
agriculture, commerce and industry and the reconstruction of properties
damaged by the war. In 1958, the RFC was reorganized into the modern-day
DBP, reflecting that since reconstruction was largely finished, the RFC can
venture into other fields.
With an initial capital of 500 million pesos, DBP set to work on expanding
its facilities and operations to accelerate efforts on national economic
development. It established a nationwide branch network and tapped local and
foreign resources to complement its capital. It also borrowed money directly
from international finance institutions. While this strategy helped accelerate
capital formation and employment, especially in the countryside, the strategy
eventually proved to be disastrous.
109 | P a g e
President Corazon Aquino issued Executive Order No. 81, which

reorganized the bank and gave it a new charter. All non-performing assets and
liabilities were subsequently transferred to the government on June 30, 1986
and led to DBP forming a program to strengthen its institutions, such as a
thorough revision of the credit process and a training program for the
intensive implementation of new lending thrusts. Likewise, DBP reopened its
lending windows for housing, agriculture and SMEs.
In 1995, DBP became a universal bank when it was granted its universal
banking license, and three years later, had its charter revised. Under the
revised charter, DBP's authorized capital would increase from five billion pesos
to 35 billion pesos and led to the creation of the posts of President and CEO.
Organizational structure
The affairs and business of the Bank are directed, and its properties
managed and preserved, and its corporate powers exercised by a Board of
Directors consisting of nine (9) members. The Chief Executive Officer of the
Bank is also the President who is elected by the Board of Directors. The
President is also the Vice Chairman of the Board.
The DBP Head Office in Makati exercises control and supervision of all DBP
branch offices throughout the Philippines. The Board of Directors decides on
policy matters to be carried out by the President and Chief Executive Officer.
The President delegates policy and administrative directives to Executive Vice
Presidents and Senior Vice Presidents manning specialized Departments of the
bank. The Managers and Assistant Managers supervise the Division Chiefs in
implementing daily tasks handled by rank-and-file personnel.
Key Officials
As a state-owned financial institution, the President of the Republic of the
Philippines carries the power of appointing key officials of the bank, including
the Chairman of the Board, the President and Chief Executive Officer, the
Directors, and the Chief Legal Counsel. Past DBP presidents were former
cabinet secretaries, corporate managers, economists, and international finance
executives.
Subsidiaries and affiliates
DBP is divided into the following subsidiaries and affiliates:
110 | P a g e
1. Al-Amanah Islamic Investment Bank of the Philippines (AAIIBP) - the one

and only Islamic Bank in the Philippines.
2. DBP Data Center Inc. ( DBP DCI ) - an information technology and the
software house of DBP. Provides facilities management ( application
systems development, computer center operations, technical support and
network administration ).
3. DBP Insurance Brokerage, Inc. (DIBI) - a joint venture of The

Development Bank of the Philippines, DBP Provident Fund and Lockton
Philippines Insurance and Reinsurance Brokers, Inc. DIBI is a corporation
duly registered with the SEC and licensed by the Insurance Commission to
operate as Professional Insurance Broker
CORPORATE SOCIAL RESPONSIBILITY PROGRAMS
DBP has strengthened its corporate social responsibility efforts, enabling

it to share the benefits of its continued financial success with disadvantaged
sectors of the society.
The Bank’s CSR initiatives are grouped into three major areas:
education, environment, and OFW advocacy.
1. Education
111 | P a g e
Through the DBP Endowment for Education Program (DEEP), the Bank
sends poor but deserving high school students to college. Scholarship
assistance covers the whole range of the students’ requirements, including
books, cost of living, and allowances.
2. Environment
The DBP Forest Program is a non-credit program that aims to stop

denudation and restore the country’s forest cover through organized
collaboration with government and non-government organizations, state
universities and colleges, people’s organizations and other qualified forest
partners.
3. OFW Advocacy
DBP promotes the welfare of overseas Filipino workers and their families
through an integrated and focused approach in uplifting the sector.
112 | P a g e
REFERENCES
Abdulrachman, Sapia M. Public Ethics and Responsibility Western and

Islamic Perspective,2005,University Textbook Center, MSU, Marawi City
DBM (2016). Manual on PCC. Available from:

http://www.dbm.gov.ph/wp-content/uploads/2012/03/Manual-on-PCC-
Chapter-9.pdf. (Accessed: August 28,2016)
Chanrobles Virtual Library. Presidential Decrees. Available from:

http://www.chanrobles.com/presidentialdecrees/presidentialdecreeno1136.ht
ml#.WCuPnLJ97IU. (Accessed: August 28,2016)
Hersey, Paul, Kenneth H. Blanchard, and Dewey E. Johnson.

Management of Organizational Behavior. Upper Saddle River: Prentice Hall,
2001.
Hillel Schmid, Ph.D., Paul Baerwald School of Social Work, The

Hebrew University of Jerusalem, Mt. Scopus 91905 Jerusalem
Hughes, Thomas P. (2004) [1989], American Genesis: A Century of

Invention and Technological Enthusiasm, 1870–1970 (2nd ed.), Chicago, IL,
USA: University of Chicago Press, ISBN 978-0-14-009741-2.
MindTools.com. (2016). Frederick Taylor and Scientific Management

Understanding Taylorism and Early Management Theory. Available from:
https://www.mindtools.com/pages/article/newTMM_Taylor.htm. [Accessed:
August 12, 2016]
Official Gazette (2016). Republic Act No. 6758. Available

from:http://www.gov.ph/1989/08/21/republic-act-no-6758. (Accessed:
August 28, 2016)
Official Gazette (2016). Personnel Policies and Standards,
Onsemi.com(2016). 2016 Philippines Benefits Summary. Available

from: https://www.onsemi.com/site/pdf/Benefits-Summary-Philippines.pdf.
(Accessed: August 28,2016)
Paul, Richard; Elder, Linda (2006). The Miniature Guide to

Understanding the Foundations of Ethical Reasoning. United States:
Foundation for Critical Thinking Free Press
113 | P a g e
Rosen, Ellen (1993), Improving Public Sector Productivity: Concepts and

Practice, Thousand Oaks, CA, USA: Sage Publications, ISBN 978-0-8039-
4573-9
The 1987 Constitution of Republic of the Philippines. Article VII

Executive Department. Available from:http://www.gov.ph/constitutions/the-
1987-constitution-of-the-republic-of-the-philippines/the-1987-constitution-of-
the-republic-of-the-philippines-article-vii/.(Accessed: August 28,2016)
http://www.accel-team.com/human_relations/hrels_06ii_argyris.html
http://knoow.net/en/economics-business/management/argyris-
maturity-theory/ [2]
http://www.umassd.edu/fycm/decisionmaking/process/
http://www.westbrookstevens.com/Researchers.htm [3]
http://www.referenceforbusiness.com/management/Ex-Gov/Goals-and-
Goal-Setting.html
http://www.gov.ph/1987/07/25/executive-order-no-292-book-vtitle-
isubtitle-achapter-5-personnel-policies-and-standards/ (Accessed: August
28,2016)
114 | P a g e

Analysis of DCPT Result

Încărcat de

Informații document

Drepturi de autor

Formate disponibile

Partajați acest document

Partajați sau inserați document

Opțiuni de partajare

Vi se pare util acest document?

Este necorespunzător acest conținut?

Drepturi de autor:

Formate disponibile

Analysis of DCPT Result

Încărcat de

Drepturi de autor:

Formate disponibile

TABLE OF CONTENTS

Organization Nature and Characteristics 3

Management Basic Concepts and Dimensions 5

Basic Concepts of Organization and

Scientific Management Theory 10

Bureaucratic Management Theory 12

Administrative Management Theory 15

Theory X & Theory Y 23

Operations Research Management Science 29

Goal and Goal Setting 41

Management Techniques & Approaches

Organization, Structure and System

Personnel Procurement or Hiring

Pay Administration: Laws, Rules And Regulation 100

The Organizational Aspect of the

The contents of this publication were based on the

Each report presents concepts and facts supported by

1st Year MPA Students

ORGANIZATION NATURE AND

Important Characteristics of Organization

 Division of Work/Labor – it is the basis of an organization, In other

Organization is a machine of Management – Organization is considered to

Formal organization is the basis of effective management of any enterprise. It

1. Formal organization helps in determining the objectives

2. It facilitates the attainment of organizational goals

3. It facilitates optimum use of resources and new

4. It clarifies authority and responsibility relationships,

5. Formal organization creates a proper balance of activities

6. Formal organization brings about stability in the

MANAGEMENT BASIC CONCEPTS AND

The Definition by some of the leading Management thinkers are given

 Management is the art of knowing what you want to do and then

1. Management is goal oriented:

Management is an essential element of every organized activity

government, army, cricket team or business require

3. Management is an Integrative Force

Management is a social process because it is concerned with

Management has to deal with human behavior under the dynamic

6. Management is a continuous Process;

Management is dynamic and an on-going process. The cycle of

Management is unseen or invisible force. It cannot be seen but

8. Management is Both an Art and Science;

Management is both science and art. It is based on some skills ,

The organization may have various level of management. The simple

 Top Level Management

It is the highest level in managerial process. It is generally occupied by

 Middle Level Management

It consist the middle level rank of management such as branch

It is also known as the first line management , first level management

BASIC CONCEPTS OF ORGANIZATION AND

In this era of hyperactive efforts to a more

An ORGANIZATION is a planned, coordination of the activities of

An organization can be classified into three; (1) Private for Profit,

The shared experience that organizational members hold in common is

MANAGEMENT is the process of planning, organizing, leading and

Within the over-all concept of management, the function of

decisions on a day-to-day basis requires specific administrative activities that

Manager is someone who coordinates and oversees the work of other

The changing nature of organizations and work often requires

An organization is a deliberate arrangement of people to accomplish

The importance of studying management in today’s dynamic global

Public service is the service which is provided by the government to

Public Administration is "the study of government decision making, the

Therefore, organization & management is concerned with the