LEADERSHIP FUNDAMENTALS 1

LEARNING OUTCOMES
At the end of this chapter, you will be able to:

 define leadership;
 identify the traits of effective leaders;
 differentiate the different styles, principles, and theories of leadership;
and
 explain leadership process.

CONTENTS

 What is Leadership?
 What makes an effective leader?
 Leadership styles and theories.
 Self-Leadership
 Servant Leadership

LESSON 1
WHAT IS LEADERSHIP?

Before we get into details, let’s try this one. Think of one person that you consider
as a leader and briefly discuss why.

 Who: ______________________________
 Why:
__________________________________________________________________
__________________________________________________________________
____________________________________________.

As you go along in reading our lesson, checkbox is provided for you not to miss them.
Okay, let’s get started!

 The following are some popular definitions:

- It is a process by which a person influences others to accomplish an objective
and directs the organization in a way that makes it more cohesive and coherent.

- A process whereby an individual influences a group of individuals to achieve a

common goal (Northouse, 2007, p3).

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- It is a process by which a person influences others to accomplish a mission (U.S.
Army, 1983).

- Leadership is inspiring others to pursue your vision within the parameters you
set, to the extent that it becomes a shared effort, a shared vision, and a shared
success (Zeitchik, 2012).

- Leadership is a process of social influence, which maximizes the efforts of others,

towards the achievement of a goal (Kruse, 2013).

Note that all the definitions have a couple of processes in common:

a. A person influences others through social influence, not power, to get something
accomplished (bosses use power to get things done).
b. Leadership requires others, who are not necessarily direct-reports, to get
something accomplished. There is a need to accomplish something.

 Leadership is influence or the capacity that a person has to influence the behavior of
another so that he or she acts in accordance with the his or her' wishes. Here are
some types of power a person has the potential for influencing over another:

a. Coercive Power
- Power that is based on fear. A person with coercive power can make
things difficult for people. These are the people that you want to avoid
getting angry. Employees working under a coercive manager are unlikely
to be committed, and more likely to resist the manager.

b. Reward Power
- Compliance achieved based on the ability to distribute rewards that
others view as valuable. Able to give special benefits or rewards to
people. You might find it advantageous to trade favors with him or her.

c. Legitimate Power
- The power a person receives as a result of his or her position in the
formal hierarchy of an organization. The person has the right, considering
his or her position and your job responsibilities, to expect you to comply
with legitimate requests.

d. Expert Power
- Influence based on special skills or knowledge. This person earns respect
by experience and knowledge. Expert power is the most strongly and
consistently related to effective employee performance.

e. Referent Power
- Influence based on possession by an individual or desirable resources or
personal traits. This is often thought of as charisma, charm, or
admiration. You like the person and enjoy doing things for him or her.

f. Informational Power
- Providing information to others that result in them thinking or taking
acting in a new way.

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LESSON 2
WHAT MAKES AN EFFECTIVE LEADER?
What do you think of this: Is a BOSS and a LEADER the same or different? How are they
alike or how are they different? You can write a description or draw an illustration of
your thought on the table below.

Boss Leader

 THE BE-KNOW-DO MODEL

 BE
- It talks about who leaders should they BE
- BE loyal to the organization, perform selfless service, take personal
responsibility.
- BE a professional who possess good character traits. Examples: honesty,
competence, candor, commitment, integrity, courage,
straightforwardness, imagination.

 KNOW
- It talks about what leaders should KNOW (such as job, tasks, and
human nature)
- KNOW the four factors of leadership — follower, leader,
communication, situation.
- KNOW yourself. Examples: strengths and weakness of your character,
knowledge, and skills.
- KNOW human nature. Examples: human needs, emotions, and how
people respond to stress.
- KNOW your job. Examples: be proficient and be able to train others in
their tasks.
- KNOW your organization. Examples: where to go for help, its climate
and culture, who the unofficial leaders are.

 DO
- It talks about what leaders should be DOING (such as implementing,
motivating, and providing direction)
- DO provide direction. Examples: goal setting, problem solving,
decision making, planning.
- DO implement. Examples: communicating, coordinating, supervising,
evaluating.

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- DO motivate. Examples: develop morale and esprit de corps in the
organization, train, coach, counsel.
 To help you BE, KNOW, and DO, follow these eleven PRINCIPLES OF
LEADERSHIP

1. Know yourself and seek self-improvement

- In order to know yourself, you have to understand your be, know,
and do, attributes. Seeking self-improvement means continually
strengthening your attributes. This can be accomplished through self-
study, formal classes, reflection, and interacting with others.

2. Be technically proficient
- As a leader, you must know your job and have a solid familiarity with
your employees' tasks.

3. Seek responsibility and take responsibility for your actions

- Search for ways to guide your organization to new heights. And when
things go wrong, as they often tend to do sooner or later — do not
blame others. Analyze the situation, take corrective action, and move
on to the next challenge.

4. Make sound and timely decisions

- Use good problem solving, decision making, and planning tools.

5. Set the example

- Be a good role model for your employees. They must not only hear
what they are expected to do, but also see. “We must become the
change we want to see.” - Mahatma Gandhi

6. Know your people and look out for their well-being

- Know human nature and the importance of sincerely caring for your
workers.

7. Keep your workers informed

- Know how to communicate with not only them, but also seniors and
other key people.

8. Develop a sense of responsibility in your workers

- Help to develop good character traits that will help them carry out
their professional responsibilities.

9. Ensure that tasks are understood, supervised, and accomplished

- Communication is the key to this responsibility.

10. Train as a team

- Although many so called leaders call their organization, department,
section, etc. a team; they are not really teams... they are just a group
of people doing their jobs.

11. Use the full capabilities of your organization

- By developing a team spirit, you will be able to employ your
organization, department, section, etc. to its fullest capabilities.

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 TRAITS a leader must have to be effective

 Desire to Lead
- Effective leaders also tend to have a strong desire toward leadership roles
and functions. Although others are happier to allow others to take the
lead, leaders want to do so themselves.

 Honesty/Integrity
- The moral aspect of leadership is highly significant. Effective leaders must
demonstrate high levels of honesty and integrity. This is essential to
inspiring confidence and trust from employees and other followers,
without which a leader is not likely to be effective. Dishonesty may not
always be revealed at first, but it usually is with time.

 Self-Esteem /Self-Confidence
- These two elements, self-esteem and self-confidence, are closely related
and tend to be prominent in leaders. Perhaps it is best to view these
traits in terms of the negative perspective. A lack of self-esteem and self-
confidence is very problematic for a leader. When these traits are lacking,
doubts arise and insecurities plague a leader’s activities. The leader tends
to be confident that his beliefs, plans, and actions are correct (hopefully
with good reason). This confidence is important in that it enables the
leader to persist steadfastly in the right course even when there are
obstacles and doubts from others.

 Open-Mindedness
- At the same time, effective leaders also tend to be open-minded to new
ideas and experiences. They recognize that innovation is often valuable,
and they also tend to consider ideas and suggestions from others. Self-
confidence and self-esteem do not have to conflict with this spirit of
open-mindedness. When they do, the result is generally harmful.

 Intelligence
- One obvious trait that many people look for in leaders is intelligence.
Studies have shown that this is indeed an important qualification. It has
been suggested, however, that pure cognitive ability is a “threshold”
qualification. That is, it is important for the entrance into leadership roles.
However, once within the leadership circle, most individuals have
relatively high intelligence levels, so mere cognitive ability is not enough
to distinguish a leader from other leaders.

 Extraversion
- Another unsurprising personality trait that is commonly associated with
leadership is being an extrovert. Leaders tend to be outgoing and social
in their personalities, which helps them take the lead and act with
initiative. It also helps them with the important aspect of connecting to
and inspiring others through relationships.

 Knowledge of the Business

- Another key ingredient in the leadership trait mix is knowledge of the
business. Even if an individual has all the natural personality traits desired

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of leaders, a lack of knowledge and experience is usually impossible to
overcome. A leader must be competent in his field, and the most
effective leaders are usually experts with deep insight.

E-DISCUSSION / PARTICIPATION 1
MY FAVORITE LEADER
Step 1:
List down your top 3 favorite leaders.

Step 2:
Think of at least three reasons why you consider them as a leader.

Step 3:
Think of at least three leadership traits that makes them your favorite?
LEADERS

1st reason 2nd reason 3rd reason

1st trait 2nd trait 3rd trait

1st trait 2nd trait 3rd trait

1st trait 2nd trait 3rd trait

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Step 4
Form a group of three members preferably from the same municipality or province and
discuss (through online/text message) with each other your favorite leaders.

Step 5
From your discussions, choose your group’s top 3 leaders and choose the best (1) trait
they have!
LEADERS

1st 2nd 3rd

Best Trait/Attribute

Step 6
From your discussions above, evaluate the leadership capabilities of your Mayor,
Governor, or Barangay Chairman. Think of at least 3 character traits of your favorite
leaders that differs from them.
LEADER

1st 2nd 3rd

Differentiation Differentiation Differentiation
Mayor
Governor

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Chairman
Brgy.

QUIZZER
Let’ see how many points you can earn from this quiz! SCORE: ______
Direction: Choose the correct answer by circling the letter that corresponds to your
answer.

1. Which of these statements about leaders is NOT true?

A. Leaders have to be chosen or elected by a group or they aren't really the
leader.
B. A leader is someone whom other people will follow.
C. Leaders can have different leadership styles.
D. A leader has some power over the other people in a group.
2. Which of the following is true?
A. Leading is traditionally one of 4 management functions
B. Leading is more important than managing
C. Most important form is leading others
D. Most important form is leading oneself
3. Different definitions of leadership are based on, for example:
A. Traits C. Social process
B. Knowledge and skills D. All of the above
4. Which of the following is true?
A. Leading is different from managing
B. Leading is part of managing
C. It depends on your point of view
D. None of these
5. Which of these is the most important leadership skill?
A. Leading others C. Leading communities
B. Leading oneself D. None of these
6. The servant-leader theory asserts that leaders must:
A. Be a servant first
B. Be very clear on their followers are
C. Be sure their followers know who their leaders are
D. Place their own needs above their followers
7. A boss is the same to that of a leader.
A. True
B. False
8. A power that is based on fear.
A. Referent C. Expert
B. Coercive D. Reward
9. It is a process by which a person influences others to accomplish a mission.
A. Management C. Decision making
B. Leadership D. Power
10. A leadership competency includes a set of needed:
A. Knowledge B. Skills

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C. Abilities D. All of these
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KEY ANSWERS:
1) A 6) A
2) A 7) B
3) D 8) B
4) D 9) B
5) B 10) D
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LESSON 3
LEADERSHIP THEORIES and STYLES
Have you ever asked yourself these questions?
 Is there such a thing as a natural-born leader?
 Can I be a leader or is it just for a select few?

 Here are some leadership theories that might answer those questions.

The great man theory

- The great man theory of leadership states that excellent leaders are born, not
developed. A popular concept in the 19th century, this theory states that
leadership is an inherent quality. This type of leader often possesses the natural
attributes of intelligence, courage, confidence, intuition and charm, among
others.

The trait theory

- The trait theory of leadership states that certain natural qualities tend to create
good leaders. Having certain qualities does not necessarily mean someone has
strong leadership skills, however. Some leaders may be excellent listeners or
communicators, but not every listener or communicator makes an excellent
leader.

The behavioral theory

- The behavioral theory of leadership focuses on how a person’s environment, not
natural abilities, forms him or her into a leader. One of the key concepts of
behavioral theory is conditioning. Conditioning states that a person will be more
likely to act or lead in a certain style as a result of environmental responses to
behavior.

The transactional theory or management theory

- The transactional theory of leadership, also called the management theory,
studies leadership as a system of rewards and penalties. It views effective
leadership as results-focused and hierarchical. Transactional leaders prioritize
order and structure over creativity.

The transformational theory or relationship theory

- The transformational theory of leadership, also called the relationship theory,
studies effective leadership as the result of a positive relationship between
leaders and team members. Transformational leaders motivate and inspire
through their enthusiasm and passion. They are a model for their teams, and
they hold themselves to the same standard they expect of others.

The situational theory

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- The situational theory of leadership does not relate to a certain type of leader or
claim that any one style is best. Instead, situational theory argues that the best
kind of leader is one who is able to adapt her style based on the situation. They
may respond to a situation by commanding, coaching, persuading, participating,
delegating or however they think is necessary. Situational leaders are defined by
their flexibility.

 Here are some of leadership styles base from those theories:

Situational Theories’ styles of Leadership

- Different theories have been developed that recognize the situational aspects of
leadership. Each theory attempts to provide its own analysis of how leadership
can be most successful in various situations. Let’s consider a few of the key
theories.

A. Hersey and Blanchard’s Situational Leadership

- This approach to leadership suggests the need to match two key
elements appropriately: the leader’s leadership style and the followers’
maturity or preparedness levels. This theory identifies four main
leadership approaches:
a) Telling: Directive and authoritative approach. The leader makes
decisions and tells employees what to do.
b) Selling: The leader is still the decision maker, but he
communicates and works to persuade the employees rather than
simply directing them.
c) Participating: The leader works with the team members to
make decisions together. He supports and encourages them and
is more democratic.
d) Delegating: The leader assigns decision-making responsibility to
team members but oversees their work.

- In addition to these four approaches to leadership, there are also four

levels of follower maturity:
a) Level M1: Followers have low competence and low commitment.
b) Level M2: Followers have low competence, but high
commitment.
c) Level M3: Followers have high competence, but low commitment
and confidence.
d) Level M4: Followers have high competence and high
commitment and confidence.

- In Hersey and Blanchard’s approach, the key to successful leadership is

matching the proper leadership style to the corresponding maturity level
of the employees. As a general rule, each of the four leadership styles is
appropriate for the corresponding employee maturity level:
a) Telling style works best for leading employees at the M1 level
(low competence, low commitment).
b) Selling style works best for leading employees at the M2 level
(low competence, high commitment).
c) Participating style works best for leading employees at the M3
level (high competence, low commitment/confidence).

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d) Delegating style works best for leading employees at the M4 level
(high competence, high commitment/confidence).

B. Normative Decision Theory

- One final theory we will look at is Victor Vroom and Phillip Yetton’s
Normative Decision Theory. This approach is intended as a guide in
determining the optimum amount of time and group input that should be
committed to a decision. A leader has a number of options available to
him in this regard:
a) He can make a decision entirely by himself.
b) He can use information from team members to make decisions.
c) He can consult team members individually and ask their advice
before making the decision.
d) He can consult team members as a group before making the
decision.
e) He can consult the team as a group and allow the team as a
whole to make the decision.

- Vroom and Yetton provide a model that helps leaders decide when to use
each approach. The model walks leaders through a series of questions
about the decision to be made, and the answers will lead the decision
maker to the suggested approach. The questions focus on a few key
factors:
a) Is decision quality highly important?
b) Does the leader have sufficient information to make the decision?
c) Is it highly important for team members to accept the decision?
d) Are the team members likely to accept the leader’s decision if he
makes it individually? What if he makes it with their consultation?
e) Do the team members’ goals match those of the leader and
organization?
f) Is the problem structured and easily analyzed?
g) Do team members have high levels of expertise in the matter to
be decided?
h) Do team members have high levels of competence in working
together as a group?

C. Leadership styles adopted from Goleman’s Model

Pacesetting Leader is the leader that sets aggressive goals and
standards and drives employees to reach them. This works with highly
motivated and competent employees, but can lead to burnout due to the
high energy demands and stress levels.

Authoritative Leader is the leader that authoritatively provides a

direction and goals for the team, expecting the team to follow his lead.
The details are often left up to the team members. This works well when
clear direction is needed, but can be problematic if the team members
are highly experienced and knowledgeable and might resent being
dictated to.

Affiliative Leadership is a positive reinforcement and morale-boosting

style. The leader praises and encourages the employees, refraining from
criticism or reprimand. The goal is to foster team bonding and
connectedness, along with a sense of belonging. This approach works

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best in times of stress and trauma or when trust needs to be rebuilt. It is
not likely to be sufficient as a long-term or exclusive strategy.

Coaching Leader is the leader that focuses on helping individual

employees build their skills and develop their talents. This approach
works best when employees are receptive to guidance and willing to hear
about their weaknesses and where they need to improve.

Coercive Leader is the leader that acts as the ultimate authority and
demands immediate compliance with directions, even applying pressure
as needed. This can be appropriate in times of crisis or disaster, but is
not advisable in healthy situations.

Behavioral theories’ styles of Leadership

A. The Task-Centered vs. Employee-Centered
- Most behavioral leadership styles fall within two broad categories: task-
centered styles and employee-centered styles.

Task-centered styles of leadership focus on giving instructions and

directions to group members to reach achievement and accomplishment
goals more efficiently and effectively. The focus is on the objective
analysis of what needs done and the specific course of actions that
should be taken to meet those needs. Employees are seen as resources
to be used to accomplish the goals.

Employee-centered styles of leadership focus less on objective actions

or plans and more on building the relationships between themselves and
their followers. By encouraging and supporting them, the leader hopes to
make them more qualified, confident, and productive. His focus is on
developing his employees and inspiring them to follow the vision he has
provided. Employee-centered styles are also often referred to as people-
centered or relationship-centered.

B. Autocratic, Democratic, or Laissez-faire

- A leader’s style can often be identified by the manner in which he makes
decisions, especially the degree to which he involves his employees. This
aspect of leadership is often divided into a spectrum with three broad
categories: autocratic, democratic, and laissez-faire.

An autocratic leader makes decisions without significant employee

involvement in the process. He works from an authoritarian perspective.
This approach often corresponds to a task-centered style. This approach
can be faster and more efficient than more discursive approaches.

A democratic approach strongly involves the employee team in the

decision-making process. This can take a variety of forms. For example,
the employees may discuss the issue together as a group, followed by
the leader making the final decision. Alternatively, the leader might agree
to allow the employees a final vote in the matter. In any case, employees
have a significant role to play in the process.

A laissez-faire approach is a very hands-off approach to leadership.

Instead, employees make decisions on their own. This approach generally

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leads to lower productivity, but it may be the best where employees are
experts or where creativity is needed.

How do I choose my own Leadership Style/s?

- Knowing which of the leadership styles works best for you is part of being a good
leader. Developing a signature style with the ability to stretch into other styles as
the situation warrants may help enhance your leadership effectiveness.

Know yourself
- Start by raising your awareness of your dominant leadership style. You
can do this by asking trusted colleagues to describe the strengths of your
leadership style. You can also take a leadership style assessment.
Understand the different styles
- Get familiar with the repertoire of leadership styles that can work best for
a given situation. What new skills do you need to develop?

Practice makes a leader.

- Be genuine with any approach you use. Moving from a dominant
leadership style to a different one may be challenging at first. Practice the
new behaviors until they become natural.

Develop your leadership agility.

- Traditional leadership styles are still relevant in today's workplace, but
they may need to be combined with new approaches in line with how
leadership is defined for the 21st century.

 FACTORS AFFECTING LEADERSHIP

 Leader
- You must have an honest understanding of who you are, what you know,
and what you can do. Also, note that it is the followers, not the leader or
someone else who determines if the leader is successful. If they do not
trust or lack confidence in their leader, then they will be uninspired. To
be successful you have to convince your followers, not yourself or your
superiors, that you are worthy of being followed.

 Followers
- Different people require different styles of leadership. For example, a new
hire requires more supervision than an experienced employee does. A
person who lacks motivation requires a different approach than one with
a high degree of motivation. You must know your people! The
fundamental starting point is having a good understanding of human
nature, such as needs, emotions, and motivation. You must come to
know your employees' be, know, and do attributes.

 Communication
- You lead through two-way communication. Much of it is nonverbal. For
instance, when you “set the example,” that communicates to your people
that you would not ask them to perform anything that you would not be
willing to do. What and how you communicate either builds or harms the
relationship between you and your followers.

 Situation

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- All situations are different. What you do in one situation will not always
work in another. You must use your judgment to decide the best course
of action and the leadership style needed for each situation. For example,
you may need to confront an employee for inappropriate behavior, but if
the confrontation is too late or too early, too harsh or too weak, then the
results may prove ineffective.

QUIZZER
Let’ see how many points you can earn from this quiz! SCORE: ______
MULTIPLE CHOICES: Choose the correct answer from column C and write answer on
column.

A B C
1. The phrase most illustrative of this leadership
style is "Do as I say."
2. The phrase most indicative of this style of A. Affiliative Style
leadership is "Follow me." B. Laissez-Faire Style
3. "Do as I do!" is the phrase most indicative of C. Autocratic Style
leaders who utilize this style. D. Democratic Style
4. These leaders are more likely to ask "What do E. Coaching Style
you think?" F. Authoritative Style
5. This leadership style tend to have a "Consider G. Pacesetting Style
this" approach.
6. A phrase often used to describe this type of
leadership is "People come first."
7. Of all the leadership styles, this one involves
the least amount of oversight.
8. This is best used with high maturity followers.
9. It is used to the moderate followers who are
not only experienced but with those who aren't A. Participating style
as confident to do the tasks assigned. B. Selling style
10. This is used with moderate followers who have C. Delegating style
the ability but are unwilling to do the job. D. Telling style
11. This style is geared toward low maturity
followers.
12. It is the practice of intentionally influencing
your thinking, feeling and actions towards your
objective/s. A. Task Centered
13. It is defined as wanting to serve first in order to style
ensure that other people's highest priority B. Servant
needs are being served. Leadership
14. The focus is on the objective analysis of what C. Self-Leadership
needs done and the specific course of actions D. Employee
that should be taken to meet those needs. centered
15. The focus less on objective actions or plans and
more on building the relationships between

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themselves and their followers.

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KEY ANSWERS
1. C 9. A
2. F 10. B
3. G 11. D
4. D 12. C
5. E 13. B
6. A 14. A
7. B 15. D
8. C
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ASSIGNMENT 1
FINDING MY STRONGEST LEADERSHIP TENDENCY
*Note: This activity is adopted from The Four Leadership Styles Activity WE Day 2004.

Step 1
Read the leadership styles below and memorize their color code.

GREEN YELLOW
GREEN LEADERS bring everyone together. YELLOW LEADERS propel the team with
They resolve conflicts amongst team action. They lead by example, motivating
members and ensure that all team members people and maintaining the team’s
are feeling good. Greens are great at momentum as they move toward the goal.
building relationships within groups and They keep teams focused and can be
creating a positive environment for groups. persuasive in getting their way. They are
They are often seen as great “people often seen as reliable people who follow
people.” through and get things done.

RED BLUE
RED LEADERS use their logic-based skills BLUE LEADERS dream and inspire. They
to make sure that groups are being realistic are the idea makers, they approach problems
and achievement focused. They analyze the in new ways and tackle tasks differently than
team’s goals and actions and decide the best others. Blues are always thinking,
possible way to achieve the goals, given brainstorming, suggesting and looking ahead
specific conditions and circumstances. Reds at where the team can go. They are often
do a lot of calculating, analyzing, seen as “big picture” thinkers.
systematizing, organizing and budgeting.
They are great at providing solutions that
“make the most logical sense.”

Step 2
Rate how true the following statements are as they pertain to you, with 1 being untrue
and 10 being true.

RATIN STATEMENTS LEADERSHIP

G When I am among a group of friends or CODE
(1-10) classmates…
1. I don’t need to be in charge of a group, but I
enjoy making detailed plans that everyone will
carry out.
2. I am the nurturing type who takes care of
everyone.
3. I am the listener. I hear what people are saying

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and make sure everyone has a voice.
4. I look at all sides of a situation before arriving at a
solution.
5. I like to tackle tasks, problems, and projects with a
well-thought out plan.
6. I am drawn to hands-on tasks. I like making
tangible products.
7. I like to take risks and try ideas before knowing if
they will work or not.
8. I don’t like trying something unless I’m pretty sure
it will work the first time.
9. I like to get things done quickly.
10. Sometimes I can seem disorganized.
11. People are quick to trust me.
12. I make most decisions based on facts, data and
numbers.
13. I am good at being in charge of groups and
keeping groups focused.
14. People see me as someone who will get the job
done, no matter what.
15. Sometimes I have a hard time saying no to people,
and end up taking on too much.
16. I am the peacekeeper who listens to everyone and
finds a reasonable compromise.
17. Often it takes me a long time to make decisions
because I need more information.
18. I am the artistic one and people see me as
creative
19. I can be stubborn when I feel passionately about
something going my own way.
20. I am the energetic one who is always ready to roll
up my sleeves and get to work.

Step 3
Look for the color code of your leadership style and tally your score on each color code
to identify your strongest leadership tendency. Here are the color codes:

1. Red 6. Yellow 11. Green 16. Green

2. Green 7. Blue 12. Red 17. Blue
3. Green 8. Red 13. Blue 18. Blue
4. Red 9. Yellow 14. Yellow 19. Yellow
5. Red 10. Blue 15. Green 20. Yellow

Green Yellow Red Blue

Score: Score: Score: Score:

My strongest leadership style is ________________________________________.

TAKEAWAYS
Let’s refresh what you have been learning in this course.

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MY TOP THREE
List your top 3 lessons from the above discussions!

Top 1:
________________________________________________________________

Top 2:
________________________________________________________________

Top 3:
________________________________________________________________

LESSON 4
SELF-LEADERSHIP

 HOW TO LEAD YOUR SELF?

- Before leading others, we must know how to lead first our self.

- Simply, Self-leadership describes how you lead your own life – setting your
course, following it, and correcting as you go.

- Self-leadership is the practice of intentionally influencing your thinking, feeling

and actions towards your objective/s.

- It is also known as Personal Mastery is the answer to how do we develop

ourselves to survive and thrive in a volatile, uncertain, complex and ambiguous
world.

- Another Self-leadership definition is having a developed sense of who you are,

what you can do, where you are going coupled with the ability to influence your
communication, emotions and behavior on the way to getting there.

- Self-leadership is about constantly developing the following aspects of our inner

self in order to achieve personal mastery.
a. Intention (having a 'why') precedes any purposeful action (behavior).
Actions have effects which the self-leader evaluates via feedback.

b. Self-awareness is about knowing your intentions and values, as well as

knowing what can ‘push your buttons’ and derail you.

c. Self-confidence comes from knowing your strengths and abilities. As we

take actions and develop skills, we become more confident.

d. Self-efficacy is the belief that whatever comes our way, we can handle it.
We can take the feedback, accept, adjust and advance. With self-efficacy
we can be more creative and innovative.

 What does it take to become a self-leader? Below are five core qualities of self-
leadership that anyone can hone:

1. Enthusiasm for learning

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- One must have to keep up with trends, well-read, and love to learn and
share new information. Surround themselves with others who are also
learning enthusiasts. Case in point. Bill Gates is said to read about 50
books a year, and he credits that for providing him an advantage.

2. Goals for life and business

- Because many of us live in a combined world of the personal and
professional, setting goals for business and life are critical. Those who
exercise self-leadership take that a step further by monitoring those goals
and correcting the course when needed.

- Create a vision board. It allows one to dream big and visualize what
he/she wants to be. Secondly, create a goal board – this can be a white
board of your yearly goals, broken down into quarterly or monthly goals.

3. Willingness to let go.

- Self-leaders have learned where to direct their time and energy, and
where to delegate. This action allows you to better lead in your areas of
strength. It also allows you to create collaborative relationships with your
colleagues.

4. Plans and schedules.

- Self-leaders create plans and schedules they also stick to them. For
example, discipline may mean designating blocks of time for creative
work, or a scheduled time to check email and return phone calls. It could
also mean shutting down at a certain time each evening, or a willingness
to say no to non-essential work (or life) activities.

5. Focus and discipline.

- It’s a fact that our brains can only truly focus on one thing at a time to do
a task well. This is even more critical when the task involves creating
thinking or problem solving (rather than a rote task). Self-leaders have
developed the skill of selecting what they want to focus on and tuning
out the rest for a set amount of time. They do their best work and create
better results.

ASSIGNMENT 2
MY LEADERSHIP CALENDAR
*Note: This activity is adopted from Tom Siebold.

Step 1
Choose a week from your calendar preferably during the duration of this chapter.

Step 2
At the end of each day, you should write down some leadership behavior (either positive
or negative) that you exercised during that day. Each behavior should be followed by a
reaction statement that answers two questions: “How did I feel about my action or
behavior?” and “How does this action or behavior jive with what I know about
leadership best practices?”

Year Month
Date Leadership Behavior exercised during this day

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LESSON 5
SERVANT LEADERSHIP

 How is SERVANT LEADERSHIP applied?

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- Robert Greenleaf coined the term in 1970 in his paper, “The Servant as Leader”.
- Greenleaf defines it as wanting to serve first in order to ensure that other people's
highest priority needs are being served. Servant leaders use less institutional power
and control while shifting authority to the followers. Secondly, servant leaders have
a positive effect on the least privileged in society; will they benefit, or, at least, will
they not be further deprived? If inequalities and social injustices exist, a servant
leader tries to remove them (Graham, 1991).

- Servant leadership is both a leadership philosophy and set of leadership practices

in that it emphasizes serving, while having ten principles (Spears, 2010) that guide
the servant leader:

1. Listening
- Making a deep commitment to listening intently to others in order to
identify and clarify the will of a group. This means one must get in touch
with one's inner voice, and seeking to understand what another's body,
spirit, and mind are communicating.

2. Empathy
- Understand others and empathize with them by accepting and
recognizing their special and unique spirit. The servant leader must
assume the good intentions of their coworkers and not reject them, even
when forced to reject their behavior or performance.

3. Healing
- Having the potential to heal one's self and others so that transformation
and integration can take place. In The Servant as Leader, Greenleaf
writes, “There is something subtle communicated to one who is being
served and led if, implicit in the compact between the servant-leader and
led is the understanding that the search for wholeness is something that
they have.”

4. Awareness
- Being mindful of one's surroundings, and especially being self-aware, will
strengthen the servant-leader. Fostering awareness can be difficult, as
one never knows what may be discovered.

5. Persuasion
- While traditional leaders rely heavily upon their positional authority in
making decisions, servant leaders rely on persuasion to convince others
in order to build consensus within groups. This principle is noted as one
of the clearest distinctions between the traditional authoritarian model
and that of servant leadership.

6. Conceptualization
- The ability to look at a problem or the organization from a
conceptualizing perspective so that one goes beyond the day-to-day
realities in order to bring visions to reality.

7. Foresight
- Using the intuitive mind to understand lessons from the past, the realities
of the present, and the likely consequence of a decision in the future in
order to solve complex problems.

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8. Stewardship
- Holding the institution in trust for the greater good of society.

9. Commitment to the Growth of People

- People have an intrinsic value beyond their tangible contributions as
workers, thus the servant leader is deeply committed to a personal,
professional, and spiritual growth of each and every individual within the
organization.

10. Building Community

- Servant leaders seek to identify a means for building community among
those who work within a given institution.

E-DISCUSSION / PARTICIPATION 2
MY 1,000 PESO TREASURE
Step 1
Choose 4 from your classmates and form a group.

Step 2
Brainstorm responses to the question, “What is the best thing you can buy for a
thousand peso?” Share at least 5 from each of you.

Treasure 1: ______________________
Treasure 2: ______________________
Treasure 3: ______________________
Treasure 4: ______________________
Treasure 5: ______________________

Step 3
From your discussion, evaluate who is the beneficiary of those treasures you intend to
buy.

Step 4:
Brainstorm again and think of ways you can use the one thousand peso to serve others.

REFERENCES

 Clark, D.R. (2004). Concepts of leadership. Retrieved from

http://nwlink.com/~donclark/leader/leadcon.html

 Clark, D.R. (2004). Leading. Retrieved from

http://www.nwlink.com/~donclark/leader/leadled.html

 ER Services. (n.d.). What Makes an Effective Leader?. Retrieved from

https://courses.lumenlearning.com/suny-principlesmanagement/
chapter/what-makes-an-effective-leader/

 ER Services. (n.d.). Situational Leadership Theories. Retrieved from

https://courses.lumenlearning.com/suny-principlesmanagement/chapter/
situational-theories-of-leadership/

Page 21 of 65
 Indeed Career Guide. (2020). 6 Leadership Theories for Career Growth.
Retrieved from https://www.indeed.com/career-advice/career-
development/leadership-styles-and-theories

 Bryant, A. (2012). Self-leadership definition. Retrieved from

https://www.selfleadership.com/what-is-self-leadership

 Franko, A. (2018). What is Self-Leadership and Why Do You Need It? Retrieved
from https://amyfranko.com/self-leadership-need/

 Browning, M. (2018). Self-Leadership: Why It Matters. Retrieved from

http://nwlink.com/~donclark/leader/servant_leadership.html

 Lolly Daskal. (May 7, 2018). We Cannot Lead Others Without First Leading
From Within. [Video]. YouTube. https://www.youtube.com/watch?
v=HGIw1G7Kpgk

 Practical Psychology. (Dec 31, 2018). How to Establish Yourself as a Leader - 9

Leadership Tactics. [Video]. YouTube. https://www.youtube.com/watch?
v=R2qu_j6GAG8

 LearningREADefined. (Dec 16, 2016). How To Be A Leader - The 7 Great

Leadership Traits. [Video]. YouTube. https://www.youtube.com/watch?
v=2lEp4TVpxgA

 Richard Rierson. (Jul 15, 2014). What Is Leadership? [Video]. YouTube.

https://www.youtube.com/watch?v=zpNWDekfGog

 Alex Lyon. (Sep 18, 2017). Leadership Styles Autocratic Democratic Laissez-
Faire. [Video]. YouTube. https://www.youtube.com/watch?
v=1AZMiq6Mg-k

 Alex Lyon. (Feb 12, 2017). Management vs Leadership. [Video]. YouTube.

https://www.youtube.com/watch?v=Tddlkly1cC0

STAY MOTIVATED!
Here are some leadership quotes to inspire
you.

JOHN
MAXWELL
"Leadership can be
acquired."
"Leadership is not an exclusive
club "
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"The pessimist complains about the wind. The
optimist expects it to change. The leader
adjusts the sails.”
"Leaders are made, they are not
born. "
"Leadership and learning are indispensable to each
other."
JOHN F. KENNEDY

FUNDAMENTALS OF MANAGEMENT 2
LEARNING OUTCOMES
At the end of this chapter, you will be able to:

 explain the basic concept of management;

 distinguish each functions, process, and approaches of management; and
 perform time and self-management strategy.

Before diving in into the discussions, let’s search out your pre-conceived ideas about
management.

1. When you hear the word “management”, what comes first to your minds?
__________________________________________________________________
______________________________________________________________.

2. Have you ever encountered the following? If so, what do you know about them?
a. Vision: ____________________________________________________
b. Mission: ____________________________________________________
c. Goals: ____________________________________________________
d. Objectives: __________________________________________________

LESSON 6
BASIC CONCEPT OF MANAGEMENT
 What is MANAGEMENT?

- Management is a distinct ongoing process of allocating inputs of an organization

(human and economic resources) by typical managerial functions (planning,

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organizing, directing and controlling) for the purpose of achieving stated
objectives, viz., output of goods and services desired by its customers
(environment).

- According to Harold Koontz and Heinz Weihrich, Management is the process

of designing and maintaining an environment in which individuals, working
together in groups, efficiently accomplish selected aims.

- According to Robert L. Trewelly and M. Gene Newport, Management is

defined as the process of planning, organizing, actuating and controlling an
organization’s operations in order to achieve coordination of the human and
material resources essential in the effective and efficient attainment of
objectives.

- According to Kreitner, “Management is the process of working with and through

others to effectively achieve organizational objectives by efficiently using limited
resources in the changing environment.

 The following definitions are derived from principal ideas of any SCHOOL OF
MANAGEMENT THOUGHT:

- Functional school sees management as a process of planning, organizing,

directing and controlling.

- Behavioral school is not interested in the process only but rather in the
way the process affects the organization, i.e., with and through personnel or
human resources.

- Quantitative school wants to improve the quality of decision making, i.e.,

fulfilling the stated objectives of the enterprise.

- Systems approach concentrates on the entire organization, i.e., inputs-

process-outputs.

- Contingency approach emphasizes dynamic nature of management

process in an ever-changing business environment.

From the above definitions, management can be simply defined as a process of

getting things done with the aim of achieving goals effectively and efficiently. Some
important terms in this definition are:
a. Process: Process means the primary functions or activities that management
performs to get things done. These functions are planning, organizing,
staffing, directing and controlling.

b. Effectiveness: Effectiveness is concerned with the end result. It basically

means finishing the given task. Thus Effectiveness in management is
concerned with doing the right task, completing activities and achieving goals

c. Efficient: Efficiency means doing the task correctly and with minimum cost.
Management is concerned with the efficient use of input resources which
ultimately reduce costs and lead to higher profits.

 Management AS A PROCESS

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- A process indicates the dynamic nature of management. It also implies that
change is a constant reality of organizational life and management is the
management of change. Lastly, management is regarded as a social process
because it is directly concerned with management of human resources in
order to secure cooperation and teamwork from the people in their
performance.

- There are five parts to a definition of management as a process:

1. Management is Co-Ordination:
- The manager of an enterprise must effectively coordinate all
activities and resources of the organization, namely, men,
machines, materials and money the four M’s of management.

2. Management is a Process:
- The manager achieves proper co-ordination of resources by
means of the managerial functions of planning, organizing,
staffing, directing (or leading and motivating) and controlling.

3. Management is a Purposive Process:

- It is directed toward the achievement of predetermined goals or
objectives. Without an objective, we have no destination to reach
or a path to follow to arrive at our destination, i.e., a goal, both
management and organization must be purposive or goal-
oriented.

4. Management is a Social Process:

- It is the art of getting things done through other people.

5. Management is a Cyclical Process:

- It represents planning-action-control-re-planning cycle, i.e., an
ongoing process to attain the planned goals.

 CHARACTERISTICS OF MANAGEMENT

Management is a goal-oriented process

 An organization has a set of basic goals which are the basic reason for its
existence. Management unites the efforts of different individuals in the
organization towards achieving these goals.

Management is all pervasive

 The activities involved in managing an enterprise are common to all
organizations whether economic, social or political.

Management is multidimensional:
 Management is a complex activity that has three main dimensions:
a. Management of work: All organizations exist for the performance of
some work. Management translates this work in terms of goals to be
achieved and assigns the means to achieve it.

b. Management of people: Human resources or people are an

organization’s greatest asset. Managing people has two dimensions:

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 it implies dealing with employees as individuals with diverse
needs and behavior;
 it also means dealing with individuals as a group of people.
The task of management is to make people work towards
achieving the organization’s goals, by making their strengths
effective and their weaknesses irrelevant.

Management of operations:
 It requires a production process which entails the flow of input material and
the technology for transforming this input into the desired output for
consumption

Management is a continuous process:

 The process of management is a series of continuous, composite, but
separate functions (planning, organizing, directing, staffing and controlling).
These functions are simultaneously performed by all managers all the time.

Management is a group activity:

 An organization is a collection of diverse individuals with different needs.
Management should enable all its members to grow and develop as needs
and opportunities change

Management is a dynamic function:

 Management is a dynamic function and has to adapt itself to the changing
environment. In order to be successful, an organization must change itself
and its goals according to the needs of the environment.

Management is an intangible force:

 Management is an intangible force that cannot be seen but its presence can
be felt in the way the organization functions.

TAKEAWAYS Come up with your own definition of management base

on the concepts discussed above. Use guide questions below.

THE 2 W’s AND 1 H

 WHAT are being managed? __________________________________________

 WHY they are being managed? _______________________________________
 HOW they are managed? ____________________________________________

Complete the sentence below base from your answers above.

 Management is the (how) ________________________________________
________________________________________________________________
of (what) ________________________________________________________
to (why) ________________________________________________________.

 THEORIES AND PRINCIPLES OF MANAGEMENT

Scientific Management (Frederick Taylor)

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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.

Henry Fayol’s 14 Principles

1. Division of Work
- This principle of management is based on the theory that if workers are
given a specialized task to do, they will become skillful and more efficient in
it than if they had a broader range of tasks. Therefore, a process where
everyone has a specialized role will be an efficient one.

2. Authority
- This principle looks at the concept of managerial authority. It looks at how
authority is necessary in order to ensure that managerial commands are
carried out. If managers did not have authority, then they would lack the
ability to get work carried out. Managers should use their authority
responsibly and ethically.

3. Discipline
- This principle relates to the fact that discipline is needed within an
organization for it to run effectively. Organizational rules, philosophies, and
structures need to be met. In order to have disciplined workers, managers
must build a culture of mutual respect and motivation.

4. Unity of command
- There should be a clear chain of command in place within an organization.
An employee should know exactly whose instructions to follow.

5. Unity of direction
- Work should be organized in a way that means employees are working in
harmony toward a shared objective or goal using a shared method or
procedure.

6. Subordination individual interests to the collective interests

- The interests of the organization as a whole should take precedence over
the interests of any individual employee or group of employees. This
encourages a team spirit and collective mentality of all for one and one for
all.

7. Remuneration
- In order to motivate and be fair to employees, they should be paid a
reasonable rate for the work they carry out. An organization that underpays
will struggle to attract quality workers who are motivated.

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8. Centralization
- This principle relates to whether decisions should be made centrally, as in
from the top down, or in a more democratic way, from the bottom up.
Different decision making processes are appropriate for different types of
decisions.

9. Scalar chain
- This relates to the principle of a clear chain of communication existing
between employees and superiors. The chain should be respected, unless
speedy communication is vital, in which case the chain may be bypassed if
all parties consent.

10. Order
- This relates to the proper use of resources and their effective deployment
in a structured fashion.

11. Equity
- Managers should behave ethically towards those they manage. Almost
every organization in the modern world will have a written set of policies
and procedures which will outline exactly what is expected from staff at all
levels.

12. Stability of tenure of personnel

- It is seen as desirable within an organization to have a low staff turnover
rate. This is due to the benefits that come with having experienced staff
and the time and expense needed to train new ones. There should be a
clear and efficient method of filling any staff vacancies that arise.

13. Initiative
- Employees that have an input as to how to best do their job are likely to
feel more motivated and respected. Many organizations place a great deal
of emphasis on listening to the concerns of staff.

14. Morale
- Keeping a high level of morale and team spirit is an essential part of having
the most productive organization possible. Happy and motivated employees
are far more likely to be productive and less absent.

Elton Mayo’s Hawthorne Study

- The Hawthorne studies showed that people’s work performance is dependent on
social issues and job satisfaction, and that monetary incentives and good working
conditions are generally less important in improving employee productivity than
meeting individuals’ need and desire to belong to a group and be included in
decision making and work.

- Researchers concluded that the employees worked harder because they thought
they were being monitored individually. Researchers hypothesized that choosing
one’s own coworkers, working as a group, being treated as special (as evidenced
by working in a separate room), and having a sympathetic supervisor were the
real reasons for the productivity increase.

Harold Koontz Management Theory Jungle

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- From the early to the late 1960’s, many new schools of and approaches to
management theory and knowledge surfaced; so many that Koontz coined the
term “Management Theory Jungle” to refer to these.

- The following are the current approaches to Management Theory and Science:
1. The empirical or case approach
- It is based on the premise that students and practitioners will
understand the field of management and somehow come to know how
to manage effectively by studying managerial successes and failures in
various individual cases.

2. The interpersonal behavior approach

- This approach is apparently based on the thesis that managing
involves getting things done through people, and that therefore the
study of management should be centered on interpersonal relations.
Their focus is on the individual, and his or her motivations as a socio-
psychological being.

3. The group behavior approach

- It is concerned primarily with behavior of people in groups rather than
with interpersonal behavior. Its emphasis is on group behavior
patterns.
4. The cooperative social system approach
- A modification of the interpersonal and group behavior approaches has
been the focus of some behavioral scientists on the study of human
relationships as cooperative social systems.

5. The sociotechnical systems approach

- Social and technical systems must be considered together and that a
major task of a manager is to make sure that these two systems are
made harmonious.

6. The systems approach

- It is the practice of considering the environmental, psychological,
physical, and informational facets of manager’s job as a whole system
rather than as a collection of unrelated parts.

7. The decision theory approach

- This approach to management theory and science has apparently been
based on the belief that, because it is a major task of managers to
make decisions, we should concentrate on decision making.

8. The mathematical or "management science" approach

- The primary focus of this approach is the mathematical model, since,
through this device, problems - whether managerial or other - can be
expressed in basic relationships and, where a given goal is sought, the
model can be expressed in terms which optimize that goal.

9. The contingency or situational approach

- This approach emphasizes the fact that what managers do in practice
depends on a given set of circumstances – the situation.

10. The managerial roles approach

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- Essentially this approach is to observe what managers actually do and
from such observations come to conclusions as to what managerial
activities (or roles) are.

11. The operational approach

- It attempts to draw together the pertinent knowledge of management
by relating it to the functions of managers. It recognizes that there is a
central core of knowledge about managing that exists only in
management: such matters as line and staff, departmentation, the
limitations of the span of management, managerial appraisal, and
various managerial control techniques involve concepts and theory
found only where managing is involved.

Douglas McGregor’s Theory X and Theory Y

- These theories refer to two management styles: the authoritarian (Theory X) and
participative (Theory Y).

- In an organization where team members show little passion for their work,
leaders are likely to employ the authoritarian style of management. But if
employees demonstrate a willingness to learn and are enthusiastic about what
they do, their leader is likely to use participative management.

- Theory X holds a pessimistic view of employees in the sense that they cannot
work in the absence of incentives. Theory Y, on the other hand, holds an
optimistic opinion of employees. The latter theory proposes that employees and
managers can achieve a collaborative and trust-based relationship.

QUIZZER
Let’ see how many points you can earn from this quiz! SCORE: ______
MULTIPLE CHOICES: Choose the correct answer from the given choices.

1. Which of the following statements describes the Scientific Management Theory?

A. A clear division of labor and carefully developed company objectives
B. Finding the most effective way to complete each and every task
C. 14 principles which created the basis for strong, successful companies
D. The belief that workers are inherently lazy and need to be coerced into
performing
2. This theory proposes that businesses, like the human body, consists of multiple
components that work harmoniously so that the larger system can function
optimally.
A. Situational management
B. Contingency Management
C. Systems Management
D. Scientific Management
3. The main concept behind this theory is that no one management approach suits
every organization.
A. Contingency Management
B. Systems Management
C. Theory Y
D. Theory X
4. Which of the following statements the theory X of McGregor applied?

Page 30 of 65
A. In an organization where team members show little passion for their work
B. Employees and managers can achieve a collaborative and trust-based
relationship.
C. When job satisfaction is high
D. When work performance is high
5. According to this theory, money was the key incentive for working.
A. Situational management
B. Contingency Management
C. Systems Management
D. Scientific Management

MANAGEMENT is doing things KEY ANSWERS

1. A
RIGHT; 2. C
3. A
LEADERSHIP is doing RIGHT 4. A
THINGS 5. D

PETER DRUCKER

 THE MANAGEMENT FUNCTIONS

- There are basically five primary functions of management. These are: Planning,
Organizing, Staffing, Directing, Controlling

The controlling function comprises

coordination, reporting, and budgeting, and
hence the controlling function can be broken
into these three separate functions. Based
upon these seven functions, Luther Gulick
coined the word POSDCORB, which generally
represents the initials of these seven functions
i.e. P stands for Planning, O for Organizing, S
for Staffing, D for Directing, Co for Co-
ordination, R for reporting & B for Budgeting.

Planning
- It is the determination of objectives Figure 1: by Dreamstime.com
and formulation of plans, strategies, programs,
policies, procedures and standards needed to achieve the desired organization
objectives.

- It deals with chalking out a future course of action & deciding in advance the
most appropriate course of actions for achievement of pre-determined goals.
According to KOONTZ, “Planning is deciding in advance - what to do, when to do
& how to do. It bridges the gap from where we are & where we want to be”.

Steps in Planning Function

1. Establishment of objectives
 Planning starts with the setting of goals and objectives to be
achieved.
 Objectives should be stated in a clear, precise and unambiguous
language.

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 As far as possible, objectives should be stated in quantitative terms.
Hence objectives should be practical, acceptable, workable and
achievable.

2. Establishment of Planning Premises or Assumptions

 Planning premises are the assumptions about the lively shape of
events in future. They serve as a basis of planning.
 It is concerned with determining where one tends to deviate from
the actual plans and causes of such deviations.

3. Choice of alternative course of action

 When forecasts are available and premises are established, a
number of alternative course of actions have to be considered.
 For this purpose, each and every alternative will be evaluated by
weighing its pros and cons in the light of resources available and
requirements of the organization.

4. Formulation of derivative plans

 Derivative plans are the sub plans or secondary plans which help in
the achievement of main plan.
 These detail plans include policies, procedures, rules, programs,
budgets, schedules, etc.

 Derivative plans indicate time schedule and sequence of

accomplishing various tasks.

5. Securing Co-operation
 After the plans have been determined, it is necessary rather
advisable to take subordinates or those who have to implement
these plans into confidence.

6. Follow up/Appraisal of plans

 After the selected plan is implemented, it is important to appraise
its effectiveness.

 This enables the management to correct deviations or modify the

plan.

Organizing
- It is the process of bringing together physical, financial and human resources and
developing productive relationship amongst them for achievement of
organizational goals.

- According to Henry Fayol, “To organize a business is to provide it with everything

useful or its functioning i.e. raw material, tools, capital and personnel’s”. To
organize a business involves determining & providing human and non-human
resources to the organizational structure.

Organizing steps
1. Identification of activities
 All the activities which have to be performed in a concern have to
be identified first. Then, these activities have to be grouped and
classified into units.

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2. Departmentally organizing the activities
 In this step, the manager tries to combine and group similar and
related activities into units or departments. This organization of
dividing the whole concern into independent units and departments
is called departmentation.

3. Classifying the authority

 Once the departments are made, the manager likes to classify the
powers and its extent to the managers. This activity of giving a
rank in order to the managerial positions is called hierarchy.

4. Co-ordination between authority and responsibility

 Each individual is made aware of his authority and he/she knows
whom they have to take orders from and to whom they are
accountable and to whom they have to report. A clear
organizational structure is drawn and all the employees are made
aware of it.

Types of Organization
1. Line organization
 It is the oldest and simplest method of administrative organization.
According to this type of organization, the authority flows from top
to bottom in a concern. The line of command is carried out from
top to bottom.

2. Line and staff organization

 It is a modification of line organization and it is more complex than
line organization. According to this administrative organization,
specialized and supportive activities are attached to the line of
command by appointing staff supervisors and staff specialists who
are attached to the line authority.

3. Matrix Organization

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 A matrix organization is a structure in which there is more than one
line of reporting managers. Effectively, it means that the employees
of the organization have more than one boss!

Principles of Organizing

1. Principle of Specialization
 According to the principle, the whole work of a concern should be
divided amongst the subordinates on the basis of qualifications,
abilities and skills.

2. Principle of Functional Definition

 According to this principle, all the functions in a concern should be
completely and clearly defined to the managers and subordinates.

3. Principles of Span of Control/Supervision

 According to this principle, span of control is a span of supervision
which depicts the number of employees that can be handled and
controlled effectively by a single manager.

4. Principle of Scalar Chain

 Scalar chain is a chain of command or authority which flows from
top to bottom. With a chain of authority available, wastages of
resources are minimized, communication is affected, overlapping of
work is avoided and easy organization takes place.

5. Principle of Unity of Command

 It implies one subordinate-one superior relationship. Every
subordinate is answerable and accountable to one boss at one time.
This helps in avoiding communication gaps and feedback and
response is prompt.

Staffing

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- It is the function of manning the organization structure and keeping it manned. It
involves manning the organization structure through proper and effective
selection, appraisal and development of the personnel to fill the roles assigned to
the employers/workforce.

- According to Theo Haimann, “Staffing pertains to recruitment, selection,

development and compensation of subordinates.”

Steps involved in Staffing

1. Manpower requirements
 The very first step in staffing is to plan the manpower inventory
required by a concern in order to match them with the job
requirements and demands. Therefore, it involves forecasting and
determining the future manpower needs of the concern.

2. Recruitment
 Once the requirements are notified, the concern invites and solicits
applications according to the invitations made to the desirable
candidates.

3. Selection
 This is the screening step of staffing in which the solicited
applications are screened out and suitable candidates are appointed
as per the requirements.

4. Orientation and Placement

 Once screening takes place, the appointed candidates are made
familiar to the work units and work environment through the
orientation programs. placement takes place by putting right man
on the right job.

5. Training and Development

 Training is a part of incentives given to the workers in order to
develop and grow them within the concern. Along with it, the
workers are developed by providing them extra benefits of in-depth
knowledge of their functional areas. Development also includes
giving them key and important jobs as a test or examination in
order to analyze their performances.

6. Remuneration
 It is a kind of compensation provided monetarily to the employees
for their work performances. This is given according to the nature
of job- skilled or unskilled, physical or mental, etc.

7. Performance Evaluation
 In order to keep a track or record of the behavior, attitudes as well
as opinions of the workers towards their jobs. For this regular
assessment is done to evaluate and supervise different work units
in a concern. It is basically concerning to know the development
cycle and growth patterns of the employees in a concern.

8. Promotion and transfer

 Promotion is said to be a non-monetary incentive in which the
worker is shifted from a higher job demanding bigger

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responsibilities as well as shifting the workers and transferring them
to different work units and branches of the same organization.

Directing
- It is said to be a process in which the managers instruct, guide and oversee the
performance of the workers to achieve predetermined goals. Directing is said to
be the heart of management process.

- Planning, organizing, staffing have got no importance if direction function does

not take place.

- Directing initiates action and it is from here actual work starts.

Importance of Directing Function

1. It Initiates Actions
 Directions is the function which is the starting point of the work
performance of subordinates. It is from this function the action
takes place, subordinates understand their jobs and do according to
the instructions laid.

2. It Ingrates Efforts
 Through direction, the superiors are able to guide, inspire and
instruct the subordinates to work. For this, efforts of every
individual towards accomplishment of goals are required.

3. Means of Motivation
 A manager makes use of the element of motivation here to improve
the performances of subordinates. This can be done by providing
incentives or compensation, whether monetary or non - monetary,
which serves as a “Morale booster” to the subordinates.

4. It Provides Stability
 Stability and balance in concern becomes very important for long
term sun survival in the market. This can be brought upon by the
managers with the help of four tools or elements of direction
function - judicious blend of persuasive leadership, effective
communication, strict supervision and efficient motivation.

5. Coping up with the changes

 Adaptability with changing environment helps in sustaining planned
growth and becoming a market leader. It is directing function which
is of use to meet with changes in environment, both internal as
external.

6. Efficient Utilization of Resources

 The resources can be utilized properly only when less of wastages,
duplication of efforts, overlapping of performances, etc. doesn’t
take place. Through direction, the role of subordinates become
clear as manager makes use of his supervisory, the guidance, the
instructions and motivation skill to inspire the subordinates. This
helps in maximum possible utilization of resources of men,
machine, materials and money which helps in reducing costs and
increasing profits.

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Roles of a Supervisor
1. Planner
2. Manager
3. Guide and Leader
4. Mediator
5. Inspector
6. Counselor

Controlling
- Controlling consists of verifying whether everything occurs in conformities with
the plans adopted, instructions issued and principles established. Controlling
ensures that there is effective and efficient utilization of organizational resources
so as to achieve the planned goals.

- According to Brech, “Controlling is a systematic exercise which is called as a

process of checking actual performance against the standards or plans with a
view to ensure adequate progress and also recording such experience as is
gained as a contribution to possible future needs.”

- According to Donnell, “Just as a navigator continually takes reading to ensure

whether he is relative to a planned action, so should a business manager
continually take reading to assure himself that his enterprise is on right course.”

- Controlling has got two basic purposes: It facilitates co-ordination and It helps in
planning.

Process of Controlling
1. Establishment of standards
 Standards are the plans or the targets which have to be achieved in
the course of business function. They can also be called as the
criterions for judging the performance.

2. Measurement of performance
 Finding out deviations becomes easy through measuring the actual
performance. It is also sometimes done through various reports like
weekly, monthly, quarterly, yearly reports.

3. Comparison of actual and standard performance

 Deviation can be defined as the gap between actual performance
and the planned targets. The manager has to find out two things
here- extent of deviation and cause of deviation.

4. Taking remedial actions

 Once the causes and extent of deviations are known, the manager
has to detect those errors and take remedial measures for it.

E-DISCUSSION / PARTICIPATION 3
MANAGEMENT START-UPS
Scenario:
You are the newly appointed Chief of Police at your Municipality and you are tasked to
create a team to draft a plan for the peace and order of your municipality.

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Step 1: Create your team
Choose 4 from your classmates to form a group.

Step 2: Set Desires/Goals

What do you want your municipality to become in relation to peace and order? List as
many as you can. From your list, select 5.
Desire 1: _______________________________
Desire 2: _______________________________
Desire 3: _______________________________
Desire 4: _______________________________
Desire 5: _______________________________

Step 3: Set Objectives

Come up with specific objectives from your goals/desires above. Objectives should be
SMART (Specific, Measurable, Attainable, Realistic, Time-bound). See example below and
follow format.

Example:
Desire: I want ensure safety

Specific objective:

I will reduce + industrial accidents + by 10% + by June 1

--------------- -------------------------- ---------------- ------------
(action verb) (targeted area) (measurement) (target date)

Desires/Goals Specific Objectives

(Action verb + Target area + Measurement + Target date)
1.

2.

3.

4.

5.

Step 4: Divide
Large tasks should be divided into smaller tasks to get the job done efficiently. Choose
one among the objectives above and come up with 5 specific tasks to accomplish it. See
example below.

Example:

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OBJECTIVE: I will increase force multipliers in crime prevention by 20% by the end
2020.
Steps Assigned to Assessment Timeline
Measures
Establish Women’s Brigade Police Community Crafted August to
and recruit volunteers. Relations Division Memorandum of September
Agreement 2020

OBJECTIVE:

Steps Assigned to Assessment Timeline

Measures
1.

2.

3.

4.

5.

LESSON 7
SELF MANAGEMENT

 WHAT IS SELF-MANAGEMENT?

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 It is also referred to as “self-control” or “self-regulation,”. It is the ability to
regulate one’s emotions, thoughts, and behaviors effectively in different
situations. This includes managing stress, delaying gratification, motivating
oneself, and setting and working toward personal goals.

 Self-management is the ability to prioritize goals, decide what must be done, and
be accountable to complete the necessary actions. Comprehensive self-
management involves four realms: physical, mental, social, and spiritual.

 Daniel Goleman and his co-authors define self-management through these six
traits: self-control, transparency, adaptability, achievement, initiative, and
optimism.

 Self-management is the very important thing which will help you during all life. It
helps to achieve the goals, manage time, and organize life. While you work on
yourself, develop motivation; comprehend things, you want to do, and you will
be powerful and strong.

What are SELF-MANAGEMENT SKILLS?

 Self-management skills are the abilities that allow people to control their
thoughts, feelings and actions. If you have strong self-management skills, you’re
able to set goals independently and take the initiative to achieve them.
Purposeful self-management can help you direct the trajectory of your career and
ensure you seek opportunities that get you closer to your goals.

 Self-management skills focus on personal responsibility in the following areas:

1. Organization
If you are well-organized, you’re able to plan, prioritize and execute
important activities, helping you self-manage your essential workplace
responsibilities.

2. Goal setting
Goal setting is the ability to determine what you want to achieve in a
clear and well-defined manner. This skill is necessary to maintain
productivity in the workplace because it enables you to manage your time
and actions.

3. Time management
Strong time management skills allow you to prioritize tasks, avoid
distractions and maintain focus. Effective time management in the
workplace helps with setting and meeting deadlines, working on one
thing at a time and delegating responsibilities appropriately

4. Self-motivation
Self-motivation is the ability to take initiative and finish tasks you know
should be completed. When you’re self-motivated, you anticipate and
plan for potential tasks needed to achieve more significant assignments
or to solve ongoing issues.

5. Stress management
Stress management can take many forms, from maintaining a healthy
diet and exercise regimen to proactively engaging in activities like
meditation or journaling about your experiences. Proactively managing
workplace stressors can help you remain calm on the job. Handling stress

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before it becomes an issue allows you to focus on your goals and make
steady progress forward.

6. Accountability
Accountability is the act of taking personal ownership of your thoughts
and actions. When you maintain responsibility, you’re better equipped to
evaluate your work and determine the best way to proceed.

HOW to improve self-management skills?

 Assess your strengths.
- Determine what professional tasks you’re best at, and focus on ways to
maximize your abilities in these areas. Understanding your strengths
helps you manage your career path in a way that makes the most of skills
like coding, technical writing, graphic design or customer service.

 Prioritize your responsibilities.

- Clearly define which responsibilities are most important, and focus your
attention on the most critical jobs, avoiding distractions that draw you
away from what matters.

 Develop organizational systems.

- Find effective methods that help you manage your time, streamline your
daily activities and keep important items in easy-to-find places. This step
might include using an agenda book, setting up a time-management app
on your phone or creating a filing system at your desk.

 Create strict deadlines.

- Assign deadlines to each stage of a project, and maintain your schedule.
Hold yourself accountable for getting tasks done on or ahead of schedule
by committing to putting in more hours when needed to reach your self-
designated checkpoints.

 Perform one task at a time.

- Focus your time, energy and abilities on a single task at any given
moment. Complete each task fully before moving on to another so that
you’re managing your time and effort efficiently.

 Practice patience.
- Maintain a sense of calm so you can think clearly and objectively. Be
considerate of others, and try to empathize with their needs and
experiences to more effectively help them.

 Take care of your health and wellness.

- Maintain a proper diet, exercise regularly, care for your personal hygiene
and actively focus on lowering your stress levels. Take breaks to stretch
and clear your mind, keep healthy snacks at work and look for
opportunities for physical activity, such as a brisk walk on your lunch
hour.

 Evaluate your progress.

- Objectively assess the progress you’ve made toward your goals by setting
checkpoints along the way and tracking your accomplishments to see if
you’ve met them. Ask a mentor for assistance to get a well-rounded

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appraisal. Use this feedback to improve your self-management going
forward.

ASSIGNMENT 3
LIST OF ROLES
Step 1
List all of the roles you actively play in your life, except (for now) your role as a student.
Examples of these roles are as Father/Mother, Husband/Wife, Brother/Sister,
Son/Daughter, Friend, Employee, Pet Owner, Hobby/Sports Enthusiast, etc.

Step 2
Estimate in hours each role you spend in a week and determine a grand total, including
the time that you sleep. Sum the total hours.

My roles/works Time Spent in a weekly basis

(Aside from being a student)
1. Sleeping

2.

3.

4.

5.

6.

7.

8.

Step 3
Next, realistically estimate in hours you want to spend in a week as a student. List your
time commitments to your role as a student like doing assignment, reading, etc. Add this
time to your previous weekly total of hours assigned to roles.

My roles/works Time Spent in a weekly basis

(As a student)
1.

2.

3.

4.

5.

6.

7.

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Step 4
Analyze which roles you might be willing to cut back or drop or reduce time.

My roles/works Revised time Spent in a weekly basis

(As a student)
1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

LESSON 8
TIME MANAGEMENT

 What is TIME MANAGEMENT?

 Time management is the ability to use your time productively and efficiently. You
could also think of it as the art of having time to do everything that you need,
without feeling stressed about it.

 8 reasons time management is crucial:

1. Time is limited
2. You can accomplish more with less effort
3. Improved decision-making ability
4. Become more successful in your career
5. Learning opportunities are everywhere
6. Reduce stress
7. Free time is necessary
8. Self-discipline is valuable.

 There are three MAJOR ASPECTS OF TIME MANAGEMENT:

1. Setting Priorities.
- Between all of your activities, whether it is personal or business
related, many are easily distinguishable between whether they are a
priority or not.

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- We can distinguish by understanding the difference between urgent
and important.
o ‘Urgent’ tasks demand your immediate attention, but
whether you actually give them that attention may or may not
matter.

o 'Important' tasks matter, and not doing them may have

serious consequences for you or others.

Example:
Answering the phone is urgent.
Going to the dentist regularly is important
Picking your children up from school is both urgent and important.
Reading funny emails or checking Facebook is neither urgent nor
important.

2. Setting Deadlines
- Deadlines are a great way to increase productivity and ensure that
your tasks are being completed on time. Not setting deadlines will
encourage procrastination, the opposite of time management, and
lead to accomplishing very little. Deadlines also eradicate the risk of
cramming.

3. Reducing Time Spent on Non-priorities

- While it can be very helpful to take breaks or enjoy some free time,
it’s very important to reduce the time spent on those non-priority
activities during hours you should be working. This leads to better
time management and increased productivity.
TIPS FOR EFFECTIVE TIME MANAGEMENT

 Set goals correctly

- Set goals that are achievable and measurable. Use the SMART method
when setting goals. In essence, make sure the goals you set are
Specific, Measurable, Attainable, Relevant, and Timely.

 Prioritize wisely
- Prioritize tasks based on importance and urgency

 Set a time limit to complete a task

- Setting time constraints for completing tasks helps you be more
focused and efficient. Making the small extra effort to decide on how
much time you need to allot for each task can also help you recognize
potential problems before they arise. That way you can make plans for
dealing with them.

 Take a break between tasks

- When doing a lot of tasks without a break, it is harder to stay focused
and motivated. Allow some downtime between tasks to clear your head
and refresh yourself. Consider grabbing a brief nap, going for a short
walk, or meditating.

 Organize yourself
- Utilize your calendar for more long-term time management. Write down
the deadlines for projects, or for tasks that are part of completing the

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overall project. Think about which days might be best to dedicate to
specific tasks.

 Remove non-essential tasks/activities

- It is important to remove excess activities or tasks. Determine what is
significant and what deserves your time. Removing non-essential
tasks/activities frees up more of your time to be spent on genuinely
important things.

 Plan ahead
- Make sure you start every day with a clear idea of what you need to do
– what needs to get done THAT DAY. Consider making it a habit to, at
the end of each workday, go ahead and write out your “to-do” list for
the next workday. That way you can hit the ground running the next
morning.

Implications of POOR TIME MANAGEMENT

 Poor workflow
- The inability to plan ahead and stick to goals means poor efficiency. For
example, if there are several important tasks to complete, an effective
plan would be to complete related tasks together or sequentially.
However, if you don’t plan ahead, you could end up having to jump
back and forth, or backtrack, in doing your work. That translates to
reduced efficiency and lower productivity.

 Wasted time
- Poor time management results in wasted time. For example, by talking
to friends on social media while doing an assignment, you are
distracting yourself and wasting time.
 Loss of control
- By not knowing what the next task is, you suffer from loss of control of
your life. That can contribute to higher stress levels and anxiety.

 Poor quality of work

- Poor time management typically makes the quality of your work suffer.
For example, having to rush to complete tasks at the last minute
usually compromises quality.

 Poor reputation
- If clients or your employer cannot rely on you to complete tasks in a
timely manner, their expectations and perceptions of you are adversely
affected. If a client cannot rely on you to get something done on time,
they will likely take their business elsewhere.

ASSIGNMENT 4
MY PRIORITY MATRIX
Using the priority matrix below can help you to organize your tasks into their appropriate
categories.

THE PRIORITY MATRIX

(Eisenhower Matrix)

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High Importance
DO FIRST DO NEXT
(OR SCHEDULE)
How important is the task?

Low Importance

DO LATER DON’T DO
(DELEGATE)

High Urgency Low Urgency

How urgent is the task?

Step 1
List all the tasks (assignment, quizzes, activities) that you need to accomplish 7 days
from now.

Step 2
Use priority matrix to create a “to do list” of your tasks as a student.
 ‘Urgent’ tasks - tasks needs doing within the next 48 hours.
 Of the urgent tasks list your tasks in order of importance.
 Of the non-urgent tasks, list them in order of importance.

Step 3
Now use the answers to these questions to allocate your tasks to the boxes in the
priority matrix. Each box should contain no more than about five tasks.
THE PRIORITY MATRIX
(Eisenhower Matrix)
DO FIRST DO NEXT
(OR SCHEDULE)
1. 1.
How important is the task?

2. 2.
High Importance

3. 3.

4. 4.

5. 5.

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DO LATER DON’T DO
(DELEGATE)
1. 1.

2. 2.
Low Importance

3. 3.

4. 4.

5. 5.

High Urgency Low Urgency

How urgent is the task?

Step 4
Finally, do the work and observe if there are changes in number of accomplishments
from the way you did before.

Step 5
After applying the “Priority Matrix”, answer the following questions to find your “optimum
normal level”.
? When was your most and least productive period/time? (describe the
period/time)
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
_________________________________________________________.
? In your honest estimation, how few tasks (per day) do you need to keep you
productive and how many different tasks will start to cause you to lose focus?
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
_________________________________________________________.
? What does this experience tell you about the number and magnitude of tasks
that suits you per day?
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
_________________________________________________________.

Page 47 of 65
QUIZZER
Let’ see how many points you can earn from this quiz! SCORE: ______
MULTIPLE CHOICES: Choose the best answer and encircle the letter that corresponds
to your answer
1. The process of management involves the functions of planning, _________,
leading, and controlling.
A. Accounting C. Innovating
B. Creating D. Organizing
2. Productivity is the measure of quantity and ________ of work produced, relative
to the cost of inputs.
A. Quality C. Authority
B. Cost D. Motivation
3. When a team leader clarifies desired work targets and deadlines for a work team,
he or she is fulfilling the management function of;
A. Planning C. Controlling
B. Organizing D. Staffing
4. Performance efficiency is a measure of the ___________ associated with task
accomplishment.
A. Resource costs C. Product quality
B. Goal specificity D. Product quantity
5. Objectives should be SMART. S stands for;
A. Solution C. Smart
B. Specific D. Simple
6. ___________ is the making optimal use of available time.
A. Self-Leading C. Time Management
B. Self-managing D. Goal setting
7. Failing to manage your time can lead to some consequences, like;
A. Less stress
B. Greater productivity and efficiency
C. Missed deadlines
D. A better professional reputation
8. What is one common time management mistake?
A. Procrastination C. Taking Breaks
B. Manage Distractions D. Scheduling Tasks
9. Time management is important to...
A. Students only C. Everyone
B. Employees only D. No one
10. A way to avoid distraction is to;
A. Start with the unpleasant tasks first
B. Keep the TV on
C. Keep your phone close to you
D. Drink and eat while doing your work
11. Which of the following is a true statement?
A. Time management means always doing more than one task at the same
time.
B. Good time management means never taking breaks.
C. Time management is about planning to get tasks done and doing them.
D. One way to manage your time well is to ignore deadlines and focus on
doing the most fun activities.
12. What is Self-Management?
A. Self-management is the ability to un-prioritize, and not to be accountable
to complete the necessary actions

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B. Self-management is the ability to manage our financial
C. Self-management is the ability to prioritize goals, decide what must be
done, and be accountable to complete the necessary actions.
D. Neither of the choices
13. Why is self-management important?
A. Self-management will help you contribute to money, love and power
B. Self-management will help you contribute to a better work environment
for yourself and your coworkers.
C. Self-management will help you contribute to increase salary, promoted
and many more
D. Neither of the choices

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

REFERENCES

 Sluter, S. (2014). The Management Coach. UK: Hodder & Stoughton Ltd.

 Schemerhorn, J. (2014). Introduction to Management. Singapore: John Wiley &

Sons Ltd.

 Papertyari. (2018). Concept of Management: Definition and Characteristics.

Retrieved from
https://www.papertyari.com/general-awareness/management/concept-
management/
 Diksha, S. (n.d.). Management: Concept, Definition and Process. Retrieved from
https://www.businessmanagementideas.com/management/management-
concept-definition-and-process/4415

 Suess, J. (2015). Power to the People: Why Self-Management Is Important.

Retrieved from https://er.educause.edu/blogs/2015/9/power-to-the-
people-why-self-management-is-important

 Mind Tools. (n.d.). Frederick Taylor and Scientific Management. Retrieved from
https://www.mindtools.com/pages/article/newTMM_Taylor.htm

 LaRocca, B. (2017). Introduction to Self-Management. Retrieved from

https://www.transformingeducation.org/introduction-to-self-
management/

 Juneja, P. (n.d.). Planning Function of Management. Retrieved from

https://www.managementstudyguide.com/planning_function.htm

 Appointment Plus. (2013). What Is the Definition of Time Management?

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Retrieved from https://www.appointmentplus.com/blog/what-is-the-
definition-of-time-management/

 Corporate finance institute. (n.d.). A Brief Guide to Time Management.

Retrieved from
https://corporatefinanceinstitute.com/resources/careers/soft-skills/time-
management-list-tips/
 Appointment Plus. (2015). Why Time Management Is Important. Retrieved from
https://www.appointmentplus.com/blog/why-time-management-is-
important/

 Skills you need. (n.d.). Time Management Skills. Retrieved from

https://www.skillsyouneed.com/ps/time-management.html

 Indeed. (2020). Self-Management Skills: Definition and Examples. Retrieved

from https://www.indeed.com/career-advice/career-development/self-
management-skills

 LinkedIn Learning. (Apr 12, 2014). Management tutorial: What is management?

[Video]. YouTube. https://www.youtube.com/watch?v=9EBlLBenBfw

 Leadership Unleashed. (Feb 27, 2017). Functions of Management. [Video].

YouTube. https://www.youtube.com/watch?v=aWV8w-coyhM

 Joel Obermayer. (Jan 19, 2015). Let's talk about Self-Management. [Video].
YouTube. https://www.youtube.com/watch?v=XjdvqFZkdMM
 CC M. (Oct 23, 2015). Self Managing and Self Management support. [Video].
YouTube. https://www.youtube.com/watch?v=uRQ853sRt0o
 Eudaimonia. (May 9, 2016). Managing Oneself - PETER DRUCKER Animated
Book Summary. [Video]. YouTube. https://www.youtube.com/watch?
v=I9eDntumN5o
 Alux.com. (Apr 2, 2018). 15 Tips To Manage Your Time Better. [Video].
YouTube. https://www.youtube.com/watch?v=GBM2k2zp-MQ
 Jeff Short. (n.d.). The Management Process.mp4. [Video]. YouTube.
https://www.youtube.com/watch?v=9Ir70kcHf-w

DECISION MAKING 3
LEARNING OUTCOMES
At the end of this chapter, you will be able to:

 have greater insight into decision-making processes;

 use that insight to make more effective decisions;
 possess a range of different perspectives on what counts as an ‘effective’
decision; and,
 be better equipped to understand and influence the decision-making processes of
other individuals and groups.

LESSON 9

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DECISION MAKING: BASIC CONCEPTS

 WHAT IS DECISION MAKING?

- It is simply defined the act of choosing between two or more courses of action.

- According to the Oxford Advanced Learner’s Dictionary the term decision making
means - the process of deciding about something important, especially in a group
of people or in an organization.

- Trewatha & Newport defines decision making process as: “Decision-making

involves the selection of a course of action from among two or more possible
alternatives in order to arrive at a solution for a given problem”.

- Decisions can be made through either an intuitive or reasoned process, or a

combination of the two.
 Intuition
- Intuition is using your ‘gut feeling’ about possible courses of action.
It is actually a combination of past experience and your personal
values. It is worth taking your intuition into account, because it
reflects your learning about life. It is, however, not always based on
reality, only your perceptions, many of which may have started in
childhood and may not be very mature as a result.

 Reasoning
- Reasoning is using the facts and figures in front of you to make
decisions. Reasoning has its roots in the here-and-now, and in
facts. It can, however, ignore emotional aspects to the decision,
and in particular, issues from the past that may affect the way that
the decision is implemented.

- Decision-making is an integral part of modern management. Essentially, Rational

or sound decision making is taken as primary function of management.

 7 STEPS TO EFFECTIVE DECISION MAKING

1. Identify the decision
- You realize that you need to make a decision. Try to clearly define the
nature of the decision you must make. This first step is very important.

2. Gather relevant information

- Collect some pertinent information before you make your decision:
what information is needed, the best sources of information, and how
to get it. This step involves both internal and external “work.” Some
information is internal: you’ll seek it through a process of self-
assessment. Other information is external: you’ll find it online, in books,
from other people, and from other sources.

3. Identify the alternatives

- As you collect information, you will probably identify several possible
paths of action, or alternatives. You can also use your imagination and
additional information to construct new alternatives. In this step, you
will list all possible and desirable alternatives.

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4. Weigh the evidence
- Draw on your information and emotions to imagine what it would be
like if you carried out each of the alternatives to the end. Evaluate
whether the need identified in Step 1 would be met or resolved through
the use of each alternative. As you go through this difficult internal
process, you’ll begin to favor certain alternatives: those that seem to
have a higher potential for reaching your goal. Finally, place the
alternatives in a priority order, based upon your own value system.

5. Choose among alternatives

- Once you have weighed all the evidence, you are ready to select the
alternative that seems to be best one for you. You may even choose a
combination of alternatives. Your choice in Step 5 may very likely be
the same or similar to the alternative you placed at the top of your list
at the end of Step 4.

6. Take action
- You’re now ready to take some positive action by beginning to
implement the alternative you chose in Step 5.

7. Review your decision & its consequences

- In this final step, consider the results of your decision and evaluate
whether or not it has resolved the need you identified in Step 1. If the
decision has not met the identified need, you may want to repeat
certain steps of the process to make a new decision. For example, you
might want to gather more detailed or somewhat different information
or explore additional alternatives.

What Can Prevent Effective Decision-Making?

 Not Enough Information

- If you do not have enough information, it can feel like you are making a
decision without any basis.
- Take some time to gather the necessary data to inform your decision,
even if the timescale is very tight. If necessary, priorities your
information-gathering by identifying which information will be most
important to you.

 Too Much Information

- The opposite problem, but one that is seen surprisingly often: having so
much conflicting information that it is impossible to see ‘the wood for the
trees’.

- This is sometimes called analysis paralysis, and is also used as a tactic to

delay organizational decision-making, with those involved demanding
ever more information before they can decide.

- This problem can often be resolved by getting everyone together to

decide what information is really important and why, and by setting a
clear timescale for decision-making, including an information-gathering
stage.

 Too Many People

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- Making decisions by committee is difficult. Everyone has their own views,
and their own values. And while it’s important to know what these views
are, and why and how they are important, it may be essential for one
person to take responsibility for making a decision. Sometimes, any
decision is better than none.

 Vested Interests
- Decision-making processes often founder under the weight of vested
interests. These vested interests are often not overtly expressed, but may
be a crucial blockage. Because they are not overtly expressed, it is hard
to identify them clearly, and therefore address them, but it can
sometimes be possible to do so by exploring them with someone outside
the process, but in a similar position.
- It can also help to explore the rational/intuitive aspects with all
stakeholders, usually with an external facilitator to support the process.

 Emotional Attachments
- People are often very attached to the status quo. Decisions tend to
involve the prospect of change, which many people find difficult.

 No Emotional Attachment
- Sometimes it’s difficult to make a decision because you just don’t care
one way or the other. In this case, a structured decision-making process
can often help by identifying some very real pros and cons of particular
actions, that perhaps you hadn’t thought about before.

IMPORTANCE OF DECISION-MAKING
 Decision-making plays a vital role in management. Decision-making is perhaps
the most important component of a manager’s activities. It plays the most
important role in the planning process. When the managers plan, they decide on
many matters as what goals their organization will pursue, what resources they
will use, and who will perform each required task. When plans go wrong or out of
track, the managers have to decide what to do to correct the deviation.

 The quality of managerial decisions largely affects the effectiveness of the plans
made by them. In organizing process, the manager is to decide upon the
structure, division of work, nature of responsibility and relationships, the
procedure of establishing such responsibility and relationship and so on.

 In co-ordination, decision-making is essential for providing unity of action. In

control, it will have to decide how the standard is to be laid down, how the
deviations from the standard are to be rectified, how the principles are to be
established how instructions are to be issued, and so on.

 So, decision-making is deeply related with management functions and both are
bound up together inseparably. When a manager plans or organizes, orders or
advises, approves or disapproves anything, he will have to move with the process
of decision-making. In all managerial functions, decision-making is an
indispensable accompaniment.

 PRINCIPLES OF DECISION MAKING

 Subject-matter of Decision-making

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- Decisional matters or problems may be divided into groups consisting of
programmed and non-programmed problems. Programmed problems,
being of routine nature, repetitive and well-founded, are easily definable
and, as such, require simple and easy solution.

- Decision arrived in such programmed problems has, thus, a continuing

effect. But in non-programmed problems, there is no continuing effect
because they are non-repetitive, non-routine, and novel. Every event in
such problems requires individual attention and analysis and its decision
is to be arrived at according to its special features and circumstances.

 Organizational Structure
- The organizational structure, having an important bearing on decision-
making, should be readily understood. If the organizational structure is
rigid and highly centralized, decision-making authority will remain
confined to the top management level. This may result in delayed and
confused decision and create suspicion among the employees.

- On the contrary, if the organizational structure provides scope for

adequate delegation and decentralization of authority, decision-making
will be flexible and the decision-making authority will be close to the
operating centers. In such a situation, decision-making will be prompt
and expected to be more effective and acceptable.

 Analysis of the Objectives and Policies

- Proper analysis of the objectives and policies is needed for decision-
making. The clear definition of objectives and policies is the basis that
guides the direction of decision-making. Without this basis, decision-
making will be aimless and unproductive.

 Analytical Study of the Alternatives

- For decision-making, analytical study of all possible alternatives of a
problem with their merits and demerits is essential. This is necessary to
make out a correct selection of decision from among the alternatives.

 Proper Communication System:

- Effective decision-making demands a machinery for proper
communication of information to all responsibility centers in the
organization. Unless this structure is built up, ignorance of decision or ill-
informed decision will result in misunderstanding and loose co-ordination.

 Sufficient Time
- Effective decision-making requires sufficient time. It is a matter of
common experience that it is usually helpful to think over various ideas
and possibilities of a problem for the purpose of identifying and
evaluating it properly. But in no case a decision can be delayed for an
indefinite period, rather it should be completed well in advance of the
scheduled dates.

 Study of the Impact of a Decision

- Decision is intended to be carried out for the realization of the objectives
of the organization. A decision in any particular area may react adversely
in other areas of the organization.

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- As all business activities are inter-related and require co-ordination, it is
necessary that a study and analysis of the impact of any decision should
precede its application.

 Participation of the Decision-maker

- The decision-maker should not only be an observer while others will
perform as per his decision. He should also participate in completing the
work for which decision was taken by him. This experience will help him
in decision-making in future.

- The principle of participation in work of the decision-maker will enable

him to understand whether the decision taken is practical and also guide
him in forthcoming decisional matters.

 Flexibility of Mind
- This is essential in decision-making, because decisions cannot satisfy
everybody. Rigid mental set-up of the decision-maker may upset the
decisions.

- The flexible mental disposition of the decision-maker enables him to

change the decision and win over the co-operation of all the diverse
groups.

 Consideration of the Chain of Actions

- There is a chain relationship in all the activities of any organization.
Different activities are tied up in a chain sequence. Any decision to
change a particular work brings change in other related works also.
Similarly, decision-making also proceeds following the chain of action in
different activities.

- Therefore, before taking a decision one should consider the chain

relationship among different activities.

LESSON 10
DECISION MAKING MODELS

 Have you ever asked yourself if there are tools or guide or procedure that will help
you making decisions? Well, here are some of them.

The Rational/Classical Model

- The rational model is the first attempt to know the decision-making-process. It
is considered by some as the classical approach to understand the decision-
making process.

Features of Classical Model:

 Problems are clear.
 Objectives are clear.

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 People agree on criteria and weights.
 All alternatives are known.
 All consequences can be anticipated.
 Decision makes are rational.
a. They are not biased in recognizing problems.
b. They are capable of processing ail relevant information
c. They anticipate present and future consequences of decisions.
d. They search for all alternatives that maximizes the desired results.

Bounded Rationality Model or Administrative Man Model

- Bounded Rationality model is based on the concept developed by Herbert
Simon. This model does not assume individual rationality in the decision
process. Instead, it assumes that people, while they may seek the best solution,
normally settle for much less, because the decisions they confront typically
demand greater information, time, processing capabilities than they possess.
They settle for “bounded rationality or limited rationality in decisions. This model
is based on certain basic concepts.

 Sequential Attention to alternative solution:

- Normally it is the tendency for people to examine possible solution
one at a time instead of identifying all possible solutions and stop
searching once an acceptable (though not necessarily the best)
solution is found.

 Heuristic:
- These are the assumptions that guide the search for alternatives
into areas that have a high probability for yielding success.

 Satisficing:
- Herbert Simon called this “satisficing” that is picking a course of
action that is satisfactory or “good enough” under the
circumstances. It is the tendency for decision makers to accept the
first alternative that meets their minimally acceptable requirements
rather than pushing them further for an alternative that produces
the best results.
- Satisficing is preferred for decisions of small significance when time
is the major constraint or where most of the alternatives are
essentially similar.

Retrospective decision model (implicit favorite model):

- This decision-making model focuses on how decision-makers attempt to
rationalize their choices after they have been made and try to justify their
decisions. This model has been developed by Per Soelberg.

- The total process is designed to justify, through the guise of scientific rigor, a
decision that has already been made intuitively. By this means, the individual
becomes convinced that he or she is acting rationally and taking a logical,
reasoned decision on an important topic.

The Vroom-Yetton-Jago Decision Model

- Right off the top, this model asks you to think about three specific factors with
regard to the decisions you are facing. Once you think about your upcoming
decisions in reference to these three factors, you will have a much better idea of
how to proceed.

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1. Decision Quality
- Simply put, this is where you think about how important it is to
come up with the right decision. Sure, you always want to make the
right choice, but some circumstances are more important than
others in the context of business as a whole. Committing a large
number of resources to each and every decision you make would be
inefficient, as many decisions just are not important enough to
warrant that kind of investment. Pick and choose your spots and
only invest a large amount of time and energy into the decisions that
are truly going to shape your organizational future.

2. Subordinate Commitment
- Some decisions that you make are going to have a strong impact on
your team, while others will not affect them at all. When thinking
about each decision, consider how much of an affect it is going to
have on your team and others within and around the organization.

3. Time Constraints
- Obviously, the timeline that you have in front of you for a given
decision is going to impact the process that you can use to make
your choice. If you are in no particular rush to make the decision,
there will be plenty of time to include others, conduct research, and
more.

- On the other hand, if the matter if time sensitive, you might not
really have the option of going to others for help. Develop a clear
timeline right up front for your decision and then chart out whether
or not you are going to have time to get input from various areas.

- In order to determine the influence each of these three factors will have on a
decision, Vroom, Yetton, and Jago defined the following eight questions:

 Quality Requirement (QR): How important is the technical quality of

the decision?
 Commitment Requirement (CR): How important is subordinate
commitment to the decision?

 Leader’s Information (LI): Do you (the leader) have sufficient

information to make a high quality decision on your own?

 Problem Structure (ST): Is the problem well structured (e.g., defined,

clear, organized, lend itself to solution, time limited, etc.)?

 Commitment Probability (CP): If you were to make the decision by

yourself, is it reasonably certain that your subordinates would be
committed to the decision?

 Goal Congruence (GC): Do subordinates share the organizational goals

to be attained in solving the problem?

 Subordinate conflict (CO): Is conflict among subordinates over

preferred solutions likely?

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 Subordinate information (SI): Do subordinates have sufficient
information to make a high quality decision?

E-DISCUSSION / PARTICIPATION 4
PEER INTERVIEW
Step 1
Choose your pair from your classmate.

Step 2
Interview each other using the guide questions below. You may translate it in a dialect
your partner best understands.

1. What do you think is the biggest decision you had made in the past?
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
_________________________________________________________.

2. Why did you make the choice that you did?

__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
_________________________________________________________.
3. Did the decision that you made work? Why or Why not?
__________________________________________________________________
__________________________________________________________________
____________________________________________________________.
4. How did that decision affect your life?
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
_________________________________________________________.
5. Would you make that decision again?
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
_________________________________________________________.
Step 3
After the interview, have a self-reflection about the things you learnt from your partner
then answer this question below.

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If you were the one making the decision in behalf of your partner, how would
you do it?
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
_________________________________________________________.

ASSIGNMENT 5
DECISION MAKING PROCESS
 Below is a scenario requiring your decision. Let’s see how you apply the decision
making steps or process to come up with your best decision.

Scenario:

You are alone with your best friend at your best friend’s house. He/she goes to a
drawer in his/her wardrobe and pulls out a sachet of “shabu”. He/she lights up and
invites you to do the same. What do you do?

INDIVIDUAL DECISION MAKING

Step 1
Identify the Decision to be Made

Describe the situation that involves a decision that needs to be made:

_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________

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What is the decision to be made?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
____________________________________________________________________

Why is this decision important to me?

________________________________________________________________________
________________________________________________________________________
_____________________________________________________________________

Can I make this decision alone, or do I need the help of a trusted resource?
Explain.
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
____________________________________________________________________

How will this decision affect me the rest of my life?

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
____________________________________________________________________

STEP 2
Brainstorm Possible Options and Identify Possible Outcomes of each option.

Options Positive Outcome Negative Outcome

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Step 3 - Make a Decision and Follow Through
According to the options above, which one looks like the best and circle it. Now, look at
the criteria below, answer each question about the option you chose. If you
answered no to any of the questions, then you need to re-evaluate your option.

Is the option healthy? __Yes __ No

Does this decision respect my mind and body? __Yes __ No
Does this decision respect people that care about me? __Yes __ No
Does this option support my values? __Yes __ No
Does this option promote my goals? __Yes __ No
Does this decision follow the law? __Yes __ No

Step 4
What is your final decision?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
___________________________________________________________________.

E-DISCUSSION / PARTICIPATION 5
GROUP DECISION
SCENARIO
You and your teammates are currently manning a check point. Your superior
ordered a strict compliance of the “No Travel Pass, No Entry” policy. On one occasion, a
convoy of a Judge wanted to enter the municipality. However, only the Judge has the
travel pass and rest of his colleagues have not. He pleaded to you to let them pass
because they are his security details. What will you do in this situation?

Note: Follow same steps and worksheet template from assignment 5.

QUIZZER
Let’ see how many points you can earn from this quiz! SCORE: ______
MULTIPLE CHOICES: Encircle the letter the correspond to your answer.

1. A decision for repetitive or routine problems for which the responses have been
already been decided and been known to the person who will make the decision is
called:
A. programmed C. strategic
B. non programmed D. professional

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2. A decision based primarily on an almost unconscious reliance on the decision
maker's experience without a conscious rational analysis having been made is
called:
A. systematic C. non programmed
B. programmed D. intuitive
3. The first step in decision making is to:
A. establish priorities.
B. establish specific goals and objectives.
C. identify and define the problem.
D. determine courses of the problem.
4. Which of the following is not an attribute of useful information?
A. accessible. C. relevant.
B. timely. D. none of the above
5. Put the steps in the Decision Making Process in order. What is Step #1?
A. Choose One C. Define the Problem
B. Evaluate Choices D. Act on your Choice
6. These are strategies for simplifying decision making.
A. Heuristic C. Rationality
B. Satisficing D. Biases
7. It describes making decision with complete information.
A. Classical model
B. Bounded rationality model
C. Behavioral decision model
D. Yetton-Broom-Jagon model
8. A decision making that chooses the first satisfactory alternative that comes to one’s
attention.
A. Heuristic C. Rationality
B. Satisficing D. Biases
9. A decision-making process is a series or chain of related steps or interconnected
stages that lead to an action or to an outcome and assessment.
A. True B. False
10. The first seven steps in the decision making process are the decision formulation
stages while the last two steps are the decision implementation process.
A. True B. False

KEY ANSWERS
1. A 6. A
2. D 7. A
3. C 8. B
4. D 9. A
5. C 10. A

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