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Joan R.

Dimayuga, 2014 :))))))))))


Engineering - profession in which a knowledge of the
mathematical and natural science gained by study,
experience, and practice is applied with judgment to
develop ways to utilize, economically, the materials and
forces of nature for the benefit of mankind.

Management - set of activities directed at an
organizations resources with the aim of achieving
organizational goals in an efficient and effective manner.
- is a process consisting of
planning, organizing, directing (or leading), and

1. Research where the engineer is engaged in the
process of learning about nature and codifying this
knowledge into usable theories.
2. Design and development where the engineer
undertakes the activity of turning a product concept to a
finished physical items.
3. Testing where the engineer works in a unit where
new products or parts are tested for workability.
4. Manufacturing where the engineer is directly in
charge of production personnel or assumes
responsibility for the product.
5. Construction this is where the construction engineer
is directly in charge of the construction personnel or may
have responsibility for the quality of the construction
6. Sales - where the engineer assists the companys
customers to meet their needs, especially those that
require technical expertise.
7. Consulting where the engineer works as consultant
of any individual or organization requiring his services.
8. Government where the engineer may find
employment in the government.
9. Teaching where the engineer gets employment in a
school and is assigned as a teacher of engineering
10. Management where the engineer is assigned to
manage groups of people performing specific tasks.

1. Level One those with minimal engineering jobs like
retailing firms.
2. Level Two those with a moderate degree of
engineering jobs like transportation companies
3. Level Three those with a high degree of engineering
jobs like construction firms.

Engineering management - refers to the activity
combining technical knowledge with the ability to
organize and coordinate worker power, materials,
machinery, and money.

1. a bachelors degree in engineering (or masters
degree in engineering or business management is
required )
2. few years experience in pure engineering job
3. training in supervision
4. special training in engineering management

Kreitner - indicates at least three general preconditions
for achieving lasting success as a manager.
1. Ability
2. Motivation to manage
3. Opportunity

Managerial ability - refers to the capacity of an engineer
manager to achieve organizational objectives effectively
and efficiently.

John B. Miner - developed a psychometric instrument to
measure objectively an individuals motivation to

OPPORTUNITY two requirements:
obtaining a suitable managerial job
finding a supportive climate once on
the job.


DECISION-MAKING - process of identifying and
choosing alternative courses of action in a manner
appropriate to the demands of the situation.
- heart of all the management
functions according to Nickels

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According to David H. Holt, rational decision-making
involves the following steps

1. DIAGNOSE THE PROBLEM - Identification of the
problem is tantamount to having the problem half-
2. ANALYZE THE ENVIRONMENT - The objective of
environmental analysis is the identification of
constraints, which may be spelled out as either
internal or external limitations.
Internal refers to organizational activities
within a firm that surrounds decision-
External refers to variables that are
outside the organization and not typically
within the short-run control of top
solved by any of the solutions offered.
4. EVALUATE ALTERNATIVES - how the alternatives will
be evaluated will depend on the nature of the
problem, the objectives of the firm, and the nature
of alternatives presented.
- Each alternative must be
analyzed and evaluated in terms of its value, cost,
and risk characteristics.
VALUE refers to the benefits that can be expected
COST refers to out-of-pocket costs, opportunity
costs, and follow-on costs.
RISK CHARACTERISTICS refer to the likelihood of
achieving the goals of the alternatives.
5. CHOICE MAKING process of selecting alternatives
representing potential solutions to a problem.
Implementation refers to carrying out the decision
so that the objectives sought will be achieved.
Feedback process which requires checking at
each stage of the process.
Control actions made to ensure that activities
performed match the desired activities or goals
that have been set.

1. Qualitative evaluation
2. Quantitative evaluation
QUALITATIVE EVALUATION - Evaluation of alternatives
using intuition and subjective judgment.

QUANTITATIVE EVALUATION - Evaluation of alternatives
using any technique in a group classified as rational and

1. INVENTORY MODELS consist of several types all
designed to help the engineer manager make
decisions regarding inventory.
to calculate the number of items that should
be ordered at one time to minimize the total
yearly cost of placing orders and carrying the
items in inventory.
economic order quantity technique applied
to production orders.
planned shortages.
minimize the total cost when quantity
discounts are offered by suppliers.
2. QUEUING THEORY describes how to determine the
number of service unit that will minimize both
customer waiting time and cost of service.
3. NETWORK MODELS models where large complex
tasks are broken into smaller segments that can be
managed independently.
a. The Program Evaluation Review Technique
(PERT) enables engineer managers to
schedule, monitor, and control large and
complex projects by employing three time
estimates for each activity.
b. The Critical Path Method (CPM) uses only
one time factor per activity that enables
engineer managers to schedule, monitor and
control large and complex projects.
4. FORECASTING the collection of past and current
information to make predictions about the future.
5. REGRESSION ANALYSIS - Forecasting method that
examines the association between two or more
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SIMPLE REGRESSION: one independent
variable is involved
independent variables are involved.

6. SIMULATION represents reality, on which
conclusions about real-life problems can be used.
Decision maker develops a mathematical model of
the system under consideration.
7. LINEAR PROGRAMMING used to produce an
optimum solution within the bounds imposed by
constraints upon the decision.
8. SAMPLING THEORY samples of populations are
statistically determined to be used for a number of
processes, such as quality control and marketing
research. It saves time and money.
conceptualize, analyze, and solve problems in
situations involving limited or partial information
about the decision environment.

i. PLANNING involves anticipating future trends and
determining the best strategies and tactics to
achieve organizational objectives.
PLAN provides a methodical way of achieving
desired results

Planning at various management levels
1. Top management level strategic planning
2. Middle management level intermediate
3. Lower management level operational planning
STRATEGIC PLANNING - process of determining the
major goals of the organization and the policies and
strategies for obtaining and using resources to achieve
these goals.
Strategic plan the output of strategic planning.
INTERMEDIATE PLANNING - process of determining the
contributions that sub-units can make with allocated
resources; designed to support the strategic plan.
OPERATIONAL PLANNING - process of determining how
specific tasks can best accomplished on time with
available resources.
Process of Planning
1. Setting organizational, divisional or unit goals - the
first task of the engineer manager is to provide a
sense of direction to his firm, to his division or to his
unit. The setting of goals provide an answer to the
said concern.
GOALS precise statement of results
sought, quantified in time and magnitude,
where possible.
2. Developing strategies or tactics to reach goals
STRATEGY way to realize the goals; course
of action aimed at ensuring that the
organization will achieve its objectives.
Tactic short term action taken by
management to adjust negative internal or
external influences. (*tactical plan)
3. Determining resources needed - when particular
sets of strategies or tactics have been devised, the
engineer manager will, then, determine the human
and nonhuman resources required by such strategies
or tactics.
4. Setting standards - the standards for measuring
performance may be set at the planning stage.
Standard a quantitative or qualitative measuring
device designed to help monitor the performances of
people, capital goods, or processes.

1. Functional Area Plans
Marketing plan written document or
blueprint for implementing and controlling
an organizations marketing activities
related to a particular marketing strategy.
Production plan states the quantity of
output a company must produce in broad
terms and by product family.
Financial plan summarizes the current
financial situation of the firm, analyzes
financial needs, and recommends a direction
for financial services.
Human resource management plan
indicates the human resource needs of a
company detailed in terms of quantity and
quality and based on the requirements of
the companys strategic plan.
2. Plans With Time Horizons
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Short-range plans plans intended to cover
a period of less than one year. (first line
Long-range plans these are plans covering
a time span of more than one year. (middle
& top management)

3. Plans According to Frequency of Use
Standing plans - plans that are used again
and again, and they focus on managerial
situations that recur repeatedly.
i. Policies - broad guidelines to aid
managers at every level in making
decisions about recurring situations or
ii. Procedures they are plans that
describe the exact series of actions to
be taken in a given situation.
iii. Rules statements that either require
or forbid a certain action.
Single-Use Plans - specifically developed to
implement courses of action that are
relatively unique and are unlikely to be
i. Budgets sets forth the projected
expenditure for a certain activity and
explains where the required funds will
come from.
ii. Programs designed to coordinate a
large set of activities.
iii. Projects usually more limited in
scope than a program and is
sometimes prepared to support a

Parts of the Various Functional Area Plans
Contents of Marketing Plan (William Cohen)
1. The executive summary - presents an overall
view of marketing project and its potential.
2. Table of contents
3. Situational analysis and target market
4. Marketing objectives and goals
5. Marketing strategies
6. Marketing tactics
7. Schedules and budgets
8. Financial data and control

Contents of the Production Plan
1. The amount of capacity the company must have
2. How many employees are required
3. How much material must be purchased

Contents of the Financial Plan
1. An analysis of the firms current financial
condition as indicated by an analysis of the
most recent statements.
2. A sales forecast.
3. The capital budget.
4. The cash budget.
5. A set of projected financial statements.
6. The external financing plans.

Contents of human resources plan
1. Personnel requirements of the company
2. Plans for recruitment and selection
3. Training plan
4. Retirement plan

Parts of the Strategic Plan
1. Company or corporate mission strategic
statement that identifies why an organization
exists, its philosophy of management and its
purpose as distinguished from other similar
organizations in terms of products, services and
2. Objectives and Goals
3. Strategies

ii. ORGANIZING - structuring of resources and activities
to accomplish objectives in an efficient and effective

STRUCTURE - arrangement or relationship of
positions within an organization; result of the
organizing process.

When structuring an organization, the engineer
manager must be concerned with the following:
1. Division of labor - determining the scope of work
and how it is combined in a job.
2. Delegation of authority - process of assigning
various degrees of decision-making authority to
Joan R. Dimayuga, 2014 :))))))))))
3. Departmentalization - grouping of related jobs,
activities or processes into major organizational
subunits; setting up and establishing
4. Span of Control - number of people who report
directly to a given manager.
5. Coordination - linking of activities in the
organization that serves to achieve a common
goal or objective.

FORMAL ORGANIZATION - structure that details lines of
responsibilities, authority and position.

The formal structure is described by management
1. Organization chart - diagram of the
organizations official positions and formal lines
of authority.
2. Organizational manual - provides written
descriptions of authority relationships, details
the functions of major organizational units, and
describes job procedures.
3. Policy manuals - describes personnel activities
and company policies.

INFORMAL GROUPS - members of an organization
spontaneous form a group with a friendship as a principal
reason for belonging; vulnerable to expediency,
manipulation and opportunism.
1. Functional Organization - form of
departmentalization in which everyone engaged
in one functional activity, such as engineering or
marketing, is grouped into one unit
2. Product or Market Organization - organization of
a company by divisions that brings together all
those involved with a certain type of product or
3. Matrix Organization - organizational structure in
which each employee reports to both a functional
or division manager and to a project or group

FUNCTIONAL ORGANIZATION - very effective in smaller
firms, especially single-business firms where key
activities revolve around well-defined skills and areas of
a large corporation with many project lines in several
related industries.
MATRIX ORGANIZATION - structure with two (or more)
channels of command, two lines of budget authority, and
two sources of performance and reward (Thompson and

1. LINE AUTHORITY - a managers right to tell
subordinates what to do and then see that they
do it.
2. STAFF AUTHORITY - staff specialists right to give
advice to a superior.
3. FUNCTIONAL AUTHORITY - specialists right to
oversee lower level personnel involved in that
specialty, regardless of where the personnel are
in the organization.
Line departments - perform tasks that reflect
the organizations primary goal and mission.
Staff departments - include all those that
provide specialized skills in support of line
Staff officers may be classified into the
1. Personal staff - those individuals assigned to a
specific manger to provide needed staff services.
2. Specialized staff those individuals providing
needed staff services for the whole organization.
Functional authority - given to a person or a
work group to make decisions related to their
expertise even if these decisions concern other
Committee - formal group of persons formed for a
specific purpose; very useful most especially to
engineering and manufacturing firms.
Committees may be classified as follows:
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1. Ad hoc committee - one created for a short-
term purpose and have a limited life.
2. Standing committee - it is relatively permanent
committee that deals with issues on an ongoing
iii. STAFFING - determines human resource needs,
recruits, selects, trains and develops human
resources for jobs created by the organization.
Staffing Procedure
1. Human resource planning - identifies current and
future human resources needs for an organization to
achieve its goals.

Human resource planning may involve three
activities, as follows:
a. Forecasting - assessment of the future human
resource needs in relation to the current
capabilities of the organization.
b. Programming - translating the forecasted human
resources needs to personnel objectives and
c. Evaluation and control - monitoring human
resource action plans and evaluating their success
Methods of forecasting:
I. Time series methods use historical data to
develop forecasts
II. Explanatory or casual models attempts to
identify the major variables that are related to
or have caused particular past conditions.
Major types of explanatory model:
a. Regression models
b. Econometric models system of regression
equations estimated from past time series data
& used to show the effect of various
independent variables on dependent variables.
c. Leading indicators refers to time series that
anticipate business cycle turns.
III. Monitoring methods provide early warning
signals of significant changes in established
patterns & relationships.

2. Recruitment - attracting qualified persons to apply
for vacant positions in the company
Source of Applicants:
The organization current employees
Newspaper advertising
Referrals from employees
Recruitment firms

3. Selection - act of choosing from those applicants
which is most likely succeed on the job.
Ways of Determining the Qualifications of a Job
a. Application blanks provides info about a
persons characteristics such as age, marital
status, address, educational background,
experience and special interests.
b. References written by previous employers, co-
workers, teachers, club officers, etc.
c. Interviews asking series of relevant questions
to the job candidate.
d. Testing evaluation of the future behavior or
performance of an individual.
Types of Tests:
a. Psychological tests an objective standard
measure of a sample behavior.
Aptitude test used to measure a persons
capacity or potential ability to learn
Performance test used to measure a
persons current knowledge of a subject.
Personality test used to measure
personality traits as dominance, sociability,
and conformity.
Interest test used to measure a persons
interest in various fields of work.
b. Physical examination to assess the physical
health of an applicant.

4. Induction and Orientation
INDUCTION - new employee is provided with
necessary information about the company.
ORIENTATION - The new employee is introduced to
the immediate working environment and co-

5. Training and Development
TRAINING learning that is provided in order to
improve performance on the present job.

Training Program for Non-managers
i. On- the- job training - trainee is placed in an
actual work situation under the direction of his
immediate supervisor.
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ii. Vestibule school - trainee is placed in a situation
almost exactly the same as the workplace.
iii. Apprenticeship program - combination of on-
the- job training- and experiences with
classroom instruction in particular subjects are
provided to trainee.
iv. Special courses - provide more emphasis on
education rather than training.

Training Program for Non-managers
i. In- basket - trainee is provided with a set of notes,
messages, telephone calls, letters and reports,
all pertaining to certain company situation.
ii. Management games - trainees are faced with a
simulated situation and are required to make an
ongoing series of decisions about the situation.
iii. Case studies - presents actual situations on
organizations and enable one to examine
successful and unsuccessful operations
Interpersonal competence of the manager may be
developed through any of the following methods:
Role playing trainees are assigned roles to play
in a given case incident.
Behavior modeling attempts to influence the
trainee by showing model persons behaving
effectively in a problem situation.
Sensitivity training awareness and sensitivity
to behavioral patterns of oneself and others are
Transactional analysis intended to help
individuals not only understand themselves and
others but also improve their interpersonal
communication skills.

In acquiring knowledge about the actual job the
manager is currently holding, the following
methods are useful:
On- the- job experience - provides valuable
opportunities for the trainee to learn various
skills while actually engaged in the performance
of a job.
Coaching - requires a senior manager to assist a
lower level manager by teaching him the needed
skills and generally providing directions, advice
and helpful criticism.
Understudy - manager works as assistant to a
higher level manager and participates in
planning and other managerial functions until he
is ready to assume such position himself.

In the attempt to increase the trainees knowledge
of the total organization. The following methods
are useful:
Position Rotation the manager is given
assignments in a variety of departments.
Multiple management premised on the idea
that junior executives must be provided with
means to prepare them for higher management

6. Performance appraisal - measurement of employee
Ways of Appraising Performance
Rating scale method - each trait and
characteristics to be rated is represented by a
line or scale.
Essay method - where evaluator composes a
statement that best describe the person
Management by objectives method - where
specific goals are set collaboratively for the
Assessment center method - one is evaluated by
persons other than the immediate supervisors.
Checklist method - evaluator checks statement
on a list that are deemed to characterize an
employees behavior or performance.
Work standards method - standards are set for
realistic workers output and later on used in
evaluating the non-managerial employees.
Ranking method - each evaluator arrange its
employees in rank order.
Critical incident method - evaluator recalls and
take down specific incident that indicates
employees performance.

7. Employment decisions
Monetary rewards given to employees when
performance is at par or above standard
Promotion movement by a person into a
position of higher pay & greater responsibilities;
reward for competence and ambition.
Transfer movement of a person to a diff. job at
the same or similar level of responsibility.
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Demotion movement from one position to
another which has less pay or responsibility.

8. Separations - either a voluntary or involuntary
termination of an employee.
VOLUNTARY organizations management must
find out the real reason.
INVOLUNTARY last option that the management
exercises when an employees performance is poor
or when he/she violates the company rules.

COMMUNICATING - process of sharing information
through symbols, including words and message.
(Morris Philip Wolf and Shirley Kuiper)
Communication - linking process of management.
1. INFORMATION FUNCTION - Information provided
by communication may be used in decision-making
at various work levels in the organization.
2. MOTIVATION FUNCTION - Communications is
oftentimes used as a means to motivate
employees to commit themselves to the
organizations objective.
3. CONTROL FUNCTION - Effective control is
facilitated through proper communication.
4. EMOTIVE FUNCTION - Communication provides a
means to decrease the internal pressure affecting
the individual.

1. Develop an Idea - the most important step in
effective communication; idea must be useful
or of some value
2. Encode - encoding into words, illustrations,
figures, or other symbols suitable for
3. Transmit - message is now ready for
transmission through the use of an appropriate
communication channel.
4. Receive - actual receiving of the message by the
intended receiver.
5. Decode translate the message from the sender
into a form that will have meaning to the
6. Accept receiver either accepts or rejects the
Factors that will affect the acceptance or
rejection of a message:
The accuracy of the message
Whether the sender has the authority to send
or not, and/or require an action
The behavioral implications of the receiver
7. Use receiver uses the info.
8. Provide Feedback receiver provides feedback
to the sender.
1. Verbal transmitted through hearing or sight.
o Oral mostly involves hearing the words
of the sender.
o Written sender seeks to communicate
through the written word.
2. Non-Verbal means of conveying message
through body language, time, space
1. Personal Barriers arising from a
communicators characteristics as a person
(emotions, sex, age, race, religion, education)
*Emotions cloud the communicators ability to
judge correctly the real meaning of messages.
2. Physical Barriers interferences to effective
communication occurring in the environment
where the communication is undertaken.
(distance, noise)
3. Semantic Barriers interference with the
reception of the message that occurs when the
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message is misunderstood even though it is
received exactly as transmitted.
SEMANTICS study of the meaning as expressed
in symbols (words, actions, pictures)

Downward Communication message flows from
higher levels of authority to lower levels.
o To give instructions
o To provide info about policies & procedures
o To give feedback about performance
o To indoctrinate or motivate

1. Letters appropriate when directives are
complex and precise actions are required.
2. Meetings appropriate when orders are simple
but the result depends largely on employees
3. Telephone
4. Manuals useful sources of information
regarding company policy, procedures and
5. Handbooks provides more specific duties and
privileges of the individual worker
6. Newsletters provide a mixture of personal,
social and work-related information. Articles
about new hiring, promotions, birthdays of
employees, questions and answers about work
related issues are presented.

Upward Communication - for the management to
know the specific needs of the employees; messages
from persons in lower level positions to persons in
higher positions.
1. Formal Grievance Procedure for the
employees to effectively air their grievances
Grievances - employees concern over a
perceived violation of the labor agreement
that is submitted to the grievance procedure
for eventual resolution.
2. Employee Attitude and Opinion Surveys
finding out what the employees think about the
3. Suggestion Systems suggestions are important
sources of cost-saving and production enhancing
4. Open Door Policy - provides the management to
act on difficulties before they become full-blown
5. Informal Gripe Sessions employees feel free to
talk and they are assured of not being penalized.
6. Task Forces may be created and assigned to
deal with problem or issue.
7. Exit Interviews when the employees leave an
organization for any reason, it is the advantage
of management to know the real reason.

Horizontal Communication refers to messages
sent to individuals or groups from another of the
same organizational level.
o To coordinate activities between departments
o To persuade others at the same level of
o To pass on information about activities or

- (MIS) organized method of providing past,
present, and projected info on internal
operations and external intelligence for use in
- written and electronically based systems for
sending reports, memos, bulletins

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1. To provide a basis for the analysis of early warning
signals that can originate both externally and
2. To automate routine clerical operations like
payroll and inventory reports.
3. To provide a basis for the analysis of early warning
signals that can originate both externally and
4. To automate routine clerical operations like
payroll and inventory reports.

MOTIVATION - process of activating behavior,
sustaining it, and directing it toward a particular goal.

MOTIVATING - act of giving employees reasons or work to achieve organizational
Factors Contributing to Motivation
Willingness to do a job
Self-confidence in carrying out a task
Needs Satisfaction

Maslows Needs Hierarchy Theory
- (Abraham Maslow) human beings have five
basic needs which are as follows:
o Physiological Needs - concerned with
biological needs (food, drink, rest, sex)
o Security Needs safety needs. (freedom
from harm)
o Social Needs strive to secure love,
affection & need to be accepted by peers.
o Esteem Needs need for a positive self-
image and self-respect and the need to be
respected by others.
o Self-Actualization Needs involve realizing
our full potential as human beings &
becoming all that we are able to be.
Herzbergs Two-Factor Theory
- (Frederick Hertzberg) a satisfied employee is
motivated from within to work harder and that a
dissatisfied employee is not self-motivated.

Expectancy Theory
- based on the assumption that an individual will
work depending on his perception of the
probability of his expectations to happen.

Goal Setting Theory
- process of improving performance with
objectives, deadlines or quality standard.
Goal Content - To be sufficient in content,
goals must be challenging, attainable,
specific and measurable, time-limited, and
Goal Commitment - When individuals or
groups are committed to the goals they are
supposed to achieve, there is a chance that
they will be able to achieve them.
Work Behavior - Goals influence behavior in
terms of direction, effort, persistence, and
Feedback Aspects - Goals influence behavior
in terms of direction, effort, persistence, and

Techniques of Motivation
1. Motivation through job design
JOB DESIGN - specifying the tasks that constitute
a job for an individual or a group.

a. Fitting People to Jobs
i. Realistic job previews where
management provides honest
explanations of what a job actually
ii. Job rotation where people are
moved periodically from one
specialized job to another.
iii. Limited exposure where a workers
exposure to a highly fragmented and
tedious job is limited

b. Fitting Jobs to People
i. Job Enlargement where two or
more specialized tasks in a work flow
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sequence is combined into a single
ii. Job Enrichment where efforts are
made to make jobs more interesting,
challenging, and rewarding.

2. Motivation through rewards
Rewards may be classified into two categories:
Extrinsic those which refer to payoffs
granted to the individual by another party.
Intrinsic those which are internally
experienced payoffs which are self-granted.
Examples are a sense of accomplishment,
self-esteem and self-actualization.

3. Motivation through employee participation
Specific activities identified where employees
may participate are as follows:
Setting Goals
Making Decisions
Solving Problems, and
Designing and Implementing
Organizational Changes

Popular approaches to participation includes
the following:
Quality Control Circles - method of direct
employee participation which aims to
increase the productivity and quality of
Self-Managed Teams - autonomous work
groups or high performance teams, self-
managed teams take on traditional
managerial tasks as part of their normal
work routine.

4. Other motivation techniques for the diverse
work force
a. Flexible Work Schedules - an arrangement,
called FLEXTIME allows employees to
determine their own arrival and departure
times within specified limits.
b. Family Support Services - company offers
certain propositions that are in favor of the
employers family.
c. Sabbaticals - One given to an employee
which allows him to go on leave for a long
period of time with pay.

LEADING - involves influencing others to engage in
the work behaviors necessary to reach
organizational goals.
Leaders - said to be able to influence others because of
the power they possess.

Power - ability of a leader to exert force on another.

Bases of Power
1. Legitimate power - a person who occupies a
higher position has legitimate power over
persons in lower positions within the
2. Reward power - When a person has the ability
to give rewards to anybody who follows orders
or requests.
a. Material Rewards refer to the money or
other tangible benefits.
b. Psychic Rewards consist of recognition,
3. Coercive power - When a person compels
another to comply with orders through threats
or punishment.
4. Referent power - When a person can get
compliance from another because the latter
would want to be identified with the former.
5. Expert power - Experts provide specialized
information regarding their specific lines of

Leadership - referred to as the process of influencing and
supporting others to work enthusiastically toward
achieving objectives.

1. A high level of personal drive - Persons with drive
are those identified as willing to accept
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responsibility, possess vigor, initiative,
persistence, and health.
2. The desire to lead leaders with a desire to lead
will always have a reservoir of extra efforts which
can be used whenever needed.
3. Personal integrity - A person who is well-regarded
by others as one who has integrity possesses one
trait of a leader.
4. Self-confidence for moves to be continuous and
precise, self-confidence is necessary.
5. Analytical ability or judgment - The ability to
analyze is one desirable trait that a leader can use
to tide him over many challenging aspects of
6. Knowledge of the company, industry or
technology - A leader, who is well-informed about
his company, the industry where the company
belongs, and the technology utilized by the
industry, will be in better position to provide
directions to his unit.
7. Charisma - When a person has sufficient personal
magnetism that leads people to follow his
8. Creativity - ability to combine existing data,
experience, and preconditions from various
sources in such a way that the results will be
subjectively regarded as new, valuable, and
innovative, and as a direct solution to an identified
problem situation.
9. Flexibility - A leader, who allows this situation as
long as the required outputs are produced, is said
to be flexible.

1. Technical skills - is the specialized knowledge
needed to perform a job
2. Human skills - refer to the ability of a leader to deal
with people, both inside and outside the
3. Conceptual skills - refer to the ability to think in
abstract terms, to see how parts fit together to
form the whole.

1. according to the ways leader approach people to
motivate them
o Positive Leadership when the leaders
approach emphasizes rewards
o Negative Leadership - when punishment is
emphasized by the leader
2. according to the way the leader uses power
o Autocratic - Leaders who make decision
themselves, without consulting subordinates.
o Participative - When a leader openly invites his
subordinates to participate or share in
decisions, policy-making and operation
o Free-rein - Leaders who set objectives and
allow employees or subordinates relative
freedom to do whatever it takes to accomplish
these objectives

3. according to the leaders orientation towards task
and people
o Employee oriented leader considers
employees as human beings of intrinsic
importance & with individual and personal
o Task oriented leader places stress on
production & the technical aspects of the

- Effort to determine through research which
managerial practices and techniques are appropriate
in specific situations.
1. Fiedlers Contingency Model
-According to Fred Fiedler, leadership is
effective when the leaders style is appropriate
to the situation.
2. Hersey and Blanchard Situational Leadership
-The most important factor affecting the
selection of a leaders style is the development
(or maturity) level of subordinate.

Maturity has two components:
a. Job skills and knowledge
b. Psychological maturity

Leadership Styles
Style 1: Directing for people who lack
competence but are enthusiastic and
Style 2: Coaching for people who have some
competence but lack commitment.
Joan R. Dimayuga, 2014 :))))))))))
Style 3: Supporting - for people who have
competence but lack of confidence or
Style 4: Delegating - for people who have both
competence and commitment.
3. Path-Goal Model of Leadership
- espoused by Robert J. House and Terence R.
Effective leaders can enhance subordinate
motivation by:
i. Clarifying the subordinates perception of
work goals
ii. Linking meaningful rewards with goal
attainment, and
iii. Explaining how goals and desired rewards can
be achieved
a. Directive Leadership leader focuses on
clear task assignments, standards of
successful performance & work schedules.
b. Supportive Leadership subordinates are
treated as equals in a friendly manner while
striving to improve well-being.
c. Participative Leadership leader consults
with subordinates to seek their suggestions
and consider them.
d. Achievement-oriented Leadership leader
set challenging goals, emphasize excellence
& seek continuous improvement.
4. Vrooms Decision-Making Model
-prescribes the proper leadership style for
various situations, focusing on the appropriate
degrees of delegation of decision-making

CONTROLLING - process of ascertaining whether
organizational objectives have been achieved; if not,
why not; and determining what activities should
then be taken to achieve objectives better in the

1. Sales targets expressed in monetary or quantity
2. Production targets expressed in quality or
3. Worker attendance expressed in terms of rate
of absence
4. Safety record expressed in number of accidents
for a given period
5. Supplies used expressed in quantity or
monetary terms for a given period
Measuring Actual Performance - done so that when
shortcomings occur, adjustments could be made.
1. Feedforward Control - control taken when
management anticipates problems and prevents
their occurrence.
2. Concurrent Control - Undertaken when operations
are already ongoing and activities to detect
variances are made.
3. Feedback Control - Done when information is
gathered about a completed activity and evaluate
steps for improvements are derived.

Components of Organizational Control Systems:
1. Strategic Plan - Provides basic control mechanism
for the organization. Dictates whether activities are
set aside, modified or expanded when activities do
not facilitate accomplishment of strategic goals.
2. Long Range Financial Plan - recommends a
direction for financial activities. If the goal does not
appear to be where the firm is headed, the control
mechanism should be made to work.
3. Operating Budget - indicates the expenditures,
revenues or profits planned for some future period
regarding operations.
4. Performance Appraisals - measures employee
performance, also provides employees with a guide
on how to do their jobs better in the future. It
functions as effective checks on new policies and
5. Statistical Reports - Contain data on various
developments within the firm. (labor efficiency
reports, quality control reports, sales reports,
accident reports etc.)
Joan R. Dimayuga, 2014 :))))))))))
6. Policies and procedures - framework within which
the objectives must be pursued. A plan that
describes the exact series of actions to be taken in
a given situation.
1. Financial Analysis success of most organizations
depends heavily on its financial performance
2. Financial Ratio Analysis more elaborate approach
used in controlling activities. One account
appearing in the financial statement is paired with
another to constitute a ratio.

1. Executive Reality Check - Employees at the frontline
often complain that management imposes certain
requirements that are not realistic.
2. Comprehensive Internal Audit - Undertaken to
determine the efficiency and effectivity of the
activities of an organization.
- A comprehensive internal audit aims to
detect dysfunctions on the organization
before they bring bigger troubles to
3. General Checklist of symptoms of inadequate
control - Used when comprehensive internal audit
cannot be availed.

OPERATIONS - process that accepts inputs and uses
resources to change those inputs in useful ways.

OPERATIONS MANAGEMENT - process of planning,
organizing, and controlling operations to reach
objectives efficiently and effectively (Aldag and Stearns)
EFFICIENCY - the cost of doing something, or the
resource utilization involved
EFFECTIVENESS - Goal accomplishment

OPERATIONS MANAGER (Engineer) - find ways to
contribute to the production of quality goods or services
and reduction of costs in his department.

Types of transformation process
products by hand or with machinery
a. Job shop - Production is based on sales orders
for a variety of small lots
b. Batch flow - Process where lots of generally
own designed products are manufactured
c. Worker-paced line flow
o ASSEMBLY LINE production layout
arranged in a sequence to accommodate
processing of large volumes of
standardized products or services
depends on the skill of labor utilized
d. Machine-paced Assembly Line - production
process produces mostly standard products
with machines playing a significant role
e. Continuous flow (processing) rapid rate at
which items move through the system
f. Batch/Continuous Flow Hybrid -
Combination of Batch Flow and Continuous
a. Service factory - Offers a limited mix of
services which results to some economies of
scale in operations
b. Service shop - Provides a diverse mix of
c. Mass service - Provides services to a large
number of people simultaneously; Uses
Unique processing method; Offers limited
mix of services to be able to serve many
d. Professional service - Provide specialized
services to other firms or individuals

1. PRODUCT DESIGN - the process of creating a set
of product specifications appropriate to the
demands of the situation
Joan R. Dimayuga, 2014 :))))))))))
the future sales of a given product,
translating this forecast into the demand
it generates for various production
facilities and arranging for the
procurement of these facilities
SCHEDULING - phase of production
control involved in developing
timetables that specify how long each
operation in the production process
Efficient scheduling assures
optimization of the use of human
and nonhuman resources
o PURCHASING - firms need to purchase
supplies & materials for production; High
degree of efficiency and effectiveness of
purchasing and materials especially for
high volume production
that seeks efficiency of operation through
integration of all material acquisition,
movement and storage activities in the
4. INVENTORY CONTROL - Process of establishing
and maintaining appropriate levels of reserve
stocks of goods
Too much reserves = high storage costs
Too little reserves = lost income
5. WORK-FLOW LAYOUT - Process of determining
the physical arrangement of the production
a cost-effective work-flow layout is
6. QUALITY CONTROL - Measurement of products
or services against standards set by the company
to facilitate production and to keep
customers satisfied
complaints, returned merchandise,
expensive lawsuits and huge promotional