Organization and Management Continuation PDF

 **Let's Learn!:** A section where you can find valuable contents about the Lesson. **Assessment time!** A continuing activity for you to assess what you learn from the lessons.  **LESSON 1:** Planning and decision making At the end of the unit, the s...

 **Let's Learn!:** A section where you can find valuable contents about the Lesson. **Assessment time!** A continuing activity for you to assess what you learn from the lessons.  **LESSON 1:** Planning and decision making At the end of the unit, the students must have: 1. understood the significance of planning in every activity; 2. identified and compared the various types of plans; 3. discussed the principles of planning and applied this to a simple activity such as a group task; and 4. knewn the relationship of planning to decision making. #### Keywords  Based on our previous lesson, what do you mean my social responsibility? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ **Let's Learn!** **Lesson I. Planning and Decision Making** **PLANNING** Other definition of planning: - Planning is the basic process of choosing our goals and determining the ways of realizing them, taking into consideration available resources---including time. - Planning is preparing now for tomorrow. - In layman's language, planning is thinking and looking ahead. ***Why planning is important?*** - Through planning, a business may be able to survive business competition. - The organization can maximize its performance in satisfying its customers and stockholders. - Planning is vital for economic reasons and efficiency. The following are the reasons why planning is important in business: - Planning can eliminate business risks. - Planning can minimize costs of production. - Planning can detect the weaknesses of the business operation. - Planning exists in all levels of the business organization. - *Top -level managers* perform long-term planning. Their scope of planning encompasses the whole organization. - *Middle-level managers* are concerned with planning of the more specific objectives of implementing the general goals of top-level management. - *First-level managers* are responsible for the scheduling of workers and developing the procedures for doing the job. ***Types of Plans*** 1. *Strategic plan.* This type of plan is focused on the entire business operations. This is a long-term type of plan usually ranging from 5 years or more. 2. *Tactical plan.* In this type, division managers plan what to do, how to do what and who will do what. This is a short-term type of plan usually covering one-year or less. 3. *Operating plan.* This plan provides the specifics as to how the strategic plan will be attained. The operating plan may be one of the following: a. *Single-use plan*. This is applicable to activities that do not repeat. Once the activity is finished, the plan is no longer needed. (e.g. program, budget) b. *Ongoing plan.* This is used for continuing situations, problems and activities which are similar and consistent. (e.g. policy, procedure, rule) ***Principles of Planning*** In order for planning to be effective, the following has to be incorporated in the activity: 1. *Planning must be realistic.* The plan should be attainable and not an impossible dream. 2. *Planning must be based on felt needs.* The plan has to be done to answer a need. 3. *Planning must be flexible.* The plan has to be made in a way that there will be room for improvements or changes if and when necessary. 4. *Planning must be democratic.* All the people who will be affected once the plan will be implemented have to be included in the planning process. 5. *Planning must start with simple projects.* For starters, plan first for simple activities and do not embark right away on lucrative endeavors. 6. *Planning must include social responsibility.* The welfare of society has to be taken into consideration when planning. ***Basic Steps in Planning*** The steps listed below explain the how of planning: 1. *Establish objectives.* *Objectives* are targets set by the organization. 2. *Evaluate the environment.* One has to assess the existing conditions within and outside the organization. For the *internal environment*, the assessment will cover funds, facilities, policies, personnel resources, and attitudes as well as values of the top management. For the *external environment*, the assessment will cover political, social, cultural and economic conditions. The objectives must be tailored to the environment of the organization. 3. *Determine the best alternative strategy.* The *strategy* refers to the course of action used to attain the objectives of the organization. Alternatives can be evaluated by applying cost-benefit analysis. 4. *Implement the action plan.* This step involves the use of the 5 Ms and a time frame. 5. *Evaluation of results.* This step involves checking whether the objectives have been attained or not. ***Secrets to Successful Planning*** The following are suggested ways on how to make the planning activity successful: 1. *Apply the principles of planning.* 2. *Remove possible barriers.* The barriers to successful planning may be one of the following: - Incompetence in planning - Lack of dedication - Incomplete and inaccurate information - Short-sightedness - Dependence on the planning department  **DECISION MAKING** - The process of defining the problem and identifying and choosing alternative courses of action in a manner appropriate to the demands of the situation. - This indicates that the manager must adapt a certain procedure designed to determine the best option available to solve certain problems. - Made at various management levels (i.e., top, middle, and lower levels) and at various management functions (i.e., planning, organizing, directing, and controlling). Since this is so, decision-making is regarded as the heart of all management functions. **Programmed decisions.** *These are decisions encountered and made before, having objectively correct answers and solvable by using simple rules, policies, or numerical computations.* **Nonprogrammed decisions.** *New, novel, complex decisions having no proven answers.* ***Characteristics of Managerial Decisions*** 1. Lack of structure. *Problems are novel and unstructured, leaving the decision maker uncertain about how to proceed.* 2. Uncertainty and risk. *When making managerial decisions where one does not have sufficient information as to the consequences of different actions.* 3. Conflict. *This may be a psychological conflict that exists when several options are attractive or none is viable. This may also arise between people that will be affected by the decisions.* **The following are the Steps in decision-making:** 1. *Define the problem.* The root cause of the problem must be identified. 2. *Gather data about the problem.* Research for possible causes of the problem. 3. *Organize and analyze the data.* Manage and examine the data gathered about the problem at hand. 4. *Develop alternative solutions.* Think of possible options and ways to solve the problem. 5. *Analyze the alternatives.* Evaluate the alternatives in terms of the goals and resources of the organization. 6. *Select the best alternative.* The best alternative is the one with the most advantages in terms of costs and profits. Peter Drucker introduced the following criteria in selecting the best alternative: - Presence of risk. - Economy of effort. - Time factor. - Availability of resources. 7. *Implement and monitor the decision.* Put the decision into action and observe if it really solves the problem and provide the expected benefits to the organization. **The Stages of Decision Making** 1. Identifying and diagnosing the problem. The problem may be identified through comparing current performance to past performance, current performance of other organizations or units, and to future expected performance. It may also be an opportunity that needs to be seized or a gap between what the organization is doing now and what it can do for a better future. Once the problem is identified, the root cause of the problem must be diagnosed. 2. Generate alternative solutions. Ready-made solutions. *Ideas that have been seen or tried before.* Custom-made solutions. *New, creative solutions designed specifically for the problem.* 3. Evaluate alternatives. *To evaluate alternatives, one must refer to the original goals of the organization.* Peter Drucker introduced the following criteria in selecting the best alternative: - Presence of risk. - Economy of effort. - Time factor. - Availability of resources. Contingency plans. *Alternative courses of action that can be implemented based on how the future unfolds.* 4. Make the choice. Maximizing. *A decision realizing the best possible outcome.* Satisficing. *Choosing an option that is acceptable, although not necessarily the best or perfect.* Optimizing. *Achieving the best possible balance among several goals.* **Barriers to Effective Decision making:** - Psychological biases *Illusion of control.* The belief of people that they can influence events even when they have no control over what will happen. *Framing effects.* A bias in decision making which is influenced by the way the problem or a decision alternative is presented. *Discounting the future.* A decision bias wherein much importance is given to short-term costs and benefits. - Time Pressures - Social realities Pros and Cons of using a group to make decisions +-----------------------------------+-----------------------------------+ | Potential advantages | Potential disadvantages | +===================================+===================================+ | 1. Larger pool of information | 1. One person dominates | | | | | 2. More perspectives and | 2. Satisficing | | approaches. | | | | 3. Groupthink which happens when | | 3. Intellectual stimulation. | people choose not to disagree | | | so as to maintain a positive | | 4. People understand the | team spirit. | | decision. | | | | 4. Goal displacement which | | 5. People are committed to the | happens when new goals emerge | | decision. | to replace the original ones. | +-----------------------------------+-----------------------------------+ Managing Group decision making 5. Implement the decision. 6. Evaluate the decision. ***Assessment time!*** **Case 1** *Read and understand the case very carefully and answer the questions that follow.* **CAMELOT RECORDS: Those Were the Days** Mr. Miguelito Salde worked very hard as salesman of recorded music. He represented a company which distributes compact discs and cassette tapes with foreign labels. For about ten years, he personally called on dealers in Metro Manila and the provinces to convince them to buy his products. His exposure to the industry provided him with the right mindset to establish his own recording outfit. With his mind working, Miguelito hatched a plan on how he will go about operating his own company: the Camelot Records. In addition to his knowledge about the market, he collected information on the production aspect of recording. The plan and the required information were all stored in Miguelito's memory. Later, Miguelito mentally prepared a financial plan, as well as a personnel recruitment program, no matter how simple they are. When he thought that his business plan is complete, he began to implement it with the required speed. He worked systematically by following a procedure he alone knows and explaining to his recruits these exact functions of each of them. Within a few months of operating, the company was able to produce two long playing CDs and DVDs with recordings or original Filipino music. Local singers and composers were tapped. The market received the products with moderate response. Miguelito went on producing more recorded music until one of the first albums becomes a commercial hit! This accomplishment catapulted the company to recognition by the industry. The company's commercial hits were followed by other hits in succession. All of the successful moves of the company were made without the benefit of a written plan. What Miguelito did was to personally supervise all activities from hiring talents to providing directions to salesmen. This he did vigorously with the company's total workforce of 51 employees. As the company grew with more productions and more than 200 employees, Miguelito's immediate subordinates are getting worried that their boss must be feeling the burden of a workload that is getting heavier as the years pass. The staffs feel that their leader must begin to delegate some of the responsibilities to qualified persons. They thought that to be fully organized, a written plan must be devised so every employee could effectively assist in implementing the various projects of the company. When the staff mentioned to Miguelito about the importance of a written plan, Miguelito replied by saying: *"This company was organized without a written plan; it became successful without a written plan; it will continue to be so without a written plan." (Source: Business Organization and Management by Dr. Roberto G. Medina)* Case Questions: 1. How sound is Miguelito's arguments? Why do you say so? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_. 2. What do Miguelito's planning type? Why do you say so? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_. 3. Assuming that Miguelito will welcome suggestions, what will you say to effectively counter his arguments in connection to planning principles? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_. 4. What do you think is the relationship of planning to decision making? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_. **LESSON 2:** Organizing AND STAFFING 1. knewn and understood the concept of organizing 2. recognized the benefits of organizing and the steps to organizing; 3. compared and contrasted the different approaches to organizing; 4. knew and understood the various steps in staffing; 5. recognized the importance of staffing process 6. knew the functions of human resource #### Keywords  1. *What do you think is the significance of planning in every activity?* 2. *If you were to be a manager, what will be type of plan you will implement? Why?* 3. *What do you think is the relationship between planning and decision making?* **Let's Learn!** Other definition: - Organizing is the process of combining and coordinating productive resources in order to accomplish efficiently and effectively the established objectives of the organization. - According to Professor Warren Plunkett, organizing is a management function that establishes relationships between activity and authority. It has four distinct activities. These are the following: 1. Determine the activities to be performed to achieve organizational objectives. 2. Clarify the types of work and groups these into manageable work units. 3. Assign the work to individuals and delegates appropriate authority. 4. Constructs a hierarchy of decision-making relationships. - According to Professor Schumpter, the human factor is the key to the success of the organizing process. ***Benefits of Organizing*** The following are the benefits that a business can get from organizing: - Clear and specific job description. - Existence of coordination. - Presence of a formal structure. This is by means of the organizational chart. ***Steps in Organizing*** 1. *Evaluate plans and objectives.* 2. *Identify the various activities.* 3. *Group similar or related activities.* 4. *Assign activities with appropriate authority.* After grouping the activities, a person best suited to do the tasks are assigned to that certain group. 5. *Design a hierarchy of relationships.* ***Approaches to Organizing*** What are enumerated here are the various ways by which one can organize his business. 1. ***Functional approach.*** In this method, similar or related activities are grouped under one department. +-----------------------------------+-----------------------------------+ | Advantages | Limitations | | | | | - It makes supervision easier. | - As the organization grows, | | | quick decisions become more | | - It is easier to mobilize | difficult to get and there is | | specialized skills. | a possible difficulty in | | | coordinating functions. | | - It is helpful in the | | | efficient use of specialized | | | resources. | | +-----------------------------------+-----------------------------------+ 2. ***Geographic approach.*** +-----------------------------------+-----------------------------------+ | Advantages | Limitations | | | | | - Most suitable when different | - This is expensive because | | laws, policies, currencies, | this requires more facilities | | and cultures exist among the | and personnel. | | various regions. | | | | | | - In terms of marketing, it is | | | more efficient. | | +-----------------------------------+-----------------------------------+ 3. ***Product approach.*** This is applicable for businesses which offer a variety of products. +-----------------------------------+-----------------------------------+ | Advantages | Limitations | | | | | - Faster decisions; | - Higher cost of operations. | | | | | - Better coordination; and | | | | | | - Higher product visibility. | | +-----------------------------------+-----------------------------------+ 4. ***Customer approach.*** +-----------------------------------+-----------------------------------+ | Advantages | Limitations | | | | | - Can maximize customer | - May result in | | satisfaction since suitable | overspecialization which | | strategies will be | limits the areas of | | implemented to different | competence of individual | | types of customers. | managers. | +-----------------------------------+-----------------------------------+ 5. ***Matrix approach.*** +-----------------------------------+-----------------------------------+ | Advantages | Limitations | | | | | - Allows experts to be assigned | - Requires high interpersonal | | in crucial areas; | skills due to constant | | | interaction among team | | - Stimulates interdisciplinary | members; | | cooperation among the members | | | of the team; and | - May encourage power struggle | | | between the functional manger | | - Challenges employees. | and the project manager; and | | | | | | - May create conflicts in terms | | | of loyalty among the | | | employees. | +-----------------------------------+-----------------------------------+ ***Principal Organizational Concepts*** For proper management of an organization, the following concepts must be applied: 1. *Authority* a. *Line authority.* This is the direct supervisory relationship between superior and subordinate. b. *Staff authority.* This refers to the authority to provide advice or technical assistance to management or line managers. c. *Functional authority.* This is the authority delegated to the members of the staff department to control the activities of the other departments that are related to specific staff responsibilities. 2. *Delegation* This is the assignment of formal authority from a superior to a subordinate. *Points to remember regarding delegation:* - Responsibility always remains with the delegating manager. - When a subordinate accepts the authority and responsibility, accountability is created. This means that the subordinate is answerable to his superior for his actions. - Scalar principle. A clear line of authority from the top level to the bottom level of the organization makes delegation more effective and easier. - Unity of command. Each employee in the organization should report to only one supervisor. 3. *Span of control* 4. *Centralization* This refers to the extent of authority in an organization. There are factors which influence the degree of decentralization. These are the following: - External environment; - Size and growth rate of the organization; and - Profile of the organization. ***Informal Organization*** This is a group of individuals which has emerged out of personal and group needs of the members. This involves an interpersonal kind of relationship. The informal organization is classified into horizontal, vertical and mixed. The *horizontal type of informal organization* is composed of employees in the same department or across departmental lines which operate at the same organizational level. The *vertical type* is composed of employees from the different levels of the organization. The *mixed type* is a combination of employees from the different levels of the organization and the different work areas. ***Functions of the informal organization*** - Reinforce and sustain the social and cultural values of the members; - Provide the members the opportunities to satisfy their psychological needs; - Generate a faster system of communication for the members; and - Influence operation of the formal organization. **STAFFING** ***Staffing*** is part of the human resource department functions. Below are the functions of the human resource department: 1. *Human resource planning.* a. *Forecasting.* Determine personnel needs of the organization to sustain its growth and be able to exploit future opportunities and trends. b. *Human resource audit/inventory.* This provides information about qualification, age, abilities, interest and needs of present employees. 2. *Recruitment.* a. *Internal or within the organization.* +-----------------------------------+-----------------------------------+ | Advantages | Limitations | | | | | - Less expensive; | - Limitation of available | | | abilities and skills; | | - Employees are already | | | familiar with the | - The possibility of getting | | organization; and | new ideas is reduced; and | | | | | - Creates loyalty among the | - May encourage complacency. | | employees. | | +-----------------------------------+-----------------------------------+ b. *External.* 3. *Selection.* In here, job applications are evaluated and the most suitable job applicants are hired. The steps in the selection process are as follows: a. b. Assessment of job application forms. c. Preliminary interview. d. Testing/examinations. e. Background investigation/reference check. f. In-depth interview. g. Physical examination. h. Job offer 4. *Orientation.* - - His job - History of the organization - Policies - Work rules - Vision and mission of the organization - Employee benefits In addition, an employee's manual is introduced to the new employee and he is shown to the various facilities inside the organization. 5. *Training and development.* 6. *Performance appraisal.* - Inform subordinates on how they are being rated; - Identify subordinates for promotion or rewards; and - Determine subordinates who need further training. a. Supervisor rates subordinates; b. Group of supervisors rate subordinates; c. Group of peers rate a colleague; and d. Subordinates rate a supervisor. 7. *Transfer, promotion and demotion.* *Transfer* refers to a movement to a different job with similar pay and responsibility. Purposes of transfer: - To fill temporary job vacancies; - To train an employee for a higher job in preparation for a replacement of an employee who is about to resign or retire; and - To place employees who are not performing well in other jobs. *Promotion* refers to advancement in position with higher pay and responsibility. This serves as recognition of superior performance. - Promotions should be fair and reasonable. - This should be based on merit or performance. *Demotion* refers to a movement to a lower-status position. Many organizations prefer to give suspensions or penalties rather than demoting an employee. 8. *Separation.* - Employees have their labor unions which promote and protect their rights and interests. - For managers, their tenure of office depends on the trust and confidence of top management. - The major cause of resignation is job dissatisfaction. This can be attributed by several factors such as: work policies, interpersonal work relationship, working conditions, status and job security. - An exit interview is conducted to find out the reasons for resignation of an employee. ***Assessment time!*** **Case2 (Organizing).** *Read and understand the case very carefully and answer the questions that follow.* **THE NATIONAL SALES MANAGER** Pat, formerly a regional sales manager of Century Soap Company, had recently been promoted to national sales manager. Derek, Pat's immediate supervisor, had told him when he began his new job that his primary task would be to bring up all four national sales regions to a set sales quota while pursuing a new strategy of rapidly capitalizing on emerging regional market trends. But Pat anticipated problems with one regional sales manager, Ken. Although he like the man personally, he felt that Ken exerted excessive control over operations in his region and that the result was a lack of initiative on the part of the district sales managers who reported to Ken and the salespeople themselves. While still a regional manager, Pat had often pointed out to Ken what he regarded as advantages of delegation. He had noted that when a regional manager insists on approving all key decisions by his or her district managers, and countermanding decisions made without his explicit consent, his or her subordinates tend to protect themselves by taking no risks and deferring even minor decisions until they can be cleared by the regional manager. The result, Pat predicted, would be a less flexible response to market pressures and a reduced share of the market. However, Ken had not taken these comments seriously; he believed in making sure that every subordinate knew that he or she was under firm control. "I have learned the hard way," he like to say, "that if you do not make sure that every salesperson is doing the job right, some of them won't do their job right." At the time of his promotion, Pat resolved to put his biases aside and give Ken a fair, unprejudiced chance. In his visits to Ken's region, however, Pat was distressed to find out that many of his fears seemed to be borne out. Salespeople were reluctant to make decisions that might have improved the market position of the company's products without the approval of their district manager, who in turn was often reluctant to grant that approval without checking with Ken. The result was a conservative and mostly uniform approach to an increasingly volatile and segmented market, with, at best, slow adaptation to local circumstances. Thus, Ken's region was falling behind the others in meeting the new sales quotas. Even so, Pat clung to his resolve to keep his preconceived feelings from affecting his judgment. He felt that as differences in managerial style were to some degree a matter of taste, it would be unfair to insist that all his managers operate his way. He was also aware of the informal grapevine between the four regional managers, and he feared that if he made an issue over what was essentially a philosophical difference between him and one of his subordinates, the others might hear of it and lose some of their respect for him. At a monthly meeting with Derek, Pat confessed that the deviations between forecasted and actual sales were due almost entirely to the inability of one region---Ken's---to keep pace with the records of the other three. In fact, under the new strategy, sales had even begun to decline in Ken's region. Derek said that Pat's initial reluctance to insist on a change in management style was perhaps understandable, but as more than a year had now passed since Pat had assumed his new job, his continued inaction could hardly be justified. "You should not have waited until the tide began to run against us in that region," said Derek. He accused Pat of bending over backward in order to preserve his image of himself as a fair and judicious person. Derek did not, however, specify the action he wanted Pat to take. Pat then called in Ken for a private meeting. Ken interpreted the situation entirely in terms of unexpected problems---a "streak of bad luck," as he put it---and the incompetence of a district manager whom he proposed to fire. Pat noted that the sales decline was roughly uniform in all districts of Ken's region and that whatever the district manager's faults might be, she could not be blamed for the region's poor showing. He then asked Ken to attempt a sharp and sustained change of approach, delegating broadly to his district managers and encouraging them to do likewise. Although Ken was skeptical, he agreed to try. During the next several weeks, the sales decline was detained in this region, although virtually none of the last market share was recovered. Ken went to some lengths to assure Pat of the extent to which he had delegated decisions. However, he also reported that the policy was working no better than he thought it would, because the district managers continued to seek his "advice." At this point, Pat recognized that abrupt changes in the behavior of the district managers were most unlikely, especially as they had been selected by Ken himself on the basis of their compatibility with his management style. Pat's real problem was to decide whether he could accept at best a gradual change in the way this region operated or whether he would have to take more drastic action. *Source: Management by James A.F. Stoner and Charles Wankel* Case Questions: 1. What are the issues in this case? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_. 2. Contrast Pat's and Ken's attitudes towards authority and delegation. Which is more effective? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_. 3. Was Derek negligent in not giving Pat specific instructions for dealing with Ken? Justify your answer in relation to approaches in Organizing. \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 4. What should Pat do now? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_. **\ ** **Case 3 (Staffing).** Read and understand the case and answer the questions that follow. **NO SUCH MANAGER** Mr. Reganam, the school's administrator, was trying to contact the Human Resource Manager of Pepy Electronics Company by telephone. He was hoping to interest him or her in taking on some of the school's students for the OJT program. As he was being transferred from one extension to another, and having to repeat himself over and over again, Mr. Reganam, usually a patient man, was getting increasingly frustrated. Mr. Reganam: "Could I speak to your Human Resource Manager, please?" Voice: "We don't have a Human Resource Manager." Mr. Reganam: "How about your Public Relations Manager? Maybe he or she can help me." Voice: "We don't have a Public Relations Manager either. What is it about?" Mr. Reganam: "I am from SL State University and I would like to speak to someone in charge regarding the placement of some of our students with your company on an OJT program. Who could I speak to?" Voice: "Well I suppose you could speak to our Administration Manager, but he's not in at the moment. If you like, I could put you through his assistant, Ms. Lim." Mr. Reganam: "Ah yes! Thank you very much." Ms. Lim: "Ms. Lim here. May I help you?" Mr. Reganam: "Yes indeed, Ms. Lim! I am Mr. Reganam for SL State University. I am following up our letter to Pepy Electronics regarding our OJT program. I believe you may be able to help us by placing some of our students with your company for about four weeks. The main objective for such an attachment is to enable them to pick up some real life working experience, as none of them has worked before." Ms. Lim: "I'm afraid I can't make that kind of decision. You will have to wait for my manager. He does all the hiring." Mr. Reganam: "Does he also decide on compensation, employee relations, discipline, training, etc.?" Ms. Lim: "Oh no. he doesn't do all those. Compensation is done by our finance people. Discipline and training are done by individual managers whenever their staffs are concerned." Mr. Reganam: "What about insurance? What if your worker should injure himself?" Ms. Lim: "When that happens, one of our clerks can take care of that." Mr. Reganam: "Please excuse me for sounding nosy, but I am really curious. With so many people performing different human resource activities, don't you encounter any problems?" Ms. Lim: "W-e-ll, we do have some problems, of course, but they are quite rare." As Mr. Reganam found out from the students much later, there were a lot of problems in Pepy Electronics. Some students, who were supposed to have exposure to several sections on a rotation basis, were stuck at one job due to a miscommunication between the section heads. Another problem involved the student's allowance payments. Instead of receiving their allowances on payday, which occurs every week, the students found that the Finance Department was not even aware of their existence. By the time the memo from the Administration Manager reached the Finance Manager, the latter was away on urgent leave, and when his approval was finally received it was too late for processing. Through the students, Mr. Reganam also found out that much inconsistency occurred in the various interpretations of policies. Different heads of departments would interpret certain policies as they perceived them and implementation was generally left to their clerks. Needless to say, the net result of the actions taken differed drastically from what was originally intended. Such inconsistencies caused much confusion within the organization, often at the expense of operations and scheduling, quality and manpower. Questions: 1. What are some of the problems faced by Pepy Electronics and how can Pepy overcome them? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_. 2. What does the business need? Why do you say so? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_. 3. Identify, from this case, at least two human resource functions which were inadequately or improperly carried out. Explain your answer. \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.  - Planning is necessary in making management decisions. Wrong planning results in wrong decisions. - Plans establish the objectives of the - Planning is effective if it produces the desired results. **LESSON 1:** Leading through motivation At the end of the unit, the students must have: 1. explained leading through motivation; 2. contrasted the different models of motivation; 3. discussed the various theories of motivation and explained how these are applied to leading; 4. compared the leadership theories among each other and know how these theories impact the different leadership styles; and 5. recognized their level of preference or comfort with leadership characteristics and skills. #### Keywords  - The ability of the manager to lead his subordinates towards the attainment of organizational objectives primarily depends on his effective motivation and leadership. - The manager must know and understand the needs and interests of his subordinates. To motivate them is to satisfy first their needs and interests. ***Motivation Models*** Below are different forms of motivating workers. 1. *Traditional model.* - The proponent of this model is Frederick Taylor. - This model states that the job of the manager is to perform repetitive tasks in the most efficient way. - This model motivates workers with high wages. - Incentive is in the form of monetary rewards. 2. *Human relations model.* - The proponent of this model is Elton Mayo. - According to this model, social needs and the feeling of importance are the factors that motivate people. - This model motivates workers through treating them well and with consideration. 3. *Human resources model.* - The proponents of this model are Douglas McGregor, Abraham Maslow and Chris Argyris. - This model states that employees are motivated not only by money, or the desire for satisfaction, but also by the need for achievement and meaningful work. - This model encourages managers to share responsibility for achieving organizational and individual objectives. ***Motivation theories*** The following will provide a guide to managers on what to give to their employees to keep them motivated. 1. *Maslow's Hierarchy of Needs theory* - This is advocated by Abraham Maslow. 2. *Herzberg's Two-Factor theory* - This is advocated by Frederick Herzberg. - The hygienic factors produce job dissatisfaction while motivation factors lead to job satisfaction. **Hygienic factors:** a. Salary b. Job security c. Working conditions d. Status e. Company policies f. Technical supervision g. Interpersonal relations a. Achievement b. Recognition c. Responsibility d. Advancement e. Professional growth f. Nature of work - According to Peter Drucker, responsibility and not employee satisfaction is needed to motivate people to achieve peak performance. Financial rewards and incentives can only motivate a worker if he is ready to assume responsibility. Ways to reach the goal of a responsible worker: - Careful placement - High standard of performance - Adequate information for self-control - Opportunities for participation that will create a managerial vision 3. *McClelland's Need Achievement theory* - The needs of workers are: achievement, power and affiliation. - This shows that people are motivated to perform their jobs due to compelling used for personal achievement, rather than for reasons of financial rewards. 4. *Expectancy theory* - The advocate of this theory is Victor Vroom. - He explains that motivation is a result of strong desires (valence) and strong beliefs (expectancy). - The degree of effort depends on expected rewards for performance and the probability of achieving the goal, then satisfaction. 5. *Reinforcement theory* - This theory is advocated by B.F. Skinner. - This theory states that the behaviors of people depend on the attitudes of or treatments by their superiors. If they are told they are winners, they become winners. - Skinner claims that jobs well done should be rewarded. 6. *Equity theory* - This theory states that rewards or punishments in relation to performance should be fair. Otherwise, they adversely affect the morale of employees. ***Leadership Role of Managers*** 1. *Educator.* 2. *Counselor.* 3. *Judge.* Managers are the ones who will assess the performance of his subordinates, enforce policies and regulations of the company and settle conflicts and disputes among subordinates. 4. *Spokesperson.* Managers are the ones who will bring the voice of his subordinates to top management. ***Leadership Theories*** 1. Situational leadership theory. - This is developed by Paul Hersy and Kenneth Blanchard. - This theory suggests a kind of leadership that is dynamic and flexible. Meaning to say, the style of leadership employed by the leader depends on the motivation, ability and experience of his subordinates. 2. Contingency Theory of Fiedler. - This is developed by Fred Fiedler who opposed the situational leadership theory. - He identified three leadership situations that help in determining effective leadership. These are: leader-member relations, task structure and position power. 3. Path-goal theory. - This is formulated by Robert House and Martin Evans. - This theory states that managers should reward their subordinates to encourage or motivate them to do their tasks for the achievement of the objectives of the organization. ***Leadership Styles*** 1. Autocratic leaders. - These are the kind of leaders who impose their authority to their subordinates. What the leader says, the subordinates will follow wıthout questions. 2. Participative leaders. - Subordinates participate in matters affecting them such as in planning, decision-making and implementation of policies. 3. Free-rein leaders. - These are the kind of leaders who give their power to subordinates and allow them (the subordinates) to make their own plans and establish goals by themselves. ***Assessment time!*** **Case 4** Read and understand the case very carefully and answer the questions that follow. **CENTER CITY YWCA** After three days of interviewing for the job of director of the Center City YWCA. Bowen was having lunch with Pierce, the retiring director. When Pierce offered her the position, Bowen hesitated. "You still aren't sure?" Pierce asked. "Tell me what's bothering you." "As I've told you," Bowen replied, "I'm looking for a job with a challenge. I would expect the YW to face financial difficulties---in today's economy, every nonprofit agency has these problems. But despite all the ideas and energy you have---not to mention the wide diversity of programs---the staff seems uninspired and worn out." Pierce smiled. "That's true. You've hit on one of our biggest problems. As I've told you, the YWCA has undergone major changes in goals and programs over the past few decades. We no longer serve as a dormitory for young women when they first move to the city. Nor are we simply a place for a quick swim after work. At the national convention, the YWs declared our major targets to be relevant programs for women, youth and minorities. And yet our image in Center City---and even for some of our staff---is clearly that of a community recreation center, not a powerful force in the women's movement." Bowen became animated. "I can see the types of programs you have: bilingual activities for Hispanics, creative skills classes, the Women's Center, the Rape Crisis Center, a battered wives program, youth programs, a nursery as well as a health club for women, men and children, and a small residence. The building is in good shape. Where's the problem?" Pierce paused. "As you know, a lot of our staff in the sixties and seventies started as volunteers and became paid staff when we got funding. But the commitment of the social movement has faded at the same time that government grants were cut back. Although the neighborhood is much safer, thanks to urban renewal, many of our traditional big contributors have moved to the village. Membership has not really increased substantially. So we've had to cut some programs, lose staff and freeze wages. As a result, we don't have enough people to maintain the building or keep up the records, let alone reach out into the community." "But surely you must still have some idealists around," Bowen commented. "Yes, we do. But many have left, and most of our staff does just the minimum work required, for barely adequate wages." Pierce continued, "The morale problem is more complex. In the seventies we adopted the strong affirmative action program of the National YWCA; as a result, our staffs today reflect the racial composition of Center City---half white, half minority. This wasn't easy. Qualified minority professionals are difficult to recruit. We lost some board members and long-term less qualified people were being hired to meet quotas. Further, we lost many white unintentionally segregated. But with our limited finances it's hard to create new programs and recruit really talented staff." Bowen listened carefully as Pierce added, "It's very frustrating. We have the facilities and some good programs---but I haven't been able to communicate this to the staff or to the community. I don't have time to institute better record-keeping and an organized system of promotion and raises. So you see, we have a lot of the basic resources, but also a lot of problems." Bowen smiled and sat back. "I think I understand the situation. It won't be easy to communicate my enthusiasm, but I'd like to try. I'll take the job." "I'm very pleased, "responded Pierce. "And remember, I intend to stay a member of the YW, so you can always call on me for help. Good luck." *Source: Management by James A.F. Stoner and Charles Wankel* Case Questions: 1. What are the major problems facing Bowen? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_. 2. If you were Herzberg, how would you advise Bowen to manage YWCA as related to Models of Motivation? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_. 3. As to Motivation Theories, what will be your recommendations for Bowen in leading her staff? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_. 4. How might situational leadership theory apply to this case? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_. 5. Among the three Leadership Styles, in your own preferences, what do you think might be the best too solve the situation? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_. **LESSON 2:** CONTROLLING 1. understood what is control and recognized its importance; 2. distinguished the different types of control and named examples of each type as observed in different organizations; 3. discussed how a control system becomes effective; and 4. valued the importance of control not only in business but in everyday activities. #### Keywords  Imagine yourself as a manager, among the three Leadership Styles, in your own preferences, what do you think might be the best to implement in your organization? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_. ***Why is control important?*** - Without control, several negative possibilities may happen such as: funds are wasted, materials and machines are not properly used, methods are inefficient, and manpower is ineffective. - The presence of competitors, introduction of new technologies and imposition of new government regulations can be threats or opportunities that affect an organization and this is where controls are needed. - In an organization with regional or international operations, without control, top management form the headquarters finds it difficult to efficiently manage such a giant organization. - A control system is needed to discover human errors before they turn out to be critical or unmanageable. ***The Control Process*** The basic steps in the control process are the following: 1. *Establish standards of performance.* The standards are the objectives or targets set by the organization. 2. *Measure the performance.* This is the step where the actual performance is determined. 3. *Take corrective action.* If the performance does not conform to the standard, corrective actions are taken. ***Types of Control*** (William Newman) 1. *Pre-action controls.* These controls are done prior to the activity. Example is budgeting of the productive resources of the organization. 2. *Steering controls.* These controls are administered before the activity is completed. 3. *Screening controls.* These controls provide the conditions to be met before operations continue. 4. *Post-action controls.* These controls measure the results of a completed activity. ***Features of an Effective Control System*** The following are the attributes that a control system must have in order to be effective: 1. *Accurate and adequate.* The data has to be correct and sufficient. Wrong data result in wrong decisions. 2. *Timely and relevant.* It is difficult to solve problems if data are not related to the problem at hand. Likewise, if data is relevant yet not available when needed, still problems cannot be solved. 3. *Economically and organizationally realistic.* The control system has to be compatible with the organization and the cost of installing such a system must be less or equal to the benefits that it will generate. 4. *Objective, measurable, and comprehensible.* Subjective and qualitative data make it difficult to measure actual performance and a control system that is difficult to understand creates confusion, frustration and more likely noncompliance. 5. *Flexible and acceptable.* The control system must be able to adapt to the dynamics of the organization and at the same time accepted by the employees. ***Financial Controls*** 1. *Financial Statements.* These provide controls on the organization's profitability, liquidity, and general financial conditions. a. *Balance Sheet.* This shows the assets, liabilities and net worth of the organization. b. *Income Statement.* This records the income and expenses of the business and thus profit or loss is determined. 2. *Ratio Analysis.* Ratios provide information needed to evaluate the financial performance or condition of the organization. These may be compared to the past performances of the business or to other businesses in the same industry. a. Profitability ratio = profits after taxes/total assets b. Liquidity ratio = current assets/current liabilities c. Activity ratio = sales/inventory d. Leverage ratio = total debts/total assets 3. *Break-even Analysis.* This shows the relationship between total revenue (price \* quantity sold) and total cost (fixed cost + variable cost). 4. *Budget* This is a statement of sources of funds and the corresponding planned activities to be funded in a given specific period. This serves both as a plan and a control. 5. *Audits.* These are formal investigations which are intended to verify if records, reports, statements, and other relevant information are correct. Also, these are used to determine if information or data are in conformity with the rules and procedures of the organization. ***Production Controls*** 1. *Gantt chart.* This is used for planning and controlling time schedule of projects. **Activities** January February March April ---------------- --------- ---------- ------- ------- Machinery Assembly Transport 2. *Network Techniques.* a. *Program Evaluation Review Technique.* This uses estimates of the time required to complete tasks. This schedules and controls projects whose task completion times cannot be fairly predicted with accuracy. This uses four categories of time estimates namely: positive, most probable, negative and expected. Activity Description OT (in days) MPT(in days) PT(in days) ET(in days) ---------- ------------- -------------- -------------- ------------- ------------- A Machinery 4 5 9 6 B Assembly 8 10 18 12 C Transport 5 7 12 8 b. *Critical Path Method.* This is used to schedule and control projects whose task completion times can be fairly predicted with accuracy. \(2) (8) Start (5) Finish (2) (6) (5) (6) 3. *Quality control.* Through quality control, defects or deviations are corrected early in each stage of production. a. Inspection. b. Testing. c. Sampling techniques. ***General management controls*** 1. *Management Information Systems.* This is a computer-based information system. This is useful for effective planning, decision-making, and control. 2. *Inventory control system.* This ensures the orderly flow of supplies, raw materials, or finished products in an office, factory or shop. Demand for products should match supply of products. The job of an inventory control system is to minimize costs and maintain inventories at optimum levels ***Assessment time!*** **Case 5** *Read and understand the case very carefully and answer the questions that follow.* **TAKING THE PULSE OF TRUCKING** "You just can't get on the road and run a truck anymore," Kenny, a driver for 18 years, said as he finished his run at the terminal of the Kimberly-Clark Corporation in New Milford, Connecticut. Kenny's truck, like all new 50 leased from Ryder System Inc., is equipped with electronic devices that monitor the driver. An electronic engine control system by TRW Inc. sets the top speed at 58 miles per hour and the minimum at 53, taking most control of cruising speed out of the driver's hands. Another TRW system records a vast variety of details about each trip, from the number of revolutions per minute---an important measure of fuel economy---to the length of time the truck runs at a particular speed and the duration of the unloading period. After the fuel crisis, truck manufacturers introduced modifications that brought down the maximum speed---to 60 mph., from 70or 75---and thus improved fuel mileage. Most of the changes were mechanical, however. Now, hundreds of trucking companies are testing and installing sophisticated electronic devices capable of controlling and monitoring the driver more closely. And they report savings well into the millions of dollars. Besides TRW, the other major developers and manufacturers of electronic devices for trucking are Engler Instruments, Rockwell International Automotive Electronics, and Argo Instruments. Many are developing still more sophisticated devices. "In the next three to five years there will be a lot of microcomputers put on the truck," said James R. Barr, environmental specialist at the American Trucking Association. The trend will probably be "to take more and more control away from the driver," he said. Drivers, predictably, are unhappy with the new controls. They complain that it is often impossible to overtake cars. And when they finish their trip, they must take the device out of the cab and into the check-in room, where it is plugged into a computer and prints out an electronic history of the trip. "It's like someone riding with you and writing down everything you did," Kenny said. "It bores you to death," said Gus, a driver with the Kimberly Clark Integrated Service Corporation, a subsidiary that runs the company's fleet of 200 trucks. Gus said that "on long stretches of road you don't have a lot to do to keep your eyes open." He added, "The other problem is that when you get in delays you can't make up the time." But to Ralph, the fleet manager for Kimberly Clark, which is the largest user of these devices, they have been a blessing. He said that fuel economy with the new devices, which became available to the fleet in July, has gone from an average of 5.99 miles a gallon to 7.1. He calculated that for each tenth of a mile per gallon the company saved \$85,000 in fuel costs. Jerry Weeks, president of the Kimberly-Clark subsidiary, estimated that a saving of one mile per gallon represents a cut of about 22 percent in fuel costs. Thus, the company, which has an annual fuel bill of \$5 million, expects to offset quickly the cost of the devices, \$1,400 per truck. At Kimberly-Clark, the recording device has not been used to confront drivers whose habits may interfere with top fuel efficiency. But the company is using the information on when a truck stops and backs into a customer's loading dock as a means of charging customers who delay a driver. It has been able to collect a fee of \$25 an hour for delays. Customers cannot challenge the tamper-proof recorders. Kaspar, director of United States operations for the subsidiary, said, while they would often challenge the drivers' logs. Other companies have used the computer printouts to confront their drivers with bad driving patterns. Al Bado, transportation manager of Royal Foods Distributors in Woolbridge, N.J., one of the Fleming Companies, said the company had set up performance parameters for the drivers. After a trip, each of the company's 105 drivers brings in his cartridge, which provides a quick readout on such information as how long he idled and whether he was speeding or going over the revolutions-per-minute limit for each gear. If a driver has exceeded the limits, he is given counseling on his driving habits. If a driver still does not change, Mr. Bodo said, "we have taken disciplinary action." These may be warnings at first but can lead to temporary suspension. The system has enabled Royal Foods to get a 6 percent increase in fuel economy, from 5.4 miles a gallon last year to 5.69 this year, he said. Technology of the Future Trevor O. Jones, vice-president and general manager of TRW's transportation electronics group, said that the company has plans for devices that can improve the driver's comfort and safety as well as efficiency. The technology is already here for systems that could control the climate in the cab and adjust the seat to lessen shock and vibration. A power steering assist would also allow a driver to select a steering "feel" from light to heavy, depending on preference. Other possibilities for which the technology is in place include an engine protection system that could warn drivers to shut off the engine if it faced damage from a malfunction, a radar unit that could warn drivers if they are on a collision course with another vehicle or object, and a device that could warn drivers when they become drowsy. All these devices, Mr. Jones said, could someday be tied to one system that could feed information continuously to a computer monitored by the fleet manager. The manager could correct inefficiencies, record road speeds, idle times, and fuel consumption, and monitor other data to improve efficiency. However, he added, the costs of such systems, which derive from aerospace technology, may delay their introduction into the trucking industry by five to ten years. *Source: Management by James A.F. Stoner and Charles Wankel* Case Questions: 1. Why has the trucking industry found it profitable to install computerized controls in its vehicles? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_. 2. Describe the monitoring and controlling systems in terms of the four basic categories of control methods. \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_. 3. If you were a truck driver, how would you feel about such devices? Would they make the job more, or less, attractive? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_. 4. Do you think organizations should rely on self-monitoring by employees in situations like this one? In other types of situations? Why? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_. 5. As the manager of a trucking firm, how would you explain to your drivers why installation devices to improve driver safety and comfort are lagging behind the use of devices to improve driver productivity? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.  - Without control, several negative possibilities may happen - Without control, top management form the headquarters finds it difficult to efficiently manage such a giant organization. - Control system is needed to discover human errors before they turn out to be critical or unmanageable.