ORGANIZATION MANAGEMENT

Chapter 6
 1. LEADING

• management function, which involves influencing others to engage in

the work behaviors necessary to reach organizational goals.
LEADERSHIP POWER -it is the influence that leaders have over their followers. It
persuades others to support their efforts and as they ask.
a) Legitimate Power – a person who occupies a higher position has legitimate
power over persons in lower positions within the organization.
b) Reward Power – when a person has the ability to give rewards to anybody who
follows order or request, he is said to have reward power.
c) Coercive Power – when a person compels another to comply with orders through
threats or punishment, he is said to possess coercive power.
d) Referent Power – when a person can get compliance from another because latter
would want to be identified with the former, that person is said to have referent
power.
e) Expert Power – expert provide specialized information regarding their specific
lines of expertise.
 2. MOTIVATION

• the process by which a person’s efforts are energized, directed and

sustained towards attaining a goal.
• It refers to the steps of managers can take to inspire their teams to
achieve more and support their workplace experience
 E A R LY T H E O R I E S O F M O T I VAT I O N

1. Maslow’s Hierarchy of Needs Theory – states that there are 5 basic needs of man starting from the
bottom triangle:
• Physiological Needs – food, drink, shelter, sex and other physical requirements.
• Safety Needs – security and protection from emotional and physical harm
• Social Needs – affection, belongingness, acceptance and friendship.
• Esteem Needs – self respect, autonomy, achievement, recognition, attention.
• Self Actualization Needs – growth, self fulfillment, potential, love

2. McGregor’s Theory X and Theory Y.

• Theory X – states assumption that employees dislike work, lazy, avoid responsibility and must be
forced to perform.
• Theory Y – states the assumption that employees are creative, enjoy work, seek responsibility and
can exercise self direction.

3. Herzberg’s Two Factor Theory/Motivation Hygiene Theory – intrinsic factors are related to job
satisfaction and motivation whereas extrinsic factors are associated with job dissatisfaction.
Intrinsic factors- Motivated to perform an activity because it is internally rewarding.
Extrinsic factors- motivated to perform an activity in order to gain external reward in return.

4. McClelland’s 3 Needs Theory – states that every person has one of three main driving motivators:
achievement, power and affiliation.
 3. LEADERSHIP THEORIES

• Leadership theory describes how and why certain individuals become leaders
• It focus on the characteristics and behaviors that people can adopt to enhance
their leadership ability.
Traits of Effective Leaders:
1.Personal Drive – persons with drive are those identified as willing to accept responsibility,
possess vigor, initiative, persistence, and health.
2. Desire to Lead – persons who appear to have all the qualifications for leadership, yet they
cannot become leaders because they lack one special requirement the desire to lead.
3. Personal Integrity – integrity includes honesty, honor, incorruptibility, rectitude,
righteousness, uprightness, and other similar virtues.
4. Self-Confidence – the activities of leaders require moves that will produce the needed
outputs. For the moves to be continuous and precise, self-confidence is necessary in leadership
functions such as conceptualizing, organizing, and implementing activities.
5. Analytical Ability –a leader with sufficient skill to determine the root cause of the problem
may be able to help the subordinate to improve his production.
6. Knowledge of the Company, Industry, and Technology – leader who is well informed
about his company, the industry where the company belongs and the technology utilized by the
industry, will be in a better position to provide directions to his unit.
7. Charisma – when a person has sufficient personal magnetism that motivates people to
follow his directives, this person is said to have charisma.
8. Creativity – ability of the manager to find new and better ways of accomplishing his work.
9. Flexibility – people differ in the way they do their work. One will adapt a method different
from another person’s method. A leader, who allows this situation as long as the required
outputs are produced, is said to be flexible.
Behavioral Approaches to Leadership Styles
1. Ways Leaders Approach People. In motivating people, leaders use a positive or negative approach.
2. Ways leaders use power – leader’s styles also vary according to how power is used. They consist of autocratic,
participative and free-rein.
• Autocratic Leaders – leaders who make decisions without consulting subordinates are called autocratic
leaders. Motivation takes the front of threats, punishment, and intimidation of all kinds.
• Participative Leaders – when a leader openly invites his subordinates to participate or share in decision
making, policy-making, and operation methods, he is said to be a participative leader.
• Free-Rain Leaders – leaders who set objectives and allow employees or subordinates relative freedom to do
whatever it takes to accomplish those objectives.
3.Leaders orientation towards task and people – leadership may be classified according to how leaders view task
and people. A leader may either be:
• Employee oriented – when a leader considers employees as human being intrinsic importance and with
individuals and personal needs to satisfy.
• Task oriented – when a leader places stress on production and the technical aspects of the job and the
employees are viewed as the means of getting the work done.
Contingency approaches to leadership style
The contingency approach refers to that effort to determine through research which managerial
practices and techniques are appropriate in specific situations. The following are the contingency
approaches:
1. Fiedler’s Contingency Model. Fred Fiedler believes that leadership is effective when the leader’s
style is appropriate to the situation. The situational characteristic is determined by three principal
factors:
• The relation between leader and follower
• The structure of the task
• The power inherent in the leader’s position
The situational characteristics vary from organization. To be effective, according to fiedler, the
situation must fit the leader. If this is not so, any of the following may be tried:
• Change the leader’s traits or behavior
• Select leaders who have traits or behavior fitting the situation
• Move leaders around in the organization until they are in positions that fit them
2. Hersey and Blanchard Situational Leadership Model. The situational leadership model develop
by Hersey and Blanchard suggest that most important factor affecting the selection of a leader’s style
is the development (or maturity) level of the subordinate.

Blanchard and others elaborated on the leadership styles appropriate for the various maturity
levels of subordinates. They are the following:
• Directing – is for people who lack competence but are enthusiastic and committed. They need
direction and supervision to get them started.
• Coaching – is for people who have some competence but lack commitment. They need direction
and supervision because they are still relatively inexperienced.
• Supporting – is for people who have competence but lack confidence or motivation.
• Delegating – is for people who have both competence and commitment.
3. Path-Goal Model of Leadership. The path-goal model of leadership espoused by Robert J. House and
Terence R. Mitchell stipulates that leadership can be made effective because leaders can influence
subordinate’s perception of their work goals, personal goals and paths to goal attainment.
By using the path-goal model, it is assumed that effective leaders can enhance subordinate motivation by:
• Clarifying the subordinate’s perception of work goals
• Linking meaningful rewards with goal attainment
• Explaining how goals and desired rewards can be achieved.
The Path-Goal Process
The leadership styles, which may be used by path-goal proponents, are as follows:
•Directive Leadership – when the leader focuses on clear task assignments, standards of successful
performance, and work schedules.
•Supportive Leadership – when subordinates are treated as equals in a friendly manner while striving to
improve their well-being.
•Participative Leadership – when the leader consults with subordinates to seek their suggestions and then
seriously consider those suggestions when making decisions.
•Achievement – Oriented Leadership – when the leader sets challenging goals emphasizes excellence, and
seeks continuous improvement while maintaining a high degree of confidence that subordinates will meet
challenges in a responsible manner.
 4. COMMUNICATION

• Effective Communication is significant for managers in the organizations so as

to perform the basic functions of management, i.e., Planning, Organizing,
Leading and Controlling. Communication helps managers to perform their jobs
and responsibilities.
1. VERBAL COMMUNICATION- Verbal communication occurs when we engage in speaking with others.
It can be face-to-face, over the telephone, via Skype or Zoom, etc. Some verbal engagements are informal,
such as chatting with a friend over coffee or in the office kitchen, while others are more formal, such as a
scheduled meeting. Regardless of the type, it is not just about the words, it is also about the calibre and
complexity of those words, how we string those words together to create an overarching message, as well as
the intonation (pitch, tone, cadence, etc.) used while speaking. And when occurring face-to-face, while the
words are important, they cannot be separated from non-verbal communication.

2. NON-VERBAL COMMUNICATION- What we do while we speak often says more than the actual
words. Non-verbal communication includes facial expressions, posture, eye contact, hand movements, and
touch. For example, if you’re engaged in a conversation with your boss about your cost-saving idea, it is
important to pay attention to both the their words and their non-verbal communication. Your boss might be in
agreement with your idea verbally, but their nonverbal cues: avoiding eye contact, sighing, scrunched up
face, etc. indicate something different.

3. WRITTEN COMMUNICATION- Whether it is an email, a memo, a report, a Facebook post, a Tweet, a

contract, etc. all forms of written communication have the same goal to disseminate information in a clear
and concise manner – though that objective is often not achieved. In fact, poor writing skills often lead to
confusion and embarrassment, and even potential legal jeopardy. One important thing to remember about
written communication, especially in the digital age, is the message lives on, perhaps in perpetuity. Thus,
there are two things to remember: first, write well – poorly constructed sentences and careless errors make
you look bad; and second, ensure the content of the message is something you want to promote or be
associated with for the long haul.
4. LISTENING- The act of listening does not often make its way onto the list of types of communication.
Active listening, however, is perhaps one of the most important types of communication because if we cannot
listen to the person sitting across from us, we cannot effectively engage with them. Think about a negotiation –
part of the process is to assess what the opposition wants and needs. Without listening, it is impossible to assess
that, which makes it difficult to achieve a win/win outcome.

5. VISUAL COMMUNICATION- We are a visual society. Think about it, televisions are running 24/7,
Facebook is visual with memes, videos, images, etc., Instagram is an image-only platform, and advertisers use
imagery to sell products and ideas. Think about from a personal perspective – the images we post on social
media are meant to convey meaning – to communicate a message. In some cases that message might be, look at
me, I’m in Italy or I just won an award. Others are carefully curated to tug on our heartstrings – injured animals,
crying children etc.
 5. MANAGEMENT OF CHANGE AND
DIVERSITY

• Refers to organizational actions that aim to promote greater inclusion of

employees from different backgrounds into an organization’s structure through
specific policies and programs
 6. FILIPINO AND FOREIGN CULTURES

• Filipino owned organizations exhibit a different organizational cultures as

compared to their foreign counterparts. Filipino and foreign culture in
organizations exert big influence on how managers do their functions and how
their subordinates respond to rules and regulations and leadership styles.
Organizational culture is a critical factor in numerous organizational and
endeavors