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Guimaras Polytechnic State College
School of Graduate Studies
Course No: PA 204Descriptive Title: Organization
and Management
Professor: Dr. Melba B. Sullivan
Reporters:Marjoelina D. Didulo,Danes C. Ganancial, Ding Relano,
Yvone Saplada and Zenaida Magan
UNIT IV: Philippine Management Concepts
PINOY MANAGEMENT
Chapter 5
Corporate Goals in Starting Up
SMALL COMPANY PROBLEMS
According to Robert Buchele, the small company has many problems,
mainly:
1. Mga problema sa pagsisimula(Starting up problems). These are:
a.
Kulang ng(Lack of) management know-how.
b. Walang(No) bookkeeping or accounting. This refers to about 90% of
small businessmen and practitioners like doctors and lawyers.
c. Kulang ng kapital (Lack of capital). Because the owner started the
business with too much enthusiasm, too much wishful thinking.
2. Mga problema sa pera(Money problems). These are:
a. Kulang ng dunong sa (Lack of skill in) cash flow management. This
means the owner has a hard time calculating the cash that must be paid
out during the same period. He either does not do any cash planning or
he just spends as the money comes, and scrapes around for funds when
he has to spend.
b. Gusto (Wants) profit overnight. Pabilisan (Quick work) instead of
working for stability or a healthy cash position.
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3. Mga problema sa delegation(Delegation problem). These are:
a. Solo flight operation: only one man trying to do everything
b. Walang (No) paper documents. No paper work. Hindi mahilig sa
pagsulat ng(Uninclined to write) important decisions. This is fatal in the
long run.
4. Problema sa leadership(Leadership problem). These are:
a. No change or improvements in working habits when new skills are
needed. For example, the owner may be an engineer but needs
marketing salesmanship or financial skills however, he does not bother to
require the needed skills.
5. Financial crisis
a. No money and no creditors, or when interest rates are too high.
6. Succession crisis
a. When the boss retires, dies, or becomes incapacitated, and there is no
succession or control. The Mrs. or son takes over and, if they are not
prepared, the problems become more complex.
LADDER OF SUCCESSION
Pinoy management demonstrates the following ladder of succession:
1. First, the owner is also a manager, usually along with the wife.
2. Second, the sons or daughters become the mangers.
3. Third, the sons become the owners. In this case, either two things
happen: sumasabog ang negosyo(the business is ruined) or it becomes
more progressive and the son associates with others.
4. Fourth, the professional mangers take over.
EARLY TRAINING OF MANGERS
Professor Melito Salazar Jr. has noted that children who are encouraged to
be productive develop the positive values of self-reliance, independence, and
hard work at an early age. In rural societies, artisan parents transfer their art or
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craft to the children. The village blacksmith, for example, is expected to train his
young sons in his shop, who then take over when the time comes. A similar
transfer of skills takes place in urban communities. In the cities, a trade or a
business is looked upon as something to be handed down to younger
generations, much like prized legacy. Thus, we find families of printers like the
Benipayos and families of food entrepreneurs like Reyeses and the Ongpuacos.
In most of the cases, the children are exposed to their parents business early
and transition to adult entrepreneurship is relatively painless.
ISIP MALIWANAG! (REMOVE YOUR MENTAL BLOCK!)
Indeed, early training in independence, decision-making, and productive
hardwork is always associated with the development of entrepreneurial
tendencies. The Family, especially the parents, plays a most crucial role in the
development of the future entrepreneurial tendencies. The family, especially the
parents, play most crucial role in the development of the future entrepreneur.
Studies on the origins of entrepreneurship reveal that, generally speaking,
entrepreneurs are:
1. Born of parents who permissive, middle-class, rather than authoritarian or
poor. These parents teach their children to feed and dress themselves,
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walk the streets, take on adventures, choose their friend as well as to
question freely, rather than to submit blindly to authority. They train
them early to be busy with their hands at some task or craft.
2. Raised by parents who are the business or in related occupations. This is
the way the Chinese families train their young. As he grows up, the
Chinese child learns to sell, count money, give change, market, or
undertake delivery of goods. Training in business is treated both as play
and education for the child.
3. From small families. If they do come from large families, they are usually
the eldest or sometimes the middle child. Very seldom are they the
youngest child who tends to be spoiled and dependent.
4. From migrant families. Thus, Boholanos have emerged to b the
entrepreneurs in Mindanao and the Pampangueos in Manila.
Internationally, the Chinese are entrepreneurs in most of Asia and the
Jews in Europe.
5. From families which have experienced crisis situations. Children who have
learned to contend with parental separation or the death of one or both
parents learn early to fend for themselves, to seek means of livelihood,
and make their own decisions.
An important point is the parents own attitude towards work. If they
view it as a creative process and a source of satisfaction, the message to the
children is also positive. If parents allow their children to work with their hands,
it enhances the childrens regard for the dignity of labor.
Clearly, child development can e a boon instead of a bane provided the
physical and mental health of the child is safeguarded. Parents should therefore
be well advised to encourage and train the youth to work hard and be productive
early. From such beginnings do potential entrepreneurs and leaders come who
will provide employment in the future not only for themselves but for their
fellows and carry development forward.
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SOUND DECISIONS COME FROM CLEAR, AGREED, AND BEST-FIT GOALS
COMPANY GOALS
Against this background, it is therfore important to pinpoint the goals for
company at an early period. There may be a variety of such goals, not just one.
But try to set up a priority; not all goals can be accomplished at the same tie.
There is enough money, time, energy, people, or luck.
Some common goals are focused on the following:
1. Profit maximization. Malaking gananasiya (Big profit). Quick profit
overnight kung puede(if possible). That is why many Filipino firms make
good for 1 or 2 years, and then fritter away. There is lack of long-term
stability. The business owner is too impatient for quick returns.
2. High productivity. This is getting the most of the resources: people,
money, machines, raw materials, time, energy, supplies, etc. Pigain ng
husto (Squeeze them dry). This requires strictness, discipline, sticking to
a schedule and deadlines. Thus get less people to produce more.
3. Organizational efficiency. This is making the entire organization work as a
team and with high morale. Not just producing more products with less
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people. The esprit de corps of people count most here. Not just high
productivity of labor or resources.
4. Organizational growth. Palakihin ang kompanya. (To expand the
company). Some people want bigger companies, bigger markets, and
bigger clients. They expand sometimes too fast. Masyadong bongga
(Too flashy). Their enthusiasm rushes ahead of their capabilities and
resources.
5. Organizational stability. This is a good but hard objective because there
are may variables: markets can become scarce, leadership lousy, and your
own people demoralized. But the ship must be kept steady amidst al
these troubled waters.
6. Employee welfare. This is always a good objective but a hard one to keep
up. Employees are entitled to their dues under labor laws. That is the
first goal to be met. Then as the business progresses, benefits should
also go to employees. Their welfare must increase as company welfare
also grows. In this way, employee goals become one with company goals
and vice-versa. It makes for strong partnership.
7. Leadership. This is tough one but also a very ambitious one. The owner
may want to be number one in his field, community, or market. He wants
to set the pace, not to be a follower. He may do it alone or in
combination with others.
8. Social welfare. This is a high civic-spirited objective where the company
is made the instrument for social, religious, cultural, or philanthropic
goals. Para sa pakinabang ng bayan(For the good of the nation).
A STATEMENT OF OBJECTIVES FOR A SMALL BUSINESS
Even as mall business will be more successful if it takes the time and
effort to formulate a statement of its goals. Clarity about ones goals will supply
the basis for scientific management, reduce business risks, permit budgeting of
money and other resources and provide an organization opportunity for success.
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A statement of objectives need not be formal or too detailed. An example
of an informal statement of the goals of a small business follows (Vary this is you
see fit):
1. We are manufacturers of hand tools used by farmers and construction
workers. We are in competition with others in the market which supply a
great variety of hand tools through a number of wholesalers and also
directly to retail sellers.
2. Because our resources are limited (capital, manpower, and manufacturing
facilities), we deal exclusively with the production and distribution of
various hand shovels used by farmers and construction workers. We
found a substantial demand for these products by studying the customer
market. Furthermore these tools are subject to heavy wear and frequent
replacement.
3. We aim to specialize in supplying shovels that, with wholesale and retail
mark-up, can be sold to the consumer at x peso prices. We intend to
produce the best shovel that can be bought at the price. We will sell only
to and through wholesalers.
4. We shall strive to improve our product constantly. To this end we are
requesting our suppliers to give us the benefit of their advice on better
types of steel and better handles and blades. We shall arrange with our
ultimate consumers for experimental test and shall budget a reserve to
finance these continuing improvements.
5.All our products will be labeled with a distinctive brand. We shall publicize
our product in magazines, newspapers, catalogues and comics read by
our consumers. We shall feature it at farm fairs and distribute picture
posters for use in farm communities, barbershops, sari-sari stores and
other places where farmers and construction people congregate.
6. We shall limit the funds assigned to selling expenses to a concentrated
effort soliciting business from wholesale houses. We shall help our
wholesale customers to sell our product by giving them god quantity
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discounts. We shall supply them with information on how best to
represent the advantage of our product to the ultimate customers.
7. To build dealer and consumer confidence, we shall offer an unconditional
guarantee for our product for one year from purchase by the consumer.
We shall make promised deliveries on time, answer inquiries without delay
and generally demonstrate to our customers an attitude of service.
8. We shall engage only in that part of manufacturing requiring press work,
grinding and polishing and assembly. We shall not fabricate or turn the
wood handles. We shall try to maintain a value added ratio of 50
percent or greater.
9. We shall perform our manufacturing in leased quarters until larger volume
permits us to purchase our own building.
10. We shall try to maintain a return of profit on investment of 20 percent.
It falls below this figure, we will take necessary steps to improve
productivity. If it falls below this figure, we will take necessary steps to
improve productivity. If it rises beyond this figure, we will examine our
reserves to assure that we are protecting our position with adequate
research expense and reserves replacement of obsolescent equipment.
11. We shall make it a point to grant each divisional manager sufficient
freedom of choice in his activities so that he may discharge his
responsibilities without being hampered. However, each divisional
manger will not be permitted to spend a sum in any single month that
exceeds his budget by more than five percent. Any deviation from the
budget shall be brought to the attention of the board of directors at their
next regular meeting.
12. Financial status reports shall be made as of close of business at the end
of each month.
13. We will follow a policy of selecting and training men from our own
company to fill divisional management positions.
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14. We will follow a policy of paying our employees the wages and related
monetary benefits that prevail in the business community relevant to our
situation.
15. We will respect each employee as an individual and will attempt to
provide working conditions that are safe, pleasant, and healthy.
16. We will try to be a good neighbor in our community. We will try as
much as possible not to create undue noise smoke, or to contaminate the
public streams.
HUWAG SOBRA ANG PANAGINIP!
(KEEP DREAMS TO REALISTIC GOALS!)
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Chapter 6
Identification of Prospects and Project Feasibility Study
ENTREPRENEURSHIP
How and Where to Spot Business Opportunities
Assuming you have settled in your mind and your heart that you will strike
out on your own, that is, become an entrepreneur and not an employee or a
manger of another mans company, how do you start?
You start with business scanning. The usual advise is to plan, do, see.
The more practical probably is see, plan, do, see, meaning, investigate the
business environment first, then plan, implement, evaluate, and recycle the
process again.
Where do you pick up ideas for business ventures? Were just talking
about preliminary possibilities and not yet of indepth studies or planning. Let me
talk about six approaches. This is simply a listing based on various sources and
experiences. Apply what is needed to your situation.
Sources of business opportunitiesthe first approach is to use the
tools of comparison t ospot business opportunities from the following sources:
1. Examine the classified ads, business stories, and advertisements of
Sunday newspapers. Note the needs and demands for various
services and commodities.
2. Scan the yellow pages of telephone directories to get an overview
of business clusters and the dominant lines.
3.Adapt ideas from American and Japanese mail order catalogues.
Note the materials, designs and prices.
4. Look up sections on new products and technologies in foreign
periodicals and journals. Note the manufacturers and prices.
Picture the buyers in your mind.
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2. Export data so as to spot trends and sources of buyers abroad.
Also, track down exporters with whom you could do business.
3. Industry lists such as the standard industrial United Nations as
checklist.
4. Official reports, studies and analysis of:
a. Development plans of provinces, regions and the national
economy. Note the investments trends and areas.
b. The state of industries and of business trends made by foreign
missions or investment teams from foreign governments or
financial institutions. Note their priorities and preferred areas of
investments.
c. Annual reports of corporations and analyses sheets from stock
exchanges, banks and investment houses. In this way you keep
tab on business developments.
d. Industrial profiles or area profiles. These help in preliminary
analyses of potential investments.
Assistance from the government and private agenciesThe third
approach is to get scientific assistance from the government agencies or private
groups and collaborate with your partners in:
1. Examining inter-industry relations like the construction industry, which
affects more than 50 other types of economic activities, the automotive,
or the electronics industries. They spawn many small industries.
2. Studying available skills in a given locale or industry. For example,
craftsmen can be used not only for shoemaking but also for leather
goods; carpenters for furniture-making plus toys, etc.
3. Reviewing old projects that were shelved or aborted because of market,
financial, or political reasons. The timing may be ripe to revive an old
project due to better world market prices for copra or copper, etc.
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4. Investigating local materials to see how far they can be used for new and
expanded businesses. The uses of the coconut, for example, are still not
fully explored.
Unorthodox sourcesthe fourth approach is what I call unorthodox or
daring possibilities:
1.A crisis or emergency such as the oil problem has triggered many energy-
saving devices, solar systems etc.
2. Political commitments to certain projects have created many new
contractors in infrastructure schemes, etc.
3. Wild market conditions of popular terms like the war surplus goods in
1946 or the gold speculation.
Creative, hunches and luck The fifth approach is to think creatively.
You could try:
1. Putting together think tank sessions in which your group can engage more
experienced and successful entrepreneurs on exploring various options
and analyzing implications of business ideas.
2. Drawing up scenarios by which alternative futures can be imagined on the
optimistic, pessimistic and realistic views. Its thinking in a series of what
ifs?
3. Doing a brainstorm session among yourselves, jotting down ideas, no
matter how wild, regarding the problem of need.
My kutob ako. (I have a hunch). The instinctive feeling to make the
jump, to be daring, to either go ahead or stop dead in your tracks. The hunch is
a reality; many times because we dont understand the origins or implications of
hunches, we forget it and pay no attention to them. That may be a golden
opportunity lost.
Then there is that sense of timing. You may have all the resources lined
up and the plan spelled out to their most minute details. But the timing for
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launching or marketing the product is another matter not usually confined to
scientific research, computerized options, or market intelligence. Sometimes, it
is pure hunch, pure feelings based on the collective experience and insights of
the entrepreneurhis agonies, his dreams, his anxieties, his success.
Suwerte lang, pare. (Just luck). Many people look at luck in many
different ways. Some say the harder you work the more luck you have. Others
claim luck comes with destiny, birth signs, or the intensity of leas or sacrifices to
gods and divinities; it is also associated with ideas or modes of conduct and
behavior. Whatever it is luck is real to many; sometimes, you have it, sometimes
you dont.
Assessing Approaches
Whatever the approach, information is critical to business. The
traditional economic factors of land, labor, capital, machinery, and supplies are
not enough. Information as another factor has become necessary. In the
future, it will not be the problem of allocation of resources alone but allocation of
information.
Where do you get data to spot business opportunities and weigh the
risks? They come from reading, observations, travel, experience, exchanges,
and deliberate hunting for facts; the last one is important. You go out of your
way for data. It will not come to you. Have passion for it. It pays off in the
long run.
Many government agencies, universities, training and research/
development institutions have information although the data may not be
organized in the form you want it or need. These are the Asian Development
Bank; the US embassy; British Council; the Japanese Embassy; the Thomas
Jefferson Library; the National Library the Department of Agriculture, and of
Trade and Industry; Bureaus of Agricultural Extension, Animal Industry, and
Fisheries and Aquatic Resources; the national Manpower and Youth Council; the
Board of Investments; the National Science and technology Authority; various
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state universities like the University of the Philippines Los Baos; the Philippine
Inventors Commission; the Bureau of Domestic Trade; the Design Center of the
Philippines; Philippine Patents Office; the Security and Exchange Commission;
the technology Resource Center; and the Economic Development Foundation,
among others.
Lets us say youve spotted two or three possibilities from these exercises
and exchanges. The next question is: How do you narrow down the choice in
ways that are practicable and acceptable to your sources of funds and logistics?
There are, of source, no single formula strategies for a 100 percent success. But
many experiences and cases can now be complied into a list of general principles
and approaches.
BAKA SAKALING SUWERTIHIN (HE MIGHT JUST MAKE IT)
POTENTIAL PRODUCTS
The Department of Agriculture and natural Resources has identified 10
agricultural products, which will hasten the countrys economic recovery. The 10
commodities are yellow corn, coffee, cacao, mango, citrus, papaya, cassava,
sweet potato, cotton and shrimps and prawns. The economic contribution of
these products will come from increased foreign exchange through aggressive
exportation and dollar savings through import substitution programs.
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Along with the above nontraditional commodities are the traditional export
crops, which have been contributing some $1.5 billion annually to the countrys
coffers: coconut products, sugars, banana, pineapple, tobacco and abaca.
The products that can immediately generate foreign exchange for the
country are yellow corn, coffee, cacao, mango, citrus and papaya although the
country has yet to be self-sufficient in yellow corn; but the prospects of this are
bright and exportation will be achieved in due time.
The import substitution crops and products, on the other hand, are yellow
corn, cassava, sweet potato (primarily as feed ingredients), cotton, and dairy
products.
The Feasibility Study
Doing a project feasibility study is a complete project by itself. The more
complex the investment, the more complex the study. Of course, many projects
do not require complicated studies. What follows next is the project cycle for a
complex feasibility study. It is meant to serve as a guide and not a rigid formula.
WHICH FACTORS DETERMINE BUSINESS SUCCESS?
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Project Pre-Development Stage.
This is the preliminary stage prior to a formal start of the study. The be
tackled should include:
1. Identification of the project, venture or business idea
a. From market/investment opportunity studies
b. From corporate planning exercises
c. From national/regional development planning documents
d. From hunches, ideas, imitations, or informal ideas
2. Project definition
a. Type of project and status: new or old; expanded/continued
b. Type of organization: new or existing
c. Sector of project: manufacturing, agricultural, real estate, utilities,
transportation, communications, etc.
d. Type of Origination:
Marketing: import-substitute, export, or local item.
Technological organization: from village to crafts/cottage industry,
harnessing of local resources, use of new technology
e. Scope of the Study
Pre-operating stage of the project
Operating stage of the project
Post-operating stage of the project
f. Objectives of study in terms of:
Who is the evaluat0r/loan source creditors and investors?
Amount/terms of financing?
Private profitability and social benefits?
g. Characteristics of report
Comprehensive type of project or multi-projects
Simple type requiring non-sophisticated data/information
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Project Development and Appraisal
After the above problems have been resolved, the study now formally
begins. The areas to be covered are:
1. Format for the study
a. Concept paper: Is this needed? If the project is simple, drop it. But if it
is complex, save a lot of time, energy, and expenses by first preparing a
concept paper for management GO or NO GO decision.
b. Pre-feasibility study: Is this also necessary? This is a study base on
secondary data or published information and statistics. There is no
fieldwork or expenses. Wait for a management GO or NO GO decision.
c. Project feasibility study: This is the full-blown study.
2. Requirements of creditor/investor
Make sure of format and documentation requirements.
a. Local government requirements
b. Creditor/investor group
3. Proposal to do the study: project feasibility study (PFS) design and
scheduling
a. Organization of PFS team: who, from, when, and why?
b. Decision on scope, sources and methods of data collection
c. Analysis methods to be used
d. Conclusions and recommendations format
e. Timetable: work plan for schedule of implementation
f. Budget for the study
g. Source of budget
h. Decision on coverage of PFS: is it to cover all the aspects such as
economic/marketing aspects, engineering, organization, financial, social
benefits, etc. or just parts of the project cycle such as marketing or
finance?
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4. Scheduling of the project implementation either GANTT or PERT/CPM charts.
5. Appraisal by management/funding sources of preliminary project statement
a. Objectives and scope of appraisal of study proposal
b. Budget/timetable analysis
c. Critical variable analysis
d. Appraisal criteria
e. Amendments to design/scope if any
f. Instructions and/or negotiations with project team for amendments,
revision
g. Preparation of revisions/amendments to the study design
6. Go/no decision to go ahead with the detailed project feasibility study and
provide budget and staff.
Project Implementation and Completion
This is the stage of hard work. The team, now having the GO decision of
management, proceeds with the implementation of the study.
1. Activation and organization
a. Selecting and appointing the head of the PFS Team
b. Organizing the team; 2 to 4 members may include
Industrial/agricultural economist
Market analyst or researcher
Engineer/technologist
Accountant or budget analyst
Lawyer/taxation specialist
Management or systems analyst
Editor
d.Assignment/timetables: work plan for team according to specific
activities, responsibilities, outputs, and schedules.
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2. Execution of work plan
a. Data collection such as personal interviews, mail, telephone, analysis of
documents, statistics analysis, etc.
b. Analysis such as through detailed studies on: marketing, engineering,
organization, management and personnel, taxation, legal, financial project
cost, sources analysis, social benefit, Appendices (all documents required)
c. Meetings, consultation, workshops, etc.
d. Analysis, report writing, editing, support data, and statistics
e. Conclusions and recommendations: alternatives examined, decisions
made, and basis of decisions, etc.
3. Problem-solving and decision-making techniques to solve
a. Time delays
b. Budget overruns
c. Quantity and quality of data and statistics
d. Analytical expertise to be used
e. Monitoring, communications, and coordination problems
f. Government policies, red tape, etc. to be encountered some parts of the
study
4. Project completion
a. Report completion, and/or revisions
b. Production, format design, copies, style of editing and writing
c. Submission of project report o management
d. Phaseout of team that did the study
e. Completion of documents, files, records, etc., and turnover to filing
cabinet
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Project Evaluation and Recycling.
The last stage of the completed PFS involves the following:
a. Evaluating PFS conclusions and1 recommendations in terms of
Criteria of investor/creditor
Criteria of management/investor
Techniques and methods oft evaluating the completed project
feasibility study.
b. Recycling
Final decision to implement the PFS
Abort the project, or
Delay the project, or
Amend/revise the project
Finally go ahead and apply for the loan for project implementation.
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Chapter 7
Marketing
SALES PRACTICES
Marketing and sales practices of Filipinos cover a wide range of retailing
and wholeselling practices. Among the more popular ones arc the following:
Subastaban
This is an activity in which goods and products are offered for bid. This
encourages hardnosed bargaining and gives buyers the feeling that they can
drive good, hard bargains. Department Stores hold this once a year, e.g., when
moving last yearsinventories. Good promotions gimmick.
Buena Mano
It is a term used to describe first sales or first buyer for the clay. It is a
subtle psychological ploy used by the tinder(Saleslady) to push the first sales of
the day or to give the buyer the impression that he/she is the first buyer of the
day and therefore should bring good luck to the seller. The buyer thus feels
elated that he/she brings luck and helps out the seller. As buena mano, the seller
usually gives the impression that the good is being sold at giveaway price just to
effect the so-called first sales. Street vendors, sweepstakes tickets, balut (boiled
ducks egg) vendors, newspaper stalls, public market stalls, etc.,all use this trick
to draw in the unwary buyer at the first business hours of the morning.
Tingi
This is the process of piece-meal selling. Most American goods come in
large cans or packages too expensive for the ordinary buyer. The Japanese have
teenie-weenie canned sizes and packs which are Ignore practical. The Filipino
version is o make tingi; a slice of margarine wrapped in plastic paper, 1 or 2 tuyo
(a kind of dried fish) instead of the bundle of five 1 cupof ulam(viand) instead
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of the regular serving, or 1/4 of the regular sale of rice, sugar or salt, etc. Bits
and pieces are offered rather than the whole standard size. It is a, survival from
day-to-day type of buying and selling, with no thought of saving for a rainy day.
Por kilo
It is similar to tingibut used to refer to . the weighing scale such as in
buying pork or chicken so that by timbang(measurement), the sale is confined
to a per kilo basis. This means the meat or good is chopped up or divided into
one kilo or small parts rather than the whole hump or the entire lot.
Todo or lahatan
This refers to lot purchase or buying out an entire lot asin wholesale. In
many small provincial town markets during market day, wholesalers will buy out
trucks of vegetables or fruit produce, banyerasof fish, or remnants of sari-sari
garments and textiles, etc. Only oldsters can handle this.
Bulungan
This refers to secret bidding of fish catch in Navotas, a suburb of Manila.
This is done by Whispering (bulong) where the buyer whispers in the ear of the
seller and only the seller knows what bids are made for the fish catch straight
from the sea.
Pakyawan
It is an activity in which the buyer purchases the whole lot or the entire
produce, such as when a buyer makes a bid for loo mango trees with the fruits
in bud yet, or when a buyer makes a bid for the fish in a 2-hectare fishpond
without catching the fish yet. The buyer trusts his own instincts and experience
for, calculating how much the mango trees will finally yield in fruits or how much
fish will finally emerge from the fishpond. No weighing scales are used, no
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samples are made, no scientific calculations are attempted. Just pure instinct and
experience and luck. Good old Pinoytechnique.
Gugol
This refers to the puhunanor capital of the seller. When the bargaining
gets too tough, the seller ray appeal to the sense of justice of the buyer and
claim that her gugolor puhunanor cost of product is so high that there is no
more room left for just a little profitor gana. In a fit of sympathy, the buyer then
gives in.
Tsitseria
This refers to cheap items of mixed pieces, like a samot-samot(or grab-
bag) of small plastic toys, food items, etc.
BARGAINING
Buyers often test their sellers by insisting on the following:
Dagdag (Giveaway)
It is an activity in which the buyer asks for an extra beyond what was
originally agreed upon like a few more prices of peanuts, one more orange, one
more spoonful of viand, or a handful of rice grain or corn. Buyers are used to this
appeal and therefore do not give full value at the first weighing or packing. A
little is left to accommodate the inevitable plea for dagdag; it is a game of
getting more than what was bargained for. Both seller and buyer believe they
have put cine over the other. No real profits are made in pesos. It is all in the
mind and in feeling. Isahan lang(Putting one over the other!)
Tawad
It is a process in which the buyer asks for a decrease in price or an
additional unit. It is a verbal battle of give-and-take so that a savings price or an
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extra fish or item is thrown for the buyer. Some department, stores do this;
together with the small change, they throw in a piece of candy or a calendar. In
larger deals, the seller will give an extra, item, a 1-for-2, or a 5% discount, etc.
HUWAG MAG-ISIP DEMONYO (NEVER BEDEVIL CUSTOMERS)
Ganansya
This refers to the gross profit of the seller. When the bargaining is too
tough, the seller will say, Wala na akong ganansiya (I dont have any profit
anymore) Out of pity, thebuyer backs out of the pricing war and settles for an
agreed price.
Bentang Palugi
It refers to a loss in sales resorted t when there are no buyers or when
the fish will rot that a give-away price is offered just to get rid of the stock.
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SELLERS
And how do we refer to sellers? Some of them are: Humahango or
hawkers or street vendors who lug or carry goods manually. Maglalako also
refers to street vendors. Tinderais one who owns and runs a tindahan(store).
Note that the feminine gender is used to refer to the one who minds the store.
Suki refers to a pet customer, a favorite buyer, or a favorite store. It means
customer loyalty, a sign of long and special relations.
MARKET PLACE
The location or place of selling is known by different names:
Tianggi, is a public market place or a central place for buying when buyers
and sellers converge such as during market day. An example is the Baclaran
church area, on Wednesdays; it is a bedlam of hawking and bargaining on the
day when the special religious novena to the Virgin Mary is celebrated weekly.
Talipapa refers to a small wet market for fish and vegetables in a small
village or neighborhood.
Puestois a fixed place for ones store or ones territory forones goods. It
can be a market stall, a piece of the street corner, or the part of the front of the
hotel door or a school gate, etc.
Marketing people and salesmen are usually confronted by two malpractices:
5-6 is a practice in usury wherein one borrows P5 for the day but must
return P6 the next day or two.
1-2-3 is a term used to describe a swindle. As an example, two buyers
approach you to buy your jewelry; one acts as agent, the other as the real buyer
or the one with cash. You turn over the jewelry to the buyer in front of the agent
so that the jewelry can be examined. The buyer excuses herself to go to the
toilet or to make a telephone call. You both wait for 10 to 15 minutes. So the
agent says he will go to fetch her. And both never come back. The jewelry is also
gone. Patay!(Sorry!)
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COPE WITH CUSTOMERSOR THEY WILL THROW YOU OUT OF BUSINESS!
MARKET RESEARCH
As a rule, Filipino businessmen do not want to invest in market research.
They think common sense will suffice, or experience. Ma. Victoria Gochoco
reports on the burn-down Harrison Plaza in Manila. The owners reconstructed
the whole commercial center again, but decided to conduct a market researchfirst. What are some of these findings?
Anyone setting up a commercial center these days would do well to offer
a complete, one-stop shopping facility with alt of value-oriented promotions
thrown in. This was learned by the Asia Communications Center, Inc. (ACC) in a
survey of 113 middle-income people employees, students, housewives,
tourists, professionals, businessmen and executives. The survey was made in 10
days within a five-kilometer radius of the new Harrison Plaza. This includedErmita, Sections of Pasay, and the area of Makati nearest to Manila. The purpose
of the survey was to show the possible trends in commercial center shopping to
serve as a reference or indicator of what people might look for in a shopping
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center. ACC cautions that its survey, because of the limited time in which it was
conducted, should not be used as the sole reference for decision-making.
Indicators
Some of the concrete findings include the following:
1. Most popular items bought in commercial centers were clothes (85%), and
shoes and bags (also 85%). Coming in second were supermarket goods such as
food and household items (60%).
2. What do people do when they go to commercial centers or what services do
they seek? Most said they eat in restaurants (87%) and patronize the
moviehouse (71%).
3. On what occasions do they go to commercial centers and buy? Birthdays were
the most popular (73%), followed by holidays such as Christmas and New Year
(62%), then ordinary days (44%).
4. What makes an ideal commercial center is the completenessof its goods and
services. Respondents said they want a complete one-stop shop (62%) aside
from the presence of amusement facilities (28%).
5. Many respondents valued clean surroundings (20%), ACC said this may have
been a result of the host of diggings ongoing in Metro Manila at the time of the
survey last March. Good security was also favored (18%) as some tourists
asserted they found even minimum security lacking in some commercial
centers. Good service is also important (16%).
6. Complaints included dirty comfort rooms (20%), overcrowded areas, and lack
of parking space.
7. Many respondents said they looked for value-oriented promotions that save
money (26%). Particularly, consumers looked for cheap items (86%). and lots of
big prizes in raffles and promos (35%). What they disliked in promos, however,
were unmanageable crowds, slim chances of winning (consumers are getting
more and more discriminating about promo gimmicks), and low quality items in
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bangketa(sidewalk) sales. The value-oriented promos that consumers liked best
were discount sales, buy-one-take-one offers, and bangketa sales.
Image
In the same survey, ACC tried to find out what the respondentsimage of
the old Harrison Plaza was and what their expectations wore of the new one.
The major negative impression that remains is that theold HP was
crowded by idle bystanders and that its bangketa sales produced just too much
buyer traffic. The new management, as a solution, said it will be removing the
benches in the new HPs main mall and will improve its facilities mainly in terms
of cleanliness.
DEVELOPMENT OF TRADEMARKS
The need to develop and own an established trademark is a must for local
manufacturers to be able to enter the competition in the international arena. The
establishment of trademarks has to begin locally for it needs a local base
support. It is this initial step that Tatak Pinoy wanted to accomplish in its Fair
held last year. Tatak Pinoy considers the pushing of cheap labor in the export
market wrong; hence the need to shelve this approach and in its stead focus
must be placed on pushing Filipino trademarks.
Other countries such as Japan, Korea, Singapore, France, and United
States have promoted their trademarks heavily and have succeeded in the
process. Japan has, among others, Toyota, Seiko, and Sony. Korea has been
promoting its brands, foremost among these being the Pony, Koreas major car.
Singapore has its Risis for the goldplated authentic orchid. Paris connotes Dior or
Cartier; New York has Tiffanys and Bill Blass; Rome has Olivetti, Gucci, or
Formica; London is known for Rolls Royce; Copenhagen has Lego and Danish
Royal; Philippines has any manufacturers trademark! Halu-halo talaga! (Pure
mix!)
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Tatak Pinoy theorizes that the defect of Filipino manufacturers is their
quick-money orientation, their short-term thinking. They would rather
manufacture for foreign trademark owners and get peanuts for the labor. Why
they settle for that when they can get more by attaching their own brands or
trademarks to the products they can manufacture puzzles many. Thus, Tatak
Pinoy has daringly started the promotion of Philippine-made products with
Philippine trademarks. This is to foster awareness and national pride in Philippine
trademarks.
For purpose of planning and facility, Tatak Pinoy maintains close
coordination with the Philippine Patent Office (PPO), Chamber of Philippine
Department Stores and Retailers (CPDSR), Buy Filipino Buy Local Products
committee, and the National Economic Recovery Group of the Federation of the
Filipino-Chinese Chamber of Commerce and Industry (FFCCI). Tatak Pinoy,
through the cooperation and assistance of PPO, CPSR, and FFCCI, offers to
hold a series of seminars, which include such topics as retail management,
marketing, and trademark. Tatak Pinoy grabs the opportunity to provide an ideal
venue to help businessmen learn the legal intricacies of trademarks.
PPO Director Sandiego observes that some 15 years ago, PPO had only
5% registered Filipino trademarks; the rest were foreign trademarks. The current
ratio is 35% Filipino and 65% foreign trademarks. With Tatak Pinoy, one can
optimistically predict that local trademarks will finally outnumber the foreign
franchises.
PUBLIC RELATIONS
Public relations is coming to China, according to Asiaweek. Though most
public relations departments belong to foreign or joint venture enterprises, the
Economic Daily recently reported on what is generally believed to be the first
true public relations department established by a Chinese enterprise. It belongs
to the Baiyun Pharmaceutical Factory in Canton. Xie Jianqun, who has held the
title of director of public relations for the ChineseCouncil for the Promotion of
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International Trade for several years, told Asiaweek that, in fact, hes not
involved in public relations in the real sense of the word. His department, which
is mainly concerned with publications, is called propagandain Chinese. He says
that they changed its English name topublic relationspartly because it sounds
better to foreigners, although that is of course smart PR.
The Baiyun factory spends 1% of its total output value on PR: in 1984,
that portion amounted to RMB 1.2m ($427,000). Managers call it credit
investment. The factory invites journalists and public figures to important
meetings and events, tries to target its advertising to specific markets, and even
sponsors a football team. According to the report, after two years of suchcredit
investment, Baiyun has cornered fully one-third of the Canton market for
pharmaceuticals. A Hongkong businessman reportedly approached Baiyun about
starting a joint venture because it had a good image.
While Baiyun may be the first Chinese industry to have a PR department,
the Economic Dailypresumably reflecting the modernization-minded, reformist
leadership- believes it should, not be the last. In an editorial titledSeriously
Study Socialist Public Relations, the paper praised the Baiyun experience and
predicted a great development in public relations will accompany the
penetrating advance of the urban economic reforms. Those measures,
announced last October in a major party document, introduce significant
elements of the free market and capitalist management into -the socialist
planned economy. In an interview with the daily, Baiyun plant director Bei
Shaohan noted that with the separation of government and business
management, enterprise directors can no-longer afford to take the attitude, of
the emperors daughter doesnt have to worry about herdowry.
Last year, 40 representatives from 25 national organizations attended a
half-day seminar on public relations in Peking. Enrollees included the national
airline CCAC, the Bank of China, the China International Travel Service, import-
export corporations, and industries ranging from textiles to aviation technology.
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The seminar was organized by the American PR firm Hill & Knowlton to celebrate
its opening of a Peking branch office, the first public relations firm, foreign or
Chinese, to operate in China. So far, all of its clients are foreign firms trying to do
business in China. But Ronald Cromie, the firms China affairs director, says that
some of the enterprises attending the seminar are doing billions of dollars worth
of sales in foreign markets and some, such as CAAC, suffer from bad image
problems abroad.
Id be amazed, says Cromie, if many Chinese firms didntstart public
relations-like activity with1in the next few years. In the past, he says, people
did business in China through old friends. But things are changing fast. More
conventional marketing techniques are needed. In the several months hes been
working in Peking, Cromie, 35, says hes discovered a tremendous hunger
especially in the Chinese trade media for information. Indeed, Mandarin-
speaking Cromie says the Chinese media have so far proven very
approachable.
THE FUTURE MARKET
Marketing consultant Alfredo Antonio projects the following marketing
scenarios:
1. Storage of stocks will farce affected companies to concentrate selling efforts in
Metro Manila.
2. People in the countryside will become resilient and reduce demand for
processed products. They will tend to revert to those that had been available to
them from local sources and at affordable prices.
3. In population centers, one-stop shops fast foods, and take-home counters will
grow in popularity.
4. Instant foods and other convenience foods will enjoy a boom.
5. There will be a definite trend towards ready-to-wear clothes.
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6. The growth of low-cost substitute products will be accelerated. This will be an
automatic answer to the factors of inflation and lower incomes. For instance,
disposables will become popular.
7. If this does not happen, for instance in garments, then there will be a sharp
decline in garment sales.
8. Pharmaceutical products in general will suffer a decline in demand, particularly
in the rural areas. This will be due to a trend to return to traditional medicines
such as herbals, longtime curatives, and medications from forebears.
9. There will he a slow but gradual shift from inorganic or chemical fertilizers to
organic.
10. The traditional distribution systems will change to an innovative one that will
be better tuned to the times.
11. Regional (satellite) feeds-making systems will be developed.
12. There will be a shift of the population back to the countryside.
13. Rural electrification will suffer temporary setbacks.
14. Education will shift to technical and science areas.
15. There will be sharp innovations in packaging.
LINKAGES
There is a simple formula we must remember about linkages. Ugnayan
(Inter-linkages). Your company or project cannot be treated in isolation. The
company is part of an industry or a sector and part of the community or region
in which it operates. The project is part of a program or an organizations plan.
It is part of a system. Isip kabuuan(holistic thinking). The formula is: L stands
for linkage, 1 for company or organization, and 2 for markets or community.
Thus:
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1. The linkage exists within the parts that make up a company or
organization. If you were to treat a company as a system, then it is made up of
subsystems such as its values system, technical system, organizational structure,
etc. The sub systems must divide the work among themselves, and also
coordinate among themselves. Bayanihan sa Loob(Internal cooperation).
2. The linkage is between the company and the market or community. In
this formula, it is the company that is making an impact on the community by
responding to its needs. Alam ng management kung anong kailangan ng tao
(Management knows what are peoples, specific needs) and responds to these
needs.
3. The linkage is among the parts or subsystem that make up the market
or community. If it is the market, it is composed of subsystems like suppliers,
creditors, distribution outlets, etc. If it is the community, the sub-systems include
economic institutions, social activities, political parties, residents and customers,
etc.
4. The linkage is between the community or market and the company. In
this formula, it is the market or community that is influencing or making an
impact on the company. The community may reject the companys products or
services, or accept and patronize them.
JEANS BOOM FADES AS MARKET SHRINKS
After 20 years, the blue jeans boom finally shows signs of fading in
America and elsewhere.
Ragged blue denims have been discarded by former hippies who have
joined the establishment. The end of the post-war baby-boom has reduced
demand for blue jeans too.
Today, the 1960s uniform of social protest is being wornless and less in
the United States.
The two biggest makers, Levi-Strauss and Blue Bell, have seen their
combined sales fall from 589 million pairs in 1981 to 500 million in 1983.
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After closing 17 factories and laying off several thousand workers, they
have resorted to massive promotion campaigns.
Levi-Strauss is spending $36 million for its largest sales campaign ever for
a single productits 501 jeans, companyspokesman Dean Christon said.
The 501 was created 134 years ago during the California gold rush. They
are the most widely sold trousers in the world.
Promo
Blue Bell is riposting to defend its pre-washed and already-shrunk
Wrangler jeans. Sixteen thousand stores selling Wranglers are giving a free
pair this summer to every customer who buys three pairs.
Summer customers will also be given a $2 reduction if they buy another
pair in the autumn when sales of jeans normally slacken.
Yet executives of those two firms and t heir competitor Lee which broke sales
records by launching urban cowboy jeansin 1981, are worried: the number of
young US adults (18 to 24), the most likely to buy jeans, is expected lo decline
23% by 1995.
Wranglers marketing director Ray Corder complained that youths today
buy only one or two pairs of jeans instead of three, four or even five. A
number of manufacturers are trying to reverse this trend by having stylists
design fashion jeans with fancy zippers, abaggy look a Marilyn Monroe look
(form-hugging with short pantlegs split to show the calves), or a reversed
silhouette (tightwaist and cuffs but loose in between).
The manufacturers are also making blue denim shirts and blouses in an
effort to compensate for sagging trouser sales.
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DAPAT TUGMA IYONG GUSTONG
GAWIN AT IYONG KAYANG GAWIN!
(THERE SHOULD BE PROPER
MATCHING OF GOALS AND CAPACITY!)
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Chapter 8
Supervision Tools
TOOLS FOR THE MANAGER
According to Auren Uris, there are three areas in which management tools
can be helpful to managers:
1. Kagamitan pangopisina (office equipment). These are the
administrative tools such as the telephone, files and records, and even the
pocket-size voice tape recorder.
2. Kagamitang medyo teknikal(Technical tools). These are the operations
tool for more sophisticated operations such as planning techniques like the
GANTT charts and the simplified operations research techniques.
3. kagamitan pang-tao (Tools for people). These are systems for
managing people such as the MBO, zero defects, etc.
Lets examine them carefully:
Files
Most of the, equipment and systems for record keeping are designed for
general-office use. But the manager also needs facilities for record keeping. He
may use a simple vertical file or one of the ingenious devices that fit inside a
desk drawer.
Filing is mostly a matter of habit. In the beginning, it may look tough and
tedious. But. it is the stuff of business; records and files are necessary, they are
not for decoration. Keep it simple like a business diary but keep one. In
commercial bookstores, filing forms and bookkeeping records are available for
small business purposes.
Charts and graphs
All types and sizes of these are available for organization control,
production control, and quality control; for a quick picture of absenteeism,
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safety, budgets, waste and costs; for keeping track, of orders received,
processed and shipped; overtime; stock needed; etc. Make your own versions.
Simplify. Use the dialect if it helps. Use forms your own people can understand
and fill up.
Phone adaptations
Available are conference phones that sit on the desk and require no
handling; phones linked up for three-way or group talks; phone side switches to
tell the switchboard whether the executive is in, away, or available by auto-call;
timers to limit long-distance calls. Considering our phone system, these may not
be too useful now but they will be soon. In Manila, Makati, Cebu and Baguio,
these will prove very useful.
Blackboards, easel charts, flannel boards
These can be used behind the desk a well as in conference rooms for
problem-solving illustration, etc. They can help a manager in his planning and in
setting forth n plan or problem to his group.
Adding or calculating machines
I run up a column f figures a dozen times a day is a fairly typical
statement from a top-level executive to explain his use of such equipment. They
assist in anything from adding up the months production to figuring out a
salesmans commission.
Cameras
Movie, VTR, and still types are: often used to get visua1 evidences of a
damaged shipment, inventory on hand, poor safety practices, and many other
facts. Instant self-developing cameras such as the Polaroid are of particular
value. The camera is also a good instrument for recording a company growth, for
current inventory of products, etc.; for documenting work methods or changes in
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the office or factory floor design, job instruction, damage claims, progress
reports, site planning, lot purchases, etc.
Calendar
Different kinds of calendar for planning operations and recording
appointments are available and being used in the business scene. They come in
paper or metal; to be hung on the wall, placed on the desk, or worn on the
wrist.
Projectors
Acetate, slide, or, movie projectors are becoming more common in,
executive offices. As an adjunct to conferences or as a briefing or training
device, their rich possibilities are still not completely explored. The overhead
projector makes it possible to project material and have the user modify (draw
on or erase) the images. Sound-slide films add audio content.
Dictating machines recorders
The use of a dictating machine for letters, reports, and so on is standard.
But executives have found that putting a conference on tape, for example,
provides a verbatim record that at times is highly desirable. Sophisticated
equipment makes it possible for todays manager to pick up a phone and dictate
into a remote recorder, which will later be transcribed by employees in, a typing
pool. A pocket-size or hand-carried voice tape-recorder is extremely useful for
reminders, for recording ideas, for follow-up items, etc.
The possibilities for each tool itemized above are by no means exhaustive
nor fixed. New uses or adaptations appear continually. Ingenuity in seeking out
new uses makes for continuing improvement in managerial effectiveness.
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REMOVING RESISTANCE
There are many methods. Dont use the same one in every situation.
Learn them all so that you have a choice when resistance shows up:
1. Try a success example.
Sonny doesnt work on nightshifts? Tell Sonny about Willy who thought he
wouldnt like workingnights but who, after trying it for a month wont work any
other shift.
2. Try making a guarantee.
Cely is sure the new method wont work? Tell her that if she tries it for a week
and doesnt find it better than the old way, youll promise she can switch back
again.
3. Try a demonstration.
The operator thinks, the rate on\the new job is too tough? Say, Here, let ne
show you how easy it is to operate the machine. It looks a lot harder than it
actually is.
4. Try asking questions.
Maria says she cant merit a bonus? Ask her what she finds hardest about the
job, whether she feels it has been properly explained.
4. Try plain listening.
Berto wont work overtime today or any other day? Let him rave. Hear all his
arguments in a friendly manner. When hes had his complete say, then try
persuasion and reasoning.
GETTING MORE DONE
Usually the busiest people are the ones who get things done. What do
they do? How can you do the same?
1. Umpisahan mo(start it.) It is t he hardest step to take.
Even if yourenot sure of how to begin, do something: move, write, meet, talk,
phone, plan, research, etc. Pero magumpisa ka (But start.) The longer you delay,
the tougher the task. Andsoon you may lose all interest.
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2. Pumili ka ng modelo(Keep watch of your time.) Julius Erving or Carlos
Loyzaga. In football, Pel. In business, Teodoro Toribio or your neighbors sari-
sari store. In whatever work you do, always select or find a model, someone who
can challenge or motivate you.
3. Pangalagaan mo ang oras mo (Keep watch of your time) Time, once
lost, never comes back. Set deadlines for specific things to do or to finish. Get
used to managing hours and days of your life.
THINKING FANTASY IS OFTEN DISASTROUS
4. Gawin mo muna; saka na i-perfect (Do it first, perfect it later) Many
managers delay or are reluctant to start something unless it is perfect. But there
is nothing perfect. Start it, get it going; along the way, start improving and
perfecting the project.5. Itabi ang hindi importante (Set aside what is unimportant.)
Concentrate. Focus. Zero in on the important points: Itabi iyong mga hindi(set
aside those that are not) directly related to the project or the function. Its like a
race. Keep the eyes on the lane.
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6. Maghanap ka ng tiyempo (Look for right time.) Every manager or
entrepreneur has a tempo, a work rhythm. Some work well at 8 a.m. to 5 p.m.
Some dont; they are night creatures; they work after dinner on through
midnight. Cultivate a tempo. That can exploit the talents of the whole team.
7. Tapusin ang trabaho(Finish the work) Make sure the project or work is
completed. This means the desired results or outputs are clear right from the
start.
DEVELOPING SELF-MOTIVATION AND COMMITMENT
Try a force-field analysis. This can be done in five steps:
Target Muna (First the target)
Pick a goal you wish to reach or an action you plan to take as part of your
development program. This action should help you reach your goal by changing
or improving your present behavior. This step is sometimes called the goal-
action-change step. Your goal may be to prepare effective reports for higher
management to read. The action may require your taking a night course in
bookkeeping at a nearby university. The change will be improvement n your
records.
Mga Pampagana (Appetizers)
Make a list of at least five important forces that are driving you to make
that change. For example, you want to get a promotion (key force is promotion);
you hope to earn more money (key force is future income); your spouse would
feel good about your improved status (key force is status); your boss is
pressuring you for regular formal reports (key force is pressure); and you want
the satisfaction of seeing your ideas influence higher management decisions (key
force is influence).
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Mga Problema (Problems)
Make a list of at least five important forces that are holding you back or
restraining you from making this change. For example, you cantfind the time
(key force is time); you hate taking night courses (key force is educational
method), the course is only given on your mahjong night (key force is
interference with recreation); you are afraid that you wont do well (key force is,
fear of failure); and you dont, like the idea that you will have ;to do homework
(key force is homework).
Ano ang Pinakaimportante? (What is of Topmost Importance?)
Now rank each force driving as well! as restraining, according to how
strong it is. Use a ranking scale of 1 to 5, ranging from 1 as little effect to 5 as
very strong effect. This singles out what is really important in motivating you
and what is truly powerful in holding you back. It also helps to expose low-
ranking, forces for what they are: excuses.
Try to Match Opposing Forces
A strong driving force like pressure may be all that is needed to motivate
you to overcome a strong restraining force like educational method. Hope for a
larger future income may overcome your dislike of homework. The driving forces
of promotion, status, and influence may not be so powerful as you thoughtthey
were when compared on the chart, but neither are the restraining forces of time,
fear of failure, and interference with recreation.
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FIGURE 1. Example of a Force Feld Analysis
RIGHT APPROACH TO PROBLEM SOLVING
The general rule is that the best results come from asystematic
approach. Sistema ang kailangan(System is needed).
Step 1.Ano Talaga ang Problema(What is the Actual Problem?)
State the problem clearly and specifically. Stay away from a general
statement like, We have a problem with quality. Instead, narrow it down and
put figures on it if you can, like,Between the first of the month and today, the
number of rejects found at final inspection have totaled 32, compared with our
standard of 15.
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getting up in the morning, this cause might be removed in a. number of ways.
You might change the shift, insist that the employee buy an alarm clock, make a
wake-up arrangement or scheme, or show how failure to get to work is job-
threatening. The point is to make your list of alternative solutions as long as
possible. But practical.
Step 6. Ipagmuni-muni ng husto (Deliberate Very Well)
Evaluate the pros and cons of each proposed solution. Some solutions will
be better than others. But what does better mean? Cheaper? Faster? Surer?
More participative? More in line with company policy? To judge which solution is
best, youll have to have a set of criteria like the ones just listed. Evaluation
requires you to make judgments based on facts. Consult the information
gathered in Step 2. Also consult anyone who can oiler specialized opinions about
the criteria you have chosen.
Step 7. Anong pinakmagaling (What is the Best)
Choose the solution on you think s best. As in Step 6, t his is the
decision phase of problem-solving. In effect, you will have weighed all the
chances of success against the risks of failure. The strengths of your solution
should exceed its weaknesses.
Step 8. Iplano ang mga detalye (Plan the details)
Spell out a plan of action to carry out your solution Decisions require
action and follow-up. Pin down exactly what will be doneand how, who will do
it, where, and when. How much money can be spent? What resources can be
used? What is the deadline?
Step 9. Gawin mo (Do it)
Implement.
Step 10. Okay ba (Is It Okay?)
Evaluate.
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Puro Usapan (All Talk)
This is the loss of decision-making momentum. Too many people involved
are either contributors or potential decision stoppers. There are also too many
inconclusive, unproductive meetings.
Malabong Utos (Improper Delegation)
There is no delegation at all or just nominal delegation; too much control
is retained by the delegator over methods and procedures. This also refers to
delegation to the wrong people, improper training of subordinates, or poor
guidance and follow-up by the delegator.
Hindi Hawak (Not controlled)
This is lack of authority to fully control elements of decision. It also
includes lack of cooperation in terms of time or content by those whose inputs
are sought.
Ma-pulitiko (Corporate Politics and Factionalism)
There are competing goals and competition for influence, leading the
conflict and lack of support for the decision-makers effortto make decisions.
Mabagal (Slow)
There is long lead time between decision and implementation, along with
the loss of initial enthusiasm, of sense of urgency, and of incentive to make fast
or innovative decisions about implementation.
Organizational Personality
Management expectations can sometimes discourage entrepreneurial
spirit and establish overly confining procedures. This situation is accompanied by
poor definition or communication of goals and of what contributions are expected
from individuals to achieve these goals.
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In assessing ones decision-making process, keep your answers as brief as
possible. In some cases, two or three words or a simple yes or no will suffice.
Dontbe afraid to elaborate if you think you have a point or observation that
needs more explanation.
TIME AND PACE
Organizational Tempo
Organizational tempo is the speed with which an organization moves,
thinks, and gets things done; how fast it makes and implements decisions, reacts
to new business climates, adapts to sudden shifts in the marketplace aid
competitive pressures, creates new products and services, solves problems, and
seizes new opportunities. In short, it is the pulse of the organization. There are
five quick facts about tempo:
Masdan ang tiyempo (Keep track timing) Every organization has a
tempo; everything the organization does s done within the time frame
established by that tempo. It is the pervasive climate in which the organization
operates. An organizations tempo good, bad, or indifferent determines
what that organization can accomplish in a given period.
Pabilisan(Competing in speed)Next to making the right decisions, the
speed with which those decisions are made has more to do with the success or
failure of an organization than any other single factor.
Hindi pinapansin(Inattentiveness)Despite the above, we incredibly and
generally do not think of an organization as having a tempo. In fact, we seldom
think of tempo at all. Consequently, we seldom set out to do anything to
improve it.
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SUPERVISORS SHOULD NEVER GET INTO THEIR SHELLS,
ISOLATED FROM THE WORK FORCE
Bawal ang mabagal (Ban the slowpokes)Slow tempo can occur at any
and all levels. If it occurs significantly at top levels, the problem will tend to show
up in bottom-line results and either the organization will go down the tube or
middle management will get axed.
At lower and middle levels of management, slow tempo usually Just as
damaging because if we dont look for it, especially in these terms, it tends to be
less obvious and therefore more insidious. At these levels, it can eat away,
undetected, at the effectiveness of the whole organization.
Size is no protection against slow tempo. It can afflict any organization,
from the one-man plumbing shop to the automotive giant. Obviously, when
youre dealing with a very small organization, personal work habits and attitudes
tend to be a dominant influence. As the organization gets larger, organizational
structure becomes a progressively greater influence to be reckoned with.
Puwedeng ma-improve(Improvement chances)Finally, no organization
moves anywhere nea1r its maximum potential tempo; therefore, every,
organization can improve its tempo. Bad can become good, and good can
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become better. The room for movement is as infinite as the need for
improvement.
Time-Saving
Since time is precious how do you save time? Here are some suggestions:
1. Develop an overview of your responsibilities There are many things
you have to do. Which of these are a must?Which arc those, which are just
keeping you busy? Which really contribute to your accountabilities? Separate
them. Then focus on the key activities. Clarify your job.Ano bang talaga ang
responsibilidad mo(What is your real responsibility?) The Filipino has the habit of
doing many things at the same time.
2. Schedule your routineMake it a habit to write down the important
things you will do in a day. Set the time. Also list down followup activities.
Many times good project get bogged down after a good start because of bad
follow-up. Follow-up and follow-up. Bunch up the telephone calls together. Our
PLDT lines are very bad, so psychologically prepare your mind to spend many
minutes just contacting your party.
3. DelegateDelagating is the best way of saving time. But how? First
is to pinpoint the task or the job. This must be very clear. Then select the person
who has the capability. Make the assignment and be clear about what is
expected of him. Make the output or the result clear. Supply the support and
clarify his authority. Tell others about his assignment. Check his progress.
Evaluate the results. Give him advice. What went right? What went wrong? Why?
How should he do better next time around? And when do you delegate? When
you are overburdened, when there are emergencies, and when you are absent?
Teach people and delegation becomes easier. But dont justdelegate and leave
him alone; stay close; watch your subordinate. Tell him to repeat your orders.
Check if what he says is what you told him.
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HANDLING PROBLEMS
Resolving conflicts in the organization s common problem facing
managers. There are five ways of coping with such a situation:
1. Itabi muna ang problema (Set the problem aside.) If the problem is
there, one way is to retreat or withdraw. Huwag pansinin(Dont pay attention.)
2. Hinay-hinay lang(Slow pace). Smoothen things over first. Try to patch
up things in small bits and pieces, and slowly. Huwag biglaan(Dont do t all of a
sudden).
3. Bigayan (Give and take). This is the art of compromising. I give you
one part, you give me another. Utangan ng loob(Debt of gratitude).
4. Digmaan(War). Forcing the issue. Americans like this method. Open
confrontation. Patigasan. Giyera kung giyera (Stubborneness. War, if
necessary). The Filipino always uses this as a last resort.
5. Magpakatatag ka (Keep firm). This is also confrontation, but of a
mature, intelligent type. Ideas are put to, the area of debate, of open
discussions, instead of silent suspicious and backbiting. One takes a position,
but one is cool and calm.
KEEPING OUT OF TROUBLE WHEN DIRECTING, ORDERING, ASSIGNING, OR
INSTRUCTING
Mahirap magmando, mag-ingat kayo (Its difficult to command. Be
careful). There are no assurances that employees wontget hung up about a
particular assignment, but here are 11 guidelines from various sources that
should minimize trouble:
1. Dont make it a struggle for power. If you approach toomany order-
giving situations in anIll show-you-whos bossframe of mind, youll be fighting
soon with the whole department. Try to focus your attention and then of the
workers on the goal that must be met. The idea to project is the situation that
demands the order and not a whim of the supervisor.
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2. Avoid an offhand manner. If you want employees to take instructions,
seriously, then deliver them that way. Its all rightto have fun, but be firm about
those matters that are important. Kool lang(Keep cool).
3. Watch out for your words. As you have seen, words can be unreliable
messengers of your thoughts. Watch the tone of your voice too. Few people like
the feel that they are being taken for granted or pushed around. Most employees
accept the fact that it is the supervisors job to hand out orders and instructions.
Their quarrel is more likely to be with the way these are made. Mahirap
magsaiita ng marahas(Itsdifficult to talk aggressively).
4. Dont assume that the worker understands. Give the employee a
chance to ask questions and to raise objections. Have the employee confirm an
understanding by repeating what youve said. Paulit mo (Let him repeat the
instructions).
5. Be sure to get feedback right away. Give the employee who wishes to
complain about the assignment a chance to do so at the time. Its better to iron
out resistance and misunderstanding before the job begins than afterward.
6. Dont give too many orders. This is an area where acommunications
overload will be self-defeating. Be selective in issuing instructions. Keep them
brief and to the point. Wait until an employee has finished one job before asking
that another be started. Huwag sobrang utos(Not too many orders).
7. Provide just enough detail. Some jobs require more information than
less complex ones do. Some workers need more detailed instruction than others.
Think about the information needs of the person youre speaking to. For an old
hand theresnothing more tiresome than having to listen to familiar details.
8. Watch out for conflicting instructions. Check to make sure that youre
not telling your employees one thing while supervisors in adjoining departments
are telling their people another. Puro tsismis!(Lots of gossips!)
9. Dont choose only the willing worker. Some people are naturally
cooperative. Others make it difficult for you to ask them to do anything. Be sure
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that you dont overwork the willingperson. Baka mabinat iyan.(Avoid relapse).
Make sure the hard-to-handle people also get their share of the rough jobs.
10. Try not to pick on anyone. It is a temptation to punish a person by
handling out an unpleasant assignment. Resist this temptation if you can.
Employees have the right to expect the work to be distributed fairly. If you have
a grudge against an employee, dont use a dirty job assignment to get even.
11. Above all, dont play the big shot. New supervisors are sometimes
guilty of flaunting their authority. Older supervisors feel more confident. They
know that you dont have to crackthe whip to gain employees cooperation and
respect.
PRINCIPLES OF SUPERVISION
How to Deal with Individual Employees
The following simple rules from various sources are examples of
instructions that all supervisory personnel should receive in order to improve the
morale in an organization.:
Para sa bagong trabahador (For the new employee). Greet him
cordially. Display sincere interest in him. Explain the job to him and also the part
he will play within the organization. Show him around. Introduce him to his co-
workers. Choose the right way to instruct him. Tell him who his superior will be
and how he will receive his instructions. Kaiiangan maliwanag(Everything has to
be clear). Follow-up. After he has been on the job for a reasonable period, see
him again and find out how he is doing.
Doon sa mga mas mababa sa iyo (The subordinates) Approach the
employee in terms of what he wants. Try to understand his interests in his work
and convince him that cooperation in the common effort will help him.
Teamwork talaga(Real teamwork). Show sincere appreciation for work well. Do
not withhold praise when it is earned, especially for accomplishing work, for
suggesting improvement, and for cooperative attitudes towards the, unit or
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department. In case of a dissatisfaction with work performance do not become
abusive or impatient. Be just and calm. Be tactful, and polite.
Make sure your subordinates clearly understand your instructions. Do not
take for granted that they know what you said and meant. Be articulate. Explain
trade terms and practices fully. Remain with the employee or have the instructor
stay with him until he completely understands what he is doing.
Follow standard procedures to deal with employees; show no preferences
or dislikes, so that everyone will feel they are being treated equally. Pantay-
pantay lahat(Equal treatment to all).
Listen to what employees tell you and to what they mean; dont become
impatient in trying to find out what they are thinking. Give them a chance to tell
you what they feel you ought to know. Gain their confidence. Let them know you
are interested in how they are getting, along.
Make sure that your subordinates feel comfortable and at ease in the
business as much as possible. Do not put persons who dislike each other into the
same group or assignment.
Male superiors of female employees must avoid becoming familiar.
Mahirap na(Its complicated.) Moreover, superiors who are dealing with women
must consider female sensitivity. Mga babae iyan(These are women).
How to Build Confidence Among Subordinates
Greet each man of your unit every day; try to give the greeting a personal
touch (you should know what your subordinates interests are such as family,
sports, and hobbies and be able to refer to them).
Encourage employees to come to you with their problems. Be sincerely
interested in their problems. Kaya lang, huwag masyadong open (but dont be
too open.) If possible, do something about these problems.
If you need to reprimand an employee, first be calm. Take the employee
to a place where you can talk to him alone without giving others a chance to
witness the reprimand. Before reprimanding an employee, reexamine the facts
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and reasons for the reprimand and make sure it is deserved. In reprimanding an
employee, make sure he knows why and talk straight; do not waste words.
Huwag iyang bolahan (Dont flatter.) After reprimanding, encourage the
employee to do better and make him anxious to improve.
In handling grievances, after giving the employee a chance to present his
case and listening sympathetically, look up the record: find out the facts, inquire.
Make or get a decision without unnecessary delay. Kung praktikal(If practical),
inform the employee of the decision without hesitation: if it is adverse, try in
make him understand it.
Papaano Mag-utos (How to Give Orders)
Be sure you yourself understand the implications of the order and what is
necessary in terms of facilities, materials, time, effort to obey it. Assign the work
to an employee who is capable of doing it. Explain it to him in the language level
that understands. If necessary, explain the purpose that is to be att