Philippine Management Concepts PINOY MANAGEMENT

8/10/2019 Philippine Management Concepts PINOY MANAGEMENT

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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

Philippine Management Concepts PINOY MANAGEMENT

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