10 Ten Characteristics of the Achieving Person
FOCUS
Achievers have a remarkable ability to keep their focus pinpointed on their work and to resist distractions.

PREPAREDNESS
Achievers make sure they are ready for the tasks ahead of them. This includes obtaining the knowledge and training necessary, developing the connections, and acquiring the materials and resources needed to achieve their goal.

CONVICTION
Achievers believe fully in what they have to contribute. They are confident in their own skills and ideas; they have faith in the value of what they have to offer.

PERSEVERANCE
Achievers have an immense capacity for hard work and labor. Their physical stamina can be awesome. Nothing else matters. All obstacles are insignificant when compared with their goal.

CREATIVITY
Achievers are creative. To be creative is to be flexible and imaginative. It’s an ability to work around problems, to find fresh solutions, to experiment with new approaches, and devise original plans. Thinking different. This creativity often means a willingness to use other peoples ideas and adapt them to their own needs.

CURIOSITY
Achievers have a thirst for learning that is unquenchable. They are always asking questions and seeking answers. To find those answers, they seek out books and publications, confer with experts, travel hundreds of miles, and spend long, late nights reading, studying or experimenting. Interestingly enough, for many of these people, learning is not at all the same thing as education. Some are highly educated — some are barely literate. Their thoughts are ahead of their time.

RESILIENCE
Achievers have a remarkable ability to bounce back after mistakes and failures. They regroup, and try again. In fact, most of them don’t accept failure as a reality — to them it doesn’t exist. Every so-called failure is an opportunity to improve and learn. Every step is a step forward, no matter how it appears on the surface.

RISK TAKING
Achievers are more than willing to venture into the fields of the unknown and to gamble their reputations, their careers, their health, their wealth, and even their safety, in pursuit of their goal. Not only are they willing to take risks, but they thrive on it. They are true pioneers who dare to break with convention, to defy common thought and belief, to shatter the paradigms to which their societies are rigidly attached.

INDEPENDENCE
Achievers have a reliance on self, a detachment from the opinions and ways of the world, that enable them to pursue their inner calling. Shakespeare’s famous quote “To Thine Own Self Be True” is never more fully realized than in the lives of great men and women who followed their own hearts first.

SENSE OF HIGHER PURPOSE
To Achievers, their work or goal is linked with something greater than the product itself. They often feel they HAVE NO CHOICE. What they do, they are compelled to do. It might be by God, service to humanity, truth, or beauty. It’s what gives them their focus, conviction, strength, and independence.

Luther Gullick and L. Ulrich expounded on the role of managers in each organization. Banking on Fayol’s PLOCC, they coined the word POSDCORB. POSDCORB stands for Planning, Organizing, Staffing, Directing, Controlling, Reporting, and Budgeting.

Planning-One of the vital functions of managers is planning. The planning function includes defining organizational goals, establishing strategy for achieving the goals, and developing a comprehensive hierarchy of plans to integrate and coordinate the activities. The manager essentially decides what he wants to accomplish. For organizations divided into units, the heads of each units also perform their own planning. The goals of each unit should be aligned to the whole organization’s objectives.
Planning in each organization may be based on short and/or long term goals. To make the explanation easier, planning involves pin-pointing what needs to be done, how it will be done, and who will be doing what needs to be done. Some would even go as far as planning how a certain program will be evaluated prior to actually executing it.
An important element of planning is forecasting. The manager should possess a keen foresight as regards to how a company can maintain its competitive edge. Managers can sharpen their forecasting abilities by studying market and industry trends. It is vital that managers be attuned to what is current and up-to-date.

Organizing- Organizing includes determining what tasks are to be done, who are to do them, how the activities will be grouped, who reports to whom, and what decisions are to be made. In organizing, the manager decides what jobs need to be filled and sets the duties and responsibilities attached to each one. All jobs within a unit and/or organization should be interrelated. This necessitates coordination. Hence, the manager also directs and coordinates the people in the organization.

Staffing-The manager is also involved in an important function referred to as staffing. Being the head of a unit, he, among others, is expected to know what his unit needs. Meeting the needs include finding the right people who could meet its needs. Organization and staffing are closely interrelated. As organizations grow, new positions are created and filled. Staffing is a continuous function also since people come and go- they resign, retire, or get transferred to other positions. Here, the manager determines what positions are open and needed in his department. He could request these people from the HR department who in turn, sources out the right people.

Directing-Being managers, they should have the necessary facility to make people act according to the organization’s plans and objectives. When we say directing, it refers to telling people what to do and what is expected of them. Good managers also make sure that his staff and subordinates continue to improve their skills. Proper direction promotes employee empowerment.

Controlling- This points to the manager’s task of monitoring the organizations performance. Thus, control determines what progress has been made towards the achievement of goals. Control systems are likewise necessary for preventive and improvement purposes. Management must have an instrument to check and assess the different work processes and employee performance. He must be well aware of what is happening, so that he can implement ways to make necessary changes, and consequently, to achieve the objectives and the goals set by the organization.

Reporting- This points to the manager’s task of keeping the unit and organization informed. Reporting can be done by the manager to the higher-ups or the subordinate to the manager and vice versa. Employees, even those in the lower ranks, would feel a sense of importance when organizational matters and issues are relayed to them. Indeed, transparency in the organization has its many benefits. Aside from increasing employee morale, management will also benefit from collective ideas and suggestions.

Budgeting- This involves fiscal planning, accounting, and control. It is a rigid and detailed process of reviewing previous years’ expenses and financial documents and forecasting the financial needs for the succeeding year.

JUST THINK! (6 Thinking Hats of Dr. Edward de Bono)
Brief Summary
The predominant thinking method that is used around the world today has not changed for centuries.  It largely came about from three Greek philosophers: Socrates, Plato, and Aristotle – collectively known as “The Gang of Three”.

From the Gang of Three, a thinking system was developed.  This was based on the search for the “truth.”

• This search was going to be carried out through the method of argument.
• Critical thinking should be sought to attack the “untruth.”
• To this day, argument is said to be still the basis of our normal thinking.

The purest form of this type of thinking is in the law courts where the prosecution takes one side of the argument and the defense takes the other side. Each strives to prove that the other side wrong. The “truth” is to be reached by argument.

Argument is a useful tool of thinking. But argument is inadequate as the main tool of thinking.  Argument lacks constructive energies, design energies, and creative energies.  Today there is a huge need to be constructive and creative. There is a need to solve problems and to open up opportunities. There is a need to design new possibilities, not just to argue between two existing possibilities.

Parallel Thinking
Luckily for us, we now have a more constructive alternative to the argumentative type of thinking – parallel thinking. In parallel thinking each thinker puts forward his or her thoughts in parallel with the thoughts of others – not attacking the thoughts of others.  Adversarial confrontation is replaced by a cooperative exploration of the subject.

Parallel thinking is best exemplified by the Six Thinking Hats Method, which was developed by Dr. Edward de Bono.

Dr. Edward de Bono
Dr. Edward de Bono is a world-known expert in creative thinking. He has published many books that introduced new techniques for facilitating creative and productive thinking in the workplace. Multi-national corporations and governments of countries have used his expertise to promote effective creative thinking and decision-making. The 6 Thinking Hats is one such technique. You may find it useful in group work, especially in the workplace.

6 Thinking Hats
The Six Thinking Hats method is a powerful technique that helps you look at important decisions from a number of different perspectives.  It helps you make better decisions by forcing you to move outside your habitual ways of thinking.  It helps you understand the full complexity of the decision, and spot issues and opportunities to which you might otherwise be blind.

Each of the six thinking hats represent a certain type of thinking that could be “worn” by a person or group.  The main idea is to have the person or group only “wear one hat at a time” when considering a problem. The wearing of the hat is metaphorical. At any one time, everyone will wear the same color; in other words, look at the problem at hand from only one perspective, the perspective indicated by the hat color.

The Benefits of the Six Hat Method
The following are some of the most important benefits of using the six hats method:
1. Improves cross-cultural interaction.
2. Reduces conflict.
3. Encourages cooperation.
4. Enhances quality of thinking.
5. Supports other change initiatives.
6. Saves Time.
7. Improves Creativity & Innovation.
8. Uses a thinking framework that encourages full exploration of the issues.
9. Works – see results immediately.
10. Simple to learn, use, and implement.
11. Not dependent on others (you can use it by yourself).
12. Modifies behavior without attacking it.
13. Empowers.
14. Can be used at all levels.
15. Makes time for creative thinking to develop alternative and innovative approaches.
16. Results to more effective and productive meetings.

The Hats
The white hat
Think of white paper, which is neutral and carries information.
The white hat covers facts, figures, data, and information. Too often facts and figures are embedded in an argument or belief. Wearing your white hat allows you to present information in a neutral and objective way. When you think of white, think of neutral. de Bono has categorized information as a neutral subject. The white hat has to do with data and information.
Questions you might ask while wearing your white hat include:

1. What information do we have here?
2. What information is missing?
3. What information would we like to have?
4. How are we going to get the information?

When all your group members put on their white hats, they focus directly on the information. For the moment everyone looks to see what information is available, what is needed, and how it might be obtained. Proposals, opinions, beliefs and arguments are put aside.

The red hat
Think of fire and passion.
The red hat covers intuition, feelings, hunches and emotions.
Usually, feelings and intuition can only be introduced into a discussion if they are supported by logic. Often, the feeling is genuine but the logic is spurious. Wearing the red hat allows you to put forward your feelings and intuitions without the need for justification, explanation or apology.
The red hat allows people to show their emotions on a subject, their gut feelings. People don’t need to justify their statements. It is often important to get feelings out in the open, rather than have people at a meeting have hidden agendas, feelings, or misgivings. The red hat allows these feelings to be expressed, to come out in the open.  The idea is that these statements are known to be “feelings” and nothing more. Once they are stated, the meeting can move on to a more constructive approach.
Putting on your red hat, you express your feelings such as the ones below:

1. My gut-feeling is that this will not work.
2. I don’t like the way this is being done.
3. This proposal is terrible.
4. My intuition tells me that prices will fall soon.

The red hat allows feelings, as such, to come into the discussion without pretending to be anything else. It is always valuable to get feelings out into the open.

The black hat
Think of a stern judge wearing black robes.
The black hat is the hat of “caution” and “judgment”.
Wearing the black hat allows you to consider your proposals critically and logically. The black hat is used to reflect on why a suggestion does not fit the facts, the available experience, or the system in use.  The black hat is for critical judgment. It points out what cannot be done. It is hoped that the black hat role will prevent us from making mistakes.

Wearing your black hat, you might consider the following:

1. Costs. (This proposal would be too expensive.)
2. Regulations. (I don’t think that the regulations would allow …)
3. Design. (This design might look nice, but it is not practical.)
4. Materials. (This material would mean high maintenance.)
5. Safety issues. (What about handrails?)

Mistakes can be disastrous. So the black hat is very valuable. It is the most used hat and possibly the most important hat. However, it is very easy to overuse the black hat. For example, if caution is used too early in the problem solving process, it can easily kill creative ideas.

The yellow hat
Think of sunshine.
The yellow hat is for optimism and the logical positive view of things. Wearing the yellow hat allows you to look for benefits, feasibility and how something can be done.  The yellow hat role is for discussing ONLY the positive view of problems and solution possibilities. The yellow hat looks for benefits (and feasibility), but must be logically based, not intuitive like the red hat.

We are often better with the black hat. We are good at seeing what won’t work, as opposed to what will. Forcing ourselves to look only at the positive aspects can also be very valuable.

Questions you might ask while wearing the yellow hat include:

1. What are the benefits of this option?
2. Why is this proposal preferable?
3. What are the positive assets of this design?
4. How can we make this work?

Yellow hat thinking is a deliberate search for the positive. Benefits are not always immediately obvious and you might have to search for them. Every creative idea deserves some yellow hat attention.

The green hat
Think of vegetation and rich growth.
The green hat is specifically concerned with new ideas and new ways of looking at things. This is the hat for:

1. creative thinking
2. additional alternatives
3. putting forward possibilities and hypotheses
4. interesting proposals
5. new approaches
6. provocations and changes

The green hat makes time and space available to focus on creative thinking. Even if no creative ideas are forthcoming, the green hat asks for the creative effort. Often green hat thinking is difficult because it goes against our habits of recognition, judgment and criticism.

Questions you might ask while wearing your green hat include:

1. Are there any other ideas here?
2. Are there any additional alternatives?
3. Could we do this in a different way?
4. Could there be another explanation?

The blue hat
Think of the sky and an overview.
The blue hat is the overview or process control. It is for organizing and controlling the thinking process so that it becomes more productive. The blue hat is for thinking about thinking. In technical terms, the blue hat is concerned with meta-cognition.

The blue hat is the hardest one to understand. It deals with controlling the thinking process. The blue hat is often “given” to one person, who controls what hat will be “worn”, hence controlling the type of thinking being used. The different colors don’t always follow in the same order. Depending on the situation, and the mix of people, it might be better to let people get their negative thoughts out first, or their intuitive sense, and then use yellow or green to move ahead. The blue hat comments on the thinking being used, asks for conclusions, decisions, etc. The blue hat can move from person to person, or can be a chairperson.

Wearing your blue hat, you might:

1. look not at the subject itself but at the ‘thinking’ about the subject
2. thinks about the thinking being used during a group meeting
3. sets the agenda for thinking
4. suggests the next step in the thinking, ” I suggest we try some green hat thinking to get some new ideas”
5. asks for a summary, conclusion, or decision, “Could we have a summary of your views?”

Reminders For Using The Hats

When using the hats, it is important that someone should act as a facilitator during the session/s.  Ideally, this facilitator should be well versed in using the method.  As facilitator, the person should clarify the focus of the team’s thinking, as well as plan the sequence and timing of the thinking.  He/she should ask for changes in thinking if needed and manage the requests from the group for any change in thinking.  Lastly, he should know how to facilitate periodic or final summaries of the session.

As a member of a team that will use the six hats method, you should follow the lead of your facilitator.   You should work within the time limits set and learn to contribute forthrightly and fully under each hat.  More importantly, you should learn to use and understand the nature of each hat.

Read more on Edward de Bono’s site:

www.edwdebono.com

A long time ago, the primary concern of companies is profit maximization.  Milton Friedman, in his book Capitalism and Freedom, forcefully argued that a business has no social responsibilities other than to maximize profits.  He stressed that businesses’ one and only social responsibility is to use its resources and engage in activities designed to increase profits so long as it stays within the rules of the game, which is to say, engage in open and free competition, without deception or fraud.

Critics of this viewpoint corrects that profit maximization is not wrong.  They, however, maintain that corporations have other responsibilities as well- to the consumers/clients, the employees, and of course, the society at large.

Putting socially responsible actions in another perspective, they could also actually help in improving corporate profits.  For example, charitable contributions made by a company may attract the interest of possible clients who are driven by the same cause.

For a relatively young organization like ours, we can only do so much in the meantime.  However, over the years, our community outreach programs continue to take shape.  Linking it to the concept of family, we try to reach out to the financially troubled people that are actually a part of our organization- for example, our janitors, canteen personnel, and their families.  Also, we have started to do our own share of community work, particularly in public schools.  For example, every summer vacation, we volunteer to do a total make-over of a school or a classroom whose students are relatively of the lower class.  Then, we give out old instructional materials, toys, notebooks, and other school supplies for them to have a good start for the coming school year.  It is important to note here that students who go to these schools, though with very low tuition fees, belong in families who are having difficulties making ends meet.  Though our actions cannot be classified as big time charitable programs, we are nonetheless awarded with smiles of appreciation and gratitude from them- gestures that indicate that we are on the right track.

Our programs are actually not much, but at least, they are a good start.  As we continue to be gifted with many blessings, we wish to share these blessings with others, too.

During my MA years, we were tasked to do a 10-page book review about several titles that were related to Human Resources Management. I was assigned the Art of War book. I admit that the book was not entirely reader friendly. I had to read it two times to fully comprehend and consequently appreciate the material. I now see the relevance of the author’s ideas with the advent of disturbing issues in the organization. And as far as I am concerned, I would want to give credit to where credit is due. Credit so to speak means victory to the person who truly deserves to lead us. But what is victory and how can it be achieved? Sun Tzu outlines the five essentials for achieving victory.
He will win who knows when to fight and when not to fight.
He will win who knows how to handle both superior and inferior forces.
He will win whose army is animated by the same spirit throughout all its ranks.
He will win who, prepared himself, waits to take the enemy unprepared.
He will win who has military capacity and is not interfered with by the sovereign.
…If you know the enemy and know yourself, you need not fear the result of a hundred battles. If you know yourself but not the enemy, for every victory gained you will also suffer a defeat. If you know neither the enemy nor yourself, you will succumb in every battle.

1) Set goals
2) Develop Action Plans
3) Review Progress
4) Appraise Overall Performance
Managers who employ the MBO approach enjoy the following advantages:
1) It encourages a more cohesive work environment and with proper motivation, even subordinates develop a stronger commitment to achieving organizational objectives.
2) Some activities can be classified as ‘high priority’. Thus, these receive clear and purposeful attention.
3) There is better communication between managers at various organizational levels. Better communication enhances collaboration. Even subordinates are informed of the plans and activities in other parts of the organization.
However, the MBO process also has its disadvantages:
1) Embracing the MBO approach can be difficult to adopt in very complex organizations.
2) MBO requires great time and effort.
3) Managers and subordinates need to meet regularly to document plans, review performance, discuss corrective actions, and revise objectives. Thus, the process tends to be bogged down with paper work and schedules.
4) To succeed, MBO requires strong commitment from the top management and individual managers. When these conditions are absent, MBO will not be effective.

Industry Analysis
Industry – group of firms producing a similar product or service.
The firm interacts with a more specific environment, the industry.
4 main components that exert influence on industry:
1. Suppliers
2. Competitors and potential substitutes
3. Potential entrants
4. Buyers

Competitors, potential substitutes and potential entrants
The number of firms operating within the industry as well as the number of firms wishing to enter the industry are regulated by barriers to entry which determine continued participation in and/or exit from the industry.  Some of the constraints are the rate of industry growth, the level of fixed costs, and the degree of differentiation.  Potential competitors are not limited to firms considering to offer exactly the same or differentiated products or services, substitutes to the existing products and services are also a potential threat.  Substitute products/services may co-exist with the present range of products and services or may render the present range obsolete.

Buyers and Suppliers
The competitive situation of business firms is influenced by the nature of its transactions with its buyers and suppliers.  Buyers exert their power in the industry when they force down prices, bargain for higher quality or more services, and play competitors against each other.  Suppliers can exert bargaining power over participants in an industry by threatening to raise prices or reduce the quality of purchased goods or services.  In addition, we usually think of suppliers as other firms.  But labor has to be recognized as a supplier as well – one that exerts great power in many industries.

Michael Porter’s Approach to Industry Analysis
-    The ‘five forces model’ developed by Michael E. Porter, has been the most commonly utilized analytical tool for examining the competitive environment.
-    It describes the competitive environment in terms of five basic forces: threat of new entrants, bargaining power of the firm’s suppliers, bargaining power of the firm’s customers, threat of substitute products, and intensity of rivalry among firms.
-    The collective strength of these forces determines the ultimate profit potential in the industry, which profit potential is measured in terms of long run return in invested capital.
-    They also determine the nature and extent of competition.
-    The stronger each of these forces is, the more companies are limited in their ability to raise prices and earn greater profits.
-    A strong force can be a threat, likely to reduce profits
-    A weak force can be an opportunity, may allow greater profits

1.    threat of new entrants
New entrants- newcomers to an existing industry.  They typically bring new capacity, a desire to gain market share, and substantial resources.
Entry barrier – an obstruction that makes it difficult for a company to enter an industry. Economies of scale, product differentiation, capital requirements, switching costs, access to distribution channels, cost disadvantage independent of size, government policy are examples of entry barriers.
2.    rivalry among existing firms
Rivalry- amount of direct competition in an industry.
Intense rivalry is related to the presence of the following factors: number of competitors, rate of industry growth, product or service characteristics, amount of fixed costs, capacity, height of exit barriers and diversity of rivals.
3.    threat of substitute products or services
Substitute products- products that appear different but can satisfy the same need as another product.

4.    bargaining power of buyers
Buyers can affect industry through their ability to force down prices, bargain for higher quality or more services, and play competitors against each other. A buyer is powerful when:1)A buyer purchases a large proportion of the seller’s product or service, 2)A buyer has the potential to integrate backward by producing the product itself, 3)Alternative suppliers are plentiful because the product is standard or undifferentiated, 4)Changing suppliers costs very little, 5)The purchased product represents a high percentage of a buyer’s costs, thus providing an incentive to shop around for a lower price, 6)A buyer earns low profit and is thus very sensitive to costs and service differences, 7)The purchased product is unimportant to the final quality or price of a buyer’s products or services and thus can be easily substituted without adversely affecting the final product.
5.    the bargaining power of suppliers
Suppliers can affect an industry through their ability to raise prices or reduce the quality of purchased goods and services.  A supplier is powerful when 1)The supplier is dominated by a few companies, but it sells to many, 2)Its product or service is unique or it has built up switching costs, 3)Substitutes are not readily available, 4)Suppliers are able to integrate forward and compete directly with their present customers, 5)A purchasing industry buys only a small portion of the supplier group’s goods and services and is thus unimportant to the supplier.

Applying the Five Forces Model
Analyzing the industry using a five forces model helps a company choose competitive strategy options.   In combination, the five forces can be used to explain the nature of competition in an industry, as well as examine a company’s profit potential.

Competitive Forces and Industry Evolution
Most industries evolve over time through a series of stages from growth to maturity, to eventual decline.
The strength of the forces varies according to stages.  The industry life cycle can be useful to predict trends among the forces that drive industry competition.
If the industry is new, people buy regardless of price because it fulfills a unique need.  This is likely to be a fragmented industry, an industry in which no firm has a large market share, each firm serves only a small price of the total market.  As new competitors enter, prices drop as a result of competition.  As a result, competitors try to differentiate their products from one another to avoid fierce price competition common to a maturing industry.  As an industry enters maturity, products become commodities.  This is now a consolidated industry.  A consolidated industry dominated by a few large firms struggling to keep their products differentiated.  As an industry goes through maturity and possible decline, the growth rate slows down and may decrease.

Regulators
There are governmental institutions that, as a component of the general environment, affect not only one industry.  Certain constitutional provisions likewise, pose as opportunities or threats to firms.
Regulation
Selznick defines it as sustained and focused control exercised by a public agency over activities that are valued by a community.
Baldwin and Cave recognize as the first mode of regulation “ a specific set of commands, where regulation involves the promulgation of a binding set of rules to be applied by a body devoted to this purpose”.  Influence also plays a role, as regulation can be a “deliberate state influence”, it has a broader sense and covers all state actions designed to influence industrial or social behavior.  Regulation can also encompass “all forms of social control or influence”, where all mechanisms affecting behavior are deemed regulatory.
Minogue states that regulation is based on rules, which may give strict directives, or be broadly enabling in ways which permit further negotiation, rules may also be framed in ways, which concede discretion over their detailed negotiation.

Why the need for government regulation?
1.    need to protect public interest
2.    creation/facilitation of conditions for effective markets
Landmarks in Philippine Regulatory Governance
1.    Constitution of 1987
2.    Entry of the Philippines in the World Trade Organization
Economic regulation
It is the means by which private firms are constrained from anti-competitive behavior.  It aims to bring about social outcomes that approximate that of a competitive environment, particularly in situations where there is a market failure or imperfection, as in a monopoly.
Competition
It is a fundamental economic regulatory force.  Regulation and competition policy are closely intertwined.  The objectives of competition policy being:
1.    establish a competitive order as an end in itself to safeguard economic freedom
2.    maintain a competitive order to foster economic efficiency and technological and economic progress
3.    provide for a level playing field of fair competition
4.    maintain a decentralized structure of supply
Major Laws Regulating the Economy
The regulatory regime is shown in three types of laws :
1.    laws on the regulation, supervision and even the control of the whole economy or specific portions of it.
2.    laws restricting entry and competition
3.    laws promoting agriculture, industry and social services
Devolution of regulation
Some powers and functions of the national government were transferred to Local Government Units (LGU’s).  Regulatory powers include:
1.    power to reclassify agricultural lands
2.    power to enforce environmental laws and the Building Code
3.    process and approve subdivision plans
4.    inspect food products
5.    regulate the operation of tricycles
6.    regulate the provision of health, agriculture, social welfare and other services already devoted to them
7.    tax real property
8.    give business license and permit
9.    collect business taxes
Institutional Framework
Legislative and Judicial Involvement in Regulation
The focus of the legislative section is on the committees directly involved in regulation and the process a bill undergoes to become a law.  The judiciary’s role is to interpret economic policies in the light of the Constitution.
The Executive Branch and Regulation
Regulatory institutions in the Philippines were established at the start of American colonial administration.  One of the first established was the Securities and Exchange Commission (SEC).  As of 2002, there are 18 government agencies engaged primarily in economic regulation.
Non-state regulatory mechanisms
This is the private sector’s power of regulation.  It has introduced two relatively new regulatory forms: the self-regulatory organization and the organization created out of privatization.
Regulatory institutions in the Philippines need a balance of involvement and independence for them to be able to operate effectively.  Involvement should also include disinterest, as regulators must be at arm’s length from the focus of regulation.  This is so because no industry exists in a social vacuum where the interests of the individual members are necessarily the interest of the public.

Influence System involves people taking the roles of influencer and influence.  It refers to situations wherein behavioral changes occur as a result of relationships among people.  These relationships involve interaction which is direct or indirect.

SPECTRUM OF MEANS FOR INFLUENCING BEHAVIOR
1)Emulation – requires no direct contact between individuals; yet it is a powerful influencer in behavior.  It is a subtle phenomenon which is more indicated in our reference to celebrities.  In organizations, certain individuals become aware of the behavioral patterns of their co-workers that they tend to model this behavior in hopes of attaining similar success.
2)Suggestion – involves direct and conscious interaction between individuals or between individuals and a group.  It explicitly attempts to influence behavior by presenting an idea or advocating a course of action.
3)Persuasion – implies urging and the use of inducement in order to evoke a desired response.  Skinner’s operant conditioning can be viewed as a form of persuasion.
4)Coercion – involves forcible constraint, including physical pressure.  In organizations, salaries and promotions and even threat of dismissal can be used to constrain or influence behavior.

INFLUENCE TACTICS
Pressure- Use of demand, threat or intimidation
Ingratiation- Seeking to get you in a good mood or to think favorably of him/her before asking you to do something
Upward Appeal- Persuading you that the request is approved by or appeals to higher management
Rational Persuasion- Using logical arguments and factual evidence to persuade you of the validity of the request
Exchange- Making an explicit or implicit promise that you will receive awards or tangible benefits if you comply with request or reminds you of past favor to be reciprocated
Inspirational Appeals- Making an emotional request or an arousal of enthusiasm by appealing to your values and ideals
Coalition- Seeking to aid others to persuade you to do something or use the support of others as an argument for you to support it
Consultation- Seeking your participation in making a decision or planning

POWER
This refers to the capacity that person A has to influence the behavior of person B, so that B acts in accordance with person A’s wishes.  This definition implies a potential that need not be actualized to be effective and a dependency relationship.   Power underlies the entire spectrum of means for influencing behavior.  The more power an individual has, the more effective his/ her influence systems

FRENCH AND RAVEN’S 5 SOURCES OF POWER
French and Raven proposed that there were five bases or sources of power:
1.Coercive Power is the power that is based on person A’s ability to cause person B to have an unpleasant experience.  To coerce someone into doing something means to force the person to do it, often with threats of punishment.  Punishment can be in the form of verbal abuse or removal of support.Coercive power uses fear as a motivator, which can be a powerful force in inducing short term action.  However, it is unlikely to have an overall negative impact on the receiver. In the Government, the capacity to tax, arrest, imprison and execute are but a few examples of coercive power.  Public managers need to recognize that management theorists have long emphasized the relative clumsiness and costliness of coercive power.  Forcing and threatening people requires costly vigilance and oversight and can make enemies.
2.Reward Power is the power that is based on person A’s ability to control rewards that person B wants.  Rewards can be in the form of promotions, salary increases, bonuses and other incentives.  It can also stem from the capacity to provide organizational recognition, to include an employee in a social group, or simply to give positive feedback.Reward power can lead to better incentives but only as long as person B sees a strong and clear link between performance and rewards.
3.Legitimate Power is the power that is based on position and mutual agreement.  Persons A and B agree that person A has the right to influence person B’s behavior. People accept this power because they believe that it is desirable and necessary to maintain order and discourage anarchy in a society or organization.   For legitimate power to be effective, person B must believe that person A has the right to tell them what to do.
4.Referent Power is an elusive power that is based on interpersonal attraction.  Person A has referent power over person B because person B identifies with person A and wants to be like person A.  It is the ability to influence through the strength of their personalities.  People who have this source of power have a personal magnetism, an air of confidence and a passionate belief in objectives that attract and hold their followers.   They are most often individualistic and respected by the target. Referent power is a lot like charisma.  This explains why celebrities are paid millions of dollars to endorse products.  If person A holds special characteristics that person B (who desires to please person A) can identify with, then person A can have influence over the actions of person B.
5.Expert Power is the power that exists when person A has the information or knowledge that person B needs.  It depends on education, training and experience. For expert power to work, three conditions must be met: person B must believe that person A’s knowledge is accurate, the knowledge must be relevant and useful for person B and that person B believes that person A is really an expert. Experienced officials and observers report that the skill, integrity, experience and expert knowledge of a public administrator can give that administrator a positive form of power with members of the organization as well as external authorities.
Researches on the Relationship of Bases of Power and Employee Effectiveness:
Reward Power- Provides temporary compliance on the part of employees.  Requires the leader/manager to be physically present and watchful all the time, otherwise, employees will not work.
Coercive Power- Provides temporary compliance on the part of employees.  Requires the leader/manager to be physically present and watchful all the time, otherwise, employees will not work.
Legitimate Power- Provides compliance on the part of employees but do not have any links to organizational effectiveness or employee satisfaction
Referent Power- Provides compliance plus linkages with organizational effectiveness.  But, it can be a dangerous power due to its extent and intensity in influencing others
Expert Power- Holds the strongest relationship with performance and satisfaction. Also skills, abilities and knowledge are passed on in the organization

Public Management books also referred to the following sources of power in the political dimension :
*Connection Power derives from a (political) leader’s personal ties with important persons inside and outside the organization.
*Dependence Power derives from a people’s perception that they are dependent on the (political) leader either for help or protection.  They gain their power through finding and acquiring resources that others need for their jobs.
*Obligation Power derives from a (political) leader’s efforts to do favors for people who they expect will feel an obligation to return those favors and to develop true friendships with those on whom they depend.

McCLELLAND’S 2 FACES OF POWER
McClelland believes that there are 2 distinct faces of power, one negative, the other positive.
1.Personal power is the negative face of power.  This is power used for personal gain.  Leaders or managers who use personal power are often referred to as “power hungry”.  Personal power is a win-lose form of power in which the manager tends to treat others as objects to be utilized to get ahead.  It is based on the traditional notion of power as domination over others.
2.Social power is the positive face of power.  This is power used to create motivation or to accomplish group goals.  McClelland found that the best managers are those who possess a high need for social power coupled with a relatively low need for social affiliation.

McClelland also found that managers who use power successfully have four power-oriented characteristics.
1.Belief in the authority system-They believe that the institution is important and that the authority system is valid.  They are comfortable influencing and being influenced.  The source of their power is the authority system of which they are a part.
2.Preference for work and discipline- They like their work and they are also very orderly.  They believe that work is more than its income producing value.
3.Altruism-They put the company and its needs before their own.  They see their own well-being as integrally tied to the corporate well-being.
4.Belief in Justice – They believe justice is to be sought above all else.  People should receive that to which they are entitled and that which they earn.

SYMBOLS OF POWER
Rosabeth Moss Kanter discusses who has power and who is powerless in an organization.  She provides several characteristics of powerful people in organizations.
1.Ability to intercede for someone in trouble
2.Ability to get placements for favored employees
3.Exceeding budget limitations
4.Procuring above-average raises for employees
5.Getting items on the agenda at meetings
6.Access to early information
7.Having top managers seek out their opinions

Kanter also wrote about symbols of powerlessness.
1.First line supervisors can display three symptoms of powerlessness – overly close supervision, inflexible adherence to rules and a tendency to do the job themselves.
2.Staff professionals like accountants and lawyers tend to – resist change and protect their turf.
3.Top executives feel powerless when they – focus on budget cutting, punishing others and using dictatorial and top-down communication.

Organizational politics – This is the use of power and influence in organizations.
Political behavior – These are actions not officially sanctioned by an organization that are made to influence others in order to meet one’s personal goals.

MACCOBY’S 4 POLITICAL TYPES
1.The Craftsman – He is a technical specialist who likes detail and precision.  He is sincere, modest, quiet and practical.  His goal is to be a good provider.  He is the least political.
2.The Jungle Fighter – He desires success at any cost.  He is unafraid to step on others to go ahead.  There are 2 kinds of jungle fighters-foxes make their nests in their organization and makes it their safe base where as lions conquer other territories and build empires.
3.The Company Man/Woman – He/She is conservative.  The goal is to protect the self and the company.  Concern is more on the security rather than the success of the company.
4.The Gamesman – He likes contests and views business like a game.  He takes calculated risks and thrives on challenge and competition.

AUTHORITY
This is the right to influence another person.  It is the right to perform or command or issue directives and expand resources.  It exists in the formal organization because it stems from the position created by the organization.   It can also be viewed as institutionalized power.  It is based on legal foundations (legislation, articles of incorporation, partnership agreements, by laws) that define an organization’s mission and empower its members to carry out its activities.

TYPES OF AUTHORITY
1) Charismatic – This authority depends on the magical qualities of a leader.  No rules or regulations are involved.  This is more a concept of power.
2) Traditional – Charismatic authority often evolves into traditional authority.  This is when informal status and role systems become stabilized over time.
3) Rational Legal – Traditional authority can evolve to rational legal authority if the system is formally legitimized.

LEADERSHIP
Leadership is A special case of interpersonal influence that gets an individual or a group to do what has to be done. It also refers to the capacity of someone to direct and energize the willingness of people in social units to take actions to achieve the goals.  It involves the crucial functions of championing goals and values, setting direction and inspiring.  Leadership in one sense can draw mainly on blunt power, but usually the term implies legitimate authority.

Leadership can be of a formal or informal nature.  A formal leader can exercise formal influence.  This leader is given the responsibility to perform certain leadership functions because the authority is given to him by the organization.  An informal leader exercises informal influence.  It originates not from the position but rather from a special quality of the individual that is desirable for the group.

Leadership is influence, that is, the art or process of influencing people so that they will strive willingly and enthusiastically toward the achievement of group goals.  The three important elements in this definition of leadership are – influence, voluntary effort and goal achievement.  Without leadership, an organization will only be a confusion of people and machines, or an orchestra without a conductor.  Organizations require leadership to develop their precious assets to the fullest.

LEADERSHIP THEORIES

I. TYPE 1 Theories TRAIT THEORIES
These theories of leadership attempt to identify the traits and/or inherent attributes of leaders, regardless of the leaders’ situation or circumstances.

Stogdill identified a leadership classification system based on six broad categories: physical characteristics, social background, intelligence, personality, task-related characteristics, social characteristics.

Eugene E. Jennings, Richard E. Boyatzis, Harry Levinson and others also conducted their own research to find out the traits that leaders possess but as Jennings’ puts it “ Fifty years of study has failed to produce one personality trait or set of qualities that discriminate leaders from non-leaders.”

*Studies revealed certain traits that leaders possess, however the findings are neither strong nor uniform.  Leadership traits do not necessarily guarantee successful leadership.  They are best viewed as personal competencies which may or may not be used.   This indicates a limitation in being able to identify universal and distinguishing attributes of leaders.

Revival of Trait Theory
John C. Maxwell’s 21 indispensable qualities of a leader
1.Character – Be a piece of the rock
2.Charisma – The first impression can seal the deal
3.Commitment – It separates doers from the dreamers
4.Communication – Without it you travel alone
5.Competence – If you build it, they will come
6.Courage – One person with courage is majority
7.Discernment – Put an end to unsolved mysteries
8.Focus – The sharper it is the sharper you are
9.Generosity – Your candle loses nothing if you light another
10.Initiative – You won’t leave home without it
11.Listening – To connect with their hearts, use your ears
12.Passion – Take this life and love it
13.Positive Attitude – If you believe you can, you can
14.Problem-solving – You can’t let your problems be problems
15.Relationships – If you get along, they’ll go along
16.Responsibility – If you won’t carry the ball, you can’t lead the team
17.Security – Competence never compensates for insecurity
18.Self-Discipline – The first person you lead is you
19.Servanthood – To go ahead, put others first
20.Teachability – To keep leading, keep learning
21.Vision – You can seize only what you can see

Stephen Covey’s Characteristics of Principles-centered leaders
1.Principle-centered leaders are continually learning.
2.Service-oriented.
3.Radiate positive energy.
4.Believe in other people.
5.Lead balanced lives.
6.See life as an adventure.
7.Synergistic.
8.Exercise for self-renewal.

II. TYPE 2 Theories BEHAVIOR THEORIES
These theories are concerned with describing leader’s actions and behaviors.  They classify leaders in one of three categories and examine common behavioral dimensions among leaders.

Leadership Styles
Kurt Lewin, Lippitt and White did leadership decision experiments in 1939 and identified three different styles of leadership
Autocratic
In the autocratic style, the leader takes decisions without consulting with others. The decision is made without any form of consultation. In Lewin’s experiments, he found that this caused the most level of discontent. An autocratic style works when there is no need for input on the decision, where the decision would not change as a result of input, and where the motivation of people to carry out subsequent actions would not be affected whether they were or were not involved in the decision-making.
Democratic
In the democratic style, the leader involves the people in the decision-making, although the process for the final decision may vary from the leader having the final say to them facilitating consensus in the group.
Democratic decision-making is usually appreciated by the people, especially if they have been used to autocratic decisions with which they disagreed. It can be problematic when there are a wide range of opinions and there is no clear way of reaching an equitable final decision.
Laissez-Faire
The laissez-faire style is to minimize the leader’s involvement in decision-making, and hence allowing people to make their own decisions, although they may still be responsible for the outcome.  Laissez-faire works best when people are capable and motivated in making their own decisions, and where there is no requirement for a central coordination, for example in sharing resources across a range of different people and groups.

In Lewin et al’s experiments, he discovered that the most effective style was Democratic. Excessive autocratic styles led to revolution, whilst under a Laissez-faire approach, people were not coherent in their work and did not put in the energy that they did when being actively led.
However, Robert McMurry described the ‘benevolent autocrat’ as an even more effective leader.  The benevolent autocrat gives the impression of being democratic but always makes his or her own personal decision.  He argues that the democratic leader is too slow and unworkable in our fast moving business world.  A benevolent autocrat is powerful, prestigious and respected therefore more effective.

Leadership Styles in Japan
Performance-Maintenance(PM) Theory of Leadership
P-ORIENTED LEADERSHIP
Encourages fast work pace
Emphasizes good quality and high accuracy
Works toward high-quantity production
Demonstrates concern and for rules and regulations
M-ORIENTED LEADERSHIP
Is sensitive to employees’ feelings
Emphasizes comfort in the work environment
Works to reduce stress levels
Demonstrates appreciation for follower contributions

Ohio State Leadership Studies
A study made by Ohio State University investigated the determinants of leader behavior as well as the effect of leadership style and on work-group performance and satisfaction.  Two independent leadership dimensions were identified:
1.    Initiating Structure – the degree to which the leader organize and define task, assign the work to be done, establish communication networks and evaluate work-group performance.  This is analogous to a task-oriented leadership style.
2.    Consideration – the behavior that involves trust, mutual respect, friendship, support and a concern for the welfare of the employee.  This is analogous to an employee-oriented leadership style.

Blake and Mouton Managerial Grid
The two underlying dimensions of the grid are labeled:
1.    Concern for Production (CPr)
2.    Concern for People (CPe)

*Low CPe, High CPr : Authority-Obedience Manager
emphasizes production and works to achieve high levels of efficiency in operations by minimizing any interference from the human element.  Production maximization is the hallmark of this manager.
*High CPe, Low CPr : Country Club Manager
gives thoughtful attention to the needs of people and their relationships so as to create a comfortable working environment.  Good feelings are the hallmark of this manager.
*Low CPe, Low CPr : Impoverished Manager
exerts the minimum effort to get essential work done while maintaining organizational membership.  This is similar to the laissez-faire style.
*High CPe, High CPr : Team Manager
emphasizes high levels of work accomplishments through committed trustworthy people.  There is no trade-off between people and production.

Job-centered and Employee-centered Leadership Style
Michigan State University also conducted its own research.  They came up with two distinct styles of leadership:
1.  Job-centered leadership style – focuses on the use of close supervision, legitimate and coercive power, meeting schedules and evaluating work performance.  This belongs to the task-oriented area.
2. Employee-centered leadership style – focuses on delegation of responsibility and a concern for employee welfare, needs, advancement, and personal growth.

Likert’s System 4 Management
Rensis Likert developed a description of four approaches to leadership taken by managers, ranging from autocratic to participative.  Likert believes the one best way to lead is through ‘system 4 participation’.
Each style or system is defined by at least seven operating characteristics.
1.    character of motivational forces
2.    character of communication process
3.    character of interaction-influence process
4.    character of decision making process
5.    character of goal-setting or ordering
6.    character of control process
7.    performance characteristics

System 1 – Exploitative-Authoritative Leadership Style
Managers in System 1 are autocratic, relying on traditional structures of authority for decision making.  Formal authority and rigid chain of command process underscore human relations, with little or no interaction between hierarchical levels.  Fear is used as a motive and communication is mostly downward.

System 2 –Benevolent-Authoritative Leadership Style
Managers in System 2 are benevolent but still at the autocratic end.  Decision making is structured along hierarchical lines but a mellowing of relationship allows for productive interaction between levels.  Economic rewards are used more than fear as motives and communication is slightly better.

System 3 – Consultative Leadership Style
Managers in System 3 are consultative and tend to include subordinates in decisions.  Their behaviors fall short of allowing a fully participative system, but they seldom make decisions unilaterally.  Systems of communication are more open as subordinates are brought into the problem-solving process.

System 4 – Participative Leadership Style
It is considered by Likert as the optimal approach to leading people in our dynamic and educated society.  Managers in System 4 have a fully participative style of leadership.  They rely on team building approaches rather than stratified methods of organization.  Subordinates are part of the decision-making and problem-solving processes.  Consensus among group members is crucial.  Motivational forces come from ego, economics and group involvement in decision making and goal setting.  In Likert’s view, participative management encourages acceptance of decisions while providing for broad-based support of collective goals and objectives.

3.    TYPE 3 Theories CONTINGENCY THEORIES
These theories are concerned with identifying the situationally specific conditions in which leaders with particular traits are effective.  It focuses on how the leader’s traits interact with situational factors in determining team effectiveness in task performance.

Fiedler’s Contingency Theory
This proposes that the fit between the leaders’ need structure and the favorableness of the leaders’ situation determine the team’s effectiveness in work accomplishments.  This theory assumes that leaders are task-oriented or relationship-oriented depending on how the leaders obtain their primary need gratification.
1.    Task-oriented leaders – are primarily gratified by accomplishing tasks and getting work done.
2.    Relationship-oriented leaders – are primarily gratified by developing, good, comfortable,interpersonal relationships.
Fiedler classifies leaders using the LPC (Least Preferred Co-worker) scale and evaluates the leader’s situation in terms of task structure, position power and leader-member relations through the Group Atmosphere Scale.  High LPC scorers are more of relationship oriented, low LPC scorers are task-oriented.  Fiedler concluded that:
-Low and high LPC scorers can be effective if placed in the right situation.
-Low LPC scorers can be effective in favorable and unfavorable situations.
-High LPC scorers are effective in situations with immediate favorableness.

4.    TYPE 4 Theories BEHAVIOR CONTINGENCY THEORIES
These theories are concerned with identifying the specific leader behaviors that are most effective in specific leader situations.  It focuses on the behavioral contingencies of a leader that yield the most effective performance by followers.

Robert Houses’ Path Goal Theory
The basic role of the leader is to enhance follower motivation so that the followers are able to experience need gratification.  The leader must use structure, support and rewards to create a work environment that helps employees reach the organizations’ goals.  This theory holds that effective leaders increase motivation and satisfaction when they help subordinates pursue important goals and see how to achieve them-that is, to see the goals and the paths to them and to follow the paths effectively.

Vroom-Yetton-Jago Normative Decision Theory
This theory recognizes the potential benefits of authoritarian, as well as democratic, styles of leader behavior.
Situational Determinants of Appropriate Leader Behavior
-    quality of decisions to be made
-    acceptance of that decision by employees
-    time available for the decision
-    information available to the manager

The Situational Leadership Model
Paul Hersey and Kenneth Blanchard suggest that the leader’s behavior should be adjusted to the maturity level of the followers.
Two Dimensions of Leader Behavior
1.    task or production oriented
2.    relationship or people oriented

Follower Maturity – determined by the ability and willingness of the followers to accept responsibility for completing their work.  Followers who are unable and unwilling are the least mature and those who are both able and willing are the most mature.
Four Levels of Follower Maturity
1.    Unwilling/unable – leaders should follow a telling style of leadership.  This style is characterized by high concern with the task and strong initiating structure behavior coupled with low concern with relationships and little consideration behavior.
2.    Willing/unable – leaders should use a selling style, there is high concern for the task and relationship.
3.    Unwilling/Able – leaders are required to use a participating style of leadership.  This is characterized by high concern for relationships and low concern for tasks.
4.    Willing/Able – leaders are required to use a delegating style of leadership.  This is characterized by a low concern with the tasks and responsibility. The followers accept responsibility.

Transactional Leadership- motivate followers by recognizing their needs and providing rewards to fulfill those needs in exchange for their performance and support.

Kinds of Leadership
Transformational Leadership is the ability to raise follower goals to higher plains and to focus on higher level goals same as Maslow’s self actualization concept. Bennis and Nannus’ Transformational leadership relies on power but not in an overly controlling way.  These leaders use extraordinary talents for coupling visions of success and directions to them and the empowerment and motivation of others to contribute.

Bass on the other hand, states that transformational leadership can have a transforming influence through a negative shift.  He argues that this form of leadership involves an emotional and intellectual component.  This involves ‘charisma’ an inspiring influence on followers.  The intellectual component involves processes of careful attention to individual followers, often of a benevolent, developmental, mentoring nature, as well as intellectual stimulation.

A variant of transformational leadership is a dynamic leadership in a sense that the leaders throw themselves into a relationship with followers who will feel elevated by it and often become active themselves, thereby creating new cadres of leaders.  This is transcending leadership, which is leadership engaged.

Reform leadership is seeking change through gradual means.  A reformer is an insistent exclusivist particularist.

Revolutionary leadership is seeking complete, pervasive, profound and radical transformation of the entire social, economic or political system.

Charismatic Leadership Theory says that followers make attributions of heroic extraordinary leadership abilities when they observe certain behaviors.
Key Characteristics of Charismatic Leaders
1.    self confidence
2.    vision
3.    ability to articulate vision
4.    strong convictions about the vision
5.    behavior that is out of the ordinary
6.    appearance as a change agent
7.    environmental constraints and resources needed to bring about change

Research suggests impressive correlations between charismatic leadership and high performance and satisfaction among followers.  People working for charismatic leaders are motivated to exert extra effort and because they like their leader, express great satisfaction. Charismatic leaders on the other hand, may become a liability to an organization once a crisis and need for dramatic change subside.

How Today’s Managers can lead leaders.
1.    Lead yourself and others by example
2.    Develop the brightest and best talent
3.    Point to the vein in the mine
4.    Support and trust the leaders you lead
5.    Don’t lead unless you are ready for adventure
6.    A thirty hour investment per employee

Famous Leadership Quotes
Lance Secretan, Industry Week, 10/12/98
Leadership is not so much about technique and methods as it is about opening the heart. Leadership is about inspiration—of oneself and of others. Great leadership is about human experiences, not processes. Leadership is not a formula or a program, it is a human activity that comes from the heart and considers the hearts of others. It is an attitude, not a routine.

Unknown
Blessed is the leader who seeks the best for those he serves.

Peter F. Drucker
Leadership is not magnetic personality—that can just as well be a glib tongue. It is not “making friends and influencing people”—that is flattery. Leadership is lifting a person’s vision to higher sights, the raising of a person’s performance to a higher standard, the building of a personality beyond its normal limitations.

Chinese proverb
An army of a thousand is easy to find, but, ah, how difficult to find a general.

Lao Tzu
Be gentle and you can be bold; be frugal and you can be liberal; avoid putting yourself before others and you can become a leader among men.

Donald H. McGannon
Leadership is action, not position.

Harold J. Seymour
Leaders are the ones who keep faith with the past, keep step with the present, and keep the promise to posterity.

Peter Ferdinand Drucker
Effective leadership is not about making speeches or being liked; leadership is defined by results not attributes.

Warren Bennis
Good leaders make people feel that they’re at the very heart of things, not at the periphery. Everyone feels that he or she makes a difference to the success of the organization. When that happens people feel centered and that gives their work meaning.

James L. Fisher
Leadership is the special quality which enables people to stand up and pull the rest of us over the horizon.

Donald H. McGannon
Leadership is action, not position.

Anthony T. Dadovano
A good leader is not the person who does things right, but the person who finds the right things to do.

Talleyrand
I am more afraid of an army of 100 sheep led by a lion than an army of 100 lions led by a sheep.

Walter Lippmann
The final test of a leader is that he leaves behind him in other men the conviction and the will to carry on.

Charles S. Lauer
Leaders don’t force people to follow—they invite them on a journey.

Ralph Nader
I start with the premise that the function of leadership is to produce more leaders, not more followers.

John Maxwell
The first step to leadership is servanthood.

What is motivation?

· According to Buchanan, motivation is a decision making process. The individual chooses the desired outcomes and sets in motion the behavior that is appropriate to achieve the desired outcomes.

Work Motivation

· The psychological forces that determine the direction of a person’s behavior in an organization, a person’s level of effort, and a person’s level of persistence.

Why is Motivation important in businesses?

An organization’s employees are its greatest assets. No matter how efficient your technology and equipment may be, it is no match for the effectiveness and efficiency of your staff.

Organizations with highly motivated employees enjoy the following advantages:

· Results to higher productivity

· Promotes better quality of work with less wastage

· Develops a greater sense of urgency

· Encourages more employee feedback and suggestion (motivated workers take more ownership of their work)

· Demands greater feedback from supervisors and management

THEORIES OF MOTIVATION

These theories specify the needs that people have and the way these needs contribute to motivation and job performance. These needs may be psychological and physiological in nature.

Needs Hierarchy Theory of Motivation

- Abraham Maslow

Background

· Abraham Maslow was dubbed as the Father of Humanist Psychology

· He based his theory on the idea that individuals work to satisfy human needs, such as food and complex psychological needs such as self-esteem. He coined the term Hierarchy of Needs to account for the roots of human motivation.

· According to Maslow, a fulfilled need did little to motivate an employee. For example, a person who has sufficient food to eat cannot be enticed to do something for a reward of food. In contrast, a person with an unfulfilled need can be persuaded to work to satisfy that need. Thus, a hungry person might work hard for food. Maslow called this the Deficit Principle.

Deficit Principle

· It is a person’s unsatisfied needs that influence his behavior

· The unsatisfied need becomes a focal motivator.

· The satisfied need no longer influences an individual’s behavior.

· Managers should be alert for unmet needs and then create rewards to satisfy them.

Progression Principle

· Higher order needs are not active motivators until lower order needs are fulfilled.

· Unfulfilled lower order needs take precedence over higher level needs. For example, for a person who is hungry, his need for food will far outweigh his need for self respect.

* Physiological Needs – needs required to sustain life such as: air, water, food, and sleep. According to this theory, if these needs are not satisfied, then an individual will surely be motivated to satisfy them. Higher order needs will not be recognized not unless one satisfies the needs that are basic to existence.
* Safety and Security – Once physiological needs are met, one’s attention turns to safety and security in order to be free from the threat of physical and emotional harm. Such needs maybe fulfilled by: living in a safe area, medical insurance, job security, and financial reserves.
* Social Needs – Once lower level needs are met, higher level motivators awaken. The first of which are social needs. Social needs are those related to interaction with others and may include: friendship, belonging to a group, and giving and receiving love.
* Esteem Needs – After a person feels that he or she belongs, the urge to attain a degree of importance emerges. Esteem needs can be categorized as external motivators and internal motivators. Internally motivating esteem needs are those such as self-esteem, accomplishment, and self-respect. External esteem needs are those such as reputation, social status, and recognition.
* In later models, Maslow added another layer in between esteem and self-actualization needs: Need for Aesthetics and Knowledge
* Self-Actualization – is the summit of Maslow’s motivation theory. It is about the quest for reaching one’s full potential as a person. Self-actualized people tend to have motivators such as: truth, justice, wisdom, and meaning. They are said to have frequent occurrences of peak experiences, which are energized moments of profound happiness and harmony. According to Maslow, only a small percentage of the population reaches the level of self-actualization.

Applying Maslow’s Needs Hierarchy – Business Management Implications

If Maslow’s theory holds, there are some important implications for management. Managers have varied opportunities to motivate employees through management style, job designs, company events, and compensation packages. To pattern after Maslow’s theory, management can do the following:

· Physiological Motivation: Provide ample breaks for lunch and recuperation. Devise a salary scheme that would allow your workers to buy life’s essentials.

· Safety Needs: Employees cannot reach maximum effectiveness or efficiency when they feel the need to constantly check their backs and scan their surroundings for fear of potential threats.  Physical threats in the work environment can be alleviated by security guards, cameras, and responsive management personnel. Managers should also provide relative job security, retirement benefits, and the like.

· Social Needs: Generate a feeling of acceptance, belonging, and community by reinforcing team dynamics, planning team-based projects and social events.

· Esteem Motivators: Recognize achievements, assign important projects, and provide status to make employees feel valued and appreciated.

· Self-Actualization: Offer challenging and meaningful work assignments which enable innovation, creativity, and progress according to long-term goals. Provide opportunities that would allow your employees to reach their full career potential.

*Remember, everyone is not motivated by the same needs.  At various points in their lives and careers, various employees will be motivated by completely different needs. It is imperative that you recognize each employee’s needs that are currently being pursued.

Maslow’s Theory – Limitations and Criticism

Though Maslow’s hierarchy makes sense intuitively, little evidence supports its strict hierarchy. Actually, recent research challenges the order imposed by Maslow’s pyramid. As an example, in some cultures, social needs are regarded higher than any others. Further, Maslow’s hierarchy fails to explain the “starving artist” scenario, in which the need for aesthetic supersedes physical needs. Additionally, little evidence suggests that people satisfy exclusively one motivating need at a time.

While scientific support fails to reinforce Maslow’s hierarchy, his theory is very popular, being the introductory motivation theory for many students and managers, worldwide.

- – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – -

ERG Theory of Motivation

- Clayton Alderfer

In 1969, Clayton Alderfer’s revision of Abraham Maslow’s Hierarchy of Needs, called the ERG Theory appeared in The Psychological Review in an article titled “An Empirical Test of a New Theory of Human Need.” Alderfer’s contribution to organizational behavior was dubbed the ERG theory, and was created to align Maslow’s motivation theory more closely with empirical research.

Alderfer distinguishes three categories of human needs that influence worker’s behavior. These are existence, relatedness and growth.

· Existence Needs: physiological and safety needs such as hunger, thirst and sex.

· Relatedness Needs: social and external esteem involvement with family, friends, co-workers and employers.

· Growth Needs: internal esteem and self actualization the desire to be creative, productive and to complete meaningful tasks.

The ERG theory does not believe in levels of needs. A lower level need does not have to be gratified. This theory accounts for a variety of individual differences, which would cause a worker to satisfy their need at hand, whether or not a previous need has been satisfied. Hence, needs in the different ERG areas can be felt simultaneously.

ERG Theory recognizes that the importance of the three categories may vary for each individual. Managers must recognize that an employee has multiple needs that must be satisfied simultaneously. According to the ERG theory, if you focus exclusively on one need at a time, this will not effectively motivate.

The frustration-regression principle

In addition, the ERG theory acknowledges that if a higher level need remains unfulfilled, the person may regress towards lower level needs, which appear easier to satisfy. This is known as: the frustration-regression principle.

The two major motivational premises that the ERG theory gives are: the more lower-level needs are gratified, the more higher-level need satisfaction is desired; the less higher-level needs are gratified, the more lower-level need satisfaction is desired.

Applying Alderfer’s ERG Theory – Business Management Implications

According to Alderfer, the frustration-regression principle has an impact on workplace motivation. For example, if growth opportunities are not offered to the employees, they may regress towards relatedness needs, and socialize more with co-workers. If management can recognize these conditions early, steps can be taken to satisfy the frustrated needs until the employees are able to pursue growth again.

TWO-FACTOR THEORY

- Frederick Herzberg

· Frederick Herzberg’s theory of motivation is a content theory of motivation.  His theory attempts to explain the factors that motivate individuals by identifying and satisfying their individual needs, desires and the aims pursued to satisfy those desires.

· This motivation theory is referred to as a two factor theory because of the belief that motivators can be categorized as either hygiene factors or motivating factors.

· Hygiene factors are also often referred to as ‘dissatisfiers’. They are concerned with factors associated with the job itself but are not directly a part of it. Typically, this is salary, although other factors which will often act as dissatisfiers include:

1. perceived differences with others
2. job security
3. working conditions
4. the quality of management
5. organizational policy
6. administration
7. interpersonal relations.

· Motivators (sometimes called ‘satisfiers’) are those factors directly concerned with the satisfaction gained from a job, such as:

1. the sense of achievement and the intrinsic value obtained from the job itself
2. the level of recognition by both colleagues and management
3. the level of responsibility
4. opportunities for advancement and
5. the status provided.

Applying Herzberg’s Two Factor Theory – Business Management Implications

The most important part of this theory of motivation is that the main motivating factors are not in the environment but in the intrinsic value and satisfaction gained from the job itself. It follows therefore that to motivate an individual, a job itself must be challenging, have scope for enrichment and be of interest to the jobholder. From this concept, Herzberg shaped his ideas about Job Enrichment, Job Enlargement, and Job Rotation.

As early as 1950 in the USA job rotation and job enlargement were being both advocated and tested as means for overcoming boredom at work.

For example, IBM introduced changes to machine operators’ jobs to include machine setting and inspection. In addition they introduced other wide-ranging changes in both the production system and the role of foremen and supervisors.

It is less than clear just how successful changes of this type have been in practice. Often, workers expect higher payment to compensate for learning these other jobs and for agreeing to changes in working practices. The new jobs are often only a marginal improvement in terms of the degree of repetition, the skill demands and the level of responsibility; as a result workers have not always responded positively to such change. Job enlargement schemes may not be entirely feasible in some circumstances.

The concepts of both job rotation and enlargement do not have their basis in any psychological theory. However, the next generation of attempts to redesign jobs developed from the researches of Herzberg.

From his theory Herzberg, itemized a set of principles for the enrichment of jobs:

* removing some controls while retaining accountability;
* increasing personal accountability for work;
* assigning each worker a complete unit of work with a clear start and end point;
* granting additional authority and freedom to workers;
* making periodic reports directly available to workers rather than to supervisors only;
* the introduction of new and more difficult tasks into the job;
* encouraging the development of expertise by assigning individuals to specialized tasks.

Herzberg’s other major contribution to the development of ideas in the area of job design was his checklist for implementation. This is a prescription for those seeking success in the enrichment of jobs:

* select those jobs where technical changes are possible without major expense;
* job satisfaction is low;
* performance improvement is likely with increases in motivation;
* hygiene is expensive;
* examine the jobs selected with the conviction that changes can be introduced;
* ‘green light’ or ‘brainstorm’ a list of possible changes;
* screen the list (red lighting) for hygiene suggestions and retain only ideas classed as motivators;
* remove the generalities from the list retaining only specific motivators;
* avoid employee involvement in the design process;
* set up a controlled experiment to measure the effects of the changes;
* anticipate an early decline in performance as workers get used to their new jobs.

Job enrichment, then, aims to create greater opportunities for individual achievement and recognition by expanding the task to increase not only variety but also responsibility and accountability. This can also include greater worker autonomy, increased task identity and greater direct contact with workers performing servicing tasks.

Herzberg’s Theory – Limitations and Criticism

The focus of the approach is the individual job and only limited consideration is given to the wider context in which the job is carried out, particularly social groupings.

For those who would be taking the course, and also for those who would want to get a glimpse of the Fiscal situation in the Philippines, I’m sharing with you some powerpoint presentations that me and T. Joyce made…  Contents are mostly about public debt management, the concept of development, taxation, budget process, etc… I hope you find them useful

…fiscal-reportjoyce

…philippine-debt-management2