Republic of the Philippines

PALAWAN STATE UNIVERSITY

Tiniguiban Heights, Puerto Princesa City, Palawan

ARACELI CAMPUS
Bgy. Tinintinan, Araceli, Palawan

BUSINESS DEPARTMENT

MODULE IN
E2101: MANAGEMENT

MARICEL C. JERUNGGAY
JOHN REY STA. TERESA
Faculty
 Module 5
Leading

MODULE OVERVIEW

In this first chapters on leading it discusses how to manage for individual differences and
behaviors. We describe personality and individual behavior; values, attitudes, and behavior;
and specific work-related attitudes and behaviors managers need to be aware of. We also
consider the different sources of power that leaders has as well as the importance of
communication and how it affects the leading process and lastly the communication process
which is crucial in everyday operations of the organization.

LEARNING OBJECTIVES

At the end of this module the students are expected to learn the following:
 Discuss the five personality dimensions and five important traits in organizations
 Differentiate values, attitudes and behavior
 Provide an understanding on the work related attitudes & behaviors that managers
need to deal with
 Identify the sources of power
 Discuss communication process and communication channel

Managing Individual Differences & Behavior

Personality, Individual and Behavior
In this we discuss the third management function after planning and organizing—namely,
leading. Leading, as we said in Chapter 1 defined as motivating, directing, and otherwise
influencing people to work hard to achieve the organization's goals.

How would you describe yourself? Are you outgoing? aggressive? sociable? tense? passive?
lazy? quiet? Whatever the combination of traits, which result from the interaction of your
genes and your environment, they constitute your personality.
More formally, personality consists of the stable psychological traits and behavioral
attributes that give a person his or her identity. As a manager, you need to understand
personal attributes because they affect how people perceive and act within the organization.

The Big Five Personality Dimensions

In recent years, the many personality dimensions have been distilled into a list of factors
known as the Big Five.
The Big Five personality dimensions are (1) extroversion. (2) agreeableness (3)
conscientiousness, (4) emotional stability, and (5) openness to experience.

 Extroversion. How outgoing, talkative, sociable, and assertive a person is.

  Agreeableness. How trusting, good-natured, cooperative, and soft-hearted one is.
 Conscientiousness. How dependable, responsible, achievement-oriented, and
persistent one is.
 Emotional stability. How relaxed, secure, and unworried one is.
 Openness to experience. How intellectual, imaginative, curious, and broad-minded
one is.
Standardized personality tests are used to score people on each dimension to draw a person's
personality profile that is supposedly as unique as his or her fingerprints. For example, if you
scored low on the first trait, extroversion, you would presumably be prone to shy and
withdrawn behavior. If you scored low on emotional stability, you supposedly would be
nervous, tense, angry, and worried.

Five Traits Important in Organizations

Five of the most important personality traits that managers need to be aware to understand
workplace behavior are (1) locus of control, (2) self-esteem, (4) self-monitoring, and (5)
emotional intelligence.

1. Locus of Control: "I Am/Am Not the Captain of My Fate

Locus of control indicates how much people control their fate through their own efforts. If
you have an internal locus of control you believe you control your own destiny. If you have
an external locus of control you believe external forces control you.
Internals exhibit less anxiety, greater work motivation, and stronger expectations that effort
leads to performance. They also obtain higher salaries.
2. Self-Efficacy: “I Can/Can't Do This Task"
A related trait is self-efficacy, belief in one's personal ability to do a task. Unlike locus of
control, this characteristic isn't about how much fate controls events (as in believing whether
getting a high grade in a course is determined by you or by outside factors, such as the grade
curve or trick questions). Rather, it's about your personal belief that you have what it takes to
succeed.
Have you noticed that those who are confident about their ability tend to succeed, whereas
those preoccupied with failure tend not to? Indeed, high expectations of self-efficacy have
been linked with all kinds of positives:
Among the implications for managers:
 Assign jobs accordingly. Complex, challenging, and autonomous jobs tend to
enhance people's perceptions of their self-efficacy. Boring, tedious jobs generally do
the opposite.
 Develop self-efficacy. Self-efficacy is a quality that can be nurtured. Employees with
low self-efficacy need lots of constructive pointers and positive feedback. Small
successes need to be rewarded. Employees' expectations can be improved through
guided experiences, mentoring, and modeling.

3. Self-Esteem: “I like/Dislike Myself”

How worthwhile, capable and acceptable do you think you are? The answer to this question is
the indicator of your self-esteem, the extent to which people like or dislike themselves, their
overall self –evaluation.

Research offers some of interesting insights about how high or low self-esteem can affect
people and organizations.

 People with high self-esteem. Compared to people with low self-esteem, people with
high self-esteem are more apt to handle failure better. However, when faced with
pressure situations, high esteem people have been found to become boastful. Some
have been associated with aggressive and violent behavior.
 People with low self-esteem. Conversely, people with low self-esteem are confronted
with failure have been found to have focus on their weakness and have had primarily
negative thoughts.
Can self-esteem be improved? According to one study, “Low self –esteem can be raised more
by having the person think of the desirable characteristics possessed rather than undesirable
characteristics.
Listed below are the ways in which managers can build employees self-esteem:
1. Reinforce employees’ positive attributes and skills.
2. Provide positive feedback whenever possible.
3. Break larger projects into smaller tasks and projects.
4. Provide coaching whenever employees are seen to be struggling to complete tasks.

4. Self-Monitoring: "I'm Fairly Able/Unable to Adapt My Behavior to Others"

As you're rushing to an important meeting, you are stopped by a co-worker, who starts to
discuss a personal problem. You need to break away, so you glance at your watch.
(a) Does your co-worker Get It? Seeing you look at your watch, he says, "Sorry, I see you're
busy. Catch you later." Or (b) does he not get it? He keeps talking, until you say "I'm late for
a big meeting” and start walking away.
The two scenarios show the difference between a high self-monitor and a low self-monitor.
Self-monitoring is the extent to which people are able to observe their own behavior and
adapt it to external situations. Of course, we would all like to think we are high in self-
monitoring—able to regulate our "expressive self-presentation for the sake of desired public
appearances," as some experts write, and thus be highly responsive to social and interpersonal
cues” of others but whereas some high self-monitors are criticized for being chameleons,
always able to adapt their self-presentation to their surroundings, low self-monitors are often
criticized for being on their own planet and insensitive to others. Instead their behavior may
reflect their own inner states, including their attitudes and feeling.

5. Emotional Intelligence: “I’m Pretty Good/Not Good on Empathizing with Others &
Being Self-Motivated”
According to Daniel Goleman, the most important attribute in a leader is emotional
intelligence, which is the ability to cope, empathize with others, and be self-motivated. The
trait of emotional intelligence are: self-awareness, self-management, social awareness and
relationship management.
Values, Attitudes and Behavior
The Organizational Behavior: Trying to Explain & Predict Workplace
The informal aspects are the focus of the interdisciplinary field known as organizational
behavior (OB), which is dedicated to better understanding and management of people at
work. In particular, OB tries to help managers not only explain workplace behavior but also
to predict it, so that they can better lead and motivate their employees.
OB looks at the two areas:
Individual behavior. Individual attributes as values, attitudes, personality, perception, and
learning.
Group behavior. Including norms, roles and teams.

Values are abstract ideals that guide one's thinking and behavior across all situations.
Lifelong behavior patterns are dictated by values that are fairly well set by the time people
are in their early teens. After that, however, one's values can be reshaped by significant life-
altering events, such as having a child, undergoing a business failure or surviving the death of
a loved one, a war, or a serious health threat.
From the manager’s point of view, it’s helpful to know that values are those concepts,
principles, things, people or activities for which a person is willing to work hard-even makes
sacrifices for.

Attitudes: What are Your Consistent Beliefs and Feelings about Specific Things?
Values are abstract ideals-global beliefs and feelings-that are directed toward all objects,
people, or events. It tends to be consistent both over time and over related situations. In
contrast, attitudes are beliefs and feelings that are directed toward a specific objects, people
or events.
Attitude is defined as a learned predisposition toward a given object. It is important to
understand the three component of attitudes because it directly affects our behavior.
 The Three Component of Attitudes
 Affective-“I feel”. It consist of feelings or emotions one has about a situations.

E.g. “I like commuting by train because I have time for myself”, “I hate people who
talk on cell phones while on restaurant”

 Cognitive-“I believe”. It consists of the beliefs and knowledge one has about in a
situation.
E.g “The tallest building in the world in Chicago” (Actually, it is in Dubai)

 Behavioral. “I intend”. It is also known as intentional component that refers to how

one intends or expects to behave toward a situation.
E.g. I’m going to unfriend Jeana because he will vote for BBM on Presidential
election.
All three components are often manifested at any given time. For example, if you call a
corporation and get one of those telephone-three (“for customer service, press 1..”) that never
seems to connect you to human being, you might be so irritated that you would say:
“I hate being given the round-around” (affective-your feelings)
“That company doesn’t know how to take care of customers” (cognitive-your perceptions)
“I’ll never call them again( behavioral-your intentions)

Behavior: How Values & Attitudes Affect People’s Actions and Judgement
Values (global) and attitudes (specific) are generally in harmony, but not always. For
example, manager may put a positive value on helpful behavior (global) yet may have a
negative attitude toward helping an unethical co-worker (specific).Together, however, values
and attitudes influence people’s workplace behavior-in their actions and judgements.

Work Related Attitudes & Behaviors Managers Need to Deal With

“Keep employees happy”. It is true that attitudes are important, the reason being that attitude
affect behavior. But is keeping employees happy all that managers need to know to get
results? Here let us consider the work related attitudes and behaviors.

Work Related Attitudes: Job Satisfaction, Job Involvement, & Organizational

Commitment
Three types of attitudes managers are particularly interested in are (1) job satisfaction, (2)
job involvement, and (3) organizational commitment.
1. Job Satisfaction: How Much Do You Like or Dislike Your Job?
Satisfaction is the extent to which you feel positively or negatively about various aspects of
your work. Most people don't like everything about their jobs. Overall satisfaction depends
on how they feel about several components, such as work, pay, promotions, co-workers, and
supervision. Among the key correlates of job satisfaction are stronger motivation, job
involvement, organizational commitment, and life satisfaction and less absenteeism,
tardiness, turnover, and perceived stress.
Many middle managers are dissatisfied with their jobs, feeling overworked and
underappreciated, especially during economic downturns, when companies cut staff and
managers work longer hours for small pay increases and little recognition.

2.Job Involvement: How Much Do You Identify with Your Work?

Job involvement is the extent to which you identify or are personally involved with your job.
Many people of course, work simply to put bread on the table; they have no interest in
excelling at their jobs. More fortunate are those who actively participate in their jobs and
consider their work performance important to their self-worth.
3. Organizational Commitment
Organizational commitment reflects the extent to which an employee identifies with an
organization and is committed to its goals. For instance, some managers question whether
mothers with children can be fully committed to their jobs, although one survey found that
only 4% of more than 2,612 women said that their bosses think that they are not as committed
to their jobs because they have children. Managers are advised to increase job satisfaction to
elicit higher levels of commitment. In turn, higher commitment can facilitate higher
performance.

The Nature of Leadership

Leadership is defined as the ability to influence employees to voluntarily pursue
organizational goals. In an effective organization, leadership is present at all levels and
represents the sum of many things.

Managers and Leaders: Not always the Same

You may see the words “manager” and “leader” used interchangeable all the time. However,
as one leadership expert has said “leaders manage and managers lead, but the two activities
are not synonymous”.
John Kotter suggest that one is not better than the other, that in fact they complementary
systems of action. The difference is that..
 Management is about coping with complexity,
 Leadership is about coping with change.

Being a Manager: Coping with Complexity

 Management is necessary because complex organizations, especially the large ones
that so much dominate the economic landscape, tend to become chaotic unless there is
a good management.
Being a Leader: Coping with Change
As the business world has become more competitive and volatile, doing things the same way
last year (or doing it 5% better) is no longer a formula for success. More changes are required
for survival –hence the need for leadership.

Five Sources of Power

To really understand leadership, we need to understand the concept of power and authority.
Authority is the right to perform or command; it comes with the job. In contrast, power is
the extent to which a person is able to influence others so they respond to others.
Within organizations, there are typically five sources of power leaders may draw on:
legitimate, reward, coercive, expert and referent.

1. Legitimate Power: Influencing Behavior Because of One's Formal Position

Legitimate power, which all managers have, is power that results managers' formal positions
within the organization. All managers have legitimate power over their employees deriving
from their position, whether it's a supervisor, sales manager, or CEO.
2. Reward Power: Influencing Behavior by Promising or Giving Rewards
Reward power, which all managers have, is power that results from managers' authority to
reward their subordinates. Rewards can range from praise to pay raises, from recognition to
promotions.
3. Coercive Power: Influencing Behavior by Threatening or Giving Punishment
Coercive power, which all managers have, results from managers’ authority to punish their
subordinates. Punishment can range from verbal or written reprimands to demotions to
terminations.
4. Expert Power: Influencing Behavior Because of One's Expertise
Expert power is power resulting from one's specialized information or expertise. Expertise, or
special knowledge, can be mundane, such as knowing the work schedules and assignments of
the people who report to you. Or it can be sophisticated, such as having computer or medical
knowledge. Secretaries may have expert power because, for example, they have been in a job
a long time and know all the necessary contacts. CEOs may have expert power because they
have strategic knowledge not shared by many others.
5. Referent Power: Influencing Behavior Because of One's Personal Attraction
Referent power is power deriving from one's personal attraction. This kind of power
characterizes strong, visionary leaders who are able to persuade their followers by dint of
their personality, attitudes, or by background. It may be associated by managers, but is more
likely to be characteristics of leaders.
 Communication
Communication is the transfer of information and understanding from one person to another.
The fact that managers do a lot of communicating doesn’t mean they’re necessarily good at it.
–that is, that they are efficient of effective. You are an efficient communicator when you can
transmit your message accurately in the least time. You are an effective communicator when
your intended message is accurately understood by another person. Thus, you may well be
efficient in sending a group of people a reprimand by email. But it may not be effective if it
makes them angry so that they can’t absorb its meaning.
From this, you can see why it’s important to have an understanding of the communication
process.
How the Communication Process Works
Communication has been said to be a process consisting of message through media to a
receiver who responds.
Sender, Message, & Receiver The sender is the person wanting to share the information
called a message-and the receiver is the person for whom the message is intended.
Sender → Message → Receiver
Encoding & Decoding Of course, the process isn't as simple as just message/receiver
Encoding is translating a message into understandable symbols or language.
Decoding is interpreting and trying to make sense of the message. Thus, the communication
process is now..

Sender [Encoding] → Message → [Decoding] Receiver

The Medium The means by which you as a communicator send a message is important,
whether it is by typing an e-mail traveling over the internet, by voice over a telephone line, or
by hand-scrawled note. This is the medium, the pathway by which a message travels:

Sender [Encoding] → Message [Medium] Message → [Decoding] Receiver

Feedback “Flight 123, do you copy?” In the movies, that's what you hear the flight controller
say when radioing the pilot of a troubled aircraft to see if he or she received (“copied”) the
previous message. And the pilot may radio back, “Roger, Houston, I copy.”
This is an example of feedback—the receiver expresses his or her reaction to the sender's
message.

Sender [Encoding] → Message [Medium] Message → [Decoding] Receiver

Feedback
Noise. Unfortunately, the entire commination process can be disrupted at several points by
what is called noise.-any disturbance that interferes with the transmission of a message.
EVALUATION
I. Let’s assume that you are a leader of an organization what do you think is the best source
of power that suits you? Explain. (20 pts)

II.Quiz. Multiple Choice: Read and analyze the following questions carefully and select the
letter of your choice that corresponds to your answer.
1. It is the process of translating a message into understandable symbols or language.
a. decoding
b. encoding*
c. medium
d. communication

2. Is it said to be the pathway by which a message travels.

a. noise
b. feedback
c. encoding
d. medium*

3. It refers to the managers' authority to reward their subordinates.

a. legitimate power
b. referent power
c. reward power*
d. expert power

4. It resulted from managers’ authority to punish their subordinates.

a. reward power
b. coercive power*
c. expert power
d. referent power

5. Once the receiver expresses his or her reaction to the sender's message is an example
of______.
a. communication
b. feedback*
c. behavior
d. attitude

6. It is the extent to which a person is able to influence others so they respond to others.
a. power*
b. authority
c. leading
d. communication
7. It is defined as the ability to influence employees to voluntarily pursue organizational
goals.
a. leadership*
b. leading
c. management
d. power

8. It consists of the beliefs and knowledge one has about in a situation.

a. affective
b. attitude
c. behavior
d. cognitive*

9. He or she is someone that is intellectual, imaginative, curious, and broad-minded.

a. extroversion
b. conscientiousness
c. openness to experience*
d. emotional stability

10. They are people who apt to handle failure better.

a. locus of control
b. people with high self esteem*
c. people with low self esteem
d. leaders

11. It indicates how much people control their fate through their own efforts.
a. locus of control*
b. self-esteem
c. self-efficacy
d. self-monitoring

12. It means the extent to which you feel positively or negatively about various aspects of
your work.
a. satisfaction*
b. job involvement
c. job commitment
d. motivation

13. It is also known as intentional component that refers to how one intends or expects to
behave toward a situation.

a. cognitive
b. affective
c. behavioral*
d. attitude
14. It means understanding and management of people at work.
a. organizational behavior*
b. attitude
c motivation
d. leadership

15. It is the extent to which people are able to observe their own behavior and adapt it to
external situations.
a. self-monitoring*
b. self-esteem
c. locus of control
d. self-efficacy

REFERENCES:
Books
Williams, Brian et.al, Management: A Practical Introduction (4th Edition), McGraw-Hill
Companies, Inc.
Robbins, S.P. Couller (2012). Introduction to Management (11th edition)