Philippine Management Concepts PINOY MANAGEMENT

Guimaras Polytechnic State College School of Graduate Studies Course No: PA 204 Descriptive Title: Organization and Management Professor: Dr. Melba B. Sullivan

Reporters: Marjoelina D. Didulo, Danes C. Ganancial, Ding Relano, Yvone Saplada and Zenaida Magan

UNIT IV: Philippine Management Concepts PINOY MANAGEMENT Chapter 5 Corporate Goals in Starting Up SMALL COMPANY PROBLEMS According to Robert Buchele, the small company has many problems, mainly: 1. Mga problema sa pagsisimula (Starting up problems). These are: a. Kulang ng (Lack of) management know-how. b. Walang (No) bookkeeping or accounting. This refers to about 90% of small businessmen and practitioners like doctors and lawyers. c. Kulang ng kapital (Lack of capital). Because the owner started the business with too much enthusiasm, too much wishful thinking. 2. Mga problema sa pera (Money problems). These are: a. Kulang ng dunong sa (Lack of skill in) cash flow management. This means the owner has a hard time calculating the cash that must be paid out during the same period. He either does not do any cash planning or he just spends as the money comes, and scrapes around for funds when he has to spend. b.

Gusto (Wants) profit overnight.

Pabilisan (Quick work) instead of

working for stability or a healthy cash position. 1

3. Mga problema sa delegation (Delegation problem). These are: a. Solo flight operation: only one man trying to do everything b. Walang (No) paper documents.

No paper work.

Hindi mahilig sa

pagsulat ng (Uninclined to write) important decisions. This is fatal in the long run. 4. Problema sa leadership (Leadership problem). These are: a. No change or improvements in working habits when new skills are needed.

For example, the owner may be an engineer but needs

marketing salesmanship or financial skills however, he does not bother to require the needed skills. 5. Financial crisis a. No money and no creditors, or when interest rates are too high. 6. Succession crisis a. When the boss retires, dies, or becomes incapacitated, and there is no succession or control. The Mrs. or son takes over and, if they are not prepared, the problems become more complex. LADDER OF SUCCESSION Pinoy management demonstrates the following ladder of succession: 1. First, the owner is also a manager, usually along with the wife. 2. Second, the sons or daughters become the mangers. 3. Third, the sons become the owners.

In this case, either two things

happen: sumasabog ang negosyo (the business is ruined) or it becomes more progressive and the son associates with others. 4.

Fourth, the professional mangers take over.

EARLY TRAINING OF MANGERS Professor Melito Salazar Jr. has noted that children who are encouraged to be productive develop the positive values of self-reliance, independence, and hard work at an early age. In rural societies, artisan parents transfer their art or 2

craft to the children. The village blacksmith, for example, is expected to train his young sons in his shop, who then take over when the time comes. A similar transfer of skills takes place in urban communities. In the cities, a trade or a business is looked upon as something to be handed down to younger generations, much like prized legacy. Thus, we find families of printers like the Benipayos and families of food entrepreneurs like Reyeses and the Ongpuacos. In most of the cases, the children are exposed to their parents‘ business early and transition to adult entrepreneurship is relatively painless.

ISIP MALIWANAG! (REMOVE YOUR MENTAL BLOCK!) Indeed, early training in independence, decision-making, and productive hardwork is always associated with the development of entrepreneurial tendencies. The Family, especially the parents, plays a most crucial role in the development of the future entrepreneurial tendencies. The family, especially the parents, play most crucial role in the development of the future entrepreneur. Studies on the origins of entrepreneurship reveal that, generally speaking, entrepreneurs are: 1. Born of parents who permissive, middle-class, rather than authoritarian or poor. These parents teach their children to feed and dress themselves, 3

walk the streets, take on adventures, choose their friend as well as to question freely, rather than to submit blindly to authority.

They train

them early to be busy with their hands at some task or craft. 2. Raised by parents who are the business or in related occupations. This is the way the Chinese families train their young.

As he grows up, the

Chinese child learns to sell, count money, give change, market, or undertake delivery of goods. Training in business is treated both as play and education for the child. 3. From small families. If they do come from large families, they are usually the eldest or sometimes the middle child.

Very seldom are they the

youngest child who tends to be spoiled and dependent. 4. From migrant families. entrepreneurs‘‘

in

Thus, Boholanos have emerged to b the

Mindanao

and

the

Pampangueños

in

Manila.

Internationally, the Chinese are entrepreneurs in most of Asia and the Jews in Europe. 5. From families which have experienced crisis situations. Children who have learned to contend with parental separation or the death of one or both parents learn early to fend for themselves, to seek means of livelihood, and make their own decisions. An important point is the parents‘ own attitude towards work.

If they

view it as a creative process and a source of satisfaction, the message to the children is also positive. If parents allow their children to work with their hands, it enhances the childrens‘ regard for the dignity of labor. Clearly, child development can e a boon instead of a bane provided the physical and mental health of the child is safeguarded. Parents should therefore be well advised to encourage and train the youth to work hard and be productive early. From such beginnings do potential entrepreneurs and leaders come who will provide employment in the future not only for themselves but for their fellows and carry development forward. 4

SOUND DECISIONS COME FROM CLEAR, AGREED, AND BEST-FIT GOALS COMPANY GOALS Against this background, it is therfore important to pinpoint the goals for company at an early period. There may be a variety of such goals, not just one. But try to set up a priority; not all goals can be accomplished at the same tie. There is enough money, time, energy, people, or luck. Some common goals are focused on the following: 1. Profit maximization.

Malaking gananasiya (Big profit).

Quick profit

overnight kung puede (if possible). That is why many Filipino firms make good for 1 or 2 years, and then fritter away. There is lack of long-term stability. The business owner is too impatient for quick returns. 2. High productivity.

This is getting the most of the resources:

people,

money, machines, raw materials, time, energy, supplies, etc. Pigain ng

husto (Squeeze them dry). This requires strictness, discipline, sticking to a schedule and deadlines. Thus get less people to produce more. 3. Organizational efficiency. This is making the entire organization work as a team and with high morale. Not just producing more products with less

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people. The esprit de corps of people count most here. Not just high productivity of labor or resources. 4. Organizational growth. company).

Palakihin ang kompanya.

(To expand the

Some people want bigger companies, bigger markets, and

bigger clients. (Too flashy).

They expand sometimes too fast.

Masyadong bongga

Their enthusiasm rushes ahead of their capabilities and

resources. 5. Organizational stability. This is a good but hard objective because there are may variables: markets can become scarce, leadership lousy, and your own people demoralized.

But the ship must be kept steady amidst al

these troubled waters. 6. Employee welfare. This is always a good objective but a hard one to keep up. Employees are entitled to their dues under labor laws. That is the first goal to be met. Then as the business progresses, benefits should also go to employees. Their welfare must increase as company welfare also grows. In this way, employee goals become one with company goals and vice-versa. It makes for strong partnership. 7. Leadership. This is tough one but also a very ambitious one. The owner may want to be number one in his field, community, or market. He wants to set the pace, not to be a follower.

He may do it alone or in

combination with others. 8.

Social welfare. This is a high civic-spirited objective where the company is made the instrument for social, religious, cultural, or philanthropic goals. Para sa pakinabang ng bayan (For the good of the nation).

A STATEMENT OF OBJECTIVES FOR A SMALL BUSINESS Even as mall business will be more successful if it takes the time and effort to formulate a statement of its goals. Clarity about one‘s goals will supply the basis for scientific management, reduce business risks, permit budgeting of money and other resources and provide an organization opportunity for success. 6

A statement of objectives need not be formal or too detailed. An example of an informal statement of the goals of a small business follows (Vary this is you see fit): 1. We are manufacturers of hand tools used by farmers and construction workers. We are in competition with others in the market which supply a great variety of hand tools through a number of wholesalers and also directly to retail sellers. 2. Because our resources are limited (capital, manpower, and manufacturing facilities), we deal exclusively with the production and distribution of various hand shovels used by farmers and construction workers.

We

found a substantial demand for these products by studying the customer market. Furthermore these tools are subject to heavy wear and frequent replacement. 3. We aim to specialize in supplying shovels that, with wholesale and retail mark-up, can be sold to the consumer at x peso prices. We intend to produce the best shovel that can be bought at the price. We will sell only to and through wholesalers. 4. We shall strive to improve our product constantly. To this end we are requesting our suppliers to give us the benefit of their advice on better types of steel and better handles and blades. We shall arrange with our ultimate consumers for experimental test and shall budget a reserve to finance these continuing improvements. 5. All our products will be labeled with a distinctive brand. We shall publicize our product in magazines, newspapers, catalogues and comics read by our consumers. We shall feature it at farm fairs and distribute picture posters for use in farm communities, barbershops, sari-sari stores and other places where farmers and construction people congregate. 6. We shall limit the funds assigned to selling expenses to a concentrated effort soliciting business from wholesale houses.

We shall help our

wholesale customers to sell our product by giving them god quantity 7

discounts.

We shall supply them with information on how best to

represent the advantage of our product to the ultimate customers. 7. To build dealer and consumer confidence, we shall offer an unconditional guarantee for our product for one year from purchase by the consumer. We shall make promised deliveries on time, answer inquiries without delay and generally demonstrate to our customers an attitude of service. 8. We shall engage only in that part of manufacturing requiring press work, grinding and polishing and assembly. We shall not fabricate or turn the wood handles.

We shall try to maintain a ―value added‖ ratio of 50

percent or greater. 9. We shall perform our manufacturing in leased quarters until larger volume permits us to purchase our own building. 10. We shall try to maintain a return of profit on investment of 20 percent. It falls below this figure, we will take necessary steps to improve productivity. If it falls below this figure, we will take necessary steps to improve productivity. If it rises beyond this figure, we will examine our reserves to assure that we are protecting our position with adequate research expense and reserves replacement of obsolescent equipment. 11. We shall make it a point to grant each divisional manager sufficient freedom of choice in his activities so that he may discharge his responsibilities without being hampered.

However, each divisional

manger will not be permitted to spend a sum in any single month that exceeds his budget by more than five percent. Any deviation from the budget shall be brought to the attention of the board of directors at their next regular meeting. 12. Financial status reports shall be made as of close of business at the end of each month. 13. We will follow a policy of selecting and training men from our own company to fill divisional management positions.

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14. We will follow a policy of paying our employees the wages and related monetary benefits that prevail in the business community relevant to our situation. 15. We will respect each employee as an individual and will attempt to provide working conditions that are safe, pleasant, and healthy. 16. We will try to be a good neighbor in our community. We will try as much as possible not to create undue noise smoke, or to contaminate the public streams.

HUWAG SOBRA ANG PANAGINIP! (KEEP DREAMS TO REALISTIC GOALS!)

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Chapter 6 Identification of Prospects and Project Feasibility Study ENTREPRENEURSHIP

How and Where to Spot Business Opportunities Assuming you have settled in your mind and your heart that you will strike out on your own, that is, become an entrepreneur and not an employee or a manger of another man‘s company, how do you start? You start with business scanning. The usual advise is to ―plan, do, see.‖ The more practical probably is ―see, plan, do, see,‖ meaning, investigate the business environment first, then plan, implement, evaluate, and recycle the process again. Where do you pick up ideas for business ventures? We‘re just talking about preliminary possibilities and not yet of indepth studies or planning. Let me talk about six approaches. This is simply a listing based on various sources and experiences. Apply what is needed to your situation. Sources of business opportunities – the first approach is to use the tools of comparison t ospot business opportunities from the following sources: 1. Examine the classified ads, business stories, and advertisements of Sunday newspapers.

Note the needs and demands for various

services and commodities. 2. Scan the yellow pages of telephone directories to get an overview of business clusters and the dominant lines. 3. Adapt ideas from American and Japanese mail order catalogues. Note the materials, designs and prices. 4. Look up sections on new products and technologies in foreign periodicals and journals.

Note the manufacturers and prices.

Picture the buyers in your mind.

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5. Visit trade exhibits and secure information on foreign buyers and suppliers. Ask questions on terms and conditions. 6. Talk to inventors during their own conventions. Note production costs and calculate needed commercial costs. 7. Gather promotional materials, from foreign attaches and business counselors of embassies and from public relations departments of large corporations. 8. Keep tab with legislations of the legislative body and analyze the annual budget document of the government to spot investment directions of the different departments and agencies. 9. Attend very selectively those seminars or conferences on business opportunities and investments and keep tab on demographic trends, social issues, consumer lifestyles and consumers surveys. 10. When you can, travel and take pictures.

Talk to balik-bayan,

foreign guests and friends about trends, etc.

LOOKING FOR A VIABLE BUSINESS IS A TOUCH JOB Information scan and review – The second approach is to scan for information and search for specific commodity trends from following: 1. Importation data (quantity and value) since annual imports of $12 million and above, for example, indicate good domestic demand of the product. Spot those items that are consistently on the uptrend. 11

2. Export data so as to spot trends and sources of buyers abroad. Also, track down exporters with whom you could do business. 3. Industry lists such as the standard industrial United Nations as checklist. 4. Official reports, studies and analysis of: a. Development plans of provinces, regions and the national economy. Note the investments trends and areas. b. The state of industries and of business trends made by foreign missions or investment teams from foreign governments or financial institutions. Note their priorities and preferred areas of investments. c. Annual reports of corporations and analyses sheets from stock exchanges, banks and investment houses. In this way you keep tab on business developments. d. Industrial profiles or area profiles.

These help in preliminary

analyses of potential investments. Assistance from the government and private agencies – The third approach is to get scientific assistance from the government agencies or private groups and collaborate with your partners in: 1. Examining inter-industry relations like the construction industry, which affects more than 50 other types of economic activities, the automotive, or the electronics industries. They spawn many small industries. 2. Studying available skills in a given locale or industry.

For example,

craftsmen can be used not only for shoemaking but also for leather goods; carpenters for furniture-making plus toys, etc. 3. Reviewing old projects that were shelved or aborted because of market, financial, or political reasons. The timing may be ripe to revive an old project due to better world market prices for copra or copper, etc.

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4. Investigating local materials to see how far they can be used for new and expanded businesses. The uses of the coconut, for example, are still not fully explored. Unorthodox sources – the fourth approach is what I call unorthodox or daring possibilities: 1. A crisis or emergency such as the oil problem has triggered many energysaving devices, solar systems etc. 2. Political commitments to certain projects have created many new contractors in infrastructure schemes, etc. 3. Wild market conditions of popular terms like the war surplus goods in 1946 or the gold speculation. Creative, hunches and luck – The fifth approach is to think creatively. You could try: 1. Putting together think tank sessions in which your group can engage more experienced and successful entrepreneurs on exploring various options and analyzing implications of business ideas. 2. Drawing up scenarios by which alternative futures can be imagined on the optimistic, pessimistic and realistic views. It‘s thinking in a series of ―what if‘s?‖ 3. Doing a brainstorm session among yourselves, jotting down ideas, no matter how wild, regarding the problem of need.

My kutob ako. (I have a hunch). The instinctive feeling to make the jump, to be daring, to either go ahead or stop dead in your tracks. The hunch is a reality; many times because we don‘t understand the origins or implications of hunches, we forget it and pay no attention to them. That may be a golden opportunity lost. Then there is that sense of timing. You may have all the resources lined up and the plan spelled out to their most minute details. But the timing for 13

launching or marketing the product is another matter not usually confined to scientific research, computerized options, or market intelligence. Sometimes, it is pure hunch, pure feelings based on the collective experience and insights of the entrepreneur – his agonies, his dreams, his anxieties, his success.

Suwerte lang, pare. (Just luck).

Many people look at luck in many

different ways. Some say the harder you work the more luck you have. Others claim luck comes with destiny, birth signs, or the intensity of leas or sacrifices to gods and divinities; it is also associated with ideas or modes of conduct and behavior. Whatever it is luck is real to many; sometimes, you have it, sometimes you don‘t.

Assessing Approaches Whatever the approach, information is critical to business.

The

traditional economic factors of land, labor, capital, machinery, and supplies are not enough.

Information as another factor has become necessary.

In the

future, it will not be the problem of allocation of resources alone but allocation of information. Where do you get data to spot business opportunities and weigh the risks?

They come from reading, observations, travel, experience, exchanges,

and deliberate hunting for facts; the last one is important. You go out of your way for data. It will not come to you. Have passion for it. It pays off in the long run. Many

government

agencies,

universities,

training

and

research/

development institutions have information although the data may not be organized in the form you want it or need. These are the Asian Development Bank; the US embassy; British Council; the Japanese Embassy; the Thomas Jefferson Library; the National Library the Department of Agriculture, and of Trade and Industry; Bureaus of Agricultural Extension, Animal Industry, and Fisheries and Aquatic Resources; the national Manpower and Youth Council; the Board of Investments; the National Science and technology Authority; various 14

state universities like the University of the Philippines Los Baños; the Philippine Inventor‘s Commission; the Bureau of Domestic Trade; the Design Center of the Philippines; Philippine Patents Office; the Security and Exchange Commission; the technology Resource Center; and the Economic Development Foundation, among others. Lets us say you‘ve spotted two or three possibilities from these exercises and exchanges. The next question is: How do you narrow down the choice in ways that are practicable and acceptable to your sources of funds and logistics? There are, of source, no single formula strategies for a 100 percent success. But many experiences and cases can now be complied into a list of general principles and approaches.

BAKA SAKALING SUWERTIHIN (HE MIGHT JUST MAKE IT) POTENTIAL PRODUCTS The Department of Agriculture and natural Resources has identified 10 agricultural products, which will hasten the country‘s economic recovery. The 10 commodities are yellow corn, coffee, cacao, mango, citrus, papaya, cassava, sweet potato, cotton and shrimps and prawns. The economic contribution of these products will come from increased foreign exchange through aggressive exportation and dollar savings through import substitution programs. 15

Along with the above nontraditional commodities are the traditional export crops, which have been contributing some $1.5 billion annually to the country‘s coffers: coconut products, sugars, banana, pineapple, tobacco and abaca. The products that can immediately generate foreign exchange for the country are yellow corn, coffee, cacao, mango, citrus and papaya although the country has yet to be self-sufficient in yellow corn; but the prospects of this are bright and exportation will be achieved in due time. The import substitution crops and products, on the other hand, are yellow corn, cassava, sweet potato (primarily as feed ingredients), cotton, and dairy products. The Feasibility Study Doing a project feasibility study is a complete project by itself. The more complex the investment, the more complex the study. Of course, many projects do not require complicated studies. What follows next is the project cycle for a complex feasibility study. It is meant to serve as a guide and not a rigid formula.

WHICH FACTORS DETERMINE BUSINESS SUCCESS?

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Project Pre-Development Stage. This is the preliminary stage prior to a formal start of the study. The be tackled should include: 1. Identification of the project, venture or business idea — a. From market/investment opportunity studies b. From corporate planning exercises c. From national/regional development planning documents d. From hunches, ideas, imitations, or informal ideas 2. Project definition — a. Type of project and status: new or old; expanded/continued b. Type of organization: new or existing c. Sector of project: manufacturing, agricultural, real estate, utilities, transportation, communications, etc. d. Type of Origination: 

Marketing: import-substitute, export, or local item.



Technological organization: from village to crafts/cottage industry, harnessing of local resources, use of new technology

e. Scope of the Study 

Pre-operating stage of the project



Operating stage of the project



Post-operating stage of the project

f. Objectives of study in terms of: 

Who is the evaluat0r/loan source creditors and investors?



Amount/terms of financing?



Private profitability and social benefits?

g. Characteristics of report 

Comprehensive type of project or multi-projects



Simple type requiring non-sophisticated data/information

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Project Development and Appraisal After the above problems have been resolved, the study now formally begins. The areas to be covered are: 1. Format for the study — a. Concept paper: Is this needed? If the project is simple, drop it. But if it is complex, save a lot of time, energy, and expenses by first preparing a concept paper for management GO or NO GO decision. b. Pre-feasibility study: Is this also necessary? This is a study base on secondary data or published information and statistics. There is no fieldwork or expenses. Wait for a management GO or NO GO decision. c. Project feasibility study: This is the full-blown study. 2. Requirements of creditor/investor — Make sure of format and documentation requirements. a. Local government requirements b. Creditor/investor group 3. Proposal to do the study:

project feasibility study (PFS) design and

scheduling— a. Organization of PFS team: who, from, when, and why? b. Decision on scope, sources and methods of data collection c. Analysis methods to be used d. Conclusions and recommendations format e. Timetable: work plan for schedule of implementation f. Budget for the study g. Source of budget h. Decision on coverage of PFS: is it to cover all the aspects such as economic/marketing aspects, engineering, organization, financial, social benefits, etc. or just parts of the project cycle such as marketing or finance?

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4. Scheduling of the project implementation either GANTT or PERT/CPM charts. 5. Appraisal by management/funding sources of preliminary project statement — a. Objectives and scope of appraisal of study proposal b. Budget/timetable analysis c. Critical variable analysis d. Appraisal criteria e. Amendments to design/scope if any f. Instructions and/or negotiations with project team for amendments, revision g. Preparation of revisions/amendments to the study design 6. Go/no decision to go ahead with the detailed project feasibility study and provide budget and staff.

Project Implementation and Completion This is the stage of hard work. The team, now having the GO decision of management, proceeds with the implementation of the study. 1. Activation and organization — a. Selecting and appointing the head of the PFS Team b. Organizing the team; 2 to 4 members may include 

Industrial/agricultural economist



Market analyst or researcher



Engineer/technologist



Accountant or budget analyst



Lawyer/taxation specialist



Management or systems analyst



Editor

d. Assignment/timetables: work plan for team according to specific activities, responsibilities, outputs, and schedules.

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2. Execution of work plan — a. Data collection such as personal interviews, mail, telephone, analysis of documents, statistics analysis, etc. b. Analysis such as through detailed studies on: marketing, engineering, organization, management and personnel, taxation, legal, financial project cost, sources analysis, social benefit, Appendices (all documents required) c. Meetings, consultation, workshops, etc. d. Analysis, report writing, editing, support data, and statistics e. Conclusions and recommendations: alternatives examined, decisions made, and basis of decisions, etc. 3. Problem-solving and decision-making techniques to solve — a. Time delays b. Budget overruns c. Quantity and quality of data and statistics d. Analytical expertise to be used e. Monitoring, communications, and coordination problems f. Government policies, red tape, etc. to be encountered some parts of the study 4. Project completion — a. Report completion, and/or revisions b. Production, format design, copies, style of editing and writing c. Submission of project report o management d. Phaseout of team that did the study e. Completion of documents, files, records, etc., and turnover to filing cabinet

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Project Evaluation and Recycling. The last stage of the completed PFS involves the following: a. Evaluating PFS conclusions and1 recommendations in terms of — 

Criteria of investor/creditor



Criteria of management/investor



Techniques and methods oft evaluating the completed project feasibility study.

b. Recycling 

Final decision to implement the PFS



Abort the project, or



Delay the project, or



Amend/revise the project



Finally go ahead and apply for the loan for project implementation.

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Chapter 7 Marketing SALES PRACTICES Marketing and sales practices of Filipinos cover a wide range of retailing and wholeselling practices. Among the more popular ones arc the following:

Subastaban This is an activity in which goods and products are offered for bid. This encourages hardnosed bargaining and gives buyers the feeling that they can drive good, hard bargains. Department Stores hold this once a year, e.g., when moving last year‘s inventories. Good promotions gimmick.

Buena Mano It is a term used to describe first sales or first buyer for the clay. It is a subtle psychological ploy used by the tinder (Saleslady) to push the first sales of the day or to give the buyer the impression that he/she is the first buyer of the day and therefore should bring good luck to the seller. The buyer thus feels elated that he/she brings luck and helps out the seller. As buena mano, the seller usually gives the impression that the good is being sold at giveaway price just to effect the so-called first sales. Street vendors, sweepstakes tickets, balut (boiled duck‘s egg) vendors, newspaper stalls, public market stalls, etc., all use this trick to draw in the unwary buyer at the first business hours of the morning.

Tingi This is the process of piece-meal selling. Most American goods come in large cans or packages too expensive for the ordinary buyer. The Japanese have teenie-weenie canned sizes and packs which are Ignore‘ practical. The Filipino version is o make tingi; a slice of margarine wrapped in plastic paper, 1 or 2 tuyo (a kind of dried fish) instead of‘ the bundle of five 1 cup of ulam (viand) instead 22

of the regular serving, or 1/4 of the regular sale of rice, sugar or salt, etc. Bits and pieces are offered rather than the whole standard size. It is a, survival from day-to-day type of buying and selling, with no thought of saving for a rainy day.

Por kilo It is similar to tingi but used to refer to . the weighing scale such as in buying pork or chicken so that by timbang (measurement), the sale is confined to a per kilo basis. This means the meat or good is chopped up or divided into one kilo or small parts rather than the whole hump or the entire lot.

Todo or lahatan This refers to‘ lot purchase or buying out an entire lot as in wholesale. In many small provincial town markets during market day, wholesalers will buy out trucks of vegetables or fruit produce, banyeras of fish, or remnants of sari-sari garments and textiles, etc. Only oldsters can handle this.

Bulungan This refers to secret bidding of fish catch in Navotas, a suburb of Manila. This is done by Whispering (bulong) where the buyer whispers in the ear of the seller and only the seller knows what bids are made for the fish catch straight from the sea.

Pakyawan It is an activity in which the buyer purchases the whole lot or the entire produce, such as when a buyer makes a bid for loo mango ‗trees with the fruits in bud yet, or when a buyer makes a bid for the fish in a 2-hectare fishpond without catching the fish yet. The buyer trusts his own instincts and experience for, calculating how much the mango trees will finally yield in fruits or how much fish will finally emerge from the fishpond.

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No weighing scales are used, no

samples are made, no scientific calculations are attempted. Just pure instinct and experience and luck. Good old Pinoy technique.

Gugol This refers to the puhunan or capital of the seller. When the bargaining gets too tough, the seller ray appeal to the sense of justice of the buyer and claim that her gugol or puhunan or cost of product is so high that there is no more room left for just a little profit or gana. In a fit of sympathy, the buyer then gives in.

Tsitseria This refers to cheap items of mixed pieces, like a samot-samot (or grabbag) of small plastic toys, food items, etc. BARGAINING Buyers often test their sellers by insisting on the following:

Dagdag (Giveaway) It is an activity in which the buyer asks for an extra beyond what was originally agreed upon like a few more prices of peanuts, one more orange, one more spoonful of viand, or a handful of rice grain or corn. Buyers are used to this appeal and therefore do not give full value at the first weighing or packing. A little is left to accommodate the inevitable plea for dagdag; it is a game of getting more than what was bargained for. Both seller and buyer believe they have put cine over the other. No real profits are made in pesos. It is all in the mind and in feeling. Isahan lang (Putting one over the other!)

Tawad It is a process in which the buyer asks for a decrease in price or an additional unit. It is a verbal battle of give-and-take so that a savings price or an 24

extra fish or item is thrown for the buyer. Some department, stores do this; together with the small change, they throw in a piece of candy or a calendar. In larger deals, the seller will give an extra, item, a 1-for-2, or a 5% discount, etc.

HUWAG MAG-ISIP DEMONYO (NEVER BEDEVIL CUSTOMERS)

Ganansya This refers to the gross profit of the seller. When the bargaining is too tough, the seller will say, ―Wala na akong ganansiya (I don‘t have any profit anymore)‖ Out of pity, the buyer backs out of the pricing war and settles for an agreed price.

Bentang Palugi It refers to a loss in sales resorted t when there are no buyers or when the fish will rot that a give-away price is offered just to get rid of the stock.

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SELLERS And how do we refer to sellers? Some of them are: Humahango or hawkers or street vendors who lug or carry goods manually.

Maglalako also

refers to street vendors. Tindera is one who owns and runs a tindahan (store). Note that the feminine gender is used to refer to the one who minds the store.

Suki refers to a pet customer, a favorite buyer, or a favorite store. It means customer loyalty, a sign of long and special relations. MARKET PLACE The location or place of selling is known by different names:

Tianggi, is a public market place or a central place for buying when buyers and sellers converge such as during market day. An example is the Baclaran church area, on Wednesdays; it is a bedlam of hawking and bargaining on the day when the special religious novena to the Virgin Mary is celebrated weekly.

Talipapa refers to a small wet market for fish and vegetables in a small village or neighborhood.

Puesto is a fixed place for one‘s store or one‘s territory for one‘s goods. It can be a market stall, a piece of the street corner, or the part of the front of the hotel door or a school gate, etc. Marketing people and salesmen are usually confronted by two malpractices:

5-6 is a practice in usury wherein one borrows P5 for the day but must return P6 the next day or two.

1-2-3 is a term used to describe a swindle. As an example, two buyers approach you to buy your jewelry; one acts as agent, the other as the real buyer or the one with cash. You turn over the jewelry to the buyer in front of the agent so that the jewelry can be examined. The buyer excuses herself to go to the toilet or to make a telephone call. You both wait for 10 to 15 minutes. So the agent says he will go to fetch her. And both never come back. The jewelry is also gone. Patay! (Sorry!) 26

COPE WITH CUSTOMERS — OR THEY WILL THROW YOU OUT OF BUSINESS! MARKET RESEARCH As a rule, Filipino businessmen do not want to invest in market research. They think common sense will suffice, or experience. Ma. Victoria Gochoco reports on the burn-down Harrison Plaza in Manila. The owners reconstructed the whole commercial center again, but decided to conduct a market research first. What are some of these findings? Anyone setting up a commercial center these days would do well to offer a complete, one-stop shopping facility with alt of value-oriented promotions thrown in. This was learned by the Asia Communications Center, Inc. (ACC) in a survey of 113 middle-income people — employees, students, housewives, tourists, professionals, businessmen and executives. The survey was made in 10 days within a five-kilometer radius of the new Harrison Plaza. This included Ermita, Sections of Pasay, and the area of Makati nearest to Manila. The purpose of the survey was to show the possible trends in commercial center shopping to serve as a reference or indicator of what people might look for in a shopping

27

center. ACC cautions that its survey, because of the limited time in which it was conducted, should not be used as the sole reference for decision-making.

Indicators Some of the concrete findings include the following: 1. Most popular items bought in commercial centers were clothes (85%), and shoes and bags (also 85%). Coming in second were supermarket goods such as food and household items (60%). 2. What do people do when they go to commercial centers or what services do they seek? Most said they eat in restaurants (87%) and patronize the moviehouse (71%). 3. On what occasions do they go to commercial centers and buy? Birthdays were the most popular (73%), followed by holidays such as Christmas and New Year (62%), then ordinary days (44%). 4. What makes an ideal commercial •center is the completeness of its goods and services. Respondents said they want a complete one-stop shop (62%) aside from the presence of amusement facilities (28%). 5. Many respondents valued clean surroundings (20%), ACC said this may have been a result of the host of diggings ongoing in Metro Manila at the time of the survey last March. Good security was also favored (18%) as some tourists asserted they found even ―minimum‖ security lacking in some commercial centers. Good service is also important (16%). 6. Complaints included dirty comfort rooms (20%), overcrowded areas, and lack of parking space. 7. Many respondents said they looked for value-oriented promotions that save money (26%). Particularly, consumers looked for cheap items (86%). and lots of big prizes in raffles and promos (35%). What they disliked in promos, however, were unmanageable crowds, slim chances of winning (consumers are getting more and more discriminating about promo gimmicks), and low quality items in

28

bangketa (sidewalk) sales. The value-oriented promos that consumers liked best were discount sales, buy-one-take-one offers, and bangketa sales.

Image In the same survey, ACC tried to find out what the respondent‘s image of the old Harrison Plaza was and what their expectations wore of the new one. The major ―negative impression‖ that remains is that the old HP was crowded by idle bystanders and that its bangketa sales produced just too much buyer traffic. The new management, as a solution, said it will be removing the benches in the new HP‘s main mall and will improve its facilities mainly in terms of cleanliness. DEVELOPMENT OF TRADEMARKS The need to develop and own an established trademark is a must for local manufacturers to be able to enter the competition in the international arena. The establishment of trademarks has to begin locally for it needs a local base support. It is this initial step that Tatak Pinoy wanted to accomplish in its Fair held last year. Tatak Pinoy considers the pushing of cheap labor in the export market wrong; hence the need to shelve this approach and in its stead focus must be placed on pushing Filipino trademarks. Other countries such as Japan, Korea, Singapore, France, and United States have promoted their trademarks heavily and have succeeded in the process. Japan has, among others, Toyota, Seiko, and Sony. Korea has been promoting its brands, foremost among these being the Pony, Korea‘s major car. Singapore has its Risis for the goldplated authentic orchid. Paris connotes Dior or Cartier; New York has Tiffany‘s and Bill Blass; Rome has Olivetti, Gucci, or Formica; London is known for Rolls Royce; Copenhagen has Lego and Danish Royal; Philippines has any manufacturer‘s trademark! Halu-halo talaga! (Pure mix!)

29

Tatak Pinoy theorizes that the defect of Filipino manufacturers is their quick-money orientation, their short-term thinking.

They would rather

manufacture for foreign trademark owners and get peanuts for the labor. Why they settle for that when they can get more by attaching their own brands or trademarks to the products they can manufacture puzzles many. Thus, Tatak Pinoy has daringly started the promotion of Philippine-made products with Philippine trademarks. This is to foster awareness and national pride in Philippine trademarks. For purpose of planning and facility, Tatak Pinoy maintains close coordination with the Philippine Patent Office (PPO), Chamber of Philippine Department Stores and Retailers (CPDSR), Buy Filipino — Buy Local Products committee, and the National Economic Recovery Group of the Federation of the Filipino-Chinese Chamber of Commerce and Industry (FFCCI). Tatak Pinoy, through the cooperation and assistance of PPO, CPÐSR, and FFCCI, offers to hold a series of seminars, which include such topics as retail management, marketing, and trademark. Tatak Pinoy grabs the opportunity to provide an ideal venue to help businessmen learn the legal intricacies of trademarks. PPO Director Sandiego observes that some 15 years ago, PPO had only 5% registered Filipino trademarks; the rest were foreign trademarks. The current ratio is 35% Filipino and 65% foreign trademarks. With Tatak Pinoy, one can optimistically predict that local trademarks will finally outnumber the foreign franchises. PUBLIC RELATIONS Public relations is coming to China, according to Asiaweek. Though most public relations departments belong to foreign or joint venture enterprises, the

Economic Daily recently reported on what is generally believed to be the first true public relations department established by a Chinese enterprise. It belongs to the Baiyun Pharmaceutical Factory in Canton. Xie Jianqun, who has held the title of ―director of public relations‖ for the Chinese Council for the Promotion of 30

International Trade for several years, told Asiaweek that, in fact, he‘s not involved in public relations in the real sense of the word. His department, which is mainly concerned with publications, is called ―propaganda‖ in Chinese. He says that they changed its English name to ―public relations‖ partly because it sounds better to foreigners, although that is of course smart PR. The Baiyun factory spends 1% of its total output value on PR: in 1984, that portion amounted to RMB 1.2m ($427,000). Managers call it ―credit investment.‖ The factory invites journalists and public figures to important meetings and events, tries to target its advertising to specific markets, and even sponsors a football team. According to the report, after two years of such ―credit investment,‘‘ Baiyun has cornered fully one-third of the Canton market for pharmaceuticals. A Hongkong businessman reportedly approached Baiyun about starting a joint venture because ―it had a good image.‖ While Baiyun may be the first Chinese industry to have a PR department, the Economic Daily — presumably reflecting the modernization-minded, reformist leadership —- believes it should, not be the last. In an editorial titled ―Seriously Study Socialist Public Relations,‖ the paper praised the Baiyun experience and predicted a great development in public relations will accompany the ―penetrating advance‖ of the urban economic reforms. Those measures, announced last October in a major party document, introduce significant elements of the free market and capitalist management into -the socialist planned economy. In an interview with the daily, Baiyun plant director Bei Shaohan noted that with the separation of government and business management, enterprise directors can no-longer afford to take the attitude, of ―the emperor‘s daughter doesn‘t have to worry about her dowry‖. Last year, 40 representatives from 25 national organizations attended a half-day seminar on public relations in Peking. Enrollees included‘ the national airline CCAC, the Bank of China, the China International Travel Service, importexport corporations, and industries ranging from textiles to aviation technology.

31

The seminar was organized by the American PR firm Hill & Knowlton to celebrate its opening of a Peking branch office, the first public relations firm, foreign or Chinese, to operate in China. So far, all of its clients are foreign firms trying to do business in China. But Ronald Cromie, the firm‘s China affairs director, says that some of the enterprises attending the seminar are doing billions of dollars worth of sales in foreign markets and some, such as CAAC, suffer from bad image problems abroad. ―I‘d be amazed,‖ says Cromie, ―if many Chinese firms didn‘t start public relations-like activity with1in the next few years. In the past,‖ he says, ―people did business in China through old friends. But things are changing fast. More conventional marketing techniques are needed.‖ In the several months he‘s been working in Peking, Cromie, 35, says he‘s discovered a ―tremendous hunger especially in the Chinese trade media for information.‖ Indeed, Mandarinspeaking Cromie says the Chinese media have so far

proven ―very

approachable.‖ THE FUTURE MARKET Marketing consultant Alfredo Antonio projects the following marketing scenarios: 1. Storage of stocks will farce affected companies to concentrate selling efforts in Metro Manila. 2. People in the countryside will become resilient and reduce demand for processed products. They will tend to revert to those that had been available to them from local sources and at affordable prices. 3. In population centers, one-stop shops fast foods, and take-home counters will grow in popularity. 4. Instant foods and other convenience foods will enjoy a boom. 5. There will be a definite trend towards ready-to-wear clothes.

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6. The growth of low-cost substitute products will be accelerated. This will be an automatic answer to the factors of inflation and lower incomes. For instance, disposables will become popular. 7. If this does not happen, for instance in garments, then there will be a sharp decline in garment sales. 8. Pharmaceutical products in general will suffer a decline in demand, particularly in the rural areas. This will be due to a trend to return to traditional medicines such as herbals, longtime curatives, and medications from forebears. 9. There will he a slow but gradual shift from inorganic or chemical fertilizers to organic. 10. The traditional distribution systems will change to an innovative one that will be better tuned to the times. 11. Regional (satellite) feeds-making systems will be developed. 12. There will be a shift of the population back to the countryside. 13. Rural electrification will suffer temporary setbacks. 14. Education will shift to technical and science areas. 15. There will be sharp innovations in packaging. LINKAGES There is a simple formula we must remember about linkages. Ugnayan (Inter-linkages). Your company or project cannot be treated in isolation. The company is part of an industry or a sector and part of the community or region in which it operates. The project is part of a program or an organization‘s plan. It is part of a system. Isip kabuuan (holistic thinking). The formula is: L stands for linkage, 1 for company or organization, and 2 for markets or community. Thus:

33

1. The linkage exists within the parts that make up a company or organization. If you were to treat a company as a system, then it is made up of subsystems such as its values system, technical system, organizational structure, etc. The sub systems must divide the work among themselves, and also coordinate among themselves. Bayanihan sa Loob (Internal cooperation). 2. The linkage is between the company and the market or community. In this formula, it is the company that is making an impact on the community by responding to its needs. Alam ng management kung anong kailangan ng tao (Management knows what are people‘s, specific needs) and responds to these needs. 3. The linkage is among the parts or subsystem that make up the market or community. If it is the market, it is composed of subsystems like suppliers, creditors, distribution outlets, etc. If it is the community, the sub-systems include economic institutions, social activities, political parties, residents and customers, etc. 4. The linkage is between the community or market and the company. In this formula, it is the market or community that is influencing or making an impact on the company. The community may reject the company‘s products or services, or accept and patronize them. JEANS BOOM FADES AS MARKET SHRINKS After 20 years, the blue jeans boom finally shows signs of fading in America and elsewhere. Ragged blue denims have been discarded by former hippies who have joined the establishment. The end of the post-war baby-boom has reduced demand for blue jeans too. Today, the 1960‘s uniform of social protest is being worn less and less in the United States. The two biggest makers, Levi-Strauss and Blue Bell, have seen their combined sales fall from 589 million pairs in 1981 to 500 million in 1983. 34

After closing 17 factories and laying off several thousand workers, they have resorted to massive promotion campaigns. Levi-Strauss is spending $36 million for its largest sales campaign ever for a single product — its ―501‖ jeans, company spokesman Dean Christon said. The 501 was created 134 years ago during the California gold rush. They are the most widely sold trousers in the world.

Promo Blue Bell is riposting to defend its pre-washed and already-shrunk ―Wrangler‖ jeans. Sixteen thousand stores selling Wranglers are giving a free pair this summer to every customer who buys three pairs. Summer customers will also be given a $2 reduction if they buy another pair in the autumn when sales of jeans normally slacken. Yet executives of those two firms and t heir competitor Lee which broke sales records by launching ―urban cowboy jeans‖ in 1981, are worried: the number of young US adults (18 to 24), the most likely to buy jeans, is expected lo decline 23% by 1995. Wrangler‘s marketing director Ray Corder complained that youths today buy ―only one or two pairs of jeans instead of three, four or even five.‖

A

number of manufacturers are trying to reverse this trend by having stylists design ―fashion jeans‖ with fancy zippers, a ―baggy look‖ a ―Marilyn Monroe look‖ (form-hugging with short pantlegs split to show the calves), or a ―reversed silhouette‖ (tight waist and cuffs but loose in between). The manufacturers are also making blue denim shirts and blouses in an effort to compensate for sagging trouser sales.

35

HUWAG BONGGA LAGI! (DON‘T MAKE A SPLASH ALWAYS — MARKETING IS ALSO SUBTLETY) Wrangler claims that long-lasting denim‘s quality will assure perpetual popularity. The name denim comes from the French ―de Nimes,‖ meaning ―from Nimes‖ — the French city where that tough cloth was first made. Denim dungarees were worn by Genoese sailors as early as the 16th century. One industry official predicts that fashion jeans will fade away in favor of the traditional work jeans, ―still the most economical value for your money.‖ With buttons instead of zippers and the characteristics hip pockets, 501 jeans are guaranteed to shrink. Californians still buy them, a size too big, and take baths in them to get a form-fitting shrink. But a difficulty for the Levi-Straus3 arm is that east coast Americans prefer to buy pre-shrunk jeans that have already been ―stonewashed‖ to fade the color, even if they cost $30 instead of $23. Christon said Levi-Strauss hopes to boost sales of the 501 on the east coast by dressing 700 athletes in them at the Olympics And who said the jeans market was forever? 36

DAPAT TUGMA IYONG GUSTONG GAWIN AT IYONG KAYANG GAWIN! (THERE SHOULD BE PROPER MATCHING OF GOALS AND CAPACITY!)

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Chapter 8 Supervision Tools TOOLS FOR THE MANAGER According to Auren Uris, there are three areas in which management tools can be helpful to managers: 1.

Kagamitan

pangopisina

(office

equipment).

These

are

the

administrative tools such as the telephone, files and records, and even the pocket-size voice tape recorder. 2. Kagamitang medyo teknikal (Technical tools). These are the operations tool for more sophisticated operations such as planning techniques like the GANTT charts and the simplified operations research techniques. 3. kagamitan pang-tao (Tools for people). These are systems for managing people such as the MBO, zero defects, etc. Let‘s examine them carefully:

Files Most of the, equipment and systems for record keeping are designed for general-office use. But the manager also needs facilities for record keeping. He may use a simple vertical file or one of the ingenious devices that fit inside a desk drawer. Filing is mostly a matter of habit. In the beginning, it may look tough and tedious. But. it is the stuff of business; records and files are necessary, they are not for decoration. Keep it simple like a business diary but keep one. In commercial bookstores, filing forms and bookkeeping records are available for small business purposes.

Charts and graphs All types and sizes of these are available for organization control, production control, and quality control; for a quick picture of absenteeism, 38

safety, budgets, waste and costs; for keeping track, of orders received, processed and shipped; overtime; stock needed; etc. Make your own versions. Simplify. Use the dialect if it helps. Use forms your own people can understand and fill up.

Phone adaptations Available are conference phones that sit on the desk and require no handling; phones linked up for three-way or group talks; phone side switches to tell the switchboard whether the executive is in, away, or available by auto-call; timers to limit long-distance calls. Considering our phone system, these may not be too useful now but they will be soon. In Manila, Makati, Cebu and Baguio, these will prove very useful.

Blackboards, easel charts, flannel boards These can be used behind the desk a well as in conference rooms for problem-solving illustration, etc. They can help a manager in his planning and in setting forth n plan or problem to his group.

Adding or calculating machines ―I run up a column f figures a dozen times a day‖ is a fairly typical statement from a top-level executive to explain his use of such equipment. They assist in anything from adding up the month‘s production to figuring out a salesman‘s commission.

Cameras Movie, VTR, and still types are: often used to get visua1 evidences of a damaged shipment, inventory on hand, poor safety practices, and many other facts. Instant self-developing cameras such as the Polaroid are of particular value. The camera is also a good instrument for recording a company growth, for current inventory of products, etc.; for documenting work methods or changes in 39

the office or factory floor design, job instruction, damage claims, progress reports, site planning, lot purchases, etc.

Calendar Different kinds of calendar for planning operations and recording appointments are available and being used in the business scene. They come in paper or metal; to be hung on the wall, placed on the desk, or worn on the wrist.

Projectors Acetate, slide, or, movie projectors are becoming more common in, executive offices. As‖ an adjunct to conferences or as a briefing or training device, their rich possibilities are still not completely explored. The ‗overhead projector makes it possible to project material and have the user modify (draw on or erase) the images. Sound-slide films add audio content.

Dictating machines recorders The use of a dictating machine for letters, reports, and so on is standard. But executives have found that putting a conference ―on tape,‖ for example, provides a verbatim record that at times is highly desirable. Sophisticated equipment makes it possible for today‘s manager to pick up a phone and dictate into a remote recorder, which will later be transcribed by employees in, a typing pool. A pocket-size or hand-carried voice tape-recorder is extremely useful for reminders, for recording ideas, for follow-up items, etc. The possibilities for each tool itemized above are by no means exhaustive nor fixed. New uses or adaptations appear continually. Ingenuity in seeking out new uses makes for continuing improvement in managerial effectiveness.

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REMOVING RESISTANCE There are many methods. Don‘t use the same one in every situation. Learn them all so that you have a choice when resistance shows up: 1. Try a success example. Sonny doesn‘t work on nightshifts?

Tell Sonny about Willy who thought he

wouldn‘t like working nights but who, after trying it for a month won‘t work any other shift. 2. Try making a guarantee. Cely is sure the new method won‘t work? Tell her that if she tries it for a week and doesn‘t find it better than the old way, you‘ll promise she can switch back again. 3. Try a demonstration. The operator thinks, the rate on\the new job is too tough? Say, ―Here, let ¡ne show you how easy‘ it is to operate the machine. It looks a lot harder than it actually is.‖ 4. Try asking questions. Maria says she can‘t merit a bonus? Ask her what she finds‘ hardest about the job, whether she feels it has been properly explained. 4. Try plain listening. Berto won‘t work overtime today or any other day? Let him rave. Hear all his arguments in a friendly manner. When he‘s had his complete say, then try persuasion and reasoning. GETTING MORE DONE Usually the busiest people are the ones who get things done. What do they do? How can you do the same? 1. Umpisahan mo (start it.) It is t he hardest step to take. Even if you‘re not sure of how to begin, do something: move, write, meet, talk, phone, plan, research, etc. Pero magumpisa ka (But start.) The longer you delay, the tougher the task. And soon you may lose all interest. 41

2. Pumili ka ng modelo (Keep watch of your time.) Julius Erving or Carlos Loyzaga. In football, Pelé. In business, Teodoro Toribio or your neighbor‘s sarisari store. In whatever work you do, always select or find a model, someone who can challenge or motivate you. 3. Pangalagaan mo ang oras mo (Keep watch of your time) Time, once lost, never comes back. Set deadlines for specific things to do or to finish. Get used to managing hours and days of your life.

THINKING FANTASY IS OFTEN DISASTROUS 4. Gawin mo muna; saka na i-perfect (Do it first, perfect it later) Many managers delay or are reluctant to start something unless it is perfect. But there is nothing perfect. Start it, get it going; along the way, start improving and perfecting the project. 5. Itabi ang hindi importante (Set aside what is unimportant.) Concentrate. Focus. Zero in on the important points: Itabi iyong mga hindi (set aside those that are not) directly related to the project or the function. It‘s like a race. Keep the eyes on the lane.

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6. Maghanap ka ng tiyempo (Look for right time.) Every manager or entrepreneur has a tempo, a work rhythm. Some work well at 8 a.m. to 5 p.m. Some don‘t; they are night creatures; they work after dinner on through midnight. Cultivate a tempo. That can exploit the talents of the whole team. 7. Tapusin ang trabaho (Finish the work) Make sure the project or work is completed. This means the desired results or outputs are clear right from the start. DEVELOPING SELF-MOTIVATION AND COMMITMENT Try a force-field analysis. This can be done in five steps:

Target Muna (First the target) Pick a goal you wish to reach or an action you plan to take as part of your development program. This action should help you reach your goal by changing or improving your present behavior. This step is sometimes called the goalaction-change step. Your goal may be to prepare effective reports for higher management to read. The action may require your taking a night course in bookkeeping at a nearby university. The change will be improvement n your records.

Mga Pampagana (Appetizers) Make a list of at least five important forces that are driving you to make that change. For example, you want to get a promotion (key force is promotion); you hope to earn more money (key force is future income); your spouse would feel good about your improved status (key force is status); your boss is pressuring you for regular formal reports (key force is pressure); and you want the satisfaction of seeing your ideas influence higher management decisions (key force is influence).

43

Mga Problema (Problems) Make a list of at least five important forces that are holding you back or restraining you from making this change. For example, you can‘t find the time (key force is time); you hate taking night courses (key force is educational method), the course is only given on your mahjong night (key force is interference with recreation); you are afraid that you won‘t do well (key force is, fear of failure); and you don‘t, like the idea that you will have ; to do homework (key force is homework).

Ano ang Pinakaimportante? (What is of Topmost Importance?) Now rank each force driving as well! as restraining, according to how strong it is. Use a ranking scale of 1 to 5, ranging from 1 as ―little effect‖ to 5 as ―very strong effect.‖ This singles out what is really ―important in motivating you and what is truly powerful in holding you back. It also helps to expose lowranking, forces for what they are: excuses.

Try to Match Opposing Forces A strong driving force like pressure ¡may be all that is needed to motivate you to overcome a strong restraining force like educational method. Hope for a larger future income may overcome your dislike of homework. The driving forces of promotion, status, and influence ‗may not be so powerful as you thought they were when compared on the chart, but neither are the restraining forces of time, fear of failure, and interference with recreation.

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FIGURE 1. Example of a Force Feld Analysis RIGHT APPROACH TO PROBLEM SOLVING The general rule is that the best results come ‗from a‖ systematic approach. Sistema ang kailangan (System is needed).

Step 1. Ano Talaga ang Problema (What is the Actual Problem?) State the problem clearly and specifically.

Stay away from a general

statement like, ―We have a problem with quality.‖ Instead, narrow it down and put figures on it if you can, like, ―Between the first of the month and today, the number of rejects found at final inspection have totaled 32, compared with our standard of 15.‖ 45

Step 2. Bakit Ganyan (Why?) Collect all information relevant to the problem. Don‘t go too far but do find data that may shed some light on process changes, materials used, equipment

function,

design

specifications,

employee

performance

and

assignments. Much of the data will not tell you anything except where the source of the problem is. If your information shows, for example, that there has been no change in the way materials have arrived or machinery has been used, good! You can look elsewhere.

Step 3. Tutok Talaga (Pinpoint) List as many possible causes of the problem as you can think of. Remember that a problem is a gap between expected and actual conditions. Something must have occurred to cause that gap. ‗Most particularly, something must have been changed. Is the operator different from the old one? Was a power source less regular than before? Has there been a change, however slight, in the specifications?

Step 4. Mga Tunay na Dahilan (Real Causes) Select the cause or causes that seem most likely. Do this by a process of elimination. To test a probable cause, try seeing what difference it would make if that factor were returned to its original state.

Suppose, for example, that a

possible cause, of rejects is that compressed air power is not only 75 psi instead of 90 psi. Try making the product with the pressure restored to 90 psi. If it makes no difference, then power irregularity is not a likely cause. You can also suppose that the new operator has misunderstood your instructions. Check this out with the operator. See if your instructions are being followed exactly. If not, what happens when your instructions are followed? If the rejects stop, then this is a likely cause. If the rejects persist, this is not a likely cause.

Step 5. Pag-usapang Mabuti (Discuss Exhaustively) Suggest as many solutions for removing causes as you can. This is a good time for brainstorming. There is rarely only one way to solve a problem. If the cause of an employee‘s excessive absenteeism, for instance, is difficulty in 46

getting up in the morning, this cause might be removed in a. number of ways. You might change the shift, insist that the employee buy an alarm clock, make a wake-up arrangement or scheme, or show how failure to get to work is jobthreatening. The point is to make your list of alternative solutions as long as possible. But practical.

Step 6. Ipagmuni-muni ng husto (Deliberate Very Well) Evaluate the pros and cons of each proposed solution. Some solutions will be better than others. But what does better mean? Cheaper? Faster? Surer? More participative? More in line with company policy? To judge which solution is best, you‘ll have to have a set of criteria like the ones just listed. Evaluation requires you to make judgments based on facts. Consult the information gathered in Step 2. Also consult anyone who can oiler specialized opinions about the criteria you have chosen.

Step 7. Anong pinakmagaling (What is the Best) Choose the solution ¡on you think ¡s best. As in Step 6, t his is the decision phase of problem-solving. In effect, you will have weighed all the chances of success against the risks of failure. The strengths of your solution should exceed its weaknesses.

Step 8. Iplano ang mga detalye (Plan the details) Spell out a plan of action to carry out your solution Decisions require action and follow-up. Pin down exactly what will be done‖ and how, who will do it, where, and when. How much money can be spent? What resources can be used? What is the deadline?

Step 9. Gawin mo (Do it) Implement.

Step 10. Okay ba (Is It Okay?) Evaluate.

47

SLOWING DOWN DECISION-MAKING The following are elements that hinder or slow down the tempo of decision-making:

Takot (Timidity) There is the personal fear of making a commitment that could result in. a mistake or change an otherwise comfortable status quo. Organizational fear is induced by the view that every mistake is judged as a bad performance rather than considered a basis for learning.

Hindi Kaya (Incompetence) This is the decision-maker‘s inability to solve a problem or to take advantage of an opportunity. Lack of experience might have similar results.

Malabo (Vague Decision-Making Responsibility) This is uncertainty about who is charged with a particular responsibility or who will make a particular decision and be able to make it prevail.

Bitin (Decision Drift) This is lack of a firm target date by which a decision must be made to maximize its effectiveness. Decision drift is the difference between the tithe necessary to make a decision and the time it actually takes for the decision to be done.

Malayo (Remoteness) This refers to the remoteness of the decision-maker from the problem or opportunities. It results in a lack of the sense of urgency that someone closer to it might feel, or prevents a full appreciation of nuances and ramifications.

48

Puro Usapan (All Talk) This is the loss of decision-making momentum. Too many people involved are either contributors or potential decision stoppers. There are also too many inconclusive, unproductive meetings.

Malabong Utos (Improper Delegation) There is no delegation at all or just nominal delegation; too much control is retained by the delegator over methods and procedures. This also refers to delegation to the wrong people, improper training of subordinates, or poor guidance and follow-up by the delegator.

Hindi Hawak (Not controlled) This is lack of authority to fully control elements of decision.

It also

includes lack of cooperation in terms of time or content by those whose inputs are sought.

Ma-pulitiko (Corporate Politics and Factionalism) There are competing goals and competition for influence, leading the conflict and lack of support for the decision-makers effort‘ to make decisions.

Mabagal (Slow) There is long lead time between decision and implementation, along with the loss of initial enthusiasm, of sense of urgency, and of incentive to make fast or innovative decisions about implementation.

Organizational Personality Management expectations can sometimes discourage entrepreneurial spirit and establish overly confining procedures. This situation is accompanied by poor definition or communication of goals and of what contributions are expected from individuals to achieve these goals. 49

In assessing one‘s decision-making process, keep your answers as brief as possible. In some cases, two or three words or a simple ―yes‖ or ―no‖ will suffice. Don‘t be afraid to elaborate if you think you have a point or observation that needs more explanation. TIME AND PACE

Organizational Tempo Organizational tempo is the speed with which an organization moves, thinks, and gets things done; how fast it makes and implements decisions, reacts to new business climates, adapts to sudden shifts in the marketplace aid competitive pressures, creates new products and services, solves problems, and seizes new opportunities. In short, it is the pulse of the organization. There are five quick facts about tempo:

Masdan ang tiyempo (Keep track timing) — Every organization has a tempo; everything the organization does ¡s done within the time frame established by that tempo. It is the pervasive climate in which the organization operates. An organization‘s tempo — good, bad, or indifferent — determines what that organization can accomplish in a given period.

Pabilisan (Competing in speed) — Next to making the right decisions, the speed with which those decisions are made has more to do with the success or failure of an organization than any other single factor.

Hindi pinapansin (Inattentiveness) — Despite the above, we incredibly and generally do not think of an organization as having a tempo. In fact, we seldom think of tempo at all.

Consequently, we seldom set out to do anything to

improve it.

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SUPERVISORS SHOULD NEVER GET INTO THEIR SHELLS, ISOLATED FROM THE WORK FORCE

Bawal ang mabagal (Ban the slowpokes) — Slow tempo can occur at any and all levels. If it occurs significantly at top levels, the problem will tend to show up in bottom-line results and either the organization will go down the tube or middle management will get axed. At lower and middle levels of management, slow tempo usually Just as damaging because if we don‘t look for it, especially in these terms, it tends to be less obvious and therefore more insidious.

At these levels, it can eat away,

undetected, at the effectiveness of the whole organization. Size is no protection against slow tempo. It can afflict any organization, from the one-man plumbing shop to the automotive giant. Obviously, when you‘re dealing with a very small organization, personal work habits and attitudes tend to be a dominant influence. As the organization gets larger, organizational structure becomes a progressively greater influence to be reckoned with.

Puwedeng ma-improve (Improvement chances) — Finally, no organization moves anywhere nea1r its maximum potential tempo; therefore, every, organization can improve its tempo. Bad can become good, and good can 51

become better. The room for movement is as infinite as the need for improvement.

Time-Saving Since time is precious how do you save time? Here are some suggestions: 1. Develop an overview of your responsibilities — There are many things you have to do. Which of these are a ―must?‖ Which arc those, which are just keeping you busy? Which really contribute to your accountabilities? Separate them. Then focus on the key activities. Clarify your job. Ano bang talaga ang

responsibilidad mo (What is your real responsibility?) The Filipino has the habit of doing many things at the same time. 2. Schedule your routine — Make it a habit to write down the important things you will do in a day. Set the time. Also list down follow — up activities. Many times good project get bogged down after a good start because of bad follow-up. Follow-up and follow-up. Bunch up the telephone calls together. Our PLDT lines are very bad, so psychologically prepare your mind to spend many minutes just contacting your party. 3. Delegate — Delagating is the best way of saving time. But how? First is to pinpoint the task or the job. This must be very clear. Then select the person who has the capability. Make the assignment and be clear about what is expected of him. Make the output or the result clear. Supply the support and clarify his authority. Tell others about his assignment. Check his progress. Evaluate the results. Give him advice. What went right? What went wrong? Why? How should he do better next time around? And when do you delegate? When you are overburdened, when there are emergencies, and when you are absent? Teach people and delegation becomes easier. But don‘t just delegate and leave him alone; stay close; watch your subordinate. Tell him to repeat your orders. Check if what he says is what you told him.

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HANDLING PROBLEMS Resolving conflicts in the organization ¡s common problem facing managers. There are five ways of coping with such a situation: 1. Itabi muna ang problema (Set the problem aside.) If the problem is there, one way is to retreat or withdraw. Huwag pansinin (Don‘t pay attention.) 2. Hinay-hinay lang (Slow pace). Smoothen things over first. Try to patch up things in small bits and pieces, and slowly. Huwag biglaan (Don‘t do t all of a sudden). 3. Bigayan (Give and take). This is the art of compromising. I give you one part, you give me another. Utangan ng loob (Debt of gratitude). 4. Digmaan (War). Forcing the issue. Americans like this method. Open confrontation.

Patigasan. Giyera kung giyera (Stubborneness. War, if

necessary). The Filipino always uses this as a last resort. 5. Magpakatatag ka (Keep firm).

This is also confrontation, but of a

mature, intelligent type. Ideas are put to, the area of debate, of open discussions, instead of silent suspicious and backbiting. One takes a position, but one is cool and calm. KEEPING OUT OF TROUBLE WHEN DIRECTING, ORDERING, ASSIGNING, OR INSTRUCTING

Mahirap magmando, mag-ingat kayo (It‘s difficult to command. Be careful). There are no assurances that employees won‘t get hung up about a particular assignment, but here are 11 guidelines from various sources that should minimize trouble: 1. Don‘t make it a struggle for power. If you approach too many ordergiving situations in an ―I‘ll show-you-who‘s boss‖ frame of mind, you‘ll be fighting soon with the whole department. Try to focus your attention and then of the worker‘s on the goal that must be met. The idea to project is the situation that demands the order and not a whim of the supervisor. 53

2. Avoid an offhand manner. If you want employees to take instructions, seriously, then deliver them that way. It‘s all right to have fun, but be firm about those matters that are important. Kool lang (Keep cool). 3. Watch out for your words. As you have seen, words can be unreliable messengers of your thoughts. Watch the tone of your voice too. Few people like the feel that they are being taken for granted or pushed around. Most employees accept the fact that it is the supervisor‘s job to hand out orders and instructions. Their quarrel is more likely to be with the way these are made.

Mahirap

magsaiita ng marahas (It‘s difficult to talk aggressively). 4. Don‘t assume that the worker understands. Give the employee a chance to ask questions and to raise objections. Have the employee confirm an understanding by repeating what you‘ve said. Paulit mo (Let him repeat the instructions). 5. Be sure to get feedback right away. Give the employee who wishes to complain about the assignment a chance to do so at the time. It‘s better to iron out resistance and misunderstanding before the job begins than afterward. 6. Don‘t give too many orders. This is an area where a communications overload will be self-defeating. Be selective in issuing instructions. Keep them brief and to the point. Wait until an employee has finished one job before asking that another be started. Huwag sobrang utos (Not too many orders). 7. Provide just enough detail. Some jobs require more information than less complex ones do. Some workers need more detailed instruction than others. Think about the information needs of the person you‘re speaking to. For an old hand there‘s nothing more tiresome than having to listen to familiar details. 8. Watch out for conflicting instructions. Check to make sure that you‘re not telling your employees one thing while supervisors in adjoining departments are telling their people another. Puro tsismis! (Lots of gossips!) 9. Don‘t choose only the willing worker. Some people are naturally cooperative. Others make it difficult for you to ask them to do anything. Be sure

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that you don‘t overwork the willing person. Baka mabinat iyan. (Avoid relapse). Make sure the hard-to-handle people also get their share of the rough jobs. 10. Try not to pick on anyone. It is a temptation to punish a person by handling out an unpleasant assignment. Resist this temptation if you can. Employees have the right to expect the work to be distributed fairly. If you have a grudge against an employee, don‘t use a dirty job assignment to get even. 11. Above all, don‘t play the big shot. New supervisors are sometimes guilty of flaunting their authority. Older supervisors feel more confident. They know that you don‘t have to crack the whip to gain employees‘ cooperation and respect. PRINCIPLES OF SUPERVISION

How to Deal with Individual Employees The following simple rules from various sources are examples of instructions that all supervisory personnel should receive in order to improve the morale in an organization.:

Para sa bagong trabahador (For the new employee). — Greet him cordially. Display sincere interest in him. Explain the job to him and also the part he will play within the organization. Show him around. Introduce him to his coworkers. Choose the right way to instruct him. Tell him who his superior will be and how he will receive his instructions. Kaiiangan maliwanag (Everything has to be clear). Follow-up. After he has been on the job for a reasonable period, see him again and find out how he is doing.

Doon sa mga mas mababa sa iyo (The subordinates) — Approach the employee in terms of what he wants. Try to understand his interests in his work and convince him that cooperation in the common effort will help him.

Teamwork talaga (Real teamwork). Show sincere appreciation for work well. Do not withhold praise when it is earned, especially for accomplishing work, for suggesting improvement, and for cooperative attitudes towards the, unit or

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department. In case of a dissatisfaction with work performance do not become abusive or impatient. Be just and calm. Be tactful, and polite. Make sure your subordinates clearly understand your instructions. Do not take for granted that they know what you said and meant. Be articulate. Explain trade terms and practices fully. Remain with the employee or have the instructor stay with him until he completely understands what he is doing. Follow standard procedures to deal with employees; show no preferences or dislikes, so that everyone will feel they are being treated equally. Pantay-

pantay lahat (Equal treatment to all). Listen to what employees tell you‘ and to what they mean; don‘t become impatient in trying to find out what they are thinking. Give them a chance to tell you what they feel you ought to know. Gain their confidence. Let them know you are interested in how they are getting, along. Make sure that your subordinates feel comfortable and at ease in the business as much as possible. Do not put persons who dislike each other into the same group or assignment. Male superiors of female employees must avoid becoming familiar.

Mahirap na (It‘s complicated.) Moreover, superiors who are dealing with women must consider female sensitivity. Mga babae iyan (These are women).

How to Build Confidence Among Subordinates Greet each man of your unit every day; try to give the greeting a personal touch (you should know what your subordinates‘ interests are such as family, sports, and hobbies and be able to refer to them). Encourage employees to come to you with their problems. Be sincerely interested in their problems. Kaya lang, huwag masyadong open (but don‘t be too open.) If possible, do something about these problems. If you need to reprimand an employee, first be calm. Take the employee to a place where you can talk to him alone without giving others a chance to witness the reprimand. Before reprimanding an employee, reexamine the facts 56

and reasons for the reprimand and make sure it is deserved. In reprimanding an employee, make sure he knows why and talk straight; do not waste words.

Huwag iyang bolahan (Don‘t flatter.) After reprimanding, encourage the employee to do better and make him anxious to improve. In handling grievances, after giving the employee a chance to present his case and listening sympathetically, look up the record: find out the facts, inquire. Make or get a decision without unnecessary delay. Kung praktikal (If practical), inform the employee of the decision without hesitation: if it is adverse, try in make him understand it.

Papaano Mag-utos (How to Give Orders) Be sure you yourself understand the implications of the order and what is necessary in terms of facilities, materials, time, effort to obey it. Assign the work to an employee who is capable of doing it. Explain it to him in the language level that understands. If necessary, explain the purpose that is to be attained by his efforts and cooperation. Ask the employee if the order is clear to him; when you doubt if he understands you, repeat the order and then have him repeat it. Demonstrate required technical operations by visual means if this method will save words and be easier to understand. This is almost always the case when new technical assignments are involved. Never give conflicting orders; preferably give only one order time. If you have to give difficult, involved orders that require several different consecutive actions, put them down in writing or in the form of simple drawings easy to understand. Isa-isa lang (One by one only). Supervise by check-ups what the employee does, and correct whatever mistakes there may be.

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LEADERSHIP IS A BALANCING ACT Follow-Up. If you are not the immediate superior of an employee who as been assigned in. a job, give your orders only through the person who has immediate authority over the employee. This way, all instructions for an employee will come from the same superior. Dito mag-ingat kayo talaga. Kundi malaking gulo (Be very careful here; otherwise, this can be big trouble). DESIRABLE MANAGERIAL QUALITIES Some of the desired qualities of a manager are: 1. Matatag (Firm).

This is the ability to set one‘s mind on the

achievement of clearly visualized goals. Such managers are like gardeners who, seeing before them a field, visualize what they want to grow and how to go about it. They will pay the price in strenuous effort and patiently applied time to make things grow; they will not be deterred by bad weather or other accidents 58

of nature. They will not stop before they have succeeded.

They will inspire

others to work with them towards the common goal, not by force, but by communicating to others the purpose and value of their efforts for the organization. 2. Disidido talaga (Very decided). This is hic ability make the decision without hesitation needed to pursue the goal. Managers will instill confidence by their ability to take responsibility for decisions., They may not always make the best decision, but their capacity to avoid delays from indecision will move them ahead faster than others. They will be just but also energetic. 3. Nakikinig (With a listening ear). This refers to the capacity to listen and learn. Managers will question everything and willingly accept information from anyone and everyone connected with the organization. They will analyze the facts at their command and seek additional data so that their decisions and actions will benefit the organization at a reasonable cost in time d effort. 4. Ambisyoso (Ambitious). This refers to the desire to succeed. The best managers will consider their organization as continually competitive with other organizations. Striving for business growth by reducing costs and improving production or the product is the manager‘s way of life. Like an artist the manager derives the highest satisfaction from a program well performed. 5. Nakikipagkapwa-tao (An interest in people and a respect for them). It is necessary for a manager to know people, to like them, and to show genuine sympathy to all who belong to the organization.

Only genuine concern by

management for the members of an organization will inspire them to contribute their best towards a common goal. The manager should have an established personnel policy that those who work with him will understand. 6. Mahusay talaga (Exemplary personal conduct). Managers must obey the rules of social and moral behavior accepted in the community. Their work habits, politeness, punctuality, working hours, correctness in dealing with others, honesty, promptness in attending to unfinished business, and other vital traits set the example for the whole organization. 59

OTHER TIPS FOR LEADERS Advice for leaders is free and plentiful. And most of it makes sense for the person who can put it into practice.

Maliwanag ang Laro (The Game is Clear) Be predictable. People want to know where they stand without the boss, tomorrow as well as today. You might borrow a pages from the books oh child psychology. The experts have studied the maladjustments and the frustrations of kids. They suggest, one good rule for handling them: be consistent. If a child is praised for an act today and bawled out for the same act tomorrow. — bingo, tears. If the child tries to help with the dishes breaks one, and gets a scolding — watch out for tantrums. If embarrass the child in front of others, look out — the cat may painted green just to make it look ridiculous too. It‘s the same thing for adults.

Isipin lyong Kabila (Put Yourself in the Employee‘s Place) Maybe you recall the last time you were watching a basketball me. Did you find yourselves leaning with every shot on block, trying to put body English on the shots? Do the same thing with people. This mental shift can become a regular and desirable bit. It will help you understand, predict, and direct the responses people.

Ipakita Mong Happy Ka (Show your enthusiasm) If you sincerely like an idea, the way an employee did a, your next assignment, show this feeling to others in words and manner. It is a mistake for a supervisor to ―play it cool‖ in the relationships with Filipinos. The personal atmosphere you create determines whether people will have the welcome mat I for you or turn you away.

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Malapit sa Trabahador (Be Interested in Employee‘s Welfare) People want a superior or manager ―whom they can trust times of need, to whom they can go when they need advice out personal affairs,‖ said Brehon Somervell, late president of the Koppers Company, Inc. ―It is a good outfit, indeed,‖ when employees can rail ―ask the boss.‖

Makipag-kapwa Ka (Treat employees equally) Men and women insist on a leader having a sense of fair play. They want to believe they are being given assignments entirely upon their merits and that the boss won‘t play favorites. Not only is favoritism a sign of weak character, but it can also wreck an organization.

Ang hindi marunong makinig (The bad listener):  ―switches off,‖ dry to uninteresting subjects  resists ―heavy‖ material — seeks ―entertainment‖  is off by poor delivery  tends to judge, evaluate, agree, or disagree before the speaker has finished  reacts to emotional words  listens only for facts, not implications  fakes attention, puts no effort into listening  is easily distracted  employs ―spare‖ brain capacity by ―day-dreaming‖  takes copious notes, using only one system

Ang marunong makinig (The good listener):  tries to find interest in every subject  uses ―heavy‖ material for mental exercise  judges content, not delivery 61

 doesn‘t judge until his comprehension is complete  interprets emotional words rationally  listens for themes, not just for facts  works hard at maintaining real attention  concentrates; fights or avoids distractions  uses ―spare‖ brain capacity to summarize, weigh the evidence, anticipate  takes fewer notes; suiting the system to the speaker or the subject Each of these provides a ―key to effective listening‖: 1. Find areas of interest. 2. Exercise your mind. 3. Judge content not delivery. 4. Withhold evaluation. 5. Keep your mind open. 6. Listen for ideas. 7. Work at listening. 8. Resist distractions. 9. Capitalize on your brain-power. 10. Be flexible.

Pero, kailangang nasa ugat na ito. (But these should have been ingrained). For practical purposes such lists are not much help in your everyday management. You can‘t run through a checklist every time you have to listen. These things have to become habits if they‘re to be of any real use to you. But habits have to be built, and this list provides useful guidelines for selfdevelopment. INGREDIENTS FOR GOOD LEADERSHIP Men and women who prove to be successful leaders are characterized by such qualities as the following: 62

Bilib sa sarili (Self-confidence). Sense of mission. This is a belief in your own ability to lead, a love for the work of leadership itself, and a devotion to the people and the organization you serve.

Matiisin. (Self-denial). This essential of leadership is too often played down. It means a willingness to forego self-indulgences (like blowing your stack), and the ability to bear the headaches lie job entails.

Matatag (High character). Few persons become successful leaders who aren‘t honest with themselves and with others, who can‘t face hard facts and unpleasant situations with courage, who fear criticism of their own mistakes, who are insincere or undependable.

Matinik (Job competence). There‘s been too much talk about the significance of technical job skills to the supervisor. A person who knows the job that is being supervised has one of the best foundations for building, good leadership.

Sentido common. (Good judgment). Common sense, the ability to separate the important from the unimportant, tack, the wisdom to look into the future and plan for it are ingredients that make the best leaders.

Masipag (Hardworking.) Energy. Leadership at any level means rising early and working late. It leaves little time for relaxation or escape from problems, Good health, good nerves, and boundless energy make this tough job easier. FNANCIAL OPERATIONS No business can sustain itself or earn profits without serious attention to. its financial operations. A very common mistake of lost small businessmen is their inability or lack of proper attitude towards keeping accounting records and updating their books. Make no mistake about it. To be a businessman, you must have serious interest in bookkeeping and accounting records. Otherwise, forget going into business. You are not serious enough. Business is not a game nor easy. Business is tough work. One of the important tasks that make it tough is 63

the bookkeeping activities, Decide first, that you will do it religiously, or get a part-time bookkeeper (better get a full-time one) and only after you make firm decision should you then go into business. As a starting point, the two most important financial statements are the balance sheet and the income statement.

Anong itsura ng negosyo ngayon? (What‘s the state of the business today?) The balance sheet shows the financial position of the business at a particular time. It may be regarded as a financial photograph of the business. (See Figure 2.) The balance sheet has two main sections. The first section explains ‗ what‘ the business owns (assets). The second section explains what the business owes (liabilities) and the owner‘s investment in the business (equity). 1. Assets. Anything the business owns that has money value is an asset. Assets are classified as either current or fixed. a. Current assets include cash and those assets that will be converted into cash within one year. Examples of current assets include accounts receivable valid inventory. Since all account receivable will probably not be collected, an allowance for bad debts should be shown due to pilferage, breakage, markdowns, etc., should also be shown on the balance sheet. The accountant will fix this for you. b. Fixed assets are those things that the business has, acquired for use. They include such things as land, buildings and equipment. With the exception of land, fixed assets decline in value. A periodic charge for depreciation should be shown on the balance Sheet. Consult the accountant. 2. Liabilities. Anything the business owes is a liability. Liabilities are claims against the assets of the business. current or long-term. 64

Liabilities are classified as either

a. Current liabilities are those debts, which must be paid within one year. Examples of current liabilities are accounts payable and shortterm loans. b. Long-term liabilities include debts, which will not be paid within the year such as a long-term loan, which is to be paid over a tenyear period of time. Like a bank loan. 3. Equity. The assets of the business minus the liabilities of the business equals the owner‘s equity. The equity is the owner‘s investment in the business.

The Income Statement The income statement is a summary of all activities involving income and expenses incurred in the business during a particular nod of time. The income statement illustrates the profit or loss ring a particular financial period. See Figure 3. The income statement has five main sections: (1) total sales; cost of goods sold; (3) gross profit; (4) expenses and, (5) net profit. 1. Total revenue is determined by adding cash sales and credit sales. 2. Cost of goods sold is the price paid by the business for merchandise sold during the period. The cost of goods sold is computed by adding the value of the goods purchased during the period to the beginning inventory (the beginning inventory figure can be obtained from the previous income statement), and then subtracting the value of the inventory on hand at the end of the period. 3. Gross profit is the difference between total revenue and cost of goods sold. 4. Expenses are all those costs incurred in the day-to-day running of the business; for example, utilities, advertising, wages, etc. 5. Net profit is computed by subtracting expenses from the gross profit.

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Figure 2

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Figure 3 WHEN DO WE MAKE PROFITS?

(Paano Malalaman Kung Tumutubo?) Analyzing Financial Statements Ratio analysis is a means of analyzing the figures that appear on financial statements. The use of these ratios enables the owner to compare the current year‘s performance with the performance of previous years. A ratio is computed by taking selected figures from the financial statements and expressing one figure as a percentage of another figure.

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The following ratios (with figures taken from Figures 2 and 3) offer valuable information to the business owner: 1. Return on Investment (ROI). This ratio shows the, return obtained on the owner‘s investment in the business. ¡t is computed by dividing the net profit by owner‘s equity and expressing the result as a percentage.

Is this ROI of 13.1% better than putting the money in the money market or a time deposit? Are these safe? Is this the best place to invest your money? 2. Net Profit to Sales. This ratio shows the net profit margin on sales. It is computed by dividing net profit by sales.

A low net profit on sales may be caused ‗by two factors: (a) poor pricing policy or (b) high operating costs. In order to determine which of these factors is causing the low net profit, further ratio data are available to the business owner. A poor pricing, policy is reflected in the gross profit margin. Gross profit, margin computed by dividing gross profit by sales. The gross profit margin should be similar to, or greater than, the gross profit margin of other firms. 3. Sales to Equity (Net Worth). This figure is referred to as the investment turnover and is not expressed as a percentage. A firm‘s net profit on sales may be high, but if the rate of asset turnover is low, the rate (if return on investment may be low. The value of annual sales should be a certain number of items greater than the amount of investment in assets. This figure is computed by diving sales by equity (net worth).

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4. Inventory Turnover. The inventory turnover figure shows how fast the merchandise is being sold. It is computed from the income statement, and answers the question of whether the business has too much or too little money, tied up in the inventory. It is computed by dividing total revenue by the average inventory.

Usually, it is better to have a higher turnover rate. This would suggest that the merchandise in the inventory is current and saleable. However, this figure is highly dependent on the type of business. 5. Average Collection Period. The average collection period is computed from the balance sheet and the income statement. It answers the question of how quickly the credit sales‘ are being collected. It will tell the owner how many days‘ sales are tied up in accounts receivable. It is computed by first dividing sales by 365 (the number of days in the year) to determine the, average sales per day. The accounts, receivable is then divided by the average sales per day.

The average, collection period should not exceed 1-½ times the credit terms extended by the business (30, 60,90 days, etc.). 6. Current Ratio. The current ratio is computed from the balance sheet and answers the question of whether the business has enough current assets to meet its current debts. The current ratio is computed by dividing current assets by current liabilities. A current ratio of 2 to 1 is generally considered good.

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7. Another ratio called the acid test ratio answers the question of whether the business could meet its current obligations with funds readily avilable if all sales revenue should stop. It is computed by dividing cash plus accounts receivable by current liabilities.

An acid test ratio of 1 to 1 is considered

satisfactory.

Mahirap Mangutang (It‘s Difficult To Borrow) Despite efforts to promote small business through credit availability from both the government and the private sectors, their development is plagued with numerous other problems and artificial disadvantages. The industry‘s failures are largely accounted for by problems related to management and financial difficulties. These are the common observations. In financing, many potential investors do not know about the availability and adequacy of funds for the project during the conceptualization stage. Despite availability of credit from some financing institutions, th4 entrepreneur often has inadequate mortgageable assets and equity base to qualify him for dept-financing. The extent that could be funded by equity, debt or trade credits is not clear since he himself does not have a plan in the first place. The entrepreneur is faced with an acute inadequacy of information and overview of the business he intends to pursue.

This is because of non-

availability of information, lack of knowledge, as to the source of information vital to an investment decision or the limited capability of the entrepreneur himself, Preparation of a bad project study results in unrealistic project cost estimates.

The

prospective

entrepreneur

cannot

properly

estimate

the

investment requirement of the project proposed to be undertaken. In many cases, investment requirements are confined to fixed assets requirements with no provisions for working capital and contingencies. Generally, the project cost is based mostly on what the entrepreneur estimates would be spent to set up the factory building, purchase/install machinery and equipment, without proper consultation with building contractors, machinery and equipment suppliers, etc. 70

Similarly, the working capital requirement of the, project is equated with raw materials and labor requirements without due allowances for overhead cost and without considering the project‘s operational cycle. Also, the entrepreneur seldom allows for expenditures incurred during the pre-operating stage, which should be part of working capital. All these add up to unrealistic project cost estimates, which are usually understated, and consequently result in inadequate sourcing of funds. Another source of finance-related problem facing the entrepreneur is project funding. According to Rodolfo Manalo, the best possibilities are: 1. Equity could be tapped as an immediate source of funds. It is, however, oftentimes minimal owing to the limited resource of the entrepreneur. In order to raise equity, the investor is faced with the problem of liquidity of resources. Conversion of existing assets to cash is a tedious process which is cumber some and time-consuming. At times, the entrepreneur may not even have enough ―ash equity to invest in the project. Since the financial package for a given project would necessarily require that a minimum amount be, at least, contributed from equity, the entrepreneur resorts to borrowings from non-institutional sources which charge interest up to as high as 20 to 35 percent a month, according to Manalo.

2. Debt-Financing The entrepreneur does not know the details of the institutional sources of funds like private ‗development banks, some government agencies, the Small. Business Guarantee Loan Fund and the like. Entrepreneurs are afraid to avail of services of financial institutions due to their inexperience in negotiating loans from them. Banks invariably require full collateral coverage for loan ac1:ommodations. This renders the entrepreneurs incapable of availing of ac equate debt financing to fund the proposed project. With their limited mortgageable assets, prospective investors request either relatives or friends to act as accommodation mortgageable for the loan. Difficulties encountered with regards the compliance 71

with financing institutions documentary requirements are not also unusual. Project studies, financial statements, company records on sales and production are not readily, available considering the structural characteristics of small projects. Onerous terms and conditions of the loan, rigid requirements pertaining to collaterals and equity, high cost of borrowing, and lengthy processing time further serve as deterrent factors in loan availment by the SMI sector. So its not only a matter of lack of information, but also of lack of confidence, business skills, equity and real estate collaterals.

PLANO NG PLANO — PERO KULANG NG PERA (TOO MUCH PLANNING, STILL NO MONEY!)

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Chapter 9 Organization DIAGNOSING YOUR ORGANIZATION An American practitioner, Marvin Weisbord, listed six important factors in analyzing an organization. These are:

Anong negosyo natin? (Purpose: What Business are We in?) Two critical factors in this category are goal clarity and goal agreement. If either is lacking, an organization cannot function as well as it should. Where do the purposes of an organization come from? In part, the environment determines them (e.g., what will, the market support?). Managers and board members also determine them by trying to shape the organization‘s future in terms of‘ what they know how to do or like to do. Purposes can be seen as a sort of psychological negotiation between ―what we have to do‖ — dapat gawin for survival and ―what we want to do‖ —

gustong gawin (for growth, self-expression, idealism, etc.). The outcome of this negotiation is called ―priorities.‖ Effective Organizations translate priorities into programs, projects, and products aimed at particular consumers. A diagnosis should also examine ―fittingness‖ of the goal (kayang gawin). — Are this organization‘s purposes the ones that society values and will pay for? It should also consider goal clarity— How well articulated are these goals in the formal system, both for producers and consumers? Finally, the informal issue is goal agreement — To what extent do people understand and support the organization‘s purposes? Some organizations have, inherent low-goal clarity because their concerns are so broad that each member defines them in his own personal way. Certain policy institutes, foundations, and universities, for instance, have such a spectrum of possibilities that priorities are unclear; commitment, therefore, is spotty.

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Papano ang paghahati ng trabaho? (Structure: How do We Divide the Work?) In organization‘s, as in architecture, form follows function.

Every

structure is good for something no one is good for everything. There are three main ways to organize: 1. By function — specialists work together; 2. By product, program, or project — multi-skilled teams work together; and 3. A mixture of both — two homes for everyone.

Papano ang pag-ayos ng gulo? (Relationship: How do We Manage Conflict Among People?) Three types of work relationships arc the most important: 1. Between people — peers or boss-subordinate; 2. Between units doing different tasks; and 3. Between people and their technologies (i.e., systems or equipment). In the formal system, managers should diagnose relationships in terms of how much interdependence is required to get the work done. There are two possible dysfunctions: I. People need to work together and do not do it well; 2. People do not need to work together, but try to force collaboration (i.e., in the name of ―good human relations‖ or because they ―should‖). A second level of relationship diagnosis relates to the degree of built-in conflict. Some units (sales and production, for example) may fight with each other as normally as eating. Such conflict is legitimate, because each unit needs to see things differently do good work.

Lahat ba ng trabaho may ganansya? (Rewards Do All Needed —Tasks Have Incentives?)

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Having a reward, system (formal) in no way guarantee that people will feel and act as if they are rewarded (informal) trick is trans1ating a reward theory into organizational practice. Some managers still believe salary and fringe benefits motivate, although there is considerable evidence to support the idea that once a need is satisfied it no longer motivates. Thus, salary and benefits stimulate performance only when given as symbols of worthy work that is needed and valued by the organization (recognition), according to Weisbord. A second important issue is ―equity‖ or fairness among members of an organization. Informal feelings or beliefs determine whether or not people act as if rewarded, independent of what they receive.

Papaano ang ating ugnayan? (Administrative Mechanisms: Do We have Adequate Coordination Technologies?) Helpful mechanisms cut across functions. They constitute the policies, procedures, and

methods

needed to coordinate

between

departments,

individuals, or with outside agencies and customers. Mechanisms help when they: assist integration of work — help people do things which require joint effort; provide feedback and course correction — help people keep track of whether things are going right or wrong. Effective organizations revise their mechanisms, eliminating some or adding others as the need arises. If a gap between ―what is‖ and ‗‗what ought to be‖ is identified, it is often found that no mechanism exists for closing it, which often uses too much informed discussion over coffee and little movement towards a solution. The creation of new mechanisms is essential for the identification and closing of gaps. There are four other processes that require helpful mechanisms: planning, budgeting, control, and measurement (information). Without helpful mechanisms in each of these areas, organizations will act more like rudderless ships than purposeful men-of-war; Thus, the first diagnostic question for a manager is whether an organization does have, some formal helpful mechanisms. 75

Sinong magaayos ng mga tao? (Leadership: Does Someone Keep the Elements in Balance?) Much turmoil in organizations, especially among administrative employees, results, from a failure oft leadership to define, embody, and defend purposes and to manage internal conflict. Thus, a unique task of leadership, independent of task and relationship skills, might be to take responsibility, for scanning the six vital factors, looking for gaps both formal and informal, and doing something about them. This task can be shared, but it cannot be delegated. Especially in functional organizations, where specialists look out for their own tasks, they cannot be expected to be responsible for the whole. BUILDING ORGANIZATION STRUCTURE

How the Organization Grows A craftsman making copper vessels for sale in the village market has no problem of organization structure as long as he works alone. However, he must organize and plan his own activities o that he can use his modest resources best advantage. He must also use his time intelligently by developing some kind of routine such as when to o out and buy raw materials, when to be in his shop, when to make his vessels, when to sell them, and when to rest. A craftsman, working for himself, is just like ii new manager of a big business. He must properly plan the use of his modest monetary resources in such a way that there will be enough left to feed and clothe his family, to pay the rent to the landlord and taxes to the government, and to purchase tools and raw materials. This means that he must bring order into his personal activities, calculate his costs and expected returns, and be thrifty in the use of his time, raw materials, and credits. Then things became more complicated. The challenge of building m organization starts with the employment of the first helper, whether a family member or a hired worker. At this time some arrangement must be made to bring the efforts of the master and his helpers into an order of mutual assistance so that a productive return may result. This 76

calls for a reexamination of the needs of the growing business. The employing manager will review the skills, energy, reliability, and costs of his help. After this review he will fit each one into the task for which he is qualified and for which the employment of the helper is economically feasible. The allocation of responsibilities should follow a detailed listing of the operations that have to be carried on in the business. For example, the ownermanager of the business selling copper vessels in the market place employs his wife in selling and his two sons in manufacturing. The assignment of duties, for example, in an Indian small family business may be as follows: Owner-manager (the husband): Determines the design and quality of vessels to be made; secures funds for operating the business; buys the copper sheet needed for the projected quality, of the product; obtains tools and other implements needed in, the workshop and store such as fuel, furniture, light, shelves, and cleansers; sets approximate inventory goals for raw materials and finished products; deals with creditors, landlord, and tax collectors; secures advantageous purchase prices and discounts; sets the price for the product; supervises the making and Selling of the product; controls expenses and pays bills; keeps records; makes business contacts and advertises his shop and his products; handles complaints; participates in selling. Sales person (the owner‘s wife): Sells the finished products; answers inquiries; arranges finished products in, the store and displays them to potential buyers; opens, closes, and cleans the, store; helps supervise the workers (sons) while the manager (husband) is away; controls the inventory. First workman (older son): Makes copper vessels; keeps the tools in working condition; stores and withdraws raw materials; experiments with new designs and materials; makes repairs.

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Second workman (younger son): Helps in the workshop; takes care of light and heat; cleans the workshop; makes deliveries and performs messenger services; assists in packing merchandise in the store. Though this business may appear small, ¡t has all the essential of a larger business including: departments, assignment responsibility resulting from division of labor, a plan, and supervision. Manufacturing, selling, and service tasks are well defined, If new tasks and responsibilities are added by the growth of the business, or if assignments of tasks are made to more persons, (the organization structure will become more complex. Always however, tasks and responsibilities ought to be clearly outlined, objectives must be specifically stated, and controls must be provided. INDIVIDUAL AND GROUP RESPONSIBILITY The Filipino treats responsibility in terms of signals or instructions from the boss or leader. Almost tribal in his psychological roots, the Filipino‘s authoritarian-centered orientation means he has little awareness of his own individual responsibility. His own authority and responsibility, in his own mind, therefore is nebulous. Malabo. Depende sa kung anong gusto ng Boss (Vague. Depends on what the bass wants). This dependence on the leader is strengthened by the informal support of his immediate group or affiliation. He looks for assistance from his affiliated group when he needs help. He is also ready to pitch in when needed. Thus in his mind, ―individual responsibility‖ is not very clear until the Boss defines it; where this does not happen, he turns to his group for guidance, support, or help. In time, out of this analysis of working with the group, of feeling, experimenting, and settling down, then he begins to define a set of things to do, or functions to perform, and eventually of outputs he must produce. As it often happens, this experiential definition of ―individual responsibility‖ will not jibe with his formal job description. His attitude, when informed about this disparity, is simply a shrug: 78

―Papel iyon‖ (that‘s paper) — referring to the job description. Iba ito (This is different) — referring to his actual job. Talagang trabaho ito. (This is real work.)

GOOD ORGANIZATIONS PREPARE UNDERSTUDIES This obscurity is not helped by the Boss‘ attitude of not correcting the disparity between the written job description and real job activities. And why does the Boss not correct this? There are several reasons: (1) He himself may not believe in the description, tending to treat it as an academic exercise; (2) He relics on the group harmony and work output, believing that as long the group is not causing trouble but shows solidarity lings and working together, then all is well; (3) He will wait actions and inquire from his kapatas (foreman) first, before he goes down to the level of the individual worker; or (4) He will only when a crisis has emerged such as a quarrel or a over lines of authority or pakialaman (interference). This reliance of the individual worker upon his group is even stronger and more emotional than his functions and responsibility as a Filipino citizen. His educational background theoretically prepares him for active and productive

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citizenship such as country, payment of taxes, support of government programs, observance of laws, etc. But in real life, it is his group norms and values that influence his decisions, actions, and lifestyle. It is very close at hand, its members are his affiliates, and they are all hindi katalo. Being citizen is too far away while being an utol (kin) is more concrete and comfortable. Thus ideas or suggestions coming from a member of the group is greeted not with a rational analysis but with the question: Atin ba ito? Kagrupo ba?‖ If he is, then the idea is accepted with, little concern for objective analysis.

DON‘T BE A PUPPET TO YOUR BOSS The group‘s power or authority to influence or command thought, opinion, or behavior of others depends on the following: 1. The leader‘s title — the higher the title the more powerful he seems to be.

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2. The leader‘s character — the stronger the character, the more ―macho‖ (masculine), the more assertive, the more powerful he seems to be. 3. The leader‘s status or prestige — the more widely known or revered, the more powerful he seems to be. 4. The leader‘s competence or skill — the more academically prepared and talented, the more powerful he seems to be. 5. The innate authority and rights due to the title itself as provided for by law or policy. In almost every operating organization, the power and contacts of leaders and groups have more importance than titles or authorities It is the leader and the group which provide members a feeling of security, the group s social prestige, and status within the organization.

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Chapter 10 Creativity

Huwag kang matakot sa creativity (Don‘t be afraid of creativity). Most people are awed by creative people — poets who can write beautiful lyrics, scientists who an invent ingenuous products, mathematicians who can produce long equations, or musicians who can compose brilli1andy or play the music stupendously. Certainly, these people has some streaks of genius But we know that creativity does not necessarily mean being a genius.

Creativity means

looking at things with a fresh eye; creativity is relating previously unrelated, things. Bagong mata sa mga lumang bagay (New eyes for old things).

Halimbawa: anong nakikita ninyo sa larawan? (For example, what do you see in the picture?) Look at Figure 4 carefully. What do you see? Are you sure? How old would the subject be?

Is there anything unique in the clothes the

subject is wearing? Why? Do you see one image? Two? Bakit? CREATIVE PROCESS Creative process can come in a series of steps. I often go through the following activities when bringing groups of people together in a planning workshop or in problem-solving: 1. Facts and Problems There is a difference between an analysis of the situation and problem definition. When you analyze the situation, it is f important to be factual: to stick to the facts, to the data and statistics on hand, to the reports of parties involved. But after analysis, you have to make a judgment — you render an opinion, thus defining the problem. Defining the problem is a critical first step in any creative process; but this is possible only after you have gathered the relevant and available facts.

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2. The Objective The problem can best be defined when measured against a specific objective or standard. In other words, the problem is a deviation of the objective. Situational analysis and problem-definition are an appraisal of where we are now, today. But defining the objective is a statement of where we want to be tomorrow, in the future; the gap between today and tomorrow is the objective. All kinds of problems must be, eliminated or diminished for engineering the desired tomorrow. 3. Brainstorm This is the third step following situational analysis, problem definition, and objective1 setting. In brainstorming, every one involved, should participate without exemption. In this process, each one gives a possible solution and lit is written on the board without any order or priority. Lista na lang ng lista (List the items as they come). There should be no questioning, nor debate or challenge to the ideas presented. The idea is to present them as one has thought of them in the past or as they emerge during the crossfire of ideas Clarifications or explanations are allowed, but no challenging. 4. Cluster The next Step is to cluster or group together into common topics or subjects the various ideas that emerged from the brainstorming. For example, put together all the ideas on financing, all ideas) belonging to marketing, to engineering, to personnel, or taxation. Pagkukumpulin iyong mga naguugnay (Cluster those that have an interrelationship). If the brainstorming list yielded 40 to 50 ideas, clustering should classify them into 7 to 10 main ideas or topics. In this process, duplication or conflict of idea are eliminated.

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5. Prioritize Which of the clusters should come first? Which should come last? There are criteria for priorities. However, a lot of verbal exchanges may occur during this proportion since different people have different priorities. For some, the most important priority is whether there is money available; another will say what counts most is the number of customers or beneficiaries; others may claim that it should be timing; still others assert it should be availability of knowhow or technology; there are others who will insist on the support of top management and owners. At this point, therefore, such priorities should be evaluated carefully and weighed or scaled according to a value so that the priorities can be classified as most important, next in importance and so on.

Figure 4 Sketch of a Lady 6. Action-Planning Once the clustered ideas-solutions halve been prioritized and weighed, action-planning or implementati1on take place. Without execution or action, ideas do not become that important or practical. It is necessary to plan the action required: defining the steps of implementation, the activities to be undertaken, the responsible parties, the schedule of each activity, the budget required, the facilities and manpower/staff needed, etc. All of these should be 84

planned.in detail and not glossed over in a general manner. Moreover, monitoring, reporting, and evaluation forms should be included in the plan.

MGA HALIMBAWA (EXAMPLES) What kind of tests should show if an individual is creative or not? There are many kinds, although our preferences are those developed by the Institute of Personality Assessment and Research in Berkeley, California. The parts of this test are as follows: 1. Mga halimbawang pambihira (Unusual examples) In this test, you are asked to list six uses of a specific object. If you give unusual answers, i.e., answers which are not cited by others, t he more creative you are. If you give commonly repeated answers, you score low on creativity. For a pencil eraser, for example, you will score high if you give an unusual example like: ―To remove grease spots from a radiator fan belt.‖ 2. Ano kayang mangyayari? (What will happen?) This is another test called the consequences test. You are asked to write down all the things you can think of that might happen if a certain change takes place. For example, you are asked: ―What will happen if all of a sudden everyone had x-ray eyes like Superman?‖ If your answer is unusual and not cited by others, you score high.

MINDS ALSO NEED MUSCLES 85

3. Kwentuhan (Story-telling) In this test, you are given two short stories. You are asked to make up as many titles as possible. More clever answers receive higher scores. 4. Inkblot test This refers to blots created by ink spread on sheets of paper (tintang

kinalat sa papel). You are asked to interpret 10 inkblots. If you give unusual answers you score highest. But the answers should he a little realistic because the inkblots can really force one to think up of all kinds of images, crazy or otherwise. 5. Anagrams test This is a test based on familiarity with words and spelling. You are given a word, like ―abbreviation,‖ and you are asked to make as many words as possible, using any combinations of the letters such as ―via,‖ ―it,‖ ―brat,‖ etc. The more unusual the words you create, the higher the score. 6. Kabitan ng salita (Word arrangements) You are given a random list of word. From this list you are supposed to compose al story using a many of the words as possible. The more original the story the higher the score. CREATIVITY TYPES There are four types of creativity: I. Tunay na pakulo (The real innovation) Innovation happens when there is something new: a new idea, a theory, a new style of writing õr1painting, a new invention, or a new fashion style, etc. Fantasy or daydreaming is part of innovation — when the mind goes into things never thought of before; people like Galileo, Einstein, and Jose Garcia Villa belong to this category. Another type of innovation refers to ideas or concepts for building cities under the oceans or reading the minds of people.

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LINISIN ANG MARUMING ISIP (SWEEP AWAY BAD IDEAS) 2. Mahusay sa Pagtagpi (Good, in Synthesis) Another creative activity is synthesis r the ability to absorb and use ideas from several sources. A synthesizer cans put ideas: from five different people or groups together, get the best from the mix, and then produce a new idea or what appears to be something new like a new idea, a product or a service.

Halimbawa (For example): a machine that combines a personal computer with a Betamax and TV set. 2. Extension This is the third type of activity in which a basic innovation is enlarged and stretched out all the way possible. The Japanese are very good at this. They bought the transistor battery from the Americans, then stretched this into the billion-dollar electronics industry today. Einstein‘s idea of atomic energy led to the atomic bomb, and later to high technology. 4. Duplication

Kopya-kopya (Constant imitation). Again the Japanese are masters of this trait. They copied the fountain pen, the motorcycle, the camera, the Swiss watch, etc.; now they are even better than the original inventors and developers. 87

Chapter 11 Communication PINOY COMMUNICATION Dr. Tomas Quintin Andres points to four aspects of communications in the Philippine setting:

Ang ―Yes‖ ng Pinoy (The Filipino Yes) Managers and administrators who are ignorant of the Filipino culture are, oftentimes startled by a positive answer given by a Filipino to an instruction only to find later that the same individual did exactly the opposite without asking questions regarding the clarity of the instructions. What constitutes the situational orientation of the Filipino ―Yes?‖ An average Filipino will say ―YES‖ when: a. He does not know. b. He is annoyed. e. He wants to impress. d. He wants to end the conversation. e. He half understood the instruction or what is being said. f. He is not sure of himself. g. He knows better than the one speaking to him. h. Hindi alam kung anong gagawin. Nakakahiyang mahalata na mahina.

So, ―yes‖ na lang. (He does not know what to do. He is embarrassed to show his lack of smartness. So he says yes.)

Subukan Ko, Pare (the Filipino ―I‘ll Try‖)

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Again, Andres points out that to a Filipino this phrase ―I‘ll try‖ has certain well-defined meanings according to the manner ¡n which it is said. In some c4ses, it clearly means ―I can‘t produce the goods. on the date you gave but I don‘t want to upset you by saying ―no‖. A market administrator who does not know the Filipino culture will think that the Filipino hasn‘t really tried. Conversely, when you ask a: Filipino to ―drop by for dinner tonight‖ and he said ―I‘ll try,‖ he is asking you to repeat the invitation more strongly. There are two reasons for this: firstly, invitations to a person‘s home are not made lightly; invitations are frequently made when the host does expect the guest to accept. If not, the guest understands the nature of this invitation as pabalat-bunga (skin of the fruit, superficial) and replies by saying: ―I‘ll try‖ when he has no intention of attending.

Tahimik Lang Tayo, Pare (The Filipino Silence) In other cultures, a silent answer to request of a favor could be construed that he agrees to your request. This is not so among Filipinos. The Filipino silence does not necessarily mean consent. When a Filipino is silent, many times he is saying something; however, one should not force him to talk because if you do so, he will tell you nothing. Many times because of fear of stirring up conflict with ―people who count,‖ the Filipino feels that he does not have to real his thoughts to individuals; if he reveals some thoughts, these would be the aspects of his thoughts which he thinks are acceptable to you. Even when a Filipino does not agree with you, he could choose weak agreement by saying Siguro nga (―I guess so,‖) rather than outrightly disagree with you, Andres notes.

lyakin lyan (The Filipino Crying) In the Philippines, women are inordinately prone to cry. They do not feel embarrassed about crying. The culture allows it as part of their feminine nature. Filipino men are allowed occasional tears but, in general, crying in men is taken as a sign of weakness.

Crying as a form of communication is used in Filipino

culture to serve many purposes, from release of unexpressed aggression to creating a guilt in others. It is a communicating anger or displeasure. 89

THE ART AND PRACTICE OF GIVING ORIENTATIONS AND BRIEFINGS: For owners and managers who give orientations and briefings, there are twelve pointers, which can prove vital, informative, and helpful to become productive:

Talagang Pinag-aralan (Mastery of Topic) The ease with which good briefers or speakers expound on the subject matter is deceiving — it is really the result of intensive study and mastery of the subject. The speaker must know the topic in and out, up and down, and from every angle. Talagang pinag-aralan (It was really studied). This means research and analysis, structuring outlines in terms of audience needs, and concentration. An unprepared speaker is easily detected; no matter how much he tries to crack jokes, smooth-talk the audience, or make little talk, he is still off mark and the whole briefing is a disaster. This is not usually noticed because the participants, especially if they are farmers/fishermen, are simply polite and quiet.

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Talagang Importante Lang (Key Points) Be sure you know the key points of emphasis in your briefing. Prioritize these points in terms of your audience. Stick to them, weave your talk around these points. Jot key phrases on the blackboard. Use examples to emphasize the lessons. Pero huwag iyong sabog. Iyong importante lang. (But don‘t be disorganized. Just the key points).

Anong Pakay? (Reemember the Objectives) The main objective of an orientation or briefing is to prime the audience, to motivate or arouse them to seek more information and to take positive action or acquire skills necessary to take advantage of the opportunity being presented. This motivation or priming must begin with speaker himself.

He must show

sincerity, enthusiasm, commitment, and belief in the potentials of the project so that these signs can flow into the audience. The briefer must be unfeigned and whole-hearted. He is the prime mover.

Know your audience Insist on getting a profile of the audience, not only in terms of number and types/levels of responsibility, but also in terms of their interests and needs. The lower the socio-economic status of the audience or their head-representative before the briefing is therefore always helpful.

Ask questions relating to the

interests and needs of the audience. Think audience therefore, don‘t just think of yourself.

Problem Solving The briefing/orientation should be geared towards problem-solving. Zero in on serious difficulties or gaps, rather than generalities, concepts, or abstracts. Being adults, the audience want pragmatic and useful ideas and advice, so that your focus should be on the how-to‘s, when, and why, including actual experiences and cases of beneficiaries/projects.

Palitan Experience (Exchange of Experiences) Where time allows, engage the participants in the exchange of ideas and experiences. Their personal interpretations of problems, opportunities, and 91

alternative solutions should be part of the content analysis.

Make the,

exchanges flow among participants across the room or assembly hall.

Systemic and Systematic Be systemic or wholistic in approach. Consider the audience (its capability, level of comprehension, needs, and interests); consider the project and is organization (its limitations and resources, its reach and strengths, its priorities); consider the community and environment of the audience (its state of development or underdevelopment, resources and strategic location).

At the

same time, be systematic or logical and orderly in your presentation.

Don‘t

confuse the minds of the audience. Use an outline. Don‘t read the speech; stay away from such formalities. Use notes or commit the outline to memory. Stay simple.

Kautinting Biro-Biro (Spicing the Talk) Use jokes as an opener or in-between long sessions. But don‘t rely on jokes. Don‘t overspice the briefing with excessive, misplaced, or badly-delivered jokes or tales. Use appropriate examples; stay away from American or European cases.

Research local projects. Where appropriate, recap certain points with

Filipino sayings or expressions.

Learn to draw cartoons or doodles on the

blackboard. Master the combined use of writing and drawing on the blackboard, timing your points with acetates or slides and using simple materials or instruments to illustrate or dramatize a point.

Use AVs Where Practicable Where practicable, use audio-visuals such as acetates (over-head projector), slides (slide projector), or the more sophisticated audio-cassettes presuming video cassette recorders arc available.

You may also use the

blackboard with colored chalk or illustration boards/charts especially when explaining systems and procedures or giving examples. If the blackboard is to be used, practice your doodles and key phrases before the briefing. Show ease in your blackboard notations and doodles so the audience will not feel uncomfortable. And, whenever you can, provide materials for distribution. 92

TALKING BUT NOT COMMUNICATING

Script a Group Presentation If more than one speaker will make the presentation, be sure there is an agreed script as to who says what, at what point, and why. Agree to minutes assigned to each other and don‘t overcrowd. If any of the speakers are bad speakers, support them with charts or slides or give them fewer minutes.

Diskusyon Lang (Involve the Audience) Allow for questions. Form a panel beforehand if there is time. Ask for experiences and insights. But make the exchange flow naturally. Acquire skills as an anchorman. While you may be addressing the whole audience, set your eyeballs in spirits of 3 to 5 minutes at specific persons or sectors of the audience to give them the feeling you are talking to them only.

Ayusin ang Kapaligiran (Setting the Ambiance) Check out the setting — the room, hall, the area under the mango tree, or wherever you will do the briefing. Check the PA system beforehand, the seating arrangements, the AVs, the placement of equipment, the availability of chalk/eraser, materials, etc. Wear clothes that blend with the ambiance — Don‘t overdress, or appear coy, or pretend to be poor when you‘re not. Be one with the environment and the audience.

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PURPOSES OF BUSINESS MEETINGS As a group leader, you must be clear on what the point is for all the talking. Only then can you start playing a useful leadership role instead of just sitting as a passive figurehead or, worse, actively leading the discussion off the rails. First, you need to be clear about the type of meeting you are running: you can‘t decide your own role until you‘ve decided this prime question. Here are eight of the more common types of discussion that actually take place in meetings:

Briefing One member (not necessarily yours) gives the rest of the group a briefing on a situation, a policy, a plan, an approach to future problems. They question him, not to challenge what he as saying but simply to get a clear understanding. If you are not acting as the informant, your adequate understanding is also needed.

Coordination Review Each member gives a short account ‗of whatever is happening in his own area of responsibility, and is then briefly questioned by the other members to establish the facts and explore their relevance for other members. Any problems of coordination that cannot be quickly resolved are noted for solutions outside the meeting. Your role is to tee that there are no doubts about what each report implies for the immediate plans of others in the group. See to it that problems that cap be resolved in private discussions among members are not discussed at length by the whole group. This type of meeting is often a regular weekly or monthly event within a department or project group or across different interlocking units.

Fact-finding This discussion tackles a problem that is common to all members present. Each member contributes his knowledge of facts that are relevant to the problem or issue — facts on which someone (perhaps present, perhaps not) will later have to base a decision. Members‘ contributions stimulate each others memories 94

of relevant facts. Your role is to sec that the group cines not limit its fact-finding by trying to pre-judge the issue or waste time trying to resolve the problem before the facts are clear. You must also ensure that the discussion covers all relevant angles, that facts are properly recorded and given appropriate weight, and that they are reported to the decision-maker.

Brainstorming The aim here is to produce the widest possible range of imaginative ideas for solving a problem or for developing some possibility, including ideas that may seem ridiculous or far-fetched at first sight. The group may analyze the problem or question in search of ideas, but it does not attempt to evaluate the ideas or to reach a solution Your role is to prevent negative or destructive Comments about any idea put forward, and to see that every idea is recorded You have to maintain a totally permissive atmosphere.

Evaluation The task is to present an assessment of alternatives (or sometimes to recommend a decision) to someone who eventually has to take a personal decision. The decision-maker may or may not be present, but he wants a variety of opinions and arguments to consider in making his decision. All members present participate in analyzing the given alternatives (perhaps produced by an earlier brainstorming discussion) or in considering proposals put forward. Your role is an impartial chairman, whether or not you are eventual decision-maker. You see that all members contribute effectively, that they listen to each other in developing points put forward, and that each angle of the question is given proper weight in the group‘s thinking. You may also have to steer the group away from time-wasting attempts to add to the alternatives given

Joint Decision-making. As in the evaluation discussion, all those present participate in weighing up alternative solutions or in considering proposals put forward But the aim here is for the group itself to come to an agreed decision (or falling this, a majority decision) about a policy, a plan, or an action. Your Tole again is that of an 95

impartial chairman. But here there is no final decision-maker to act as a backstop for a poor group decision; thus, you have to ensure that the group arrives at a good decision (not necessarily the decision you yourself would have chosen). See to it that the discussion deals with the subject in logical stages, that all contribute effectively and are listened to, that each angle of the subject is given proper weight, and that the group‘s1 decision is practicable and one that all members of the group will really support. You remind the group of items forgotten, of factors and risks that are in danger of underrating. You ensure that ail are clear about he practical implications of their decision. This is the most

difficult type of discussion to chair effectively but is of enormous value when well-run.

BODY LANGUAGE IS THE MOST EFFECTIVE COMMUNICATION

Action-planning This discussion assumes a broad plan or policy already decided elsewhere, or a state of affairs demanding action. The group discusses the different tasks that will have to be done to achieve the required results and agrees who will do what. Your role is to see that all actions needed are taken into account, that each member is clear about his tasks and about the way they interlock with others‘ tasks, and that contingency plans are developed for likely snags or failures. You also, have to steer discussion away from reconsidering the rightness of the given plan or policy itself (evaluation). 96

Opinion-airing The purpose here is to give your people the opportunity to vent their feelings or views about some issues — either as a form of ―blowing off steam‖ or so that others can assess the force of these feelings and decide what should be done. Your role is to ensure that members are not inhibited from speaking their minds; at the same time, see that the group does not confuse facts for feelings. You also have to see that those speaking feel their views, are having a fair hearing and will be given proper weigh t in any decision that follows. In addition to these eight common types of discussion, you may occasionally find yourself involved in negotiations. Usually the group represents two sides of an argument or case and tries to arrive at an integrated solution to the problem (i.e. one that satisfies both sides present) — or, failing this, a compromise or ‗force majeure‘ solution. If you are the chairman, your role is that of a totally impartial, completely unbiased umpire, accept able to both sides. Useful meetings nearly always serve a learning purpose for the members. However, from time to time you may see opportunity to use a meeting specifically for training. Perhaps, you give a short briefing or discussion to explore members‘ understanding and acceptance of the points you‘ve made. The meeting may tackle practical exercises or role-play situations. You act as guide and coach, and aim to stimulate the enthusiasm of the members for applying the knowledge, skills, or ideas they are learning. BODY LANGUAGE Your body or facial expressions tip off others to what is really on your mind. These nonverbal signals are revealed by a frown, a nervous touching of the nose, the way you shrug your shoulders, or a gesture with your hands. Don‘t concern yourself with changing or controlling your body language, but do recognize that many employees will read it to tell how sincere you are.

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COMMUNICATION OF COMICS The Asiaweek Magazine has a very interesting viewpoint on the impact of comics in the Philippines. It said that a common sight in Metro Manila, in the university belt especially but also in the far-flung barrios, is the makeshift sari-

sari store. Besides purveying cigarettes, Coca-Cola and cheap food, the stores specialize in renting out komiks for a nominal fee to a corps of enthusiasts eager to find out what their favorite heroes and villains are up to. In the Philippines, comics aren‘t just kid stuff. They have become, for many readers, a substitute of Sorts for literature in a country which, despite its high literacy rate (83%), has a publishing industry that does not actively promote works of serious fiction by indigenous authors, especially if they are written in local languages. The 45 or so comics magazines which appear weekly and ―sell for about ten U.S. cents, have a combined circulation of two million. But with a pass-on rate of at least five, they easily reach ten million readers almost a fifth of the national population.‖

Asiaweek noted that ―comics were introduced in 1929 through the vernacular magazine Liwayway (Dawning), and have through the years expanded into virtually every genre, including those previously reserved for established literary forms. Comics writers have unabashedly adapted for their medium colorful Philippine epics such as the Story of Lam-ang, centred on a mythical hero from northern Luzon renowned for his superhuman strength and courage.‖ Comics writers such as Clodualdo del Mundo and Francisco V. Coching have similarly taken the country‘s native awit and corrido, metrical romances that borrow heavily from European tales of chivalry and love set in the mediaeval Christian court, and turned them into picture-book renditions. Local characters, such as folk hero Bernardo Carpio and the young lovers Florante and Laura from leading poet Francisco Balagtas‘s bearing their names, regularly grace the pagés of comic books along with knights and damsels straight from the courts of King Arthur, and Charlemagne. Writer Pedrito Reyes has even created a local version

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of Edgar Rice Burrough‘s Tarzan with his series chronicling the adventure of Kulafu and Og.

HUWAG BOLAHAN NG HUSTO (DON‘T EXAGGERATE PROMISES) Recently, according to Asiaweek, ―the romantic genre has been adapted for modern tales featuring such fictional heroes as Filipino spacemen and world champions, as well as the local equivalent of Superman and Wonder Woman. Protagonists these days, reports Contributor Soledad Reyes, do battle not at the castle or fort but in intergalactic space or the bullfighting pits of Madrid. The arenas may have changed, but the structure, remains the same —— the hero (good) fights the villain (bad), and wins.‖ But it isn‘t all glory and romance in the Philippine comics. Following developments in modern fiction (albeit a bit tardily), they began to experiment with realism, especially n he 1950‘s. Serials depicting the poverty of Manila‘s slum dwellers, the ubiquity of prostitution, and the corruption of government officials began to appear alongside fantasy serial such as Zuma, one of the longest-running series, based on the exploits of a male Medusa, and Thumberella, a serial about a female Tom Thumb. Violence became a major theme in the works of authors such as Mars Ravelo, Ading Gonzales, Pablo Gomez, Ramon Marcelino and it was not the ‗Pow! Bam! Zap!‘ violence of

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Batman-type cartoons. It was, nr sought to be, a depiction of social reality. By the 1960s, these experiments also spawned a plethora of sex magazines with titles such as Pogi (―Handsome‖), Sex-see and Toro (―Bull‖), which were so explicit as to make readers of Playboy blush. As the l970s approached, demand again grew, for tales of - horror and fantasy, and le comics business responded with more romances based on native folklore and Western mythology. With the arrival of the l1980s, reader interest shifted to melodrama with an emphasis on sex, violence, class divisions, intrigue and familiar turmoil. ―The readers seem to prefer stories with a lot of action and drama,‖ said Ramon Marcelino, a leading editor and comics writer, ―especially those featuring characters from the lower classes.‖ Two of this year‘s most successful films, Paano Ba ang Mangarap (‗How is It to Dream?‘) and Bukas,

Luluhod ang mga Tala (‗Tomorrow, the Stars Shall kneel Down‘), were based on melodramatic comic serials. The current preference for tearjerkers is a curious phenomenon in a country beset by, economic crises and political unrest:

instead of seeking

comfort in escapism, readers seem to want stories that remind them of their own plight. Antonio Velasquez, creator of the popular everyman character Kenkoy, explains: ‗The readers can easily identify‘ with the characters in the stories and their uphill fight against poverty. We mist remember that these people face the same situations that the characters often confront.‘ Melodramas are all the more popular since, as Marcelino points out, they usually end ‗quite happily with the oppressed character finally being vindicated‘. Realizing the enormous communicative power of the comics, the Philippine government has in recent years hired some of the country‘s‘ foremost writers and illustrators to produce comics magazines promoting official policies. The National Media Production Centre has used the medium, for example, to advocate birth control, the ‗Green Revolution,‘ and the government‘s campaign to stem the nationwide exodus to the cities. According to one erstwhile functionary, the response to these comics has generally been favorable. Dr. 100

Victor Valbuena, formerly with the Population Information Education Office, said the office was regularly flooded with letters from readers seeking further information on topics addressed in government comics. Still, the comics struggle for legitimacy. The middle and upper classes tend to denigrate them, as do many educators who regard them as ‗kitsch‘ or, worse, purveyors of smut and violence. For their part, teachers of literature and reading see comic books as a‘ threat to their efforts to enliven student interest in serious literature and academic studies, said Asiaweek. Yet many believe the comics are an important medium They are, said Valbuena, ‗reflections of Filipino values and ideals. Some think they are capable of more than mere reflection. According to poet-critic Virgilio S. Almario, comics are a ‗potent force even for a political revolution. The ‗tremendous impact‘ comics have on Philippine society and their potential usefulness as a means of communication ‗‗would become much clearer, says Ricardo Abad, a sociologist and former director of the Institute of Philippine Culture, if comics were elevated to the level of academic discussion. But whether such forums materialize or no, there is little doubt comic books are in the Philippines to stay. The academics and the literati may scoff all they like, but readers will almost surely continue to be amused. Komiks, anyone? Big-time business corporations should not forget the communications impact of komiks!

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Chapter 12 Lesson for the Pinoy: A Look at the Japanese THRIFT IN JAPANESE FAMILIES

Sekreto ng Hapones (The Secret of the Japanese) Part of Japanese progress is in their saving habit. Despite the high cost of living and a lower increase, rate in income, the Japanese manage to keep a tight hold over their purse strings. The average Japanese household, one of the thriftiest in the world, usually set aside 15 percent of annual income for savings. The annual rise in savings is partly attributable to the increased thriftiness of high-income households. In June and July 1984, an annual nationwide survey examined 6,000 households of at least two family members to investigate savings, habit. The Central Council for Savings Promotion disclosed that the principal reasons given for saving were security in the event of sickness or disasters, followed by expenses for retired life, and educational costs for children. The survey also revealed that the Japanese are slowly breaking away from their conservative tendency of laying aside savings in the form of deposits and instead investing them in higher interest-bearing financial instruments such as securities and money trusts. The nation‘s unique bonus system, whereby a worker receives about five extra months of salary twice a year, also encourages the current practice of placing one-fourth of this in savings. A number of historical factors led to the Japanese habit of saving. From ancient times, homes were frequently destroyed due to natural disasters like earthquakes, fires, the hardships encountered after World War II, and the Confucian virtue of frugality, among others. FUJI BANK‘S SOLUTION TO ITS $110-M LOSS Why shouldn‘t the Japanese trust their banks? This example will show why: 102

Fuji Bank lost a total $110.4 million in authorized foreign exchange dealings through a dealer in its New York branch. Senior officers at the Bank could not have known of the situation since the dealer issued false reports on his dollar/yen positions. Nor could any of them hive benefitted in any way. When the matter finally came to light, the bank promptly made full public disclosure and its 14 senior officers acknowledged their responsibility by foregoing their annual bonuses and by accepting a 10 to 20 percent cut in salary for six months. In view of the above, the incident did not lead to any loss of confidence in Fuji Bank. JAPANESE CUSTOMER-ORIENTATIOIN In Tokyo Nippon Telephone and Telegram Public Corp. mobilized 1,700 of its employees one day in 1984 to start visiting more than 85,000 homes, shops, and offices in Tokyo to apologize for a nine-day break in telephone services. Spokesman Shiro Ikehata disclosed that the employees were to give small towels as tokens of apology and to listen to complaints from customers which include several large bans and various catering services, and the general public.

Kung ganyan lang ng PLDT (If only the Philippine Long Distance Telephone Company were like that!) JAPANESE MANAGEMENT An American writer, Christopher Byron asked: ―How has an overpopulated island country with less land than California leaped in only three and a half decades from wartime defeat to the status of high-technology dynamo?. How has a country that imports 100 percent of its aluminum ore, 98 percent of its iron ore, 99 percent of its oil, and 66 percent of its wood and lumber become a world economic power?‖ The answers, it seems, lie in Japanese cultural traits, particularly the following:

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Pulong-pulong muna (Negotiate First) to Arrive at Consensus One of the most important characteristics of the Japanese is a willingness to achieve consensus by compromising. In a real sense nearly everyone has atleast some voice in running society No matter what the group — from the smallest upstart enterprise to the largest multibillion-dollar multinational — nothing gets done until the people involved agree.

The Japanese call this

nemawashi (root binding). Just as a gardener carefully wraps all the roots of a tree together before he attempts to transplant it, Japanese leaders bring all the members of a society together - before an important decision is made.

Kopyahan (Emulation) Few nations have sought out and used the best from other societies as Japan. Examples of the copycat technique abound, according to Byron. In Japan‘s postwar rush to rebuild its economy, the country‘s businessmen searched the globe for patents and industrial technologies. In 1953, the Sony Corporation paid America‘s Western Electric a mere $25,000 for rights to manufacture the transistor, and thereafter built the investment into an entire microelectronics industry. Japanese businessmen today still descend on foreign executives to learn, often in the most excruciating detail, exactly how they conduct business. Japan has an insatiab1e hunger for foreign technical and scientific manuals, and businessmen and engineers eagerly appropriate the bet ideas.

ESQ (Quality) Three decades ago, ―Made in Japan‖ was synonymous with shoddy workmanship, and Japanese products were marketed mainly in dime stores. Yet, today firms like. Sony and Datsun sell their products principally on the basis of high standards. This change is a result of the nation‘s preoccupation with quality control. At Matsushita Electric, Japans largest consumer-electronics company, workers are instilled with the notion that each one of them is a quality-control inspector. If he sports a faulty, item in the production process, he is encouraged to shut down the whole assembly line to fix it. 104

Labanan ng Husto (Competition) While Western businessmen often regard Japan as a giant cartel, competition is actually fierce. Products shipped abroad have such high quality and low, price in large part because they have already survived the Japanese domestic market. In 1955, the leading motorcycle company in Japan was Tohatsu, while Honda was a distant No. 2.

By 1964, the more competitive

Honda dominated the local market and Tohatsu had begun moving, into other fields. New products hit the Japanese domestic market with dizzying frequency. When Toyota last year introduced the world‘s first chip-operated voice synthesizer to warn drivers of low fuel and fluid levels in their cars, Nissan Motor hustled out its own competing versions within weeks.

Isip-Bukas (Futurism) Japanese society is forward-looking in a manner that is difficult for Westerners to, understand. Individuals are seen to benefit only through the elevation of the entire group; corporation are not after the quick payoff or big quarterly jumps in share-holder dividends, but a solid market position that will be rewarded over the longer term. Byron noted that businesses and government look five, ten, even 20 years ahead and try to build a prosperity that can last. One reason why some companies are not under constant pressure for fast profits is that they are financed largely by banks rather than by individual shareholders. The banks are interested in short-range dividend increases than in seeing the firms‘ profits reinvested to ensure future growth. As noted earlier this long-haul mentality is reflected in Japan‘s dedication to savings. Nothing has given more momentums, to the country‘s economistic juggernaut than the propensity of its citizens to save money.

Their deposits

have provided the capital needed to keep Japanese plants modern and productive.

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UNDERSTANDING THE JAPANESE MIND A.R. Samson, in his book review of The Japanese Mind by Robert Christopher explains that as a tribe, the Japanese have a homogeneous culture that serves as a context for ail 120 million, of them. This tribal characteristic is tightened by a common language. As in all languages, Niponggo contains its own unique thought process reflecting its culture. The language includes a, variety of expressions to denote honorific forms of address. Thus, a simple question like ―Where are you going?‖ has a totally different translation in Japanese depending on whether the question is addressed to one‘s son or to one‘s boss. How do you explain the mania of the Japanese businessman for quickly time? The cards give a clue to the other person‘s status and the corresponding respect he deserves. The tribal characteristic of the Japanese allows them to adopt foreign technology and innovation rather quickly. Once the survival of the tribe isinvoked, the Japanese have been known to make dramatic cultural turnarounds as in the Meiji restoration when they moved from an insular xenophobic posture to an open-arms toward foreigners. The tribal mentality is so ingrained that sometimes spoken language is no longer necessary. Feelings are communicated by such non-verbal signals as the length of a pause between question and answer, the prolonged intake of breath through closed teeth, or a contemplative ―hmmmm.‖ The ability to move together and communicate as a tribe gives the Japanese a very strong herd instinct, which allows them to subordinate possibly disruptive individualism to the needs of the group. What can be a more graphic picture of this tribal tendency than a group of Japanese tourists in Zamboanga or Cebu dutifully following the tour guide with the flag staying together in Japanese-affiliated hotels and eating in Japanese-affiliated restaurants, notes Samson. Samson then explains that author Robert Christopher takes a closer look at the clichés that are commonly passed off as typical Japanese business practice. One commonly cited personnel practice is lifetime employment, which is 106

used to explain automation without fear of losing his job. Although the large corporations like Sony, Toyota, or Matsushita do offer lifetime employment, the smaller companies do not. Seventy percent of all industrial workers in Japan work in companies with an employee force of 300 or less. Half of these again work in small shops of five workers or less at 70% of the salaries of the big company sarasiman (a Japanese borrowed word for employee or a Japanized pronunciation of salary man). The small business is still the backbone of the Japanese economy. Efficiency is forced by the need for survival. When large companies cannot layoff their workers in a recession, it is the small subcontractors that have to absorb the inevitable cost cutting requirements through improved productivity. High productivity is considered one, of the strengths of the Japanese system. This is made possible by the Japanese openness to innovations, which stems partly from their reading habits. Curious about new technology and generally interested in learning, the Japanese are voracious readers. Japanese book publishers churn out about 35,000 new titles each year, twice the number per capita than, the United States. The biggest Japanese newspaper the Yomiuri

Shimbun, has a daily circulating 8.7 million compared with the biggest circulating American daily, New York Daily News, with 1.8 million copies a day, and Manila

Times which at its peak sold 300,000 copies a day. This wide circulation gives the Japanese newspapers vast resources to utilize in gathering, even outside Japan.

The Japanese media blanket the world.

There are more fulltime

Japanese correspondents in Paris alone than Newsweek in all its foreign bureaus put together. The Japanese read the books they buy. This is gleaned from the failure of book clubs to catch on in Japan. The Japanese would rather buy their books in bookstores (sometimes eight nine stories high) than get regular, sometimes unwanted volumes to keep up membership in a book club or to stuff a personal library. This passion for reading has even spanned a business of renting out reading rooms to the harried. Japanese who wants peace and quiet away from 107

his crowd home. If he reads this much, does the Japanese. have any more time for watching television? Surprisingly, his‘ average viewing is still 3 hours and 19 minutes on weekdays, an-d 4 hours and 11 minutes on Sundays.

A true

information society, Japan seems to soak in all the data it can use. Will this culture which has wrung the greatest dedication and sacrifice for the company from the ordinary worker continue to dominate the Japanese mind? The grip seems, to‘ be loosening.

A new generation Japanese, the Crystal

people (from a popular 1980 novel Call Us Crystal) looks down patronizingly at the self, sacrificing sarariman. The Crystal people coming now into, the work force are not as willing to subordinate their personal drives and wants to the company. They want their own houses sooner. Most of all, they want to have more time for themselves. No more burning of the midnight oil so that Toyota can battle, Renault for number one position in the U.S. car market.

Iba nang klaseng Hapon ito! (They are a different crop of young Japanese!) JAPANESE TO STEP UP RESEARCH EFFORTS TOKYO — Japan is to redouble its efforts in basic and applied science, a sector already taking large sums, Michiyuki Isirugi, director-general of the Science and Technology Agency, said. He told a news conference that in 1982 Japan spent around 6,000 billion yen ($25 billion) on research, or 2.8% of gross national product (GNP). It was outpaced only by the United States and the Soviet Union. The United States spent 19,250 billion yen ($80 billion) or roughly the same percentage of GNP. The Soviet Union spent 7,170 billion‘ yen (more than $25 billion) or 4.85% of GNP. In Japan, research personnel totaled 340,000 or 28 per 10,000 and in the USSR it was .53 per 10,000.

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Japan could do better, Isurugi said. The government planned to. use the vitality of the private sector and vigorously promote basic and applied science. Japan needed original technologies, he said.

Priorities Chief fields for the future are nuclear power, space research, oceanography, genetics, and biotechnology. But Japan would share in the space platform announced by President Reagan. The Japanese financial contribution was yet to be decided, he said. Informed sources believed this could be 1.5 billion yen ($6.25 million). A decision is expected at the next Western summit conference. JAPAN INCREASES SPENDING ON TECHNOLOGY According lo the Associated Press, Japan spent $28.6 billion (7.2 trillion yen) on technology in 1984, ranking it second in the world behind the United States, according to a government survey. The private sector accounted for three-fourths of the total spent in Japan, the report by the Management and Coordination, Agency said last year. Japan ranked second only to the United States, which spent $83.3 billion. The Soviet Union spent $28.4 billion. Conducted annually since 1953, the survey polled 17,800 private and government-affiliated corporations and universities. Viewed as a percentage of the gross national product, Japan, at 2.58 percent, ranked fourth behind the Soviet Union, at 3.66 percent; West Germany, at 2.79 percent, and the United States, at 2.65 percent. GNP is a measure of the total value of goods ad services sold in one year. The report emphasized, however, the expenditures on basic research rose only slightly.

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Manufacturing companies accounted for more than 90 percent of the private concerns, expenditures. Of this, the electronics and machinery industries accounted for one-third. Japan imported more technology than it exported in 1984 with exports valued at 240.9 bi1hion yen and imports at 279.3 yen.

SUMALANGIT KA NA WA May you rest in peace, as the Filipino expression goes. People can think of all kinds of businesses, even in their deathbed! In Forth Lauderdale, Florida, Ken McAvoy, 41, who claims he will be dead of a brain tumor very soon, is offering Americans to take their personal messages on his final voyage for $20 per message. McAvoy, whose physician confirmed the terminal illness, said in a classified advertisement that he would have the message placed in his coffin, and would try his best to contact the addresses in the great beyond. He did not specify how he intended to go about it, but, assured it was legitimate, saying ―if it was a con I‘d be charging Lesions for the Pinoy: A Look at the Japanese $5,000‖. McAvoy said he has five paid-up messages, among them ―I love you and will join you soon,‖ and, from an individual forsaken a will: ―Why, dad?‖

MATALINO, MASIPAG — PERO WALANG SUWERTE! (BRIGHT, HARD-WORKING — BUT FULL OF BAD LUCK!)

MAY-ARI KA NGA, PERO HINDI IKAW ANG PINAKAMAGALING! KUNIN IYONG EXPERT! (YOU‘RE THE OWNER, BUT NOT THE MOST COMPETENT! GET AN EXPER!)

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