SHS

GRADE
11

ORGANIZATION AND
MANAGEMENT
QUARTER 1 – MODULE 7
ORGANIZING

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Objectives:
At the end of this module, you are expected to:
1. Analyze the nature of organization and types of organization
structures.

Lesson Proper
ORGANIZATION – a organization is a collection of people who work together
and coordinate their actions to achieve a wide variety of goals.
Formal Organization – is a system of well define jobs, each bearing a
definite measure of authority, responsibility and accountability.
Informal Organization – is a network of interpersonal relationship that
arises when people associate with one another.

THE NATURE OF ORGANIZATION

 Technology in organization
 Organizational Environment
 The dynamic or organization

1. TECHNOLOGY IN ORGANIZATION
The word technology has been derived from Greek words
“techne” meaning art or skill and “logia” in context of day to day
practice “technology” is a distinct word referring to the use and
knowledge of humanity’s tools and techniques.
Technology is one of the central and most significant elements
related to effective operations management in an organization.
The introduction to modern technology greatly enhance the
structure of the organization the link between departments and
outside clientele reduce the number of people handling different
activities.
Example:
1. Communication are delivered faster and decision making are
made right away because of available of data and information.
2. Secretaries and clerks became obsolete as more technical
people are needed in the organizational set up.
3. The presence of specialized staff free the manager from routine
activities.
4. The use of computer system for storing the information and

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 data can help monitor the effective performance of his staff.
2. ORGANIZATIONAL ENVIRONMENT
What is an Organizational Environment?
The organization works within the framework provided by
various elements of society. All such elements which lie outside the
organization are called external environment or simply as
environment. Also the organization may create an environment
internal to it which affects the various sub-systems of the
organization.
The following sectors are the external and internal environment:
1. THE INDUSTRY
The industry includes those organizations operating with
the same goals purpose and products. These
organizations are the same business that provides
competition. The state of the industry plays a significant
role in the survival of an organization. It helps determine
the goals of the organization.
2. THE SOURCE OF MATERIAL AND OTHER
PRODUCTION INPUTS
The external environment provide the material inputs
either for the production of new products for internal use
in communication. It is important that the organization
maintain good relationship with the suppliers of inputs to
operate effectively.
3. HUMAN RESOURCES
Human resources comprise the internal and external
environments. Internal when the employees are hired to
do the job necessary for the effective operation of the
company. The external environment when they serve as
potential manpower in the company’s expansion program,
they organized themselves into unions that may be
favorable or unfavorable to the existence of the
organization.
4. THE FINANCIAL SECTOR
Money is the name of any organization. The financial
sectors are the banks and other financial institutions. The
availability of money with low interest rates encourages
organizations to grow. Organizations need outside sources
of funds to grow fast.
5. THE CUSTOMERS AND OTHER STAKEHOLDERS
The customers buy the goods and services of the
organization. The market influences the growth and
expansion of organization. Market expansion increases
the company’s profitability, but if it shrinks the company

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 has to cut back its operation. The stakeholder’s patronage
is necessary in the growth of an organization.
6. THE ADVANCEMENT OF TECHNOLOGY
Technology updates help the organization and diversity
into new products and services. It influences the level of
skills and the improvement in the quality of product and
services.
7. THE COUNTRY’S ECONOMICS CONDITION
The general economic condition of the country affects an
organization’s health condition. Unemployment reduces
economics activity as there can be an excess supply of
goods in the market. High interest rates and inflation
reduces the purchasing power of the people, while the
excess production capacity affects the organizational
health conditions.
8. THE GOVERNMENT
The political system of the country highly effects the
organization. The government regulates business
organization. Imposes taxes and passes laws. It imposes
conditions on environmental safety, fair trade, practices,
product subsides, label statutes and establishes several
guidelines for the organization to follow. The government
regulates the flows of inputs and sometimes provides
protection to sometimes provides protection to some
favored organizations.
9. THE SOCIO-CULTURAL ENVIRONMENT
This sector refers to the demographic characteristics of
the society. Demographic condition refers to age, income
distribution, the work force educational level and the
place where the people live either rural or urban. Our
value system of love for imported goods affects our local
industries.
10. THE INTERNATIONAL COMMUNITY
The international community provides the greatest
competition for quality goods and services. It could
provide opportunities to exceed our exports against our
imports. We consume more foreign products due to our
value system and our inadequacy to improve our product.
We should create a balance of trade with other countries
at present: the backbone of our economy is the export to
our own people.

3. THE DYNAMIC OF ORGANIZATION

Dimensions
1. Structural Dimensions – describe the internal
characteristic of an organization.

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 2. Contextual Dimensions – Describe the organizational
setting that influence and shapes the structure dimension
STRUCTURAL DIMENSIONS
a. Formalizations is the amount of written documentation,
including procedures, job descriptions, regulation and policy
manuals.
b. Specialization is the degree to which organizational task are
subdivided into separate jobs
c. Standardization is the process where procedures, machines,
material and measuring instruments are set to repeatable and
attainable level as basis for measurement of performance are
perform in uniform manner.
d. Hierarchy of Authority describes who reports to whom and
the spa of control for each manager. Span of control is the
number of subordinates reporting to superior.
e. Complexity is the number of activities or sub-system within the
organizational framework. It can be measured in three
dimensions.
 Vertical Complexity
 Horizontal Complexity
 Spatial Complexity
f. Centralization is the extent to which decision-making is done
by the Top Management.
Decentralization is the extent to which authority to make
decision is delegated to lower levels of management
g. Professionalism is the level of formal education training of
employees.
h. Personal Ratio refer to development of people to various
functions and department. There could be administrative ratio
clerical ratio or ratio of indirect to direct labor employees.

CONTEXTUAL DIMENSION
a. Organization Size refers to the statistical number of employees
in the total organizational setup.
b. Organizational Technology refers to the use of modern
facilities in the production of goods or services it is measured in
terms of how it is applied efficiently and effectively in
transforming inputs to quality outputs.

PRINCIPLES OR ORGANIZATION
DIVISION OF LABOUR – breaking down jobs into simple & repetitive tasks
Advantages:

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  Repetition improves performance
 Time Saving
Disadvantages
 Lack of Specialization
 Not Suitable for large scale organization

UNITY OF COMMAND

 No member or organization should report to more than one superior

 An employee is responsible to only one supervisor, who in turn is
responsible to only one supervisor and so on up the organizational
hierarchy.
AUTHORITY & RESPONSIBILITY
 Authority is the right inherent in a manager to give orders and be
obeyed. Required to coordinate activities in an organization can be
delegated to subordinates for proper functioning and efficient
performance
 Responsibility comes with authority
 Operating responsibility: can be delegated to subordinate
 Ultimate Responsibility: cannot be delegated
SPAN OF CONTROL

 Refers to the number of people, the managers control. Difficult to

determine the optimum number. Narrow spam leads to many
hierarchies and a tall organizational structure.
 Scalar principal: authority and responsibility should flow in a clear
unbroken line from top to bottom.
 Departmentalization: breaking down activities into specialized groups.

TYPES OF ORGANIZATIONS
 Public Sector Organization
 Private Sector Organization
 Non-Government Organization (NGO)

PUBLIC SECTOR ORGANIZATIONS

The public sector is usually compromised of organizations that
are owned and operated by the government and exist to provide
services for its citizens.
Through the process of outsourcing, public sector organizations
will often engage private enterprises to deliver goods and services to
its citizens.
PRIVATE SECTOR ORGANIZATION
The private sector is the part of a country’s economic

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 system that is run by the individuals and companies, rather than the
government.
Most of the private organizations are run with the intention of
making profit.
NON-GOVERNMENT ORGANIZATION
A non-government organization is a non-profit, citizen-based
organization that functions independently of government.

TYPES OF ORGANIZATIONAL STRUCTURE

FLAT ORGANIZATIONAL STRUCTURE
A flat organization has an organizational structure with few or
no levels of middle management between staff and executives.
FUNCTIONAL ORGANIZATIONAL STRUCTURE
Is a type of organizational structure that uses the principal of
specializations based on function or role.
DIVISIONAL ORGANIZATIONAL STRUCTURE
The structure of divisional organization groups each
organizational function into a division. Each division contains
all the necessary resources and functions within it.
MATRIX ORGANIZATIONAL STRUCTURE
Is an organizational structure in which each individual reports
to more than one supervisor.

ACTIVITY
Directions: Identify the following
_____________1. An organization is a collection of people who work together
and coordinate their actions to achieve a wide variety of goals.
_____________2. Is a system of well define jobs, each bearing a definite
measure of authority, responsibility and accountability.
_____________3. Is a network of interpersonal relationship that arises when
people associate with one another.
_____________4. Is one of the central and most significant elements related to
effective operations management in an organization.
_____________5. Is usually compromised or organizations that are owned and
operated by the government and exist to provide services for its citizens.

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_____________6. Is the part of a country’s economic system that is run by the
individuals and companies, rather than the government.
_____________7. Is a non-profit, citizen-based organization that functions
independently of government.
_____________8. Has an organizational structure with few or no levels of
middle management between staff and executives.
_____________9. Is a type organizational structure that use the principal of
specialization based on function or role.
_____________10. Groups each organizational function into a division. Each
division contains all the necessary resources and functions within it.

REFERENCES
https://www.slideshare.net/reycastro1/the-nature-of-organization-95439047?qid=160a32bd-a934-
4dc7-bb14-d58c7d82d132&v=&b=&from_search=2

https://www.slideshare.net/RawahaShah/the-nature-of-organization-148102495?qid=160a32bd-
a934-4dc7-bb14-d58c7d82d132&v=&b=&from_search=1

Checked by:

Robert Francisco Virginia Gulinao Roldan Liwanag Antonio Basco

Principal Principal Principal Principal
JPI Sta. Maria JPI Muzon JPI Plaridel JPI San Jose

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ANSWER KEY

1. ORGANIZATION
2. FORMAL ORGANIZATION
3. INFORMAL ORGANIZATION
4. TECHNOLOGY IN ORGANIZATION
5. PUBLIC SECTOR ORGANIZATION
6. PRIVATE SECTOR ORGANIZATION
7. NON-GOVERNMENT ORGANIZATION
8. FLAT ORGANIZATIONAL STRUCTURE
9. FUNCTIONAL ORGANIZATIONAL STRUCTURE
10. DIVISIONAL ORGANIZATIONAL STRUCTURE