Organization and

Management
Republic Act 8293, section 176 states that: No copyright shall subsist in any work of
the Government of the Philippines. However, prior approval of the government agency or office
wherein the work is created shall be necessary for exploitation of such work for profit. Such
agency or office may, among other things, impose as a condition the payment of royalties.

Quarter 2 – Module 1:
 Borrowed materials (i.e., songs, stories, poems, pictures, photos, brand names,
trademarks, etc.) included in this module are owned by their respective copyright holders. Every
effort has been exerted to locate and seek permission to use these materials from their
respective copyright owners. The publisher and authors do not represent nor claim ownership
over them.

Published by the Department of Education

Secretary: Leonor Magtolis Briones
Undersecretary: Diosdado M. San Antonio

SENIOR HS MODULE DEVELOPMENT TEAM

Author : Annie Rhose C. Rosales

Co-Author - Content Editor : Charina C. Dizon
Co-Author - Language Reviewer : Lorace A. Lopez
Co-Author - Illustrator : Annie Rhose C. Rosales
Co-Author - Layout Artist : Annie Rhose C. Rosales

Team Leaders:
School Head : Carlito A. Pontillas LRMDS Coordinator : Annie
Rhose C. Rosales

DIVISION MANAGEMENT TEAM:

Schools Division Superintendent : Romeo M. Alip, PhD, CESO V
OIC- Asst. Schools Division Superintendent : William Roderick R. Fallorin, CESE
Chief Education Supervisor, CID : Milagros M. Peñaflor, PhD
Education Program Supervisor, LRMDS : Edgar E. Garcia, MITE
Education Program Supervisor, AP/ADM : Romeo M. Layug
Education Program Supervisor, Learning Area : Dan Caysido
Project Development Officer II, LRMDS : Joan T. Briz
Division Librarian II, LRMDS : Rosita P. Serrano
Division Book Designer : Annie Rhose C. Rosales

Printed in the Philippines by Department of Education – Schools Division of Bataan

Office Address: Provincial Capitol Compound, Balanga City, Bataan
Telefax: (047) 237-2102
E-mail Address: [email protected]
 Organization and
Management
Quarter 2 – Module 1:
The nature of organizations and types
of organization structures.

Introductory Message
For the facilitator:

Welcome to the Organization and Management Grade 11 Alternative Delivery Mode

(ADM) Module on The nature of organizations and types of organization structures!

This module was collaboratively designed, developed and reviewed by educators both
from public and private institutions to assist you, the teacher or facilitator in helping
the learners meet the standards set by the K to 12 Curriculum while overcoming their
personal, social, and economic constraints in schooling.

This learning resource hopes to engage the learners into guided and independent
learning activities at their own pace and time. Furthermore, this also aims to help
learners acquire the needed 21st century skills while taking into consideration their
needs and circumstances.

In addition to the material in the main text, you will also see this box in the body of the
module:
 Notes to the Teacher
This contains helpful tips or strategies that
will help you in guiding the learners.

As a facilitator you are expected to orient the learners on how to use this module. You
also need to keep track of the learners' progress while allowing them to manage their
own learning. Furthermore, you are expected to encourage and assist the learners as
they do the tasks included in the module.

For the learner:

Welcome to the Organization and Management Grade 11 Alternative Delivery Mode

(ADM) Module on The nature of organizations and types of organization structures!

The hand is one of the most symbolized part of the human body. It is often used to
depict skill, action and purpose. Through our hands we may learn, create and
accomplish. Hence, the hand in this learning resource signifies that you as a learner
is capable and empowered to successfully achieve the relevant competencies and
skills at your own pace and time. Your academic success lies in your own hands!

This module was designed to provide you with fun and meaningful opportunities for
guided and independent learning at your own pace and time. You will be enabled to
process the contents of the learning resource while being an active learner.

This module has the following parts and corresponding icons:

 What I Need to Know This will give you an idea of the skills or competencies you
are expected to learn in the module.

What I Know This part includes an activity that aims to check

what you already know about the lesson to take. If you get all the answers
correct (100%), you may decide to skip this module.

What’s In This is a brief drill or review to help you link the current lesson with
the previous one.

What’s New In this portion, the new lesson will be introduced to you in
various ways such as a story, a song, a poem, a problem opener, an activity
or a situation.
What is It This section provides a brief discussion of the lesson. This aims
to help you discover and understand new concepts and skills.

What’s More This comprises activities for independent practice to solidify your
understanding and skills of the topic. You may check the answers

to the exercises using the Answer Key at the end of the module.

What I Have Learned This includes questions or blank sentence/paragraph to

be filled in to process what you learned from the

lesson.

What I Can Do This section provides an activity which will help you
transfer your new knowledge or skill into real life situations or concerns.

Assessment This is a task which aims to evaluate your level of mastery

in achieving the learning competency.

Additional Activities In this portion, another activity will be given to you to

enrich your knowledge or skill of the lesson learned. This also tends
retention of learned concepts.

Answer Key This contains answers to all activities in the module.

At the end of this module you will also find:

References This is a list of all sources used in developing this module.

The following are some reminders in using this module:

1. Use the module with care. Do not put unnecessary mark/s on any part of the module.
Use a separate sheet of paper in answering the exercises.
2. Don’t forget to answer What I Know before moving on to the other activities included in
the module.
3. Read the instruction carefully before doing each task.
4. Observe honesty and integrity in doing the tasks and checking your answers.
5. Finish the task at hand before proceeding to the next.
6. Return this module to your teacher/facilitator once you are through with it.

If you encounter any difficulty in answering the tasks in this module, do not
hesitate to consult your teacher or facilitator. Always bear in mind that you are
not alone.

We hope that through this material, you will experience meaningful learning and gain
deep understanding of the relevant competencies. You can do it!
 What I Need to Know

This module is designed and created to help you understand the

different organization design and its organization.

At the end of this module, you will be able to:

1. Discuss the different organizational design;

2. Appreciate the different organizational design; and

3. Application of different organizational design to its own organization.

 What I Know

Read the statement below. Analyze the situation and underline the
words or phrase that you think can identify themselves
to the organization.

Mabel is an ABM Grade 12 student. She wants to organize ABM club, so the
student from her strand can think of ways to learn and understand more their
subjects and they can also conduct a community engagement to where they can share
their knowledge and understand more of the surroundings with regards to their
studies. She searched students that are capable of handling stress, pressure and
leadership towards others. She looks for their strength and weaknesses.

After a month the ABM club are complete. She studied organizational design
and theories to be used. She tried the traditional design – which is the usual old
fashioned way of modern theories which are contemporary or new design theories.

She plans to have a delegation. She also wants all her members to be responsible, she
makes a list in delegation to wit:

1. Defining the goal clearly

2. Selecting the person who will be given the task

3. Assigning of responsibility

Because she wants her team to have a sense of authority and accountability.
She wants to be known as caring and loving leader and at the same time to be strict
in managing the organization.
 Read carefully the statement and underline the correct words that best
describe the statement.

1. Refers to an organizational design where specialist from different

departments work on projects that are supervised by a project manager.

2. The entire organization is made up of work groups or teams. Its advantages include
empowerment of team members and reduced barriers among functional areas. It also
has disadvantages, including a clear chain of command and great pressure on teams to
perform.
 3. Are the usual, old fashioned ways.

4. The right to act legally or officially.

5. Is to be liable to be called to explain.

Lesson
Apply organization
theories for effective
1 business management.

Organization Theories and Applications

There are two main classifications of theories regarding organizational design
according to Robbins and Coulter (2009): traditional and modern. Traditional pertains
to the usual or old-fashioned ways, while modern refers to contemporary or new
design theories.

Traditional organizational design theories include:

SIMPLE

This organizational design has few departments, wide spans of control, or a big
number of subordinates directly reporting to a manager; has a centralized authority
figure and has very little formalization of work; usually used by companies that start
out as entrepreneurial ventures.
 When applied, its strengths and weaknesses are revealed. See Table 4.1 below.
Simple Organizational Design

Strengths Weaknesses
-flexible -risk that overdependence with over dependence on
a single person

-fast decision-making and results

-clear accountability -no longer appropriate as the company grows

Functional

This organizational design groups together similar or related specialties. Generally,

functional departmentalization is utilized and put into practice in an entire
organization. For example: A marketing firm that markets cars and related products
like tires, car batteries, and accessories.

It has strengths and weaknesses as seen in Table 4.2

Functional Organizational Design

Strengths Weaknesses

-cost-saving advantages -managers have little knowledge of other units’ functions

- management is facilitated because

workers with similar tasks are grouped together.

DIVISIONAL

This organizational design is to made up of separate business divisions or units,

where the parent corporation acts as overseer to coordinate and control the different
divisions and provide financial and legal support services.

Table 4.3 shows its strengths and weaknesses.

Divisional Organizational Design

strengths Weaknesses

-focused on results -possible duplication of activities and resources

what happens to their products

-managers are responsible for

-increased cost and reduced efficiency and services.

 Modern organizational design theories include:

TEAM DESIGN

In team, the entire organization is made up of work groups or teams. Its advantages
include empowerment of team members and reduced barriers among functional
areas. It also has disadvantages, including a clear chain of command and great
pressure on teams to perform.

MATRIX-PROJECT DESIGN

Matrix design refers to an organization design where specialists from different

departments work on projects that are supervised by a project manager. This design
results in a double chain of command wherein workers have two managers – their
functional area manager and their project manager – who share authority over them.
Advantage: specialists are involved in the project. Disadvantage: task and personality
conflicts.

Project design refers to an organizational design where employees continuously work

on a project. Advantages: flexible designs and fast decision-making. Disadvantages:
complexity of assigning people to projects and tasks and personality conflicts.

BOUNDARY-LESS DESIGN

This is another modern organizational design where the design is not defined or
limited by vertical, horizontal and external boundaries. In other words, there are no
hierarchical levels that separate employees, no departmentalization and no
boundaries that separate the organization from customers, suppliers and other
stakeholders. Virtual organization designs are often used in this design: small groups
of full-time employment and outside specialists are temporarily hired to work on
projects. Its advantages include being highly flexible and responsive, while its
disadvantages are lack of control and problems in communication.

DELEGATION
Delegation refers to assigning a new or traditional task to a subordinate, it may also
refer to getting work done through others by giving them the right to make decisions
and take action. Elements of delegation include: authority or the right to set officially
or legally, responsibility or the state of being answerable legally/morally for the
discharge of a duty, and accountability is to be liable to be called to explain. Steps in
delegation include:

1. Defining the goal clearly. Managers must clearly explain the task
objective and the work or duties someone else is expected to do.

2. Selecting the person who will be given the task. The selected subordinate
must be competent and must share the manager’s task objectives.
 3. Assigning of responsibility – Managers must explain that the
responsibility assigned to the selected subordinate is an expectation for him or her
to perform the assigned tasks well.

4. Asking the person assigned about his or her planned approaches to

accomplish the task objectives. It is expected that the person chosen to do the task
already has a tentative plan of action that may be presented to the manager, to
assure him or her that the person assigned could achieve the task objective.

5. Granting the assigned person, the authority to act. If the manager is

satisfied with the tentative plan of action presented, granting of the authority to act
immediately follows. Authority is right to act in ways needed to carry out the assigned
task.

6. Giving the assigned person enough time and resources to do the task,
while the same time emphasizing his or her accountability. Accountability is the
assigned person’s willingness to complete the job, as agreed upon.

7. Checking the task accomplishment progress. Following up and

discussing the task accomplishment progress at regular intervals is necessary.

8. Making sure that the task objective has been achieved. The above steps
of delegation were given by Weihrich and Krontz (2005).

Delegation has advantages and disadvantages as well.

Advantages of Delegation Disadvantages of Delegation

It prevents work overload among It may cause laziness among

organization managers. organization managers.

It provides opportunities for employee

or subordinates assigned to do the task It may encourage too muc h
to fully utilize their talents on the job. dependence on others.
 It may cause lack of control over priority
management problems.

It leads to empowerment of employees

or subordinates assigned to do the task,
as it allows them freedom to contribute
ideas and to perform their job in the
best possible way.

It increases job satisfaction among the

assigned employees or subordinates, It may cause low self-confidence
that may lead to better job performance. among managers.

What’s In

Apply the correct letter to form the right word or words

that fits to its meaning.

1. _ E L E _ A _ _ O N – Refers to assigning in a new or additional task to a subordinate; or

getting the work done through others by giving the right to make decisions or take action.

2. A _ T _ _ R _ T _ - The right to act legally or officially.

3. A _ _ O U N _ A _ I _ I T _ - Is to be liable to be called to explain.

4. R _ _ P O _ _ I B _ L I T _ - The state of being answerable legally and morally for the

discharge of duty.

5. O _ G A _ I Z A _ _ O N _ L _ E _ I _ N - The manner in which a management achieves the

right combination of differentiation and integration of the organization’s operations, in
response to the level of uncertainty in its external environment.

6. T _ A _ I T _ O _ A _ T H _ O _ I _ S - Are the usual, old fashioned ways.

 Notes to the Teacher

This module will prepare the learners to analyze diagrams in

explaining how materials cycles in the environment.

What’s New

7. _ _ D _ R N _ H E O _ I _ S – Are contemporary or new design theories.

8. T _ A _ _ T _ O _ A L – Pertains to the usual or old-fashioned ways.

9. M _ _ E _ N - refers to contemporary or new design theories.

10. D I _ I _ I _ N _ L - This organizational design is made up of separate business divisions

or units, where the parent corporation acts as overseer to coordinate and control the
different divisions and provide financial; and legal support services.

Choose the term that best describes each given statement. Write ONLY the letter of
your choice on the blank provided before the number.

_________1. Refers to assigning in a new or additional task to a subordinate; or getting

the work done through others by giving them the right to make decisions or take
action.

_________2. Is to be liable is to be called to explain.

_________3. The right to act legally or officially.

_________4. Are contemporary or new design theories.

_________5. Refers to an organization design where specialists from different departments work
on projects that are supervised by a project manager.

What is It
ORGANIZATIONAL DESIGN – The manner in which a management achieves
the right combinations of differentiation and integration of the organization’s
operations, in response to the level of uncertainty in its external environment.

TRADITIONAL THEORIES – Are the usual, old fashioned ways.

MODERN THEORIES – Are contemporary or new design theories.

DELEGATION – Refers to assigning in a new or additional task to a

subordinate; or getting the work done through others by giving them the right to
make decisions or take action.

AUTHORITY – The right to act legally or officially.

RESPONSIBILITY – The state of being answerable legally and morally for the discharged of
duty.
ACCOUNTABILITY – Is to be liable to be called to explain.
 What’s More

Write the Strength and Weaknesses of each Organizational design given

below.

Simple Organizational Design

Strengths Weaknesses
1.
1.
2.
2.
3.

Functional Organizational Design

Strengths Weaknesses

1 1.
2.

Divisional Organizational Design

Strengths Weaknesses

1 1.
2.
2.
 What I Have Learned

FILL IN the WORDS that will complete on the statement below.

In team design, the entire 1.______________ is made up of work groups or teams.

Its advantages include empowerment of team members and reduced barriers among
functional areas. It also has disadvantages, including a clear 2.__________________
and great pressure on teams to perform. Matrix design refers to an organization
design where 3.________________ from different departments work on projects that
are supervised by a 4.____________. This design results in a double chain of command
wherein workers have two managers. – their 5.________________ manager and their
6.______________ manager – who share authority over them.
 What I Can Do

Rearrange the jumbled letter to form the correct words that fits to
the statement’s meaning on every number. Write your answer
to the underlined world after the statement.

NOITEDLEAG 1. Refers to assigning in a new or additional task to a

subordinate; or getting the work done through others by giving them the right to make
decisions or take action. _______________________.

NDGIES ESSL YBOURAND 2. This is another organizational

design where the design is not defined or limited by vertical, horizontal and external
boundaries. In other words, there are no hierarchical levels that separate employees, no
departmentalization and no boundaries that separate the organization from customers,
suppliers and other stakeholders. _____________________.

TCERPOJ GEISDN 3. Refers to an organizational design where employees

continuously work on a project. _______________________.

RADTIITOALN SIEEOHTR 4. Are the usual, old fashioned ways.

_______________________.

RDTILOANATI 5. Pertains to the usual or old-fashioned ways.

_______________________.
 Assessment

IDENTIFICATION: Write the correct answer on the space provided before the number.

___________1. The manner in which a management achieves the right combination of

differentiation and integration of the organization’s operations, in response to the level
of uncertainty in its external environment

___________2. Is to be liable to be called explain.

___________3. Refers to assigning in a new or additional task to a subordinate; or

getting the work done through others by giving them the right to make decisions or
take action.

___________4. The state of being answerable legally and morally for the discharge of duty.

___________5. The right to act legally or officially.

___________6. Are contemporary or new design theories.

___________7. Are the usual, old fashioned ways.

___________8. In ________, the entire organization is made up of work groups or

teams. Its advantages include empowerment of team members and reduced barriers
among functional areas. It also has disadvantages, including a clear chain of
command and great pressure on teams to perform.

___________9. Refers to an organization design where specialists from different departments

work on projects that are supervised by a project manager.

___________10. It pertains to the usual or old-fashioned ways.

___________11. Refers to contemporary or new design theories.

___________12. This organizational design has few departments, wide span of control,
or a big number of subordinates directly reporting to a manager; has a centralized
authority figure and has very little formalization of work; usually used by companies
that start out as entrepreneurial ventures.

___________13. This organization design groups together similar or related specialties.

___________14. This organizational design is made up of separate business divisions

or units, where the parent corporation acts as overseer to coordinate and control the
different divisions and provide financial and legal support services.

___________15. This is another modern organizational design where the design is not defined
or limited by vertical, horizontal and external boundaries.
Additional Activities

WORD POOL Complete the statements using the correct words given in the box.

__________________1. The manner in which a management achieves the right

combination of differentiation and integration of the organization’s operations, in
response to the level of uncertainty in its external environment.

__________________2. Refers to assigning in a new or additional task to a

subordinate; or getting the work done through others by giving them the right to
make decisions or take actions.

__________________3. If the manager is satisfied with the tentative plan of action presented to
the manager, granting of the authority to act immediately follows.

__________________4. Managers must explain that the responsibility assigned to the

selected subordinate is an expectation for him or her to perform the assigned task
well.
__________________5. It is expected that the person chosen to do the task already
has a tentative plan of action that may be presented to the manager, to assure him
or her that the person assigned could achieve the task objective.

__________________6. Managers must clearly explain the task objective and the work or
duties some else is expected to do.

__________________7. The selected subordinate must be competent and must share the
manager’s task objectives.

__________________8. The last steps of delegation, and it is given by Weihrich and Krontz
(2005).

__________________9. Accountability is the assigned person’s willingness to complete the

job, as agreed upon.

__________________10. Following up and discussing the task accomplishment progress at

regular intervals is necessary.
 Additional Activities
Read the questions and choose the letter of the correct answer.

1. This organizational design groups together similar or related specialties.

Generally, functional departmentalization is utilized and put into practice in an entire
organization. For example: A marketing firm that markets cars and related products
like tires, car batteries and accessories.
a. Informal design

b. Systematic design

c. Functional design

d. Structural design

2. If the manager is satisfied with the tentative plan of action presented, granting
of the authority to act immediately follows. Authority is a right to act in ways needed
to carry out the assigned task. In which step of delegation does this occur?

a. Defining the goal clearly.

b. Granting the assigned person, the authority to act.

c. Selecting the person who will be given the task

d. Assigning responsibility.

3. It is expected that the person chosen to do the task already has a tentative plan
of action that may be presented to the manager, to assure him or her that the person
assigned could achieve the task objective. In which step of delegation does this occur?

a. Asking the person assigned about his or her planned approaches to accomplish the
task objectives.

b. Giving the assigned person enough time and resources to do the task, while at the
same time emphasizing his or her accountability.

c. Checking the task accomplishment progress.

d. Making sure that the task objective has been achieved.

4. Managers must explain that the responsibility assigned to the selected
subordinate is an expectation for him or her to perform the assigned task well. In
which step of delegation does this occur?

a. Defining the goal clearly.

b. Granting the assigned person, the authority to act.

c. Selecting the person who will be given the task

d. Assigning responsibility.

5. Managers must clearly explain the task objective and the work or duties
someone else is expected to do. In which step of delegation does this occur?

a. Defining the goal clearly.

b. Granting the assigned person, the authority to act.

c. Selecting the person who will be given the task

d. Assigning responsibility.

6. Following up and discussing the task accomplishment progress at regular

intervals is necessary. In which step of delegation does this occur?

a. Asking the person assigned about his or her planned approaches to accomplish the
task objectives.

b. Giving the assigned person enough time and resources to do the task, while at the
same time emphasizing his or her accountability.

c. Checking the task accomplishment progress.

d. Making sure that the task objective has been achieved.

7. Accountability is the assigned person’s willingness to complete the job, as

agreed upon. In which step of delegation does this occur?

a. Asking the person assigned about his or her planned approaches to accomplish the
task objectives.

b. Giving the assigned person enough time and resources to do the task, while at the
same time emphasizing his or her accountability.

c. Checking the task accomplishment progress.

d. Making sure that the task objective has been achieved.

8. In _____ design the entire organization is made of work groups or teams. Its
advantages include empowerment of team members and reduced barriers among
functional areas. It also has disadvantages, including a clear chain of command and
great pressure on teams to perform.

a. matrix
 b. simple

c. complex

d. team

9. ______ design refers to an organization design where specialists from different

departments work on projects that are supervised by a project manager. This design
results in a double chain of command wherein workers have two managers – their
functional area manager and their project manager – who share authority over them.

Advantage: specialists are involved in the project. Disadvantage: task and personality conflicts.

a. matrix
b. simple

c. complex

d. team

10. ______ design refers to an organizational design where employees continuously

work on a project. Advantage: flexible designs and fast decision-making.
Disadvantages: complexity of assigning people to projects and tasks and personality
conflicts.

a. project

b. traditional

c. modern

d. organizational
References
DepEd (2016). Kto12 MELC. Organization and Management

For inquiries or feedback, please write or call:

Department of Education – Region III,

Schools Division of Bataan - Curriculum Implementation Division
Learning Resources Management and Development Section (LRMDS)

Provincial Capitol Compound, Balanga City, Bataan

Telefax: (047) 237-2102

Email Address: [email protected]