Organization and

Management
Quarter 2 – Module 1:
The nature of organizations and types
of organization structures.
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 Organization and
Management
Quarter 2 – Module 1:
The nature of organizations and types
of organization structures.
Introductory Message
For the facilitator:

Welcome to the General Physics - Grade11 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 General Physics - Grade11 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

1 for effective 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

Strenghts Weaknesses

-flexible -risk that overdependence with over

-fast decision-making and results dependece on a single person

-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 organziation. 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

Strenghts Weaknesses

-cost-saving advantages -managers have little knowledge of other

- management is facilitated because units’ functions
 workers with similar tasks are

grouped together.
DIVISIONAL

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

units, where the parent corportaion 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

Strenghts Weaknesses

-focused on results -possible duplication of activities

-managers are responsible for and resources

what happensto their products -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
Deligation 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 It may encourage too much dependence

or subordinates assigned to do the task on others.
to fully utilize their talents on the job.

It leads to empowerment of employees It may cause lack of control over priority

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

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

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.
 Notes to the Teacher

This module will prepare the learners to analyze diagrams in

explaining how materials cycles in the environment.

What’s New

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.

A. Delegation

B. Matrix design

C. Modern Theories

D. Authority

E. Traditional theories

F. Organizational deisgn

G. Accountability
 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. _______________________.

N D G I E S E S S L Y B O U R A N D 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. _______________________.
R D T I L O A N A T I 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.
Write your answer on the blank provided for every number.

♦Defining the goal clearly.

♦Assigning responsibility.
♦Selecting the person who will be given the task.
♦Asking the person assigned about his or her planned approaches to
accomplish the task objectives.
♦Giving the assigned person enough time and resources to do the task,
while at the same time emphasizing his or her accountability.
♦Checking the task accomplishment progress
♦Making sure that the task objectives has been achieved
♦Granting the assigned person, the authority to act.
♦Delegation
♦Organizational design

__________________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
What I Can Do: What I Have Learned: What’s More:
1. Professional 1. Administrators 1. TRUE
2. TRUE
Associations 2. Job design
3. TRUE
2. Executive Search 3. External
4. ADVERTISEMENT
Firms 4. Internal 5. UNSTRUCTURED
3. Employee Referrals 5. Unsolicited Approach INTERVIEW
4. Labor Unions
5. Internet Recruiting
What’s New:
1. T What In:
1. C What I Know:
2. T
3. T 2. B 1. Staffing
4. F 3. A 2. External and Internal
5. F 4. B Forces
5. C 3. Recruitment
4. Selection
Answer Key
 Additional Activity:
1. A
2. A
3. C
4. C
5. D
6. D
7. B
8. B
9. A
10. A
Assessment:
Additional Activities: 1. Establishing the selection criteria.
1. Internet recruiting 2. Requesting applicants to complete
2. Labor Unions the application form.
3. Advertisement 3. Verifying information provided by
4. Panel Interview the applicant
5. Screening by listing applicants who seem to meet the criteria 4. Requesting the applicant to
6. Informing the applicant that he or she has been for the undergo psychological and physical
position applied for. exam.
7. Requesting the applicant that he or she has been chosen for 5. Public and private employment
the position applied for. agencies.
8. Screening interview to identify more promising applicants. 6. Educational Institutions
9. Staffing 7. Structured interview
10. Screening by listing applicants who seem to meet the criteria. 8. One-on-one interview
9. Panel interview
10. Selection
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]