Baun, John Joshua P.

11- Faith
Organization and
Management- Module 7

What I Know

Read carefully and answer the following questions. Choose the letter of the correct answer.
Write your answers in your journal.

1. It is usually represented with organizational charts and with position descriptions.

A. Formal Organization
B. Informal Organization
C. Organization Design
D. Structure

2. It pertains to the usual or old-fashioned ways of structure.

A. Formal
B. Informal
C. Modern
D. Traditional

3. The following are an example of Traditional Organization except .

A. Divisional
B. Function
C. Simple
D. Matrix – Project Design

4. The following are an example of Modern Organization except:

A. Boundary – Less Design
B. Divisional
C. Matrix – Project Design
D. Team Design

5. It refers to the contemporary design theories.

A. Formal
B. Informal
C. Modern
D. Traditional

6. Organizational design is .
A. A process that determines the salary structure of the company
B. A process that forecasts the revenues and profits of the company
C. A process to help you decide whether or not you will organize your business as a single
proprietorship, partnership, or corporation
D. The process of aligning an organization’s structure with its vision and mission
 7. The following are the advantages of a simple organizational design except _.
A. Clear accountability
B. Fast Decision making and result
C. Flexible
D. Cost-saving advantage

8. Project Design is .
A. Organizational design where employees continuously work on different company
B. Organizational design where employees continuously work on a project.
C. Organizational design where employees continuously work on a same division
D. Organizational design where employees continuously work as a team

9. Teamwork and cooperation are two essential factors for an organization’s success.
A. True
B. False
C. True, on the part of cooperation but not in teamwork
D. True, on the part of teamwork but not in cooperation

10. It is the organizational design used when management facilitated workers with similar
tasks.
A. Divisional
B. Functional
C. Project Design
D. Team Design

Lesson
Organization Theories for Effective Business
2 Management

What’s New
Activity
1) Choose one popular Fast food or restaurant in your community. Name some teams that
maybe organized within the company to help achieved its goal.

I choose the popular Fast Food chain Jollibee, the teams that maybe organized that help achieved the
company’s goal are the Human Resources, Finance, Legal, Marketing, Research & development,
Global real estate, corp. affairs, cashiers, service crew, delivery riders.
Discussion Activity 1
On your journal, copy the table below and choose the appropriate Strength and Weakness in each
Traditional Organizational structure.
Strengths/Weakness
1) Possible duplication of activities and resources.
2) Staff can make quality decisions, get support from specialists, and enjoy better
coordination.
3) Cost – saving advantages.
4) Managers have little knowledge of other units’ functions.
5) Flexible
6) Clear accountability
7) Increase cost and reduce efficiency
8) A tendency to develop personal image within the group
9) Get training to enhance skills, get an opportunity to work in research & development.
10) Fast decision – making and results
11) Risk that overdependence with over – dependence on a single person.
12)Focused on results
13) Managers are responsible for what happens to their products and services.
14) No longer appropriate as the company grows
15) Management is facilitated because workers with similar tasks are grouped together

Simple Organizational Design

Strength Weaknesses

1. Fast decision – making 1. No longer appropriate as

and results the company grows
2. Flexible 2. Risk that overdependence
3. Clear accountability with over – dependence
on a single person.
3.

Line & Staff Organizational Design

Strength Weaknesses
1. Staff can make quality 1. Management is
decisions, get support facilitated because
from specialists, and enjoy workers with similar
better coordination. tasks are grouped
2. Get training to enhance together
skills, get an opportunity
to work in research &
development.
3.
 Functional Organizational Design

Strength Weaknesses

1. Management is facilitated 1. Managers have little

because workers with knowledge of other units’
similar tasks are grouped functions.
together 2. A tendency to develop
2. Cost – saving advantages personal image within the
group

Divisional Organizational Design

Strength Weaknesses
1. Focused on results
1. Increase cost and reduce
2. Managers are responsible
efficiency
for what happens to their
2. Possible duplication of
products and services. _
activities and resources

3. Staff can make quality

decisions, get support from
specialists, and enjoy better
coordination.
4.

Discussion Activity 2
On your journal, copy the table below and choose the appropriate advantage and disadvantage in
each modern organization structure.

Advantages/Disadvantages
1) Empowerment of team members
2) Highly flexible and responsive
3) Reduced barriers among functional areas
4) Great pressure on teams to perform
5) Flexible designs and fast decision – making
6) Specialists are involved in the project
7) Clear chain of command
8) Complexity of assigning people to projects and tasks
9) Task and personality conflicts
10) Lack of control and problems in communication

Advantage/s Disadvantage
Team Design Team Design
1. Empowerment of team 1. Task and personality conflicts
members 2. Lack of control and
2. Clear chain of command problems in communication
Matrix – Project Design Matrix – Project Design
1. Lack of control and
1. Flexible designs and fast problems in
decision – making communication

2. Highly flexible and 2. Task and personality

responsive conflicts

Team Design Team Design

1. Specialists are involved in the 1. Task and personality
project conflicts

What’s More

Independent Activity 1

Copy this Venn Diagram on your journal and write keywords or phrases to describe and contrast the
similarities and/or differences that you observed on the traditional and modern organizational design.

VENN DIAGRAM
Traditional Modern
organizational design organizati onal
Similarities design
They both
- usual or old- contemporary or
define how
fashioned ways activities such new design
as allocation, theories.
coordination,
and
supervision
are directed
Independent Activity 2
Arrange the letters to identify the correct word that is being described. Write your answer on your
journal.

1. SIMPLE STRUCTURE →
Usually used by small businesses that start out as entrepreneurial ventures.
2. FORMAL ORGANIZATION →
There is a clear reporting relationship that the manager is aware of.
3. ORGANIZATIONAL DESIGN→
• The process of aligning an organization’s structure based on its vision and mission.
4. LINE ORGANIZATION →
• Power flows from the top down to different operational levels or workers.
5. GENERAL STAFF →
• These staff aren’t experts.
6. SPECIALIZED STAFF →
• Their roles can be advisory, control (as in quality control), or service (such as
maintenance).
7. FUNCTIONAL STAFF →
• Employees are organized according to their specific skills and their corresponding
function in the company.
8. DIVISIONAL STAFF→
• Suitable for companies that operate in different geographical locations.
9. TEAM DESIGN →
• It is meant to disrupt the traditional hierarchy, focusing more on problem solving,
cooperation, and giving employees more control.
10. PROJECT DESIGN →
• It refers to an organizational design where employees continuously work on project.

Independent Activity 3

Case Study
Engineer John Cruz is a supervisor of a group of light project engineers. His unit is burdened with
heavy workload because of increase in orders of their company’s computer components. Following
up customer’s orders and the availability of these said products by himself is too much work from
him. As a consultant for the company, what would you advice Engineer Cruz? Explain your
answer.

As a consultant, I would like to advise Engineer Cruz to manage the company’s assets in order to carry
out the strategy efficiently and successfully. Because many of the “assets” are employees,
understanding specialty and Job division is critical to this attempt.
By separating a small part of work, the workers speed and accuracy in its performance increases. This
principle is applicable to both technical as well as managerial work.” Mr. Cruz can group those
employees into departments so their work is appropriately directed and coordinated. In short, work
should be divided, and the right people should be given the right jobs to reduce redundancy and
inefficiency.
 What I Have Learned
Questions:

1. What is the importance of having a right organizational design in a company?

- Having a right organizational design, it fosters a productive environment and improved
communication aided by well- structured and designed organization by organizational design,
and the efficiency with which it can regulate numerous aspects in the surroundings is
determined by it.

2. In your own understanding, Construct/make each one example of following

organizational design:
• Simple
- A business with few employees ( a owner that has all authority and total control and set few
rules and policies)

• Functional
- Finance department, sales department, customer service, administration, and so on. They’ve
done similar jobs and really good at it.

• Divisional
- An example for this is Jollibee corporation since they operate under a divisional structure.
The business organization is separated into components that are given duties depending on
operational requirements.

• Team design
- An example for this is a group of team that focuses on more problem solving, cooperation
and employees more control

• Matrix – project design

- An example for this are the employee who have two managers who share authority over them

• Boundary – less design

- An example for this are small groups of full-time employees and outside specialists that are
temporarily hired to work on projects
 What I Can Do
At the end of the lesson, write two or three sentences to complete the following:

I realized that:
Business need to be execute the plan efficiently and effectively, Understanding specialization and the
division of work is key to the success of a business so that business can run smoothly.

I resolved that:
I must Analyze the nature of organizations and types of organization structures and Apply
organization theories for effective business management.