Subject: Organization and ManagementQ1 Week 8 Module 8
Subject Teacher: Charlene Esparcia-Cadenas
Module 8
“ORGANIZING”
LEARNING COMPETENCY: At the end of the lesson, the learner must be able to analyze the nature
of organizations and types of organization structures.
Let us check what you already know.
Direction: Create an organizational chart using the data given inside the box.
President: John Smith Manager: Allice Johnson
VP Marketing: Susan Jones Manager: Michael Gross
VP Sales: Rachel Parker Manager: Kathy Roberts
VP Production: Tom Allen
Lesson 1 NATURE OF ORGANIZATIONS
Differentiation of the Organization’s Internal Environment
Differentiation in organizations involves division of labor and specialization according to Bateman and
Snell (2008). These necessarily result from the organization’s composition—many different work units
with different kinds of tasks, using different skills and work activities coordinating with one another for a
common end.
Division of labor involves assigning different tasks to different people in the organization’s
different work units. Related to it is specialization, the process in which different individuals and units
perform different tasks. An organization’s overall work is complex and would be too much for any
individual, therefore, the bigger the organization, the more work units or work divisions and
specializations are to be expected.
Integration of Work Units
Integration is another process in the organization’s internal environment which involves the collaboration
and coordination of its different work units or work divisions. Coordination refers to the procedures that
connect the work activities of the different work divisions/units of the firm in order to achieve its overall
goal. Structural mechanisms may be devised in order to increase collaboration and coordination. The
more highly differentiated one’s organization is, the greater the need for integration among the different
units.
FAST LEARNING REVIEW
1. Give the importance of organizing in business companies.
2. What is the negative effect of not having division of labor in organizations?
3. Why are “trigger points” important in contingency plans?
4. Is the term “specialization” synonymous with the term “differentiation?” Explain.
Lesson 2
TYPES OF ORGANIZATION STRUCTURES
Definition of Terms An organization structure is a system made up of tasks to be
Vertical Organization accomplished, work movements from one work level to other work
Reference:
Structure– clears out issues levels in the system, reporting relationships, and communication
Organization
related Management passageways that unite the work
andrights,
to authority of ©different
Copyright individual
2016 by Vibal Group Inc.persons and
and Helen Ma.
Textbook for Senior
responsibilities, High School
and reporting groups. The types of organizational structures
F. Cabrera, Anthonyinclude:
DC, Altarejos, and Riaz
Benjamin.
relationships a. vertical structure
Subject: Organization and ManagementQ1 Week 8 Module 8
Subject Teacher: Charlene Esparcia-Cadenas
FIGURE 4.1
Organizational Chart with
Structure
FIGURE 4.1 Sample of
Functional Organization
Owners of private business companies are said to have absolute authority, even if other persons
are appointed as managers in their companies. In corporations, the owners are the stockholders and they
elect a board of directors to manage the organization’s activities. The board has a chairman who acts as
the leader, while the members act as the corporation’s authority figures, responsible for making major
decisions affecting their organizations, subject to the corporation’s constitution and by-law provisions.
Besides the chairman of the board, a chief executive officer (CEO) is appointed to occupy the top post in
the organization pyramid and is personally accountable to the members of the board and other owners for
the organizational performance.
Below the top-level managers are the middle-level managers in charge of departments who, as
earlier mentioned, report to them. Under the middle-level managers are the lower-level managers which
include office managers, sales managers, and supervisors who directly report to the former. Employees
under the lower-level managers also have reporting relationships with their respective department
managers.
A horizontal structure refers to the departmentalization of an organization
into smaller work units as tasks become increasingly varied
and numerous.
Reference:
Organization and Management Copyright © 2016 by Vibal Group Inc. and Helen Ma.
Textbook for Senior High School F. Cabrera, Anthony DC, Altarejos, and Riaz
Benjamin.
Subject: Organization and ManagementQ1 Week 8 Module 8
Subject Teacher: Charlene Esparcia-Cadenas
Types of Department:
Line departments – deal directly with the firm’s primary goods and services; responsible for
manufacturing, selling, and providing services to clients.
Staff departments – support the activities of the line departments by doing research, attending to
legal matters, performing public relations duties, etc. Meanwhile, departmentalization may be
done using three approaches:
o Functional approach – where the subdivisions are formed based on specialized
activities such as marketing, production, financial management, and human resources
management.
o Divisional approach – where departments are formed based on management of their
products, customers, or geographic areas covered.
o Matrix approach – is a hybrid form of departmentalization where managers and
staff personnel report to the superiors, the functional manager, and the divisional manager.
Finally, a network structure is a collection of independent, usually single function
organizations/companies that work together in order to produce a product or service. Such network
organizations are each capable of doing their own specialized work activities independently, like
producing, distributing, designing, etc., but are capable of working effectively at the same time with other
network members.
FIGURE 4.3 Example
of Organizational Chart
with Divisional
Structure
Often their communication is by electronic means where sharing of information is speedy. This results to
their ability to respond at once to their customers’ demands. Organizational structure is needed to keep employees
needed, to build a learning organization and to manage global structural problems.
FAST LEARNING REVIEW
1. What are the types of organization structures? Briefly define each.
2. Summarize how authority operates in the vertical organization structure.
3. Give the difference between a line department and staff department.
4. In your opinion, who have greater responsibilities, the line department managers or the staff
Reference:
Organization and Management Copyright © 2016 by Vibal Group Inc. and Helen Ma.
Textbook for Senior High School F. Cabrera, Anthony DC, Altarejos, and Riaz
Benjamin.
Subject: Organization and ManagementQ1 Week 8 Module 8
Subject Teacher: Charlene Esparcia-Cadenas
department managers? Explain your choice.
Matching Type: Match column A with the correct answer on column B,
write only the letter.
COLUMN A COLUMN B
________ 1. involves assigning different tasks to different A. Integration
people in the organization’s different work
units B. Specialization
________ 2. the process in which different individuals
and units perform different tasks C. Line Departments
________ 3. refers to a selection of independent, single
function organizations that work together to D. Vertical Organization
produce a product/service Structure
________ 4. clears out issues related to authority rights,
responsibilities, and reporting relationships E. Staff Departments
________ 5. support the activities of the line departments by
doing research, attending to legal matters, F. Functional Approach
performing public relations duties, etc.
________ 6. is a hybrid form of departmentalization where G. Division of labor
managers and staff personnel report to the superiors
________ 7. deal directly with the firm’s primary goods and H. Network Structure
services
________ 8. departments are formed based on I. Matrix Approach
management of their products, customers, or
geographic areas covered J. Divisional Approach
________ 9. where the subdivisions are formed based on
specialized activities
________ 10. a collection of independent, usually K. Horizontal Organization
single function organizations/companies Chart
that work together in order to produce a product or
service L. Horizontal Structure
PERFORMANCE TASK
Reference:
Organization and Management Copyright © 2016 by Vibal Group Inc. and Helen Ma.
Textbook for Senior High School F. Cabrera, Anthony DC, Altarejos, and Riaz
Benjamin.
Subject: Organization and ManagementQ1 Week 8 Module 8
Subject Teacher: Charlene Esparcia-Cadenas
COMPILATION
In a short bond paper describe and give 2 examples of the following:
A. Vertical Organization Structure
B. Horizontal Organization Chart
C. Network Structure
Rubric for Compilation:
Content = 30 %
Creativity = 20%
Completeness = 20%
Arrangement = 15%
Overall Appearance = 15%
Reference:
Organization and Management Copyright © 2016 by Vibal Group Inc. and Helen Ma.
Textbook for Senior High School F. Cabrera, Anthony DC, Altarejos, and Riaz
Benjamin.
