Senior

High
School
Quarter 1: Week 5 and 6
Compiled by: Charlene E. Cadenas
ABM/Teacher II

REMINDER: DO NOT WRITE ANYTHING IN THIS LEARNING MATERIAL.

This module aims to guide learners on the basic concepts, principles, and processes
related to business organization, and the functional areas of management based on the
Most Essential Learning Competencies developed by the Department of Education. This
learning material provides the learners with the study of management functions like
planning, organizing, leading, and controlling, and orient the students on the importance
of these functions and the role of each area in entrepreneurship.

General Instruction:

1. Use the module with care. Do not put unnecessary mark/s on any part of the
module.
2. Use a separate sheet of paper in answering the activities.
➢ For the following activities such as Multiple Choice, Identification, True or
False, Matching Type, write your answers immediately.
3. Read the instruction carefully before doing and answering the activity.
4. DO NOT FORGET TO WRITE YOUR NAME. This is an example of how your Answer
Sheet should look like.

5. Check the last page of this module for your Activity Score Sheet and guidelines.

6. Observe honesty and integrity in doing and answering the activities.

7. Begin and end this self-learning module with gratefulness in your life and a smile on
your face.
8. Finish the task at hand before proceeding to the next.
9. RETURN this module to your teacher/facilitator once you are through with it.

“Don’t let what you cannot do interfere with what you can do.”
John Wooden
ORGANIZATION AND MANAGEMENT - GRADE 11
QUARTER 1: WEEK 5

CONTENT STANDARD: At the end of the lesson, the learners demonstrate understanding
of the basic concepts and theories of management.

PERFORMANCE STANDARD: The learners shall be able to apply management theories

and concepts in solving business cases.

LEARNING COMPETENCIES/OBJECTIVES:
At the end of the lesson, the learner must be able to differentiate the phases of
economic development and its impact to business environment.

Environmental Forces and Environmental Scanning

Let us check what you already know.

Matching-Type

Directions: Choose the appropriate WORD in the box and write the CORRECT answer in
the space provided before the number.

Walt Whitman Rostow Five Stages of Economic Development

Taxes Seidel and Moichelle Profit at any cost

_______________________ 1. It is a model that can have extremely negative

implications down to road if corners are cut and poor
decisions are made.

_______________________ 2. According to them, the small and large business drive

economic stability and growth by providing valuable
services, products and tax dollars that directly contribute
to the health of the community.

_______________________ 3. It is used to maintain the infrastructure of a city, state or

country-road bridges, tunnel, public transportation,
libraries and other public buildings and services.

_______________________ 4. He is economist in the London B Johnson administration

from 1966-1969.

_______________________ 5. It is a model on economic development developed by

Rostow

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 Economic development generally refers to the sustained, concerted actions
of policymakers and communities that promote the standard of living and economic
health of a specific area. Economic development can also be referred to as the
quantitative and qualitative changes in the economy (www.abbreviations.com).
Walt Whitman Rostow, also known as W.W. Rostow, was an economist in the
Lyndon B. Johnson administration from 1966-1969. He also published articles and
developed models on economic development. One of his most prominent ideas was the
five stages of economic development. In this model, he suggests that societies go
through five stages of economic development as they develop and grow.
Each of Rostow's five stages builds on the previous stage, becoming more
complex and integrated. Depending on the economic forces at play, the time it takes
to move through each of Rostow's stages varies. We'll begin by discussing each stage in
detail, then we'll talk about how Rostow's model has led to other ways of measuring
development.

Rostow’s Five Stages Model

https://tinyurl.com/yyypvtyo

The Five Stages:

Stage One: Traditional Society
The first stage of Rostow's model and the one in which societies begin, is the
traditional society. The traditional society stage was prevalent prior to the 1700s,
when most societies operated in a relatively stable state and productivity didn't rise
or fall dramatically. Trade existed, such as the spice route between Asia and Europe,
but it was timely, costly, and more of a luxury than a necessity. Technology was very
limited. Humans had access to little more than handmade tools, transportation, and
the printing press. That meant that producing goods was very human capital
intensive, which created large gaps in income inequality. These societies also relied
heavily on agricultural labor because a tremendous amount of labor was required
to grow enough food to sustain the societies.

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Stage Two: Preconditions for Take-Off
There is a period of transition between the traditional society and a society that
takes off, and for a certain time that society is establishing the preconditions for take-
off. These preconditions are mostly marked by an increase in productivity, such as
was found in Europe during the 1700s and 1800s. A number of factors came together
to make productivity increase; for example, population hit a critical mass that made
agriculture take up such a high percentage of labor, which provided opportunities
for the establishment of educational institutions, banks, and a market for luxury
goods.
Stage Three: Take-Off
When the preconditions for take-off are met, a society can take off. Educated
individuals start inventing new processes and tools, and access to capital through
financial markets and banks make it possible to produce goods and services on a
larger scale. This requires a different type of skill set from human laborers, so the
economy shifts from agriculture to production. This increases wages for everyone,
taking the economic structure from a structure of kings and servants to a wealthy
class, middle class, and lower class. A lower class still exists at this stage, either
because of social norms that discriminate against people or simply because the
number of middle-class jobs is fewer than the total number of people.
Stage Four: Drive to Maturity
The next of Rostow's five stages has a general length of time associated with it,
the drive to maturity. According to Rostow, the drive to maturity is about a 60-year
period between the take-off and the final stage, the age of mass consumption.
During this short period, an economy (the collective of all consumers and
producers) can reinvest 10-20% of what it creates into more production. Processes
are improved, quality of life is improved, and technology and new ideas continue
to become more central to society, while the cost of producing the needs for
survival (like food and shelter) becomes a smaller part of the economy. More
importantly, the middle class grows at the quickest rate of any economic class. For
the modern-day U.S., this stage really took place from after WWI, from about 1915,
until around 1980, when the technology era began.
Stage Five: Age of Mass Consumption
After the drive to maturity, an economy reaches maturity and begins the final
stage, the age of mass consumption. Think of the United States, much of Europe,
and some of Asia today, and you can see this stage of development at work. The
quantity and quality of products and services increase. A society or economy in this
stage can export production, bringing in money from other countries that helps the
economy grow larger beyond actual consumption.
According to Seidel, Moichelle, (2019), Small and large businesses drive
economic stability and growth by providing valuable services, products and tax
dollars that directly contribute to the health of the community. They also provide
jobs, strengthening the economic health of each community where a business is
based. Even if a business is headquartered elsewhere, employing people at each
local business contributes to the success of that region, as with the wages they earn,
people buy property, work, shop and otherwise invest in where they live.
Taxes are used, among other things, to maintain the infrastructure of a city,
state or country – roads, bridges, tunnels, public transportation, libraries and other
public buildings and services, including police officers and fire-fighters, all benefit
from tax money collected from individuals and businesses. These services are
essential to the good health and positive qualities of local and national citizens. In
a capitalist society like that of the United States, business growth and increased sales
means collecting more taxes, which can directly translate to better maintenance
and offerings of local infrastructure and services that benefit the community.

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 • The success of business directly affects the world’s economy. At its core, businesses
are designed to serve a need that people have, and to provide trusted goods
and services related to that need. When consumer confidence or trust dips in
business, it isn’t just sales that are negatively affected. This mistrust has a ripple
effect and can result in a decline in a country’s general economy, weakening the
strength of its currency and buying power.

• As businesses focus more and more on providing value to shareholders instead of

directly to consumers, their interests and tactics may not align with the best
interests of the consumer. A “profit at any cost” model can have extremely
negative implications down the road if corners are cut and poor decisions are
made in the name of solely working to increase shareholder profit or are based
purely on greed. No matter how efficiently you make a product or how special
the service is that you deliver, if you lose consumer confidence as a result of your
business decisions, consumers won’t support you by purchasing your goods and
services, and then nobody benefits.

• Business is vital to a country’s economy. Success of businesses can drive the

success of an entire country, including through contributions to the gross domestic
product, or GDP, of a nation, which affects their world standing. If a country
supports businesses with goods and services that are in demand, everyone in the
country benefits. From job creation that results in money being put back into the
community to taxes that help the government smoothly run and provide
maintenance and improvements to the country’s infrastructure, or in other ways
that are helpful for its citizens, there are dozens of ways business success translates
to economic development.

• In addition to providing products and services that citizens and residents want,
economic health can allow for exporting goods and services to others who want
those items, contribute to offering avenues for education and training for citizens,
create healthy business competition and provide additional methods of
strengthening economic development for the country as a whole.

• The role of business in relation to the economy is a pivotal one. Small businesses
boost economic revenue on a smaller scale, but one that is of vital importance,
directly and positively affecting the health, quality of life and purchasing power
of residents in the local community. But small businesses do not always stay small.
Many nationally known brands today got their start as very small businesses run out
of someone’s home or garage. Start-ups can become multinational companies
that can have a huge and positive impact on the global economy, benefiting all
of the company’s employees and the communities in which those businesses
thrive. Apple, Whole Foods, Amazon, and Starbucks were all ideas started on a
small scale that have had incredible, explosive positive impacts not just on the U.S.
economy, but on a global scale.

Activity 1

I. TRUE OR FALSE: Before each statement, write TRUE if the statement is correct
or FALSE if the statement is incorrect.

________ 1. Preconditions for take-off are the second stage of economic

development whereas productivity increased found in Europe
during the 1700s and 1800s.

________ 2. In the age of mass consumption, a society or economy can export

production, bringing in money from other countries that helps the
economy grow larger beyond actual consumption.

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 ________ 3. Success of businesses can drive the success of an entire country,
including through contributions to the gross domestic product, or
GDP, of a nation, which affects their world standing.

________ 4. Traditional society stage was prevalent prior to 1900s, when most
societies operated in a relatively stable state and productivity did
not rise of fall dramatically.

________ 5. Drive to maturity is about 80-year period between the take-off and
the final stage.

II. MULTIPLE CHOICE: Choose the letter of the best answer and write the letter only
in your answer sheet.

____1. In which stage of economy reaches maturity and begins the final stage?
a. Take-Off
b. Traditional Society
c. Age of Mass Consumption
d. None of the above
____2. Who developed and published articles of the Five Stage of Economic
Development?
a. Walt Whitman Rostow
b. Seidel Rostow
c. Moichelle Rostow
d. Seidel and Moichelle Rostow
____3. Which stage had limited technology, and humans had access to little more
than handmade tools, transportation, and the printing press?
a. Take-Off
b. Traditional Society
c. Age of Mass Consumption
d. None of the above
____4. Which stage is about the population hit a critical mass that made
agriculture take up, such as a high percentage of labor, which provides
opportunities for establishing an educational institution, banks, and a
market for luxury goods?
a. Dive to Maturity
b. Modern Society
c. Take-Off
d. Preconditions for Take-Off
____5. Which stage is used to educate the individuals to start inventing new
processes tools, and access to capital through financial markets and
bank make it possible to produce goods and services on a larger scale?
a. Dive to Maturity
b. Modern Society
c. Take-Off
d. Preconditions for Take-Off

____6. Which of the following is used to maintain the infrastructure of a city, state or
country-roads, bridges, tunnels, public transportation, libraries and other
public building and services, including police officers and fire-fighters?
a. Taxes
b. Income
c. Savings
d. None of the Above

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 ____7. Which of the following is a CORRECT arrangement of the Five Stages of
Economic Development?
a. Precondition for Take-off, Take-Off, Traditional Society, Age of Mass
Consumption, and Drive to Maturity
b. Traditional Society, Preconditions for Take-off, Take-off, Drive to Maturity,
and Age of Mass Consumption,
c. Traditional Society, Preconditions for Take-off, Age of Mass Consumption,
Drive to Maturity, and Take-Off
d. Age of Mass Consumption, Preconditions for Take-off, Traditional Society
____8. Which stage really took place after WWI from about 1915 until around 1980,
when the technology era began?
a. Age of Mass Consumption
b. Drive to Maturity
c. Take-off
d. Traditional Society
____9. Which of the following is NOT one of Rostow’s five stage of economic
development?
a. Age of Mass Consumption
b. Drive to Maturity
c. Take-off
d. Technological Society
____10. Which of the five stages of economic development takes place over
approximately 60 years?
a. Age of Mass Consumption
b. Drive to Maturity
c. Take-off
d. Traditional Society

ACTIVITY 2

Direction: Using the Graphic Organizer, give your own idea about the five stage of
economic development and write your answer in a yellow paper.

RUBRICS
4 Expert – Piece is extraordinary, and very informative and well organized
3 Accomplished – Piece has an interesting style, and somewhat informative and
organized
2 Capable – Piece has little style, gives some new information but poorly organized.
1 Beginner - Piece has no style and, and gives no new information and very poorly
Organized

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ORGANIZATION AND MANAGEMENT - GRADE 11
QUARTER 1: WEEK 6

LEARNING COMPETENCY: At the end of the lesson, the learner must be able to discuss
the nature and levels of planning and types of plans.

Definition and Nature of Planning

Environment of the Firm
Planning is the first management function and a very Definition of Terms
essential component of management. Planning – is a process
that involves the setting
The following present the importance of planning:
of the organization’s
• Planning provides direction to all the organization’s human goals, establishing
resources—both managers as well as employees. If they strategies for
know what their firm or their work unit is trying to achieve and accomplishing those
goals, and developing
what activities they should engage in to be able to
plans of action or means
contribute to the achievement of the firm’s set vision,
that managers intend to
mission, goals, and objectives, they would coordinate their use to achieve
actions and collaborate well with one another. organizational goals
• Planning is important because it reduces uncertainty; it Goal-setting – the
compels managers to consider future events that may identification of targets or
affect their company. Anticipating changes and their desired ends that
impact will help managers and other workers to react to management wants to
such changes appropriately. reach

• Minimizing of wastes will result if there is proper Vision – a mental image

of what the organization
coordination of activities due to planning; negative
will be in the future, as
practices, ineffectiveness, and inefficiencies could be easily
desired by the company
detected and can be corrected or eliminated. management and
• Establishing goals and standards during planning may be employees
used for controlling, another necessary managerial Mission – basic purpose of
function. an organization and
range of their operations
Without planning, goals and standards will be absent and
controlling will not be possible. Objectives – steps
needed to attain desired
ends
Relationship of Planning to Individual and
Organizational Performance

Is there a clear relationship between planning and performance? Although

numerous researchers have shown a generally positive relationship between planning
and performance, it would not be advisable, however, to judge that organizations or
individuals who formally plan have better performance compared to those who do not
plan.
There are other environmental factors that also affect individual or organizational
performance, thus, result in reducing the impact of planning to performance. It is safer
to say that the relationship between planning and performance is mainly due to
association of systematic planning with the excellent financial status of the organization
and higher return of investments, higher income, and profit that could be traced to the
excellent performance of its human resources.
Finally, the planning-performance relationship could also be associated with the
time spent in preparing and executing a formal organizational or individual plan. A well-
thought-out plan requires a longer period of preparation, its execution or application

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must also be done for a certain period—months or years—before it begins to affect
performance.

Difference between Goals and Plans

Goals are the targets or desired ends that management wants to reach, while plans are
the actions or means that administrators/managers intend to use to achieve
organizational goals. In short, goals serve as the foundation of planning. Goals precede
plans because knowing the desired targets is a must before establishing plans for
reaching them.

FAST LEARNING REVIEW

1. How important is planning to organization managers??

2. In your own opinion, is there a clear relationship between planning and

performance? Explain.

3. Which comes first, goal-setting or planning? Explain your answer.

4. Explain the relationship between planning and controlling.

Types of Plans Definition of Terms

Organizational Plan – a
Organizational plans can be generally described in terms
comprehensive plan for the
of comprehensiveness, length of time covered or time entire organization
frame, specificity, and frequency of use. covering time frame,
specific purpose,
Comprehensiveness refers to the completeness of
frequency of use, and
planning coverage; for example: it may start from plans
others
that cover the entire organization, called strategic plans,
up to operational plans that apply to an operational Strategic Plan – plans that
area only. The more comprehensive the plan is, the establish the organization’s
better, as this could completely guide both the employer overall goals and apply to
the entire firm; they are
and employee toward the fast achievement of
broad in scope and are the
company goals.
responsibility of the
A plan may be long-term, or covering more than three organization’s President or
years, or short-term, covering one year or less. Top-level Chief Operating Officer,
and several managers
management usually sets the long-range plans, while
lower-level management focuses on short-term goals. Operational Plan – plans
that apply to a particular
Specificity refers to very detailed, clearly defined unit area only; their scope
plans wherein objectives are clearly stated and could is narrow and prepared by
easily be understood. Simple language must be used to lower level managers
facilitate understanding of the plan.

Frequency of use refers to the number of times or

instances a plan may be used. For example, strategical
plans have single use, while operational plans are usually
standing or are used frequently or for several times.
Referring to set plans is often necessary to ensure that all
plans are carried out, thus, hastening the achievement
of the organization’s goals.
FIGURE 3.1 In case of
emergencies, organizations
should have alternative plans.

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Managers meet many planning challenges as they go about their tasks and direct their
company’s affairs. In some organizations, the planning environment is steady, but in
others, it is dynamic, so, different types of plans are made to meet organizational needs.
Different types of planning include the following:

Strategic plans – plans that establish the organization’s overall goals and apply to
the entire firm; they are broad in scope and are the responsibility of the CEO, president,
and general manager of the company.

Operational plans – plans that apply to a particular unit area only; their scope is
narrow; achievement of company goals may not be achieved if operational plans are
not clear.
Long-term plans – plans that go beyond three years; everyone must understand the
organization’s long-term plans to avoid confusion that may divert the organization
members’ attention.
Short-term plans – plans that cover one year or less; such plans must lead toward the
attainment of long-term goals and are the responsibility of the unit/department heads.
Directional plans – plans that are flexible or give general guidelines only; although
flexible and general, these plans must still be related to the strategic plans.
Specific plans – plans that are clearly stated and which have no room for
interpretation; language used must be very understandable
Single-use plans – plans used or stated once only as this applies to the entire
organization; refer to the operational plans of the firm.
Standing plans – plans that are ongoing; provide guidance for different activities
done repeatedly; refer to the identified activities of operational plans.

FIGURE 3.2 Planning, when done

carefully, can lead an individual to
success.

Steps in Planning
Planning is a process and, as such, involves steps—from carrying out its purpose, setting
of goals/objectives, and determining what should be done to accomplish them.
Schermerhorn (2008) gave five steps in the planning process:
1. Define your goals/objectives by identifying desired outcomes/results in very
specific ways.

2. Determine where you stand in relation to set goals/objectives; know your

strengths and weaknesses.

3. Develop premises regarding future conditions; anticipate future events, generate

alternative “scenarios” for what may happen; identify for each scenario things
that may help or hinder progress toward your goals/objectives.

4. Analyze and choose among action alternatives; list and carefully evaluate
possible actions and choose the alternative most likely to accomplish
goals/objectives.

5. Implement the plan and evaluate results; take corrective action and revise plans
as needed.

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 FAST LEARNING REVIEW

1. What are the bases for describing organizational plans?

2. Name at least five types of plans. Which, in your opinion, is the hardest to
prepare?

3. Name at least five types of plans. Which, in your opinion, is the hardest to
prepare?

4. Name the five steps in planning. Is there a particular step that could be
bypassed or eliminated? Explain your answer.

Planning at Different Levels in the Firm

➤ Bateman and Snell (2008)
stated that an effective Different levels in the firm are all engaged in planning;
strategy provides a basis for however, all the resulting plans must be related to one
answering five broad another and directed toward the same goals. Planning at
questions about how
the different levels of management include strategic
organizations will meet its
goals/objectives: planning, tactical planning, and operational planning.
1. Where will we be active? Top-level Management Planning
2. How will we get there?
(Strategic Planning)
3. How will we win in the
marketplace? As earlier mentioned, top-level managers are responsible
4. How fast will we move and for the organization’s strategic planning which involves
in what sequence will we making decisions about the organization’s long-term goals
make changes? and strategies. CEOs, company presidents, or the
5. How will we obtain organization’s senior executives develop and execute the
financial returns? said strategic plan. They, however, do not formulate or
execute the plan on their own; a management team
Definition of Terms supports and helps top-level managers in carrying out
Strategic Planning – is top- these tasks.
level planning which Strategic planning starts with defining the
involves making decisions
organization’s goals/objectives, the major targets related
about the organization’s
to the maintenance of the organization’s stability, and its
long-term goals
organizational culture, values, and growth improving its
Tactical Planning – is productivity, profitability, effectiveness, and efficiency,
middle-level management among others.
planning which refers to
procedures and Middle-level Management Planning
transformation of strategic (Tactical Planning)
goals/plans with specific
goals Tactical planning refers to a set of procedures for
changing or transforming broad strategic goals and plans
Operational Planning – is
into specific goals and plans that are applicable and
lower-level management
planning which involves needed in one unit/portion of the organization. It is
routine tasks repeatedly focused on major actions that must be done by a unit in
done by the firm’s lower order to contribute its share for the achievement of the
level units strategic plan.

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Frontline/Lower-level Management Planning
(Operational Planning)

Operational planning involves identifying the specific procedures and processes

required at the lower levels of the organization. This also involves routine tasks or tasks
repeatedly done by the organization’s lower level units.

Integrating Strategic, Tactical, and Operational Planning

The present organizational planning is not as rigid as the hierarchical planning earlier
discussed in this chapter. Managers in different hierarchical levels of the organization may
contribute their ideas or suggestions in developing the strategic plan, a task originally
assigned to the senior executives. Also, frontline managers may make decisions that
could influence strategy formulation in the higher levels. All plans, however, must be
directed toward the achievement of the organization’s strategic goals.
Finally, CEOs or company presidents must see to it that all communication lines in
their organization are open, that there is excellent dissemination of information to all
levels, and they are aware of everything that is happening in their firm.
FAST LEARNING REVIEW

1. Name and define the three planning types that take place in the three
hierarchical levels of managerial planning.

2. If the strategic goal of your organization is the improvement of its profitability,

what routine tasks could be included in your operational planning? Name some
of these tasks.

3. Describe present-day organizational planning. Is it rigid or flexible? Explain your

answer.

4. Explain the relationship between planning and communication.

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ACTIVITY 1
COLUMN A COLUMN B

________ 1. basic purpose of an organization A. Vision

and range of their operations
________ 2. provides direction to all the B. Objectives
organization’s human resources—
C. Specificity
both managers as well as
employees.
D. Goals
________ 3. steps needed in order to attain
desired ends E. Frequency
________ 4. targets or desired ends that
management wants to reach F. Mission
________ 5. plans that establish the
organization’s overall goals and G. Organizational Plan
apply to the entire firm
________ 6. refers to very detailed, clearly H. Specific Plans
defined plans wherein objectives
are clearly stated and could easily I. Planning
be understood
J. Comprehensiveness
________ 7. refers to the completeness of
planning coverage
K. Strategic Plan
________ 8. plans that are clearly stated and
which have no room for L. Operational Plans
interpretation; language used must
be very understandable
________ 9. plans that apply to a particular unit
area only
________ 10. mental image of what the
organization will be in the future

ACTIVITY 2

A. Instead of using traditional planning and goal-setting methods there are

organizations that use the management by objectives (MBO) system.
Research about this topic using the Internet. Define MBO and explain how
this could be used in planning and goal setting and its relation to employee
performance and organizational productivity. (Indicate the link)

B. Research on the characteristics of well-written goals. Name at least five

characteristics.

REFERENCES

Vibal Group Inc and Helen Ma. F. Cabrera, Anthony DC. Altarejos and Riaz Benjamin.
Nature and Concept of Management. Organization and Management Textbook

Vibal Group Inc and Helen Ma. F. Cabrera, Anthony DC. Altarejos and Riaz Benjamin.
Nature and Concept of Management. Organization and Management Teachers
Manual
Division of City Schools Manila, and Mamerto T. Goneda,Jupiter Q. Whiteside, Farida F.
Tallud. Module 3. Organization and Management

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Please remove this PAGE and ATTACH it in front of your answer sheets.

ACTIVITY SCORE SHEET

This will serve as your guide on what are the following activities to answer. Please fill in the
necessary information on the table.

NAME: WEEK NO.

SECTION: DATE:

SUBJECT:

SUBMITTED
WEEK NO. ACTIVITIES POINTS SCORE
(✓)

Activity 1 15
5

Activity 2 20

Activity 1 - A 50
6
Activity 1 - B 50

__________________________________
(STUDENT’S SIGNAGURE)

REMARKS:

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_____________________________________________________________________________________
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Checked by:

CHARLENE E. CADENAS DATE: __________________

Subject Teacher