Organizational

Management
Quarter 1 – Module 5:
Phases of economic development and
its impact to business environment
Organizational Management – Grade 11
Alternative Delivery Mode
Quarter 1 – Module 5: Phases of economic development and its impact
to business environment.

First Edition, 2020

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 Organization and
Management
Quarter 1 – Module 5:
Phases of economic development and
its impact to business environment.
Introductory Message

For the facilitator:

Welcome to the Organizational Management – Grade 11 Alternative Delivery

Mode (ADM) Module on Phase of economic development and its impact to business

environment.

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.

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For the learner:

Welcome to the Organizational Management – Grade 11 Alternative Delivery

Mode (ADM) Module on Phase of economic development and its impact to business
environment.

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.

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 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!

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 What I Need to Know

This module is designed and created to help you as an adolescent to be

prepared for adult life by means of knowing various developmental tasks according
to development stages. This module also helps you to realize how to face the
challenges during adolescence and help you to clarify and manage the demands of
teen years.

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

1. Differentiate the phases of economic development and its impact to business

environment;

2. Understand the phases of economic development and its impact to business

environment; and

3. Appreciate economic development that leads to the different impact to

business environment.

What I Know

Read the text below. Write the word you circled under the correct headings in
the chart. Classify these words to which they are properly belong.

Lucia B. Abelda a Senior High School Student who loves to study the subject
Organization and Management from Accountancy and Business Management
Strand. Prior to her decision to pursue ABM strand, she enjoys watching news about
Economy, Management and Organization of the different firms. She wants to expand
her knowledge about these particular areas because she was still in Junior High and
there are terms that she couldn’t understand. Upon learning different areas of ABM
she is happy while studying because she continue to understand the phases of
Economic Development. She believes that the external environment has something
to do with the economic development. However, the thinking of all the employees
can affect the decision making of their leaders, this is the internal environment that
the organization needs to survive and grow. These organizations –sole proprietorship,
partnership and corporation has impact to the economy. Lucia also study that the
phase of the economy –Human Development Index, Availability of benefits provided
by science and technology and the societal improvement of the opportunities and
general welfare of its member. These phases can keep the organization at their feet

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or make them profitable, depends also on the environment of their business or
industry. Lucia is fond of Organization and Management as she can study and at
the same time learn while enjoying.

BUSINESS ENVIRONMENT ECONOMIC DEVELOPMENT

1–A 2 –B 3–C 4–D 5–E 6–F 7–G 8–H 9–I 10 – J

11 – K 12 – L 13 – M 14 – N 15 – O 16 – P 17 – Q 18 – R 19 – S 20 – T

21 – U 22 – V 23 – W 24 – X 25- Y 26 – Z

From the table above. Carefully choose the letter that correspond to the
number show as hint to the question below.

1. This is a total process which includes not only economic growth or the increase in the
given amount of goods and services produced by the country’s economy, but also considers
the social, political, cultural and spiritual aspects of the country’s growth.

5 3 15 14 15 13 9 3 4 5 22 5 12 15 16 13 5 14 20

2. Increase in the given amount of goods and services produced by the country’s earning.

5 3 15 14 15 13 9 3 7 18 15 23 20 8

3. Are the distinct stages involved in the total process of economic development in a
particular country.

5 3 15 14 15 13 9 3 16 8 1 19 5

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4. These refer to business organizations with few departments, centralized authority with a
wide span of control, and with few formal rules and regulations.

19 9 13 16 12 5 2 21 19 9 14 5 19 19

15 18 7 1 14 9 26 1 20 9 15 14

5. Where the organization as a whole is made up of work teams (small, but focused) that
work together to achieve the organization’s purposes; popular in collectivist culture.

20 5 1 13 19 20 18 21 3 20 21 18 5 19

Lesson The phases of economic

1 development and its impact
to business environment
Business Environment refers to the factors or elements affecting a business
organization. It may be divided into the External and Internal Business
Environments. The External Business Environment includes the factors and
elements outside the organization which may affect its performance, either positively
or negatively while the Internal Business Environment refers to the factors or
elements within the organization which may also affect its performance, either
positively or negatively. The environment in which a business operates is a major
consideration in determining an organization’s design or structure. Considerations
such as uncertainty, procurement and competition are linked with the external
environment. A company’s strategy and approach to operations must also be aligned
with the limitations of its external environment as well as its internal environment.

PHASES OF ECONOMIC DEVELOPMENT

Although material wealth accumulation is among the concerns of genuine

economic development, its greater concern is the total improvement of the quality of
people’s live. This, in turn, is related to sustainable economic development issues in
a country which greatly influences business management.

Sustainable economic development ensures that the present needs of a

particular generation are fully met without endangering the ability of future
generations to also fully meet their own needs. Business managers must be

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conscious of their decisions to avoid the abuse of ecological elements – air, water,
and soil – as this will threaten sustainable economic development.

Different countries have different management strategies to encourage

ecological respect and prevent damage to the environment. Common environmental
and ecological problems that have to be dealt with by business manager include
destruction of natural habitats, depletion of clean water resources, urban, industrial
and agricultural pollution and many more.

In September 2000, world leaders gathered for the Millennium Summit and
this adopted the United Nations (UN) Millennium Declaration. By doing so, they had
committed their nations to a global partnership toward the reduction of extreme
poverty and the pursuit of the Millennium Development Goals (MDG).

The MDGs, according to the UN, are “the world’s time-bound and quantified
targets for addressing extreme poverty in its many dimensions – income poverty,
hunger, disease, lack of adequate shelter and exclusion – while promoting gender
equality, education and environmental stability.” The deadline for the fulfillment of
the MDGs was set for 2015.

The following are the MDGs:

1. Eradicate extreme hunger and poverty.

2. Achieve universal primary education.
3. Promote gender equality and empower women.
4. Reduce child mortality.
5. Improve material health.
6. Combat HIV/AIDS, Malaria and other diseases.
7. Ensure environmental sustainability.
8. Develop a global partnership for development.

Meanwhile, the National Economic and Development Authority (NEDA) has laid
out the Philippine Development Plan (PDP) 2011-2016, which “adopts a framework
of inclusive growth, which is high growth that is sustained, generates mass
employment and reduces poverty.” The PDP is focused on the following areas:

1. Pursuit of Inclusive Growth.

2. Macroeconomic Policy.
3. Competitive Industry and Services Sectors.
4. Competitive and Sustainable Agriculture and Fisheries Sector.
5. Accelerating Infrastructure Development.
6. Resilient and Inclusive Financial Sector.
7. Good Governance and the Rule of Law.
8. Social Development.
9. Peace and Security.

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 10. Conservation, Protection and Rehabilitation of the Environment and
Natural Resources.

It is evident from the PDP focused areas that they cover not only the economic
and industrial goals of the Philippines but also the social, environmental and peace
and security aspects.

The MDGs and the PDP can help guide the management of businesses in the
Philippines setting. In particular, the PDP must be taken into consideration in order
to deem management as appropriate or country-specific.

Another potential means for economic growth and development is the planned
integration of the 10 Southeast Asian nations in 2015 which include the Philippines.
The association of Southeast Asian Nations (ASEAN) Economic Community (AEC)
could help the Philippines achieve its goal of inclusive growth that creates jobs and
reduces poverty.

According to a joint study by the International Labor Organization (ILO) and

the Asian Development Band (ADB) titled “ASEAN Community 2015: Managing
Integration for Better Jobs and Shared Prosperity.” Released in October 2014, the
success of the AEC lies in decisive actions taken by member states regarding policy
recommendations, strengthening regional cooperation that may bring about
structural changes, improvement of business and job opportunities and job quality,
enhancement of skills boosting productivity, better wages and management of labor
development are shared among member countries and sectors.

Since the AEC is envisioned to become a single common market and

production base for an estimated 600 million people of different nationalities, it
means freer flow of goods, services, investments and labor. The study concluded that
“new opportunities for growth and prosperity may emerge, but the challenge is to
ensure that growth is inclusive and prosperity is shared.”

Obviously, managers of businesses here in the Philippines must be concerned

about the findings of the study, as these are new challenges for them. The
improvement of management style and the skills training and education of their
human resources are needed in order to cope with the possible changes that will be
brought about by the ASEAN integration in 2015.

ECONOMIC DEVELOPMENT – is a total process which includes not only

economic growth or the increase in the given amount of goods and services produced
by the country’s economy, but also considers the social political, cultural and
spiritual aspects of the country’s growth.

ECONOMIC DEVELOPMENT PHASES – are the distinct stages involved in the

total process of economic development in a particular country.

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 These include 1. economic growth, 2. improvement of the Human
Development Index (HDI), 3. availability of benefits provided by science and
technology, and the 4. societal improvement of the opportunities and general welfare
of its members.

1. ECONOMIC GROWTH – increase in the given amount of goods and services

produced by the country’s earning.

2. IMPROVEMENT OF THE HUMAN DEVELOPMENT INDEX (HDI) is a summary

measure of average achievement in key dimensions of human development: a long and healthy life,
being knowledgeable and have a decent standard of living.

What’s In

Identify the different organizations listed below to which form of government these
statement or phrase belong.

FORMS OF GOVERNMENT
1.ABS-CBN that owned by the LOPEZ
group of companies

2. Aling Nena’s Sari Sari Store

3. Joey and Jackie’s tindahan
4. Mang Tacio LPG station
5. Marc and Lester Carinderia

Notes to the Teacher

Ang modyul na ito ay naghahanda sa mga mag-aaral upang
makalikha at mailarawan ang mga hugis ng katawan ayon sa kung
paano ito ginagawa o inilalahad sa isang larawan.

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 What’s New

CROSSWORD : Find and cross out the words written below.

ECONOMIC DEVELOPMENT

VISUAL BUSINESS ORGANIZATION

NON-PROFIT ORGANIZATIONS

PROJECT BUSINESS STRUCTURES

MATRIX BUSINESS ORGANIZATIONS

ECONOMIC GROWTH

TEAM STRUCTURES

COOPERATIVE

PARTNERSHIP

CORPORATION

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11
 What is It

FORMS OF BUSINESS ORGANIZATION

The form of a business organizations may depend on its purpose, nature of

operations and resources. However, a business organization’s form may change with
the changing times and the demands they present.

CHANGING FORMS OF BUSINESS ORGANIZATION

Change is constant and organizations change to undergo various changes to

ensure effectiveness, efficiency and relevance in the world of business.

Business organizations may be traditional (simple, functional, divisional,

profit or non-profit) or open/flexible in form according to Robbins and Coulter
(20019).

Simple business organization – these refer to business organizations with few

departments, centralized authority with a wide span of control, and with dew formal
rules and regulations.

These are easy to manage because of their simple form. However, change of
form follows as the company expands its operations.

Functional business organizations – these pertains to business organizations

that group together those with similar or related specialized duties that group
together those with similar or related specialized duties that introduce the concept
of delegation of authority to functional manager, sales manager or financial manager
but allow CEO s to retain authority for strategic decisions.

Divisional business organizations – these are business organization made up

of separate business units that are semi-autonomous or semi0independent, with a
division head responsible for his or her unit’s performance.

In other words, each division has its own functional organization and its own
general manager; however, the central headquarters management maintains
responsibility for the delineation of organizational goals of the individual divisions.

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 Profit business organizations – these are business organization design for the
purpose of achieving thief organizations’ mission, vision, goal, and objectives and
maintaining their organizational stability through income generation and profit-
making activities. Immediate revenues or cost factors account for their success or
failure.

Nonprofit business organizations – these are business organizations designed

for the purpose of achieving their organizations’ mission, vision, goals and objectives,
providing service to clients without expecting monetary gains or financial benefits for
their endeavors Their success or failure may be measured by the high or low
evaluation scores they obtain.

Open/flexible business organizations – these are formed to meet today’s

changing work environment.

Business organizations affect and are affected by the environment; therefore,

change becomes inevitable. Other forms of business organizations:

1. Team Structures – where the organization as a whole is made up of work

teams (small, but focused) that work together to achieve the organization’s
purpose; popular I collectivist culture.
2. Matrix business organizations – those which assig experts or specialists
belonging to different functional departments to work together on one or
more projects; exhibit dual reporting relationship in which managers’
report to two superiors – the functional manager and the divisional
manager.
3. Project business structure – a business organizational form with a flexible
design, where the employees continuously work on projects assigned to
them; projects may be short-term or long-term and members disband
when the project is completed.
4. Virtual business organization – made up of a small group of full-time
workers and outside experts who are hired on a temporary basis to work
on assigned projects; members usually communicate online

Other basic forms of business that are legal in the Philippines are single
proprietorship, partnership, corporation and cooperative. Different organizations

13
have different preferences as to the business form that is appropriate for their needs
and the purpose of their existence. Managers, therefore, must be creative in finding
ways to structure or design and organize work in their respective firms.

What’s More

Distinguish the phrase that is written inside the box to where it is properly
belongs. Study the table below write the phrase you distinguished and choose
on which row you will put it.

1. Economic Growth 6. Human Development Index

2. Societal Improvement of 7. Team Structures
the Opportunities 8. Project Business Structure
3. Divisional Business Organization 5. Simple Business Organization
4. Profit Business Organization 10. Virtual Business Organization
9. Boundaryless Business Organization

Phases Of Economic Development Forms of Organization

What I Have Learned

Read each statement carefully. Underline the phrase or words that you
learned about the phases of economic development.

Johnna is a Senior High Student that hates studying. She only chooses ABM
because her best friend Mimi wanted to become a Certified Public Accountant
someday. At first she has no interest in ABM strand at all, however as she began to
study and learn, she noticed the humble beginning of every entrepreneur and the
struggle and hardship they survived just to put their business on top and provide
the best service or product to their end-user. At the same time these organizations
are helping and boosting our economy, they also provide employment and
opportunities to people. The forms of business like partnership, corporation, sole

14
proprietorship and cooperative are some of the forms of our business industries.
Also there is the team structures where the organization as a whole is made up of
work teams that work together to achieve the organization’s purpose; popular in
collectivist culture. As the day goes by she begins to develop an interest in
organization. She always asked her teacher why and how organization works, she
begin to read the news about Human Development Index, Availability of benefits
provided by science and technology and the societal improvement of the
opportunities and general welfare of its members. She and Mimi always bond
together, aside from being best friend they are also neighbors. Every morning they
walk to school while having a conversation about simple business organization,
functional business organization, divisional business organizations, profit business
organizations, nonprofit business organizations. Upon reaching their school they’ll
talk to their classmates and dreaming of becoming an entrepreneur, CPA, manager
etc. At home Johnna’s parents is impressed because Johnna always talk to them
with enjoyment what she did in class, what she read and study. Johnna’s favorite
topic are matrix business organization, and boundaryless business organization.
Johnna likes to study and wants to become a Successful Entrepreneur someday.

What I Can Do

Write TRUE if the statement is correct and FALSE if the statement is

wrong. Write your answer on the blank provided to each number.

1. Susan told Mark that the meaning of Simple Business Organization

refers to business organizations with few departments, centralized authority with a
wide span of control and with few departments, centralized authority with a wide
span of control, and with dew formal rules and regulations.

2. Mercy argue with her classmates because on a debate Anthony refers

to the meaning of open/flexible business organizations that it is a business
organizations designed for the purpose of achieving their organizations’ mission,
vision, goals and objectives, providing service to clients without expecting monetary
gains or financial benefits for their endeavors.

3. Rima asked her seatmate if the meaning of simple business

organizations refers to business organizations with few departments, centralized
authority with a wide span control, and with few formal rules and regulations and
her seatmate agreed with her.

4. Lita told her parents that economic growth includes in the Phases of
Economic Development.

5. Kyla told her friends that cooperative is a form of organizations.

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 Assessment

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

1. Where the organization as a whole is made up of work teams (small,

but focused) that work together to achieve the organization’s purpose; popular I
collectivist culture.

2. A business organizational form with a flexible design, where the

employees continuously work on projects assigned to them; projects may be short-
term or long-term and members disband when the project is completed.

3. These are business organizations designed for the purpose of

achieving their organizations’ mission, vision, goals and objectives and maintaining
their organizational stability through income generation and profit-making activities.
Immediate revenues or cost factors account for their success or failure.

4. These refer to business organizations with few departments,

centralized authority with a wide span of control, and with few formal rules and
regulations.

5. These are business organizations made up of separate business

units that are semi-co autonomous or semi-independent, with a division head
responsible for his or her unit’s performance.

6. Those which assign experts or specialists belonging to different

functional department to work together on one or more projects; exhibit dual
reporting relationships in which managers’ report to two superiors – the functional
manager and the divisional manager.

7. A business organization whose design eliminates vertical,

horizontal, or external boundaries and is described to be flexible and unstructured;
there are no barriers to information flow and, therefore completion of work is fast.

8. These pertain to business organizations that group together those

with similar or related specialized duties that introduce the concept of delegation of
authority to functional managers like the personnel manager, sales manager, or
financial manger but allow CEOs to retain authority for strategic decisions.

9. These are business organizations designed for the purpose of

achieving their organizations’ mission, vision, goals and objectives, providing service
to clients without expecting monetary gains or financial benefits for their endeavors.

10. These are formed to meet today’s changing work environment.

11. Is a total process which includes not only economic growth or

the increase in the given amount of goods and services produced by the country’s
economy, but also considers the social, political, cultural and spiritual aspects of the
country’s growth.

16
 12. Increase in the given amount of goods and services produced by
the country’s earning.

13. Made up of a small group of full-time workers and outside experts

who are hired on a temporary basis to work on assigned projects; members usually
communicate online.
14. What does UN means

15. What does MDG means

Additional Activities

Supply the words given in the box, to complete the statement below.

Divisional Business Organization Simple Business Organizations

Economic Growth Functional Business Organization Team Structures

Economic Development Phase Profit Business Organization Non Profit Business Organization

1. business organizations are business organizations made up of

separate business units that are semi-autonomous or semi-independent, with a
division head responsible for his or her unit’s performance.

2. is an increase in the given amount of goods and services produced by

the country’s earning.

3. Are the distinct stages involved in the total process of economic

development in a particular country.

4. These are business organizations designed for the purpose of

achieving their organizations’ mission, vision, goals and objectives, providing service
to clients without expecting monetary gains or financial benefits for their endeavor.

5. Where the organization as a whole is made up of work teams (small,

but focused) that work together to achieve the organization’s purpose; popular in
collectivist culture.

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Answer Key

:weN sat’Wh

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19
References
DepEd (2016). Organization and Management

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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]