ORGANIZATION AND MANAGEMENT

Senior High School

Name: _________________________________________ Quarter 1 Week 7__________
Section: ________________________________________ Date: ___________________

NATURE AND STRUCTURES OF AN ORGANIZATION

BACKGROUND INFORMATION FOR LEARNERS

In an organization that is seeking to continue aiming and accomplishing desired goals

will never meet it effectively and efficiently without coordinating and overseeing the work
performance of individuals working together in organizations continuously. After planning,
organizing follows. The goals and objectives established during planning will all go to waste
without effective organizing, through the development of a designed structure of roles for
effective performance. It requires linking of decision and communication work units to
coordinate efforts toward the organizational goals and objectives that were set earlier. To
function well, organization structures and their specific roles must be understood by all
members of the organization. Rules and regulation principles must also be put into practice.

NATURE OF ORGANIZATION
Formal Organization – It is a system of well-defined jobs, each bearing a definite measure
of authority, responsibility and accountability
Informal Organization - It is a network of Interpersonal Relationship that arises when people
associate with one another.

DIFFERENTIATION OF THE ORGANIZATION’S INTERNAL ENVIRONMENT

Division of labor involves assigning different tasks to different people in the organization’s
different work units. Breaking down of jobs into simple & repetitive tasks

Advantages:
• Repetition Improves performance
• Time saving
Disadvantages:
• Lack of Specialization
• Not suitable for large scale organization

Specialization is the process in which different individuals and units perform different tasks.

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.

To function well, organization structures and their specific roles must be understood
by all members of the organization. A system that outlines how certain activities are directed
in order to achieve the goals of an organization is called an organizational structure. These
activities can include rules, roles, and responsibilities. The organizational structure also
determines how information flows between levels within the company. Having an
organizational structure in place allows companies to remain efficient and focused.

FOUR TYPES OF ORGANIZATIONAL STRUCTURE

1. Functional Organization Structure - Under a

functional organization structure, people who do
CEO
similar tasks are grouped together based on
specialty. For example, all the accountants are
placed in the finance department and so on for marketing sales production
the marketing, operations, senior management
and human resources departments. staff staff staff staff staff staff

Figure 1. Functional Structure Organizational

The advantages of this kind of structure Chart
include quick decision making, because the Illustrator: Diana Pingol
group members can easily communicate.
They can also learn from each other, since
they already possess similar skill sets and
interests.

President
2. Divisional Structure - In a divisional
structure, your company groups workers into
teams based on the products or projects that Product A Product b Administrative

meet the needs of a certain type of customer.

Human
Each division contains all the necessary Manufacturing Manufacturing
Resources
resources and functions within it, departments
are formed based of their products, customers, Accounting Accounting Accounting
or geographic areas covered.
Marketing Marketing Procurement

Figure 2. Divisional Structure Organizational Chart

Illustrator: Diana Pingol

3. Flat Organizational Structure- A flat

organization has an organizational structure President
with few or no levels of middle management
between staff and executives. It flattens the vp vp vp
hierarchy and chain of command and gives its
employees a lot of autonomy. Companies that staff staff staff staff staff staff
use this type of structure have a high speed of
implementation.
Figure 3. Flat Structure Organizational Chart
Illustrator: Diana Pingol
4. Matrix Organizational Structure - Matrix
management is an organizational structure in
which each individual report to more than one
supervisor. An employee working for a matrixed
company, for example, may have duties in both
sales and customer service. In a matrix
structure the team members are given more
autonomy and expected to take on more
responsibility for their work.

Source:https://pingboard.com/blog/types-business-
organizational-structures/

A company that practices putting an organizational structure makes an operation more

effective and efficient. By putting the organizational structure in place, the firm can decide
salary grades and ranges for each position. Having a structure in place can help
with efficiency and provide clarity for everyone at every level. That also means each and every
department can be more productive, as they are likely to be more focused on energy and time.

Learning Competency with Code:

Upon completion of this activity, the learners will be able to analyze the nature of
organizations and types of organization structures (ABM_AOM11-Ih-j-15-16)

Activity 1
Direction: Write True if the statement is correct and False if the statement is wrong. Write
your answer on the space provided.

_______1. Having an organizational structure in place not allows companies to remain

efficient and focused.
_______2. Functional structure helps each member employee to focus on their skills and
interest.
_______3. A marketing officer may serve also as a sales agent in a matrix organizational
structure.
_______4. Planning can be maintain even organizing is not practice.
_______5. Division of labor may develop performance by means of repetitive works.
_______6. Coordination may take place if the employee knows the hierarchy of authority of
work.
_______7. Organizational structure helps company in deciding salary and wages of its
employee.
_______8. Knowing your job specifications and levels of authority can’t boost employee’s
confidence in work.
_______9. Putting an organizational structure allows a company remains focused and
efficient.
_______10. Specialization in works may not improves employees work performance.
Activity 2
Directions: Matching type. Match the statement in the Column A to the choices in Column
B. Write the letter of your answer in the space provided. Write the answer in capital letters
only.

COLUMN A COLUMN B
___1. An organizational structure in which each A. Formal Organization
individual report to more than one manager.
B. Division of Labor
___2. No levels of middle management between staff
C. Functional Structure
and executives
D. Organizing
___3. It outlines how certain activities are directed in
order to achieve the goals of an organization. E. Matrix Structure

___4. Structure of management in which people who do F. Organizational Structure

similar tasks are grouped together based on specialty.
G. Flat Structure
___5. It is the braking down of jobs into simple &
repetitive tasks. H. Divisional Structure

___6. It involves the collaboration and coordination of its I. Informal Organization’

different work units or work divisions.
J. Specialization
___7. It is a network of interpersonal relationship that
K. Coordination
arises when people associate with one another.
L. Integration
___8. This departments are formed based of their
products, customers. M. Organizational Chart

___9. It is a system of well-defined jobs, each bearing a

definite measure of authority, responsibility and
accountability.

___10. It 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.
Activity 3
Direction: Construct an organizational chart using official members of your barangay officers
using Functional Organizational Structure. Put your output inside the box.

Guide Questions:

1. Based on the organizational chart, do you think that the line of authority is clearly
designated? Explain your answer.
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2. Why is it important to practice using an organizational chart?

_________________________________________________________________________
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3. How does functional organizational structure will benefit each member in this organizational
chart?
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Activity 4
Direction: Answer the following questions using your own ideas. Write your answer in the
space provided. (15 points each)

1. Why should an organization be encouraged to maintain having an organizational

structure? Explain your answer.
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2. If the division of labor is not clearly distributed to the employees, what would be the
possible effect? Cite an example.
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3. Discuss the difference between the four organizational structure using your own ideas.
_____________________________________________________________________
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4. How do organizing may contribute to the success of a company?

_____________________________________________________________________
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Rubrics

In evaluating answers in Activity 3(Guide Questions), and Activity 4, this would be the
basis. Highest score for each parameter of evaluation is 5 and the lowest point will be 1.

Criteria 1 2 3 4 5

1. The ideas are significant and relevant to

the topic that is being asked I the Guide
Questions.

2. The words, sentence construction,

grammar, punctuations, and correct
spelling of words were observed in the
construction of the output.

3. The ideas were presented in a way that

is easy to understand but with
creativeness, confidence, and
knowledge-based.
Reflection:

Complete the statement below

Things that I have learned in this lesson are

_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________

It helps me in understanding that

_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________

References:

Ma. Helen F. Cabrera, Anthony DC. Altajeros, Ph.D, Benjamin Riaz, Organization and
Management, ed. Clarence Darro B. Del Castillo Quezon City: Vibal Group Inc., 2016, 3-8.

“Four Basic Elements of Organizational Structure,” Chron, updated February 12, 2019,
https://smallbusiness.chron.com/four-basic-elements-organizational-structure-288.html

“Organizational Structure”, Investopedia, updated July 1, 2020,

https://www.investopedia.com/terms/o/organizational-structure.asp

“Types of Organizational Structures”, Pingboard, updated May 24, 2019,

https://pingboard.com/blog/types-business-organizational-structures/

Answers’ Key

Activity 1 Activity 2
Activity 3 (15 points) Answers may vary
1. False 1. E
2. True 2. G Guide question Answers may vary
3. True 3. F
4. C
4. False Activity 4 (15 points) Answers may vary
5. B
5. True 6. L
6. True 7. I
7. True 8. D
8. False 9. A
9. True 10. K
10. False

Prepared by:

DIANA S. PINGOL
Teacher I, SMHS