ORGANIZATION & SENIOR

HIGH
MANAGEMENT SCHOOL

Self-
ROLES OF BUSINESS Learning
Module
ORGANIZATION IN ECONOMY 10

Quarter 1
Organization & Management – Grade 11
Quarter 1– Self-Learning Module 10: ROLES OF BUSINESS IN ECONOMY

First Edition, 2020

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 Organization & SENIOR

Management HIGH
SCHOOL

Self-
Learning
Module
10

ROLES OF BUSINESS ORGANIZATION Quarter 1

IN ECONOMY

3
Introductory Message

For the facilitator:

Welcome to the Organization & Management for Grad 11 Self-Learning

Module on Roles of Business Organization in Economy.

This Self-Learning Module was collaboratively designed, developed and

reviewed by educators from the Schools Division Office of Pasig City headed by its
Officer-in-Charge Schools Division Superintendent, Ma. Evalou Concepcion A.
Agustin, in partnership with the City Government of Pasig through its mayor,
Honorable Victor Ma. Regis N. Sotto. The writers utilized the standards set by the K
to 12 Curriculum using the Most Essential Learning Competencies (MELC) in
developing this instructional resource.

This learning material hopes to engage the learners in guided and

independent learning activities at their own pace and time. Further, this also aims
to help learners acquire the needed 21st century skills especially the 5 Cs, namely:
Communication, Collaboration, Creativity, Critical Thinking, and Character 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. Moreover, 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 Organization & Management Self-Learning Module on Roles

of Business Organization in Economy.

This Self-Learning 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 material while
being an active learner.

This module has the following parts and corresponding icons:

Expectations - This points to the set of knowledge and skills

that you will learn after completing the module.

Pretest - This measures your prior knowledge about the lesson

at hand.

Recap - This part of the module provides a review of concepts

and skills that you already know about a previous lesson.

Lesson - This section discusses the topic in the module.

Activities - This is a set of activities that you need to perform.

Wrap-Up - This section summarizes the concepts and

application of the lesson.

Valuing - This part integrates a desirable moral value in the

lesson.

Posttest - This measures how much you have learned from

the entire module.

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MODULE ROLES OF BUSINESS ORGANIZATION
10
IN ECONOMY

EXPECTATIONS
At the end of the lesson, you are expected to:

1. identify what is the meaning of economy;

2. recognize the roles of business organization in the economy; and
3. analyze and appreciate the importance of the roles of business
organization in the economy.

PRETEST
Directions: Read the statements carefully and fill the blank with the best
answer.

1. Business plays a ________________________ in the economic development

and wealth of a country.
2. Business employ different factors of ________________________.
3. The principle of creative ________________________.
4. An _________________is a system of making and trading things of value.
5. Investing in ______________ and new technology.

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 RECAP

Let’s take a recap!!

Directions: Match column A with column B. Write your answer on the line before
the number.

Column A Column B

________ 1. A business organizational form with A. Divisional Business Organization

a flexible design, where the employees B. Project business organization
continuously work on projects assigned to C. Profit business organization
them. D. Boundaryless business organization
________ 2. Exhibit dual reporting relationships E. Matrix business organizations
in which the manager report to two superiors.
________3. Business organizations made up of
separate business units that are semi-
independent.
________4. Business organization design
eliminates vertical, horizontal, or external
boundaries, and is described to be flexible and
unstructured.
_______ 5. Maintaining their organizational
stability through income generation and profit-
making activities.

LESSON
Business plays a vital role in the economic development and wealth
of a country. Success in business translates to the economic well-being of a
company and its residents through job creation and offering improved quality of life
for the country’s citizens. Here, we look into several aspects that relate to the
importance of business in today’s economic environment and society.
(https://bizfluent.com/info-7745795-roles-business-organizations-economic-development.html)

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 But before we continue our today’s discussion, let
us define first what is an economy?

An economy is a system of making and trading things of

value. It is usually divided into goods and services. It
assumes there is a medium of exchange, which in the
modern world is a system of finance. This makes trade
1https://www.google.com/url?sa=i&url possible. ( https://simple.wikipedia.org/wiki/Economy).
=https%3A%2F%2Fwww.discovermagazi
ne.com%2Fthe-sciences%2Fscience-and-
the-world-
economy&psig=AOvVaw2WmoS55XEW

ROLES OF BUSINESS ORGANIZATION IN THE ECONOMY

1. Businesses employ different factors of production.

Businesses employing workers to produce goods and services. By employing

labor, businesses pay wages creating a flow of income to households, which
ultimately can be spent by households on goods produced by different
businesses.

2. Developing new products.

In the pursuit of profit, businesses will try to respond to consumer

preferences and develop new goods and services. For example, in response to
increased demand for coffee, firms have opened new stores to cater to the new
demand. Also, businesses try to anticipate what consumers would like to be
developing new products they had not assumed were possible. For example,
Apple developing the iPod and iPhone rather than trying to improve the old CD
player. It can also involve offering new services such as home delivery by
supermarkets.

3. Investing in the capital and new technology.

Businesses will seek to make the most profitable use of capital and
labor. This will involve developing new technology and working practices to
improve productivity in the economy. Through seeking to cut costs, and invest
in new capital, it contributes to higher productivity and ultimately higher living
standards. Without the process of innovation and investment, economies would
be more stagnant with slower living standards.

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 4. Providing goods and services for the consumer.

Business which produce a range of goods and services enable greater

specialization in the economy. There were no consumers as individuals devoted
their time to growing and catching their own food. Through businesses offering
the ability to sell food, it enabled some workers to leave the land, and work in
manufacturing non-food items. In recent years, many successful businesses
have concentrated on developing time-saving products, which enables people
more free time to work. For example, labor-saving devices such as washing
machines, vacuum cleaners, childcare have saved time for ‘household chores’
enabling women to enter the labor force in greater numbers.

5. The principle of creative destruction.

J. Schumacher named the phrase “creative destruction”. Creative

destruction is behind the economic development of the market economy.
Schumacher argued that when the inefficient business went out of business it
enabled a redistribution of resources towards more efficient uses of resources.

Possible Challenges of Business

 Negative externalities of production

Businesses may ignore the external costs of production, leading to

social costs being significantly higher than private costs, e.g. pollution and
loss of natural resources.

 Monopoly power

Business with monopoly power can charge excessive prices and cause
an inefficient allocation of resources

 Short-termism

A business which are publicly owned must try and increase profits for
shareholders which can lead to a short-term perspective.

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 ACTIVITIES
Directions: Identify the products/services offered by the following businesses
and how these companies benefit society? Write your answer on the column
provided below.

2https://www.google.com/url?
https://www.google.com/url?sa=i& sa=i&url=https%3A%2F%2Fcust 3www.pinterest.com
url=https%3A%2F%2Ftwitter.com%2 omers.microsoft.
Fpaymayaofficial&psig

https://www.google.com/url?sa=i&url=https%3A%2F%2Fwww.facebook.co
https://www.google.com/url?sa=i&url= m%2Fkumonphilippinesofficial%2F&psig=AOvVaw1p4gNjqaKIxf2zb_lGaW-
Jollibee-Home/Faceboo/kfacebook.com http%3A%2F%2Fseekvectorlogo.com%2 1&ust=1596201254582000&source=images&cd=vfe&ved=2ahUKEwjwtbaX
h_XqAhWGAaYKHafnASEQr4kDegUIARDUAQ

Fcaltex-vector-logo-

Company Products/Services Offered The Benefit of the Society

1. Paymaya

2. Meralco

3. Toyota

4. Jollibee

5. Caltex

6. Kumon

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 WRAP UP

Let’s wrap up by answering the following questions:

1. What is a business organization?

2. What is the difference between functional and divisional business

organization? In your opinion, which is easier to manage? Explain your
answer.

___________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

VALUING

Point of Reflection

Direction: Answer the following question below and write your answer on the space
provided.

1. Is business important in your life, in your family? How?

2. What products/services help you to improve the quality of your life?

___________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

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 POSTTEST
Directions: TRUE OR FALSE
Identify whether the statement is correct or incorrect by encircling the option
that represents your answer.

T F 1. Business with people power can charge excessive prices and

cause an inefficient allocation of resources.
T F 2. A business which produce a range of goods and services
enable greater specialization in the economy
T F 3. In the pursuit of profit, businesses will try not to respond to
consumer preferences and develop new goods and services
T F 4. Business creates employment.
T F 5. Economy assumes there is a medium of exchange, which in
the modern world is a system of finance

“Happy employees lead to happy customers, which leads to more profits.”

– Vaughn Aust, EVP of Integrated Solutions, MarketStar

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 KEY TO CORRECTION

T 5. C 5. Destructive 5.

T 4. D 4. Capital 4.

F 3. A 3. Economy 3.

T 2. E 2. Production 2.

F 1. B 1. Vital role 1.

Postest Recap Pretest

R E F E R E N CE S
A. Website

https://bizfluent.com/info-7745795-roles-business-organizations-economic-
development.html

https://www.enotes.com/homework-help/what-role-business-economy-716463

https://marketplace.regent-college.edu/ideas-media/business-economy/what-is-the-
role-of-markets

https://www.economicshelp.org/blog/glossary/the-role-of-firms-in-the-economy/

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