SHS

Organization and
Management Module 8:
Quarter 1 - Week 8

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ABM - Organization and Management
Grade 11 Module 8: Quarter 1, Week 8
First Edition, 2020

Copyright © 2020
La Union Schools Division
Region I

All rights reserved. No part of this module may be reproduced in any form without written
permission from the copyright owners.

Development Team of the Module

Author: Jairah Abegail D. Gaela, T-I

Editor: SDO La Union, Learning Resource Quality Assurance Team

Illustrator: Ernesto F. Ramos Jr., P II

Management Team:

ATTY. Donato D. Balderas, Jr.

Schools Division Superintendent

Vivian Luz S. Pagatpatan, Ph.D

Assistant Schools Division Superintendent
German E. Flora, Ph.D, CID Chief
Virgilio C. Boado, Ph.D, EPS in Charge of LRMS

Mario B. Paneda, Ed.D, EPS in Charge of Araling Panlipunan

Michael Jason D. Morales, PDO II

Claire P. Toluyen, Librarian II

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 Organization and
Management
Module 8: Quarter 1 - Week 8

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 Target

An organization is basically a group or collection of people who work together

according to their authority, role and responsibilities and coordinate their actions
while establishing relationship for the purpose of achieving a wide variety of
common goals and objectives. Along with this, there is also an organizational
structure which is simply the pattern or network of division of the roles and
responsibilities that are delegated, controlled and coordinated to people who shares
common goals and objectives. It also depicts the hierarchy in which members of an
organization rank themselves.

In your previous lesson, you learned about the nature of planning and the
importance of planning concepts as well as the application of tools and techniques
to have a good and wise decision making in business success.

This learning material will provide you with information that will help you
understand the Nature of Organizations and Types of Organization Structure.

After going through this learning material, you are expected to:

1. discuss the nature of organizations (ABM_AOM11-Ih-j-15)

2. distinguish the various types of organization structure (ABM_AOM11-Ih-j-
16)
3. understand the nature and role of the firm to determine the appropriate
hierarchical structure of a business to accomplish different goals

Before going on, check how much you know about this topic. Answer the following pretest in a sep

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 Jumpstart

For you to understand the lesson well, do the following activities.

Have fun!

Activity 1: Read Me!

Directions: Read and understand the description and characteristics of the

three (3) options in forming a business. Concentrate on what you are
reading.

Let us assume that due to the COVID-19 pandemic, Mr. Pedro’s

pharmaceutical business has grown by leaps. He’s planning to open up a new
branch in a more strategic place near a city. Like any entrepreneur who started
small but suddenly saw the growth of his business, he began to become curious on
how he should get organized and managed his business in the future.

There are a lot of questions and concerns that crossed his mind while
thinking of his expansion plans: shall he remain as a single proprietor-owner or
extend the ownership by asking some of his trusted relatives and friends? In
putting up also a new branch, Mr. Pedro needs more capital to buy the necessary
things for his second pharmacy. He has to improve his credit standing and to
prepare enough of his present assets to guarantee him in getting a loan from a
bank or he needs also some investors. What’s the best approach in organizing his
business? He began to have his initial research and it resulted to these three
options:

(a) Single Proprietor / Owner, a single person that holds the entire
operation as his personal property, managing it on a day-to-day basis.
(b) Partnership, a single business with two or more people sharing its
ownership. Each partner contributes to all aspects of the business,
including money, property, labor or skill. Each partner shares in the
profits and losses of the business.

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 (c) Corporation, a form of business that keeps the dealings, assets, and
bank accounts separate from his/her personal assets.

Directions: Read and analyze the following questions. Choose the letter of
your answer from the given choices. Place your answer in a separate sheet
of paper.

1. Which of the following is a single business with two or more persons sharing
its ownership where each partner shares in the profits and losses of the
business?
A. Sole Proprietor C. Corporation
B. Partnership D. Organization

2. What is the process of identifying and grouping the works to be performed,

defining and delegating responsibility and authority and establishing the
relationship for the purpose of enabling people to work more effectively
together in accomplishing objectives?

A. Management C. Organization
B. Nature D. Structure

3. What type of business structure is identified with a fewer preparation of

documents?
A. Sole Proprietor C. Corporation
B. Partnership D. Organization

4. Among the choices below, who is responsible for ensuring the procurement
process and the supply base effectively and efficiently?
A. Human Resource Management C. Office Management

B. Operations Management D. Material & Procurement Management

5. What nature of organization is identified for investors being the only

shareholder of a business?

A. Sole Proprietor C. Corporation

B. Partnership D. Organization

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Activity 2: Look at me!

Directions: Read and understand the description and characteristics of the

different types of organizational structure. Concentrate on what you are
reading.

Miss Lydia will have a job interview tomorrow in JADG Company. Due to
excitement, she arrived early. As she entered the building, she noticed a bulletin
board with different postings.

While waiting for her call, she roamed the place to take a quick look, and
there she went to the bulletin board and read some announcement, memorandums
and publication. One caught her attention, and out of curiosity, she gazed at the
organizational chart. The organizational chart is composed of different dignitaries
and their respective positions who are working in the said company. The structure
started from the highest rank to the lowest rank. At the back of her mind, she
wants to be listed there someday.

During her interview, another two different organizational charts again

caught her attention. She was really curious at that time about it and yet managed
to ace the interview with a good score. While leaving the room, she aspired herself
to be included in the chart one day by working hard.

After sometime, Miss Lydia then realized that once she becomes a new employee,
she must learn what an organization is, its management, its operation, its people,
and its strategies. With that in mind, she made a research about the organizational
chart and it goes like this:

An organization can be structured in various ways, with each structure

determining the manner in which the organization and performs. It is a critical part
in the progress of an organization since it can help or obstruct the organization in
the movement toward accomplishing these goals. An organization’s structure is
typically represented by an organizational chart (also called as “org chart”) – a
diagram showing the interrelationships of its positions.

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 3 Major Types of Organization Structure

(a) Functional Structure, an organization is divided into smaller groups by

areas of specialty (such as IT, finance, operations, and marketing). It is
said to offer greater operational efficiency because employees with shared
skills and knowledge are grouped together according to the work they do.
(b) Divisional Structure, each organizational function has its own division
where each division contains all the necessary resources and functions
within it to support that particular product line.
(c) Matrix Structure, individuals are grouped by two different operational
perspectives at the same time. This structure is generally best employed
by companies large enough to justify the increased complexity.

Directions: Read and analyze the following questions. Choose the letter of
your answer from the given choices. Place your answer in a separate sheet
of paper.

1. What structure is identified with a hybrid of the two structures that

caters the function and division?
A. Line C. Functional
B. Matrix D. Divisional

2. What organization structure is typically used in larger companies or

organizations with several branches or outlets?
A. Line C. Functional
B. Matrix D. Divisional

3. Which of the following is a position that has a direct chain of command

that is responsible for the achievement of an organization’s goals?
A. Line function C. Matrix function
B. Staff function D. Division function

4. What organizational structure is being referred to when each department

of the organization is grouped according to its purpose?
A. Line C. Functional

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 B. Matrix D. Divisional
5. Which among the choices below is identified as a broad organizational
structure that is usually represented with organizational charts and with
position descriptions?
A. tall C. formal
B. flat D. informal

Discover

Mr. Pedro needs to clarify and at the same time, classify the advantages and
disadvantages of the three (3) options. He called his lawyer to help him and they
discussed the following:

3 Options of an Organization

(1) Single Proprietor / Owner, one person holds the entire operation as his
/ her personal property and managing it on his / her own.
Advantages:

a. Formation – less complicated in preparation of documents and cheaper

compared to starting a formal corporation. The proprietor can be named
after the owner, or a fictitious name can be used to enhance the business.

b. Tax Benefits – no requirement to file a separate business report. One will

list the business information and figures within his/her individual tax
return. The business will be taxed at the rates applied to personal income,
not corporate taxes.

c. Decision making – Business decision remains the responsibility of the

owner. The owner can also fully transfer the sole proprietorship at any time
as he/she deems necessary.

Disadvantages:

a. Liability – the business owner will be held directly responsible for any
losses, debts or violations coming from the business.

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b. Taxes – while there are many tax benefits to sole proprietorships, a main
drawback is that the owner must pay self-employment taxes.
c. Lack of “Continuity” – the business may discontinue if the owner
become deceased or incapacitated.
d. Difficulty in Raising Capital – generating the capital or the initial funds
is usually provided by the owner. Sole proprietorship does not issue
stocks or other money-generating investments unlike corporations.

(2) Partnership, requires more than one person in the decision-making

process, it’s important that potential business partners discuss a wide
variety of issues up front and develop legal partnership agreement.
Advantages:

a. Easy & Inexpensive – the majority of time spent starting a

partnership often focuses on developing the partnership agreement
between or among few people and its shared ownership will express.

b. Shared Financial Commitment – each business partner has equally

invested in the success of the business. Partnerships have the advantage
of pooling resources to obtain significant capital.

c. Complementary Skills - a good partnership should be able to utilize

the strengths, resources, and expertise of each partner

d. Partnership Incentives for Employees – partnerships have an

employment advantage over other entities if they offer employees the
opportunity to become a partner.

Disadvantages:

a. Joint and Individual Liability – partners are also liable for the
business debts and decisions made by other partners. The personal
assets of all partners can be used to satisfy the partnership’s debt.

b. Disagreements among partners – there can be disagreements like

management styles, salary schemes, etc. that is why it is important to
consult each other on all decision making having to compromise and
resolve disputes.

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 c. Shared Profits – each partner must share the successes and profits of
their business with the other partners. An unequal contribution of time,
effort, or resources can cause dispute among partners.

(3) Corporation, business owners opt to form corporations to protect

themselves against financial and legal liabilities, so they may decide to
look for investors. Investors are only shareholders of the corporation.
However, investors will elect a set of board of directors responsible for the
different policies and vision for the corporation.
The Board of Directors will also appoint corporate officers for day-to-
day operations of the corporation. Usually a corporation has the
following key personnel: president, secretary, treasurer, although there
can be other officers, such as vice presidents.

Advantages:
a. Separate Legal Personality – A corporation, once registered with the
Securities and Exchange Commission and is issued a certificate, has
acquired a legal personality separate and distinct from its
stakeholders. Shareholders of a corporation are not liable to
obligations of the corporation’s contracts into like debts, negligence or
wrongful acts of the corporation. The maximum loss of money a
shareholder can incur is just the amount of his/her investment in the
corporation the value of his /her stock.
b. Ease of raising funds – it is easy to raise additional funds since it has
the option to sell shares of the corporation.
c. Continuity – it can have a perpetual existence, which means it can
outlive its owner because it is a separate person in the eyes of the law.
This means investors don’t have to worry about the untimely demise
of the owners.
d. Ease of Transfer of Ownership – the board of directors can
authorize the issue of shares of stocks in exchange for investors’
capital infusion into the company.
e. Credibility – a business with an Incorporation or “Inc.” sign after its
name often sounds more credible in the business context. One most

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 likely attracts more partners, customers, and attention from the
community.

Disadvantages:

a. More time and money spent in organizing – it will require more

time and money than forming other sole and partnership business type.

b. More paperwork – several documentations and paper works required

by governmental agencies monitor corporations like annual reports and
to file corporate income tax returns as well.

c. Higher Tax – corporate profits may be subject to higher overall taxes

since the government imposes taxes on profits at the corporate level and
again at the individual level, if such profits are distributed to the
shareholders.

d. More costly – there are required number of board meeting and annual
shareholder meetings/ sessions, all of these meetings/sessions will incur
expenses. As well as the services of attorney and accountant with
drafting legal documents and corporate filings.

Nature and Role of the Firm

A. Human Resource Management

- this is the entire spectrum of management of people that serves to

maximize their performance in order to meet the organization’s objectives.

- it covers the major functions of recruitment, selection and placement,

training and development, employee relations, and compensation and
benefits administration.

B. Marketing Management

- this is the responsible for identifying, anticipating and satisfying consumer

requirements profitably.

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C. Operations Management

- this involves overseeing, designing, controlling the process of production

and designing business operations in the production of goods and services.

Manufacturing setting – designs the effective and efficient

production process, acquisition of raw materials, number of trained
workers and proper maintenance of equipment.

Service-oriented setting – availability of trained and customer-

oriented personnel, presence and excellence provisions of customer
services.

D. Financial Management

- the goal of any finance function is to ensure the set up of effective and
efficient internal process designed to achieve business support service,
lowest costs and effective control of the environment while being vision-
oriented, growth focused, intuitive and risk taking.

E. Material and Procure Management

- it has the responsibility to ensure that it manages the procurement process

and the supply base effectively and efficiently.

F. Office Management

- involves design, implementation, evaluation and maintenance of the

process of work within an organization in order to maintain and improve
efficiency and productivity. This is to monitor and review systems that
would yield expected outcomes like improved turnover, output, sales.

G. Information and Communication Technology Management

- includes related form of communication or application that encompasses

radio, television, cellular phones, computer and network hardware and
software, satellite system, etc. It is the responsibility of the firm to provide
the necessary information and communication facilities to all its business
units in order to ensure that they are able to perform their functions more
effectively and efficiently.

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Once a business plan has been established, a manager can begin to organize.
Organizing involves assigning tasks, grouping tasks into departments, delegating
authority and responsibility, and allocating resources across the organization.
Basically, the nature of organization can be viewed in two (2) ways: (1)
Organization as a process and (2) Organization as a structure or framework of
relationship. Organizations can achieve higher sales and other profits by properly
matching their needs with the structure they use to operate.

An organization may come in different shapes and sizes. It can be “tall”,

those that have many tiers between the worker and the owner of the company, or
they can be “flat”, it means there are very few levels between the worker and the
owner.

The basic organization framework is called the Line Structure. It has only
direct, vertical, relationships between different levels in the firm where similar
activities are performed at a particular level. Each group of specialists can therefore
operate independently, with management acting as the point of cross-
communication between functional areas. Line departments are directly involved in
accomplishing the primary goals of the organization. In a line organization,
authority follows the chain of command.

Figure 1. Sample of Line Structure Organization. Adapted from Organization

and Management by Payos, Ranulfo P. et al. (2016).

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Advantages:

- Tends to simplify and clarify authority

- Promotes responsibility and accountability relationships
- Promotes fast decision-making
- Precise and simple to understand

Disadvantages:

- Neglects specialists in planning

- Overloads tasks on key personnel
- It becomes more ineffective as the organization becomes bigger
- Managers become experts in too many fields or area
- Tendency to become overly dependent on the few key people who are
performing numerous jobs

There are two (2) functions that can be used in making the organization
structure. A line function is a position that has a direct chain of command that is
responsible for the achievement of an organization’s goals.

Figure 2. Sample of Line Function. Adapted from Organization and

Management by Payos, Ranulfo P. et al. (2016).

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 On the other hand, a staff function is intended to provide expertise, advice
and support for the line positions. (example of Staff Functions: HR, Quality
Assurance, and Corporate Planning)

Figure 3. Sample of Staff Function. Adapted from Organization and

Management by Payos, Ranulfo P. et al. (2016).

There are several variations of organizational structures and there are three
(3) common types of it.

(1) Functional, a set up wherein each department of the organization is

grouped according to its function or purpose. The functional structure works
very well for small business in which each department can support itself by
relying on the talent and knowledge of its workers. Communication
generally occurs within each functional department and is transmitted
across departments through the department heads.

Disadvantage: restriction in coordination and communication between and

among other departments by the boundaries of the organization in which
having the various departments working separately and independently.

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Figure 4. Sample of Functional Structure. Adapted from Organization and
Management by Payos, Ranulfo P. et al. (2016).

(2) Divisional, this is typically used in larger companies or organizations with

several branches or outlets that operate in a wide geographic area or that
have separate smaller organizations within the umbrella group to cover
different types of products or market areas. It provides significant benefit
which addresses needs more rapidly and more specifically.

Disadvantage: communication is inhibited because employees in different

divisions are not working together and this structure could also be costly
because of its size and scope.

Figure 5. Sample of Divisional Structure. Adapted from Organization and

Management by Payos, Ranulfo P. et al. (2016).

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 (3) Matrix, this is hybrid of the 2 structures: functional and divisional. It is
typically used in large multinational companies, the matrix structure allows
for the benefits of functional and divisional structure to exist in one
organization. This structure is flexible and balance decision making.

Disadvantage: this can create power struggles because most areas of the
company will have a dual management. It can lead to confusion among
employees due to conflicting orders from multiple sources.

Figure 6. Sample of Matrix Structure. Adapted from Organization and

Management by Payos, Ranulfo P. et al. (2016).

There are two (2) broader organizational structure that can be identify: first
is the formal organization, where it is usually represented with organizational
charts and with position description and there is a clear reporting relationship that
the manager is aware of. Secondly the informal organization, is a set of evolving
relationships and patterns of human interaction within an organization that
actually do exist but are not officially prescribed. There is also the presence of an
informal leaders who sometimes exert influence to organizational behavior.

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 Explore

Here are some enrichment activities for you to work on master and strengthen the basic concepts

Assessment 1

Directions: Complete the statement by choosing the appropriate

term/s below. Write your answer on a separate sheet of paper.

1. A corporation is a type of business that keeps the

assets
dealings
debts
bank accounts

2. Sole proprietorships are attractive to small investors because

they are relatively easy to start up
they are entitled to all the profits that the sole proprietorships
collects
it is less complicated in preparation of documents
it is not difficult in raising capital

3. Each person in a partnership business will contribute to all aspects of

the business, including
money
labor
skill
property

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 4. An organization is basically a group of people who work together
according to their role and responsibilities
according to authority
to achieve different goals and objectives
to coordinate their actions while establishing connection

5. Usually a corporation has the following personnel:

board of directors
president
secretary
treasurer

Assessment 2

Directions: Look for the term/s that corresponds to the nature and role of
firm from the box. Write your answer on a separate sheet of paper.

business network service -

management
cellphones support hardware and oriented
of people
service software setting
effective maintenance
satellite selection and compensation
control of the of the
system placement and benefits
environment process
of work
satisfying the manufacture training and
supply computer
consumer setting development

A. Human Resource Management -

B. Information and Communication Technology Management -
C. Office Management -
D. Marketing Management -
E. Material and Procurement Management -
F. Financial Management -

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Assessment 3

Directions: Complete the analogy below by providing the appropriate

word/s to make it correct. Write your answer on a separate sheet of paper.

1. tall - : - few levels

2. - direct chain of command : staff -
3. - according to purpose : - several branches
4. formal - : - human interaction
5. - small businesses : divisional -

Assessment 4

Directions: Complete the paragraph below by providing the correct words

in the blank. Rewrite the whole paragraph with the correct words in a
separate sheet of paper.

The structure is a crucial part in the progress of an

organization since it can help or hinder the organization in the movement toward
accomplishing these goals. It can achieve higher sales and other profits by properly
matching their needs with the structure they use to operate. They come in different
shapes and sizes, for those who have few levels between the worker
and owner and if there are many levels. is also
called as the basic organization framework. When talking about functions, a
function is intended to provide expertise, advice, and support while
is a position that has a direct chain of command. There are three (3)
common types of organizational structures: first is where it is
grouped according to its function or purpose, second is that is
typically used in larger companies which operates in a wide geographic area and
third is wherein it is the combination of the two structures that
is typically used in large multinational companies. Broader organizational structure
identified also two (2) types, first is which has a set of evolving
relationships and patterns of human interaction within an organization, on the
other hand, the formal is usually represented with organizational charts and with
position descriptions. It is very important to know this information when it comes
in analyzing the organization design principles.

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 Great job! You have understood the lesson.
Are you now ready to summarize?

Deepen

Activity 1

At this point, you have to differentiate the three (options) of the nature
of an organization by completing a table. The scoring rubric on the next
page will be used in assessing your outputs.

What you need?

pen / pencil, coupon bond and ruler

What you have to do?

1. Review the three (3) options of the nature of an organization.

2. Complete the table below on how you understood the topic. Use a
separate sheet of paper for your output. See Table 1 for your
reference.

3. Accomplish your table independently and check the rubric to

assess your output.

Table 1. Nature of Organization

Nature of
Description Advantages Disadvantages
Organization
1.

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2.

3.

Rubrics for Scoring the Output

Poor Fair Good

Category
1 point 3 points 5 points
Accomplished Accomplished Accomplishment
purpose of assignment in a purpose of
assignment only capable manner. assignment directly
partially or indirectly. Major topics and completely in
Little or no covered but an exceptional
Content
supporting data or supporting detail manner. All major
data presented was somewhat lacking topics thoroughly
not relevant, specific, in specificity, supported by
or accurate accuracy, or specific, accurate,
reference relevant data
Lacked sense of unity Adequate sense Exceptionally clear
and order, ineffective of unity and sense of unity and
Organization
/ lack of transitions order, most order, logical
transitions transitions
effective
Lacked smooth, clear, Used smooth, Used smooth, clear,
readable writing, clear, readable readable writing in
contains cliché s and writing throughout a superior way
wordiness, generally most of paper, few throughout , no
Style ineffective word clichés, occasional cliché s or
choice wordiness, wordiness,
generally consistently
appropriate word effective word
choice choice
Grammar More than a few Not more than a Few, if any, errors

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 and errors per page in use few errors per page throughout in use
Mechanics of Standard English in use of Standard of Standard
rules of grammar, English rules of English rules of
spelling, punctuation, grammar, spelling, grammar, spelling,
capitalization, and punctuation, punctuation,
usage that made the capitalization, and capitalization, and
output unclear or usage but did not usage
difficult to read affect overall clarity

Activity 2

You are now ready to create your own Business Organization

Structure. You may use any of the given structures that is applicable to
your desired business. The scoring rubric on the next page will be used in
assessing your outputs.

What you need?

pen / pencil, coupon bond and ruler

What you have to do?

1. Think of your dream business and write a short paragraph that

describes it and specify how will you put up your business through
a business plan.

2. Below your business plan, make your own business organizational

structure. You can see the examples of different organizational
chart for your reference.

3. Make sure that the lines and arrows are congruent to one another.

4. Describe briefly your organization structure and write it below your

chart.

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 Table 2. Business Organization Structure

Business Plan Description:

Business Organization Structure:

Rubrics for Scoring the Output

Poor Fair Good

Category
1 point 3 points 5 points
Accomplished Accomplished Accomplishment
purpose of assignment in a purpose of
assignment only capable manner. assignment directly
partially or Major topics covered and completely in
Content
indirectly. Little or but supporting detail an exceptional
no supporting data somewhat lacking in manner. All major
or data presented specificity, accuracy, topics thoroughly
was not relevant, or reference supported by

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 specific, or specific, accurate,
accurate relevant data
Lacked sense of Adequate sense of Exceptionally clear
unity and order, unity and order, sense of unity and
Organization
ineffective / lack of most transitions order, logical
transitions effective transitions
Lacked smooth, Used smooth, clear, Used smooth, clear,
clear, readable readable writing readable writing in
writing, contains throughout most of a superior way
clichés and paper, few cliché s, throughout , no
Style
wordiness, occasional cliché s or
generally ineffective wordiness, generally wordiness,
word choice appropriate word consistently effective
choice word choice
More than a few Not more than a Few, if any, errors
errors per page in few errors per page throughout in use of
use of Standard in use of Standard Standard English
English rules of English rules of rules of grammar,
Grammar
grammar, spelling, grammar, spelling, spelling,
and
punctuation, punctuation, punctuation,
Mechanics
capitalization, and capitalization, and capitalization, and
usage that made usage but did not usage
the output unclear affect overall clarity
or difficult to read

2
 Gauge

Directions: Read each item carefully. Write the letter of the correct answer.
Use a separate sheet of paper.

1. Which of the following type of management is considered to be the entire

spectrum of management of people that serves to maximize their
performance in order to meet the organization’s strategic objectives?
A. HR Management C. Financial Management
B. Marketing Management D. Office Management

2. What role of firm encompasses radio, television, cellphones, computer

and satellite system as its form of communication or application?
A. Operations Management C. Office Management
B. Material and Procurement Management D. ICT Management

3. In the Operations Management, which setting ensures the design of

effective and efficient production process and timely acquisition of raw
materials needed for production?
A. Service – oriented setting C. Operation Setting
B. Material Setting D. Manufacture Setting

4. Which of the following below best describes single proprietor?

A. not attractive to some investors because they are relatively hard to
start up
B. it is not risky because there is no separation between the owner and
the business
C. a single person that holds the entire operation as his personal
property
D. the owner is not entitled to all the profits that the sole proprietorship
collects

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5. What management is being referred to when a firm ensures that it
manages the procurement process and the supply base effectively and
efficiently like buying high quality products?
A. Operations Management C. Office Management
B. Material and Procurement Management D. ICT Management

6. What role of the firm is responsible in monitoring and reviewing the

systems that would yield expected outcomes like improved turnover,
output sales, etc.?
A. Office Management C. Marketing Management
B. Financial Management D. Operations Management

7. Which of the following is considered as to having a higher tax among the

options of nature of an organization?
A. Sole Proprietor C. Corporation
B. Partnership D. Organization

8. What organization structure is direct and has vertical relationships

between different level in the firm?

A. Line Organization C. Line Department

B. Line Structure D. Line Management

9. Which of the following organization structure is typically used in large

multinational companies?
A. Line C. Functional
B. Matrix D. Divisional

10. What organization structure is appropriate if JG Companies has several

branches in Luzon, Visayas, and Mindanao?
A. Line C. Functional
B. Matrix D. Divisional

11. What organization structure works very well for small businesses in
which each department can support itself by relying on the talent and
knowledge of its workers?
A. Line C. Functional
B. Matrix D. Divisional

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12. Which of the following product brand / companies uses the Matrix
Structure of organization?
A. Nike Apparel C. Glow Dishwashing Liquid
B. Marikina Footwears D. Creamline Ice Cream

13. Which of the following is a disadvantage of a functional structure?

A. Employees will be more flexible
B. Employees will share too much information
C. Employees from different department may not communicate with one
another
D. Employees from each department can be reliable in supporting their
own department

14. In a functional structure, how does communication occurs within each

functional department?
A. President C. CEO
B. Chief Communication Officer D. Department Heads

15. Therese works in a company where everyone works in units with people
performing similar jobs. For example, Therese’s accounting colleagues
work in one department. The sales and marketing team work in a
separate department and even the production of the company’s apparel
team works in a separate department. What type of organization
structure is Therese working with?
A. Line C. Functional
B. Matrix D. Divisional

Amazing! You are almost done with this learning material.

2
References

Printed Materials:

Department of Education. (2013). K-12 Basic Education Curriculum, K to 12

Senior High School ABM Specialized Subject – Organization and Management
Curriculum Guide. Pasig City, Philippines

Payos, Ranulfo P. et al. (2016). Organization and Management. (pp23-30)

Manila, Philippines: Rex Bookstore, Inc.

Website:

Introduction to Business. Chapter 9 Management – Organizing. Retrieved

July 23, 2020 from https://courses.lumenlearning.com/wmopen-
introbusiness/chapter/organizing.html

Management Concepts and Organisational Behavior. Retrieved July 23,

2020 from http://www.pondiuni.edu.in/sites/default/files/management-
concepts-organisational-behaviour.pdf

Nature of Organization: Organization as Process and Organization as a

Structure. Retrieved July 23, 2020 from
https://www.yourarticlelibrary.com/organization/nature-of-organisation-
organisation-as-process-organisation-as-a-structure/25665.html

Organization: Concept, Nature, Importance and Benefits. Retrieved July 23,

2020 from https://www.yourarticlelibrary.com/organization/organisation-
concept-nature-importance-and-benefits/70058.html

2
KEY ANSWER

Jumpstart:

Activity 1: Activity 2:
1. B 1. B
2. C 2. D
3. A 3. A
4. D 4. C
5. C 5. C

Explore

Assessment 1:

1. assets, dealings, ban accounts

2. they are relatively easy to start up, they are entitled to all the profits the sole
proprietorship collects it is less complicated in preparation of documents
3. money, labor, skill, property
4. according to their role and responsibilities according to authority to achieve
goals and objectives to coordinate their actions while establishing
connections
5. president, secretary, treasurer

Assessment 2:

A. Human Resource Management

- management of people
- selection and placement
- compensation and benefits
- training and development
B. Information and Communication Technology Management
- cellphone
- computer
- satellite system
- network hardware and software
C. Office Management
- maintenance of the process of work
D. Marketing Management
- satisfying the consumer
E. Material and Procurement Management
- supply
- buying high quality products
F. Financial Management
- effective control of the environment
- business support service
- lowest cost

2
Assessment 3:

1. tall – many levels/tiers: flat- few levels

2. line – direct chain of command: staff – provide expertise, advice, support
for the line positions
3. functional – according to purpose: divisional: several branches
4. formal – organizational charts with position descriptions: informal
organization: human interaction
5. functional – small business: divisional- larger-companies or
organization with several branches or outlets that operate in a wide
geographic area

Assessment 4:

1. organization
2. flat
3. tall
4. line structure
5. staff
6. line
7. functional
8. divisional
9. matrix
10. informal organization

Deepen
Activity 1 – Answers vary. See rubric for checking
Activity 2 – Answers vary. See rubric for checking
Gauge

1. A
2. D
3. D
4. C
5. B
6. A
7. C
8. B
9. B
10.D
11.C
12.A
13.C
14.D
15.C