Organization and

Management
Quarter 2 – Module 1:
The nature of organizations and types of
organization structures.

ROSIE O. COROT
ABM Strand Coordinator
Subject Teacher
09778050397

CATARMAN NATIONAL HIGH SCHOOL

SHS Department
 What I Need to Know

This module is designed and created to help you understand the different
organization design and its organization.

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

1. Discuss the different organizational design;

2. Appreciate the different organizational design; and

3. Application of different organizational design to its own organization.

 What I Know

Read the statement below. Analyze the situation and

underline the words or phrase that you think can identify
themselves
to the organization.

Mabel is an ABM Grade 12 student. She wants to organize ABM club, so the
student from her strand can think of ways to learn and understand more their
subjects and they can also conduct a community engagement to where they can
share their knowledge and understand more of the surroundings with regards to
their studies. She searched students that are capable of handling stress, pressure
and leadership towards others. She looks for their strength and weaknesses.

After a month the ABM club are complete. She studied organizational design
and theories to be used. She tried the traditional design – which is the usual old
fashioned way of modern theories which are contemporary or new design theories.

She plans to have a delegation. She also wants all her members to be
responsible, she makes a list in delegation to wit:

1. Defining the goal clearly

2. Selecting the person who will be given the task

3. Assigning of responsibility

Because she wants her team to have a sense of authority and accountability.
She wants to be known as caring and loving leader and at the same time to be strict
in managing the organization.
 Read carefully the statement and underline the correct words that best
describe the statement.

1. Refers to an organizational design where specialist from different

departments work on projects that are supervised by a project manager.

2. The entire organization is made up of work groups or teams. Its advantages include
empowerment of team members and reduced barriers among functional areas. It also
has disadvantages, including a clear chain of command and great pressure on teams
to perform.

3. Are the usual, old fashioned ways.

4. The right to act legally or officially.

5. Is to be liable to be called to explain.

 Lesson Apply organization theories

1 for effective business

management.

Organization Theories and Applications

There are two main classifications of theories regarding organizational design
according to Robbins and Coulter (2009): traditional and modern. Traditional
pertains to the usual or old-fashioned ways, while modern refers to contemporary
or new design theories.

Traditional organizational design theories include:

SIMPLE
This organizational design has few departments, wide spans of control, or a big
number of subordinates directly reporting to a manager; has a centralized authority
figure and has very little formalization of work; usually used by companies that
start out as entrepreneurial ventures.

When applied, its strengths and weaknesses are revealed. See Table 4.1 below.
Simple Organizational Design
Strenghts Weaknesses

-flexible -risk that overdependence with over

-fast decision-making and results dependece on a single person

-clear accountability -no longer appropriate as the company

grows
Functional
This organizational design groups together similar or related specialties. Generally,
functional departmentalization is utilized and put into practice in an entire
organziation. For example: A marketing firm that markets cars and related
products like tires, car batteries, and accessories.

It has strengths and weaknesses as seen in Table 4.2

Functional Organizational Design
Strenghts Weaknesses

-cost-saving advantages -managers have little knowledge of other

- management is facilitated because units’ functions
 workers with similar tasks are grouped
together.
DIVISIONAL

This organizational design is to made up of separate business divisions or units,

where the parent corportaion acts as overseer to coordinate and control the
different divisions and provide financial and legal support services.

Table 4.3 shows its strengths and weaknesses.

Divisional Organizational Design
Strenghts Weaknesses

-focused on results -possible duplication of activities

-managers are responsible for and resources what happens to their

products -increased cost and reduced efficiency

and services.

Modern organizational design theories include:

TEAM DESIGN
In team, the entire organization is made up of work groups or teams. Its
advantages include empowerment of team members and reduced barriers among
functional areas. It also has disadvantages, including a clear chain of command
and great pressure on teams to perform.
MATRIX-PROJECT DESIGN
Matrix design refers to an organization design where specialists from different
departments work on projects that are supervised by a project manager. This design
results in a double chain of command wherein workers have two managers – their
functional area manager and their project manager – who share authority over
them. Advantage: specialists are involved in the project. Disadvantage: task and
personality conflicts.
Project design refers to an organizational design where employees continuously
work on a project. Advantages: flexible designs and fast decision-making.
Disadvantages: complexity of assigning people to projects and tasks and personality
conflicts.
BOUNDARY-LESS DESIGN
This is another modern organizational design where the design is not defined or
limited by vertical, horizontal and external boundaries. In other words, there are no
hierarchical levels that separate employees, no departmentalization and no
boundaries that separate the organization from customers, suppliers and other
stakeholders. Virtual organization designs are often used in this design: small
groups of full-time employment and outside specialists are temporarily hired to
work on projects. Its advantages include being highly flexible and responsive,
while its disadvantages are lack of control and problems in communication.
 DELEGATION
Delegation refers to assigning a new or traditional task to a subordinate, it may
also refer to getting work done through others by giving them the right to make
decisions and take action. Elements of delegation include: authority or the right to
set officially or legally, responsibility or the state of being answerable
legally/morally for the discharge of a duty, and accountability is to be liable to be
called to explain. Steps in delegation include:
1. Defining the goal clearly. Managers must clearly explain the task
objective and the work or duties someone else is expected to do.

2. Selecting the person who will be given the task. The selected
subordinate must be competent and must share the manager’s task objectives.

3. Assigning of responsibility – Managers must explain that

the responsibility assigned to the selected subordinate is an expectation for him or
her to perform the assigned tasks well.

4. Asking the person assigned about his or her planned approaches to

accomplish the task objectives. It is expected that the person chosen to do the task
already has a tentative plan of action that may be presented to the manager, to
assure him or her that the person assigned could achieve the task objective.

5. Granting the assigned person, the authority to act. If the manager is

satisfied with the tentative plan of action presented, granting of the authority to act
immediately follows. Authority is right to act in ways needed to carry out the
assigned task.

6. Giving the assigned person enough time and resources to do the task,
while the same time emphasizing his or her accountability. Accountability is the
assigned person’s willingness to complete the job, as agreed upon.

7. Checking the task accomplishment progress. Following up and

discussing the task accomplishment progress at regular intervals is necessary.

8. Making sure that the task objective has been achieved. The above
steps of delegation were given by Weihrich and Krontz (2005).

Delegation has advantages and disadvantages as well.

Advantages of Delegation Disadvantages of Delegation

It prevents work overload among It may cause laziness among
organization managers. organization managers.

It provides opportunities for employee It may encourage too much dependence

or subordinates assigned to do the task on others.
to fully utilize their talents on the job.

It may cause lack of control over priority

management problems.
It leads to empowerment of employees
or subordinates assigned to do the
task, as it allows them freedom to
contribute ideas and to perform their
job in the best possible way.

It increases job satisfaction among the It may cause low self-confidence among
assigned employees or subordinates, managers.
that may lead to better job performance.
 What’s In
Apply the correct letter to form the right word or words that
fits to its meaning.

1. _ E L E _ A _ _ O N – Refers to assigning in a new or additional task to a

subordinate; or getting the work done through others by giving the right to
make decisions or take action.

2. A _ T _ _ R _ T _ - The right to act legally or officially.

3. A _ _ O U N _ A _ I _ I T _ - Is to be liable to be called to explain.

4. R _ _ P O _ _ I B _ L I T _ - The state of being answerable legally and morally

for the discharge of duty.

5. O _ G A _ I Z A _ _ O N _ L _ E _ I _ N - The manner in which a management

achieves the right combination of differentiation and integration of the
organization’s operations, in response to the level of uncertainty in its external
environment.

6. T _ A _ I T _ O _ A _ T H _ O _ I _ S - Are the usual, old fashioned ways.

7. _ _ D _ R N _ H E O _ I _ S – Are contemporary or new design theories.

8. T _ A _ _ T _ O _ A L – Pertains to the usual or old-fashioned ways.

9. M _ _ E _ N - refers to contemporary or new design theories.

10. D I _ I _ I _ N _ L - This organizational design is made up of separate business

divisions or units, where the parent corporation acts as overseer to coordinate
and control the different divisions and provide financial; and legal support
services.
 Notes to the Teacher

This module will prepare the learners to analyze diagrams in

explaining how materials cycles in the environment.

What’s New

Choose the term that best describes each given statement. Write ONLY the
letter of your choice on the blank provided before the number.

1. Refers to assigning in a new or additional task to a subordinate; or

getting the work done through others by giving them the right to make decisions or
take action.
2. Is to be liable is to be called to explain.

3. The right to act legally or officially.

4. Are contemporary or new design theories.

5. Refers to an organization design where specialists from different
departments work on projects that are supervised by a project manager.

A. Delegation

B. Matrix design C.

Modern Theories D.

Authority

E. Traditional theories

F. Organizational deisgn

G. Accountability
 What is It

ORGANIZATIONAL DESIGN – The manner in which a management achieves

the right combinations of differentiation and integration of the organization’s
operations, in response to the level of uncertainty in its external environment.

TRADITIONAL THEORIES – Are the usual, old fashioned ways.

MODERN THEORIES – Are contemporary or new design theories.

DELEGATION – Refers to assigning in a new or additional task to a

subordinate; or getting the work done through others by giving them the right to
make decisions or take action.

AUTHORITY – The right to act legally or officially.

RESPONSIBILITY – The state of being answerable legally and morally for the
discharged of duty.
ACCOUNTABILITY – Is to be liable to be called to explain.
 What’s More

Write the Strength and Weaknesses of each Organizational design

given below.

Simple Organizational Design

Strengths Weaknesses

1. 1.

2. 2.

3.

Functional Organizational Design

Strengths Weaknesses

1 1.

2.

Divisional Organizational Design

Strengths Weaknesses

1 1.

2. 2.
 What I Have Learned

FILL IN the WORDS that will complete on the statement below.

In team design, the entire 1. is made up of work groups or

teams. Its advantages include empowerment of team members and reduced
barriers among functional areas. It also has disadvantages, including
a clear
2. and great pressure on teams to perform. Matrix design refers
to an organization design where 3. from different departments
work on projects that are supervised by a 4. . This design results in a
double chain of command wherein workers have two managers. – their 5.
manager and their 6. manager – who share authority over them.
 What I Can Do

Rearrange the jumbled letter to form the correct words that

fits to the statement’s meaning on every number. Write your answer
to the underlined world after the statement.

NOITEDLEAG 1. Refers to assigning in a new or additional task to a

subordinate; or getting the work done through others by giving them the right to
make decisions or take action. .

NDGIES ESSL YBOURAND 2. This is another organizational

design where the design is not defined or limited by vertical, horizontal and external
boundaries. In other words, there are no hierarchical levels that separate employees,
no departmentalization and no boundaries that separate the organization from
customers, suppliers and other stakeholders. .

TCERPOJ GEISDN 3. Refers to an organizational design where

employees continuously work on a project. .

RADTIITOALN SIEEOHTR 4. Are the usual, old fashioned

ways. .

RDTILOANATI 5. Pertains to the usual or old-fashioned ways.

.
 Assessment

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

1. The manner in which a management achieves the right combination of

differentiation and integration of the organization’s operations, in response to the
level of uncertainty in its external environment
2. Is to be liable to be called explain.

3. Refers to assigning in a new or additional task to a subordinate; or

getting the work done through others by giving them the right to make decisions or
take action.
4. The state of being answerable legally and morally for the discharge of
duty.
5. The right to act legally or officially.
6. Are contemporary or new design theories.
7. Are the usual, old fashioned ways.
8. In , the entire organization is made up of work groups or
teams. Its advantages include empowerment of team members and reduced
barriers among functional areas. It also has disadvantages, including a clear
chain of command and great pressure on teams to perform.
9. Refers to an organization design where specialists from different
departments work on projects that are supervised by a project manager.
10. It pertains to the usual or old-fashioned ways.

11. Refers to contemporary or new design theories.

12. This organizational design has few departments, wide span of

control, or a big number of subordinates directly reporting to a manager; has a
centralized authority figure and has very little formalization of work; usually used
by companies
that start out as entrepreneurial ventures.
13. This organization design groups together similar or related
specialties.
14. This organizational design is made up of separate business divisions
or units, where the parent corporation acts as overseer to coordinate and control
the different divisions and provide financial and legal support services.
15. This is another modern organizational design where the design is
not defined or limited by vertical, horizontal and external boundaries.
 Additional Activities

WORD POOL Complete the statements using the correct words given in the box.
Write your answer on the blank provided for every number.

♦ De
fini ngthe goal clearly.
♦Assigning responsibility.
♦Selecting the person who will be given the task.
♦ Asking the person assigned about his or her planned approaches to
accomplish the task objectives.
♦Giving the assigned person enough time and resources to do the task,
while at the same time emphasizing his or her accountability.
♦Checking the task accomplishment progress
♦Making sure that the task objectives has been achieved
♦Granting the assigned person, the authority to act.
♦Delegation
♦Organizational design

1. The manner in which a management achieves the right

combination of differentiation and integration of the organization’s operations, in
response to the level of uncertainty in its external environment.

2. Refers to assigning in a new or additional task to a

subordinate; or getting the work done through others by giving them the right to
make decisions or take actions.

3. If the manager is satisfied with the tentative plan of action

presented to the manager, granting of the authority to act immediately follows.

4. Managers must explain that the responsibility assigned to the

selected subordinate is an expectation for him or her to perform the assigned task
well.
5. It is expected that the person chosen to do the task already
has a tentative plan of action that may be presented to the manager, to assure him
or her that the person assigned could achieve the task objective.

6. Managers must clearly explain the task objective and the work
or duties some else is expected to do.
 7. The selected subordinate must be competent and must share
the manager’s task objectives.

8. The last steps of delegation, and it is given by Weihrich and

Krontz (2005).

9. Accountability is the assigned person’s willingness to complete

the job, as agreed upon.

10. Following up and discussing the task accomplishment

progress at regular intervals is necessary.
 Additional Activities
Read the questions and choose the letter of the correct answer.

1. This organizational design groups together similar or related specialties.

Generally, functional departmentalization is utilized and put into practice in an
entire organization. For example: A marketing firm that markets cars and related
products like tires, car batteries and accessories.
a. Informal design

b. Systematic design

c. Functional design

d. Structural design
2. If the manager is satisfied with the tentative plan of action presented,
granting
of the authority to act immediately follows. Authority is a right to act in ways
needed to carry out the assigned task. In which step of delegation does this occur?

a. Defining the goal clearly.

b. Granting the assigned person, the authority to act.

c. Selecting the person who will be given the task

d. Assigning responsibility.

3. It is expected that the person chosen to do the task already has a tentative
plan of action that may be presented to the manager, to assure him or her that the
person assigned could achieve the task objective. In which step of delegation does
this occur?
a. Asking the person assigned about his or her planned approaches to
accomplish the task objectives.
b. Giving the assigned person enough time and resources to do the task,
while at the same time emphasizing his or her accountability.

c. Checking the task accomplishment progress.

d. Making sure that the task objective has been achieved.

4. Managers must explain that the responsibility assigned to the selected

subordinate is an expectation for him or her to perform the assigned task well. In
which step of delegation does this occur?

a. Defining the goal clearly.

b. Granting the assigned person, the authority to act.

c. Selecting the person who will be given the task

 d. Assigning responsibility.
5. Managers must clearly explain the task objective and the work or duties
someone else is expected to do. In which step of delegation does this occur?
a. Defining the goal clearly.
b. Granting the assigned person, the authority to act.

c. Selecting the person who will be given the task

d. Assigning responsibility.
6. Following up and discussing the task accomplishment progress at regular
intervals is necessary. In which step of delegation does this occur?
a. Asking the person assigned about his or her planned approaches to
accomplish the task objectives.
b. Giving the assigned person enough time and resources to do the task,
while at the same time emphasizing his or her accountability.
c. Checking the task accomplishment progress.

d. Making sure that the task objective has been achieved.

7. Accountability is the assigned person’s willingness to complete the job, as

agreed upon. In which step of delegation does this occur?
a. Asking the person assigned about his or her planned approaches to
accomplish the task objectives.
b. Giving the assigned person enough time and resources to do the task,
while at the same time emphasizing his or her accountability.

c. Checking the task accomplishment progress.

d. Making sure that the task objective has been achieved.

8. In design the entire organization is made of work groups or teams. Its

advantages include empowerment of team members and reduced barriers among
functional areas. It also has disadvantages, including a clear chain of command
and great pressure on teams to perform.

a. matrix
b. simple

c. complex

d. team
9. design refers to an organization design where specialists from
different
departments work on projects that are supervised by a project manager. This
design results in a double chain of command wherein workers have two managers –
their functional area manager and their project manager – who share authority over
them.
Advantage: specialists are involved in the project. Disadvantage: task and
personality conflicts.
a. matrix
 b. simple

c. complex
d. team
10. design refers to an organizational design where employees
continuously work on a project. Advantage: flexible designs and fast decision-
making. Disadvantages: complexity of assigning people to projects and tasks and
personality conflicts.

a. project

b. traditional

c. modern

d. organizational