11/12

ORGANIZATION
AND MANAGEMENT
Quarter II – Week 8
Introduction to Different
Functional Areas of Management
and Family Business Enterprise

CONTEXTUALIZED LEARNING-INSTRUCTION KIT

SCHOOLS DIVISION OF PUERTO PRINCESA CITY
Organization and Management – Grade 11/12
Contextualized Learning Activity Sheets (CLAS)
Quarter II - Week 8: Introduction to Different Functional Areas of Management
First Edition, 2020

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Published by the Schools Division of Puerto Princesa City

Development Team of the Contexualized Learning Activity Sheets

Writer: Selfa M. De la Cruz

Content Editors: Marie Vic C. Velasco, PhD.

Shiela M. Caab

Language Editor: Marilyn M. Badilla, Principal II

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Reviewer: Marie Vic C. Velasco, PhD

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Management Team:
Servillano A. Arzaga, CESO V, SDS
Loida P. Adornado, PhD, ASDS
Cyril C. Serador, PhD, CID Chief
Ronald S. Brillantes, EPS-LRMS Manager
Marie Vic C. Velasco, PhD, EPS-Mathematics
Eva Joyce C. Presto, PDO II
Rhea Ann A. Navilla, Librarian II
External Evaluator :

Division LR Evaluators: Ronald S. Brillantes, Joseph D. Aurello

Division of Puerto Princesa City-Learning Resource Management Section (LRMS)

Sta. Monica Heights, Brgy. Sta. Monica, Puerto Princesa City
Telephone No.: (048) 434 9438
Email Address: puertoprincesa@deped.gov.ph
Name: Grade & Section:

Lesson 1
Introduction to the Different
Functional Areas of Management
MELC: The learner must be able to explain the nature and role in the firm of the following
functional areas of management :
(a) Human Resource Management (f) Office Management
(b) Marketing Management (h) ICT Management
(c) Operations Management
(d) Financial Management
(e) Material and Procurement (ABM_AOM11-lli-39)
Objectives: 1. Define the nature and role of the different functional areas of management.
2. Identify the nature and role of the different functional areas of management.
3. Predict future career path in different areas of management.

Let’s Explore and Discover

What is your dream job in the future? Do you know the role and
importance of your dream job in the different areas of
management?
Unlocking
of Difficulties
• Role is a function
or position that
someone has or is
expected to have in
an organization.
• Job - a specific
piece of work done
for a certain fee.

To prepare you to become future leaders and managers, you must become familiar with
the functional areas of management. In doing so, you will be ready for the challenges
that you will inevitably meet in tomorrow’s workplace.
Businesses separate tasks into functional activities. The main functional activities can
be grouped under the four (4) main functional areas-- marketing, operations, human
resources and finance.

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The different functional areas of management are the different activities carried out by
people working in the organization with interactive approach to effectively and efficiently
operate the business.

The different functional areas of management

Human Resource Management

➢ The functional area of organization involved the most important resources which is
its employees and people. It is responsible for :
✓ Policy making
✓ Workforce planning
✓ Welfare, training and development
✓ Administration and motivation
✓ Considered employee as the most important asset of the company
✓ HR management deals with management of people which involves
recruitment, selection, placement, training and development to maximize
employee productivity.
Marketing Management
➢ The department is responsible for :
✓ Conducting market research to identify new market opportunities and
develop superior product and employ efficient marketing techniques
✓ Developing the marketing strategy that will promote products and services
✓ Customer relationship Management to ensure an excellent service to clients
to build long lasting relationships.
✓ Marketing mix is an important consideration in marketing mgt. includes
Product,Price,Promotion, Place.
✓ Analyzing, planning, implementing and controlling of goods, services and
ideas to create exchanges that satisfy customer needs, company goals and
earn profit.
Operations Management
➢ This business function is responsible for :
✓ Managing the process of creation of goods and services, it is considered as
the central core function of every company.
✓ Involves overseeing, designing, controlling the process of production and
redesigning business operations in the production of goods and services”.
✓ Ensuring that employees are adequately trained, that customer service
locations are equipped as needed and are safe for employees and the public.
✓ Uses the basic equation of Productivity (Productivity=output÷input)
✓ Helps a business organization effectively manage, control and supervise
goods, services and people.
Financial Management
➢ This management function is responsible for :
✓ Planning, organizing, directing and controlling the financial activities such
as procurement and utilization of funds.
✓ Ensuring optimum fund utilization and adequate return of investment to
shareholders.
✓ Assessment of financial ratios to indicate the overall performance of the
organization

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 ✓ Facilitates the choice of investments, financial policies, and operating
mechanism of the organization in order to effectively achieve its goals and
objectives.
(Source: Helena Ma. F. Cabrera,PhD., Anthony DC. Alterejos,PhD.,and
Riaz Benjamin, Organization and Management, Quezon City,Vibal Group
Inc.,2016,120-132.)

Material and Procurement Management

➢ This management function is responsible for :
✓ Production and Material Control prepares schedules of production to be
carried in future. The requirements of parts and materials are determined
as per production schedules.
✓ Purchasing or make buying arrangements on the basis of requisitions
issued by other departments. This department keeps contracts with
suppliers and collects quotations etc. at regular intervals
✓ The transporting of materials from suppliers is an important function of
materials management.
✓ Materials Handling: is concerned with the movement of materials within a
manufacturing establishment and the cost of handling materials is kept
under control. It is also seen that there are no waste or losses of materials
during their movement.
✓ Receiving The receiving department is responsible for the unloading of
materials, counting the units, determining their quality and sending them
to stores etc.
✓ Responsible for purchasing the highest quality equipment and products at
the lowest possible cost for the organization. Material Management is also
responsible for managing purchasing, inventory control functions, shipping
and receiving, and also planning and administering department budgets.
(Source: “Materials Management Meaning importance and functions,”
Your article Library, accessed October 16, 2020, www.yourarticlelibrary.com/material-
management/materials-management-meaning-importance-and-functions/53156)

Office Management
➢ This management function is responsible for :
✓ For the planning, design, implementation of work in an organization and its
offices. This includes creating a focused work environment, and guiding and
coordinating the activities of office personnel to achieve business goals.
These activities are evaluated and adjusted to improve and maintain
efficiency, effectiveness, and productivity.
✓ ensure the smooth running of an office on a day-to-day basis and may
manage a team of administrative or support staff. Responsible for the
efficient functioning of an office through a range of administrative, financial
and managerial tasks.
(Source: “Office Management,” Katherine Boyarsky,
accessed October 17, 2020, www.owllabs.com/blog/office-management.)

3
Information and Communication Technology Management (ICTM)
➢ This management function is responsible for :
✓ Developing the organizations hardware, software, and other computing and
communicating technology.
✓ Developing the organizations management information system(MIS) tailored
to the needs of the firm’s units.
✓ Collects, organizes, and distributes data to be used in the organization’s
decision-making functions.
✓ Used for scenario planning or identifying future scenarios in the business
environment and decision making through the use of information generated
by IT.

(Source: Helena Ma. F. Cabrera,PhD., Anthony DC. Alterejos,PhD.,and

Riaz Benjamin, Organization and Management, Quezon City,Vibal Group
Inc.,2016,133-135)

4
 Let’s Practice

Directions: Choose the correct word from the table that is being described by the given
statement below. Write your answer on the space provided before the number.
ICT Management Materials and Procurement Management
Human Resource Management Operations Management
Financial Management Functional areas of management

___________________1. it is the process of attracting, training ,developing and

maintaining excellent workforce.
_____________________2. ensures optimum fund utilization and adequate return of
investment to shareholders.
_____________________3. uses the basic equation of Productivity
(Productivity=output÷input)
_____________________4. develops the organization’s hardware, software, and other
computing and communicating technology.
_____________________5. responsible for purchasing the highest quality equipment and
products at the lowest possible cost for the organization.

Directions: Match the managerial functions on column A with the proponents in column
B. Write the letter of the correct answer on the space provided before the number.

Column A Column B

______1. Ensures optimum fund utilization A. Operations Management

of the company.
______2. Implementation of strategies to B. Financial Management
introduce new product line in the market.
______3. Facilitates hiring of new employees C. Marketing Management
in the company.
______4. considered as central core function D. Materials and Procurement
of every company. management
______5. Purchase the highest quality E. Human Resource Management
equipment and products for the company

Which functional areas of management take care the welfare and development of the
employees? Explain briefly.

___________________________________________________________________________

What is considered the most important asset of the company? Explain briefly.

__________________________________________________________________________

5
 Let’s Do More

Directions: Read each scenario and identify what nature or type of functional areas of
management it describe. Write your answer on the space provided before the number.
______________________1. Rosetina’s job is to prepare the plan for the training of the
newly hired employees of their company.

______________________2. Advertising and product promotion strategies are the reasons

of Joey’s overtime at work.

______________________3. Hero developed an inventory software program to monitor the

daily sales of the company.

______________________4. Sara is an office manager who monitors the day-to-day

activities of the firm to ensure efficiency and productivity of
each employees.

_____________________5. Boss Ben decides on where to invest company assets to secure

higher rate of return on assets.

Directions: Predict one (1) among the functional areas of management for
your future career path and state your reason/s why did you choose this
career.

Career Choice: _____________________________________________________

Reason/s :
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________

How will you prepare yourself to pursue your future dream career?
____________________________________________________________________________
___________________________________________________________________________________

6
 Let’s Sum It Up
Activity

Directions: Complete the sentences by filling in the blanks with the correct answer.

1. The seven (7) functional areas of management are

_____________,________________,________________, _________________, ______________,
________________, _______________________.
2. The _______________ management developed strategies to promote products and
services of the company.
3. The ________________________________has different segments but they work together and
connected with each other to provide excellent goods and services in an organization.

4.The________________management ensure the smooth running of an office on a day-to-

day basis and manage administrative, financial and support staff.
5. The four (4) main functional areas of management are ______________________,
__________________________, __________________________, _______________________.

4.
4.

Lesson
7
2
MELC: Explain the nature and role in the firm of the following functional areas of
management :
(f) Human Resource Management (f) Office Management
(g) Marketing Management (h) ICT Management
(h) Operations Management
(i) Financial Management
(j) Material and Procurement (ABM_AOM11-lli-39)
Objectives: 1. Define family business and enterprise.
4. Identify the importance of starting a family business.
5. Give example of a business plan for a small-family business.

Let’s Explore and Discover

Are you dreaming of a family business in the future? How can

Unlocking of you make yourself ready to venture in that business?
Difficulties

• Family
business- a
business owned
and financially
controlled by the
members of the
family.
• Enterprise-any
projected task or
work; an
undertaking

Innovative, creative and intuitive thinking in business management helps entrepreneurs

come up with great ideas or new strategies that may lead to the successful achievement
of their goals--service, growth, and profitability.

8
The Entrepreneurial Procedure

The following are the systematic process in the pursuit of entrepreneurial ventures. The
entrepreneurial procedure involves the following steps:

Step ①- Formulate the business vision and mission statements. The business vision
in the organization provides a picture where the organization is headed and what the
organization can become in the future. Its mission states the basic purpose and scope of
the organization’s operations.

Step ②- Segment of the Market. Identify a specific segment or group of people

that your business will cater or what we call target market. A business cannot offer
goods and services to society at the onset in a large scale. The basis for segmenting
the market to find the target market may be :

Geographical. Market segmentation may be used on location (city, province, region,

country; north, east, south or west)

Demographical. Consider population and can further be extended to include age,

income, education, marital status, and other related information.

Psychographical. Psychographics looks into peoples interest, values, attitudes,

opinions and lifestyle.

Behavioral. Segmentation based on people’s behavior towards purchasing or

spending, or toward a product or service.

Step ③ - Understand the Environment. Things around us are not permanent and
everything changes. These changes greatly impact business. Environmental factors
can be internal or external.
Internal factors are environmental factors within the company and can be
controlled like employees, management, physical facilities, and so on. On the other
hand external factors have two types: micro environment and macro environment.
Micro environment includes customers and suppliers, whereas macro environment
includes economic, sociocultural, technological, legal, political, and natural factors,
as stated by Kotler (1997)

9
Step ④- Develop the Business Plan. We can define a business plans the road
 Source : Helena Ma. F. Cabrera, Anthony DC. Alterejos,PhD., and
Riaz Benjamin, Organization and Management, Quezon City,Vibal Group
Inc.,2016, 136-139)

Family businesses still thrive in today’s competitive economy. As most successful family
businesses are not only well-founded but also well-run. Knowing the following advantages
of being in a family-owned and -run firm can help business owners maximize each one of
their family-owned businesses:
• Commitment and unified leadership
• Stability
• Trust and authenticity
• Flexibility and versatility
• Vision and long-term goals
• Decrease costs and expenditures
• Next-generation ingenuity

Source: “Benefits of a Family Owned Business,”Julianne Leybag,;

accessed November 4, 2020,www.mybusiness.com.au/management/4474-benefits-
of-a-family-owned-business.)

10
 Let’s Practice

Directions: Arrange in chronological order the steps in starting a family

business. Write numbers 1 to 4.

___________ Understand the environment

___________ Formulate the vision and mission statement
___________ Develop the business plan
___________ Segment the market

Directions: Draw a heart-shape ( )on the blanks provided if the phrase describes
a family business or a smiley face ( ) if it refers to an enterprise.
__________1.business is financially controlled by the family
__________2. any projected task or work
__________3. owners of a business is blood related
__________4. business can be pass on within the family circle
__________5. a business owned by group of friends

What is the most basic step in starting a family business?

____________________________________________________________________________________

What is the advantage of understanding the environment before you open a business?

___________________________________________________________________________________

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Directions: Classify the following phrases/statements whether external
or internal factor. Write the letter E if it pertains to External
environment factor in business and I if it refers to
Internal environment.
_______1. employees
_______2. competitors
_______3. government laws
_______4. floods and typhoons
_______5. high end machine and equipment

Directions: Read the scenario below to complete the business plan. Select the
appropriate phrase that will identify the category it belongs.

This COVID-19 pandemic greatly affected the different businesses here in

Puerto Princesa City. Banoy’s Coffee shop is one of those businesses that
struggled to survive during this trying time. He temporarily closed his place
and decided to bring all his kitchen equipment at home and started offering his
products to his friends online like in Facebook and Instagram. He used the
remaining P50,000.00 profit from the shop.
He baked delicious cakes and pastries and accepted orders for special
occasions. He also decided to continue offering the most popular product of
the shop the coffee crumble milk tea.

P50,000 profit from the coffee shop

TESDA Training
Apply for a bank loan
Loyal clients from Banoy’s coffee shop
Cakes, pastries and milk tea
Facebook and Instagram
Using his kitchen equipment/s
Famous coffee shops in the city
Friends and other people who see his products online

WHAT+HOW+WHO
WHAT are Banoy’s
products/services?
HOW can he produces his
products?
WHO will buy his products?

MARKETING
HOW can he promotes his
products?

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 FINANCIAL
WHERE did he get his
financial resources/capitals?
COMPETITION
WHO are his top competitors
in the city?
WHAT are his competitive
advantages?

How can this lesson help you to become a successful future entrepreneur?
___________________________________________________________________________________
___________________________________________________________________________________

Why is it important to learn the steps in starting a family business? Give at least two(2)
reasons.
1. _________________________________________________________________________________
2. _________________________________________________________________________________

Let’s Sum It Up

Activity

Directions: Complete the sentences by filling in the blanks with the correct answer.

To start a family business the first step is

(1)____________________________________________ to see if where the business is going and
what the organization can become in the future. Next is to know the
(2)____________________________ to identify the target market which is grouped according
to(3)__________________,(4)___________________,(5)__________________,(6)_________________.
After getting enough information about the market, the next thing to do is to
(7)_______________________________ in order to control the consequences of change.
Environmental factors can be (8)_______________ and (9)________________. The last step
is to (10)__________________________________ which serves as the road map for the
business to follow in utilizing the resources at hand while understanding the
environment in mind.

13
 Let’s Assess

Directions: Choose the letter of the best answer. Write the

letter of your answer on the space provided before the number.

______1. Which is the process of of attracting, training and developing and maintaining an
excellent work force.
A. Human Resource management C. ICT management
B. Financial management D. Marketing management

______2. Which of the following statement/s are TRUE?

I. Human resource management deals with the management of people-the most

important business resource.
II. Marketing management processes includes planning, pricing, promotion and
distribution of goods.
III. Operations management uses the basic equation of productivity.
IV. Financial management facilitates choices of investments and and financial
policies of the company.
A. Statement I and III are FALSE
B. Statement II, II and IV FALSE
C. Statement II,III and IV are TRUE
D. Statement I, II, III and IV are TRUE

______3. What area of management is considered central core function of every company?
A. Human Resource management C. Marketing management
B. Financial management D. Operations management

______4. Which statement is NOT true about ICT management?

A. Measure company’s financial soundness.
B. Encourage e-commerce through the use of internet.
C. Develop company hardware and software and other computing technology.
D. Develop organizations management information system (MIS)tailored to the
needs of the firm.

______5. The following are functions of Human Resource Management. Which of this
function is NOT included?
A. Conducting job analysis
B. Selecting candidates on the job
C. Financial management and control
D. Planning labor need and recruiting

______6. Which refers to the group of people that you are expecting to offer your goods
and services?
A. entrepreneur C. small business
B. family business D. target market

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______7. Sara and Stephen are siblings who like to bake cakes and pastries. They decided
to sell their products online to earn extra income while staying at home. Who are
its target market?
A. Friends and classmates C. office workers
B. neighbors D. all of the above

______8. Which market segment considered the interests, values, attitudes, opinions and
lifestyles of the people in the market?
A. Behavioral C. Geographical
B. Demographical D. Psychographical

_____9.Which statement is NOT true about understanding the business environment?

E. Changes in the environment has a great impact on business.
F. It tells us the future dream of the enterprise.
G. Environmental factors can either be internal or external.
H. Change is inevitable and business should be ready to cope with the changes.

_____10. Which are considered as internal factors in the environment?

I. Legal III. Physical facilities
II. management IV. technological

A. I only C. I and IV only

B. II only D. II and III only

15
 Answer Key
Lesson 1
Let’s Practice Let’s Do More

1.Human Resource management 1.Human Resource

2. Financial Management 1. B management
3. Operations Management 2. C 2. Marketing Management
4. Materials and Procurement Management 3. E 3. ICT Management
5. Materials and Procurement Management 4. Office Management
4. A
5. D 5. Financial Management

Let’s Sum It Up
Activity :
1. Human Resource Mgt.,Marketing Mgt.,Operations Mgt.,Financial Mgt.,Materials and
Procurement Mgt.,Office Mgt.,ICT management.
2. Marketing
3. functional areas of management
4. Office
i

5. Human resource, Marketing, Finance, and Operations

Lesson 2 Let’s Practice

3 Understand the environment

1 Formulate the vision and mission statement 1. 4.
4 Develop the business plan 2. 5.
2 Segment the market 3.

Let’s Do More
Let’s Sum It Up
1. I 3. E 5. I Activity:
2. E 4. E 1. formulate business vision
and mission
2. segment of the market
3. Geographical
1. Cakes, pastries and milk tea
4. Demographical
2. Using his kitchen equipment
5. Psychographical
3. His friends and other people who see his
6. Behavioral
products on line
7. find the target market
4. Facebook and instagram
8. internal
5. P50,000.00 from the shop
9. external
6. Famous coffee shops in the city
10. create a business plan
7. Loyal clients from Banoy’s coffee shop

Let’s Assess
1. A 3. D 5. C 7. D 9. B
2. D 4. A 6. D 8. D 10. D

1. D 3. D 5. D D
16 3. D
5. D 7. B 9. A
2. D 4. B 6. D 8. D 10. D
 References
Book
Cabrera, Helena Ma. F., Anthony DC. Alterejos, PhD., and Riaz Benjamin,
Organization and Management, Quezon City,Vibal Group Inc.,2016

Websites

Your article Library, “Materials Management Meaning importance and functions”,

accessed October 16, 2020, www.yourarticlelibrary.com/material-
management/materials-management-meaning-importance-and-functions/53156

Katherine Boyarsky,”Office Management”., accessed October 17, 2020, www.

owllabs.com/blog/office-management

Julianne Leybag, “Benefits of a Family Owned Business,”, July 9,accessed

November 4, 2020,www.mybusiness.com.au/management/4474-benefits- of-a-
family-owned-business

17
FEEDBACK SLIP

A. FOR THE LEARNER

Thank you very much for using this CLAS. This learner’s
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help of your family members. For feedback purposes, kindly answer YES NO
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1. Are you happy and contented with your learning experiences

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Yes (Please indicate what this is/these are.)

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