11

12
ACCOUNTANCY BUSINESS and
MANAGEMENT (ABM)
Organization and Management
QUARTER 1 – MODULE 1
Meaning and Function of Management

i
ABM – Organization and Management
Alternative Delivery Mode
Quarter 1 - Module 1: Meaning and Function of Management
First Edition, 2020

Republic Act 8293, section 176 states that: No copyright shall subsist in any work of the
Government of the Philippines. However, prior approval of the government agency or office
wherein the work is created shall be necessary for exploitation of such work for profit. Such
agency or office may, among other things, impose as a condition the payment of royalties.

Borrowed materials (i.e., songs, stories, poems, pictures, photos, brand names, trademarks, etc.)
included in this module are owned by their respective copyright holders. Every effort has been
exerted to locate and seek permission to use these materials from their respective copyright
owners. The publisher and authors do not represent nor claim ownership over them.

Published by the Department of Education - Schools Division Office of Makati City

OIC-Schools Division Superintendent: Carleen S. Sedilla CESE
OIC-Assistant Schools Division Superintendent: Brian E. Ilan EdD

Development Team of the Module

Writer: Venus E. Mariano, Ph.D

Editor: Mayumi P. Realosa EdD

Reviewer: Celedonia T. Teneza EdD

Layout Artist: Mayumi P. Realosa EdD

Management Team: Angelita S. Jalimao

Chief Education Supervisor, Curriculum Implementation Division

Neil Vincent C. Sandoval

Education Program Supervisor, LRMS

Celedonia T. Teneza EdD

Education Program Supervisor, EPP/TLE/TVL

Printed in the Philippines by the Schools Division Office of Makati City

Through the Support of the City Government of Makati (Local School Board)

Department of Education – Schools Division Office of Makati City

Office Address: Gov. Noble St., Brgy. Guadalupe Nuevo

City of Makati, Metropolitan Manila, Philippines 1212
Telefax: (632) 8882-5861 / 8882-5862
E-mail Address: makati.city@deped.gov.ph

ii
 What I Need to Know

Content standard

The learners have an understanding of basic concepts and theories of

management

Performance Standard

The learners shall be able to apply management theories & concepts in solving
business cases

Most Essential Learning Competencies

Explain the meaning, types and theories of management

After going through this module, you are expected to:
1. Explain the meaning and function of management
2. Apply the different function of management in the organization they belong.
3. Appreciate the importance of management

What I Know

Direction: Read the statement below and choose the correct answer by encircling
the letter.
Activity 1
1. What do you call the 5th function of management where in it involves
evaluation, recruitment, selection, training and placement of individuals in
specific job roles?
A. Staffing B. Controlling C. Hiring D. Interviewing
2. What statement best represents organizing from the statement below?
A. Yohan is a lawyer at a large company and is preparing all his co-workers for
depositions that they will have to face.
B. Yohan is a project manager at an IT company and is determining how he
should distribute resources and allocate roles
C. Yohan is a manager in a big company and he is trying to determine which
people he should hire to work on his company’s new promotional line.
D. Yohan is a director at a big IT company and he is trying to determine how his
employees have performed in the past quarter.
3. In a materials processing operation, the effective capacity of a machine is defined
as?
A. Minimum output per given time
B. Aggregate annual output
C. Theoretical maximum output in a given time
D. Most likely output in a given time.
4. What directing function of management implies to the choice below?
A. Planning
B. Leading
C. Staffing
D. Motivation
5. Which of the following is true with respect to planning?
A. Make a blue print of ideas and works
B. Tell the work allocation to all employees

1
 C. Monitor whether the things allocated are done properly
D. None of the above
6. What does everyday task of management include?
A. Planning and creativity C. Publicity and lost adjustment
B. Planning and leading D. Plotting and leading
7. Studying the future and arranging the means for dealing with it is process of?
A. Organizing B. Commanding C. Controlling D. Planning
8. Ensuring that everything is carried out according to plan is a part of the process
of what management function?
A. Organizing B. Commanding C. Controlling D. Planning
9. Seeks to bridge the gap between where we are and where you want to reach.
What function of management it is?
A. Organizing B. Commanding C. Controlling D. Planning
10. Departments and individuals in the organizing are able to work in coordination.
Which importance of planning is highlighted in the statement?
A. Planning provides direction
B. Planning reduces overlapping and wasteful activities
C. Planning reduces risk of uncertainty
D. Planning facilitates decision making

Lesson
Meaning, Functions of Management
1

In the early times one of the most important human activities is managing of people.
They form groups with the aim to accomplish goals. Management play a vital role in
the lives of human being. Management are set of principles relating to functions of
planning, organizing, directing and controlling of resources in order to achieve the
goal of organization. Management is applied to all kinds of organization whether it
is public or private.

What’s In

In this module, you are to study the meaning, function of management. An

example of an organization is your own family? Who manages the people in your
family? How do the people manage the activities? Does this organization have
any goal to achieve?

Activity 1. Answer this in a separate sheet of paper.

1. Enumerate the kind of people you see in the organizations.
2. What do they do in the organization?
3. How do they function in the organization?

What’s New
Activity 2: Try to read or visit the cite given and find out how the
story is associated to the organization
https://www.youtube.com/watch?v=dTzSkz9yrWo

2
 Story of the Ant Theory
Every day, a small Ant arrived at work early and starting at
work immediately, she produced a lot and she was happy. The
boss, a lion, was surprised to see that the ant was working without
supervision. He thought if the ant can produce so much without
supervision, wouldn’t
she produce more if she has a supervisor!

So the Lion recruited a cockroach who had

extensive experience as a supervisor and who was
famous for writing excellent reports.

So the Lion recruited a cockroach

who had extensive experience as a supervisor and who was
famous for writing excellent reports. The cockroach's first
decision was to set up a clocking in attendance system. He also
needed a secretary to help him write and type his reports. He recruited a spider who
managed the archives and monitored all phone calls The Lion was delighted with the
cockroach’s report and asked him to produce graphs to describe production rates
and analyze trends so that he could use them for presentations at board meetings.
So the cockroach had to buy a new computer and a laser printer and recruit a fly to
manage
• the IT department. The Ant, who had been so productive and relaxed, hated
this new Plethora of paperwork and meetings which used up most of her time.

The Lion came to conclusion that it was high to nominate a person in

charge of the department where the ant worked. The position was given to Cicada
whose first decision was to buy a carpet and an ergonomic chair for his office. The
new person in charge, the Cicada, also needed a computer and a personal assistant,
whom they had brought from his previous department to help him prepare a work
and budget control strategic optimization plan.

The department where the ant works is now a sad place, where
nobody laughs and every had become upset. It was the time that Cicada
convince the boss, the Lion, to start a climatic study of the office
environment. Having reviewed the charges of running the ant’s
department.

The Lion found out that the production was much less than
before so he recruited the Owl, a prestigious and renowned
consultant carry out an audit and suggest solutions. The Owl
spent 3 months in the department and came out with an enormous report,
in several volumes, that concluded that “The department is overstaffed”.

Questions: Write you answer on a sheet of paper.

1. What is all about the story?

2. Who are the characters of the story? What was their role?
3. If you were the Lion, what will be your decision?
4. Who will be the first you will remove in the organization? Why?
5. How do you relate the characters to people in the organization?
6. What is the difference between organization and management?

3
 What is It

An organization is a collection of people working together in a coordinated and

structured fashion to achieve one or more goals he nature of organization is divided
into:
Organization as a process. As a process organization is an executive function.
It becomes managerial function involving the following activities:
1. Determining activities necessary for the accomplishment of the objectives of
the organization;
2. Division of work;
3. Grouping of inter-related activities;
4. Assigning duties to persons with requisite competence;
5. Delegating authority;
6. Coordinating the efforts of different persons and groups.

II. Organization as a structure. As a structure organization is a network of

internal authority and responsibility relationships. An organization structure is a
systematic combination of people, functions and physical facilities.

What is Organization? Organization is defines as follows:

Organizations role in society. Organizations exist to allow accomplishment of
work that could not be achieved by people alone. As long as the goals of an
organization are appropriate, society will allow them to exist and they can contribute
to society.

Organizations and People. Organizations are strongly influenced by the people

that form part of them. Organizations can take in part the personality of the people
within them and the attitudes, perceptions and behaviors affect how an
organization will operate.
Organizations Require Management. Organizations use management to
accomplish the work that is required to achieve the goals.
CHARACTERISTICS OF ORGANIZATION

1) Coordination of Effort. When properly directed, persons working in coordination

with others produce better output; 2) Common Goal or Purpose. To make
employees work with proper direction, they must be provided with a common goal or
purpose; 3) Division of Labor. When the total job is divided into manageable parts,
workers will be more familiar with their assignments, making them more proficient;
4) Hierarchy of Authority. In controlling the behavior of employees, positions are
established and linked by a chain of command in a continuous branching out so
that multiple layers exist in the hierarchy.
The Nature of Management
Management is a set of activities (including planning and decision making,
organizing, leading, and controlling) directed at an organization's resources (human,
financial, physical, and information) with the aim of achieving organizational goals
in an efficient and effective manner.
MEANING AND FUNCTION OF MANAGEMENT
What is management? Management is defined as the achievement of
organizational objectives through people and other resources. It consist of several
functions, which may be briefly defined as follows:
1. Planning is the process of arranging an organization’s structure and coordinating
its managerial practices and use of resources to achieve its goal. Decision making

4
is the process by which a decision maker determines the available alternatives and
chooses the best solution that suits a given problem.

2. Staffing refers to the process of recruiting, placing, training and developing

personnel. The function of recruiting, training, developing and evaluating employees
is the most important factor because people differ from their values, attitudes and
experiences.

3. Organizing is the process of arranging an organization’s structure and

coordinating its managerial practices and use of resources to achieve its goals.
Organizing is concerned with the following functions:
a. Identify the task that must be performed by the people in the organization
b. Assigning the task to the personnel;
c. Delegating the authority to the employees;
d. Establishing relationship between authority and responsibility
e. Coordinating the activities.

4. Directing is concerned with leadership, motivation, communication and

supervision in order employees will be able to perform efficient and effectively in
order to achieve the desired output.
Leadership is the element that involves the issuing of instructions and guiding the
subordinates following the procedures and methods.
Communication must be open both ways so that the information will be passed
to the subordinates and receive feedbacks.
Motivation is very important because people who are highly motivated resulted to
excellent performance with less direction from superiors. Motivating
refers to the act of giving employees reasons or incentives to work in
order to achieve organizational objectives.
Supervising subordinates will lead to continuous progress and directions are
properly carried out.

5. Controlling consist of the activities that are undertaken to ensure that the plans
are followed and if there are deviations corrective actions will be undertaken.
Controlling involves the following; 1. Establishment of standard performance;
2. Measurement of actual performance; 3. Measuring actual performance with pre-
determined standards; 4. Taking corrective actions.

Nature of Management
I. Management as Science. It is a science because it is a systematic body of
knowledge and contains general facts which explains phenomenon. Principles are
develop through specific methods.

Science is characterized by the following features:

1. Universally acceptance principles - Scientific principles represents basic
truth about a particular field of inquiry. These principles may be applied in all
situations, at all time & at all places.
Management also contains some fundamental principles which can be applied
universally like the Principle of Unity of Command, one man, one boss. This
principle is applicable to all type of organization - business or non-business.

II. Social Science. Management is a social science because it deals with human
being.
Management is a social science due to the following reasons:-
1. Systematic collection and processing of information. Management collects
information either by observation or experiment and practice. Example:
Marketing people collect information about expected sales on the basis of
observation, experiment and practice. The data is collected then it is process and
analyze by using statistical tools whereby the decision is taken.

5
 2. Output may change though the inputs are same. In management the
output may change even when the input remains the same because it deals with
human being. Subordinates working under one manager may give different result
though resources are same. Process of management is universally followed.
3. Principles of Management are universally accepted. All successful
organizations must follow established principles of management, such as division
of work, unity of command, authority and responsibilities, discipline.

III. Management as an Art. Art implies application of knowledge and skill trying to
have a desired output. Art may be defined as personalized application of general
theoretical principles for achieving best possible results. Art has the following
features.
1. Practical Knowledge. Every art requires practical knowledge therefore learning
of theory is not sufficient. It is very important to know practical application of
theoretical principles.
2. Personal Skill: Although theoretical base may be same for every artist, but each
one has his own style and approach towards his job. That is why the level of success
and quality of performance differs from one person to another.
3. Creativity: Every artist has an element of creativity in line. That is why he aims
at producing something that has never existed before which requires combination of
intelligence & imagination. Management is also creative in nature like any other art.
It combines human and non-human resources in useful way so as to achieve desired
results. It tries to produce sweet music by combining chords in an efficient manner.
4. Perfection through practice: Practice makes a man perfect. Every artist
becomes more and more proficient through constant practice. Similarly managers
learn through an art of trial and error initially but application of management
principles over the years makes them perfect in the job of managing.
5. Goal-Oriented: Every art is result oriented as it seeks to achieve concrete results.
In the same manner, management is also directed towards accomplishment of pre-
determined goals. Managers use various resources like men, money, material,
machinery & methods to promote growth of an organization. Thus, we can say that
management is an art therefore it requires application of certain principles rather it
is an art of highest order because it deals with molding the attitude and behavior of
people at work towards desired goals.

Management as both Science and Art

Management is both an art and a science. The above mentioned points clearly reveals
that management combines features of both science as well as art. It is considered
as a science because it has an organized body of knowledge which contains certain
universal truth. It is called an art because managing requires certain skills which
are personal possessions of managers. Science provides the knowledge & art deals
with the application of knowledge and skills.

WHY STUDY MANAGEMENT? We study management because of the “universality

of management. The reality that management is needed in all types and sizes of
organizations, all organizational levels, organizational areas regardless of location.
The common characteristics of organizations are: 1) Have a distinct purpose
2. Are composed of people, 3. Have a deliberate structure.

DIFFERENCE OF EFFFICIENCY AND EFFECTIVENESS

Management involves coordinating and overseeing the work activities of others so
that their activities are completed efficiently and effectively.

Employees and managers who demonstrate effectiveness in the workplace help

product high-quality results. Efficient employees and managers complete tasks in
the least amount of time possible with the least amount of resources possible by
utilizing certain time-saving strategies

6
Improving Employee Effectiveness. To improve effectiveness, companies must
take the initiative to provide thorough performance reviews, detailing an employee’s
weakness through constructive criticism.

Improving Employee Efficiency. Employees and managers are often inefficient

because they either do not know how to be efficient or do not have the necessary
tools to perform tasks efficiently.

What’s More

Now that you have learned the meaning and function of management you are now
ready to apply to concepts by doing this activity.

ACTIVITY 4: Answer the following questions in a sheet of paper.

1. If you were to run for a position in an organization what position will you want?
2. What are your skills you have that can be used in the position desired?

What I Have Learned

Activity 5. Reflection: Answer this in a separate sheet of paper.

Operations keeps the lights on, strategy provides a light at the end of the
tunnel, but project management is the train engine that moves the
organization forward. (Joy Gumz)
1. How do you relate this quote to the lessons discussed?

What Can I do?

Make a one minute video presentation about your desire to run for the position in
the organization

Assessment
Read the statement and choose the correct answer. Encircle the correct answer.
Do not use pencil. Erasures are not accepted.

1. It is a process of planning, organizing and controlling activities in an

organization in a systematic way in order to achieve organizational goal. What do
you call this?
A. Business B. Family C. Management D. Organization
2. What is the central element in the management process which requires minimum
amount of resources to be used in order to achieve organizational goals?
A. Accuracy B. Effectiveness C. Planning D. Staffing
3. Which of the following is CORRECT about organizational effectiveness?
A. Successful organizations focus on the goal approach
B. One indicator of effectiveness is efficiency
C. Ability to acquire raw materials at a low cost is a measure of the strategic
constituents approach
D. Internal process approach focuses on the human relation approach

7
4. Which describe best a management?
A. Reduces effectiveness C. Causes chaos
B. Increase Efficiency D. Cause delays
5. Which statement about management as a science is INCORRECT?
A. It is universally applicable C. It is systemized body of knowledge
B. It is a pure science D. All of the above
6. Which of the following is included in “controlling function?
A. Measuring results against corporate objectives C. Setting standards
B. Explaining routines D. Giving assignments
7. Every manager gives the same amount of time and attention to each of the
management function. The statement is?
A. Correct B. Partially Correct C. Partially wrong D. Wrong
8. Which of the statement below is an effective standard for control?
A. Deciding to hire 10 employees
B. Renting a new space
C. Planning to increase sales from 10000 every month
D. Improving the quality of production
9. Which of these statements best summarizes the meaning of management?
A. Only people in formal organization act as managers
B. Only a few experienced people in an organization are managers
C. Management is a job conducted by those with special training
D. Management is both a general human activity and a specialized occupation
10. Planning, organizing, directing and controlling are statement referring to?
A. Functions of management C. Results of management
B. Goals of management D. All of the above

Additional Activities

Make a Publication of the video you created via Facebook, messenger to You
tube

Rubrics:
Creativity
Time Frame
Originality
Clarity of video and sound