Grade 11 (Final Term)

Organization and Management

Week 1 – Module 1
Organizing

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 Chapter 4

ORGANIZING

for Grade 11
Organization and Management

SELF-LEARNING KIT

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 First Semester
Module No. 1
LESSON 2:
Applying Organization Theories for Effective Business Management

OBJECTIVES
1. Apply organization theories for effective business management

LEARNING COMPETENCY
1. Apply organization theories for effective business management

I. TRY ME!

A. The Who!

At home, when there are issues and concerns, who does the counselling or fixing
of the problems? Explain your answer.

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II. LESSON PROPER

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 based by companies that start
out as entrepreneurial ventures.
When applied, its strengths and weaknesses are revealed. See Table 4.1 below.

Table 4.1
Strengths and Weaknesses of a Simple Organizational Design

Functional

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.
It also has strengths and weaknesses as seen in Table 4.2 below.

Table 4.2
Strengths and Weaknesses of Functional Organizational Design

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Divisional

The 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.
Table 4.3 shows its strengths and weaknesses.

Table 4.3
Strengths and Weaknesses of Divisional Organizational Design

Modern organizational design theories include:

Team Design

In team design, 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 for different
departments work on projects that are supervised by a project manager. This design
results in a double chain of command wherein workers have to 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.

Figure 4.4
Teamwork and cooperation are
two essential factors for an
organization’s success.

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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 employees 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.

A. Self-check
1. What are the advantages and disadvantages of the simple organizational design?
Do you agree or disagree with these advantages and disadvantages? Explain your
answer.

Answer:
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________

2. Task and personality conflicts are said to be the disadvantages to the use of the
matrix-project design. Explain the rationale of this statement.

Answer:
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________

B. Exercise

Choose one popular fast food chain company. Name some teams that may be
organized within the company to help achieve its goals.

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 III. ASSESS WHAT YOU HAVE LEARNED

A. Identification.
Identify if the following Organizational Structural Design
is Traditional (T) or Modern (M). Use T or M for your
answers. (10 points)
_______ 1. Design that groups together similar or related specialties
_______ 2. It is made up of work teams.
_______ 3. Design where employees continuously work on a project
_______ 4. Focus on performance improvement on people
_______ 5. Focus on flexibility and problem solving
_______ 6. Design made up of separate units where parent corporation acts as
overseer
_______ 7. Boundaryless
_______ 8. Big number of subordinates reporting to a centralized authority figure
_______ 9. Matrix Design
_______ 10. Design with few departments, wide spans of control

B. Case Study.
Answer briefly and comprehensively. (20 points)
* Rubric categories: correct
appropriate/realistic
clear
1. Engineer Jose Santos is a supervisor of a group of light project engineers. His unit
is burdened with heavy workload because of increase in orders of their company’s
computer components. Following up customer’s orders and the availability of these
said products by himself is too much work for him. As a consultant for the company,
what would your advice Engineer Santos? Explain your answer.
Answer:

_________________________________________________________
_________________________________________________________
_________________________________________________________

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_________________________________________________________
_________________________________________________________

2. Your family decides to open a sari-sari store at home. What organizational design
is applicable in the situation? Explain your answer.

Answer:

_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________

C. Integration:

At the end of the chapter on Organizing, write two or three sentences to complete
the following: (10 points)

I realized that ________________________________________________________

_________________________________________________________
_________________________________________________________

I resolved that _______________________________________________________

_________________________________________________________
_________________________________________________________

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 GLOSSARY

Modern Theories - are contemporary or new design theories

Organizational design - 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

Traditional Theories - are the usual, old fashioned ways

REFERENCES
Cabrera, H. M. F., Altarejos, A. DC. & Benjamin R. (2016). Organization and
Management Teacher’s Manual for Senior High School. Quezon City: Vibal
Group Inc.
Cabrera, H. M. F., Altarejos, A. DC. & Benjamin R. (2016). Organization and
Management Textbook for Senior High School. Quezon City: Vibal Group Inc.
http://www.businessdictionary.com/definition.organizational-
design.html#ixzz3RUnVe6OL

Prepared by:

Charmine I. Sayawan
Teacher