Revised LAS For Week 8

Learning Activity Sheets
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LEARNING ACTIVITY SHEETS IN ORGANIZATION AND MANAGEMENT
THE BUSINESS PLAN
LEARNING COMPETENCY WITH CODE
• Analyze the nature of organizations and types of organization

structures
(ABM_AOM11-Ia-b-6) Quarter 1 WeeK 7
BACKGROUND INFORMATION FOR LEARNERS
In your last topic you study about planning, the first management function,
next topic will be about organizing, the second management fucntion. The goals and
objectives established during planning will all go to waste without effective
organizinng, through the development of a designed structure of roles for effective
performance. It requires an interlacing of decision and communication work units to
coordinate efforts toward the
Organizational goals and objectives that were set earlier. To function well,
organization structures and their specific roles must be understood by all members
of the organization. Rules and regulation principles must also be put into practice.
However, that organizing depends on the specific situation of th firm.
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Nature of Organizations
Differentiation of the Organization’s Internal Environment
Differentiation in organizations involves division of labor and specialization

according to Bateman and Snell (2008). These necessarily result from the
organization’s composition—many different work units with different kind of tasks,
using different skills and work activities coordinating with one another for a common
end.
Division of Labor involves assigning different tasks to different people in the
organization’s different work units. Related to its specialization, the process in
which different individuals and units perform different tasks. An organization’s overall
work is complex and would be too much for any individual, therefore, the bigger the
organization, the more work units or work divisions and specializations are to be
expected.
Integration of Work Units
Integration is another process in the organization’s internal environment which

involves the collaboration and coordination of its different work units or work
divisions. Coordination refers to the procedures that connect the work activities of
the different work divisions/units of the firm in order to achieve its overall goal.
Structural mechanisms may be devised in order to increase collaboration and
coordination. The more highly differentiated one’s organization is, the greater the
need for integration among the different units.
Types of Organization Structures
An organization structure is a system made up of tasks to be accomplished,

work movements from one work level to other work levels in the system, reporting
relationships, and communication passageways that unite the work of different
individual persons and groups. The types of Organizationl structures include:
a. Vertical structure
b. Horizontal structure
c. Network structure
According to Bateman and Snell (2008), a vertical structure clears out issues
related to authority rights, responsibilities, and reporting relationships. Authority
rights refer to legitimate rights of individuals, appointed in positions like president,
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vice president, manager, and the like, to give orders to their subordinates, who in
turn, report to them what they have done.
Organizational Chart with Vertical Structure
Owners of private business companies are said to have absolute authority, even
if other persons are appointed as managers in their companies. In corporations, the
owners are the stockholders and they elect a board of directors to manage the
organization’s activities. The board has a chairman who acts as the leader, while
the members act as the corporation’s authority figures, responsible for making
major decisions affecting their organizations, subject to the corporation’s
constitution and by-law provisions. Besides the chairman of the board, a chief
executive officer (CEO) is appointed to occupy the top post in the organization
pyramid and is personally accountable to the members of the board and other
owners for the organizational performance.
Below the top-level managers are the middle-level managers in charge of
departments, who as earlier mentioned, report to them. Under the middle-level
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managers arethe lower-level managers which include office managers, sales
managers, and supervisors who directly report to the former. Employees under the
lower-level managers also have reporting relatonships with their respective
department managers,
Sample of Functional Organization
A horizontal structure refers to the departmentalization of an organization into

smaller work units as tasks become increasingly varied and numerous.
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Types of Department:
Line departments – deal directly with the firm’s primary goods and services;
responsible for manufactuing, selling, and providing services to clients.
Staff departments – support the activities of the line departments by doing
research, attending to legal matters, performing public relations duties, etc.
Meanwhile, departmentalization may be done using three approaches:
Functional approach – where the subdivisons are formed based on specialized
activities such as marketing, production, financial management, and human
resources management.
Divisional approach – where departments are formed based on management of
their products, customers, or geographic areas covered.
Matrix approach – is a hybrid form of departmentalization where managers and
staff pesonnel report to the superiors, the functional manager, and the divisional
manager.
Finally, a network structure is a collection of independent, usually single
function organizations/companies that work together in order to produce or service.
Such network organizations are each capable of doing thier own specialized work
activities independently, like producing, distributing, designing, etc., but are capable
of working effectively at the same time with other nerwork members.
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REFERENCES
Books
Darr, K. (2013). Introduction to Management and Leadership Concepts, Principles
and Practices, Jones and Bartlett Learning, Retrieved from:
https://www.google.com.et
Mintzberg, H. (1989). MINTZBERG ON MANAGEMENT. Reprinted by permission of
Free Press, a division of Simon & Schuster, Inc.
Robbins, S., Robbins, S. P. and Coulter, M. (2012). Management -11th ed, Pearson.
Retrieved from: www.pearsonhighered.com
Websites
Smyth, D. (2019). The Roles of Business Organizations in Economic Development.
Retrieved from:https://bizfluent.com/info-7745795-roles-business-organizations-
economic-development.html
https://www.managementstudyhq.com/functions-of-management.html
https://www.slideshare.net/LalaineCazar/nature-and-concept-of-
management?from_action=save
https://www.wisdomjobs.com/e-university/principles-of-management-and-
organisational-behaviour-tutorial-366/evolution-of-management-thought-12679.html
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https://www.mindtools.com/pages/article/management-roles.htm
https://study.com/academy/lesson/five-stages-of-economic-development.html
https://pnl-law.com/blog/forms-of-business-sole-proprietorship-partnership-
corporation/
https://www.cda.gov.ph/resources/issuances/philippine-cooperative-code-of-
2008/republic-act-9520
https://bizfluent.com/info-7745795-roles-business-organizations-economic-
development.html
https://www.freepik.com/free-vector/team-leader-managing-
project_5562411.htm#page=1&query=manager in business management position=4
https://www.freepik.com/free-vector/urban-buildings-with-cityscape
ACTIVITY PROPER
Activity 1: Independent Activity

Direction: give your own idea and write your answer in a yellow paper.
1. Give the importance of organizing in business companies?

2. What is the negative effect of not having division of labor in organizations?
3. Why should organizations be encouraged to have an organizational chart?
Activity 2: Independent Acitivity

Now that you have learned the types of organization structures
1. What are the types of organization structures? Briefly define each
2. Summarize how authority operates in the vertical organization structure.
3. In your opinion who have greater responsibilities, the line department managers
or the staff department managers? Explain your choice.
4. Research on the CEO’s work details. What are the advantages and
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disadvantages of being a CEO?
Activity 3: Independent Acitivity

1. Create an organization chart of your business using one of the organizational
structures.
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Rubrics (if necessary)
4 Expert – Piece is extraordinary, and very informative and well organized
3 Accomplished – Piece has an interesting style, and somewhat informative and
organized.
2 Capable – Piece has little style, gives some new information but poorly organized.
1 Beginner - Piece has no style and, and gives no new information and very poorly
organized
REFLECTION
As a student, what are your insights abouth this lesson?

___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
_____________________________.
ANSWER KEY
9
10
Answer may vary in
activity 1, 2, and 3
(Upside down format/flip vertical)

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Learning Activity Sheets

LEARNING ACTIVITY SHEETS IN ORGANIZATION AND MANAGEMENT

THE BUSINESS PLAN

LEARNING COMPETENCY WITH CODE

• Analyze the nature of organizations and types of organization

BACKGROUND INFORMATION FOR LEARNERS

Differentiation of the Organization’s Internal Environment

Differentiation in organizations involves division of labor and specialization

Integration of Work Units

Integration is another process in the organization’s internal environment which

Types of Organization Structures

An organization structure is a system made up of tasks to be accomplished,

A horizontal structure refers to the departmentalization of an organization into

Activity 1: Independent Activity

1. Give the importance of organizing in business companies?

Activity 2: Independent Acitivity

Activity 3: Independent Acitivity

As a student, what are your insights abouth this lesson?

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