Organizational

Management
Quarter 1 – Module 8:
The nature of organziations and types
of organization structures.
Organizational Management – Grade 11 Alternative Delivery Mode Quarter 1 – Module 8:
The nature of organizations and types of organization structures

First Edition, 2020

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 Organization and
Management
Quarter 1 – Module 8:
The nature of organizations and
types of organization structures.
Introductory Message
For the facilitator:
Welcome to the Organizational Management – Grade 11 Alternative Delivery Mode
(ADM) Module on The nature of organizations and types of organization structures.

This module was collaboratively designed, developed and reviewed by

educators both from public and private institutions to assist you, the teacher or

facilitator in helping the learners meet the standards set by the K to 12 Curriculum

while overcoming their personal, social, and economic constraints in schooling.

This learning resource hopes to engage the learners into guided and

independent learning activities at their own pace and time. Furthermore, this also

aims to help learners acquire the needed 21st century skills while taking into

consideration their needs and circumstances.

In addition to the material in the main text, you will also see this box in the

body of the module:

Notes to the Teacher

This contains helpful tips or strategies that
will help you in guiding the learners.

As a facilitator you are expected to orient the learners on how to use this

module. You also need to keep track of the learners' progress while allowing them to

manage their own learning. Furthermore, you are expected to encourage and assist

the learners as they do the tasks included in the module.

For the learner:

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Welcome to the Organizational Management – Grade 11 Alternative Delivery Mode
(ADM) Module on The nature of organizations and types of organization structures.

The hand is one of the most symbolized part of the human body. It is often
used to depict skill, action and purpose. Through our hands we may learn, create
and accomplish. Hence, the hand in this learning resource signifies that you as a
learner is capable and empowered to successfully achieve the relevant competencies
and skills at your own pace and time. Your academic success lies in your own hands!
This module was designed to provide you with fun and meaningful
opportunities for guided and independent learning at your own pace and time. You
will be enabled to process the contents of the learning resource while being an active
learner.

This module has the following parts and corresponding icons:

What I Need to Know This will give you an idea of the skills or
competencies you are expected to learn in the module.
What I Know This part includes an activity that aims to check what
you already know about the lesson to take. If you get all the answers
correct (100%), you may decide to skip this module.

What’s In This is a brief drill or review to help you link the current
lesson with the previous one.
What’s New In this portion, the new lesson will be introduced to you in
various ways such as a
story, a song, a poem, a problem opener, an
activity or a situation.

What is It This section provides a brief discussion of the lesson. This

aims to help you discover and understand new concepts and skills.

What’s More This comprises activities for independent practice to

solidify your understanding and skills of the topic. You may check the
answers to the exercises using the Answer Key at the end of the module.

What I Have Learned This includes questions or

blank sentence/paragraph to be filled in to process
what you learned from the lesson.

What I Can Do This section provides an activity which will help you
transfer your new knowledge or skill into real life situations or concerns.
Assessment This is a task which aims to evaluate your level of mastery
in achieving the learning competency.

Additional Activities In this portion, another activity will be given to

you to enrich your knowledge or skill of the

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 lesson learned. This also tends retention of
learned concepts.

Answer Key This contains answers to all activities in the

module.

At the end of this module you will also find:

References This is a list of all sources used in developing

this module.

The following are some reminders in using this module:

1. Use the module with care. Do not put unnecessary mark/s on any part of the
module. Use a separate sheet of paper in answering the exercises.
2. Don’t forget to answer What I Know before moving on to the other activities
included in the module.
3. Read the instruction carefully before doing each task.

4. Observe honesty and integrity in doing the tasks and checking your answers.
5. Finish the task at hand before proceeding to the next.

6. Return this module to your teacher/facilitator once you are through with it.

If you encounter any difficulty in answering the tasks in this module, do not
hesitate to consult your teacher or facilitator. Always bear in mind that you are
not alone.

We hope that through this material, you will experience meaningful learning
and gain deep understanding of the relevant competencies. You can do it!

What I Need to Know

This module is designed and created to help you as an adolescent to be

prepared for adult life by means of knowing various developmental tasks according
to development stages. This module also helps you to realize how to face the
challenges during adolescence and help you to clarify and manage the demands of
teen years.

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At the end of this module, you will be able to:
1. Discuss the nature of organization;

2. Distinguish the various types of organization structures; and

3. Apply the various types of organization structures to the nature of 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.

After planning, organizing follows. The goals and objectives established during
planning will all go to waste without effective organizing, 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 practices.

Riza is the President of the XCV corporation, Riza believe in the coordination of her
subordinates. Under the middle-level managers are the lower-level managers which
include office managers, sales managers and supervisor who directly report to the
former. Riza always walk to the corridor of her staff departments. She always visits
her line departments and makes her subordinate at ease and happy at work as she
believes if there is a harmonious surrounding at work, the deadline and other
struggles that may encounter during work can be reduce. Often their communication
is by electronic means where sharing of information is speedy. This results to their
ability to respond at once to their customers’ demand. Organizational structure is
needed to keep employees needed, to build a learning organization and to manage
global structural problems. Because she always appreciates that the organization is
a system made up of tasks to be accomplished, work movements form 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.

Read carefully the statement and underline the correct words that best
describe the statement.

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 1. It is a type of Department that deal directly with the firm’s primary
goods and services; responsible for manufacturing, selling and providing services to
clients.

2. It is a Type of Department where departments are formed based on

management of their products, customers or geographic areas covered.

3. Is a Type of Department where departments are formed based on

management of their products, customers or geographic areas covered.

4. Is an Organizational structure that refers to the departmentalization of

an organization into smaller work units as tasks become increasingly varied and
numerous.

UNCERTAINTY CONDITIONS PROGRAMMED DECISION

5. Is an Organizational structure that is a collection of independent,

usually single function organizations/companies that work together in order to
produce a product or service.

Lesson The nature of Organization

1 and types of Organizational

Structures.

Differentation of the Organization’s

Internal Environment

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 Differentation in organzaiions involves division of labor and specialization according
to Bateman and Snell (2008). These necessarily result from the organization’s
composition – many dirrednt work units with different kinds of tasks, sng different
skills and work activities coordinating with one another for a common end.
Division of labor inolves assigning different tasks to different people in the
organization’s different work units. Related ot it is specialization, the process in which
different individuals and units peroform different tasks. An organizatio’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.

Organization is a social unit of people that is structured and managed to meet a need
or to puruse collective goals.

Integration Of Work Units

Integration is another process in the organization’s internal environemnt which
involves the collaboration and coordination of its different work units or work
divisions. Coordination refers to the procedures that connect the network 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 integreation amng the different units.

Types of Organization Structures

An Organization structure is a system made up of tasls to be accomplished, work
movements from one work level to other work levels in the system, reporting
relationship and communciation passageways that unite the work of different
individual persons and groups. The Types of Organizational 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 the legitimate rights of individuals, appointed in positions like
president, vice president, manager and the like, to give orders to their subordinats,
who in turn, report to them what they have done.

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Organizational Chart with Vertical Structure

Sample of Functional Organization

Owners of private business companies are said to have absolute authority, even if
other person 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 authotiry figures, responsible for making major
decisions affecting their organizations, subject ot he corporation’s constitution and

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by-law provisions. Besides the chariman of theboard, achief exective officer (CEO) is
appointed to occupy the top post in the organization pyramid and is personally
accountale to the memebers of the board and other owners for the organizational
performance.

Below the top-level manager are the middle-level managers in charge of departments
who, as earlier mentioned, report to them. Under the middle-level managers are the
lower-level managers which include office managers, sales managers and suproviors
who directly report to the former. Employees under the lower-level managers also
have reporting relationships with their respective department managers.
A horizontal structure refers to the depatmentalization of an organization into smaller
work units as taks become increasingley varies and numerous.

Types of Department:
Line departments – deal directly with the firm’s primary goods and services;
repsonsible for manufacturing, 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 done using three approaches:

Functional approach – where the subdivisions are formed

basedon specialized activites such as marketing, production,
financial management and human resources management.

Divisional approach – where departments are formed based on

management of their products, customers or geogprahic areas covered.
Matrix approach – is a hybrid form of departmentatlization
whre managers and staff personnel 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 a product or service.
Such netwrok organizations are each capable of doing their own specialized work
activities independently, like producing, distributing, designing etc., but are capable
of working effectively at the same time with other network members.

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 Often their communication is by electronic means where sharing of information is
speedy. This results to their ability to respond at once to their customers’ demands.
Organizational structure are needed to keep employees needed, to build a learning
organizational and to manage global structural problems.

What’s In

CROSSWORD
Supply the correct terms on the given statement below
Vertical
2. Is a Type of Department that support the activities of the line departments by
doing research, attending to legal matters, performing public relations duties, etc. 3.
It is a structure
Horizontal
1. It is an approach where departments are formed based on management of their
products, customers, or geographic areas covered.

4. It is an organizational structure that refers to the departmentalization of an

organization into smaller work units as tasks become increasingly varied and
numerous.
5. It is an approach that is a hybrid form of departmentalization where
managers and staff personnel report to the superiors, the functional manager and
the divisional manager.
6. Is a Type of Department that deal directly with the firm’s primary goods and
services; responsible for manufacturing, selling and providing services to clients.

7. Is another process in the organization’s internal environment which involves

the collaboration and coordination of tis different work units or work divisions.
8. Is an approach where departments are formed based on management of their
products, customers or geographic areas covered.

9. Is an approach where the subdivisions are formed based on specialized

activities such as marketing, production, financial management and human
resources management.

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10. It 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.

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 Notes to the Teacher
Ang modyul na ito ay naghahanda sa mga mag -aaral upang
makalikha at mailarawan ang mga hugis ng katawan ayon sa kung
paano ito ginagawa o inilalahad sa isang larawan.

What’s New

FIND THE HIDDEN WORDS:

VERTICAL – INTEGRATION, LINE DEPARTMENTS
HORIZONTAL – DIVISION OF LABOR, COORDINATION, STAFF DEPARTMENTS,
DIVISIONAL APPROACH, MATRIX APPROACH,
NETWORK STRUCTURE, VERTICAL STRUCTURE,
HORIZONTAL APPROACH

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 What is It

THE DECISION MAKING PROCESS

ACCORDING
TO ROBBINS AND COULTER

Step 1: Identify the Problem. The problem may be defined as a puzzling

circumstance or a discrepancy between an existing and a desired condition.

Step 2: Identify the Decision Criteria . These are important or relevant to resolving
the identified the problem.

Step 3: Allocate Weights to the Criteria. This is done in order to give the decision
maker the correct priority in making the decision.

Step 4: Develop Alternatives. This step requires the decision maker to list down
possible alternatives that could help resolve the identified problems.

Step 5: Analyze the Alternatives. Alternatives must be carefully evaluated by the

decision maker using the criteria identified in Step 2.

Step 6: Select an Alternative: This is the process of choosing the best alternative
or the one which has the highest total points in Step 5.

Step 7: Implement the Chosen Alternative. This step puts the decision into action.
Changes in the environment must be observed and assessed, especially in cases of
long-term, decision, to see if the chosen alternative is still the best one.

Step 8: Evaluate Decision Effectiveness. This is the last step and involves the
evaluation of the outcome or result of the decision to see if the problem was resolved.
If the problem still exists, the manager has to assess what went wrong and, if needed,
repeat a step or the whole process.

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 What’s More

Identify the Types of Organization Structures used in this

statements.

Rima is a Senior High Students that specialized in ABM strand., Her mother
is the leader in Line departments that uses Functional approach where the
subdivisions are formed based on specialized activities such as marketing,
production, financial management and human resources management. While her
father is the being the middle level managers which in charge of office managers,
sales managers and supervisors who directly report to the former. Employees under
the lover – level managers also have reporting relationships with their respective
department managers.

Rima wanted to become like her parents someday. She respect the dedication that
she see every day with her parents, and also the love that she feels from them, She
is happy and contented knowing her parents loves her and letting her choose what
she wants and also guiding her to the path the she wanted.

What I Have Learned

Identify the words that is missing in the following statement below.

A. Owners of private business companies are said to have absolute authority,

even if others persons are appointed as managers in their companies. In
1._____________, the owners are the stockholders and they elect a board of directors
to manage the organization’s activities. The board has a 2.__________________ who
acts as a leader, while the 3.__________ act as the corporation’s authority figures,
responsible for making major decisions affecting their organizations, subject to the
corporation’s authority figures, responsible for making major decisions affecting their
organizations, subject of he corporation’s constitution and by-law provisions Besides

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the chairman of the board, a 4.________________________ is appointed to occupy the
top post in the organization pyramid ad is personally accountable of the member of
the board and other owners for the organizational performance.

B. Under the middle-level managers are the lower – level managers which include
5.______________, 6._______________, and 7.____________ who directly report to the
former. Employees under the lower-level manager also have reporting relationships
with their respective department managers.

C. 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 person and groups. The types of organizational structures include
8._______________, 9.__________________, 10.________________.

What I Can Do

Write TRUE if the statement is correct and FALSE if the statement is wrong.
Write your answer on the blank provided to each number.

____________1. An organization structure is a system made up of tasks to be

accomplished, work movements form one work level to other work levels I the system,
reporting relationships and communication passageways that unite the work of
different individual persons and groups.

____________2. A vertical structure clears out issues related to authority rights,

responsibilities and reporting relationships.

____________3. Authority rights refer to the legitimate rights of individuals,

appointed in positions like president, vice president, manager and the like to give
orders to their subordinates.

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____________4. A horizontal structure refers to the departmentalization of an
organization into smaller work units as tasks become increasingly varied and
numerous.

____________5. Employees under the lower-level managers also have reporting

relationships with their respective department managers.

____________6. Line departments support the activates by doing research, attending

to legal matters, performing public relations duties etc.

____________7. Staff departments deal directly with the firm’s primary goods and
services; responsible for manufacturing, selling and providing services to clients.

____________8. Divisional approach is where the subdivisions are formed based on

specialized activities such as marketing, production, financial management and
human resources management.

____________9. Functional approach is a hybrid form of departmentalization where

managers and staff personnel report to the superiors, the functional manager and
the divisional manager.

____________10. Matric approach is where the departments are formed based on

management of their products, customers or geographic areas covered.

Assessment

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

___________1. Is a collection of independent, usually single function organizations/companies

that work together in order to produce a product or service. ___________2. It deals directly
with the firm’s primary goods and services: responsible for manufacturing, selling and
providing services to clients.

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___________3. It supports the activities of the line departments by doing research, attending to
legal matters, performing public relations duties, etc.

___________4. It is where the subdivision is formed based on specialized activities such as

marketing, production, financial management and human resources management.

___________5. It is where the departments are formed based on management of their products,
customers or geographic areas covered.

___________6. It is a hybrid form of departmentalization where managers and staff personnel

report to the superiors, the functional manager and the divisional manager.

___________7. It refers to the departmentalization of an organization into smaller work units

as tasks become increasingly varied and numerous.

___________8. It clears out issues related to authority rights, responsibilities and reporting
relationships.

___________9. Refers to a selection of independent, usually single-function organizations that

work together to produce a produce or service.

___________10. It is another process in the organization’s internal environment which involves

the collaboration and coordination of its different work units or work divisions.

Additional Activities

ENUMERATION: Enumerate the following:

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1-3 Types of organizational structures.

4-5 Types of departments

6-8 Three approaches

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References
DepEd (2016). Kto12 MELC. Organization and Management Business

Dictionary.

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For inquiries or feedback, please write or call:

Department of Education – Region III,

Schools Division of Bataan - Curriculum Implementation Division
Learning Resources Management and Development Section (LRMDS)

Provincial Capitol Compound, Balanga City, Bataan

Telefax: (047) 237-2102

Email Address: bataan@deped.gov.ph