LEARNING ACTIVITY SHEET

Organization and Management

Quarter 2, Week 1

Organizing
(Apply organization theories for effective business
management)
 LEARNING ACTIVITY SHEET
Organization and Management, Quarter 2, Week 1

Organizing
(Apply organization theories for effective business
management)
Introduction:
The evolution of organization can be traced back to the days when human
beings started living in groups. Organizational theories have certainly changed
since earlier times because of the change in the nature of organization

Learning competency: Apply organization theories for effective business

management (MELC)
At the end of the lesson the learners will be able to:
K: identify the different organization theories
S: apply organization theories in solving business cases.
A: appreciate the importance of organization theories for effective business
management.

Directions: Choose the letter of the correct answer. Write your answers on a
separate sheet of paper.
1. Which of the following can be used to run an organization in such a way
that they are likely to be successful?
A. Organizing
B. Organization Process
C. Organizational Theory
D. Organization Structure

2. Which of the following does NOT belong to traditional theory?

A. Divisional
B. Functional
C. Simple
D. Team

3. Which of the following organization designs groups together similar

specialties?
A. Divisional
B. Functional
C. Simple
D. Team

4. Which of the following is one of the advantages of functional design is?

A. Flexible
B. Focused on result
C. Clear accountability
D. Cost saving advantages

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 5. Which of the following is one of the disadvantages of simple
organizational design?
A. Increased cost and reduced efficiency
B. No longer appropriate as the company grow.
C. Possible duplication of activities and resources.
D. Managers have little knowledge of another units’ function.

6. All of the following are under modern theory, EXCEPT?

A. Boundary-less design
B. Divisional design
C. Team Design
D. Matrix Design

7. Which modern theory design is highly flexible and responsive?

A. Boundary-less design
B. Divisional design
C. Team Design
D. Matrix Design

8. When to change an organization design?

A. You’ve set new strategies or goals
B. The current design no longer works
C. Something changes either inside or outside of the business.
D. All of the choices

9. A publishing company decided to produce less in print, offer more free

content online. Which of the reasons trigger to change its design?
A. They’ve set new strategies or goals
B. The current design no longer works
C. Something changes either inside or outside of the business.
D. All of the choices

10. A company changes its organization design when something changes either
inside or outside of the business environment. Which of the following examples
would BEST explain its reason?
A. New goal will be implemented
B. Rival has entered your territory
C. Modified the operation process
D. Increase your people flexible working options.

Directions: Do the activity and answer the questions below. Write your answer
on a separate sheet of paper.

1. Do you belong to an organization during your junior high school aside

from the SSG organization?

2. Are you a member or an officer of that organization? How did you feel
when you belong to an organization?

3. What are the similarities and differences it has with the business
organization? If you have more that two organizations you can choose
any of them for comparison with the business organization. Use the
Venn diagram to show its relationship.

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 A. Your organization B. Business Organization

A B.
Differences Similarities Differences

Apply organizational theories for effective

esson 1 business

Organizational theory studies organizations to identify the patterns and

structures they use to solve problems, maximize efficiency and productivity, and
meet the expectations of stakeholders. Organizational theory then uses these
patterns to formulate normative theories of how organizations function best.
Therefore, organizational theory can be used in order to learn the best ways to
run an organization or identify organizations that are managed in such a way
that they are likely to be successful.

 Correctly applying organizational theory can have several benefits for both
the organization and society at large. Developments in organizations help
boost economic potential in a society and help generate the tools necessary
to fuel its capitalistic system.
 Once an organization sees a window for expansion, it begins to grow and
thus alters the economic equilibrium by catapulting itself forward. This
expansion induces changes not only in the organization’s infrastructure but
also in competing organizations and the economy as a whole.
 One example of how development in organizational theory improves
efficiency is in factory production. Henry Ford created the assembly line, a
system of organization that enabled efficiency and drove both Ford and the
U.S. economy forward.

Key Terms

 efficiency: The extent to which a resource, such as electricity, is used for

the intended purpose; the ratio of useful work to energy expended.
 normative: Of, pertaining to, or using a standard.
Theories and application
There are two main classification of theories regarding organizational
design according to Robins and Coulter (2009): traditional and modern.
Traditional pertains to the usual or old-fashioned ways, while Modern refers to
contemporary or new design theories

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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
http://www.businessdictionary.com/definitiion/organizational-design.
html#ixzz3RUnVe60L
Simple
This organization design has few departments, wide span 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 used by
companies that start out as entrepreneurial ventures
When applied, its strength and weaknesses are revealed. See table 4.1 below
Table 4.1

Simple Organization Design

Strengths Weaknesses

 Flexible  Risk that

overdependence with
 Fast decision over-dependence on a
making and results single person
 No longer appropriate
 Clear as the company grows
accountability

Functional
This organizational design group 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
Table 4.2
Functional Organization Design
Strengths Weaknesses

 Cost- saving  Managers have

advantages little known
 Management is knowledge of
other’s unit’s
facilitated because
function.
workers with similar
tasks are grouped
together

Divisional
This organization design is made up of separate business divisions or units,
where the parent corporation acts as overseer to coordinate and control the
different division provide financial and legal support services.
Table 4.3 Strengths and weaknesses.

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 Divisional Organization Design
Strengths Weaknesses

 Focused on  Possible
results duplication of
activities and
 Manager are resources
responsible for  Increased cost and
what happens to reduced efficiency
their products
and services

Modern organizational design theories include:

Team Design
In team design; the entire organization is made up of work group or teams.
Its advantages include empowerment of team members and reduced barriers
among functional areas. It also has disadvantage, including a clear chain of
command and great pressure on teams to perform.

Matrix- Project Design

Matrix design refers to an organization design where specialist from
different departments work on projects that are supervised by a project
manager. This design results in a double chain of command wherein works
have two managers- their functional area manager and their project manager-
who share authority over them. Advantage: specialist are involved in the
projects. 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.

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 level that separate employees, no departmentalization, and
no boundaries that separate the organization from customers, suppliers, and
other stakeholders. Virtual organization design are often used in this design:
small Groups of full-time employees and outside specialist are temporarily hired
to work on projects. Its advantages include being highly flexible and responsive,
while its disadvantages are lack of control and problem in communication.

Organization Design: When and Why?

There are three common” triggers” for Organization design
1. Something’s changed, either inside or outside of the business.

Perhaps you’ve thoughts some new technology or rival has entered your territory.
Maybe an important piece of legislation affecting your business has changed.

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Some factors are exiting, some are worrying, but they all require a response-and
that likely means some alterations to the way you operate.
2. You’ve set new strategies or goals.

The company might take the strategic decision to approach its in a different way
for any number of reasons. It might also change the ways it measures success.
For example: a publishing company might decide to produce less in print, offer
more free content online, and aim to make most of its money from advertising.
In which case, it would have to set new goals for website engagement and
advertising revenue, and it would need to implement an organization design
process to pursue this new strategy.
3. The current designs no longer works.

Many aspects of change affecting organization are gradual. But in time, a “tipping
point” is reached.
Perhaps you’ve increased your people’s flexible working options, but problems
are beginning to show: absence is up, deadlines are being missed, and there’s a
growing sense of inequality across the business. Enough is enough your
organizational design needs to change.

Activity 1: Design It.

Directions: Answer the following questions on a separate sheet of paper.
a. Choose one popular fast food chain company. Name some teams
that may be organized within company to help achieve its goal.

b. Give your own example of a functional design

5 3 1
Response is Response is not so Response does not
comprehensive, comprehensive, answer the
relevant and well- somewhat relevant questions
written

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Activity 2: Solve the Case!

Directions: Read and analyze the case below. Identify and discuss the reason
behind Mr. Cruz’ lack of success. What can you suggest to Mr. Cruz to solve
his predicament. What organizational design would you suggest applicable to
his business?
Write your answer on a separate sheet of paper.

CASE STUDY
Mr. Carlos Cruz founded a construction company after years of working
as an engineer in a large company. He has very good technical skills and had
contacts which gave him small contracts initially. He hired 5 employees initially
which included a bookkeeper, carpenter, and unskilled laborers. His company
remained small in the first 5 years and business growth was gradual. However,
on the 6th year, it began to grow to such an extent that he needed to delegate
some of his tasks to another skilled person. Contracts kept coming, large and
small alike, but he was spread too thinly in managing all these projects when he
has someone he could hire, the person was technically skilled but could not
coordinate all the activities to the projects assigned to him. There were also some
problems with service quality which he could not handle. In the end, the person
resigned and Mr. Cruz took over these projects as well. Mr. Ramos finished all
his projects but some were behind schedule. The company reputation was also
affected because of the service quality problems.

Activity 3: D-Sign

Directions: Using the PMI sign chart below, indicate what you have learned in
the plus column, what you have failed to master in the minus column and
what is interesting goes to the interesting column.

Plus (+) M inus (-) Interesting (I)

Rubrics in scoring

5 3 1
Response is Response is Response does not
relevant and well- somewhat relevant answer the
written questions

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Directions: Read and understand each statement carefully. Then choose the
letter that corresponds to your answer inside the box. You can use the answer
more than once.

A. Simple D. Team Design G. Traditional Organizational Design

B. Functional E. Matrix-Project H. Modern Organizational Design

C. Divisional F. Boundary-less I. Organizational Design

1. The manner in which a management achieves the right combination and

integration of response to the level of uncertainty in its external
environment.
2. Theories that are usual, old fashioned ways.
3. Contemporary new design theories.
4. A traditional design that has few departments, wide span of control and
has very little formation of work.
5. One of a modern design where the entire organization is made up of work
groups.

FOR ITEMS 6-10

Read the questions carefully, select the correct answer and write it on a
separate sheet of paper.

6. Which of the following organizational designs result in double chain of

command wherein worker has two managers?
A. Boundary-less
B. Divisional
C. Functional
D. Matrix-Project

7. Which of the following organizational designs design has no hierarchical

levels that separates employees, no departmentalization and no
boundary that separate the organization from customers, supplier and
other stakeholders.
A. Boundary-less
B. Divisional
C. Functional
D. Matrix-Project

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 8. Which of the following disadvantages belong to a Functional
organizational design?
A. Increase cost and reduced efficiency
B. No longer appropriate as the company grows
C. Possible duplication of activities and resources
D. Manager has little knowledge of another unit function.

9. What type of organization design includes Team Design, Matrix-Project

Design and Boundary-less?
A. Modern
B. Traditional
C. Both A & B
D. Neither A or B

10. Which of the following is the correct grouping of a traditional organizational

theory?
A. Team, Functional, Team
B. Boundary-less, Matrix, Team
C. Simple Divisional Functional,
D. Functional, Divisional, Boundary-less

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References
https://link.quipper.com/en/organizations/547ffe77d2b76d00020033e7/curri
culum#curriculum

Prepared by:

SHS Teacher III

Bislig City National High School
Bislig City Division

Reviewed and Checked:

IRENE G. AJOC, PhD

EPS/Senior High Coordinator

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