SENIOR HIGH SCHOOL

Organization and
Management
Quarter 1 – Module 7
Nature and Types of

Organization
Organization and Management – Grade 11
Alternative Delivery Mode
Quarter 1 – Module 7: Nature and Types of Organization
Second Edition, 2021

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Published by the Department of Education – Division of Misamis Oriental.

Development Team of the Module

Writer: Kirk Venjie Bacarro Gaylo

Subject Area Specialists:

Ritzy D. Mutia,Ph.D
School Principal II Language Specialists:Jeremy C. Subaldo Illustrator:
Development Team:
Chairperson:Dr. Arturo B. Bayocot, CESO III
Regional Director

Co-Chairpersons: Dr. Victor G. De Gracia Jr. CESO V

Assistant Regional Director
Jonathan S. dela Peña, PhD, CESO V
Schools Division Superintendent
Nimfa R. Lago, PhD, CESO VI
Assistant Schools Division Superintendent
Mala Epra B. Magnaong, Chief ES, CLMD

Members:Maria Emerald A. Cabigas,PhD EPS-LRMS; Bienvenido U. Tagolimot, Jr., PhD, EPS-ADM; Erlinda G.

Printed in the Philippines by

Department of Education – Division of Misamis Oriental
Office Address: Del Pilar corner Velez Street, Brgy. 29, Cagayan de Oro City
9000 Telefax: (088) 881-3094 | Text: 0917-8992245 (Globe)
E-mail Address: [Link]@[Link]

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Organization and
Management
Quarter 1 – Module 7
Nature and Types of
Organizations

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 TABLE OF CONTENTS

Page No.

OVERVIEW
What I Need To Know 1
Things to Remember To Get Through 1
Remember This 2

Lesson 1- Nature of Organizations

What I Need To Know 3
What I Know 3
What’s In 4
What's New 4
What Is It 4
What's More 9
What I Have Learned 9
What I Can Do 9
Assessment 11
Additional Activities 12

References 14

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 WHAT I NEED TO KNOW

This learning module of Organization and Management for Senior High

School students is designed to provide learners with a better understanding of the
nature
In this module, the students are taught the importance of planning in
achieving the business desired goal at the same time in minimizing damages in
cases of business uncertainties.
After studying this module, you will be able to:
1. discuss the nature of organization,
2. distinguish the various types of organization structures.

THINGS TO REMEMBER TO GET THROUGH

To learn and benefit from this module, follow the following steps:

1. Read the module title and the module introduction to get an idea of what the
module covers. Specifically, read all the sections of this module carefully. The
first section tells you what this module is all about while the second section
tells you of what you are expected to learn.

2. Never move on to the next page unless you have done what you are expected
to do in the previous page. Before you start each lesson, read first the
INSTRUCTIONS.

3. Work on the activities. Take note of the skills that each activity is helping you
to develop.

4. Take the Post-Test after you are done with all the lessons and activities in the
module.

5. Communicate with your teacher. Ask him/her about any difficulty or confusion
you have encountered in this module.

6. Finally, prepare and gather all your outputs and submit them to your teacher.

7. Please write all your answers of the tests, activities, exercises, and others on

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your separate activity notebook.

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 REMEMBER THIS

The most basic skill that a good student in creative writing has is a clear
understanding of what imaginative writing is all about and a thorough understanding
of the fundamental techniques of writing short paragraphs, fiction, poetry, and
drama.
For a student to appreciate the purpose of organization in management.
Organizing is the establishment of effective authority relationship among work mates
to effectively work together.

GOOD LUCK AS YOU BEGIN THIS MODULE!

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LESSON 1 NATURE AND TYPES OF
ORGANIZATIONS
Competency: Discuss the nature of organizations and distinguish the various types
of organization structures. ABM_AOM11-Ih-j-15,16

WHAT I NEED TO KNOW

At the end of this lesson, the learners are expected to:

1. discuss the nature of organizations.
2. distinguish the various types of organization structures.

WHAT I KNOW

Instructions: Recall what you learned about organizing. Answer the following
questions briefly.

1. Give the importance of organizing in business companies.

_
_
_.

2. Why should organizations be encouraged to have an organization chart?

_
_
_.

WHAT’S IN

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 Based on what you have learned in the previous module, how important
planning to organization managers?

Based on your own opinion, is there a clear relationship between planning and
performance? Take note for your answers.

WHAT’S NEW

Activity 1. Identify the following what is asked and find the answers in the box. Write
your answers on yellow paper.

Division of labor Specialization Integration

Coordination Organizing

1. It is the process in which different individuals and units

perform different task.
2. Involves assigning different tasks to different people in the
organization’s different work units.
3. Refers to procedure that connect the work activities of the
different work divisions/units of the firm in order to achieve its overall goal.
4. It involves assigning task, grouping task into departments,
delegating authority and allocating resources across the organization.
5. A process in the organization’s internal environment which
involves the collaboration and coordination of its different work.

WHAT IS IT

Nature of Organization

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 According to Bateman and Snell (2008), differentiation in organization involves
division of labor and specialization.

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Organizing involves assigning task, grouping task into departments, delegating

authority and allocating resources across the organization. During organizing
process, managers coordinate employees, resources, policies and procedures to
facilitate the goals identified in the plan.
 Division of Labor involves assigning different tasks to different people in
the organization’s different work units.
 Specialization is the process in which different individuals and units
perform different task.
Example: In a restaurant business, employees can be seen in the kitchen while
preparing foods, some are taking orders, others are cleaning the dining area, and a
manager assisting the whole team. While others are responsible for purchasing
goods, some are doing financial matters and others are responsible for their
research and advertisements. Their works are divided based on the skills of the
members of the group. That is the concrete example of division of labor and
specialization.
Integration of Work Units
Integration is a process in the organization’s internal environment which involves
the collaboration and coordination of its different work. On the other hand
coordination refers to the procedure that connect the work activities of the different
work divisions/units of the firm in order to achieve its overall goal. Works may be
divided but they must all be coordinated with each other in order to meet its overall
goals or objectives.

According to Priyali (2015), there are some common features of organization through
which is clear idea about its nature can be obtained. These are:

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1. Process: Organizing is process of defining, arranging and grouping the
activities of an organization to attain its goal.
2. Structure: The organization structure consists of a series of relationships at
all levels of authority with specific duties and responsibilities to be performed by
the individuals involved.
3. Grouping of Activities: Activities of an organization are required to be
distributed according to division of labor and specialization.
4. Accomplishments of Goals or Objectives: An organization structure has
no meaning or purpose unless it has clear-cut goals to achieve.
5. Authority-Responsibility Responsibility Relationship: An organization
cannot serve the specific purposes or goals unless some positions will be placed
above others and will be given authority to bind the organization by their decisions.
6. Human and Material Aspects: Organization deals with the human and
material factors in business.

TYPES OF ORGANIZATION STRUCTURES

Vertical Organization Structure- clears out issues related to authority rights,

responsibilities, and reporting relationships. Authority rights refer to the legitimate
rights of the individuals, appointed in position like President, Vice President,
Manager, and the like, to give orders to their subordinates, who in turn, report to
them what they have done. In short, vertical organization have top-down
management structure.
Figure 1.1 Organizational Chart with Vertical Structure
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Horizontal Organization Structure- refers to the departmental of an organization

into smaller work units as tasks become increasingly varied and numerous.
Horizontal organization have a flat structure that provides greater employee
autonomy, which means there are very few managers and more authority is granted
to rank-and-file employees. This system allows employees to feel empowered,
because they can make important decisions without needing approval from a
manager.

Types of Department

1. Line Department- authority originates at the top and moves downward in a line.
All managers perform line functions, which are functions that contribute directly to
company profits.

Figure 1.2 Example of Line Structure

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2. Staff Department- supports 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 subdivisions are formed based on specialized

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

 Divisional Approach, where departments are formed based on management

of their products, customers, or geographic areas covered.

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  Matrix Approach, is hybrid form of departmentalization where managers and
staff personnel report to the superiors, the functional manager and the
divisional manager.

Figure 1.3 Example of Line and Staff Department [Link]

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Network Organization Structure – is a collection of independent, usually single

function organizations/companies that work together in order to produce a product or
service. Such network organizations are each capable of doing their own specialized
work activities independently, like producing, distributing, designing, etc., but capable
of working effectively.

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Figure 1.4 Example of Network Organization Structure
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WHAT’S MORE

Activity 2. Get a copy of a big organization’s organization chart through the internet and compare i

WHAT I HAVE LEARNED

Activity 3. Answer the questions briefly.

What have you learned about the nature of organizations?

_
_
_

WHAT I CAN DO

Activity 4. If you are to create a business venture in the future, what would it be?
Make an organizational chart of your business venture and discuss the role of each
of the positions included in your organizational chart. (Read the rubrics for this
activity as your guide).

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Business Name: _

Rubrics for Activity 4

Criteria Score
Orderliness 5 4 3 2 1
The procedure was followed correctly.

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 Accuracy 5 4 3 2 1
The information in the chart are ALL CORRECT.
Neatness 5 4 3 2 1
The output is neat and legible.
Creativeness 5 4 3 2 1
The output is presentable and has an impact to the
evaluator.
Originality and Precision 5 4 3 2 1
The content of the output is correct and it was not
copied from other outputs.

ASSESSMENT

Direction: Read the following questions below and choose the correct answer. Write
your answers on a yellow paper.

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

relationships.
a. Line Structure b. Vertical Structure
c. Horizontal Structure d. Line and Staff
2. It involves assigning task, grouping task into department, delegating authority and
allocating resources across the organization.
a. Organizing b. Planning c. Specialization d. Coordination
3. Authority originates at the top and moves downward in a line.
a. Line Structure b. Vertical Structure
c. Horizontal Structure d. Line and Staff
4. Subdivisions are formed based on specialized activities such as marketing,
production, financial management and human resources management.
a. Functional Approach b. Divisional Approach
c. Matrix Approach d. None of the Above
5. Refers to procedure that connect the work activities of different work
divisions/units of the firm in order to achieve its overall goal.

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a. Integration b. Coordination c. Specialization d. Organizing
6. Formed based on management of their products, customers, geographic areas
covered.
a. Functional Approach b. Divisional Approach
c. Matrix Approach d. None of the Above
7. Hybrid form of departmentalization where managers and staff personnel report to
superiors.
a. Functional Approach b. Divisional Approach
c. Matrix Approach d. None of the Above
8. Refers to departmentalization of an organization into smaller units as task become
increasingly varied and numerous.
a. Line Structure b. Vertical Structure
c. Horizontal Structure d. Line and Staff
9. These departments help the line department do their job and generally specialist
in one field where authority is normally limited to making recommendations to line
managers.
a. Line Department b. Staff Department
c. Matrix Approach d. Divisional Approach
10. It is a collection of independent, usually single function organizations/companies
that work together in order to produce a product or service.
a. Network Structure b. Horizontal Structure
c. Vertical Structure d. Organizing

ADDITIONAL ACTIVITIES

Construct an organization chart of your school’s senior high school department.

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You are now done with the lesson for Module 5.
Congratulations and keep
going!!! It’s time to proceed to
Module 6.

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REFERENCES:

Helena Ma. F. Cabrera, PhD, Anthony DC. Altarejos, PhD, and Riaz Benjamin, 2016,
Organization and Management, Textbook, Quezon City, Philippines:Vibal
Group, Inc.

Internet Sources:

[Link]
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[Link]
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[Link]
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[Link]
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ANSWER KEY:

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For inquiries or feedback, please write or call: Department of Education – Division of Misamis
Office Address:Del Pilar corner Velez Street, Brgy. 29, Cagayan de
Oro City 9000
Telefax:(088) 881-3094 | Text: 0917-8992245 (Globe) E-mail Address:

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