FIRST GRADING - GRADE 11

Organization and Management

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This module was carefully examined and revised in accordance with the
standards prescribed by the DepEd Region 4A and Curriculum and Learning
Management Division CALABARZON . All parts and sections of the module are
assured not to have violated any rules stated in the Intellectual Property Rights
for learning standards.

The Editors

PIVOT 4A CALABARZON
PIVOT 4A Learner’s Material
Quarter 2

Organization
and Management
Grade 11

Regional Office Management and Development Job S. Zape, Jr.,

Team:
Fe M. Ong-Ongowan, Lhovie A. Cauilan, Eugene Ray F. Santos

Schools Division Office Management Team: Rosemarie Blando, August Jamora,

Marissa Valle

Organization and Management

PIVOT IV-A Learner’s Material
Quarter 1, Version 1.0
First Edition, 2020

Published by: Department of Education Region IV-A CALABARZON

Regional Director: Wilfredo E. Cabral
Assistant Regional Director: Ruth L. Fuentes
 Guide in Using PIVOT Learner’s Material

For the Parents/Guardian

This module aims to assist you, dear parents, guardians, or

siblings of the learners, to understand how materials and activities
are used in the new normal. It is designed to provide the information,
activities, and new learning that learners need to work on.

Activities presented in this module are based on the Most

Essential Learning Competencies (MELCs) in Organization and
Management as prescribed by the Department of Education.

Further, this learning resource hopes to engage the learners in

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.

You are expected to assist the child in the tasks and ensure the
learner’s mastery of the subject matter. Be reminded that learners
have to answer all the activities in their own notebook.

For the Learners

The module is designed to suit your needs and interests using

the IDEA instructional process. This will help you attain the
prescribed grade-level knowledge, skills, attitude, and values at your
own pace outside the normal classroom setting.

The module is composed of different types of activities that are

arranged according to graduated levels of difficulty—from simple to
complex. You are expected to answer all activities on separate
sheets of paper and submit the outputs to your respective teachers
on the time and date agreed upon.

PIVOT 4A CALABARZON
 PARTS OF PIVOT LEARNER’S MATERIAL

Parts of the LM Description

What I need to
know The teacher utilizes appropriate strategies in presenting
Introduction

the MELC and desired learning outcomes for the day or

week, purpose of the lesson, core content and
relevant samples. This allows teachers to maximize
learners awareness of their own knowledge as regards
content and skills required for the lesson
What is new

The teacher presents activities, tasks , contents of

What I know
Development

value and interest to the learners. This shall expose the

learners on what he/she knew, what he /she does not
know and what she/he wanted to know and learn. Most
What is in of the activities and tasks must simply and
directly revolve around the concepts to develop and
master the skills or the MELC.
What is it

The teacher allows the learners to be engaged in

What is more
various tasks and opportunities in building their KSA’s to
meaningfully connect their learnings after doing the
Engagement

tasks in the D. This part exposes the learner to real life

situations /tasks that shall ignite his/ her interests to meet
What I can do the expectation, make their performance
satisfactory or produce a product or performance
which lead him/ her to understand fully the skills and
What else I can concepts .
do

The teacher brings the learners to a process where

What I have they shall demonstrate ideas, interpretation, mindset or
Assimilation

learned values and create pieces of information that will form

part of their knowledge in reflecting, relating or using it
effectively in any situation or context. This part
encourages learners in creating conceptual structures
What I can
giving them the avenue to integrate new and old
achieve
learnings.

PIVOT 4A CALABARZON
WEEKS
1-2 Nature and Concept of Management
Lesson
I
This lesson focuses on the definition and function of management, the
evolution of management theories, and the functions, roles and skills of a
manager.

The act of getting people together to accomplish desired goals and

objectives using available resources efficiently and effectively in all business and
organizational activities is management. Since organizations can be viewed as
systems, management can also be defined as human action (including design) to
facilitate the production of useful outcomes from a system.

In order to coordinate the activities of a business and make sure all

employees are working together toward the accomplishment of organization’s
goals, good management is needed.

At the end of the lesson, you are expected to: explain the meaning,
functions, types and theories of management; and explain the functions, roles
and skills of a manager.

D
What is Management?
 It is the process of planning, organizing, leading and controlling human and
other organizational resources towards the effective achievement of
organizational goals.
 The process of coordinating and overseeing the work performance of
individuals working together in an organization to effectively accomplish their
chosen objectives.

Function of Management
Management functions include planning, organizing, staffing, leading or
directing, and controlling an organization (a group of one or more people
or entities) or effort for the purpose of accomplishing a goal.

Planning refers to deciding on an organization’s goals and strategies such

defining goals, establishing strategy and developing sub plans to choose
alternatives and coordinate activities.

PIVOT 4A CALABARZON 6
 Organizing is ensuring that tasks have been assigned and the structure of
organizational relationships facilitates meeting goal like deciding where decisions
will be made, who will do the jobs and tasks, and who will work for whom.

Staffing is the filling-up of different job positions as needed in the

organization’s structure.

Leading refers to relating with others so that their work efforts achieve
organizational goals by means of motivating and inspiring your fellow coworkers.

Controlling is ensuring actions are consistent the organization’s values and

standards. Monitoring progress towards goal achievement and taking corrective
action when needed.

Management Theories

Management theories involve the improvement of work management

methods from simple to more complex ones which also focus on customer
satisfaction and conduct of people at work. It will help us understand the
beginning and present-day management practices---why some are no longer use
and others are still regarded with great approval; and why the expansion and
development of these theories are important to adjust to the changing times.
Management theories include the following:

A. Scientific Management Theory makes use of procedural and scientific

methods for finding the single best way for doing a job. The father of scientific
method is Frederick W. Taylor (1856-1915).

Taylor’s Scientific Management Principles (Robbins and Coutler 2009) are as

follows:

1. develop a science for each element of an individuals work to replace the

old rule of thumb method;
2. scientifically select and then train, teach and develop the worker;
3. heartily cooperate with workers so as to ensure all work will be done in
accordance with the principles of science that has been developed; and
4. division of work and responsibility equally between management and
workers.

B. General Administrative Theory makes up good management practice or

execution and focuses on management function. The characters most
commonly involved with the General Administrative Theory were Henri Fayol
(1841-1925) and Max Weber (1864-1920). Fayol concentrates on managerial
activities because of his actual experience as management director in a big
coal mining company. He understood that management is an activity that all
organization must adapt and viewed it as distinct from all other organizational
activities such as marketing, finance, research and development and others.
While Weber, a German sociologist, concentrates on authority structures and
coordination with others known as bureaucracy and it is still used of the
today’s organization.

7 PIVOT 4A CALABARZON
 Henri Fayol’s Management Principles Max Weber’s Bureaucracy
1. Work division or specialization
2. Authority According to Weber,
bureaucracy is an
3. Discipline
organizational form
4. Unity of command imposed by the following
5. Subordination of individual interest to general interest components:
6. Unity of direction  division of labor
7. Remuneration pay  h i e r a r c h i c a l
8. Centralization identification of job
positions
9. Scalar chain of authority  detailed rules and
10. Maintenance in order regulation
11. Equality/fairness  impersonal connections
12. Stability/security of tenure of workers with one another
13. Employee initiative
14. Promotion of team spirit or “esprit de corps”

Total Quality Management

Total Quality Management is a management philosophy that focuses on

the satisfaction of customers, their needs, and expectations. Quality experts were
W. Edwards Deming (1900-1993) and Joseph M. Juran (1904—2008) introduced
this customer-oriented idea in the 1950s and during that time it has few
supporters. The Japanese were the one who took notice TQM and wholeheartedly
experimented on it. So they were recognized for their quality products and the
Western managers were forced to seriously consider the Deming’s and Juran’s
theory and TQM philosophy became the foundation of today’s quality
management practices.
Fitness of Quality According
Deming’s 14 Points for Top Management to Juran
1. Create constancy of purpose for improvement of 1. Quality of Design—through market
products and services research, product and concept
2. Adopt the new TQM philosophy 2. Quality of conformance—through
3. Cease dependence on mass inspection by management, manpower, and
doing things right and doing it right the first technology
time. 3. Availability—through reliability,
4. End the practice of awarding business on the maintainability, and logistic
basis of price tag alone support
5. Constantly improve the system of production 4. Full service—through promptness,
and services competence, and integrity
6. Institute training
7. Adopt and institute leadership Juran’s Quality Roadmap
8. Drive out fear 1. Identify your customers
9. Breakdown barriers between staff areas 2. Determine their needs
10. Eliminate slogans, focus on correction of 3. Translate them into one’s language
defects in the system 4. Develop a product that can
11. Eliminate numerical quota for the work force respond to needs
12. Remove barriers that rob people of “pride of 5. Develop processes which are able
workmanship” to produce those product features
13. Encourage education and self-improvement for 6. Prove that the process can
everyone produce the product
14. Take action to accomplish the transformation 7. Transfer the resulting plans to the
operating forces

PIVOT 4A CALABARZON 8
Organizational Behavior (OB) Approach

Organizational Behavior (OB) Approach involves the study of conduct,

demeanor, or action of people at work. Leading, team building, resolving conflict,
and others were the result of research on behavior that helps the manager to
carry out their functions. The early supporter of the this approach were Robert
Owen, Mary Parker Follett, Hugo Munsterberg and Chester Bernard. Distressed
status in workplaces and ideal improvement of those conditions were noticed and
proposed by Owen during the late 1700s. The idea that the individual or group
behavior must be considered in organizational management was introduced by
Follet in the early 1900s. The administering of psychological tests fro the
selection of would-be employees in companies were proposed by Munsterberg.
And in 1930s, cooperation is required in organizations since it is mainly a social
system which was suggested by Barnard.

Learning Task 1: Think of a difficult task which you as a learner had

accomplished. Identify the steps you took in completing the said task. Would the
management function and theories discussed earlier help you in becoming more
efficient in completing the task? Explain your answer in your notebook.

Functions, Roles, and Skills of a Manager

Manager is an individual engaged in the management activities of a

business entity whether a profit or non-profit organization. The success of an
organization is dependent on the managers maximizes his/her capability in doing
business.

Managerial Roles and Functions

Top-level managers, also known as corporate managers, are the general or the
strategic managers who focus on long-term organizational concerns and
emphasize the organization’s stability, development, progress, and overall
efficiency and effectiveness.

Middle-level managers, also known as tactical managers, are the tactical

managers in charge of the organization’s middle levels or departments. They
formulate specific objectives and activities based on the strategic goals and
objectives developed by the top-level managers.

Frontline or lower-level managers, also known as operational managers, are

responsible for supervising the day-to-day activities of the organization.

9 PIVOT 4A CALABARZON
 Managerial roles are classified into three types according to Henry
Mintzberg: interpersonal (leader, liaison, figurehead), informational
(spokesperson, monitor, disseminator) and decisional or decision-making
(negotiator, disturbance handler, resource allocator and entrepreneur).

Managerial skills are classified as conceptual skills, human skills and

technical skills.

 Conceptual skills enable managers to think of possible solutions to

complex problems.

 Human skills enable managers in all levels to relate well with people.

 Technical skills are important for managers for them to perform their
tasks with proficiency with the use of their expertise.

Learning Task 2: Give at least three companies that are popular nowadays.
Name their CEOs/owners/presidents. Cite the different roles, function, and
skills that they perform in running their business. Do this in your notebook.

E
Learning Task 3: Illustrate how managers could get involved with team as team
leaders/supervisor or facilitator of a team acting a specific task force, helpful
participant in a team project, and external coach/sponsor of a problem solving
team. Correct positioning of the manager and the team members indicate the
manager’s involvement/role in teamwork. You may ask any of your family
members in doing this activity. Do this in your notebook.

Learning Task 4: Understanding the foundations for Managerial Success.

Assess if you agree o disagree with the statements below. Write your answers in
your notebook.
Successful Managers are those who:
1. Look after their self-interest first.
2. Inspire their subordinates to do their best in assigned tasks.
3. Can craft messages that could be understood clearly by subordinates
4. Have self-discipline
5. Believe in using punishment to make subordinates follow
6. Work well with others
7. Do not believe in due process
8. Practice logical thinking before decision-making
9. Always consider the “general good”
10. Have the ability to listen what others seek to communicate
11. Respect everyone and has the ability to maintain career advancement.
12. Generally “go the extra mile” for those around him or her

PIVOT 4A CALABARZON 10
 A
Learning Task 5: Identify the word or group of words being described using the
suggested answers below.

Evolution Max Weber Japanese Human Skills

Organization Scientific Management Theory Tactical Managers
Henry Mintzberg General Administrative Theory CEO

1. It is the theory authored by Frederick W. Taylor.

2. The one who applied TQM in manufacturing their products.
3. The German sociologist who wrote about bureaucracy.
4. This theory concentrates on the manager’s functions and what makes up
good management practice.
5. It is usually defined as slow stages of growth and development.
6. Demands assigning task, setting side funds, and bringing harmonious
relations among co-workers.
7. These enable managers in all levels to relate well with people.
8. It also refers to middle-level managers.
9. It refers to an individual engaged in management activities
10. According to him, managerial roles are classified into three types.
11. Example of this includes top-level managers in a big organization.
12. It refers to one of the classifications of managerial roles composed of leader,
liaison, and figurehead .

11 PIVOT 4A CALABARZON
WEEKS Environmental Forces
3-5 and Environmental Scanning
Lesson
I
This lesson includes environmental forces and scanning, local and
international business environment of the firm and phases of economic
development.

One of the major considerations in setting up a business organization is the

surrounding or place of your business. External and internal forces within the
environment will affect the business whether positive or negative.

At the end of the lesson, you are expected to analyze various forces/
elements influencing local and international business environment using PEST
and SWOT strategies; analyze the forms and economic roles of business
organizations; and differentiate the phases of economic development and its
impact to business environment.

D
Environmental Forces and Scanning

Environmental scanning seeks for and sorts through data about the
environment.

The business environment is classified into two: the external business

environment, which refers to factors/elements outside the organization, may
affect, either positively or negatively, the performance of the organization; while
internal business environment, which refers to factors/elements within the
organization, may affect, either positively or negatively, the performance of the
organization.

Components of the External Business Environment

The general business environment includes:

 Economic situations may affect management practices in organizations like

cost-cutting being implemented in the organization or postponement of the
distribution of company’s bonus to their employees.
 Sociocultural situations include the customer’s changing values and
preferences such as being health conscious. Many food companies now
make sure that the products they are offering in the public are
cholesterol-free or low in cholesterol so as not to lose their customers.
 Politicolegal situations refer to national or local laws, international laws,
and rules and regulations that influence organizational management. For
example, corporate laws where the foreigners are allowed to invest 60% in
Philippine corporations.

PIVOT 4A CALABARZON 12
 Technological situations involve the use of varied types of electronic
gadget within the organization. Technology is vital for competitive advantage, and
is a major driver of globalization.

World and ecological situations are related to the increasing number of

global competitors and markets, including the nature and conditions of the
changing natural environment. For example, during this time of pandemic,
manufacturers tend to produce more bicycles since there is no public
transportation available.

Specific Business Environment

1. Stakeholders are parties likely affected by the activities of the organizations

2. Customers are those who patronize/buy products and services of the
business.
3. Suppliers are those who ensure availability/delivery of the products to their
customers
4. Pressure groups are special interest-groups that try to exert influence on the
organization’s decisions or actions.
5. Investors or owners provide the company with the financial supports it
needs.
6. Employees work for the company in exchange of salaries/wages or other
considerations.

Components of the Internal Business Environment

SWOT is a business or strategic planning technique used to summarize

the key components of your strategic environments. The internal business
environment (strength and weaknesses, opportunities and threats) includes the
organizations’ resources, research and development, production, procurement of
supplies, and products and services offered.

The components of environmental scanning are the development of a

competitive mindset, considering of future business scenarios, business
predictions/forecasting and benchmarking.

Benchmarking is the process of measuring or comparing one’s own

products, services, and practices with those of the recognized industry leaders in
order to identify areas for improvement.

Forms of Business Organizations

 Organization refer to a goal-directed (planning), deliberately-structured

(organizing) group of people working together (leading) to achieve results
(controlling).
 Business organization is a collection of people working together to achieve a
common purpose in relation to their organization’s mission, vision, goals, and
objectives, sharing a common organizational culture.
 Organizational culture encompasses values and behaviors that contribute to
the unique social and psychological environment of a business.

13 PIVOT 4A CALABARZON
Business organizations are as follows:

1. Simple business organizations are organizations with few departments,

centralized authority with a wide span of control/and with few formal rules and
regulations like single proprietorships.
2. Functional business organizations are business organizations that group
together those with similar or related specialized duties that introduce the
concept of delegation of authority to functional managers like the personnel
managers, but also CEOs to retain authority for strategic decisions like
partnerships.
3. Divisional business organizations are made up of separate business units
that are semiautonomous ore semi-dependent with a division head responsible
for his/her unit’s performance like corporations.
4. Profit business organizations are designed for the purpose of achieving their
organization’s mission, vision, goals, and objectives and maintaining their
organizational stability through income generation and profit making activities
like Jollibee, Globe Telecoms, GMA 7 and many others.
5. Non-profit organizations are designed for the purpose of achieving their
organization’s mission, vision, goals and objectives, providing service to clients
without expecting monetary gains or financial benefits for their endeavors like
ABS-CBN Foundation, cooperatives, Philippine Charity Sweepstakes Office.
6. Open/Flexible business organizations are formed to meet today’s changing
work environment like those in BPO or call center.

Other business forms that emerged due to changing work environment are:
 team structures are small but focused like in collection purposes only;
 matrix business organizations composed of experts and specialist
belonging to different department but work together as one in a project
assigned to them;
 project business structure works on a project basis only;
 boundaryless business organizations described to be flexible and
unstructured, no barriers to information flow, completion of work is fast;
 virtual business organizations workers are on a temporary basis to work
on assigned projects and usually communicate electronically.

Phases of Economic Development

 Economic Development is a process by which the economic well being and

quality of life of a nation are improved according to targeted goals and
objectives but also consider the social, political, cultural, and spiritual
aspects of the country’s growth.
 Economic Development Phases are the stages involved in the total
process of economic development in a particular country which include
economic growth, improvement of human development index, availability of
benefits provided by science and technology, and the societal improvement
of the opportunities and general welfare of its members.
 Human Development Index is a measure of a country’s socio-economic
and development based on data regarding life experiences and status of
people.

PIVOT 4A CALABARZON 14
Phases of Economic Development

1. Sustainable economic development ensures that the presents needs of a

particular generation are met in full without endangering the ability of
future generations to also fully meet their own needs. Business managers
must be aware of their economic decisions that it will not endanger the life
of our mother earth.
2. Human Development Index—is a measure of a country’s socio-economic
and development based on data regarding life expectancy at birth,
educational attainment, literacy, and adjusted real income per capita.
3. Availability of benefits provided by science and technology has something
to do with the different tools and equipment, inventions that makes the life
of the people easier to cope with. Like the provision of solar energy where it
is being provided to people who are living in remote place where there is no
electricity available. There are companies who engaged in this kind of
business.
4. Societal improvement of the opportunities and general welfare of its member
through the policy recommendations of different government institutions
that may help boost their life through improvement of business and job
opportunities and job quality, enhancement of skills for better productivity,
better wages and the management of labor. Managers must ensure the
improvement of managing their business, skills and training and education
of human resources to be able to cope with the changes and challenges in
the business arena.

E
Learning Task 1: Answer the questions below. Write your answers in your
notebook.

1. Who are the stakeholders of your school? Give specific examples and state
why they are important for the maintenance of your school’s stability as a
non-profit organization.
2. Why should business professionals consider future business scenarios? Will
you make use of this as a business professional in the future? Explain your
answer.

Learning Task 2: In your notebook, do the activity below.

1. Use colored pencils to show the diagrammatic framework of the firm and its
competitive environment forces in a one whole sheet of bond paper. Paste it
after in your notebook.
2. Identify and list down the customers, rival firms, new entrants and suppliers
of Philippine Airlines (PAL) or any known Philippine company.

15 PIVOT 4A CALABARZON
Learning Task 3: Give at least two (2) examples of business that falls under the
new forms of business organizations in the Philippines. Do this in your notebook.

A
Learning Task 4: Identify what is referred to by each statement below. Write
your answers in your notebook.

1. It includes the customer’s changing values and preferences.

2. Marketers need to consider the state of a trading economy in the short and
long-terms. This is especially true when planning for international
marketing .
3. It has a huge influence upon the regulation of businesses, and the spending
power of consumers and other businesses.
4. It also known as business forecasting.
5. It is defined as process of measuring or comparing one’s own products
services, and practices with those of the recognized industry leaders in order
to identify areas for improvement.
6. Business organizations maintain their stability through income generation.
7. Business organizations whose design is flexible and unstructured.
8. A process which includes not only economic growth but also social, political,
cultural, etc.
9. He/She is known as the first development economist.
10. It is concerned with the data on life expectancy, education, literacy, etc. of
the people.
11. It stands for the acronym ASEAN.
12. It refers to growth that is rapid enough to matter.
13. They are comprised of those who work for another or for an employer in
exchanges of salaries/wages or other considerations.
14. It is composed of stages involved in the total process of economic
development.
15. These refer to business organizations with few departments.
16. These refer to parties likely to be affected by the activities of the organization.
17. They are special interest groups that try to exert influence on organization’s
decisions or actions.

PIVOT 4A CALABARZON 16
 WEEK
Nature, Levels and Types of Planning 6

Lesson
I
In this lesson, you will be introduced to the concepts about planning the
first management function. Planning must be done ahead of time to avoid
uncertainties in every activity where business organizations are involved.

When it comes to external and internal forces of environment, planning is

a must so as not to be affected negatively or positively.

At the end of the lesson, you are expected to discuss the nature and
levels of planning and types of plans .

D
Definition and Nature of Planning

Planning is the process of determining objectives and organizational

goals, establishing strategies for accomplishments those goals and developing,
integrating coordinated activities in the organizations to achieve those goals. It
is also the crucial and essential part of management. Planning is important for
the following reasons:

 Planning is important. It provides direction to all of the organization’s

human resources; managers and employees; and it reduces uncertainty and
minimizes waste of time, effort and resources; and establishing goals and
standards during planning may be used for controlling, another managerial
function.

 Without planning, goals and standards will not be present and controlling
will not be possible since there will be no standard to compare or assess
work effort with.

Difference between Goals and Plans

Goals are targets that management desires to reach; the desired results
or objectives that members in an organization are pursuing.

Plans are best described as steps and actions that are required to
achieve goals.

17 PIVOT 4A CALABARZON
Types of Plans

1. Organizational Plans can be generally described in terms of

comprehensiveness, length of time covered or time frame, specificity, and
frequency of use.

 Comprehensiveness refers to the completeness of planning coverage like

plans that cover the entire organization is called strategic plans, up to
operational plans that apply to a particular operational area only. The
more comprehensive the plan is, the better.
 Plans can be short term which is good for one year or less, or may be long
term which is up to three years.
 Specificity refers to very detailed, clearly defined plans where objectives
are clearly stated and could easily be understood.
 Frequency of use refers to the number of times or instances a plan may
be used.

2. Strategic plans establish the organization’s overall goals and apply to the
entire team; The CEO, president or the general manager of the firm are the
one responsible for the scope of this plan which is broad in nature.
3. Operational plans are plans that apply only to a particular unit or area and
narrow in scope.
4. Long-term plans are plans that go beyond three years.
5. Short term plans are plans that cover a year or less.
6. Directional plans are plans that are flexible or give general guidelines only.
7. Specific plans are plans that are clearly stated and which have no room for
interpretation. Language used must be simple and understandable.
8. Single-use plans are plans used or stated once only as they apply to the
entire organizations.
9. Standing plans are plans that are ongoing or to the identified activities of op-
erational plans.

Steps in Planning

1. Setting an organization’s overarching mission and vision

2. Setting strategic goals and plans
3. Taking the strategic goals and plans and putting them into practice in
everyday operations
4. Implementing and monitoring the goals and plans

PIVOT 4A CALABARZON 18
 Overview of the Planning Process

Managerial Level of
Steps in Planning Time Frame/Duration
Particular Relevance
1. Set mission/vision Top Very long terms 5-10 years
2. Set strategic goals/plans Top/middle -5 years

3. Set operations goals/ Middle/lower Annually/quarterly

plans
4. Monitor Everyone Ongoing/monthly/quarterly/
annually

Levels of Planning in the Firm

Different levels in the firm are:

1. Top-level Management Planning (Strategic Planning) starts with defining
the organization’s goals/objective, the major targets related to the
maintenance of the organization’s stability, and it’s organizational culture,
values, and growth improving it’s productivity, profitability, effectiveness and
efficiency.
2. Middle-level Management Planning (Tactical Planning) refers to set of
procedures for changing or transforming broad strategic goals and plans into
specific goals and plans that are applicable and needed in one unit/portion of
the organization.
3. Frontline/Lower-level Management Planning (Operational Planning)
involves identifying the specific procedures and processes required at the
lower levels of the organization. It also involves routine tasks or tasks
repeatedly done by the organization’s lower level units.

E
Learning Task 1: Do the following activities below in your notebook:

1. Set goals or targets for a student like you. List them down.
2. Look ahead. List possible future changes in your goals or targets that you
made in number 1.

Learning Task 2: Perform the tasks below in your notebook.

1. Choose one of the formal goals you have in the family. List down at least 3
operational plans that will enable you and your family to achieve this chosen
goal.
2. Describe how your family can effectively prepare the three operational plans
listed in number 1.

19 PIVOT 4A CALABARZON
Learning Task 3: Do the tasks below in your notebook.

1. Describe the present day organizational planning. Is it rigid or flexible

especially during this time of pandemic?
2. Explain the relationship between planning and communication.
3. Assuming you are part of a successful company like PLDT, what changes
would you recommend so that every household would have their internet
connections without any problem. To whom would you address your
recommendations? Why?

Learning Task 4: In your notebook, use colored pencil or ballpen to show, by

using arrows, the relationship among Strategic Planning, Tactical Planning and
Operational Planning. Also, indicate, beside each plan, the managers who are
tasked to prepare the said plans.

Learning Task 5: In your notebook, state at least one long-term plan for a hotel
service business with corresponding tactical and operational plans to achieve
them.

A
Learning Task 6: Match the item in Column 1 with the items in Column 2.
Write the letters of your answers in your notebook.

Column 1 Column 2

______1. cover 1 year or less A. Directional plans

______2. apply to a particular unit area only B. Standing plans
______3. refers to completeness of planning coverage C. Long-term plans
______4. clearly stated in understandable language D. Short-term plans
______5. states organization’s over-all goals E. Specific plans
______6. stated once only F. Strategic plans
______7. number of months or years covered G. Operational Plans
______8. gives general guidelines H. Single-use plans
______9. on-going plans I. Comprehensiveness
______10. go beyond 3 years J. Time frame
______11. focused on major actions K. Tactical Planning
______12. involves routine tasks L. Operational planning
______13. first management function M. Planning

PIVOT 4A CALABARZON 20
 WEEK
Planning Techniques and Tools 7
Lesson
I
This lesson includes the appropriate planning techniques and tools and

their application in business decision-making and techniques that will help

management achieved its goals in ever changing environment.

At the end of the lesson, you are expected to apply appropriate planning

techniques and tools in business decision-making.

D
For successful planning in today’s ever changing environment, tool and
techniques are necessary to achieve one’s goal. In this connection, you will be
studying the planning techniques and tools and their application in making
business decision like forecasting.

Forecasting is an attempt to predict what may happen in the future. It

may be either quantitative or qualitative. Opinions of prominent economists are
used in qualitative forecasts while mathematical calculations and statistical
analyses of surveys/researches are in quantitative forecasts.

Making Forecasting more Effective

1. Use simple forecasting methods.

2. Compare each forecast with its corresponding “no change” forecast.
3. Do not rely on a single forecasting method.
4. Do not assume that the turning point in a trend can be accurately identified.
5. Shorten the time period covered by a forecast.
6. Remember that forecasting is a developed managerial skill that supports
decision making.

Contingency Plans

Contingency plans must be prepared by managers, ready for

implementation when things do not turn out as they should be. Contingency
factors (also known as trigger point) may offer alternative courses of action
when the unexpected happen or when things go wrong. It also indicates when
the prepared alternative plan should be implemented.

21 PIVOT 4A CALABARZON
Scenario Planning
Scenario planning for future states of affairs is a long-term version of
contingency planning. Scenario planning is a big help for organizations because
it allows them to plan ahead and make necessary adjustments in their strategies
and operations. Example of changes or challenges that may arise in future
scenarios are environmental pollution, human rights violations, climate and
weather changes, earthquake and volcanic eruptions that damage the
communities and human life.

Benchmarking
Benchmarking is a technique that generally involves external comparisons
of a company’s practices and technologies with those of other companies. Its
main purpose is to find out what other people and organization do well and then
plan how to incorporate these practices into the company’s operations. A
common benchmarking technique is to search for the best practices used by
other organizations that enabled them to achieve superior performance which is
also known as external benchmarking. Internal benchmarking is also
practiced by some organizations when they encourage all their employees
working in their different work units to learn and improve by sharing one
another's best practices.

Steps in Benchmarking

1. Identify what is to benchmarked, compare organizations and data collection

method.
2. Form a benchmarking planning team.
3. Analyze data and identify performance gaps.
4. Prepare and implement action plan.

Participatory Planning
Participatory planning process that includes the people who will be
affected by the plans and those who will be asked to implement them in all
planning steps. The positive result of planning technique are creativity,
increased acceptance and understanding of plans, and commitment to the
success of plans.

Linear Programming
Linear programming is a method of solving limited resources allocated
between two variables where the goal is optimization such that the change in
variable is accompanied by an exactly proportional change in the other.

Scheduling
Scheduling is the process of formulating a detailed listing of activities that
must be accomplished to attain an objective, allocating the resources necessary
to attain the objective and setting up the timetables for completing the
objectives.

Gantt Chart
Gantt chart is a scheduling device developed by Henry Gantt is essentially
a bar graph with time on the horizontal axis and the resource to be scheduled in
the vertical axis. It is used for scheduling resources including management
system such as human resources and machines.

PIVOT 4A CALABARZON 22
Decision-Making
Decision-making is a process which begins with problem identification and
ends with the evaluation of implemented solution or the choosing of appropriate
alternative solution.

Types of Decisions

1. Structured or programmed decision is a decision that is repetitive and can

be handled by using a routine approached. Example: a restaurant customer
complains because of dirty utensils to the waiter where standardized solution
is available.
2. Unstructured or non-programmed decision is applied to the resolution of
problems that are new or unusual, and for which information is incomplete.
Example: A supervisor was asked to hire additional employee by the customer
because of poor service, cannot be done at once because it entails careful
planning before hiring another employee.

Types of Decision-making Conditions

1. Certainty conditions are ideal conditions in deciding problems; when the

results of all alternatives are known, the manager can make a precise
decision. Example: bank interest to all depositors depending on the type of
investment they are going to acquire.
2. Risk or uncertainty conditions are more common decisions to deciding
problems which depend on historical data and experiences and other
secondary information as bases for decision-making including risk factors.

E
Learning Task 1: In your notebook, answer the questions below.

1. What are the useful planning tools and techniques that are being used in
business organization? Define each.
2. In your own opinion, which is a better planning tool: benchmarking or
forecasting? Support your answer.
3. How are you going to make your forecast more effective? Give a concrete
example.

Learning Task 2: Do the following in your notebook:

1. Give some examples of changes or challenges other than those mentioned in

our discussion that may occur in the future scenarios.
2. Give at least five (5) business forecasts that may occur in the Philippines
three years from now. You may use qualitative or quantitative forecasting.
3. How benchmarking can be used by the owner/manager of a fast food chain?
Explain your answer.

23 PIVOT 4A CALABARZON
 A
Learning Task 3: Choose the letter that corresponds to your answer. Write your
answers in your notebook.

1. It is the attempt to predict what may happen in the future.

a. Fortune telling b. Forecasting c. Predicting d. Prophecy

2. It involves comparison of best practices outside the business organization.

a. Benching b. Benchmarking c. Standard d. touchtone

3. It refers to ideal conditions in which the manager can make precise decision
a. Certainty b. unstructured c. Uncertainty d. structured

4. It is the decision that is repetitive.

a. Certainty b. unstructured c. Uncertainty d. structured

5. It includes the people who will be affected by the plans.

a. Benchmarking b. Participatory c. Forecasting d. Contingency

6. Prepared by the managers when things do not turn out as they should be.
a. Benchmarking b. Participatory c. Forecasting d. Contingency

7. It refers to the long-term version of contingency plan.

a. Participatory b. Scenario c. Benchmarking d. Forecasting

8. It is the method of solving limited resources.

a. Budgeting b. Linear programming c. Scheduling d. Forecasting

9. It is the process of formulating a detailed listing of activities that must be

accomplished to attain an objective.
a. Budgeting b. Linear programming c. Scheduling d. Forecasting

10. It is the scheduling device developed by Henry Gantt.

a. Henry Gantt b. Henry Sy c. Duke Grantt d. Joby Miles

11. These refer to changes that may arise in future scenarios.

a. Pollution b. rights violation c. Climate change d. A, B & C

12. It refers to the positive result of planning technique.

a. communicating b. collaboration c. creativity d. character

13. These refer to the context of forecasting.

a. Quantitative b. Qualitative c. A & B d. Negative

14. It is a contingency factor when the prepared alternative plan should be

implemented
a. Trigger point b. Trigger c. Trigging device d. A & B

15. It refers to more common decision in deciding problems.

a. Certainty b. Uncertainty c. Risk d. B & C

PIVOT 4A CALABARZON 24
 WEEK
Nature and Types of Organization 8
Lesson
I
This lesson includes studying the definition of organization, its nature

and types of organization structure.

Managers may start to organize once plan has been created. Even if the

manager is good in planning but cannot organize it well is nothing. They must

go hand-in-hand for the betterment of every business entity.

At the end of the lesson, you are expected to analyze the nature of

organization, its types and organization structures.

D
Nature of Organization

An organization is a collection of people or groups of people or groups of

people working together to achieve a common goal. It is also a cooperative social
system of two or more people with a common purpose.

Common Characteristics of Organizations

 Coordination of Effort. Multiplying individual contributions to achieve

results greater than those possible by individuals working alone
 Common goal or purpose refers to having a focus to strive for something
of mutual interest.
 Division of labor is dividing tasks into specialized jobs that use human
resources efficiently. Specialization is the process in which different
individuals and units perform different tasks.
 Hierarchy of authority uses a chain of command to control and direct the
actions of others.
 Integration of Work Units
 Integration is another process in the organization’s internal environment
which involves the collaboration and coordination of its different work
division units or work divisions.
 Coordination refers to the procedures that connect the work activities of
the different work division/units of the firm in order to achieve its overall
goal. It also implies the smooth working together of the different
composing elements.
 Structural mechanisms may be devised in order to increase collaboration
and coordination. The greater need for integration arises, when
organization highly differentiated.

25 PIVOT 4A CALABARZON
Types of Organization Structures

When a business is set up and developed, a fixed form of internal structure

follows. There are several distinct types of organization developed during the
growth of business of which the most common are vertical, horizontal and
network structures.

A. Vertical Structure

It clears out issues related to authority rights, responsibilities and

reporting relationships. Authority rights refers to the legitimate rights of an
individual appointed in positions like president, vice president, manager, and the
like, to give order to their subordinates who in turn, report to them what hey have
done.

Owners of private companies are the one who has the absolute power over
their company even delegations or responsibilities were given to the appointed
employees. In corporations, they have stockholders who elects board of director
who will lead the company. Among the BOD, chairman will be chosen as the
leader that will oversee the activities of the company. Aside from the chairman of
the board, the chief executive officer is appointed to occupy the top post in the
organization and is personally accountable to the members of the board and
owners of the organization.

B. Horizontal Structure

It refers to the departmentalization of an organization into smaller work

units as tasks become increasingly varies and numerous.

Two Types of Departments

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

Staff departments support the activities of the line department by doing

research, attending to legal matters, performing public relation duties, etc.

Approaches of Departmentalization

1. Functional approach refers to where the subdivisions are formed based on

specialized activities such as marketing, production, financial management,
and human resources management.
2. Divisional approach refers to where departments are formed based on
management of their products, customers, or geographic areas covered.

PIVOT 4A CALABARZON 26
3. Matrix approach is a hybrid form of departmentalization where managers
and staff personnel report to the superiors, the functional manager, and the
divisional manager.

C. Network Structure

It is a collection of independent single function organizations/companies

that work together in order to produce a product or service. Each network
companies are capable of doing their own activities like selling, distributing,
forwarding, collecting and work with other companies effectively.

Span of Control refers to the number of people who report to the

manager.

Delegation is the assigning of various degrees of decision-making

authority to lower-level employees.

Advantages of Delegation

 Frees up managerial time for other important tasks

 Serves as a training and development tool for lower-level managers
 Increases subordinates’ commitment by giving them challenging assignments
 Belief that only you can do the job right
 Lack of confidence and trust in lower-level employees
 Low self-confidence
 Fear of being called lazy
 Vague job definition
 Fear of competition from those below
 Reluctance to take risks that depend on others
 Lack of early warning controls

Sample Vertical Structure

Top Manager

Middle Manager

Manager

Specialist

27 PIVOT 4A CALABARZON
 Sample Functional Organization

PRESIDENT

Vice President Vice President Vice President Vice President

Operation Production Marketing Finance

Sample Product Service Departmentalization

General Manager

Product X Department Product Y Department

Production Finance Marketing Production Finance Marketing

E
Learning Task 1: Answer the following in your notebook:

1. Define the following using your own words and give example:
Organization Organizing
Organization chart Division of labor

2. What are the different types of organization structure and give example?

3. Illustrate sample of each type of business organization granting that you are a
part of Management Advisory Team providing services to different companies
with regards to their company’s profile.

3. Label your illustration and state who are responsible for each department or
division.

4. Is division of labor necessary in every business organization structure? Why?

Explain your answer.

5. Is organization structure important in every business organization? Why?

PIVOT 4A CALABARZON 28
 A
Learning Task 2: Identify if the following organizational structure design is
Traditional (T) or Modern (M). Write your answers in your notebook.
1. Design that groups together similar or related specialties.
2. Design with the departments, wide spans of control.
3. Focus on performance improvement of people.
4. Matrix design.
5. Boundaryless
6. It is made up of work teams.
7. Focus on flexibility and problem solving.
8. Big number of subordinates reporting to a centralized authority figure.
9. Design made up of separate units where parent corporation acts as overseer.
10. Design where employees continuously work on project.

Learning Task 3: In your notebook, arrange the following delegation steps in

chronological order. Number the first step 1, and the last step 8.
_______a. Asking person assigned about his planned approaches
_______b. Making sure that the task objectives has been achieved
_______c. Defining the goal clearly
_______d. Selecting the person who will be given the task
_______e. Checking the task accomplishment progress
_______f. Assigning of responsibility
_______g. Granting to the assigned person the authority to act.
_______h. Giving the assigned person time and resources to do the task

Learning Task 4: In your notebook, identify the answers to each statement

below.
1. ____________ is the process in which different individuals and work units
perform different tasks.
2. ____________ is another process in the organization’s internal environment
which involves the working together and coordination of its different work
units.
3. ________ shows the different positions in the firm and its hierarchical
arrangement for dividing labor.
4. __________ refers to procedures that connect the work activities of the
different work divisions of the firm.
5. - 6. Structural mechanisms may be devised in order to increased _________
and __________.
7. _________ deal directly with the firm’s primary goods and services.
8. Divisional approach where departments are formed based on management of
their products, customers, or ___________ areas covered.
9. ___________ is a hybrid form of departmentalization.
10. They are said to have absolute authority of private business companies
___________.

29 PIVOT 4A CALABARZON
 References

Manual
Cabrera, Helena MA. F, PhD, et.al. (2016). Organization and Manage-
ment .Teacher’s Manual for Senior High School. Department of
Education.

PIVOT 4A CALABARZON 30
Para sa mga katanungan o puna, sumulat o tumawag sa:

Department of Education Region 4A CALABARZON

Office Address: Gate 2 Karangalan Village, Cainta Rizal

Landline: 02-8682-5773 local 420/421

Email Address: lrmd.calabarzon@deped.gov.ph