Senior

ORGANIZATION AND MANAGEMENT High

School

Compiled by: Charlene E. Cadenas

ABM/Teacher II

Quarter 1: Week 1 and 2

This module aims to guide learners on the basic concepts, principles, and processes related to business
organization, and the functional areas of management based on the Most Essential Learning
Competencies developed by the Department of Education. This learning material provides the learners
with the study of management functions like planning, organizing, leading, and controlling, and orient the
students on the importance of these functions and the role of each area in entrepreneurship.

ORGANIZATION AND MANAGEMENT - GRADE 11

QUARTER 1: WEEK 1
REMINDER: DO NOT WRITE ANYTHING IN THIS LEARNING MATERIAL.

NATURE AND CONCEPT OF MANAGEMENT

CONTENT STANDARD: At the end of the lesson, the learners demonstrate understanding of the basic
concepts and theories of management.

PERFORMANCE STANDARD: The learners shall be able to apply management theories and concepts
in solving business cases.

LEARNING COMPETENCIES/OBJECTIVES:
At the end of the lesson, the learner must be able
to explain the meaning, functions, types, and theories of
management.

https://tinyurl.com/y3fv32qw

Let us check what you already know.

The objective of this activity is to rearrange or unscramble the letters to form a word.
Direction: Study the scrambled letters and try to unscramble or rearrange the letters to form a word.
 SCRAMBLED LETTERS ANSWER

GERMANA

ZGONERRIA

GNNLPAIN

EALGNID

OOCLNRTGNIL

Lesson 1: Definition and Functions of Management

Management is the process of coordinating and overseeing the work performance of individuals
working together in organizations, so that they could efficiently accomplish their chosen aims or goals.

It is also defined as the process of designing and maintaining an environment for efficiently
accomplishing selected aims (Heinz, Weihrich, and Koontz, 2005).

Management analysis is done by breaking it down into five major managerial duties; thus,
making managerial knowledge more understandable. Management functions include the following:

Planning. Involves determining the organization’s goals or performance objectives, defining

strategic actions that must be done to accomplish them, and developing coordination and integration
activities.

Organizing. Demands assigning tasks, setting aside funds, and bringing harmonious relations
among the individuals and work groups or teams in the organization.

Staffing. Indicates filling in the different job positions in the organization’s structure; the factors
that influence this function include size of the organization, types of jobs, number of individuals to be
recruited, and some internal or external pressures.

Leading. Entails influencing or motivating subordinates to do their best so that they would be
able to help the organization’s endeavor to attain their set goals.

Controlling. Involves evaluating and, if necessary, correcting the performance of the individuals
or work groups or teams to ensure that they are all working toward the previously set goals and plans of
the organization.

Coordination, Efficiency, and Effectiveness:

Intrinsic to the Nature of Management

Management functions — planning, organizing,

staffing, leading, and controlling—will all go to waste if
coordination, efficiency, and effectiveness are not practiced by
an organization’s appointed managers. In other words, top-
level managers, middle-level managers, and team leaders or
supervisors must all be conscious of the said practices of
successful organizations as they perform their management
functions.
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Webster’s Dictionary defines coordination as the harmonious, integrated action of the various
parts and processes of an organization; efficiency is being able to yield the maximum output from a
minimum amount of input; and effectiveness as being adopted to produce an effect or being able to do
things correctly. When applied to management functions, coordination ensures that all individuals,
groups, or teams are harmoniously working together and moving toward the accomplishment of the
organization’s vision, mission, goals, and objectives; efficiency, meanwhile, refers to the optimal use of
scarce resources—human, financial, physical, and mechanical—in order to bring maximum productivity;
and effectiveness means “doing things correctly” when engaged in activities that will help the
organization attain its aims.

ACTIVITY 1

Answer the concept map below. Write the concept on the box provided.

ACTIVITY 2

In the new normal of learning we are now on the remote learning. Using the concept of management
functions, create a management action plan that suits you. Below is the sample format, you may create
your own format.
Lesson 2: Evolution of Management

https://tinyurl.com/y6nzrek4
Evolution is usually defined as slow stages of growth and development, starting from simple forms
to more complex forms. This, too, could be applied to management theories which have evolved from
simple improvement of work methods to more complex ones which focus not only on work method
improvement, but also on customer satisfaction and the conduct of people at work.
Studying the evolution of management theories will help you understand the beginnings of
present-day management practices; why some are still popular and why others are no longer in use; and
why the expansion and development of these theories are necessary in order to adapt to the changing
times.

Let us check what you already know.

Multiple Choice. Choose the best answer.

1. He is known as the ‘father of modern management theory’ gave a new perception of the concept
of management.
a. Henri Fayol
b. Frederick W. Taylor
c. Max Weber
d. Joseph M. Juran
 2. He is known as the father of scientific management.
a. Joseph M. Juran
b. Henri Fayol
c. Frederick W. Taylor
d. W. Edwards Deming

3. This refers to the coordinating and overseeing of the work performance of individuals working
together in an organization.
a. Evolution of Management
b. Management Theories
c. Management Process
d. Scientific Management

4. He is widely acknowledged as the leading management thinker in the field of quality.

a. W. Edwards Deming
b. Henri Fayol
c. Max Weber
d. Frederick W. Taylor

5. This is a management philosophy that focuses on the satisfaction of customers, their needs, and
expectations.
a. Scientific Management Theory
b. General Administrative Theory
c. Total Quality Management
d. Organizational Behavior
Scientific Management Theory

This management theory makes use of the step by step,

scientific methods for finding the single best way for doing a job.
Frederick W. Taylor (1856-1915) is known as the Father of
Scientific Management. While working as a mechanical engineer in
a steel company in Pennsylvania in the United States of America
(USA) he could not help but notice the workers’ mistakes and
inefficiencies in doing their routine jobs. Their lack of enthusiasm,
the discrepancy between their abilities and aptitudes, and their job
assignments result to low output. Because of these observations, he
tried to identify clear guidelines for the improvement of their
productivity.

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Taylor’s Scientific Management Principles (Robbins and Coulter, 2009) are as follows:
1. develop a science for each element of an individual’s work to replace the old rule of thumb
method;
2. scientifically select and then train, teach, and develop the workers;
3. heartily cooperate with the workers so as to ensure that all work is done in accordance with the
principles of the science that has been developed; and
4. divide work and responsibility almost equally between management and workers.

General Administrative Theory

The General Administrative Theory concentrates on the

manager’s functions and what makes up good management practice
or implementation. Henri Fayol (1841–1925) and Max Weber
(1864–1920) are the personalities most commonly associated with it.
Fayol’s 19th century writings were concerned with managerial
activities which he based on his actual experience as a managing
director in a big coal mining company. He believed that
management is an activity that all organizations must practice and
viewed it as separate from all other organizational activities such as
marketing, finance, research and development, and others.
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Weber, a German sociologist wrote in the early 1900s that ideal organizations, especially large
ones, must have authority structures and coordination with others based on what he referred to as
bureaucracy. Present-day organizations still make use of Weber’s structural design.
Fayol’s and Weber’s contributions to General Administrative Theory

Henri Fayol’s Management Principles Weber’s Bureaucracy

1. Work division or specialization

2. Authority
According to Weber, bureaucracy is an
3. Discipline organizational form distinguished by the
following components:
4. Unity of command • division of labor
5. Unity of direction • hierarchical identification of job positions
• detailed rules and regulations
6. Subordination of individual interest • impersonal connections with one another
to general interest
7. Remuneration pay

8. Centralization

9. Scalar chain of authority

10. Maintenance of order

11. Equity/fairness
12. Stability/security of tenure of
workers
13. Employee initiative
14. Promotion of team spirit or esprit
de corps

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Total Qualityhttps://tinyurl.com/y222fn8s
Management (TQM)
 Total Quality Management is a management philosophy that focuses on the satisfaction of
customers, their needs, and expectations. Quality experts W. Edwards Deming (1900–1993) and Joseph
M. Juran (1904–2008) introduced this customer-oriented idea in the 1950s, however, the concept had few
supporters. The Americans did not immediately take to the idea since the US was enjoying supremacy in
the global market at the time. Japanese manufacturers, on the other hand, took notice of it and
enthusiastically experimented on its application. When Japanese firms began to be recognized for their
quality products, Western managers were forced to give a more serious consideration of Deming’s and
Juran’s modern management philosophy that eventually became the foundation of today’s quality
management practices.

TQM Pointers from Deming and Juran (Ramasamy 2009)

Deming’s 14 Points for Top Management Juran’s Fitness Quality

1. Create constancy of purpose for improvement 1. Quality of Design – through market research,
of products and services. product, and concept
2. Quality of Conformance – through
2. Adopt the new TQM philosophy. management, manpower, and technology

3. Cease dependence on mass inspection by 3. Availability – through reliability,

doing things right and doing it right the first maintainability, and logistic support
time.
4. End the practice of awarding business on the 4. Full Service – through promptness,
basis of price tag alone. competence, and integrity

5. Constantly improve the system of production

and services.
Juran’s Quality Planning Roadmap
6. Institute of training. 1. Identify your customers.
7. Adopt and institute leadership. 2. Determine their needs.

8. Drive out fear. 3. Translate them into one’s language

9. Break down barriers between staff areas. 4. Develop a product that can respond to needs.

10. Eliminate slogans, focus on correction of 5. Develop processes which are able to produce
defects in the system. those product features.
6. Prove that the process can produce the
11. Eliminate numerical quota for the work force.
product.
12. Remove barriers that rob people of “pride of 7. Transfer the resulting plans to the operating
workmanship.” forces.
13. Encourage education and self-improvement
for everyone.

14. Take action to accomplish the transformation.

Organizational Behavior (OB) Approach

The Organizational Behavior (OB) approach involves the study of the conduct, demeanor, or
action of people at work. Research on behavior helps managers carry out their functions—leading, team
building, resolving conflict, and others. Robert Owen, Mary Parker Follett, Hugo Munsterberg, and
Chester Barnard were the early supporters of the OB approach. During the late 1700s, Owen noticed
lamentable conditions in workplaces and proposed ideal ways to improve the said conditions. Follett, in
the early 1900s, introduced the idea that individual or group behavior must be considered in
organizational management. Likewise, in the early 1900s, Munsterberg proposed the administering of
psychological tests for the selection of would-be employees in companies. Barnard, in the 1930s,
suggested that cooperation is required in organizations since it is, mainly, a social system.
ACTIVITY 1
Summarize and Compare the theories in management. Write three statements that best describes the
theories.

ACTIVITY 2

As a manager of your personal life, identify situations where the management principles or theories are
applied. Kindly cite and explain.

ASSESSMENT
Multiple Choice. Choose the best answer.
1. Management has how many basic functions?
a. 3 b. 4 c. 5 d. 6
2. It is a management principle where equal partition of work shall be given.
a. division of labor b. remuneration c. order d. authority
3. Juran’s Fitness to Quality. Which does not belong?
a. Quality of Design c. Quality of Conformance
b. Availability d. Minimal Service
4. It is a management function that aims to visualize with the help of vision and mission.
a. Planning b. organizing c. staffing d. leading
5. It is a management function that unify that human and non-human resources in the organization.
a. Planning b. organizing c. staffing d. leading
6. Which of the following is not considered as a feature of management?
a. a systematic way of doing things
b. It utilizes the resources efficiently
c. Achieves stated goal
d. Waste of time and effort
7. It is a management function that deals with the motivation and guidance of people.
a. Planning b. organizing c. staffing d. leading
8. It is a management principle where salary shall be equitable in relation to job.
a. division of labor b. remuneration c. order d. authority
9. Which of the following is not part of Deming’s 14 points?
a. Create constancy of purpose for improving products and services.
b. Adopt the new philosophy.
c. Cease independence on inspection to achieve quality
d. Institute training on the job.
10. Which of the following is not a supporter of Organizational Behavior?
a. Robert Owen c. Mary Parker Follet
b. Hugo Munsterberg d. Chester Bernard
Module 2

LEARNING COMPETENCY: At the end of the lesson, the learner must be able to explain the
functions, roles, and skills of a manager.

Lesson 3: Functions, Roles and Skills of a Manager

An individual engaged in management activities is called a

 Top-level management is typically
manager. Managers supervise, sustain, uphold, and assume composed of the organization’s
responsibility for the work of others in his or her work group, team, chairman, chief executive officer,
department, or the organization, in general. Therefore, it is safe to president, managing director, and
assume that organizational success depends upon managers who other high-ranking company
executives.
practice optimal utilization of their human and material resources,
and who encourage high levels of performance, effectiveness, and
efficiency among the individuals under their care.

Managerial Levels
Organizations typically have three levels of management with their Definition of Terms
respective managers—top-level managers, middle-level managers,
and frontline or lower-level managers. Manager - an individual engaged
in management activities such as
Top-level Managers. Top-level managers are the general supervising, sustaining, upholding,
or strategic managers who focus on long-term organizational and assuring responsibilities for
concerns and emphasize the organization’s stability, development, the work of others in his/her work
progress, and overall efficiency and effectiveness. They are also group, team, department, on the
concerned with the organization’s inter-relationships with their organization in general
external environment. Chief executive officers (CEOs), chief Managerial Roles - the various
operating officers (COOs), presidents, and vice presidents are roles played by managers, such as
examples of top-level managers in big corporations; they have interpersonal, informational, and
authority over all other human resources of their organization. decision-making roles
Traditionally, top-level executives set the company’s general
Managerial Skills - the various
direction by designing strategies and by controlling various skill that managers must possess,
resources. At present, however, they, too, must act as such as conceptual human and
organizational guides who must elaborate on the wider purpose of technical skills
their organizational existence, so that their subordinates could
identify and be committed to its success in the three levels of
management in Figure 1.6.

FIGURE 1.6 The three levels of

management are best illustrated in
an organization chart.

Middle-level Managers. Middle-level 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 or general goals and objectives developed by top-level managers. Their traditional role is to
act as go-betweens between higher and lower levels of the organization; they announce and interpret top
management priorities to human resources in the middle hierarchical level of the company. It has been
observed that the middle-level managers are more aware of the company’s problems compared to
managers in the higher level because of their closer contacts with customers, frontline managers, and
other subordinates. To be an ideal middle-level manager, one must be creative so that they could
Definition of Terms  Middle-level managers lead frontline
or lower-level managers and are
Leader - one who possesses good accountable to top-level management
leadership qualities or a
combination of good moral
character, strong professional will,
humility that builds enduring
 Frontline or lower-level managers are
greatness, and commands loyalty responsible for dealing with operational
and respect among subordinates personnel. It requires high level of
interpersonal and technical skills.
Liaison - one who is capable of
maintaining unity of action in the
organization
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Figurehead - one who has
nominal leadership but without
real power, as this power is
possessed only by the company’s
President/Owner

Spokesperson - one who speaks in

the name and behalf of another; as
on behalf of the company
President/Owner

TABLE 1.3 Managerial Roles Identified by Mintzberg

Managerial Skills
Managerial skills may be classified as conceptual, human, and technical.
Conceptual Skills. Conceptual skills enable managers to think of possible solutions to complex
problems. Through their ability to visualize abstract situations, they develop a holistic view of their
organization and its relation to the wider external environment surrounding it. Top-level managers must
have these conceptual skills in order to be successful in their work.
Human Skills. Human skills enable managers in all levels to relate well with people.
Communicating, leading, inspiring, and motivating them become easy with the help of human skills.
GENERAL INSTRUCTIONS.
1. Use a separate sheet of paper (ex: bond paper/intermediate/yellow pad) to write your
answers.
2. Carefully read the instructions in each activity.
3. Answer all the activities in every lesson.