WEEKLY LEARNING ACTIVITY SHEETS

Organization and Management 11/12, Quarter 2, Week 1

ORGANIZATION THEORIES AND APPLICATION

Name: ___________________________________________ Section: ____________________

Learning Objective:

 Apply organization theories for effective business management

Time Allotment: 4 hours

Key Concepts

 A company’s organizational structure is a key question for an entrepreneur and a major

factor in the success of the business. Organizational theories can help you address
business issues successfully by highlighting specific organizational problems and how a
suitable structure can deal with them. A survey of the different possibilities can help you
make an informed choice.

 Organizational theories all address several main questions about how a company works.
They assume an organization has structure, goals, and members but focus on the
efficiency of the organization, how it achieves its goals, how its environment affects its
operations and how it survives in the face of the outside challenges. Knowledge of the
theories can be used to match the goals, business environment and the employees of the
company with the organizational structure best able to meet the challenges that the
company faces.

 Organization Theory A proposition or set of propositions that attempts to explain or

predict how groups and individuals behave in differing organizational arrangements.
Organizational theory attempts to explain the workings of organizations to produce
understanding and appreciation of organizations. Some types of organizational theories
include classical, neoclassical, contingency, systems and organizational structure

Organization Theories

A. Classical Structure Theory

 Traditional organizations have either pure hierarchal structure or a modified one, such
as a matrix structure that add additional reporting paths to positions at the working
level. In these structures, employees report to one or more managers for their work
and disciplinary matters. Managers in classical structures rely on the organizational
structures to channel work to the appropriate department . If there is an engineering
problem, it goes to the engineering department; however if a problem exists with staff,
human resources deals with it. Such organizations work best in a stable environment
because they have limited flexibility, and they work well even if you or your managers
have limited experience and expertise.

Author: Crisler R. Atibula

School/Station: Maglambing Integrated School
Division: Surigao del Sur
email address: crisler.atibula@deped.gov.ph
 5 Management Functions of Classical Theory (Fayol)

https://www.toolshero.com/management/five-functions-of-management/

Figure 1. Management Functions of Classical Theory

 Planning - Managers must plan for future conditions,develop strategic objectives and
secure the achievement of future goals. Therefore, managers must evaluate future
contingencies affecting the organization, and shape the future operational and
strategic landscape of the company.
 Organizing - Managers must organize the workforce in an efficient manner and
structure and align the activities of the organization. Managers must also train and
recruit the right people for the job, and always secure a sufficiently skilled and
educated workforce.
 Commanding - Managers must supervise subordinates in their daily work, and inspire
them to achieve company goals. Likewise it is the responsibility of managers to
communicate company goals and policies to subordinates. The commanding of
subordinates should always be consistent with company policies, and every manager
should treat subordinates in line with the standards of the company.
 Coordinating - Managers must harmonize the procedures and activities performed by
the company, meaning that every activity of each organizational unit should
complement and enrich the work of another.
 Controlling - Managers must control that company activities are in line with general
company policies and objectives. It is also the responsibility of the manager to observe
and report deviations from plans and objectives, and to make initiatives to correct
potential deviations.

B. Contingency Organizations
 Contingency theory assumes that organizations adapt to their environments in the
absence of formal structures. How well the adoption addresses the issues
confronting the business depends on the experience and knowledge of the
managers and employees of the company.

Author: Crisler R. Atibula

School/Station: Maglambing Integrated School
Division: Surigao del Sur
email address: crisler.atibula@deped.gov.ph
  The advantages of the well-adapted business include flexibility in addressing
changes in the marketplace and responsiveness to customer needs. If the employee
is a member of team business professionals who are experienced in the field of
activity, a formal structure might get in the way, and a contingency organization
may be the most effective choice.

Advantages and Disadvantages of Contingency Theory

Advantages Disadvantages
The approach is adaptive in nature Sometimes wastage of resources time and
money
The managers can consider the entire Managers may not be able to dig deeper into
factors, analyze stuations thoroughly and the situation and they might take superficial
then take the appropriate decision decisions.
Due to this approach the scope of It is not always feasible for the managers
leadership has widened
The contingency approach allows an The contingency approach might be complex to
organization to choose different leaders as implement as it is not fixed.
per their leadership styles in various
contexts

C. Behavioral Organizations Theory

 Organization that focus on the behavior of individual employees can be successful in a
wide variety of business environments and alternative to a classical structure. These
organization types assume employees complete the required work if their company
provides a suitable business environment . If the company has hardworking
employees, responsible, then an employee-focused organizational structure may be
effective. The organizational theories often place the employees in teams that have
substantial authority to make work-related decisions.

 Three Levels of Behavioral Organizations

The Organization

The group

The Individual

Figure 2. Behavioral Organizations Theory

Author: Crisler R. Atibula

School/Station: Maglambing Integrated School
Division: Surigao del Sur
email address: crisler.atibula@deped.gov.ph
  The Individual - The individual level includes each individual person within an
organization. Each individual acts differently which affects group dynamics and the
organization as a whole. If there are a lot of happy and efficient individuals, the work
environment will be an efficient and productive one. However, if there are a lot of negative
and disgruntled individuals, it can create a toxic environment.
 The Group - The group level includes any groups within an organization. Groups can
range in size from a couple people working together, to a large group with dozens or
hundreds of members. Individuals can affect a group and a group can affect an
organization. And at the same time, a group can affect individuals and an organization
can affect a group. Imagine organizational behavior as a large spider web over each
organization. The spider web connects each level of influence with the two others, creating
a pathway between each one.
 The Organization - The organization level incorporates the organization as a whole. In
case you haven’t picked up on the trend, it’s important to point out that the organization
impacts the individual and group behavior and that individual and group behavior
impacts an organization.

Activity No. 1: Independent Activity!

What you need: Pen and Paper
What to do: Identify the functions of classical theory presented in every situation. Choose your
answer inside the box.

Planning Organizing Commanding

Coordinating Controlling

___________ 1. Vanessa wants to develop strategic objectives and secure the achievement of
future goals in her company to evaluate future contingencies affecting the
organization.
___________ 2. Hannah always finds time to harmonize the procedure and activities performed by
the company to make sure that each work of the organizational unit should
complement.
___________ 3. As a manager of the company, Jessel organizes the workforce in an efficient
manner and train right people for the job to secure sufficiently skilled and
educated workforce.
____________4. Jane always makes sure that activities are in line with general company policies
and objectives to avoid potential deviations from plans and objectives of the
company.
____________5. To communicate company goals and policies, Melody supervises subordinates in
their daily work and inspires them to achieve company goals to ensure that every
policies in the company will be properly communicated.

Activity No. 2: Fill me!

What you need: Pen and Paper
What to do: In the table below, write down your insights about the different theories of
organization and explain how those theories help you to manage an organization.

1.

2.

Author: Crisler R. Atibula

School/Station: Maglambing Integrated School
Division: Surigao del Sur
email address: crisler.atibula@deped.gov.ph
 3.

4.

5.

Reflection
Organizational theories can help you address business issues successfully by
highlighting specific organizational problems. If you were an owner of a company, which
theory would you apply in running your business? Why? Cite instances to support your
answer.

Author: Crisler R. Atibula

School/Station: Maglambing Integrated School
Division: Surigao del Sur
email address: crisler.atibula@deped.gov.ph
References for learners

Enriquez,Edilynda.2016.Organization And Management.Manila:JFS Publishing Services

ErTARUNKASHNI.2020.”ManagementScience,SystemTheory,Contingency
Theory(Comparison)’.Slideshare.Net.https://www.slideshare.net/
ErTARUNKASHNI/management-science-system-theory-contingency-theory-
Comparison

Fayol,Henri.2020.”What Are The Five Functions of Management By Henri Fayol|Toolshero”.

https://www.toolshero.com/management/five-functions-of-management/

“Three Levels of Influence| Organizational Behavior And Human

Relations”.2020.Courses.Lumenlearning.Com.https://courses.lumenlearning.com/wm-
organizationalbehavior/chapter/three-levels-of-influence/.

Answer Key

Activity No. 1
1. Planning
2. Coordinating
3. Organizing
4. Controlling
5. Commanding

Activity No. 2: Answers are expected to vary.

Author: Crisler R. Atibula

School/Station: Maglambing Integrated School
Division: Surigao del Sur
email address: crisler.atibula@deped.gov.ph