ORGANIZING AS

A MANAGEMENT
FUNCTION
Module in Organization and Management
Quarter 1 ● Module 7

FRANCES ANNE C. BERAQUIT

Developer
Department of Education • Cordillera Administrative Region

NAME:__________________________ GRADE AND SECTION ____________

TEACHER: ______________________ SCORE _________________________
 Republic of the Philippines
DEPARTMENT OF EDUCATION
Cordillera Administrative Region
SCHOOLS DIVISION OF BAGUIO CITY
No. 82 Military Cut-off, Baguio City

Published by:
DepEd Schools Division of Baguio City
Curriculum Implementation Division
Learning Resource Management and Development System

COPYRIGHT NOTICE
2020

Section 9 of Presidential Decree No. 49 provides:

“No copyright shall subsist in any work of the Government of the Philippines. However,
prior approval of the government agency of office wherein the work is created shall be
necessary for exploitation of such work for profit.”

This material has been developed for the implementation of K-12 Curriculum through
the DepEd Schools Division of Baguio City – Curriculum Implementation Division (CID). It can
be reproduced for educational purposes and the source must be acknowledged. Derivatives
of the work including creating an edited version, an enhancement or a supplementary work
are permitted provided all original work is acknowledged and the copyright is attributed. No
work may be derived from this material for commercial purposes and profit.

iii
 PREFACE
This module is a project of the DepEd Schools Division of Baguio City through the
Curriculum Implementation Division (CID) which is in response to the implementation of the K
to 12 Curriculum.

This Learning Material is a property of the Department of Education, Schools Division

of Baguio City. It aims to improve students’ academic performance specifically in
Entrepreneurship.

Date of Development : September 2020

Resource Location : DepEd Schools Division of Baguio City
Learning Area : ABM
Grade Level : 11/12
Learning Resource Type : Module
Language : English
Quarter/Week : Q1/W7
Learning Competency/Code : Analyze the nature of organizations and types of
organization structures.

iv
 ACKNOWLEDGEMENT

As the author of this learning module, I would like to express my sincerest gratitude to
those who meaningfully contributed in the development of this material. To our School
Principal, Ms. Ma. Joan D. Andayan, thank you for the moral support you gave me in crafting
this learning module. To our Assistant School Principal, Ms. Pia P. Duligas, thank you for the
guidance and technical assistance. To my mentors, Mr. Norbert C. Lartec and Ms. Glenda M.
Saludo, thank you for the motivation, imparting your knowledge and expertise on this subject,
and proficiency towards the development of this module. Lastly, my humblest gratitude to
DepEd Division of Baguio for the given opportunity to develop a module for Filipino learners.

Development Team
Frances Anne C. Beraquit Author

School Learning Resources Management Committee

Ma. Joan D. Andayan School Principal
Pia P. Duligas Assistant School Principal
Genevieve C. Tudlong School LR Coordinator
Norbert C. Lartec Master Specialist

Quality Assurance Team

Mary Jane N. Malihod EPS – EPP/TLE/TVL
Leticia A. Hidalgo PSDS – District 7

Learning Resource Management Section Staff

Loida C. Mangangey EPS – LRMDS
Victor A. Fernandez Education Program Specialist II - LRMDS
Christopher David G. Oliva Project Development Officer II – LRMDS
Priscilla A. Dis-iw Librarian II
Lily B. Mabalot Librarian I

CONSULTANTS

JULIET C. SANNAD, EdD

Chief Education Supervisor – CID

CHRISTOPHER C. BENIGNO
OIC - Asst. Schools Division Superintendent

MARIE CAROLYN B. VERANO, CESO V

Schools Division Superintendent

v
 TABLE OF CONTENTS
COPYRIGHT NOTICE .............................................................................................. iii
PREFACE ................................................................................................................. iv
ACKNOWLEDGEMENT.............................................................................................v
TABLE OF CONTENTS ............................................................................................ vi
What I Need to Know ................................................................................................ 2
What I Know ............................................................................................................. 3
What’s In ................................................................................................................... 4
What’s New............................................................................................................... 5
What is It................................................................................................................... 5
What’s More............................................................................................................ 10
Activity 1: Family Structure ............................................................................... 10
Activity 2: Chart of the Community ................................................................... 10
Activity 3: Presents for You! ............................................................................. 11
What I Can Do ........................................................................................................ 12
Activity 4: Case of Universe Cable Company ................................................... 12
Post-Assessment .................................................................................................... 13
Additional Activities ................................................................................................. 14
Activity 5: Family Reunion ................................................................................ 14
Answer Key............................................................................................................. 15
References ............................................................................................................. 16

vi
 ORGANIZING AS
A MANAGEMENT
FUNCTION
Module in Organization and Management
Quarter 1 ● Module 7

FRANCES ANNE C. BERAQUIT

Developer
Department of Education • Cordillera Administrative Region

1
 What I Need to Know

Welcome to this module on ORGANIZING AS A MANAGEMENT FUNCTION!

The primary objective of the Organization and Management subject is to aid students
in familiarizing the basic concepts, principles, and processes related to business
organizations, and the functional areas of management. This module will help you understand
the significance of organization structures for effective business management.

HOW TO USE THIS MODULE

This module contains several lessons. To make the most out of them, you need to do
the following:
1. Scan the list of Learning Objectives to get an idea of the knowledge and skills you are
expected to gain and develop as you study the module. These outcomes are based on
the content standards, performance standards, and learning competencies of
Organization and Management.
2. Take the What I Know. Your score will determine your knowledge of the lessons in the
module. If you get 100% of the items correctly, you may proceed to the next module.
However, you are highly encouraged to take this module for a deeper understanding
on the topic.
3. Each Lesson aims to develop one of the learning objectives set for the module. It starts
with an activity that will help you understand the lesson and meet the required
competencies.
4. Take your time in reading this module. Write down points for clarification. You may
discuss these points with your teacher.
5. Perform all activities and answer all worksheets. The activities and assessments are
designed to enhance your understanding of sets. The activities will also give you an
idea how well you understand the lessons. Review the lessons if necessary, until you
have achieved a satisfactory level of understanding.
6. At the end of the module, take the Post-Assessment to evaluate your overall
understanding about the lessons.

LEARNING OBJECTIVES
At the end of the module, you should be able to:
1) define organizing as a function in management;
2) explore the nature of organizations by distinguishing the various types of
organization structures; and
3) apply organization theories by conducting real-life case analysis.

2
 What I Know

General Reminder:
Please use another sheet of paper (preferably SHORT BOND PAPER) for your
answers in all the activities included in this module. Write your name (LN, FN, MI)
and section at the upper left portion of your answer sheet.

Instruction: Choose a letter that fits the description of each statement. Write the letter of your
answer on your answer sheet. (One point each)

A. Planning I. Formal organization

B. Management J. Mission
C. Organizing K. Functional structure
D. Vertical structure L. CEO
E. Organizational Chart M. Informal organization
F. Vision N. Divisional structure
G. Organizational Structure O. Manager
H. Decision-making P. Organization

1. This is the process of coordinating and overseeing the work performance of individuals
working together.
2. It is how you see the organization in the future, as desired by the people in the
organization.
3. It refers to an individual who is responsible in controlling all or a part of the organization
by supervising and assuring that the work of people in his/her team is accomplished.
4. It is a process which begins with identifying a problem and should end with evaluation
of the implemented solutions.
5. He/she is someone chosen by the Board of Directors in a corporation to take charge
of the top-level management.
6. It is the process of identifying people, assigning them for a specific task, coordinating
horizontally and vertically with one another, and establishing authority to achieve goals
and objectives
7. A process which involves the setting of organizational goals and objectives and
developing strategies to achieve these.
8. It is a kind of organization which is formed because of common interest and need for
social affiliation that exist among its members.
9. A type of organizational structure wherein the ultimate authority and responsibility is
designated to the top-level position, and decision-making flows from top to bottom.
10. This organizational structure is formed according to work or activity to be done such
as marketing, production, financial management, and/or human resource
management.
11. This type of organizational structure refers to decentralizing the authority into
departments or small work units as tasks become increasingly varied and numerous.

3
 12. It is a system established by an organization which is composed of work movements
or flow from one level to another, coordination and communication passageways of the
people in the organization, and reporting relationships.
13. An organization is usually formed and divided based on product variety or customer
diversity.
14. This kind of organization has a formal organizational structure and is created to
achieve specific objectives.
15. A diagram used by organizations which presents the flow of responsibility,
communication, and responsibility among its members.

Have you answered all the questions given correctly? Good job! Now, you may
proceed to the next part of this module.

What’s In

This module mainly tackles organizing as a management function. You have learned
previously that organization is a group of people who have different characteristics yet are
formed because they have a common goal. An organization, to be fully efficient and effective,
must incorporate the management processes in their system. In order to accomplish the
management process, management functions are set to create work harmony inside the
organization. These management functions are divided into five (5): planning, organizing,
staffing, leading, and controlling. All these functions are important and must be present in an
organization.

After the first management function, which is planning, organizing must come next.
Organizing is a key function in management which involves proper combination and allocation
of both the human and nonhuman resources. The combination of these resources will
ultimately result to the goal of management – maximum efficiency. However, the focus of this
module is the human resources. Thus, we can define the organizing function as a process of
identifying people, assigning them for a specific task, coordinating horizontally and vertically
with one another, and establishing authority to achieve goals and objectives. The key role of
organizing function is to create a harmonious working environment. Without the organizing
function, all goals and objectives set for the organization will go to waste. Coordination refers
to a process that connect work activities of different units of the firm in order to achieve its
overall goal. Structural mechanisms must be devised in order to increase collaboration and
coordination (Cabrera, et al. 2016) while division of labor involves assigning of different tasks,
mostly according to specialization, to different people in an organization (Benjamin and Del
Castillo 2016). To know more of this, proceed to the activity on the next part of this module.

4
 What’s New

Activity 1: Our Roles at Home

Instruction: Identify the roles of each of your family member. Be specific with the roles and
give at most two (2) roles for each. The first one is given as an example.
FAMILY MEMBER ROLES
Juan Dela Cruz (Father) Head of the family
Juana Dela Cruz (Mother) Financial Manager of the Family

What is It

In the activity given, were you able to properly identify the role of each family member
in your household? Based from the roles you have identified, who is the head of the family?
Who comes next? Is a system or a structure or a hierarchy evident in your household? Yes,
there should be one because a family is considered an organization.

In all organizations, there should be a system which determines the authority, the work
movements, the coordination and communication between and among the members. This is
called the organizational structure. It creates order by arranging the various parts of the
organization, the workflows, the reporting relationships, and the communication channels
(Quero 2017).

There are two types of organizational structures: vertical structure and horizontal
structure. A vertical structure is centralized and the decision-making flows from top to
bottom. This type of organizational structure clears out issues related to authority rights,
responsibilities, and relationships (Benjamin and Del Castillo 2016). Most traditional
businesses use this type because the influence of the top-level managers flows down to
middle-level managers to department heads to rank-and-file employees It also follows a
command and control style of management wherein business hierarchy is manifested since
the decision-making solely relies on top-level managers. On the other hand, a horizontal
structure refers to the departmentalization of an organization into smaller work units as tasks
become increasingly varied and numerous. This type of organizational structure is

5
decentralized and decision-making could be made at various levels because rank-and-file
employees are also empowered by having the authority to make decisions for business
operations. This creates collaboration and coordination among employees, regardless of
positions. Below are samples of vertical and horizontal organizational structures:

Top-level
Manager

Middle-level Middle-level Middle-level

Manager Manager Manager

Low-level
Manager

Rank-and-file Rank-and-file
Employee Employee

Figure 1: Vertical Organizational Structure

President

Vice President
Vice President Vice President Vice President Vice President
for Human
for Marketing for Production for Distribution for Finance
Resource

Figure 2: Horizontal Organizational Structure

Now, analyze the differences of the two types of organizational structures below:
VERTICAL ORGANIZATIONAL
STRUCTURE
1. Hierarchal or tall structure
2. Centralized (authority remains with
top-level executives)
3. All decisions are made by senior or
top-level executives.
4. Supervisory loads are less for each
manager because overall control
lies on the top-level manager.
5. Communication tends to be slower
and distorted because of the
number of levels to pass through.
HORIZONTAL ORGANIZATIONAL
STRUCTURE
1. Flat organizational structure
2. Decentralized (authority rights are
delegated among employees)
3. Employees could make decisions for
the daily operations of the business.
4. Managers are required to have
experience in various tasks.
5. Communication is generally faster
and less distorted.

6
 Designing the organizational structure requires the consideration of basic elements
such as departmentalization, pattern of authority, and span of control. Departmentalization
refers to grouping of jobs based on functions, divisions, or multiple tasks which reflect the
coordination and control of activities.

A. Functional design – it is also called the bureaucratic design structure. The

organization is grouped or divided according to functions. Employees are grouped
together according to common tasks, skills, or activities. Below is an illustration
showing the functional design organizational structure:

President

Marketing Human
Production Legal Affairs Accounting Budget
and Sales Resource
Department Department Department Department
Department Department

Here are some of the advantages and disadvantages of this type of structure.

ADVANTAGES
a) Easy communication between and
among members which allows fast
decision-making.
b) Members working with same
function enables people to work
and learn with one another.
DISADVANTAGES
a) Different functional groups work
according to roles, making them
susceptible for one-sided view.
b) Employees have a little autonomy.
Thus, they have a little knowledge
about other functions.

B. Divisional design – the organization could be grouped according to management

of products, customers, or geographical territory. Presented below is the divisional
design (geographical location) organizational structure:

Company

North Luzon Central South Luzon Visayas Mindanao

Area Luzon Area Area Area Area

Here are some of the advantages and disadvantages of this type of structure.
ADVANTAGES DISADVANTAGES
a) It works well with organizations or a) There is a tendency of function-
businesses with many product duplication, which can cause
lines and large scope as to inefficiency.
geographical territory.
b) Failure of one division does not b) Complicated for accounting and
impact the operations of other tax purposes.
divisions which gives business
flexibility

7
 C. Matrix or Hybrid design – this complex design is usually used by large companies
whereby an employee could do multiple tasks assigned to different divisions.
Although it may create confusion, it provides flexibility and enhances skill
development for an employee. Below is an illustration of a hybrid design
organizational structure:

Here are some of the advantages and disadvantages of this type of structure.
ADVANTAGES DISADVANTAGES
a) It is more flexible and dynamic a) Chain of command becomes
because information and task are complex.
disseminated across departments.
b) This type of structure gives b) Creates conflict between and
employees knowledge and skills of among members, and confusion as
different tasks of each department. to the accountability of members.

A diagram presenting the organization’s official positions, formal lines of authority, and
organizational structure is known as organizational chart. In many instances, this chart
includes the name and the position of the staff or personnel. Creating an organizational chart
should include the following elements:

a. Level of management hierarchy – the organizational chart should present a detailed

view of ranks, positions, and name of personnel who are assigned to the given position.
b. Chain of command – the downward and upward vertical lines give a graphic
illustration of the stages of authority whereby each level of management reports
(Valencia, et al. 2009).
c. Division and departmentalization – the organizational chart should present the
overall distribution of functions, tasks, and manner of division of work within an
organization.

8
 A sample organizational chart of Baguio-Benguet Community Credit Cooperative
(BBCCC) is presented below:

To avoid confusion between organizational structure and chart, enumerated below are
some of the differences between organizational structure and organizational chart.

ORG. STRUCTURE ORG. CHART

1. It is designed to convey the functions 1. It is designed as visual
in a business. representation of the organizational
structure.
2. It defines the tasks, purposes, and 2. It shows the name of personnel,
accountabilities of each business his/her job title, and may also include
function and role. his/her function.
3. It changes infrequently and does not 3. It needs to be changed when a
when a member resigns/leaves the member leaves the organization.
organization.

Job well done, learner! Now, let’s see what you have understood about the
lessons that we had. You may now proceed to the activities given.

9
 What’s More

Activity 1: Family Structure

You have identified the roles of each member in your family. Let us see if you can apply
your knowledge on organizational structure and creating an organizational chart of your family.

Instruction: Create an organizational chart (horizontal or vertical) using a functional design

organizational structure of your family. Then, explain in NOT MORE than five (5) sentences
why you have arranged it as such. An example is given below.

Juan Dela Cruz

(Head of the Family)

Juana Dela Cruz Jun Dela Cruz

Jona Dela Cruz
(Financial Manager of the (Protector of younger
(Babysitter of the Family)
Family) siblings)

Activity 2: Chart of the Community

Now that you have applied your knowledge on organizational structure and chart in
your family, let’s try to do this activity with a partner!

Instruction: Prepare the organizational structure of your barangay or city/municipality,

whichever is more convenient for you. Find a partner in your class (should live in a different
barangay or municipality or city from yours). Compare and contrast the two organizational
structures by completing the table below:

ORGANIZATIONAL STRUCTURE
ORGANIZATIONAL STRUCTURE OF YOUR PARTNER’S
OF YOUR BARANGAY/CITY/MUNICIPALITY
BARANGAY/CITY/MUNICIPALITY
Name of your partner:
Type of
organizational
structure
Similarities
(give at least
two)
Differences
(give at least
two)

10
 What I Have Learned

Activity 3: Presents for You!

Since you did well in the first parts of this module, I have presents for you! Below are
five (5) gift boxes which contain five (5) words related to the organizing management function.

Instruction: Connect the words from the presents I gave you and create an essay composed
of NOT MORE than 15 sentences. Be creative and original. Refer to the rubrics below for your
guide:

CRITERIA HIGHEST POSSIBLE POINTS

Content 5 points
Grammar 5 points
Organization of thoughts 10 points
TOTAL POINTS 20 points

ASSOCIATION COORDINATION RESPONSIBILITY

AUTHORITY STRUCTURE

11
 What I Can Do

Activity 4: Case of Universe Cable Company

Instruction: Study the case of Universe Cable Company. Read and analyze the situation, then
accomplish what is required.

And so, they

prepared the list of the
activities involved in their
business:

Milky Cruz and Galaxy Rodrigo a. Soliciting subscriptions for

are former classmates in cable;
BCNSHS and they planned to b. Installation of cable
create a business called Universe connections;
Cable Company. In 2020, they c. Billing of subscribers;
d. Receiving payments from
were able to raise Php2 Million as
subscribers;
their initial capital.
e. Repairs and maintenance
They determined their target of facilities;
market, technical feasibility and f. Bookkeeping and other
possible locations in both Baguio related matters;
g. Driving the service
City and La Trinidad. The last
vehicles of the company;
aspect they had to work out was
h. Hiring new personnel for
their organizational structure. the company; and
Since they had a difficult time i. Securing legal matters of
organizing, they hired you and company.
asked you to propose an
organizational structure for them.

Requirement: Design and illustrate your proposed organizational structure for Universe
Cable Company which will show the different activities inherent to the firm. Include the
activities listed above in the organizational structure.

12
 Post-Assessment

Instruction: Write TRUE if the idea of the statement is correct. Otherwise, write FALSE.
(One point each)

STATEMENT
1. Any group or association of a people which is formed because of a common goal
to be achieved is called an organization.

2. Delegation is the process of identifying people, assigning them to tasks, and

establishing authority to achieve organizational goals.
3. Usually, authority resides in position and not in people.
4. An organizational structure in which the decision-making flows from top to bottom
is known as horizontal structure.
5. A vertical structure is also known as tall structure.
6. One of the most important elements to be considered in designing an organizational
structure is departmentalization.

7. When the organization is divided according to product line management, a

divisional design organizational structure is used.

8. The most complex design of an organizational structure is the functional design

because of members become susceptible to one-sided view – looking at their own
pacing only.
9. A hybrid design organizational structure would be the most appropriate in a
complex and changing environment.

10. An organizational chart is a graphical representation of an organizational structure

which shows the name of the personnel, his/her position, and even his/her duties
and activities.

11. The level of management is the only element one should consider in designing the
organizational chart.
12. An arrowhead must be placed in the lines of an organizational chart to indicate the
chain of command.
13. The organizational chart changes when a member leaves the organization.

14. Organizing comes first before setting the goals and objectives of the organization.

15. Organizing function can only be applied in business and other formal organizations.

13
 Additional Activities

Activity 5: Family Reunion

After this pandemic, your family is planning to go on a beach for a family reunion. You
are so excited and your father, being the eldest in your clan, assigned you to organize the
family reunion. The goal is to maximize companionship since you haven’t seen each other for
a long time, participation in different activities, management of food and drinks, and safety.
Let us see how you would carry out your assignment using the organizing process by
completing the table below.

Program FAMILY REUNION

Main Objective/s: You may have more than one (1) objective

Location:
Date:
Activities Focal Person in Other key persons Main function of Materials
the activity involved in the the team/group needed for
activity involved the activity

Games Juan Dela Cruz Family of Juan Dela Think and create of Party
Cruz games for children, materials
teenagers, and
adults.

Good job! Now that you have finished answering the module, it’s time for
self-assessment. Let’s see how well you understood the lesson in this
module.

Please draw happy face if your answer to the question is yes. Draw
SELF-
ASSESSMENT a sad face if your answer to the question is no and you are highly
encouraged to go over the module again.
Am I able to define organizing as a management function?
Have I distinguished the various organizational structures?
Can I apply these organizational theories in different real-life situations?

14
 15
WHAT I KNOW Answers may vary for:
1. B - WHAT’S NEW
2. F - WHAT’S MORE
3. O - WHAT I HAVE LEARNED
4. H - WHAT I CAN DO
5. L - ADDITIONAL ACTIVITY
6. C
7. A
8. J
9. D
10. K
11. M
12. G
13. N
14. I
15. E
POST-ASSESSMENT
1. TRUE
2. FALSE
3. TRUE
4. FALSE
5. TRUE
6. TRUE
7. TRUE
8. FALSE
9. TRUE
10. TRUE
11. FALSE
12. FALSE
13. TRUE
14. FALSE
15. FALSE
Answer Key
 References
Benjamin, Riaz, and Clarence Darro B Del Castillo. 2016. Organization and Management.
Quezon City, Philippines: Vibal Group, Inc.
Cabrera, Helena Ma. F, Anthony DC Altarejos, Riaz Benjamin, and Clarence Darro B Del
Castillo. 2016. Organization and Management. Quezon City, Philippines: Vibal
Group, Inc.
Quero, Rachel A. 2017. Organization and Management. Makati City, Philippines: DIWA
Learning System, Inc.
Valencia, Edwin G., Roberto M. Arguelles, Adelberto Ll. Areola, Napoleon I. Barnachea, Jr.,
Glory S. Drequito, Dionaida V Fontanilla, April L. Macasieb-Gumnad, and Asuncion
G. Nazario. 2009. Principles of Management and Organization. Baguio City: Valencia
Educational Supply.
https://project-management.com/the-difference-between-vertical-and-horizontal-project-
management/#:~:text=Most%20business%20organizations%20are%20set,are%20made%2
0at%20various%20levels.

https://depedpines.com/organizational-structure/

https://smallbusiness.chron.com/difference-between-organizational-structure-design-
3839.html

https://organizationalphysics.com/2015/02/09/organizational-design-the-difference-between-
organizational-structure-and-an-org-
chart/#:~:text=Organizational%20structure%20is%20designed%20around,each%20business
%20function%20and%20role.

https://www.economicsdiscussion.net/management/organising-process/31967

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