SHS

Organization and
Management Module 5:
Quarter 1 - Week 5

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ABM - Organization and Management
Grade 11/12, Module 5: Quarter 1, Week 5
First Edition, 2020

Copyright © 2020
La Union Schools Division
Region I

All rights reserved. No part of this module may be reproduced in any form without written
permission from the copyright owners.

Development Team of the Module

Author: Louise Katreen V. Nimer, T-II

Editor: SDO La Union, Learning Resource Quality Assurance Team

Illustrator: Ernesto F. Ramos Jr., P II

Management Team:

ATTY. Donato D. Balderas, Jr.

Schools Division Superintendent

Vivian Luz S. Pagatpatan, Ph.D

Assistant Schools Division Superintendent
German E. Flora, Ph.D, CID Chief

Virgilio C. Boado, Ph.D, EPS in Charge of LRMS

Mario B. Paneda, Ed.D, EPS in Charge of Araling Panlipunan

Michael Jason D. Morales, PDO II

Claire P. Toluyen, Librarian II

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 Organization and
Management
Module 5: Quarter 1 - Week 5

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 Target

Economic development is a total process that includes economic growth and

increase in the given amount of goods and services produced by the country’s
economy. Moreover, this development also considers social, political, cultural, and
spiritual aspects to determine that there is an economic development happening.

Wealth acquisition is among the concerns of economic development; however

its greater concern is the improvement of people’s lives. Sustainable economic
development ensures that the present needs of a particular generation are fully met
without endangering the ability of future generations to also fully meet their own
needs.

In your previous lesson, you are already done with the forms and economic
roles of business organizations.

This learning resource will provide you with information and activities that
will help you understand the phases of economic development.

After going through this module, you are expected to:

1. Differentiate the phases of economic development and its impact to business

environment. ABM_AOM11-Ic-d-8

Before going on, check how much you know about this topic.
Answer the pre-test on the next page in a separate sheet of paper.

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 Jumpstart

For you to understand the lesson well, do the following activities.

Have fun and good luck!

Activity 1: Read Me! Understand Me!

Directions: Read the phases of economic development and what it entails.

Understand what you are reading.

Economic development phases are the distinct stages involved in the total
process of economic development in a particular country. Walt W. Rostow (1960)
took a historical approach in suggesting that developed countries have to pass
through five phases to reach their current degree of economic development.

These include:

1. Traditional society. This is an agricultural economy of mainly subsistence

farming, little of which is traded. The size of the capital stock is limited and
of low quality which results to low labor productivity and little surplus
output left to sell in domestic and overseas markets.

2. Preconditions for take-off. Agriculture becomes more mechanized and

more output is traded. Savings and investment grow although they are still a
small percentage of national income (GDP). Some external funding is
required- for example in the form of remittance incomes from migrant
workers living overseas.

3. Take-off. Manufacturing industry assumes greater importance, although the

number of industries remain small. Political and social institutions start to
develop – external finance may still be required. Savings and investment
grow. Agriculture assumes lesser importance although the majority of
people remain employed in the farming sector. There is often a dual
economy apparent with rising productivity and wealth in manufacturing
and other industries in contrast with low productivity and income in
agriculture.

4. Drive to maturity. Industry becomes more diverse. Growth spreads to

different parts of the country as technology improves. The economy moves
from being dependent on factor inputs for growth towards making better use
of innovation to bring about per capita income increases.

5. Age of mass consumption. Output levels grow, enabling increased

consumer expenditure. There is a shift towards tertiary sector activity and
the growth is sustained by the expansion of a middle class consumers.
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Direction: Read the questions below and choose the letter of your answer from the
given choices. Write your answer on a separate sheet of paper.

1. Which of the following is NOT one of Rostow’s five phases of economic

development?
A. Traditional society B. Drive to maturity C. Technological
society

2. Which of Rostow’s phases involve primarily agricultural production?

A. Pre-conditions for take-off B. Take-off C. Traditional
society

3. Which of Rowstow’s stages of economic growth is marked by few industries

driving economic growth?
A. Take-off B. Drive to maturity C. Age of mass consumption

4. What characterized Rostow’s economic development phase, drive

to maturity?
A. Subsistence, barter, agriculture
B. Industrialization, growing investment, political change
C. Diversification, innovation, less reliance on imports

5. What stage or phase of development identifies the dominant economic

activity as subsistence farming, rigid social structure and limited
technology?
A. Pre-conditions for take-off B. Take-off C. Traditional society

Great! You may now start reading the next page.

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 Discover

Rostow’s Economic Development Phases

Traditional Society: This stage is characterized by a subsistent, agricultural-

based economy with intensive labor and low levels of trading, and a population that
does not have a scientific perspective on the world and technology.

Preconditions to Take-off: Here, a society begins to develop manufacturing and a

more national/international outlook.

Take-off: Rostow describes this stage as a short period of intensive growth, in

which industrialization begins to occur, and workers and institutions become
concentrated around a new industry.

Drive to Maturity: This stage takes place over a long period of time, as standards
of living rise, the use of technology increases, and the national economy grows and
diversifies.

Age of High Mass Consumption: Here, a country’s economy flourishes in a

capitalist system, characterized by mass production and consumerism.

Slideplayer.com

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 Explore

Let us see if you have mastered the lesson.

Assessment

Directions: Answer the questions below in not more than 5 sentences. Write your
answers on a separate sheet of paper (1 whole). The scoring rubric on the next
page will be used in assessing your outputs.

1. Is economic development synonymous to economic growth? What made you

say so?

2. What are the phases of economic development?

3. Identify the different phases of economic development and differentiate each

phase.

4. What is the impact of the different phases of development to the business

environment?

5. Why is it important to know the different phases of development?

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 Rubric for Scoring the Essay

Outstanding Good Poor Score

(5 pts.) (3 pts.) (1 pt.)
Your answer is Your answer is Your answer is not
comprehensive and comprehensive. comprehensive.
accurate. Your Your ideas are Your ideas are not
ideas are clearly addressed properly addressed
stated, well- but lack properly. No
explained and supporting details. supporting details
supported provided.

by details.
Total 25/25

Deepen

At this juncture, create a flow chart that best illustrates and characterizes the five
phases of economic development by Rostow. The scoring rubric on the next page
will be used in assessing your outputs.

What you need

Short bond paper, pencil/pen, coloured paper, cut-outs, scissors, and paste

Phases of Economic Development

1.

2.

3.

4.

5.

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 Rubrics for Scoring the Output

Criteria Excellent (5) Good (3) Poor (1)

Content The content is very The content is The content is not
relevant to the somewhat relevant relevant to the
topic. to the topic. topic.
Organization It is well-organized. It is adequately It is not organized.
Clarity of thought organized. It shows It shows minimal
is present. It shows good understanding of
exceptional understanding of the topic.
understanding of the topic.
the topic.
Neatness The output is very The output is The output is not
neat. No signs of somewhat neat. It neat. It has too
erasures. has some sorts of many erasures.
erasures.
Timeliness The output met the Deadline merely Deadline was
deadline or even met. Exceeded missed. Exceeded
passed before the minutes on the days on the date of
date of time set for submission.
submission. submission.
TOTAL 20/20

Gauge

Directions: Read each item carefully. Use a separate sheet for your answers. Write
only the letter of the best answer for each test item.
1. What phase is known for technology and limited trade?
A. Age of mass consumption
B. Drive to maturity
C. Traditional society
D. Take-off
2. What phase is identified for a country that is growing economically
and diversifying, producing goods at home with a growing middle
class?
A. Traditional society
B. Drive to maturity
C. Take-off
D. Age of mass consumption

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3. According to Rostow’s phases of economic development, which of the
following is TRUE?
A. The colonial legacy will deter a country’s economic growth.
B. Foreign investment is a necessary precondition for development in the
second phase.
C. All countries will eventually pass through each of the five stages of
economic development.
D. Countries might not pass through each of the phases.
4. Which of the following is NOT a characteristic of the preconditions for take-
off?
A. Decrease in transportation
B. Progressive leadership
C. Thriving food industries
D. Diversity of products
5. Which of the following is a goal of economic development?
A. Economic growth
B. Reduction of poverty
C. Improvement of transportation
D. Increase of production in industries
6. Which of the following does not belong to the precondition for take-off?
A. Political stability
B. Increased agricultural productivity
C. Development of social overhead capital
D. Growth of the consumer goods industry
7. What phase is identified when industrialization begins to occur, and
workers and institutions become concentrated around a new industry?
A. Take-off
B. Age of mass consumption
C. Drive to maturity
D. Traditional society
8. What phase has the largest service sector and very consumer oriented?
A. Drive to maturity
B. Preconditions to take-off
C. Age of mass consumption
D. Take-off
9. What is the phase if the investment on infrastructure laying the foundation
for technology and manufacturing?
A. Preconditions to take-off
B. Drive to maturity
C. Take-off
D. Age of mass consumption
10. What is the essence of sustainable economic development?
A. Build up exports of third world countries
B. Magnify the quality of goods
C. Reconcile economic advancement with environmental protection
D. Deplete the raw materials of every country
11. If a country’s economy flourishes in a capitalist system, what phase of
development does the country belong?
A. Drive to maturity
B. Preconditions to take-off

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 C. Age of mass consumption
D. Take-off
12. Which among the concepts below should be excluded?
A. Economic growth
B. Low levels of trading
C. Little surplus output
D. Agricultural-based economy
13. What is the economic development phase of a country when the national
economy grows and diversifies?
A. Take-off
B. Age of mass consumption
C. Drive to maturity
D. Traditional society
14. What phase of economic development lets the government invest
in infrastructure?
A. Drive to maturity
B. Preconditions to take-off
C. Age of mass consumption
D. Take-off

15. Which economic development phase is characterized by rising

productivity and wealth in manufacturing and other industries in
contrast with low productivity and income in agriculture?
A. Drive to maturity
B. Preconditions to take-off
C. Age of mass consumption
D. Take-off

Terrific! You are already done with the activity. Keep it up!

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References

Books

Cabrera, H. F., Altarejos, A. D., & Benjamin, R. (2016). Organization and

Management. Vibal Group, Inc.
Enriquez, E. G. (2016). Organization and Management. JFS PUBLISHING
SERVICES.
Websites

(n.d.). Retrieved from

https://programs.online.american.edu/econ/masters-
economic/resources/stages-of-economic-development

(n.d.). Retrieved from https://www.tutor2u.net/economics/reference/rostow-five-

stages-of-economic-growth-model

(n.d.). Retrieved from https://study.com/academy/practice/quiz-worksheet-s-

stages-of-economic-growth.html
(n.d.). Retrieved from https://www.thoughtco.com/rostows-stages-of-growth-
evelopment-model-1434564

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Key Answer

Jumpstart

1. C
2. C
3. A
4. C
5. C

Gauge
1. D
2. B
3. B
4. A
5. A
6. B
7. A
8. C
9. A
10. C
11. C
12. A
13. C
14. B
15. D