SHS

Organization and Management

Module 7: Quarter 1 - Week 6

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ABM - Organization and Management
Grade 11 Module 7: Quarter 1, Week 6
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: Rose Ann N. Mapalo, T-III

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

Claire P. Toluyen, Librarian II

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 Organization and
Management
Module 7: Quarter 1 - Week 6

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 Target

Planning is important in a business. Through planning, one can determine

what to do step by step in achieving success. And through careful planning, one
can be assured on what to do and find out necessary actions and solutions when
problem arises.

There are different planning techniques. These are forecasting, contingency

planning, scenario planning, benchmarking and participatory planning.

Aside from planning, decision-making is also a rudimentary element in

establishing a business. In every decision that one can make, this can affect every
one’s job and the company itself. Careful decision making is a must to avoid
problems later on.

In your previous lesson, you are done with the nature and levels of planning
and as well as the different types of plans.

This learning resource will help you understand the planning techniques
and tools and their applications (forecasting, contingency planning, scenario
planning, benchmarking and participatory planning) and at the same time, you will
also understand what decision-making in a business is, together with its type and
its different conditions.

After going through this alternative learning resource, you are expected to:

1. identify the different planning techniques and tools and,

2. identify what decision-making is and its process, determine the different
types of decision-making and its conditions and,
3. apply appropriate planning techniques and tools in business decision
making. (ABM_AOM11-Ia-b-3)

Before moving on, kindly answer the pretest and anticipation guide to check how
much you know about the topic. Use a separate sheet of paper for your answer.

Activity 1: Pretest

Direction: Read and understand the questions below and choose the letter of your
answer. Use a separate sheet of paper.

1. What planning technique is being identified when you attempt to predict

what may happen in the future?
a. Contingency planning c. Forecasting
b. Benchmarking d. Scenario planning

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 2. In forecasting, what are the things one should consider?
a. Employment and unemployment rate c. Stock market data
b. Increase or decrease of interest rates d. All of the given choices
3. What planning technique is prepared by managers which is ready for
implementation when things do not turn out as they should be?
a. Contingency planning c. Forecasting
b. Benchmarking d. Scenario planning
4. What planning technique is being identified for a long term version of
contingency planning?
a. Contingency planning c. Forecasting
b. Benchmarking d. Scenario planning
5. What scenarios are being anticipated when one prepares for a scenario
planning?
a. Covid-19 pandemic c. Human rights violation
b. Earthquakes damages d. all of the given choices
6. What planning technique has the main purpose of finding out what other
people and organizations do and then plan to incorporate these practices
into the company’s operations?
a. Contingency planning c. Forecasting
b. Benchmarking d. Participatory planning
7. What do you think should be remove from the choices below?
a. Benchmarking is a planning technique.
b. It generally involves external comparisons of a company’s practices and
technologies with those of other companies.
c. A common benchmarking is to search for best practices.
d. This is a planning process that includes the people who will be affected
by the plans.
8. What planning technique includes the people who will be affected by the
plans and those who will be asked to implement them in all planning steps?
a. Contingency planning c. Forecasting
b. Benchmarking d. Participatory planning
9. What one should have when joining the participatory planning?
a. acceptance c. creativity
b. understanding of the plans d. all of the given choices

Activity 2: Anticipation Guide

Direction: Below are statements about decision-making. Check YES if you AGREE
with it, otherwise, check NO. Ready?

Anticipation Guide: YES NO

1. I know what decision-making is.
2. It is difficult to decide without careful thinking.
3. It is easy to decide when you weigh your options well.
4. I already made a choice by careful decision-making.
5. My decisions are good because I feel good about the
results.
6. I am not happy with my decision because there is no

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 careful and thorough thinking made.
7. I am aware that there are different types of decision-
making.
8. There is a process to understand when making
decisions.
9. Good decision-making means success in business.
10. Careful decision-making is a factor for a successful
venture.

Jumpstart

Do the following word hunt game to understand the lesson. Are

you ready? Have fun!

Activity 1: Word Hunt Game

Direction: Loop some important terms that you can find inside the box. Encircle the
term that you found! You can find them vertically, horizontally, diagonally and
inverted. Enjoy!

R O E S A N M A P B M A R P L E W K D F S
P L A N N I N G T E C H N I Q U E S I C E
A B C E W T Y J M N Q A V R T E B D M K L
W E V C A S B N C C G O D S I F A I T L K
T E F E W Q V C N H Q B T E W E G F T E W
G R G E D C R F V M W G G R E W T M G R S
H T V S F D F G H A S N H T G S Y N H T F
J Y B D V X C V M R D M J Y C X O B J Y G
K G C E W Q V C N K F K K G X F P V K G U
M B X E D C R F V I G L M B T G J C M B J
N N X A S D F G J N G B N N Y J H C N N G
B B V Z X C V B M G V V B B P K N X B B H
S C E N A R I O P L A N N I N G B Z E R T
Y H R P O I U H J K L C E R T Y H N F G B
H N T W E G F O R E C A S T I N G D F G N
P A R T I C I P A T O R Y P L A N N I N G
U Y M A S D F G H E W Q V C N A S D F G B
O U N A X C V B M E D C R F V R F V E D G
P G N I N N A L P Y C N E G N I T N O C N
J J B B N M S D F H J K L M V C B N M C X

How many terms have you found? Did you find it all? Congratulations for a job well
done!

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Activity 2: What can you say?

Direction: Read the situation below then write a short paragraph on what will you
do if you are in the said situation. Use a separate sheet of paper for your answer.

The outbreak of the COVID-19 affected our lives. All of a sudden, the normality on
how we live was being disrupted. We have to lock ourselves inside our home to stop
the virus from spreading. Social distancing, wearing of facemasks and washing of
hands became a mandatory. Because of these events, some lost their jobs, some lost
their money and some lost their lives.

Imagine, one of your family members was being laid off from work, what are your
ways to cope up or help your family member cope? In your answer, consider
decision-making as your way to cope up.

Discover

Direction: Read the text below. You can highlight the important terms as you go
along by underlining them.

Planning and Planning Techniques:

For effective planning, there are different techniques and tools one can use. These
include forecasting, contingency planning, scenario planning, benchmarking and
participatory planning.
Forecasting is an attempt to predict what may happen in the future. All
planning types, without exception, make use of forecasting. Business periodicals
publish forecasts such as employment and unemployment rates, increase or
decrease interest rates, stock market data, GNP/GDP data and others. Forecasts
used may either be quantitative or qualitative. Opinions of prominent economists
are used in qualitative forecasts while mathematical calculations and statistical
analyses of surveys/researchers are used in quantitative forecasts. These, however,
are just aids to planning and must be treated with caution. As the name implies,

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forecasts are predictions and may be inaccurate, at times, due to errors of human
judgment.
Contingency factors may offer alternative courses of action when the
unexpected happen or when things go wrong. Contingency plans must be
prepared by managers, ready for implementation when things do not turn out as
they should be. Contingency factors called “trigger points” indicate when the
prepared alternative plan should be implemented.
Planning for future states of affairs is a long term version of contingency
planning and is also known as scenario planning. Several future states of affairs
must be identified and alternative plans must be prepared in order to be able to
meet the changes or challenges that may occur in each of the future scenarios.
This is a big help for organizations because it allows them to plan ahead and make
necessary adjustments in their strategies and operations. Some examples of
changes or challenges that may arise in future scenarios are environmental
pollution, human rights violations, climate and weather changes, earthquake
damages to communities and others.
Benchmarking is another planning 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 organizations do
well and then plan how to incorporate these practices into the company’s
operations. A common benchmarking technique is to search for best practices used
by other organizations that enabled them to achieve superior performance. This is
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.
Participatory planning is a 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. Creativity, increased acceptance, and understanding of plans, and
commitment to the success of plans are positive results of this planning technique.

Decision – making in a Business:

According to Eby (2018), decision-making process involves identifying a goal,

getting the relevant and necessary information, and weighing the alternatives in
order to make a decision.

Process of Decision-making (according to Robbins and Coulter)

1. Identify the problem – the problem may be defined as a puzzling circumstances
or a discrepancy between an existing and a desired condition.
2. Identify the decision criteria – these are important or relevant to resolving the
identified problem.
3. Allocate weights to the criteria – this is done in order to give the decision maker
the correct priority in making the decision
4. Develop alternatives – this step requires the decision maker to list down
possible alternatives that could help resolve the identified problem
5. Analyze the alternatives – alternatives must be carefully evaluated by the
decision maker using the criteria identified in Step 2.
6. Select an alternative – this is the process of choosing the best alternative or the
one which has the highest total points in Step 5.

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7. Implement the chosen alternative – this step puts the decision into action.
Changes in the environment must be observed and assessed, especially in
cases of long-term decisions, to see if the chosen alternative is still the best
one.
8. Evaluate decision effectiveness – this is the last step and involves the
evaluation of the outcome or result of the decision to see if the problem was
resolved. If the problem still exists, the manager has to assess what went
wrong and, if needed, repeat a step or the whole process.

Types of Decisions

A decision is a choice among possible alternative actions. Like planning, decision-

making is a challenge and requires careful consideration for both types of decisions
namely:
1. Structured or programmed decision – a decision that is repetitive and can
be handled by using a routine approach. Such repetitive decision applies to
resolving structured problems which are straightforward, familiar and easily
defined. For example, a restaurant customer complains about the dirty
utensils the waiter has given him. This is not unusual situation, and
therefore, standardized solutions to such a problem may be readily available.
2. Unstructured or nonprogrammed decisions - applied to the resolution of
problems that are new or unusual, and for which information is incomplete.
Such nonprogrammed decisions are described to be unique, nonrecurring,
and need custom-made decisions. For example, a hotel manager is asked to
make decision regarding the building of a new hotel branch in another city to
meet the demands of businessmen there. This is an unstructured problem
and, therefore, needs unstructured or nonprogrammed decisions to resolve it.

Types of Decision-making Conditions

1. Certainty conditions – ideal conditions in deciding problems; these are
situations in which a manager can make precise decisions because the results
of all alternatives are known.
For example, bank interests are made known to clients so it is easier for
business managers to decide on the problem of where to deposit their
company’s funds. The bank which offers the highest interest rate, therefore, is
the obvious choice of manager when asked to make a decision.
2. Risk or uncertainty conditions – a more common condition in deciding
problems. Risk or uncertainty conditions compel the decision maker to do
estimates regarding the possible occurrence of certain outcomes that may affect
his or her chosen solution to a problem. Historical data from his or her
experiences and other secondary information may be used as bases for
decisions to be made by the decision maker under such risk conditions.
For example, a manager is asked to invest some of their company funds in
the money market offered by a financial institution. Risk factors must be
considered, because of the uncertainty conditions involved, before making a
decision – whether to invest or not in the said money market.

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 Explore

Here are some enrichment activities for you to master and strengthen the
basic concepts you have learned from this lesson. Are you ready?

Enrichment Activity No. 1: Let’s Review

Direction: Answer on a separate sheet of paper the following questions below.

1. What are the different planning techniques?

___________________________________________________________________________
___________________________________________________________________________
_____________________________________________________________________

2. Cite two planning techniques, and compare and contrast them by using the
T-Chart below.

3. Among the different planning techniques, which do you think is the best?
Why do you say so?
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________

Enrichment Activity No. 2: Let’s Plan

Direction: Choose one planning technique you wish to adapt when you want to
establish your own business. Cite possible advantages and disadvantages of it. Use
the graphic organizer below.

Planning Technique

Advantages

Disadvantages

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Enrichment Activity No. 3: Let Me Arrange

Direction: Arrange the process of decision-making by putting a number from 1 to 8.

Put your answer on a separate sheet of paper.

_________ Implement the chosen alternatives

_________ Analyze the alternatives
_________ Identify the decision criteria
_________ Develop alternatives
_________ Allocate weights to the criteria
_________ Evaluate decision effectiveness
_________ Select an alternative
_________ Identify the problem

Enrichment Activity No. 4: Let Me Think of an Example

Direction: Cite one example for each type of decision below. Use a separate sheet of
paper for your answer.

Structured or programmed decision Unstructured or nonprogrammed

decision

Enrichment Activity No. 5: Let Me Write

Direction: Read and understand the question carefully and answer it by writing a
short essay. Below is the rubric to assess your output.

1. Which among the two types of decision-making conditions, you think, is

easy to address? Why?
___________________________________________________________________________
___________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
___________________________________________________________________________
________________________________________________________________________

Rubric to assess your short essay

Poor – 1 Fair – 2 Good – 3

The essay is clear and logically arranged.
The essay has introduction, body and
conclusion.
The essay observes the grammar
mechanics.
The essay is informative and has good
content.

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 Deepen

Activity 1: My Flow Chart

A. Direction: Read the paragraph below and do the activity that follows.

The Covid – 19 or Coronavirus tragically affect the many lives around the
world, specifically in our country, Philippines. The number of positive cases keeps
on increasing. With the prohibitions to go out, online selling became a popular
demand. By just browsing, clicking and placing your orders online, your needs will
be right to your doorsteps.

With the given situation, choose one planning technique, and make a flow
chart on how to join the world of online selling in your place. Cite your ways on
how to get started, get customers, or automate your ways to increase your sales.

Below is the rubric to assess your output.

Here is the rubric to check your output.

Fair – 1 Good - 2 Excellent – 3

Your flow chart indicates your
chosen planning techniques.
Your flow chart’s structure is
appropriate to your plans of
establishing an online business.
The elements in your flow chart
are properly labeled.
Your flow chart is logically
arranged and connected.
Your flow chart is easy to follow.

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 B. Direction: Do the given activity below. Below is a rubric to assess your
output.

What you need: Scissors, cut outs from magazine or newspapers, glue and bond
papers.

Situation:
Your family decided to establish an online business by selling homemade snacks.
Cite your ways to strategize in attracting your customers and to increase you sales
by following the process of decision-making.

What to do: Cut pictures or images from magazines and newspapers and organize
these pictures by making a flow chart following the process of decision-making.

Rubric for your output

Illustrations Poor – 1 Fair – 2 Good – 3

The output is presentable and easy to follow.
The output is clear, clean and creative.
The output follows the process of decision-
making.
The output uses the materials properly.
The output has proper captions and labels.

Gauge

Direction: Read each questions carefully and write the letter of your answer on a
separate sheet of paper.

1. What best defines forecasting?

a. Forecasting is an attempt to predict.
b. Forecasting is an attempt to predict what may happen in the future.
c. Forecasting is either qualitative or quantitative.
d. Forecasting aids to planning and must be treated with caution.
2. What are the two types of forecasting?
a. Internal and external forecasting
b. Qualitative and quantitative forecasting
c. Inbound and out bond forecasting
d. All of the given choices.
3. What are some examples of qualitative forecast?
a. Mathematical calculations
b. Opinions of prominent economists
c. Statistical analyses of surveys and researches
d. Weather forecasts

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4. What planning technique is best to use when things do not turn out as they
should be?
a. Benchmarking c. Forecasting
b. Contingency planning d. Scenario planning
5. What factor affects the contingency planning?
a. Contingency factors c. Both A and B
b. Trigger points d. None of the given choices
6. What does the contingency plan indicate?
a. The prepared alternative plan should be implemented.
b. The prepared alternative plan should be ignored.
c. The prepared alternative plan should be discussed.
d. The prepared alternative plan should be neglected.
7. What planning technique is known as a long term version of contingency
planning?
a. Benchmarking c. Forecasting
b. Contingency planning d. Scenario planning
8. What could be the best reason why scenario planning is important?
a. Several future states of affairs must be identified.
b. Alternative plans must be prepared in order to be able to meet challenges
and changes.
c. There are changes or challenges that may occur in each of the future
scenarios.
d. All of the given choices.
9. What are some examples of changes or challenges that may arise in the future
that it needs scenario planning?
a. The Covid-19 Pandemic
b. The losing of ABS-CBN franchise
c. Earthquakes damages to communities
d. All of the given choices.
10. What planning technique involves external comparisons of a company’s
practices and technologies with those of other companies?
a. Benchmarking c. Forecasting
b. Contingency planning d. Scenario planning
11. Among the choices below, what is the main purpose of benchmarking?
a. To find out what other people and organizations do well and then plan how
to incorporate these practices into the company’s operations.
b. To seek consultation from other company so that your own problem within
your company can be resolved.
c. To find out what other company is doing and practicing and just ignore it
because you found out, your company is better.
d. To seek a better compensation from other company and seek for transfer.
12. There are two kinds of benchmarking. Which among the two kinds tell about
searching for best practices used by other organizations that enabled them to
achieve superior performance?
a. Internal benchmarking c. Indoor benchmarking
b. External benchmarking d. Outdoor benchmarking

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13. What benchmarking technique is used when they encourage all their employees
working in their different work units to learn and improve by sharing one
another’s best practices?
a. Internal benchmarking c. Indoor benchmarking
b. External benchmarking d. Outdoor benchmarking
14. What planning process includes people who will be affected by the plans and
those who will be asked to implement them in all planning steps?
a. Benchmarking c. Forecasting
b. Contingency planning d. Participatory planning
15. What positive results can one get if he or she uses participatory planning?
a. Creativity
b. Commitment to the success of plans
c. Increased acceptance and understanding of plans
d. All of the given choices.
16. What is the process that begins with problem identification and ends with
evaluation of implemented solutions?
a. Decision b. Decision-making c. structure decision d. process
17. What step is being referred to when someone is carefully evaluating the
alternatives?
a. Identify the problem. c. Identify the decision criteria.
b. Allocate weights to the criteria. d. Analyze the alternatives.
18. What process is being referred to when someone is already in the process of
choosing the best alternative?
a. Identify the decision criteria. c. Analyze the alternative.
b. Select an alternative. d. Implement the chose alternative.
19. Which one should come first?
a. Evaluate the decision effectiveness. c. Identify the problem.
b. Implement the chosen alternatives. d. Develop alternatives.
20. What is the last process of decision – making where one evaluates the outcome
or result?
a. Analyze the alternatives. c. Select an alternative.
b. Implement the chosen alternative. d. Evaluate the chosen alternative.
21. What type of decision is known as repetitive and can be handled by using
routine approach?
a. Structured or programmed decision
b. Unstructured or nonprogrammed decision
c. Certainty conditions
d. Risk or uncertainty conditions
22. Repetitive decision applies to resolving structured problems. What are the
qualities of these structured problems?
a. Straightforward, familiar and easily defined
b. Straightforward, unusual and familiar
c. Straightforward, new and unusual
d. Straightforward, familiar and difficult to defined
23. Which among the choices below is an example of structured problem?
a. A customer complains about dirty utensils.
b. A customer complains about missing sauce on his burger.

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 c. A customer complains about arrogant waiter.
d. All of the given choices.
24. What type of decision is being referred to that is applied to the resolution of
problems that are new and unusual?
a. Structured or programmed decision
b. Unstructured or nonprogrammed decision
c. Certainty conditions
d. Risk or uncertainty conditions
25. What are the qualities of nonprogrammed decisions?
a. Unique, nonrecurring and need custom-made decisions
b. Common, recurring and doesn’t need custom-made decisions
c. Unique, straightforward and familiar decisions
d. Common, nonrecurring and need custom-made decisions
26. Which is an example of an unstructured decision?
a. A customer complains about the missing tomato in her burger.
b. A manager needs to build a new store in another town.
c. An employee is always late in coming to work.
d. A manager doesn’t give his employees’ wages on time.
27. What type of decision-making condition is being referred to when the manager
can make precise decisions because the results of all alternatives are known?
a. Structured or programmed decision
b. Unstructured or nonprogrammed decision
c. Certainty conditions
d. Risk or uncertainty conditions
28. What type of decision-making condition compels the decision maker to do
estimates regarding the possible occurrence of certain outcomes that may affect
his or her chosen solution to a problem?
a. Structured or programmed decision
b. Unstructured or nonprogrammed decision
c. Certainty conditions
d. Risk or uncertainty conditions
29. What among the choices below is an example of uncertainty condition?
a. A hotel manager is asked to make a decision regarding the building of a
new hotel branch in another city.
b. A customer complains about the dirty plate served to her.
c. A manager is asked to invest some of their company funds in the money
market offered by a financial situation.
d. All of the given choices.
30. What might likely to happen when a problem still exists despite following the
process the decision making?
a. The manager has to assess what went wrong.
b. The manager has to repeat a step or the whole process of decision-
making.
c. The manager has to assess what went wrong and has to repeat a step or
the whole process of decision-making if needed.
d. None of the given choices.

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Reference:

Printed Materials

Cabrera, H.M. F., et.al. (2016). Organization and Management. Vibal Group, Inc.

(pp.34-35). Quezon City. Philippines.

Internet Sources

Eby, Kate. (2018). The definitive guide to business decision-making. Smartsheet.

Retrieved on July 24, 2020 from https://www.smartsheet.com/business-

decision-
makingprocess#:~:text=The%20decision%2Dmaking%20process%20involves,
that%20occur%20when%20making%20decisions.

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KEY ANSWER:

TARGET:

Activity 1: Pretest:

1. C
2. D
3. A
4. D
5. D
6. B
7. D
8. D
9. D

Activity 2: Anticipation Guide

Answer varies.

JUMPSTART

Activity 1: Word Hunt Game

R O E S A N M A P B M A R P L E W K D F S
P L A N N I N G T E C H N I Q U E S I C E
A B C E W T Y J M N Q A V R T E B D M K L
W E V C A S B N C C G O D S I F A I T L K
T E F E W Q V C N H Q B T E W E G F T E W
G R G E D C R F V M W G G R E W T M G R S
H T V S F D F G H A S N H T G S Y N H T F
J Y B D V X C V M R D M J Y C X O B J Y G
K G C E W Q V C N K F K K G X F P V K G U
M B X E D C R F V I G L M B T G J C M B J
N N X A S D F G J N G B N N Y J H C N N G
B B V Z X C V B M G V V B B P K N X B B H
S C E N A R I O P L A N N I N G B Z E R T
Y H R P O I U H J K L C E R T Y H N F G B
H N T W E G F O R E C A S T I N G D F G N
P A R T I C I P A T O R Y P L A N N I N G
U Y M A S D F G H E W Q V C N A S D F G B
O U N A X C V B M E D C R F V R F V E D G
P G N I N N A L P Y C N E G N I T N O C N
J J B B N M S D F H J K L M V C B N M C X

Activity 2: What Can You Say?

Answer varies.

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EXPLORE:

Enrichment Activity No. 1: Let’s Review

Answers vary.

Enrichment Activity No. 2: Let’s Plan

Answers vary.

Enrichment Activity No. 3: Let Me Arrange

1. 7
2. 5
3. 2
4. 4
5. 3
6. 8
7. 6
8. 1

Enrichment Activity No. 4: Let Me Think of an Example

Answer varies.

Enrichment Activity No. 5: Let Me Write

Answer varies.

DEEPEN:

Activity 1: My Flow Chart

Answer varies.

GAUGE:

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

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16. B
17. D
18. B
19. C
20. D
21. A
22. A
23. D
24. B
25. A
26. B
27. C
28. D
29. C
30. C

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