1Org-and-Mgt Q1 MOD-1 MgmtTheoriesTypesFunctions Week1

SHS
Organization and Management

Module 1:
Management Theories, Types
and Functions
AIRs - LM
LU_ Organization and Management_Module 1
ABM – ORGANIZATION AND MANAGEMENT
Module 1: Management Theories, Types and Functions
Second Edition, 2021
Copyright © 2021
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: Madylene P. Peralta

Editor: SDO La Union, Learning Resource Quality Assurance Team
Content and Language Reviewer: Joselito Dumocmat
Illustrator: Ernesto F. Ramos Jr.
Design and Layout: Angela Pauline C. Ganuelas
Management Team:
Atty. Donato D. Balderas Jr.

Schools Division Superintendent
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Assistant Schools Division Superintendent
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Virgilio C. Boado, Ph.D, EPS in Charge of LRMS
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Michael Jason D. Morales, PDO II
Claire P. Toluyen, Librarian II
Printed in the Philippines by: _________________________
Department of Education – SDO La Union

Office Address: Flores St. Catbangen, San Fernando City, La Union
Telefax: 072 – 205 – 0046
Email Address: launion@deped.gov.ph

SHS
Organization and Management

Module 1:
Management Theories, Types
and Functions
Introductory Message

This Self-Learning Module (SLM) is prepared so that you, our dear
learners, can continue your studies and learn while at home. Activities,
questions, directions, exercises, and discussions are carefully stated for you
to understand each lesson.
Each SLM is composed of different parts. Each part shall guide you
step-by-step as you discover and understand the lesson prepared for you.
Pre-tests are provided to measure your prior knowledge on lessons in

each SLM. This will tell you if you need to proceed on completing this module
or if you need to ask your facilitator or your teacher’s assistance for better
understanding of the lesson. At the end of each module, you need to answer
the post-test to self-check your learning. Answer keys are provided for each
activity and test. We trust that you will be honest in using these.
In addition to the material in the main text, Notes to the Teacher are
also provided to our facilitators and parents for strategies and reminders on
how they can best help you on your home-based learning.
Please use this module with care. Do not put unnecessary marks on
any part of this SLM. Use a separate sheet of paper in answering the exercises
and tests. And read the instructions carefully before performing each task.
If you have any questions in using this SLM or any difficulty in

answering the tasks in this module, do not hesitate to consult your teacher
or facilitator.
Thank you.

Target
Nowadays, different organizations can start from small, medium or large size,
public or private owned, and it’s either profit or nonprofit. And all of them need a
certain type of organizational management that would be effective to reach and carry
out their goals.
This module will provide you the necessary information and activities that will
help you understand the nature and concept of management.
After going through this module, you are expected to:
1. explain the meaning, functions, types and theories of management

(ABM_AOM11-Ia-b-1).
Subtasks:
a. Define management
b. Identify and describe the functions, types, and theories of management
c. Explain the functions, types, and theories of management
Before going on, check how much you know about this topic.
Answer the pretest on the next page in a separate sheet of paper.
5
Jumpstart
For you to understand the lesson well, do the following

activities. Have fun and good luck!
MULTIPLE CHOICE
Direction: Read and understand each question carefully. Write the letter
of the best answer in a separate sheet of paper.
1. Which management theory focuses on human aspect of work?

A. Administrative Management B. Behavioral Management
C. Organizational Environment D. Management Science
2. Which management function involves in determining the organization’s goals,
performance objectives, and defining strategic actions that must be done to
accomplish them?
A. Controlling B. Leading
C. Organizing D. Planning
3. Which of the following influential people is known as the father of scientific
management?
A. Fayol B. Mayo
C. Taylor D. Weber
4. Which of the following is an example of the Hawthorne study?
A. Bank wiring observation B. Employee interview program
C. Lighting experiment D. Machine testing
5. Who is the father of Principles of Management?
A. Abraham Maslow B. Elton Mayo
C. Frederick Taylor D. Henri Fayol
6. Which theory states that human factor alone is not a consideration to achieve
organizational effectiveness?
A. Behavioral Management B. Management Science
C. Organizational Environment D. Scientific Management
7. Which of the following is the last need of human base on Maslow’s Hierarchy of
Needs?
A. Belonging B. Esteem
C. Physiological D. Self-actualization
8. Which part of the management function includes evaluating results, correcting
performance of employees and see to it that set goals and plans will be achieved?
9. Which term best describes the process of obtaining, deploying, and utilizing a
variety of resources to contribute to an organization's success?
A. Management B. Organizing
C. Planning D. Staffing
10. Which management principle states that each subordinate should report and
receive to only one superior to avoid conflict or confusion?
A. Authority B. Centralization
C. Equity D. Unity of Command
6
Discover
Management functions are needed in order to accomplish the management

process of coordinating and overseeing the work performance of individuals working
together in organizations.
Management functions include the following:
(a) Planning involves determining the organization’s goals, listing down action
plan that must be done and the resources to be used to accomplish them.
(b) Organizing includes assigning tasks, setting aside funds for future use, and
developing harmonious relationship among them for the achievement of
organizational goal.
(c) Staffing indicates filling in the different job positions in the organization’s
structure which includes recruiting individuals depending on the type of jobs and
number of manpower needed. Its purpose is to put the right person on the right job.
(d) Leading/directing involves influencing, supervising, training, guiding and
motivating subordinates to do their best so that they would be able to help the
organization’s endeavor to attain their set goals.
(e) Controlling involves evaluating and, if necessary, correcting the performance
of the individuals or teams to ensure that they are all working toward the previously
set goals and plans of the organization.
Management functions will all go to waste if coordination, efficiency, and

effectiveness are not practiced by an organization’s managers. Coordination ensures
that all individuals or teams are harmoniously working together to achieve their goal
while efficiency 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 aim.
Example: Ivan work as a Production Leader in a Manufacturing Company. As

a leader, his duties includes the following: creates monthly planning in order to meet
the given amount of output product of a certain motor, plans the specific number of
motors that should be finish daily and how many motors should an individual make
in every hour to meet the daily quota and if in case some machines broke down
during the production, what is the right action to do to recover and still meet the
quota. And so, before the start of production, he needs to check if the staffs needed
are complete to form the production line and if not, then they need to recruit some
individuals in other department depending on the needed skills in the production.
Then organize the intended work groups to make a certain part of a motor up to the
end of the production line and make sure that they work all together harmoniously
to finish the product. And to motivate them to finish their task accordingly, rewards
are given to the operators such as giving vacation leaves, gifts for the best operator,
treat them outside, etc. And lastly, to make sure that they meet the daily quota,
their absences are controlled and make sure that all operators do their tasks
correctly and check if their machines are working according to the standards that
they should meet in making the motors.
7
Planning
Controlling Organizing
Leading/
Staffing
Directing
FIGURE 1. The Five Functions of Management
Management can be used in different aspects of life. For the past decades, a
lot of management approach is developed. Some of them even originated from
another management approach. In this module, we will just discuss the important
events of some specific management.
It began in the late 19th century after the Industrial Revolution but saw more
definitive form in the 20th century. Industrial Revolution refers to the transition from
hand production methods to machines, new chemical manufacturing processes, iron
production processes, increasing use of steam power, and the development of
machine tools.
FIGURE 2: Evolution of Management
8
Evolution of Management Theories:
1. Scientific Management Theory
Frederick W. Taylor (1856-1915) known as the “Father of Scientific

Management” is the most significant contributor of this approach. He defines
management as “the one best way” for a job to be done. He made a study of his
worker why they have a low output. The result came out that the workers have
lack of enthusiasm, and discrepancy in their job assignments with their skills.
And so, he came up with the Scientific Management Principles.
Four Principles of Scientific Management:
1. Develop a new method in performing a job base in science to replace

the old one.
2. Teach, train and develop the workers.
3. Interest of employer & employees should be fully harmonized
4. Establish fair division of work and responsibility between management
and workers.
Another contributor of this approach is the husband and wife tandem of Frank
Gilbreth (1868-1924) and Lillian Gilbreth (1878-1972). They devised a
classification of scheme to label 17 basic hand motions to increase productivity
and remove wasteful motion which is called the “THERBLIGS”.
2. Administrative Management Theory
This theory focused on manager’s role and what management practices are
best to apply. The most famous personalities in this approach are Henri Fayol
(1841-1925) known as the “Father of Principles of Management” and Max Weber
(1864-1920). Fayol believed that management activities should be practiced and
viewed separately from other organization activities such as marketing, finance
and research. While Weber wrote that organizations must have authority
structures and coordination with others based on what he referred to as
bureaucracy.
Henri Fayol’s Management Principles:
1. Work division or specialization

2. Authority and Responsibility
3. Discipline
4. Unity of Command
5. Unity of Direction
6. Subordination of individual interest to general interest
7. Remuneration/pay
8. Centralization
9. Scalar chain of authority
10. Maintenance of Order
11. Equity/fairness
12. Stability of tenure of workers
13. Employee Initiative
14. Espirit de corps/Promotion of team spirit
9
Division of Work – Work is divided according to the specialization or skill of
the worker to increase their efficiency
Authority and Responsibility – refers to the issue of commands followed by

responsibility for their consequences.
Discipline – refers to obedience, proper conduct in relation to others, respect

of authority, etc.
Unity of Command – states that each subordinate should receive orders and
be accountable to one and only one superior.
Unity of Direction – all those working in the same line of activity must
understand and pursue the same objectives.
Subordination of Individual Interest – the management must put aside

personal considerations and put company objectives firstly.
Remuneration – workers must be paid sufficiently as this is a chief motivation

of employees and therefore greatly influences productivity.
Degree of Centralization – the amount of power wielded with the central

management depends on company size.
Scalar Chain – refers to the chain of superiors ranging from top management
to the lowest rank.
Order – social order ensures the fluid operation of a company through

authoritative procedure.
Equity – employees must be treated kindly, and justice must be enacted to

ensure a just workplace.
Stability of Tenure of Personnel – the period of service should not be too

short and employees should not be moved from positions frequently.
Initiative – using it can add strength and new ideas to an organization.
Esprit de Corps – refers to the need of managers to ensure and develop morale
in the workplace; individually and communally.
Bureaucratic Characteristic:
1. Division of Labor
2. Formal Hierarchical Structure
3. Selection based on Technical Expertise
4. Management by Rules
5. Written Documents
6. Only Legal Power is Important
7. Formal and Impersonal relations
10
3. Behavioral Management Theory
This is also known as Human Relations Management Theory. This theory

focused on the human aspect of work. Elton Mayo (1880-1949) and Abraham
Maslow (1908-1970) are the most commonly associated personalities in this era.
Mayo did a study known as the “Hawthorne”, the lighting experiment and the
bank wiring room supervision experiment to know what affects the productivity
of a worker. From this experiment, he concluded that the supervisory tasks given
to the worker (giving privileges and special attention) boost their productivity and
the lighting has nothing to do with it. In addition, he emphasized that the human
relations and social needs of workers are important aspects of management.
On the other hand, Maslow created a theory based on his assumption of the
human needs known as Maslow’s Hierarchy of Needs. Needs are classified
according to hierarchical structure of importance from lowest to highest.
FIGURE 3: Maslow’s Hierarchy of Needs
(a) Physiological needs include food, clothing, shelter, air, sex, and all other
physical needs necessary for a human being to live well.
(b) Safety needs includes the basic security, stability and protection such as
body, employment, resources, family, property, and health security.
(c) Belonging and Love needs includes friendship, family and sexual
intimacy.
(d) Esteem needs includes self-esteem, confidence, achievement, respect,
fame, and glory.
(e) Self-actualization needs is the last need to be satisfied where in an
individual feels the need of finding himself. This may include acceptance
of facts, morality, spontaneity, and others.
4. Management Science Theory
This is also known as the Quantitative approach to management. This theory

originated during World War II as mathematical and statistical solutions to
military problems were developed for war time used.
11
5. Organizational Environment Theory
This theory focused on understanding the external factors in the environment

that might have an effect on achieving organization’s goal. They’ve recognized
that human factor alone is not the only reason to achieve their aim. Factors
such as social, technical and economic can be in the form of system (Open or
Closed) might as well affect their organization. Open system interacts with its
environment (trends and interest of people, etc.) while Closed system has no
interaction with its environment (machines and materials, etc.).
Understanding which system might affect the organization either good or bad
will lead managers to plan, decide and take actions for the benefit of the whole
organization.
Different Types of Management Styles
1. Autocratic
An autocratic style of management, is when a manager makes decision
unilaterally. The manager conveys the decision to staff, and they have to work,
within the scope of that decision.
2. Consultative
In consultative style, the manager engages the subordinates efficaciously,
in the decision making and problem-solving process. Consultative style
endorses the concept of empowerment. Communication is generally
downward, but feedback to the management, is encouraged to maintain
morale.
3. Persuasive
Persuasive style of management is somewhat similar to the autocratic style
of management. The major difference is that, despite holding the entire power
of decision making, the persuasive manager spends more time, working with
his subordinates, in order to try to convince them, of the benefits of the
decision that have been made.
4. Democratic
Democratic style is a multilateral approach, where the manager allows the
employees, to take part in decision-making, and therefore everything is agreed
upon by the majority. This type of management style is mostly found in
businesses, where efficiency is a joint operation.
5. Laissez Faire
Laissez Faire by definition means refusal to interfere. In Laissez Faire style,
the role of the manager is more like a mentor and stimulator, and the
employees manage their respective areas of business. This type of
management works only, if the people involved are self-motivated and task
oriented.
12
Explore
Here are some enrichment activities for you to work on to master

and strengthen the basic concept you have learned from the lesson.
Enrichment Activity 1: Give Me!
Direction: Write a sentence or phrase that best describe each term below.
Write your answers in a separate sheet of paper.
1. Management Science
2. Administrative Management
3. Scientific Management
4. Behavioral Management
5. Organizational Environment
Enrichment Activity 2: I just want to know!
Direction: Read and understand each question carefully. Write your answer
in a separate sheet of paper.
1. What is the main objective of Max Weber management theory and how does
it differ to Henri Fayol’s management theory?
2. In your own opinion, which among the management theories discussed

had the biggest impact in today’s management practices? Explain your
answer.
3. If you are going to choose one management style, which type do you think
is the most appropriate to use in school? Why?
4. Cite the roles of the following sociologist/philosopher in the development

of management theories:
a. Frank and Lillian Gilbreth
b. Abraham Maslow
c. Elton Mayo
d. Frederick W. Taylor
Great job! Can you summarize now the lesson? Keep on going.
13
Deepen
At this point, you are now ready to apply your knowledge in management in
real-life situations.
Direction: Read and understand the following situations below. Write your
answer in a separate sheet of paper.
Scenario 1: As a student, think of a task in school where you think you could apply
your knowledge in management. Enumerate the steps on how you are going to do it,
then identify the management theories applied in your task? Clarify your answer.
Scenario 2: Ivan Tatlonghari is a manager of a well-known fast food chain. He

noticed that their daily profit is decreasing due to his employee’s inadequate
experience. With your knowledge in management, what advice can you give to Ivan
to solve his problem? Which among the management theories and management style
is best to apply in this situation? Clarify your answer.
TABLE 1: Rubrics for Scoring the Output

Excellent Very Satisfactory Poor Very
(5 pts) Satisfactory ( 3 pts) (2 pts) Poor
( 4 pts) (1 pt)
Content Answers are Answers are Answers are Answers are Answer
comprehensive, accurate and not partial or is not
accurate, and complete. completely incomplete. related to
complete. Key Key points stated and Questions the
ideas were were stated key points not question
clearly stated, and are adequately
explained and supported. addresses answered.
well supported. but not
supported.
Construction Well organized, Organization Inadequate Organization Answer is
coherently is mostly organization and not
developed and clear and and structure organized
easy to follow. easy to structure of detract from
follow. answer is the answer.
not easy to
follow.
Good Job! You’re almost done!
14
Gauge
Post-Test
MULTIPLE CHOICE: Direction: Read and understand each question

carefully. Write the letter of the best answer in a separate sheet of paper.
1. Which management principle states that each subordinate should report and
receive to only one superior to avoid conflict or confusion?
A. Authority B. Centralization
C. Equity D. Unity of Command
2. Which part of the management function includes evaluating results, correcting
performance of employees and see to it that set goals and plans will be achieved?
3. Who is the father of scientific management?
A. Fayol B. Mayo
C. Taylor D. Weber
4. Which is an example of the Hawthorne study?
A. Bank wiring observation B. Employee interview program
C. Lighting experiment D. Machine testing
5. Andrei spend most of his time at work setting their goals and deciding on the
different tasks for the subordinates to achieve it. What management function is
displayed in this situation?
A. Leading B. Organizing
6. Which management theory states that human factor alone is not a consideration
to achieve organizational effectiveness?
A. Behavioral Management B. Management Science
C. Organizational Environment D. Scientific Management
7. Who is the father of Principles of Management?
A. Abraham Maslow B. Elton Mayo
C. Frederick Taylor D. Henri Fayol
8. What management theory was developed during World War II as mathematical
and statistical solutions to military problems?
C. Management Science D. Scientific Management
9. If you feel you need to find yourself, which among the Maslow’s Hierarchy of need
would you consider?
A. Belonging B. Esteem
C. Physiological D. Self-actualization
10. Which management theory focuses on human aspect of work?
C. Organizational Environment D. Management Science
15
11. Diane is the manager of a five-star hotel. In her 5-day observation, she noticed
that they have plenty of customers checking in and out. Due to insufficient staffs
to assist the customer’s daily need, she decided to recruit and hire for additional
employee. What management function is displayed in this situation?
C. Organizing D. Staffing
12. Which of the following is NOT a characteristic of bureaucracy?
A. Generalism B. Hierarchy of authority
C. Impersonality D. Specialization
13. Which of the following statements is correct in terms of Autocratic to persuasive
type of management?
A. Manager is more like a mentor.
B. Manager makes the entire decision.
C. Manager allows the employees in decision making.
D. Manager spend more time working with his subordinates.
14. Which term best described asthe process of obtaining, deploying, and utilizing a
variety of resources to contribute to an organization's success?
A. Management B. Organizing
15. What management function is involved in the determination of the organization’s
goals, performance objectives, and defining strategic actions?
Job well done! Congratulations!
16
17
PRE-TEST
1. B
2. D
3. C
4. C
5. D
6. C
7. D
8. A
9. A
10. D
ENRICHMENT ACTIVITY 1
1. Quantitative Approach, originated during World War II, etc.
2. Principles of Management, Bureaucracy, focused on manager’s
role, etc.
3. One best way for a job to be done, Scientific Management
Principles, etc.
4. Human Relations Management theory, focused on human
aspects, Hawthorne experiment, etc.
5. Open and Closed System, external factors in the environment that
affects organization, etc.
Answer Key
18
ENRICHMENT ACTIVITY 2
4. a. THERBLIGS
b. Maslow’s Hierarchy of Needs
c. Hawthorne Experiment
d. Four Principles of Scientific Management
POST-TEST
1. D
2. C
3. C
4. C
5. C
6. C
7. D
8. C
9. D
10. B
11. D
12. A
13. D
14. A
15. D
References
Edilynda G. Enriquez.2016. Organization and Management. 168 D. Jorge Street,

Pasay City, Philippines: JFS Publishing Services
Helen Ma. F. Cabrera, Anthony DC. ALtarejos, and Riaz Benjamin. 2016.
Organization and Management. 1253 Gregorio Araneta Avenue, Quezon City,
Philippines: Vibal Group, Inc.
Ranulfo P. Payos, Ernesto G. Espinosa, Orlando S. Zorilla. 2016. Organization and

Management. Manila, Philippines: Rex Bookstore, Inc.
Emmanuel T. Santos.2016. Organization & Management. 1061 Metropolitan

Avenue, San Antoniop Village, Makati City: International Academy of Management
& Economics
https://www.technofunc.com/index.php/leadership-skills-2/leadership-a-
management/item/management-theories
https://courses.lumenlearning.com/wm-organizationalbehavior/chapter/different-
management-theories/
19
For inquiries or feedback, please write or call:
Department of Education – SDO La Union

Curriculum Implementation Division
Learning Resource Management Section
Flores St. Catbangen, San Fernando City La Union 2500
Telephone: (072) 607 - 8127
Telefax: (072) 205 - 0046
Email Address:
launion@deped.gov.ph
lrm.launion@deped.gov.ph
20

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SHS

Organization and Management

Development Team of the Module

Author: Madylene P. Peralta

Atty. Donato D. Balderas Jr.

Printed in the Philippines by: _________________________

Department of Education – SDO La Union

LU_ Organization and Management_Module 1

Organization and Management

LU_ Organization and Management_Module 1

Pre-tests are provided to measure your prior knowledge on lessons in

If you have any questions in using this SLM or any difficulty in

LU_ Organization and Management_Module 1

After going through this module, you are expected to:

1. explain the meaning, functions, types and theories of management

For you to understand the lesson well, do the following

1. Which management theory focuses on human aspect of work?

Management functions are needed in order to accomplish the management

Management functions include the following:

Management functions will all go to waste if coordination, efficiency, and

Example: Ivan work as a Production Leader in a Manufacturing Company. As

FIGURE 1. The Five Functions of Management

FIGURE 2: Evolution of Management

1. Scientific Management Theory

Frederick W. Taylor (1856-1915) known as the “Father of Scientific

Four Principles of Scientific Management:

1. Develop a new method in performing a job base in science to replace

2. Administrative Management Theory

Henri Fayol’s Management Principles:

1. Work division or specialization

Authority and Responsibility – refers to the issue of commands followed by

Discipline – refers to obedience, proper conduct in relation to others, respect

Subordination of Individual Interest – the management must put aside

Remuneration – workers must be paid sufficiently as this is a chief motivation

Degree of Centralization – the amount of power wielded with the central

Order – social order ensures the fluid operation of a company through

Equity – employees must be treated kindly, and justice must be enacted to

Stability of Tenure of Personnel – the period of service should not be too

Initiative – using it can add strength and new ideas to an organization.

This is also known as Human Relations Management Theory. This theory

FIGURE 3: Maslow’s Hierarchy of Needs

4. Management Science Theory

This is also known as the Quantitative approach to management. This theory

This theory focused on understanding the external factors in the environment

Different Types of Management Styles

Here are some enrichment activities for you to work on to master

Enrichment Activity 1: Give Me!

Enrichment Activity 2: I just want to know!

2. In your own opinion, which among the management theories discussed

4. Cite the roles of the following sociologist/philosopher in the development

Scenario 2: Ivan Tatlonghari is a manager of a well-known fast food chain. He

TABLE 1: Rubrics for Scoring the Output

Good Job! You’re almost done!

MULTIPLE CHOICE: Direction: Read and understand each question

Job well done! Congratulations!

Edilynda G. Enriquez.2016. Organization and Management. 168 D. Jorge Street,

Ranulfo P. Payos, Ernesto G. Espinosa, Orlando S. Zorilla. 2016. Organization and

Emmanuel T. Santos.2016. Organization & Management. 1061 Metropolitan