ORGANIZATION AND

MANAGEMENT 12
Presented by:
Ritchelle M. Apostol
Subject Teacher
 REVIEW
Different structures
of organization
Picture Analysis #1
Picture Analysis #2
 Organization theories for
effective business management
 2 CLASSIFICATIONS OF
THEORIES

1. Traditional Theories
pertains to the
usual or old fashioned ways
 Traditional Organizational
Design Theories

a. Simple design
- this organization has few
departments, wide spans of control or
a big number of subordinates directly
reporting to a manager.
b. Functional Design
this
–

organizational design
groups together similar or
related specialties
c. Divisional Design
– made up of separate
business divisions or units where
the parent corporation acts as
overseer to coordinate and control
the different divisions and provide
financial and legal support services
2. Modern Theories
- refers to the
contemporary or new
design theories.
 Modern Organizational Design
Theories

a. Team Design
- the entire
organization is made up of
work groups or teams
b. Matrix-Project Design
- specialist from different
departments work on projects that are
supervised by a project manager. This
design results in a double chain of
command wherein workers have two
managers-their functional area manager
and their project area manager
c. Boundary-less design
- there are no hierarchal levels
that separate employees, no
departmentalization, and no boundaries
that separate the organization from
customers, suppliers and other
stakeholders
 Organizational Design Strength Weakness
Simple design fast decision-making and results Risk with over dependence with
one person

management is facilitated managers have little knowledge

Functional because workers with similar of other units’ function
Design tasks are grouped together

managers are responsible for Possible duplications of

Divisional Design what happens to their products
and services
Empowerment of team
Team Design members, reduced barriers
among functional areas
activities and resources,
increased cost and reduced
efficiency
clear chain of command, great
pressure on teams to perform

Specialists are involved in the Complexity on assigning people

Matrix-Project project, fast decision-making to projects; Task and personality
Design conflicts,

Highly flexible and responsive Lack of control; problems in

Boundary-less communication
design
What are the different
modern organization
design theories
What are the different
traditional
organizational design
theories
 Traditional
Vs.
Modern Approach of
organizational design
 FORMATIVE
ASSESSMENT
Answer the following questions.
1. What are the three traditional design
theories ? Briefly define each
2. Name the three modern design.
Define each
Activity 1: Choose What’s best for
you. Below are scenarios which
call for a specific organizational
design. If you were the manager,
what is the most appropriate
organizational design that you will
choose?
 Scenario #1
There are lots of milk tea shops which sprouts within your
locality. Because of this, you want to have another line of
business which will complement your milk tea business. You
come up with an idea of opening a cake and dessert shop,. You
hire a cake and pastry chef and two store attendants. This is in
addition to your existing two milk tea shop employees.
Moreover, you will put up two additional stores in the nearby
municipalities. You hire a manager and a supply officer for each
branch and the same number of employees in the first store.
Because of the growing number of employees, you also hire an
administrative staff to take care of an employment concerns

 Best Organizational Design that you will choose and

why?
Scenario #2
You are an Overseas Filipino Worker who
decides to quit working abroad and put up an
agricultural supply business. You plan to hire one
sales clerk, two warehouse men and one office
clerk. You will oversee the day to day operations
of the store.
 Best Organizational Design that you will
choose and why?
 Scenario #3
Your company knows that your hand sanitizer sales seem to have
been overtaken by other competitor brands in the market. The
board of directors has approved your proposal to form a core group
who will conduct a research that will find out the current demand
and trends in hand sanitizers and come up with the new product.
You have instructed the 10 area managers from Luzon, Visayas and
Mindanao to send the names of their marketing head and company
researchers. The twenty men and women will be the members of
the national product development group who will be led by a
marketing research head. Although, they are assigned to be a
member of this endeavour, they will still report their participation
and accomplishments to their mother branch manager.

 Best Organizational Design that you will choose and why?

 Activity 2: Identify the organizational
design shown by the illustrations bellow