Organization module

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11
ABM – Specialized Subject
1st
Quarter – Module 1
Organization and Management
Nature and Concept of Management

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Organization and Management – Grade 11
Alternative Delivery Mode
Quarter 1 – Module 1: Nature and Concept of Management
First Edition, 2020
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Published by the Department of Education
Secretary: Leonor Magtolis Briones
Undersecretary: Diosdado M. San Antonio
Development Team of the Module
Writers: Mamerto T. Goneda, MSIT, DIT(cand.) Isabel A. Gumaru, DBA
Jupiter Q. Whiteside, MBA Manuel L. Hermosa, EdD
Farida F. Tallud, DBM Ma. Cristina A. Labay, MM
Ellaine I. Dela Cruz, DBA Clarabelle V. Dalimit, D
Mark Vincent B. Emit, PhD Edba B, Waje, DEM
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Introductory Message
For the facilitator:
Welcome to the Organization and Management. Alternative Delivery Mode (ADM)
Module on Nature and Concept of Management.
This module was collaboratively designed, developed and reviewed by educators
both from public and private institutions to assist you, the teacher or facilitator in
helping the learners meet the standards set by the K to 12 Curriculum while
overcoming their personal, social, and economic constraints in schooling.
This learning resource hopes to engage the learners into guided and independent
learning activities at their own pace and time. Furthermore, this also aims to help
learners acquire the needed 21st century skills while taking into consideration their
needs and circumstances.
In addition to the material in the main text, you will also see this box in the body of
the module:
Notes to the Teacher
This contains helpful tips or strategies
that will help you in guiding the learners.
As a facilitator you are expected to orient the learners on how to use this module.
You also need to keep track of the learners' progress while allowing them to manage
their own learning. Furthermore, you are expected to encourage and assist the
learners as they do the tasks included in the module.
For the learner:
Welcome to Fundamentals of Organization and Management Alternative Delivery
Mode (ADM) Module on Nature and Concept of Management
The hand is one of the most symbolized parts of the human body. It is often used to
depict skill, action and purpose. Through our hands we may learn, create and
accomplish. Hence, the hand in this learning resource signifies that you as a learner
is capable and empowered to successfully achieve the relevant competencies and
skills at your own pace and time. Your academic success lies in your own hands!
This module was designed to provide you with fun and meaningful opportunities for
guided and independent learning at your own pace and time. You will be enabled to
process the contents of the learning resource while being an active learner.

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This module has the following parts and corresponding icons:
What I Need to Know
What I Know
What’s In
What’s New
What is It
What’s More
What I Have Learned
What I Can Do
Assessment
Additional Activities
Answer Key
This will give you an idea of the skills or
competencies you are expected to learn in
the module.
This part includes an activity that aims to
check what you already know about the
lesson to take. If you get all the answers
correct (100%), you may decide to skip this
module.
This is a brief drill or review to help you link
the current lesson with the previous one.
In this portion, the new lesson will be
introduced to you in various ways such as a
story, a song, a poem, a problem opener, an
activity or a situation.
This section provides a brief discussion of
the lesson. This aims to help you discover
and understand new concepts and skills.
This comprises activities for independent
practice to solidify your understanding and
skills of the topic. You may check the
answers to the exercises using the Answer
Key at the end of the module.
This includes questions or blank sentences/
paragraphs to be filled into process what you
have learned from the lesson.
This section provides an activity which will
help you transfer your new knowledge or skill
into real life situations or concerns.
This is a task which aims to evaluate your
level of mastery in achieving the learning
competency.
In this portion, another activity will be given
to you to enrich your knowledge or skill of the
lesson learned. This also tends retention of
learned concepts.
This contains answers to all activities in the
module.

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What I Need to Know.
This module was written for you to accomplish at home. It was carefully
designed so that you can work at your own pace and allow self-discovery of the
concept through activities that you will perform. Activities were also selected to allow
independent learning which also aims to develop students’ reading comprehension
skills through understanding written texts.
After going through the module, you are expected to:
1. discuss the meaning and functions of management;
2. explain the various types of management theories; and
3. explain the functions, roles, and skills of a manager.
What I Know…..
I. TRUE or FALSE
Directions: Before each statement, write TRUE if the statement is correct or FALSE
if the statement is incorrect.
_____________ 1) Management is goal-oriented when they achieve specific goals.
______________2) Management is a continuous process to operate as long as there is
organized action for the achievement of group goals.
______________3) Management is universal that has an unessential element of every
organized activity.
_____________ 4) Management is situational that there is the best way of doing
things and not to solve particular problems
conditions and situations.
_____________5) Management is multidisciplinary such as management
techniques, principles, and theories.
II. MULTIPLE CHOICE
Directions: Choose the letter corresponding to the correct answer for each of the
questions provided below.
1. Management is an essential element of every organized activity irrespective of the
size or the type of the activity.
a. Management is universal
c. Management is goal-oriented
b, Management is continuous process
d. Management is multi-disciplinary

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2. This is where you communicate potentially useful information to your colleagues
and your team.
a. Spokesperson b. Monitor
c. Disseminator d. Negotiator
3. In which the ability to think and to conceptualize about abstract and complex
situations.
a. Inter-relationship skills b. Conceptual skills
c. Technical skills d. Human skills
4. Which of the following has three common characteristics such as distinct purpose,
composed of people, and develops some deliberate structure?
a. Management b. Organization
c. Organizing d. Directing
5. As manager, you create and control change within the organization. This means
solving problems, generating new ideas, and implementing them.
a. Conceptual skills b. Human skills
c. Technical skills d. None of the above
What is It
Learning Module 1
Lesson 1
Lesson 2
– Nature and Concept
of Management
– Functions, Roles and
Skills of a Manager
Definition of Management
 Refers to the act or bringing together the work activities to achieve the
organization’s goals and objectives. Basically, it means teamwork.

 It is essentials in any organization, leader-manager must realize the important
of people working harmoniously with the aim of effectively reaching the target
goals of the company.

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Management defined by Management Guru’s:
 "Management is a multi-purpose organ that manages business and manages
managers and manages workers and work." Peter Drucker.

 According to Mary Parker Follet, "Management is the art of getting things
done through people." Mary Parker Follet.

 According to Harold Koontz, “Management is an art of getting things done
through and with the people in formally organized groups. It is an art of
creating an environment in which people can perform and individuals and can
co-operate towards attainment of group goals”.
Characteristics and Nature of Management
The salient features which highlight the nature of management are as follows:
A. Management is goal oriented: management is not an end in itself. It is a
means to achieve certain goals. Management has no justification to exist
without goals. Management goals are called group goals or organizational
goals. The basic goal of management is to ensure efficiency and economy in
the utilization of human, physical and financial resources. The success of
management is measured by the extent to which the established goals are
achieved. Thus, the management is purposeful.
B. Management is universal: Management is an essential element of every
organized activity irrespective of the size or the type of the activity.
C. Management is continuous process: The cycle of the management
continues to operate as long as there is organized action for the achievement
of group goals. Management is 5 an ongoing process and is also a never-
ending process. Management is dynamic and the cycle is continues.
D. Management is multi-disciplinary: Management techniques, principles and
theories are drawn from other disciplines such as engineering, anthropology,
sociology and psychology. It depends on wide knowledge and practice
derived from various discipline.
E. Management is intangible force: Management is evidenced by the results of
its efforts through others. Management is unseen and invisible force. It can
not be seen, but its presence can be felt in the form of results in very type of
organization.
F. Management is situational: There is no best way of doing things. To solve a
particular problems conditions and situations must be taken into account. vii.
Management is a system of authority: Management provides the direction of
every activity of an organization. Management forms system of authority or a
hierarchy of command to control the activities and give smooth direction.
G. Management is both a science and an art: Science is a systematized body
of knowledge based on certain principles that are generally applied. Scientific
knowledge is observed through the process of critical and continuous
observation and intelligent speculation. Accordingly, management as a
science is based on principles instead of a traditional way of doing things in
trial and error method.

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Evolution of Management Thought
Source: https://www.wisdomjobs.com/e-university/principles-of-
management-and-organisational-behaviour-tutorial-366
Explain the Evolution of Management Thought
Evolution of management thought may be divided into four stages
1. Pre-scientific management period.
2. Classical Theory
a. Scientific Management of Taylor
b. Administrative Management of Fayol
c. Bureaucratic Model of Max Weber
3. Neo-classical Theory or Behaviour Approach
4. Modern Theory or Systems Approach
Pre-scientific Management Period
.
Employees went to their work instead of receiving it, and so, the factory system, as it is
known today, become a dominant feature of the economy. Under this system, land and
buildings, hired labor, and capital are made available to the entrepreneur, who strives to
combine these factors in the efficient achievement of a particular goal. All these
changes, in turn, brought about changes in the field of management. Traditional,
conventional or customary ideas of management were slowly given up and management
came to be based on scientific principles. In the words of L. F. Urwick-"Modern
management has thrown open a new branch of human knowledge, a fresh universe of
discourse". During the period following the industrial revolution, certain pioneers tried to
challenge the traditional character of management by introducing new ideas and
character of management by introducing new ideas and approaches.
Classical Theory
During this period, stalwarts like F.W. Taylor, H.L. Gantt, Emerson, Frank and Lillian
Gilberth etc., laid the foundation of management, which in due course, came to be
known as scientific management. This epoch in the history of management will be
remembered as an era in which traditional ways of managing were challenged, past

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management experience was scientifically systematized, and principles of
management were distilled and propagated.
F.W. Taylor and Henry Fayol are generally regarded as the founders of scientific
management and administrative management and both provided the bases for
science and art of management.
Features of Management in the Classical Period:
1. It was closely associated with the industrial revolution and the rise of large-
scale enterprise.
2. Classical organization and management theory is based on contributions from
a number of sources. They are scientific management, Administrative
management theory, bureaucratic model, and micro-economics and public
administration.
3. Management thought focused on job content division of labor, standardization,
simplification and specialization and scientific approach towards organization.
Neoclassical Theory: Neo-classical Theory is built on the base of classical theory. It
modified, improved and extended the classical theory. Classical theory concentrated
on job content and management of physical resources whereas, neoclassical theory
gave greater emphasis to individual and group relationship in the workplace. The
neo-classical theory pointed out the role of psychology and sociology in the
understanding of individual and group Behaviour in an organization.
Hawthorne Experiment: In 1927, a group of researchers led by Elton Mayo and Fritz
Roethlisberger of the Harvard Business School were invited to join in the studies at the
Hawthorne Works of Western Electric Company, Chicago. The experiment lasted up to
1932. The Hawthorne Experiments brought out that the productivity of the employees is
not the function of only physical conditions of work and money wages paid to them.
Productivity of employees depends heavily upon the satisfaction of the employees in
their work situation. Mayo's idea was that logical factors were far less important than
emotional factors in determining productivity efficiency.
Modern Theory (System Approach): The systems approach to management
indicates the fourth major theory of management thought called modern theory.
Modern theory considers an organization as an adaptive system which has to adjust
to changes in its environment. An organization is now defined as a structured
process in which individuals interact for attaining objectives.
Meaning of "System": The word system is derived from the Greek word meaning to
bring together or to combine. A system is a set of interconnected and inter-related
elements or component parts to achieve certain goals. A system has three significant
parts:
1. Every system is goal-oriented and it must have a purpose or objective to be
attained.
2. In designing the system we must establish the necessary arrangement of
components.
3. Inputs of information, material and energy are allocated for processing as per
plan so that the outputs can achieve the objective of the system.

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Systems Approach Applied to an Organization: When systems approach is
applied to organization, we have the following features of an organization as an open
adaptive system:-
1. It is a sub-system of its broader environment.
2. It is a goal-oriented – people with a purpose.
3. It is a technical subsystem – using knowledge, techniques, equipment and
facilities.
4. It is a structural subsystem – people working together on interrelated activities.
5. It is a psychosocial system – people in social relationships.
6. It is co-ordinate by a managerial sub system, creating, planning, organizing,
motivating, communicating and controlling the overall efforts directed towards
set goals.
Characteristics of Modern Management Thought:
1. The Systems Approach: An organization as a system has five basic parts -
1. Input
2. Process
3. Output
4. Feedback and
5. Environment.
Contingency Theory: Systems approach emphasizes that all sub- systems of an
organization along with the super system of environment are interconnected and
interrelated. Contingency approach analysis and understands these inter relationship
so that managerial actions can be adjusted to demands of specific situations or
circumstances.
Lesson 2: Functions, Roles and Skills of a Manager
Management is a vital aspect of the economic life of man, which is an organized group
activity. A central directing and controlling agency are indispensable for a business
concern. The productive resources – material, labor, capital etc. are entrusted to the
organizing skill, administrative ability and enterprising initiative of the management.
What is a Manager? A manager achieves objectives through efficient and effective
use of resources. • Efficient-doing things right • Effective-doing the right thing 3

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Source: https://www.managementstudyhq.com/functions-of-management.html
5 Functions of Management:
1. Planning is future-oriented and determines an organization’s direction. It is a
rational and systematic way of making decisions today that will affect the
future of the company. It is a kind of organized foresight as well as corrective
hindsight. It involves predicting of the future as well as attempting to control
the events. It involves the ability to foresee the effects of current actions in the
long run in the future.
2. Organizing requires a formal structure of authority and the direction and flow
of such authority through which work subdivisions are defined, arranged and
coordinated so that each part relates to the other part in a united and coherent
manner to attain the prescribed objectives. According to Henry Fayol, “To
organize a business is to provide it with everything useful or its functioning i.e.
raw material, tools, capital and personnel’s”.
3. Staffing is the function of hiring and retaining a suitable workforce for the
enterprise both at managerial as well as non-managerial levels. It involves the
process of recruiting, training, developing, compensating and evaluating
employees and maintaining this workforce with proper incentives and
motivations. Since the human element is the most vital factor in the process of
management, it is important to recruit the right personnel.
4. The directing function is concerned with leadership, communication,
motivation, and supervision so that the employees perform their activities in
the most efficient manner possible, in order to achieve the desired goals.
The leadership element involves issuing of instructions and guiding the
subordinates about procedures and methods. communication must be open
both ways so that the information can be passed on to the subordinates and
the feedback received from them. Motivation is very important since highly
motivated people show excellent performance with less direction from
superiors.

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Supervising subordinates would lead to continuous progress reports as well
as assure the superiors that the directions are being properly carried out.
5. Controlling - The function of control consists of those activities that are
undertaken to ensure that the events do not deviate from the pre-arranged
plans. The activities consist of establishing standards for work performance,
measuring performance and comparing it to these set standards and taking
corrective actions as and when needed, to correct any deviations.
Roles of Manager:
Source: https://www.managementstudyhq.com/functions-of-management.html
Interpersonal Category
The managerial roles in this category involve providing information and ideas.
1. Figurehead – As a manager, you have social, ceremonial and legal
responsibilities. You're expected to be a source of inspiration. People look up
to you as a person with authority, and as a figurehead.
2. Leader – This is where you provide leadership for your team, your
department or perhaps your entire organization; and it's where you manage
the performance and responsibilities of everyone in the group.
3. Liaison – Managers must communicate with internal and external contacts.
You need to be able to network effectively on behalf of your organization.
Informational Category
The managerial roles in this category involve processing information.
4. Monitor – In this role, you regularly seek out information related to your
organization and industry, looking for relevant changes in the environment. You
also monitor your team, in terms of both their productivity, and their well-being.
5. Disseminator – This is where you communicate potentially useful information
to your colleagues and your team.
6. Spokesperson – Managers represent and speak for their organization. In this
role, you're responsible for transmitting information about your organization
and its goals to the people outside it.

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Decisional Category
The managerial roles in this category involve using information.
7. Entrepreneur – As a manager, you create and control change within the
organization. This means solving problems, generating new ideas, and
implementing them.
8. Disturbance Handler – When an organization or team hits an unexpected
roadblock, it's the manager who must take charge. You also need to help
mediate disputes within it.
9. Resource Allocator – You'll also need to determine where organizational
resources are best applied. This involves allocating funding, as well as
assigning staff and other organizational resources.
10.Negotiator – You may be needed to take part in, and direct, important
negotiations within your team, department, or organization.
Social psychologist Robert L. Katz in 1974, in his article,” Skills of an Effective
Administrator“ in Harvard Business thought about the relationship of managerial
skills (competences) and hierarchical management levels. The result was the setting
of the three areas of managerial skills and determination, for which level they are
characterized:
Technical skills - competencies important, particularly for lower management.
job-specific knowledge and techniques needed to proficiently perform specific
tasks.
Human skills - competencies needed for all levels of management. the ability
to work well with other people individually and in a group
Conceptual skills - competencies with a substantial importance, particularly for
top management. the ability to think and to conceptualize about abstract and
complex situations

.


What‘s More…



I. FILL IN THE BLANKS

Directions: Fill in the blanks by choosing the CORRECT word/phrase in
the box.



Objectives Modern theory Neo-classical theory workers

Managers works System Combine Act or bringing together

Goals multi-purpose organ


1) Management refers to the ____________________ the work activities to
achieve the organization’s _______________ and ________________.

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2) According to Peter Drucker, management is a ________________ that
manages business and manages managers and manages
_____________ and ______________.
3) _______________________ is built on the base of classical theory.
4) The system approach to management indicates the fourth major theory
of management thought called ________________________.
5) __________ is derived from the Greek word meaning to bring together
or to ___________.
What I Have Learned?
Directions: You have to fill in the graphic organizer chart to generalize the thing you
have learned about the topic Write your answer in a blank sheet of paper.
What I Need to Reflect?
After you have learned the lesson, a few questions to ask yourself:
 Do I have the technical and conceptual skills in doing managing a small
organization or a business?

 Do I have the characteristics and potential to manage a business
or organization?

 What category of the role of manager may I consider myself in managing a
small organization or a business?


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What I Can Do?
Directions: After you have filled in the graphic organizer chart, please work on the
WORK IN PROGRESS
List down the family members and identify each role. Explain their duties and
responsibilities in a blank sheet of paper.
Family Members Role Duties and Responsibilities
Assessment:
Multiple-choice
Directions: Choose the letter corresponding to the correct answer for each of the
questions provided below.
____1. Brought out that the productivity of the employees is not the function of only
physical conditions of work and money wages paid to them.
Productivity of employees depends heavily upon the satisfaction of the
employees in their work situation.
a. Hawthorne Experiment
b. Multilevel and Multidimensional
c. Contingency Theory
d. Classical Theory
____2. Is future-oriented and determines an organization’s direction. It is a rational
and systematic way of making decisions today that will affect the future
of the company.
a. Staffing
b. Planning
c. Organizing
d. Directing

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____3. organization and management theory is based on contributions from a
number of sources. They are scientific management, Administrative
management theory, bureaucratic model, and micro-economics and
public administration.
a. Classical Theory
b. Neoclassical Theory
c. Modern Theory
d. Contingency Theory
____4. Is a vital aspect of the economic life of man, which is an organized group
activity. A central directing and controlling agency are indispensable for
a business concern.
a. Directing
b. Management
c. Organization
d. Organizing
____5. This is where you communicate potentially useful information to your
colleagues and your team.
a. Monitor
b. Disseminator
c. Spokesperson
d. Negotiator
____6. The ability to think and to conceptualize about abstract and complex
situations.
a. Technical Skills
b. Human Skills
c. Conceptual skill
d. Inter-relationship skills
____7. Function is concerned with leadership, communication, motivation, and
supervision so that the employees perform their activities in the most
efficient manner possible, in order to achieve the desired goals.
a. Planning
b. Organizing
c. Staffing
d. Directing
____8. Is a deliberate arrangement of people to accomplish some specific
purpose. Organizations share three common characteristics: (1) Each
has a distinct purpose (2) Each is composed of people (3) Each
develops some deliberate structure so members can do their work.
a. Organizing
b. Organization
c. Management
d. Directing

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____9. As a manager, you create and control change within the organization.
This means solving problems, generating new ideas, and implementing them.
a. Technical Skills
b. Human Skills
c. Conceptual skill
d. None of the above
____10. Management is an essential element of every organized activity
irrespective of the size or the type of the activity.
a. Management is goal oriented
b. Management is universal
c. Management is continuous process
d. Management is multi-disciplinary
Additional Activities
Directions: In the table below, write down at least five (5) skills you have learned
and explain how those skills help you to manage an organization.
1
2
3
4
5

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References:
Book
Darr, Kurt, (2013). Introduction to Management and Leadership Concepts, Principles
and Practices, Jones and Bartlett Learning, https://www.google.com.et.
Mintzberg, Henry (1989) MINTZBERG ON MANAGEMEN, Reprinted by Free Press,
Division of Simon & Schuster, Inc.
Robbins et.al.(2012). Management, Pearson — 11th ed. www.pearsonhighered.com
Website
Cazar, L.B. (2016). Nature and Concept of Management. Retrieved from
https://www.slideshare.net/LalaineCazar/nature-and-concept-of-
management?from_action=save
Kukreja, S. (2018. Management Study HQ. Retrieved from
https://www.managementstudyhq.com/functions-of-management.html
Management Science Theory and Practice. Retrieved from
https://www.wisdomjobs.com/e-university/principles-of-management-and-
organisational-behaviour-tutorial-366/evolution-of-management-thought-
12679.html

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What I know
II. TRUE or FALSE
TRUE 1) Management is goal-oriented when they achieve specific goals.
TRUE 2) Management is a continuous process to operate as long as there is
organized action for the achievement of group goals.
FALSE 3) Management is universal that has an unessential element of every
organized activity.
FALSE 4) Management is situational that there is the best way of doing things and
not to solve particular problems conditions and situations.
TRUE 5) Management is multidisciplinary such as management techniques,
principles, and theories.
MULTIPLE CHOICE
6. A – Management is universal
7. B – Disseminator
8. B – Conceptual skills
9. B – Organization
10.D – None of the above
What’s More
I. FILL IN THE BLANKS
1) Management refers to the act or bringing together the work activities to
achieve the organization’s goals and objectives.
2) According to Peter Drucker, management is a multi-purpose organ that
manages business and manages managers and manages workers and
works.
3) Neo-classical theory is built on the base of classical theory.
4) The system approach to management indicates the fourth major theory
of management thought called modern theory.
5) System is derived from the Greek word meaning to bring together or to
combine.

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What I have learned
Here are the possible answers.

Management refers to the act or bringing together the work activities to achieve the
organization’s goals and objectives.



Management is a vital aspect of the economic life of man, which is organized group
activity.



The characteristics and nature of management are goal oriented, universal, continuous
process, multi-disciplinary, intangible force, situational, and both science and art.


It is essential in any organization and leader-manager.



A manager achieves objectives through efficient and effective use of resources.



Planning, organizing, staffing, directing and controlling are the functions of management.



The three areas of managerial skills are technical skills, human skills and conceptual skills

ASSESSMENT
1. A
2. B
3. A
4. B
5. B
6. C
7. D
8. B
9. D
10. B

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Worksheet:
Rubrics in Checking Essays: Content = 30%, Understanding/Application = 25%,
Original Thinking = 25%, Structure = 10% and Grammar = 10%.
Answer the following questions below in space provided.
1. Is management art or science? Explain.
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____________________
2. Management and organizations are inseparable. Explain why.
___________________________________________________________________
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___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
____________________
3. What do you understand by the term organization? and why people need them?
___________________________________________________________________
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___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
____________________
4. Do you think managers should possess some skills different from other
employees? Why? If yes, list required managerial skills.
___________________________________________________________________
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