Organizations and Management

SHS
Organizations and
Management
Q1 – Week 4
Organization and Management Worksheets

ORGANIZATIONS AND MANAGEMENT
SUPPLEMENTAL WORKSHEET
Lesson 1: Phases of Economic Development

At the end of the lesson, you should be able to differentiate the phases of economic development and its
impact to the business environment.
Remember!
In the last module you have learned about the different forms of business organizations and their roles in
the economy. As a review, fill out the following table correctly. Copy and complete the table on your
answer sheet.
SOLE PROPRIETORSHIP PARTNERSHIP CORPORATION

Manner of creation (How
created?)
No. of organizers or
incorporators (Owners)
Management (who
manages the business?)
Right of succession (Does
the business have the right
of succession?
Extent of liability to third
person (Limited or
unlimited?)
Term of existence
Requirements by SEC
Interested?
The Sounds-like Game: Read the following set of words slower or faster to be able to get the correct
word/words.
Example:
DOT RIB LINE MICE Answer: The Three Blind Mice
1. IN DUST TREE ALL IS SAY SHAWN
2. TRA THIS SHONE AL
3. DRY HIVE TWO MAT TOO RIT TEA
4. HI MASS CON SUM SHAN

What’s New?
Economic development is a term used to describe the process by which a nation improves the economic,
political and social well-being of its people. It can also be defined as efforts that seek to improve the
economic well-being and quality of life for a community by creating and/or retaining jobs and supporting or
growing incomes and the tax base.
Another definition of economic development would be the development of economic wealth of countries,
regions or communities for the well-being of their inhabitants. It may also refer to the progress of the
economy or the quantitative measure for this (Web Finance, Inc. 2016).
While there are several definitions for economic development, there is no clear definition as to what the
phases of economic development are. However, the following concepts or theories of economic
development have been proposed.
Rostow’s Model of Economic Development

Rostow's stages of economic growth model is one of the major historical models of economic growth.
It was published by American economist Walt Whitman Rostow in 1960. The model postulates that
economic growth occurs in five basic stages, of varying length:
1. The traditional society

2. The preconditions for take-off
3. The take-off
4. The drive to maturity
5. The age of high mass-consumption
The following figures both describe Rostow’s stages of e conomic growth or development.

The Phases of Economic Development
Another theory on the phases of economic development were mentioned in the paper authored by Aoki
Masahiko published on December 2011 entitled “The Five-Phases of Economic Development and
Institutional Evolution in China and Japan” (http://hdl.handle.net/11540/3933).
The phases of economic development are the following:
1. Malthusian
 proposed by Thomas Robert Malthus (1766-1834)
 a theory about economic growth which depends on the rate of the population of a certain
area
 it proposes that economic growth is inversely proportional to the population. The smaller
the population, the higher the economic growth and vice versa
2. Government- LED (Local Economic Development)

 an approach towards economic development which encourages and allows local people
to work together to achieve sustainable economic growth and development
 support the formation between local and national institutions towards strategic
implementations
3. A la Kuznets (Government vs. Environment)

 proposed by Simon Kuznets
 the existence of a pattern or behavior between economic growth and environmental
degradation, consistent with the environmental Kuznets curve (EKC) hypothesis.
 the Kuznets curve hypothesis implies that as a nation undergoes industrialization – and
especially the mechanization of agriculture – the center of the nation’s economy will shift
to the cities.
4. Human Capital Based

 is a measure of the economic value of an employee’s skill set.
 refers to the knowledge, skill set and motivation that people have, which provide
economic value
 it could be invested in through education, training and enhanced benefits that lead to an
improvement in the level and quality of production.
5. Post Demographic Transition

 proposed in1929 by Warren Thompson
 Is a transition from high birth and death rate to lower birth and death rate as the country
develops from pre-industrial to industrialized economic system
 fertility rate decreases when child mortality is low, and is weakly dependent in GDP
Impact of the Phases of Economic Development in the Business

Environment
Rostow’s model presents the different stages that an economy go through in its pursuit of economic
development starting from the Traditional Society with very limited technology up to the Age of High Mass
Consumption which is centered on the durable goods and is geared towards to the dominance of the
service industry. This model illustrates the different levels of growth as reflected by the economy of every
nation. Every economy will move from one stage to another it is continually improves its production. Thus,
as the economy progresses from one stage to another, the business environment is also constantly
adapting to these changes. Businesses will also be required to keep themselves abreast with the
economic development in order to keep their position and footing in the market.

On the other hand, the second set of theories about the phases of economic development presents the
different types or strategies that an economy may adapt. While Rostow’s stages are step by step phases,
which means that the stages are mutually exclusive, the other theories can occur simultaneously at the
different parts of the nation. A part of the economy may adopt the Malthusian theory while another part
may be Government-LED. The business environment therefore will be influenced by the strategies that a
country employs. The forms of businesses that exists in a country will largely depend on the stage of
development it is in as well as the theories that the economy follow.
Practice Makes Perfect
Note: Please answer all the activities on a separate answer sheet.
I. For every stage in Rostow’s Model of Economic Growth, write 3 key concepts that can be
best associated with each of the 5 stages. You can use words or phrases to describe each
stage. Use the format below as a guide
Stage 1: ______________________
a. _______________________
b. _______________________
c. _______________________
II. For the second set of theories discussed, write one positive effect and one negative effect of
each theory to the economy. Follow the format below:
1. Malthusian Theory
Positive effect to the economy: ___________________________________________

Negative effect to the economy: __________________________________________
Can You Sum It Up?
In at least 5 sentences, summarized what you have learned from today’s lesson.
___________________________________________________________________________________
___________________________________________________________________________________
___________________________________________________________________________________
___________________________________________________________________________________
___________________________________________________________________________________.

Live It Out!
Journal No. 10: Write your answers on a ½ sheet of paper.
If you were to assess the economy of the Philippines,

a. in which stage of Rostow’s Model of Economic Growth do we belong? Defend your answer.
b. which theory (Malthusian, Government-LED, A la Kuznets, Human-based Capital, or Post-
demographic Transition) applies in the Philippine context? Explain.
c. which theory (Malthusian, Government-LED, A la Kuznets, Human-based Capital, or Post-
demographic Transition) would you recommend? Justify your answer.
Learning Check!
For each of the items below, provide what is asked. Write your answers on a ½ sheet of paper.
Differentiate the different stages and phases of economic development by identifying the correct
stage/theory described by the statements below.
1. It describes the relationship between economic growth and population growth.

2. It proposes that while the economy starts to develop, the natural resources will start to deteriorate
as a result of industrialization.
3. The society is characterized by an economic structure dominated by agriculture.
4. It presupposes that in order for the economy to develop, there should be higher investment in the
labor market and human resources.
5. In this phase, the masses can now afford goods beyond food, shelter, and clothing and leading
sectors starts to shift to durable goods.
6. It is characterized by increasing need for innovation and technology is already diffused and
integrated into all areas of manufacturing sector.
7. It occurs when manufacturing sector starts to emerge and there is growing commercialization of
the agricultural sector.
8. It describes the process of change in the country’s population over time as the economy starts to
develop and progress.
9. This approach encourages collaboration and working together by the different sectors of the
economy especially of the local sectors and the government.
10. It is characterized by high migration from the provinces to the cities as a result of economic
improvement.
***END OF SUPPLEMENTAL WORKSHEET***

Organizations and Management

Uploaded by

Copyright:

Available Formats

Organizations and Management

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Organizations and Management

Uploaded by

Copyright:

Available Formats

SHS

Organization and Management Worksheets

Lesson 1: Phases of Economic Development

SOLE PROPRIETORSHIP PARTNERSHIP CORPORATION

DOT RIB LINE MICE Answer: The Three Blind Mice

1. IN DUST TREE ALL IS SAY SHAWN

2. TRA THIS SHONE AL

3. DRY HIVE TWO MAT TOO RIT TEA

4. HI MASS CON SUM SHAN

Organization and Management Worksheets

Rostow’s Model of Economic Development

1. The traditional society

Organization and Management Worksheets

The phases of economic development are the following:

2. Government- LED (Local Economic Development)

3. A la Kuznets (Government vs. Environment)

4. Human Capital Based

5. Post Demographic Transition

Impact of the Phases of Economic Development in the Business

Organization and Management Worksheets

Practice Makes Perfect

Note: Please answer all the activities on a separate answer sheet.

Positive effect to the economy: ___________________________________________

Can You Sum It Up?

Organization and Management Worksheets

Journal No. 10: Write your answers on a ½ sheet of paper.

If you were to assess the economy of the Philippines,

1. It describes the relationship between economic growth and population growth.

***END OF SUPPLEMENTAL WORKSHEET***

Organization and Management Worksheets

You might also like

END OF SUPPLEMENTAL WORKSHEET