QRT2 Module in Organization Management

Senior High School
Organization and
Management
Quarter 2–Module 7:
The Significance of Organization Structures for
Effective Business Management
Writer:
GIENAH LYN M. MALLARI
TII – Justino Sevilla High School
Editors:
JANE P. VALENCIA, EdD – Math/ABM Supervisor
CHAIRMAN
JONER G. MAGLALANG – MT- I
1
What I Need to Know
This module will assist you to learn about the significance of organization
structures for business management. Before a plan can be implemented, managers
must organize the assets of the business to execute the plan efficiently and effectively.
Understanding specialization and the division of work is key to this effort, since many of
the “assets” are employees. Recall what Henri Fayol wrote about the division of work:
“The specialization of the workforce according to the skills of a person, creating specific
personal and professional development within the labour force and therefore increasing
productivity, leads to specialization which increases the efficiency of labour. By separating
a small part of work, the workers speed and accuracy in its performance increases. This
principle is applicable to both technical as well as managerial work.”
Where workers are specialists, managers can group those employees into departments
so their work is appropriately directed and coordinated. In short, work should be divided,
and the right people should be given the right jobs to reduce redundancy and inefficiency.
At the end of this module, you are expected to:
1. Analyze the nature of organizations and types of organization structures.

2. Apply organization theories for effective business management.
2
What I Know
Exploring your Prior Knowledge about organization theories towards effective

management
Read carefully and answer the following questions. Choose the letter of the
correct answer. Write your answers in your journal.
1. It is usually represented with organizational charts and with position descriptions.

A. Formal Organization
B. Informal Organization
C. Organization Design
D. Structure
2. It pertains to the usual or old-fashioned ways of structure.

A. Formal
B. Informal
C. Modern
D. Traditional
3. The following are an example of Traditional Organization except .

A. Divisional
B. Function
C. Simple
D. Matrix – Project Design
4. The following are an example of Modern Organization except:

A. Boundary – Less Design
B. Divisional
C. Matrix – Project Design
D. Team Design
5. It refers to the contemporary design theories.

A. Formal
B. Informal
C. Modern
D. Traditional
6. Organizational design is .
A. A process that determines the salary structure of the company
B. A process that forecasts the revenues and profits of the company
3
C. A process to help you decide whether or not you will organize your business
as a single proprietorship, partnership, or corporation
D. The process of aligning an organization’s structure with its vision and mission
7. The following are the advantages of a simple organizational design except _.

A. Clear accountability
B. Fast Decision making and result
C. Flexible
D. Cost-saving advantage
8. Project Design is .
A. Organizational design where employees continuously work on different
company
B. Organizational design where employees continuously work on a project.
C. Organizational design where employees continuously work on a same
division
D. Organizational design where employees continuously work as a team
9. Teamwork and cooperation are two essential factors for an organization’s

success.
A. True
B. False
C. True, on the part of cooperation but not in teamwork
D. True, on the part of teamwork but not in cooperation
10. It is the organizational design used when management facilitated workers with
similar tasks.
A. Divisional
B. Functional
C. Project Design
D. Team Design
4
Lesson
Organization Theories for Effective Business
1 Management
As you proceed to this module, you will understand the different types of
organizational set-up or structure. These set – up or structure are designed to accomplish
different goals. The structure of an organization is a crucial part in the progress of an
organization since it can help or hinder the organization in the movement toward
accomplishing these goals. Organizations, large and small in scale, can achieve higher
sales and other profits by properly matching their needs with the structure they
use to operate.
What’s In Notes to the Teacher

The teacher must take into considerations the essential
skills needed in the development of this competency
including the background knowledge which may reinforce
learning. This module will help the learners link the gap of
Before we leave the topic learning to achieve mastery of the lesson
organizational structure, one must
bear in mind that there are two broader organizational structure identified as: the formal
and the informal organization.
Formal Organization usually represented with organized charts and with position
descriptions. There is a clear reporting relationship that the manager is aware of. On the
other hand, the informal organization is a set of evolving relationships and patterns of
human interaction within an organization that actually do exist but are not officially
prescribed. Alongside with this informal organization are the informal leaders who
sometimes exert influence to organizational behaviour.
Now that you know the different types of organizational structure, advantages
and disadvantages. Let’s take a look at some organizational design principles.
Firstly, Let us be realistic to recognize that there is never a single best structure for
any company of function. Any structure is no silver bullet. There will never be a perfect
structure. All structures carry significant strengths and weaknesses, advantages and
disadvantages, and all companies have different capabilities and strategies positions.
5
What’s New
Organizational Design is the process of aligning an organization’s structure

based on its vision and mission. It is a careful study at the complex relationship between
tasks, workflows, responsibilities and authorities, and making sure these all support the
objectives of the organizational strategy and mandate.
Good organizational design helps communications smoothly transition from one
department to another. It creates an environment where people can work effectively and
efficiently. It fosters productivity leading to innovation. It is tailored to deliver the
company’s competitive strategy. The design can be evaluated by specific criteria, such
as technology, corporate culture, etc.
Activity
1) Choose one popular Fast food or restaurant in your community. Name some
teams that maybe organized within the company to help achieved its goal.
What is It
There are two main classifications of theories regarding organizational design
according to Robbins and Coulter (2009): traditional and modern. Traditional pertains to
the usual or old-fashioned ways, while modern refers to contemporary or new design
theories.
Traditional organizational design theories include:
Simple
This organizational design has few departments, wide spans of control, or a big number
of subordinates directly reporting to a manager; has a centralized authority figure and
has very little formalization of
work; usually used by
companies that start out as
entrepreneurial ventures.
This diagram of a simple
structure depicts a small start-
up business, in which the simple
structure is very
common, with few employees
Source: https://study.com/academy/lesson/types-of-organizational-structures-functional-divisional-matrix-team-network.html and an owner who manages
6
and controls the majority of the business functions. Because there are a limited number
of employees in this landscaping company, it is necessary for each employee to
perform multiple functions in various areas of the organization, creating little, if any,
departmentalization. Policies, procedures and rules are limited in the simple structure due
to the wide span of control and limited work specialization. Of course, once the
landscaping company expands, it will more than likely outgrow its simple design
structure and move into a more complex structure.
Line Organization
simplest form This is the
of organizational
structure commonly adopted by
small companies. It has well-
defined authority levels in the
hierarchical structure. Power flows
from the top down to different
operational levels or workers. The
hierarchical structure clearly defines
authority, responsibility, and
accountability at each level. Due to
Source: https://www.greycampus.com/blog/project-management/common-types-of-organizational-structures-in-project-management
its simplicity, authority and
responsibilities are transparent and easily traceable. Communication is fast and easy
because employees get quick feedback and respond fast. The project manager
performs duties based on position or authority in the hierarchy. Some organizations
don’t have this position, but when they do, they may have little or nothing to do.
Line & Staff
The Line and Staff Organization is a modification of the Line Organization. Here,
functional specialists work with line
managers to guide and advise them.
This structure is more common in
present-day, and most of the larger
enterprises adopt this type of set up.
The staff consists of two categories;
the general and the specialized team.
General Staff
The general staff consists of the
ordinary employees that assist the
Source: https://www.greycampus.com/blog/project-management/common-types- of-organizational-structures-in-project-management top management. These staff aren’t
experts.
Specialized Staff
This team consists of experts that offer services to the organization. Their roles can be
advisory, control (as in quality control), or service (such as maintenance). The Line and
Staff Organization uses the expertise of specialists. So the line managers become
better in several fields.
Functional
This organizational design groups together similar or related specialties. Generally,
functional departmentalization is utilized and put into practice in an entire organization.
7
A functional org structure
starts with positions with the
highest levels of
responsibility at the top and
goes down from there.
Primarily, though, employees
are organized according to
their specific skills and their
Source: https://www.greycampus.com/blog/project-management/common-types-of-organizational-structures-in-project-managementteam-network.html
corresponding function in
the company. Each separate department is managed independently.
Divisional
This organizational design is 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.
This design focuses on
service lines like products,
customers, area, and time.
Since they operate as small
organizations, they're called
“self-contained structures.”
So they work independently

on divisional goals. But all
divisions collectively meet
the organizational policies
and business objectives.
Source: https://www.greycampus.com/blog/project-management/common-types-of-organizational-structures-in-project-managementteam-network.html This type of organization is

suitable for companies that
- Operate in different geographical locations,
- Have chain stores with subsidiaries, and

- Banking and insurance business
Modern organizational design theories include:

Team Design
In team design, the entire organization is made up of work groups or teams. It’ll come
as no surprise that a team-based organizational structure groups employees according to
(what else?) teams––think scrum teams or tiger teams. A team organizational
structure is meant to disrupt the traditional hierarchy, focusing more on problem solving,
cooperation, and giving employees more control.
Matrix – Project Design
Matrix design refers to an organization design where specialists 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 manager – who share authority over them.
8
Project design refers to an organizational design where employees continuously work
on project.
Boundary – less Design
This is another modern organizational design where the design is not defined or limited
by vertical, horizontal and external boundaries. There are no hierarchical levels that
separate employees, no departmentalization, and no boundaries that separate the
organization from customers, suppliers and other stakeholders. Virtual organization
designs are often used in this design: small groups of full-time employees and outside
specialists are temporarily hired to work on projects.
Discussion Activity 1
On your journal, copy the table below and choose the appropriate Strength and
Weakness in each Traditional Organizational structure.
Strengths/Weakness
1) Possible duplication of activities and resources.
2) Staff can make quality decisions, get support from specialists, and enjoy better
coordination.
3) Cost – saving advantages.
4) Managers have little knowledge of other units’ functions.
5) Flexible
6) Clear accountability
7) Increase cost and reduce efficiency
8) A tendency to develop personal image within the group
9) Get training to enhance skills, get an opportunity to work in research &
development.
10)Fast decision – making and results
11)Risk that overdependence with over – dependence on a single person.
12)Focused on results
13) Managers are responsible for what happens to their products and services.
14) No longer appropriate as the company grows
15) Management is facilitated because workers with similar tasks are grouped
together
Simple Organizational Design

Strength Weaknesses
1. 1.
2. 2.
3.
Line & Staff Organizational Design

Strength Weaknesses
1. 1.
2.
9
Functional Organizational Design
Strength Weaknesses
1. 1.
2. 2.
Divisional Organizational Design

Strength Weaknesses
1. 1. _
2. 2.
3.
On your journal, copy the table below and choose the appropriate advantage and
disadvantage in each modern organization structure.
Advantages/Disadvantages
1) Empowerment of team members
2) Highly flexible and responsive
3) Reduced barriers among functional areas
4) Great pressure on teams to perform
5) Flexible designs and fast decision – making
6) Specialists are involved in the project
7) Clear chain of command
8) Complexity of assigning people to projects and tasks
9) Task and personality conflicts
10) Lack of control and problems in communication
Advantage/s Disadvantage
Team Design Team Design
1. 1.
2. 2.
Matrix – Project Design Matrix – Project Design
1. 1.
2. 2.
Team Design Team Design
1. 1.
10
What’s More
Independent Activity 1
Copy this Venn Diagram on your journal and write keywords or phrases to describe and contrast
the similarities and/or differences that you observed on the traditional and modern
organizational design.
VENN DIAGRAM
Traditional Modern
organizatio Similaritie organizati
nal design onal
design
Arrange the letters to identify the correct word that is being described. Write your
answer on your journal.
1. T S P R U S C L T E U I R M E →
Usually used by small businesses that start out as entrepreneurial
ventures.
2. O R G F A N O I Z R A M T I A O L N →
There is a clear reporting relationship that the manager is aware of.
3. D E O Z S A R I T G G I N A O N N A I L →
The process of aligning an organization’s structure based on its vision and
mission.
4. Z A E O R L G T I A I O N I N N →
Power flows from the top down to different operational levels or workers.
5. E S R T G A A E F L N →
These staff aren’t experts.
6. I Z S E P D E S T C A I F A L F →
Their roles can be advisory, control (as in quality control), or service (such
as maintenance).
7. T N I F L O C N U A →
Employees are organized according to their specific skills and their
corresponding function in the company.
11
8. A I S L D I I O V N →
Suitable for companies that operate in different geographical locations.
9. D E T S A I E N M G →
It is meant to disrupt the traditional hierarchy, focusing more on problem
solving, cooperation, and giving employees more control.
10. D E P E S C I R G T N O J →
It refers to an organizational design where employees continuously work
on project.
Case Study
Engineer John Cruz is a supervisor of a group of light project engineers. His unit is
burdened with heavy workload because of increase in orders of their company’s computer
components. Following up customer’s orders and the availability of these said products
by himself is too much work from him. As a consultant for the company, what would you
advice Engineer Cruz? Explain your answer.
What I Have Learned
Questions:
1. What is the importance of having a right organizational design in a company?

2. In your own understanding, Construct/make each one example of following
organizational design:
Simple
Functional
Divisional
Team design
Matrix – project design
Boundary – less design
12
What I Can Do
At the end of the lesson, write two or three sentences to complete the following:
I realized that:
I resolved that:
Assessment
1. All of the following are traits of the simple organizational design structure, EXCEPT:
A. Centralized authority C. Minimal work specialization
B. High departmentalization D. High departmentalization
2. Why are functional structures used by an organization?
A. To have specialized work units that maximize functionality.
B. To have an incoherent structure where everyone does what they do best.
C. To focus on brainstorming and creating new ideas.
D. To have mixed work groups that focus on innovative concepts.
3. Subordinates and managers with very high capabilities are required for
organizations with spans of control to be successful.
A. flat; wide C. flat; narrow
B. tall; wide D. tall; narrow
4. The is the unofficial but influential means of communication, decision making,
and control that are part of the habitual way things get done in an organization.
13
A. Informal Organization C. Traditional Organization
B. Formal Organization D. Modern Organization
5. H and H Industries is a large industrial firm that manufactures and sells a wide range of
electrical goods; ranging from turbines in power stations to electric engines for trains to
household toasters and coffee pots. Based on this, which of the following would be the
most appropriate structure for H and H Industries to adopt?
A. Divisional C. Simple
B. Matrix – project D. Team Design
6. Functional structures help to create .
Centralized authority
A. Teamwork C. Project work groups
B. Specialization D. Multi skilled employees
7. What is not a purpose of an organizational structure?
A. To coordinate people and resource
B. To organize lines of communication
C. To formalize authority
D. To limit workers' rights
8 Which of the following teams is formed for the propose of planning, implementing
and/or evaluating projects?
A. Communication teams C. Task teams
B. Project teams D. Quality teams
9 A cross functional organizational structure in which individuals performing one
function, such as accounting, are to the senior executive in finance and also to
another senior executive in a geographical, product, or customer department is
called:
A. Divisional C. Line & Staff
B. Line D. Matrix
10 Which of the following is an advantage of a matrix organization?
A. Clear organizational structure
B. Coordination of complex and interdependent activities
C. Elimination of power struggles.
D. All of the above
Additional Activities
Illustrate your own organizational chart for your ideal business. Explain why you
used that kind of organizational structure.
14
Senior High School
Organization and
Management
Quarter 2–Module 8:
The Significance of Organization Structures for
Effective Business Management
Writer:
GIENAH LYN M. MALLARI
TII – Justino Sevilla High School
Editors:
CHAIRMAN
15
What I Need to Know
This module will assist you to learn about the significance of organization
structures for business management. Before a plan can be implemented, managers
must organize the assets of the business to execute the plan efficiently and effectively.
Understanding specialization and the division of work is key to this effort, since many of
the “assets” are employees. Recall what Henri Fayol wrote about the division of work:
“The specialization of the workforce according to the skills of a person, creating specific
personal and professional development within the labour force and therefore increasing
productivity, leads to specialization which increases the efficiency of labour. By separating
a small part of work, the workers speed and accuracy in its performance increases. This
principle is applicable to both technical as well as managerial work.”
Where workers are specialists, managers can group those employees into departments
so their work is appropriately directed and coordinated. In short, work should be divided,
and the right people should be given the right jobs to reduce redundancy and inefficiency.
At the end of this module, you are expected to:
1. Analyze the nature of organizations and types of organization structures.

2. Apply organization theories for effective business management.
16
What I Know
Exploring your Prior Knowledge about organization structure and nature towards
effective management
1. It is an arrangement of people in an organization.

A. Degree of Centralization
B. Organizational structure
C. Span of Control
D. Unity of command
2. The organizing function of managers involves:

A. Determining strategic priorities for the organization as a whole
B. Not allocating resources needed to perform assigned activities
C. Assigning activities identified in the planning process to some person, team or
department
D. Divide the resources based on the priority of the whole organization
3. At the company where Kath works, everyone works in units with people who
perform similar jobs. All of Kath’s marketing colleagues work in one department.
All the accounting and finance people work in one department, as do all the
people involved in production of product. What type of organization is this?
A. Divisional Organization
B. Functional Organization
C. Line Type Organization
D. Matrix Organization
4. In a functional structure, communication generally occurs within each functional

department and is transmitted across departments through:
A. The CEO
B. Department heads
C. Chief Executive Officer
D. Lower Employees
5. It is the type of organization used when a company has purchasing departments

created for each enterprise branch, located in different cities.
C. Matrix Organization
D. Network Organization
17
6. What is not a purpose of an organizational structure?
A. To coordinate people and resources
B. To organize lines of communication
C. To formalize authority
D. To limit workers' rights
7. This organization structure violates the unity of command principle because of

the dual reporting relationships.
A. Functional Organization
B. Line type Organization
8. It is a collection of independent, mostly single function enterprises that

collaborate on a good or service.
9. A good organizational structure is _ for the expansion of business

activities.
A. Recommended
B. Essential
C. Unnecessary
D. Optional
10. One disadvantage of a functional structure is that:

A. They may share too much information
B. Employees will be more flexible
C. The different functional groups may not communicate with one another
D. Employees will be more effective
18
Lesson
Organizational Structure and It’s Nature
1
Once a plan has been created, a manager can begin to organize. Organizing
involves assigning tasks, grouping tasks into departments, delegating authority, and
allocating resources across the organization. During the organizing process, managers
coordinate employees, resources, policies, and procedures to facilitate the goals identified
in the plan. Organizing is highly complex and often involves a systematic
review of human resources, finances, and priorities.
Not es t o t he T eacher
What’s In The teacher must take into considerations the essential
skills needed in the development of this competency
including the background knowledge which may
reinforce learning. This module will help the learners
After planning, organizing follows. The goals and objectives established during
planning will all go to waste without effective organizing, through the development of a
designed structure of roles for effective performance.
In business, one must understand the three different types of organization that
can make significant impacts in the intended business. Learning the different company
structure allows the entrepreneur with advantages and disadvantages that can be
considered as the business grow and develop for sustainability. Organizing is the process
of blending human and material resources through formal structure of tasks and
authority.
Short Case for Discussion
Let us assume now that Mr. Chua’s grocery business has grown by leaps and
bounds. He’s planning to open up a branch in a more strategic place near busy Cubao.
This will be handled by his own whom he has already trained in running his grocery
business.
Mr. Chua has reached the crossroad of his business. Like any entrepreneur who
started small but suddenly saw the growth of his business, he began to wonder how he
should get organized to face the challenges of the future. Shall he remain as a single
proprietor-owner or dilute his ownership by asking some of his trusted relatives and
friends to be part owners and contribute more money for his expansion plan?
To put up a branch, Mr. Chua needs more capital to buy a commercial lot and to
construct a building for his second grocery. He has to improve his credit standing by
buying grocery goods payable in 6o days or more. To get a loan from a bank, his
19
present assets are not enough to serve a guaranty. So, he needs associates in his
expanding business. He consulted a lawyer-friends and he was given three options.
First option is to remain as single proprietor. In this form, Mr. Chua as a single
person holds the entire operation as his personal property, managing it on a day-to-day
basis
Second option: Partnership, since this is a type of business that requires more than one
person in the decision-making process, it’s important that potential business partners
discuss a wide variety of issues up front and develop a legal partnership agreement.
Third option: Corporation, this is especially true if a business owner, like Mr. Chua,
needs more money to fund his business expansion. He may decide to look for investors.
Activity
Question: If you are Mr. Chua, What’s the best approach in organizing u will used and
what are the advantages?
20
What’s New
Organization is a mechanism or structure which helps the activities to be

performed effectively. It is established for the purpose of achieving the business
objectives. It can be compared to a human body. The human body consists of hands,
feet, eyes, ears, nose, fingers, mouth etc. These parts perform their work independently
and at the same time, one part cannot be a substitute to another. The same principles
can be identified in the organisation also. The organization consists of different
departments. Each department performs its work independently and cannot be a
substitute to another.
Activity
1) On your journal construct an organization chart of your school.
2) Get a copy of a business organization’s chart through the internet or other source
and compare it with your school. Copy this Venn Diagram on your journal and write
keywords or phrases to describe and contrast the similarities and/or
differences that you observed.
VENN DIAGRAM
Big business
Organizational organization’s
chart of your organizational
school Similarities
chart
21
What is It
Nature of Organizations
Differentiation in organization involves division of labor and specialization

according to Bateman and Snell (2008). These necessarily result from the
organization’s composition – many different work units with different kinds of tasks,
using different skills and work activities coordinating with one another for a common
end.
Division of labor involves assigning different task to different people in the
organizations different work units. Related to it is specialization, the process in which
different individuals and units perform different task. An organization’s overall work is
complex and would be too much for any individual, therefore, the bigger the
organization, the more work units or work divisions and specializations are to be expected.
Integration is another process in the organization’s internal environment which
involves the collaboration and coordination of its different work units or work divisions.
Coordination refers to the procedures that connect the work activities of the different work
divisions/units of the firm in order to achieve its overall goal. Structural mechanisms
may be devised in order to increase collaboration and coordination. The more highly
differentiated one’s organization is, the greater the need for integration
among the different units.
MAJOR CHARACTERISTICS OF ORGANIZATION
PEOPLE STRUCTURE GOAL
The organizing process should result in a well-defined structure so that

employees will know what to expect from their jobs, to whom they need to report, and
how their work contributes to the company’s effort to meet its goal.
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Types of Organizational Structure
An organization structure is a system made up of tasks to be accomplished, work

movements from one work level to another work levels in the system, reporting
relationships, and communication passage ways that unite the work of different
individual persons and groups. The types of organizational structures include:
1) Vertical Structure – According to Bateman and Snell (2008), a vertical structure

clears issues related to authority rights, responsibilities, and reporting
relationships.
2) Horizontal Structure – It refers to the departmentalization of an organization into
smaller work units as tasks become increasingly varied and numerous.
3) Network Structure – it is a collection of independent, usually single function
organizations/companies that work together in order to produce a product or
service.
Observe the given structure. On your journal, write atleast 5 key words or phrase that
best describes advantages and disadvantages of each organizational structure below.
1. Vertical Structure
Description:
(Advantages/Disadvantages)
1. _
2. _
3. _
4. _
5. _
Source: https://heroictechwriting.com/2014/09/21/vertical-horizontal-and-matrixed-organizations-and-why-you-should-care/
2. Horizontal Structure
Description:
1. _
2. _
3. _
4. _
5. _
Source: https://heroictechwriting.com/2014/09/21/vertical-horizontal-and-matrixed-organizations-and-why-you-should-care/
23
3. Network Structure
Description:
1.
2. _
3. _
4. _
5. _
Source: https://en.ppt-online.org/75156
Most of the time, communication is by electronic, means, the sharing of information is
speedy. This results to their ability to respond at once to their customers’ demands.
Organizational Structures are needed to keep employees needed, to build a learning
organization and to manage global structural problems.
One of the organizational structures is the horizontal. What are the different types of
Horizontal structure?
Arrange the letters to identify the correct type of horizontal structure that is
being described. Write your answers in your journal.
1. E A N D S L M E P I T N R E T → It deals directly with the firm’s primary goods

and services; responsible for manufacturing, selling and providing services
to clients.
2. S M E S N P A T A T R T F F D → It support the activities of the line departments

by doing research, attending to legal matters, performing public relations
duties, etc.
3. A P N A L F P R O T U A C H I N O C → It is where the subdivisions are formed

based on specialized activities such as marketing, production, financial
management and human resource management.
4. D A P P I V R I S O A I O C N H A L → It is where departments are formed based

on management of their products, customers or geographic areas
covered.
5. A P P M A R O A X C T H R I → It is a hybrid form of departmentalization where

managers and staff personnel report to the superiors, the functional
manager and divisional manager.
24
Businesses of all shapes and sizes use organizational structures heavily. They
define a specific hierarchy within an organization.
What’s More
Businesses of all shapes and sizes use organizational structures heavily.
They define a specific hierarchy within an organization. A successful
organizational structure defines each employee's job and how it fits within the
overall system. Put simply, the organizational structure lays out who does what
so the company can meet its objectives.
Complete the crossword puzzle using the different clues given below. Write the
answer on your journal.
1 9
4 10
8
2 3
Across
2 - The course of tasks assigned to, and completed by, a group of workers in order to
increase efficiency.
4 – People, Structure & goal
5 – It violates the unity of command principle because of the dual reporting
relationships, it provides flexibility and malleability.
6 – A system that outlines how certain activities are directed in order to achieve the
goals of an organization
7 – Top to bottom line in an organization
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Down
1 – The process of dividing work into sections and departments.
3 - The process in the organization’s internal environment which involves the
collaboration and coordination.
8 – Groups of people from different functional areas working together to achieve a
common goal
9 – English department setup for university branches located in different provinces or
regions.
10 - The hospitality industry in a given tourism destination.
Summarize how authority operates in the different types of organizational structure.
1. Vertical Structure
2. Horizontal Structure
3. Network Structure
What I Have Learned
Questions:
1. Why is it important to have a structure within organization?

2. Who have greater responsibilities in an organization, the upper department or
lower department? Explain your answer.
What I Can Do
Question: How will you apply the importance of structure in an organization in terms of role,
authority, responsibility and accountability in your situation at home & school?
_
_
_
_
_
26
Read each item carefully. On your journal, write FACT if the statement is true,
otherwise, write FALSE. And if the statement is FALSE, underline and change the word
or phrase that make the sentence incorrect.
1. Positive collaboration between managers often results in fast and cost-
effective decisions.
2. English department for a University is an example of divisional structure
3. A trend in business today is an organizational structure that includes
teams of employees.
4. Matrix organizational forms have decreased in popularity as organizations
have become more complex and more decentralized.
5. Purchasing department of an enterprise is an example of functional
structure
6. The framework of interrelationships among individuals and departments
that describe relationships of reporting and accountability is called
organizing.
7. Shared tasks divisioning is encourage at horizontal structure.
8. Managers not having control over many activities are a drawback of
network structure.
9. A strict hierarchy of authority, rules and regulations are implemented at
vertical structure.
10. Network organizational structure helps visualize both internal and external
relationships between managers and top-level management. They are not
only less hierarchical but are also more decentralized and more flexible than
other structures.
Make an Interview on one of your family members who work in a company.

Illustrate the organizational structure that they have and discuss his/her perspective on
role, authority and responsibilities towards to their superior.
27
Senior High School
Organization and Management

Quarter 2 – Module 9 – Lesson 1:
The Concept and Nature of
Staffing
Writer:
JIEGO A. REYES
T-II Justino Sevilla High School, Arayat
Editors:
CHAIRMAN
LUCIO B. GOMEZ – MT I
28
What I Need to Know
This module was designed and written with you in mind. It is here to help you master
Staffing. The scope of this module permits it to be used in many different learning
situations. The language used recognizes the diverse vocabulary level of students. The
lessons are arranged to follow the standard sequence of the course. But the order in
which you read them can be changed to correspond with the textbook you are now
using.
The module consists of one lesson,

namely:
• Lesson 1 – The Concept and Nature of Staffing
After going through this module, you are expected

to:
1. discuss the nature of staffing;
2. explain the functions and importance of staffing;
3. elucidate the function of human resource inventory; and
4. identify the components and the various steps in staffing.
What I Know
Hi future Human Resource professional, let’s evaluate your comprehension
about the topic of Staffing, one of the most salient HR facets in an organization.
Your prior understanding about the lesson will be quantified by this
pre- evaluation.
DIRECTION: Choose the letter of the best answer. Write the chosen letter on
a separate sheet of paper.
1. It is the process of identifying, attracting, hiring, and retaining people with

the necessary qualifications to fill the responsibilities of current and future
jobs in the organization.
a. Directing
b. Organizing
c. Planning
d. Staffing
2. Its objective is to train and develop the existing personnel for

career advancement. This will meet the requirements of the company in the
future.
a. Building Higher Morale
b. Development of Human Capital
c. Effective Use of Technology
29
d. Motivation of Human Resource
3. It is the human factor that is instrumental in the effective utilization of the latest
technology, capital, and resources that the management can guarantee the right
types of personnel by performing the staffing function.
4. The financial and non-financial incentives which allow organizational workforce

to perform their job responsibilities and tasks properly in achieving
organizational goals.
5. Also known as the skills inventory comprehensively lists down the basic
information on all the employees, like their education, experience, skills, age,
gender, salary-related data, job preference, and special achievements.
a. Human Resource Inventory
b. Human Resource Management
c. Management Staffing
d. Organizational Finances
6. The entity of an organization which main role if to execute appropriate staffing,

recruitment, training, payroll and employee development.
a. Human Resource Inventory
b. Human Resource Management
c. Management Staffing
d. Organizational Finances
7. Recruitment category where the management hires the most qualified applicant
outside the company’s vicinity.
a. External recruitment
b. Internal recruitment
c. Job vacancy
d. Promotion
8. It refers to the reassignment of a higher level job to an internal employee with

delegation of responsibilities and authority required to perform that higher job and
normally with higher pay.
c. Job vacancy
d. Promotion
9. Recruitment type where an employee within the organization fills the job
vacancy declared by the human resource department.
c. Job vacancy
d. Promotion
30
10.The two main components of staffing are and .
a. external and internal staffing
b. long-term and short-term staffing
c. recruitment and selection
d. strategies and tactics
11. Human resource inventory aids human resource personnel to make better
decisions and in several areas of the organizations. The following are the main
functions of human resource inventory EXCEPT:
a. Allocation of the right employee to the right job
b. Ensuring organizational success by efficient staffing
c. Strategizing a workforce plan for the future needs of the business
d. Technology inconsistencies of an organization in hiring people
12. The following are the nature or characteristics of staffing process essential for
the growth of an organization EXPECT:
a. Adapt incompetent hiring strategies from a competitor
b. Concerned with the optimum utilization of human resource
c. Dynamic and never-ending process
d. Staffing is a management function
13. Proper planning measures that the organization acquires and utilizes the
manpower effectively to achieve organizational objectives. It focuses on
the minimizing the overall cost of production.
a. Hiring strategies
b. Management goals
c. Optimum utilization of human resource
d. Production cost
14.The following are the functions of staffing EXCEPT:

a. Continuity of organizational growth through development
b. Ensure better utilization of human resources
c. Job satisfaction of increase of employees’ morale
d. Promotes minimum employee productivity
15. The process which includes analyzing the requirements of a job, attracting
employees to that job, screening and selecting applicants, hiring, and
integrating the new employee to the organization
a. Recruitment
b. Satisfaction
c. Selection
d. Training
31
Lesson
The Concept and Nature of
1 Staffing
This lesson gives you a better understanding of the meaning and nature of staffing,
the purpose of staffing to organizations, functions and importance of staffing within
company setting. It also discusses the idea about human resource inventory and the
two components of staffing as well as the steps of the staffing process.
What’s In
To associate the previous topic with the present lesson, the activity presented
below will provide you a brief review which will help you realize their linkage.
DIRECTION: The following are some of the organizational tasks under the nature of
organizing within the company. Provide the job description and job specification of
personnel related to the given organizational task.
Nature of Organizing Job Description Job Specification

Assigning tasks
Grouping tasks into

departments
32
Delegating authority
Allocating resources
across the organization
Notes to the Teacher

This module was designed for the students to fully acquire
the expected learning competencies. It includes series of activities
which are suggested to be accomplished for better understanding
and mastery of the lesson. The teacher should give proper
assistance when necessary.
33
What’s New
Familiarizing with the terms related to the lesson is evidently useful. The
challenge for you is to discover new vocabularies relevant to staffing. Answer the
activity and be amazed how proficient you are in the terms associated in the lesson.
DIRECTION: Using the clues, unscramble each jumbled letters to form words.
1. Process of recruiting people.
FFGIASTN
2. Finding the most competent applicant.
RMTECINTURE
3. Choosing the suitable personnel based on qualifications.
NETIESCOL
4. Someone applying for the job.
PTAPLCINA
5. Deals with staffing and training of employees.
UNHMA ROEUCSRE
6. Entity which has not been filled.
BJO YVCANCA
7. Individuals engaged in a job.
FOWRKCEOR
8. Accomplishing a task in an organization.
FERCEMAOPRN
9. Attaining utmost productivity.
TEFCIFIEN
10. Body of individuals sharing the same purpose.
TIOORINAGZNA
34
What is It
We are done assessing your prior knowledge about the lesson. Allow me to formally
start learning this important topic.
The lesson about staffing will commence here. Let’s find out more about the topic.
Staffing
Staffing is a critical organizational function that consists of the process of
acquiring, deploying, and retaining a workforce of sufficient quantity and quality to
create positive impacts on the effectiveness of the organization. It is one of the significant
functions of management.
Nature of Staffing
• It is a universal function. It is the responsibility of every manager.

• It is a continuous function performed by every manager to ensure the
successful functioning of his department and to develop his successors.
Since staffing is a continuous function, it will be effective in realizing its goals.
• It is a dynamic and never-ending process. With changes in the size and
environment of the organization, changes take place in personnel.
• Human resources expect and deserve dignity. So the success of the staffing
function lies in involving every individual in the organization in the task of
achieving organizational goals.
• It is a difficult function with problems of social, philosophical, and
psychological nature.
• Staffing is a management function.
• It is an essential part of the management process.
• Staffing is the persistent function of management.
• Staffing is concerned with the optimum utilization of human resources.
Functions of Staffing
• The first and foremost function of staffing is to acquire both qualified and
competent personnel for various job positions in the organization.
• In staffing, the right applicant is recruited for the right jobs; therefore it leads to
maximum productivity and higher performance.
• It helps in promoting the optimum utilization of human resources through
various aspects.
• Job satisfaction and morale of the workers increases through the staffing of the
right person.
• Staffing helps guarantee better utilization of human resources.
• It ensures the continuity and growth of the organization, through development
managers.
35
Importance of Planning
• Efficient Performance of Other Functions. For the efficient performance of

other functions of management, staffing is its key. Since, if an organization
does not have competent personnel, then it cannot perform the functions of
management like planning, organizing, and control functions properly.
• Effective Use of Technology and Other Resources. What is staffing and
technology’s connection? Well, it is the human factor that is instrumental in the
effective utilization of the latest technology, capital, material, etc. the management
can ensure the right kinds of personnel by performing the staffing function.
• Optimum Utilization of Human Resources. The wage bill of big concerns is quite
high. Also, a huge amount is spent on recruitment, selection, training, and
development of employees. To get the optimum output, the staffing function
should be performed efficiently.
• Development of Human Capital. Another function of staffing is concerned with
human capital requirements. Since the management is required to determine in
advance the manpower requirements. Therefore, it has also to train and develop
the existing personnel for career advancement. This will meet the requirements
of the company in the future.
• The Motivation of Human Resources. In an organization, the behavior of
individuals is influenced by various factors that are involved such as education
level, needs, socio-cultural factors, etc. Therefore, the human aspects of the
organization have become very important and so that the workers can also be
motivated by financial and non-financial incentives to perform their functions
properly in achieving the objectives.
• Building Higher Morale. The right type of climate should be created for the
workers to contribute to the achievement of the organizational objectives.
Therefore, by performing the staffing function effectively and efficiently, the
management can describe the significance and importance which it attaches to
the personnel working in the enterprise.
The Human Resources Inventory

Human Resource Inventory, also known as the skills inventory comprehensively
lists down the basic information on all the employees, like their education, experience,
skills, age, gender, salary-related data, job preference, and special achievements. It is
a vital tool used in HR planning and policymaking.
The information contained in the human resource inventory should be such
that it is not only relevant to the current job position that an employee holds, but can
also be used by recruiters to consider the individual for other job openings that might
come up in the future. Thus, the basic premise of maintaining a current skills
inventory is to identify if there are gaps between the current level of skills and relevant
knowledge possessed by the employees and the Knowledge, skills, and abilities (KSAs)
needed to meet future business goals.
This aids the HR managers to make better decisions in several areas, including
but not limited to:
1. Hiring qualified staff for meeting current as well as future needs of various business
departments
2. Allocation of the right employee to the right job
3. Ensuring organizational success by efficient staffing
36
4. Analyzing current deficits and taking up the right training programs to bridge the
skill gaps
5. Strategizing a workforce plan for the future needs of the business.
Having updated skills inventory benefits HR as they can efficiently evaluate and
compare information on several employees within the organization. This can then be
used to decide upon items like promotions, pieces of training, raises, and future
recruitment needs of the organization. However, it is of utmost importance that the HR
inventory is updated frequently to ensure it is relevant and useful. Gathering accurate
information on each employee in the company is often a time-consuming and
cumbersome task, which is very challenging if maintained on paper. As the human
resource inventory is also known as the ‘snapshot’ of an organization, a static
inventory is of no value.
Two Components of Staffing
Staffing has two main components: recruitment and selection. The process of
finding and hiring the best-qualified candidate (from within or outside of an
organization) for a job opening, in a timely and cost-effective manner is called
recruitment. The recruitment process includes analyzing the requirements of a job,
attracting employees to that job, screening and selecting applicants, hiring, and
integrating the new employee to the organization while the selection is the process of
picking or choosing the right candidate, who is most suitable for a vacant job position
in an organization. In other words, selection can also be explained as the process of
interviewing the candidates and evaluating their qualities, which are required for a
specific job and then choosing a suitable candidate for the position. The selection of the
right applicant for a vacant position will be an asset to the organization, which will
be helping the organization in reaching its objectives.
Below are the steps in the staffing process:
Step 1: Identifying job position vacancies;

Step 2: Checking the internal environment of the organization for human resources;
Step 3: External recruiting;
Step 4: Selecting those with essential qualifications for the job opening;
Step 5: Placing the selected applicant;
Step 6: Promoting;
Step 7: Evaluating performance;
Step 8: Planning of employee’s career;
Step 9: Training of human resources; and
Step 10: Compensating human resources.
What’s More
Have you realized how crucial the lesson about staffing is? Indeed, the
lesson provides you understanding relative to human resources and people
management.
Let’s gauge your learning regarding staffing. Answer the following
activities.
37
Activity 1
1. Define staffing.
2. Give at least four (4) activities or processes involved in staffing.

a.
b.
c.
d.
Activity 2
Expound the two main components of staffing – recruitment and selection, in a

matrix. Come up with at least 2 themes (as points of discussion) and comprehensively
discuss their similarities/differences.
Theme 1:
Recruitment Selection
1. 1.
2. 2.
3. 3.
Theme 2:
Recruitment Selection
1. 1.
2. 2.
3. 3.
2. Assume that you are the Human Resource Manager in your company, fill up a
human resource inventory. You may ask a friend or relative who is working in any
organization. Use the sample format below.
38
Human Resource Inventory
Name of Employee: Date Hired:
Position: Department:
Age and Gender: Salary:
Educational Attainment:
Job Experiences: (cite experiences form most recent)

Job Title: Company: Exclusive Years:
Special Achievement/s:
Skills:
Activity 3
1. Give your own example of an external technology change that may affect
staffing.
2. Interview two department chairpersons in your school regarding their

information gathering methods for identifying present and future needs for
human resources. List down their answers and give your comments.
Method Comment/s
1. 1.
2. 2.
3. 3.
39
What I Have Learned
Supposing now that you learned about the concept and nature of staffing, I am
certain that you discovered new significant management wisdom. Let’s measure how
well verse you are with the lesson by answering the activity.
DIRECTION: Read the case study vigilantly; answer the following questions after
analyzing the case.
Case Study
Deca MaGarne Da Construction Inc. is the leading wholesale distributor of

construction supplies in the Philippines, and one of the country’s largest distributors
of hardware equipment, tools, and other interior and exterior building commodities
and related products. The business started in late 1980’s and grown its countrywide
organization with more than 369 facilities and branches in most of the cities in the
Philippines. The business venture reached over P50 billion sales and has existing four
ISO certifications, certificates which issued to companies with enhanced quality
management system. It has over 8,000 direct-hired employees who stayed for an average
of 12 years in the company due to better staffing approach and retention programs.
Deca MaGarne Da Construction Inc. in Pampanga market, which included 12

different stores, required instantaneous provisional workers to convene their staffing
demands due to natural hazards and risks such as typhoon and earthquakes that
happened in Pampanga in the summer of 2019. Previously, the company had never
outsourced a temporary recruitment agency domestically for their staffing motives,
however due to the exigency, the company executives decided to tie up with human
resource staffing agencies. High number of competent workers needed is the main
reason of the decision of company to come up in partnering with staffing firms to acquire
the lack of workforce they had locally in their Human Resource department. The
competency, educational attainment, and job experience of the needed employees were
an extensive range which requires various recruitment personnel to handle each. The
following job vacancies include purchasing, sales, warehouse managers, general labours
and clerical employees. Time frame of two weeks was set up to deliver a total of 175
employees in the first month.
Questions:
1. Describe the main challenge/s of Deca MaGarne Da Construction Inc.?
40
2. If you are the Human Resource Director of the company, how will you help
solve the challenge/s?
3. What interventions will you propose and recommend to the company executives
relative to staffing concerns?
What I Can Do
Are you confident about how adept you are about the lesson staffing?
Let’s figure it out by answering this activity. Relax this is just a piece of cake!
You were hired as the new Talent Acquisition Head in a service-provider company.
You were tasked by the top management to personally hire the new Operations Manager
who will be responsible in overseeing the day-to-day operations of your company. List
the steps you will be implementing in hiring the said vacant position. Use the template
below. Specify the details of your output.
Job Title: Operations Manager
Applicant’s Hiring Information

Name: Years of Experience:
Age and Gender: Educational Attainment:
Step 1:
Step 2:
Step 3:
Step 4:
Step 5:
41
Step 6:
Step 7:
Step 8:
Step 9:
Step 10:
Assessment
Bravo! You did a great job. I bet you are ready to further evaluate your learning
about the lesson.
This assessment will gauge your mastery on the lesson about staffing.
COMPLETE THE SENTENCES: Choose the correct word or phrase from the box below
to complete each sentence.
MANAGEMENT UNIVERSAL
SATISFACTION STAFFING
SUCCESS OPTIMUM
SELECTION SKILLS INVENTORY
OBJECTIVES WORKFORCE
1.
1. is the process of picking or choosing the right candidate, who is most

suitable for a vacant job position in an organization.
2. Strategizing a plan for the future needs of the business is one of the
main functions of human resource inventory.
3. the process of finding the right employee with appropriate
qualifications or experience and recruiting them to fill a position, role, or job.
4. A huge amount is spent on recruitment, selection, training, and development of

employees. To get the output, the staffing function should be
performed efficiently.
42
5. By performing the staffing function effectively and efficiently, the can
describe the significance and importance which it attaches to the personnel working in
the enterprise.
6. Human Resource Inventory, also known as the comprehensively

lists down the basic information on all the employees, like their education, experience,
skills, age, gender, salary-related data, job preference, and special achievements.
7. Staffing is a function. It is the responsibility of every manager.

8. Human resources expect and deserve dignity. So the of the
staffing function lies in involving every individual in the organization in the task of
achieving organizational goals.
9. Job and morale of the workers increases through the recruitment of

the right person.
10. In an organization, the behaviour of individuals is influenced by various factors

that are involved such as education level, needs, socio-cultural factors, etc. Therefore,
the human aspects of the organization have become very important and so that the
workers can also be motivated by financial and non-financial incentives to perform
their functions properly in achieving the .
TRUE OR FALSE: Read the sentences properly. Identify if the statement, write TRUE
is the statement is correct and write FALSE if the statement is incorrect.
1. The right type of climate should be created for the workers to contribute
to the achievement of the organizational objectives.
2. Human resource inventory is the most neglected tool used in HR
planning and policymaking.
3. For the efficient performance of other functions of management,
appropriate staffing is its key since without considering this, it cannot perform the
functions of management properly.
4. Recruitment is the process of picking or choosing the right candidate,
who is most suitable for a vacant job position in an organization.
5. Training of human resources and compensating human resources are
the steps in organizational planning.
Awesome job! Now I prepared another activity which will allow you to summarize
what you have learned in the lesson.
DIRECTION: Answer the following questions or situations based on what you’ve

learned from the lesson.
1. How can managers evaluate if organizational staffing procedures are sufficient?
43
2. Should a human resource personnel need to have a human resource inventory?
Justify your answer.
3. Differentiate recruitment and selection.
4. If you could add one step in the staffing process, which one is it? Why?
5. If you could eliminate one step in the staffing process, which one is it? Why?
44
References
Cabrera H. M., Altajeros, A. DC., Benjamin, R., Del Castillo, C. D., (2016).
Organization and Management.
Heneman, H. III, Judge, T., Kammeyer-Mueller, J. (2014). Staffing Organizations 7th

Edition. New York:McGraw-Hill.
Criteria for Activities
Areas of 4 3 2 1
Assessment
Ideas Presents ideas in Presents ideas in Ideas are too Ideas are vague
an original a consistent general or unclear
manner manner
Organization Strong and Organized Some No organization;
organized beg/mid/end organization; lack
beg/mid/end attempt at a beg/mid/end
beg/mid/end
Understanding Writing shows Writing shows a Writing shows Writing shows
strong clear adequate little
understanding understanding understanding understanding
Word Choice Sophisticated use Nouns and verbs Needs more Little or no use
of nouns and make essay nouns and verbs of nouns and
verbs make the informative verbs
essay very
informative
Sentence Sentence Sentence Sentence No sense of
Structure structure structure is structure is sentence
enhances evident; limited; structure or
meaning; flows sentences mostly sentences need flow
throughout the flow to flow
piece
Mechanics Few (if any) errors Few errors Several errors Numerous
errors
45
Senior High School
Organization and Management

Quarter 2 – Module 10 – Lesson 1:
Process of Recruiting, Selecting
and Training of Employees
Writer:
JIEGO A. REYES
T-II Justino Sevilla High School, Arayat
Editors:
CHAIRMAN
LUCIO B. GOMEZ – MT I
46
What I Need to Know
Recruiting, Selecting and Training of employees. The scope of this module permits it
to be used in many different learning situations. The language used recognizes the
diverse vocabulary level of students. The lessons are arranged to follow the standard
sequence of the course. But the order in which you read them can be changed to
correspond with the textbook you are now using.
The module consists of one lesson, namely:

• Lesson 1 – Process of Recruiting, Selecting and Training of Employees
After going through this module, you are expected to:

1. explain the steps in the recruitment and selection process;
2. recognize the different training programs;
3. identify the policy guidelines on compensation and wages and
performance appraisal;
4. discuss the importance of employee relation;
5. differentiate various employee movements; and
6. realize the importance of adopting an effective reward system.
What I Know
Without formally taking the lesson, let’s do a pre-assessment on how expert
you are in the topic related to recruitment, selection and training.
We will distinguish here if you still need to take this module or not.
DIRECTION: Choose the letter of the best answer. Write the chosen letter on a
separate sheet of paper.
1. In time, when the company is in need of human resources, the employee

records are reviewed and the most hardworking or potential employees are
referred for the vacant posts. What type of internal recruitment this
indicates?
a. Promotion
b. Referral
47
c. Transfer
d. None of the above
2. It refers to the act of advancement of employee’s post in the company.

a. Promotion
b. Referral
c. Transfer
d. None of the above
3. These are the two types of recruitment in the organization.

a. Internal and external
b. Positive and negative
c. Promotion and referral
d. Strategic and technical
4. When employees are promoted or transferred to better branch, employees feel

valued by the company and in return employees also become loyal and
faithful to its company operational plans. This is an example of what benefit
of internal recruitment?
a. Accurate selection
b. Adaptability
c. Economic in nature
d. Strengthens employee-employer relationship
5. This is the most widely used method for external recruitment where
companies announce vacancies through electronic and print media such as
newspaper, magazines, television, radio and internet.
a. Advertisements
b. Educational institutes
c. Private employment agencies
d. Walk-ins
6. This is the process of selection and short-listing of the right candidates with the
necessary qualifications and skill set to fill the vacancies in an organization.
a. Promotion
b. Recruitment
c. Selection
d. Training
7. This is the process of enhancing the skills, capabilities and knowledge of

employees for doing a particular job.
a. Promotion
b. Recruitment
c. Selection
d. Training
8. This helps the employers know if any of the potential candidates are physically
and mentally fit to perform their duties in their jobs.
a. Employment Tests
48
b. Interview
c. Medical examinations
d. Screening applications
9. This is a type of job interview where one interviewer is speaking with one
candidate. This is the most common type of interview.
a. One-on-one interview
b. Panel interview
c. Structured interview
d. Unstructured interview
10. This type of examination assesses the potential candidate if it has potential
for learning the skills required to do a job efficiently. This also measures an
applicant’s capacity and his potential for development.
a. Aptitude Test
b. Intelligence Test
c. Personality Test
d. Proficiency Test
11.Training improves efficiency and effectiveness of employees. Well trained

employees show both quantity and quality performance. This entails what
specific benefit of training?
a. Chances of promotion
b. Fewer accidents
c. Improve employee morale
d. Improve productivity
12. These are methods are those in which training is provided away from the
actual working condition. It is generally used in case of new employees.
a. Off the job training
b. On the job training
c. Strategic training
d. Tactical training
13. This refers to the joint initiative of the employee as well as the employer to
upgrade the existing skills and knowledge of an individual.
a. Employee Development
b. Employee Engagement
c. Employee Initiatives
d. Employee Retention
14.Type of examinations which are designed to measure the skills already

acquired by the individuals. They are also known as performance,
occupational or trade tests.
a. Aptitude Test
b. Intelligence Test
c. Personality Test
d. Proficiency Test
49
15. These are methods which are given to the employees within the everyday
working of a concern. It is a simple and cost-effective training method.
a. Off the job training
b. On the job training
c. Strategic training
d. Tactical training
Lesson Process of recruiting,

1 selecting, and training
employees
This lesson gives you a better understanding of the definitions of recruitment,

selection and training in the organization and the processes involved in each
entities. It also discusses the idea about employee development which is essential
to human resource growth and productivity.
What’s In
Let’s figure out the relationship of the previous lesson to recruitment, selection
and training. Staffing, the preceding topic and the current topic will highlight the
importance of linking the two lessons.
Answer this pre-evaluation to further understand their correlation. Let’s start!
DIRECTION: Assume that there are job vacancies in your company; expound the
steps in filling the given positions under staffing. Provide the appropriate
procedures and protocol in employment of an applicant.
Staffing Recruitment Selection Training

Retail Store
Manager
50
Call Center
Agent
Mobile Phone
Sales Staff
Factory
Worker
Notes to the Teacher

This module was designed for the students to fully acquire
the expected learning competencies. It includes series of activities
which are suggested to be accomplished for better understanding
and mastery of the lesson. The teacher should give proper
assistance when necessary.
51
What’s New
To learn additional knowledge relative to recruitment, selection, and training,

the activity below will emphasis your fluency in human resource-related system.
DIRECTION: Complete the steps in the selection process. Use the format
below.
Step 1:
Step 2:
Step 3:
Step 4:
Step 5:
Step 6:
Step 7:
Step 8:
52
What is It
You did great in the pre-assessment. Now you have idea what will be the lessons
are about.
Start gaining more knowledge on recruitment, selection and training.
Recruitment
In human resource management, “recruitment” is the process of finding and
hiring the best and most qualified candidate for a job opening, in a timely and cost-
effective manner. It can also be defined as the “process of searching for prospective
employees and stimulating and encouraging them to apply for jobs in an
organization”.
It is one whole process, with a full life cycle, that begins with identification of
the needs of the company with respect to the job, and ends with the introduction of
the employee to the organization.
Internal and External Recruitment
Internal recruiting is when a business or organization intends to fill a

vacancy from within its existing workforce.
External recruitment on the other hand is when an organization looks to fill

vacancies from applicants outside of the company.
Types of Internal Recruitment
Employee Referral. In companies, there are employees, and then there are supervisors
who evaluate their performances. The supervisors keep proper record of each and
every employee. In time, when the company is in need of human resources, these
records are reviewed and the most hardworking or potential employees are referred
for the vacant posts.
Promotion. Promotion is the act of advancement of employee’s post in the company.

In some organization, it is mandatory, meaning that employees are promoted in
certain interval of time period, while in others; employees are promoted as per their
performance.
Transfer. In large scale organizations having several branches, human resource

need of one branch can be fulfilled by the human resource of another branch.
Under this method, human resource need at any branch is identified at first.
Information about vacancy is then distributed in all the branches, following which,
interested and suitable candidates are transferred.
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Advantages of Internal Recruitment
Internal recruitment is easy and fast method of recruiting employees, apart
from which, it has several other benefits.
Encourages hard work and develops employees. When employees are recruited from
within the organization, it sets a mentality in employees’ minds that sincere
employees are promoted. Promotion means increased payment and fame. So they
become encouraged to put more efforts and make quality outputs. This results in
development of employee.
Accurate selection. When employees are recruited from inside, there is almost zero
chances of selecting a wrong person because company does not only have its
employees’ record but also knows them personally which is not possible in external
recruitment.
Economic in nature. External recruitment involves various processes like job
announcement, interview, etc which is both time and money consuming. In
contrast, internal recruitment saves time as well money.
Strengthens employer-employee relationship. When employees are promoted or
transferred to better branch, employees feel valued by the company and in return
employees also become loyal and faithful to its company. This strengthens
employer-employee relationship and makes a company stronger.
Adaptability. When new employees are hired, they require training and orientation.
But when employees are recruited from inside the company, they take less time to
adapt to new work because they are already familiar to environment, employees
and culture of the company.
Disadvantages of Internal Recruitment
Although internal recruitment is cost and time effective, it also has some
drawbacks. These drawbacks are described below.
Promotes unemployment. There are people outside the office as well who are capable
or has potential to complete the concerned task. So when companies keep
recruiting employees from inside, external talents are deprived of working platform.
Promotes favouritism. Favouritism is an unfair practice where people or groups are
treated in bias. Simply, favouritism is the act of showing personal preference
towards a person or a group.
Limited choice. Internal recruitment limits the choice of company. Candidates

inside the company may not be as skilled as the post demands them to be.
Types of External Recruitment
External recruitment is the process of filling vacant posts of the company by

the employees excluding the existing ones. New people with required skills and
qualification are enrolled in the organization and thus new ideas are initiated in the
company. External sources that can fill up vacancies in the organization are
described below.
54
Advertisement. Advertisement is the most widely used method for external
recruitment. Companies announce vacancies through electronic and print media
such as newspaper, magazines, television, radio and internet.
Walk-ins. Walk-ins are those who enter the organization in search of job. This method
is applicable for unskilled and semi-skilled posts.
Private employment agencies. Private employment agencies work as middlemen

between prospective employees and companies. They maintain databank of job
vacancies as well as job seekers and make a perfect match. Such agencies charge
commission for rendering their service.
Educational institutes. Nowadays, most of the companies have started the trend of
conducting direct recruitment from colleges and universities. Companies visit
educational institutes annually and recruit bright students, especially at
managerial level. This saves time and money and encourages students to study hard.
Labor contractors. Labor contractors and private employment agencies are similar
in nature. They keep regular contact with laborers and industries, and provide the
industries with laborers whenever required. They also charge commission for their
service rendered.
Advantages of External Recruitment
Qualitative human resources. External recruitment creates a pool of eligible

candidates and best-qualified ones can be chosen easily as the management team
has greater choice of selection. This ensures the quality of human resources in the
organization.
Rejuvenates organization. When employees are recruited externally, there is inflow

of new ideas, skills and enthusiasm in organization. This rejuvenates organization
and its system.
Better adaptation to the changing environment. Technologies are changing rapidly in

this generation and enrolment of new ideas, knowledge and skills help in
adaptation to the changes easily.
Disadvantages of External Recruitment
Demoralize employee. Hardworking employees expect upgrade of their position. But

when new employees from outside are hired, the existing employees feel
demoralized. This may lead the existing employees to resign from the job as well.
High cost. External recruitment is a long process and it includes various steps like
job announcement, orientation, training, etc. This is time consuming as well as
money consuming.
Adaptability problems. New employees take time to get used to the culture and
environment of the organization. They also take time to get comfortable with their
colleagues which hamper their performance.
Chances of wrong selection. There are chances that the management team selects a
wrong employee. If wrong employees are selected then effectiveness of organization
is decreased.
55
Promotes nepotism. Nepotism is the practice where people with some kind of authority
favour their relatives and friends by offering jobs. While recruiting employees from
outside, chances of nepotism is high.
Selection
The selection process can be defined as the process of selection and short- listing
of the right candidates with the necessary qualifications and skill set to fill the
vacancies in an organisation. The selection process varies from industry to industry,
company to company and even amongst departments of the same company.
Steps in Selection Process

Most often, the selection and recruitment are used interchangeably but
however both have different scope. The former is a negative process that rejects as
many unqualified applicants as possible so as to hire the right candidate while the
latter is a positive process that attracts more and more candidates and stimulates
them to apply for the jobs.
Based on the complexity of selecting the right candidate the selection

process is comprised of several steps:
Step 1: Preliminary Interview

This is a very general and basic interview conducted so as to eliminate the
candidates who are completely unfit to work in the organization. This leaves the
organization with a pool of potentially fit employees to fill their vacancies.
Step 2: Receiving Applications

Potential employees apply for a job by sending applications to the organization.
The application gives the interviewers information about the candidates like their bio-
data, work experience, hobbies and interests.
Step 3: Screening Applications

Once the applications are received, they are screened by a special screening
committee who choose candidates from the applications to call for an interview.
Applicants may be selected on special criteria like qualifications, work experience etc.
Step 4: Employment Tests

Before an organization decides a suitable job for any individual, they have to
gauge their talents and skills. This is done through various employment tests like
intelligence tests, aptitude tests, proficiency tests, personality tests etc.
Step 5: Employment Interview

The next step in the selection process is the employee interview. Employment
interviews are done to identify a candidate’s skill set and ability to work in an
organization in detail. Purpose of an employment interview is to find out the
suitability of the candidate and to give him an idea about the work profile and what is
expected of the potential employee. An employment interview is critical for the
selection of the right people for the right jobs.
56
Step 6: Checking References
The person who gives the reference of a potential employee is also a very
important source of information. The referee can provide info about the person’s
capabilities, experience in the previous companies and leadership and managerial
skills. The information provided by the referee is meant to keep confidential with
the HR department.
Step 7: Medical Examination

The medical exam is also a very important step in the selection process. Medical
exams help the employers know if any of the potential candidates are physically
and mentally fit to perform their duties in their jobs. A good system of medical checkups
ensures that the employee standards of health are higher and there are fewer cases of
absenteeism, accidents and employee turnover.
Step 8: Final Selection and Appointment Letter

This is the final step in the selection process. After the candidate has
successfully passed all written tests, interviews and medical examination, the employee
is sent or emailed an appointment letter, confirming his selection to the job. The
appointment letter contains all the details of the job like working hours, salary, leave
allowance etc. Often, employees are hired on a conditional basis where they are hired
permanently after the employees are satisfied with their performance.
Types of Job Interview
1. Patterned, Structured or Guided Interview

This is the most common method of interview. It is a pre-planned interview
and more carefully designed to have a high degree of accuracy, precision and exacted.
Under this type of interview a list of questions to be asked by the interviewer is
prepared in advance on the basis of job specification, and to secure information from
the candidate. The main purpose of this type of interview is fact- finding; it measures
personality, motivation and interest of the candidate. This type of interview is useful
in selection of semi-skilled employees. It is also called as directed or standardized
interview.
2. Unstructured or Unguided Interview

It is an unstructured and non-planned interview. Therefore it is called as
“non-directed interview” also. It is designed to let the interviewee speak his mind
freely. The idea is to give candidate complete freedom to sell himself without the
encumbrances of the interviewer’s questions. It is not directed by pre-determined
list of questions. It is very flexible in nature, candidate feels very comfortable and
free. Full freedom is given to him to discuss and express his points of view and ideas.
The basic objectives of this type of interview are to find out the feeling, desire or
problems of the candidate.
3. One-to-One Interview
In a one-to-one interview session, one interviewer is speaking with one
candidate. This is the most common type of interview. It has already been established
that you have the skills and education necessary for the position. The interviewer
wants to see if you will fit in with the company and how your skills will complement
the rest of the department or unit. Your goal in a one-to-one interview
57
to is to establish rapport with the interviewer and show how your qualifications will
benefit the company.
4. Panel Interview
In panel or board interview, candidate is screened by a group of interviewers
who are specialists in their respective fields. This type of interview is just
opposite to “Group Interview.” A candidate is interviewed by a number of
interviewers, and the questions are asked by them in serial or in random order.
Types of Employment Tests
A large number of tests are used in business and industry for the selection
of personnel. They can be classified into the categories discussed below:
Intelligence Tests:
These tests are used to judge the mental capacity of the applicants. They
measure the individual learning abilities, i.e., ability to catch or understand
instructions and also ability to make decision and judgment. There are many verbal
as well as non-verbal intelligence tests constructed by the psychologists for
different jobs. Intelligence tests are widely used in the selection of personnel for
almost every kind of job from the unskilled to the skilled one.
Aptitude Tests:
Aptitude means the potential which an individual has for learning the skills
required to do a job efficiently. Aptitude tests measure an applicant’s capacity and
his potential for development. Aptitude tests are the most promising indices for
predicting candidate’s success.
Proficiency Tests:
Proficiency tests are those which are designed to measure the skills already
acquired by the individuals. They are also known as performance, occupational or
trade tests. They are used to test the level of knowledge and proficiency acquired by
the applicants. A trade test is designed as replica of the actual work situation. A trade
test should be differentiated from an aptitude test. An aptitude test measures the
potential of the applicant to learn skills required on a job.
Interest Tests:
Interest tests identify patterns of interests, i.e., areas in which the individual
shows special concern, fascination and involvement. These tests will suggest what
types of jobs may be satisfying to the employees. Interest tests are more often used
for vocational guidance also. They help the individuals in selecting occupations of
their interest.
Personality Tests:
Personality tests probe the qualities of an individual’s personality as a whole,
the combination of aptitude, interest and usual mood and temperament. It is very
difficult to devise and use personality tests because they are concerned with
discovering clues to an individual’s value system, his emotional reactions, maturity,
etc.
58
Training of Employees
Training of employees takes place after orientation takes place. Training is
the process of enhancing the skills, capabilities and knowledge of employees for doing
a particular job. Training process moulds the thinking of employees and leads
to quality performance of employees. It is continuous and never ending in nature.
Training is a program that helps employees learn specific knowledge or skills

to improve performance in their current roles. Development is more expansive and
focuses on employee growth and future performance, rather than an immediate job
role.
Importance of Training
Training is crucial for organizational development and success. It is fruitful

to both employers and employees of an organization. An employee will become more
efficient and productive if he is trained well.
Training is given on four basic grounds:
1. New candidates who join an organization are given training. This training
familiarizes them with the organizational mission, vision, rules and
regulations and the working conditions.
2. The existing employees are trained to refresh and enhance their knowledge.
3. If any updates and amendments take place in technology, training is given to
cope up with those changes. For instance, purchasing new equipment, changes
in technique of production, computer impartment. The employees are trained
about use of new equipments and work methods.
4. When promotion and career growth becomes important. Training is given so
that employees are prepared to share the responsibilities of the higher level job.
Benefits of Training
1. Improves morale of employees- Training helps the employee to get job

security and job satisfaction. The more satisfied the employee is and the
greater is his morale, the more he will contribute to organizational success and
the lesser will be employee absenteeism and turnover.
2. Less supervision- A well trained employee will be well acquainted with the
job and will need less of supervision. Thus, there will be less wastage of time
and efforts.
3. Fewer accidents- Errors are likely to occur if the employees lack knowledge
and skills required for doing a particular job. The more trained an employee
is, the less are the chances of committing accidents in job and the more
proficient the employee becomes.
4. Chances of promotion- Employees acquire skills and efficiency during
training. They become more eligible for promotion. They become an asset for
the organization.
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5. Increased productivity- Training improves efficiency and productivity of
employees. Well trained employees show both quantity and quality
performance. There is less wastage of time, money and resources if
employees are properly trained.
Methods of Training
Training is generally imparted in two ways:
1. On the job training- On the job training methods are those which are given
to the employees within the everyday working of a concern. It is a simple and
cost-effective training method. The in proficient as well as semi-proficient
employees can be well trained by using such training method. The
employees are trained in actual working scenario. The motto of such training
is “learning by doing.” Instances of such on-job training methods are job-
rotation, coaching, temporary promotions, etc.
2. Off the job training- Off the job training methods are those in which training
is provided away from the actual working condition. It is generally used in case
of new employees. Instances of off the job training methods are workshops,
seminars, conferences, etc. Such method is costly and is effective if and
only if large number of employees have to be trained within a short time period.
Off the job training is also called as vestibule training, i.e., the employees are
trained in a separate area (may be a hall, entrance, reception area, etc. known
as a vestibule) where the actual working conditions are duplicated.
Employee Development
Employee development is a joint initiative of the employee as well as the
employer to upgrade the existing skills and knowledge of an individual. It is of utmost
importance for employees to keep themselves abreast with the latest developments in
the industry to survive the fierce competition. Believe me, if you are not aware of
what is happening around you, even before you realize you would be out of the game.
As they say there is really no age limit for education. Upgrading knowledge is essential
to live with the changes of time.
Employee development goes a long way in training, sharpening the skills of

an employee and upgrading his/her existing knowledge and abilities. In a layman’s
language, employee development helps in developing and nurturing employees for
them to become reliable resources and eventually benefit the organization. Employees
also develop a sense of attachment towards the organization as a result of employee
development activities.
Employee development is almost universally recognized as a strategic tool for

an organization's continuing growth, productivity and ability to retain valuable
employees. If organizations neglect certain challenges, then the employee
development process will be cumbersome for the organization, frustrating for
employees and of uncertain value for both.
60
What’s More
Did you find the lesson challenging? Let’s go ahead and evaluate your
mastery of the topic.
Answer the following activities. This will allow you realize what topics
you are well verse and what topics that you still need to focus on.
Activity 1
1. Recruitment has two major types. Provide at least three advantages of the
two recruitment types in the organization. Use the matrix below.
Internal Recruitment External Recruitment
1. 1.
2.
2.
3.
3.
2. Training is essential to employee’s growth and productivity. Given the matrix

below, compare and contrast the two methods of training. Give at least three main
differences/similarities.
On-the-Job training Off-the-job training
1. 1.
2.
2.
3.
3.
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Activity 2
1. Enumerate the four (4) basic types of job interviews.
a.
b.
c.
d.
2. You were tasked to do the testing for the applicants intended for Sales
Representative position. Describe how you will execute the testing procedure.
Indicate what type of examination needed to hire the said job position.
Activity 3
1. Employee development allows employees to nurture their potential as part of
the workforce. Explain how employee development can make an employee be
an asset to an organization. Elaborate your answer.
2. Training plays a vital role in the human resource. In the advent of

organizational performance and employee’s productivity, specify at least five
(5) benefits of training.
a.
b.
c.
d.
e.
What I Have Learned
I am in no doubt that you have gained a lot of new learning about recruitment,
selection and training – facets of human resource management which are indeed
essential to workforce management.
62
Let’s go ahead and prove your proficiency in the lesson.
DIRECTION: Fill the spaces with appropriate answer based on the discussion
about the lesson.
1. Recruitment is the process of

. It can also be
defined as “the process of searching for prospective employees and stimulating
and encouraging them to apply for jobs in an organization”.
2. There are two types of recruitment: is when a

business or organization intends to fill a vacancy from within its existing
workforce while is when an organization looks to
fill vacancies from applicants outside of the company.
3. , , and are the types

of internal recruitment, while the following are the classifications of external
recruitment: , , ,
and .
4. can be defined as the process of selection and short-

listing of the right candidates with the necessary qualifications and skill set to fill
the vacancies in an organization. The selection process varies from industry to
industry, company to company and even amongst departments of the same
company.
5. The following are the processes relative to selection of applicants:

, , , ,
, , , ,
and .
6. Patterned, structured or guided interview, or guided interview, one-to-one

interview and panel interview are the most common categories of
.
7. In the selection of personnel, various types of employment tests are used by the
industries such as , , ,
, and _.
8. is the process of enhancing the skills, capabilities and

knowledge of employees for doing a particular job. Training process moulds the
thinking of employees and leads to quality performance of employees. It is
continuous and never ending in nature.
9. Training provides a number of benefits among employees within an organization

such as , _, ,
, and _.
10. Training is generally imparted in two ways: and

.
63
What I Can Do
Excellent! You are doing great. It only shows how capable you are in
practicing the knowledge you achieved in this lesson.
Another application to what you have learned in recruiting, selecting and

training topics, answer the activity below. I will put you in the shoe of a real Human
Resource professional. Go and apply your learning!
You were promoted as the new Recruitment Manager in your company, the
Human Resource Director asked you to recruit additional person to be added in the
recruitment team, someone who has job experience in talent acquisition and training.
Using the matrix below, provide the processes you will implement relative to your
recruitment. Apply the four (4) basic procedures provided below.
Position: Recruitment Officer
Recruitment Selection Training Employee

Development
64
Assessment
Are you interested knowing how far you go since the first time you take the
lesson? To help you evaluate your expertise in the lesson, continue answering the
assessment part.
Please answer on a separate sheet of paper.
CORRECT THE SENTENCES: Identify the word that makes the sentence incorrect
and write down the correct one.
1. Transfer is the act of advancement of employee’s post in the company. In
some organization, it is mandatory, meaning that employees are promoted in
certain interval of time period, while in others; employees are promoted as per
their performance.
2. When new employees are terminated, they require training and orientation.
But when employees are recruited from inside the company, they take less time
to adapt to new work because they are already familiar to environment,
employees and culture of the company.
3. Leading is the practice where people with some kind of authority favor their
relatives and friends by offering jobs. While recruiting employees from
outside, chances of nepotism is high.
4. Employment interviews are done to identify a candidate’s skill set and ability to
work in an organization in detail. Purpose of an employment interview is to find
out the incompetence of the candidate and to give him an idea about the work
profile and what is expected of the potential employee.
5. Personality tests identify patterns of interests, i.e., areas in which the individual
shows special concern, fascination and involvement. These tests will suggest
what types of jobs may be satisfying to the employees. This help the individuals
in selecting occupations of their interest.
COMPLETE THE SENTENCES: Choose the correct word or phrase from the box
below to complete each sentence.
UNEMPLOYMENT SCREENING
SUPERVISION EXTERNAL RECRUITMENT
RECRUITMENT PROFICIENCY
EMPLOYEE DEVELOPMENT INSIDE
MORALE EDUCATIONAL INSTITUTES
65
1. is almost universally recognized as a strategic tool for an
organization's continuing growth, productivity and ability to retain valuable
employees.
2. When employees are recruited from , there is almost zero
chances of selecting a wrong person because company does not only have its
employees’ record but also knows them personally which is not possible in
external recruitment.
3. There are people outside the office as well who are capable or has potential
to complete the concerned task. So when companies keep recruiting employees
from inside, external talents are deprived of working platform, hence promotes
_.
4. Nowadays, most of the companies have started the trend of conducting
direct recruitment from colleges and universities. Companies visit
annually and recruit bright students, especially at
managerial level. This saves time and money and encourages students to study
hard.
5. To ensure the quality of human resources in the organization,
creates a pool of eligible candidates and best-qualified
ones can be chosen easily as the management team has greater choice of
selection.
6. Once the applications are received, of applicants will be
executed; qualified candidates will be called for an interview by the screening

committee.
7. This type of tests is designed to measure the skills already acquired by the
individuals. This is also known as performance, occupational or trade tests
which used to test the level of knowledge and acquired by
the applicants.
8. The existing employees are trained to refresh and enhance their

.
9. Training helps the employee to get job security and job satisfaction. The
more satisfied the employee is and the greater is his , which
will contribute to organizational success.
10.A well trained employee will be well acquainted with the job and will need
less of . Thus, there will be less waste of time and efforts.
What a great performance! You are starting to become an outstanding HR

professional. The additional activities below will be your ticket in becoming more expert
in the field of human resource management.
DIRECTION: Answer the following questions or situations based on what you’ve

learned from the lesson.
1. How important is recruitment, selection and training to the organizations?
66
2. Which among the types of job interviews is the most practical to be
implemented by companies? Justify your answer.
3. What is the most feasible and practical recruitment style? Why?
4. If you could eliminate one step in the selection process, which one is it?
Why?
5. If a company does not possess sufficient budget for continuous training,

what other tasks might be possible in replace with training of employees?
Name at least three (3) tasks.
a.
b.
c.
67
References
Cabrera H. M., Altajeros, A. DC., Benjamin, R., Del Castillo, C. D., (2016).
Organization and Management.
Heneman, H. III, Judge, T., Kammeyer-Mueller, J. (2014). Staffing Organizations

7th Edition. New York:McGraw-Hill.
Criteria for Activities
Areas of 4 3 2 1
Assessment
Ideas Presents ideas in Presents ideas Ideas are too Ideas are vague
an original in a consistent general or unclear
manner manner
Organization Strong and Organized Some No
organized beg/mid/end organization; organization;
beg/mid/end attempt at a lack
beg/mid/end beg/mid/end
Understanding Writing shows Writing shows a Writing shows Writing shows
strong clear adequate little
understanding understanding understanding understanding
Word Choice Sophisticated use Nouns and Needs more Little or no use
of nouns and verbs make nouns and verbs of nouns and
verbs make the essay verbs
essay very informative
informative
Sentence Sentence Sentence Sentence No sense of
Structure structure structure is structure is sentence
enhances evident; limited; structure or
meaning; flows sentences sentences need flow
throughout the mostly flow to flow
piece
Mechanics Few (if any) Few errors Several errors Numerous
errors errors
68
Senior High School
Organization & Management

Quarter II
Module 11 & 12
Functions and Importance of Compensation,

Wages and Performance Evaluation, Appraisal,
Employee Relations and Movement and Reward
System
Writer:
REGINA S. SIMBULAN
MT-II Balucuc HS, Apalit
Editors:
CHAIRMAN
69
JOENER MAGLALANG – MT- I, Sta. Maria HS
70
Let’s get started as you are about
to continue your understanding on
the other functions and important
What I Need to part of staffing in management.
Know
the subject Organization and Management. The scope of this module permits
it to be used in many different learning situations. The language used recognizes the
It will be focus on:
Lesson 1: Examining the Functions and Importance of Compensation, Wages

and Performance Evaluation, Appraisal, Employee Relations and Movement

1. identify the policy guidelines on compensation and wages and performance
evaluation or appraisal;
2. discuss the importance of employee relations;d
3. differentiate various employee movements; an
What I Know
Let’s start!
Direction: Choose the letter of the correct answer. Write the letter that corresponds
to your answer on a separate sheet of paper.
1. A process undertaken by the organization, usually done once a year,

designed to measure employee’s work performance.
a. compensation c. performance appraisal
b. employee relations d. performace evaluation
2. It is the connection created among employees/workers as they do their
assigned tasks for the organization to which they belong.
b. employee relations d. performace evaluation
3. A series of actions initiated by employee groups toward an end or specific
goal.
a. employee movement c. peformance appraisal
b. employee relations d. performance evalaution
71
4. All forms of pay given by employers to their employees for the performance of
their jobs.
b. employee relations d. performance evaluation
5. It entails the movement of an employee from a lower position to a
higher one.
a. horizontal c. transfer
b. promotion d. vertical
6. The movement to another position but with the same level or scope of
responsibility.
7. It involves the transfer of an employee to another department or position
with similar responsibilities or status.
8. The movement of an employee to a higher level of position.
a. demotion c. promotion
b. horizontal d. transfer
9. The movement of an employee to a lower level of position.
b. horizontal d. transfer
10.Which of the following should NOT be included?
a. benefits c. praise
b. incentives d. stock options
11.The following are tangible rewards EXCEPT for?
a. money c. praise
b. car incentive d travel incentive
12.Which of the following should NOT be included?
a. promotion c. separation
b. demotion c. compensation
13.These elements are necessary to maintain harmonious employee relations,
EXCEPT for?
a. collective bargaining c. emphasis on mutuality
b. drive for commitment d. harmonization of terms and conditions
of employment
14.What kind of compensation is given to employees to help them cope with the
prevailing conditions of he economy related to the rising standard of living
and inflation?
a. across the board increase c. merit increaases
b. cost of living allowance d. seniority pay
15.Which is called the fixed part of the pay/salary?
a. Basic pay c. incentives
b. Cost of living allowance d. other benefits
72
Lesson Examine the Functions and Importance of
Compensation, Wages and Performance
1 Evaluation, Appraisal, Employee Relations
and Movement
As you proceed to this module, you will understand the most important function of
staffing in management. Do you see yourself getting a high paid job in the future? If
given such opportunity to work, what benefits should you enjoy from the company
you’re going to work with? How will you interact with other people so you will be
promoted?
Not es t o t he T eacher
The teacher must take into considerations the essential

What’s In skills needed in the development of this competency
including the background knowledge which may reinforce
learning. This module will help the learners link the gap of
learning to achieve mastery of the lesson
Let us rewind and freshen up your

brain by completing the puzzle based
on our previous lesson. Write your
answer on a clean sheet of paper.
1 7
4 6
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1. The condition of having paid work.
2. It involves a group of people gathered to discuss a topic in front of an
audience, typically at scientific, business, or academic conferences, fan
conventions, and on television shows.
3. Refers to learning given by organizations to its employees that concentrates
on short-term job performance and acquisition or improvement or job related
skills.
4. The process of choosing individuals who have the required qualifications to
fill present and expected job openings.
5. Refers to filling in all organizational job positions.
6. A set of activities designed to attract qualified applicants for job position
vacancies in an organization.
7. Those who makes up the whole organization.
8. Refers to learning given by organization to its employees that is geared
toward the individual’s acquisition and expansion of his or her skills in
preparation for future job appointments and other responsibilities.
You have been puzzled in the early part of the

module and it’s a good thing that you
What’s New surpassed the activity given. And with that,
let us continue by asking you to think over
and brace ourselves ready as we exercise our
brain with some business vocabulary.
LET US ELEVATE OUR BUSINESS VOCABULARY.
The letters of the words below are jumbled. Figure out what the word is and write
the word on the blank line provided.
1. WSAEG
2. AIPAPSLRA
3. POROMIONT
4. RSEIGANTNIO
5. CMPOENTSAINO
6. RAERWD STYSME
7. MTONAYER RAREWD
8. EEMLEYOP MVOEENTM
9. EPMLYEOE RALTEISNO
10.PCEROFMRAEN EAVULAITNO
1. a fixed regular payment, typically paid on a daily or weekly basis, made by

an employer to an employee, especially to a manual or unskilled worker.
2. a process where employees performance is documented and evaluated.
3. the movement of an employee to a higher position
4. an employee’s voluntary decision to leave the organization
5. any tangible equivalent or reward for services rendered or for the
performance of a task performed in the organization.
74
6. it’s purpose is to attract talented individuals, motivate them and retain those
that have a better fit with the organization.
7. rewards which pertains to money, finance, or currency.
8. it is the result of evaluation or structural changes within the organization.
9. the connections created among employees/workers as they do their assigned
tasks for the organization.
10. A process undertaken by the organization, usually done once a year
designed to measure employees’ work performance.
As your brain was twisted with the

words given above, now let us
understand the importance of these
What is It terms in organization particularly in the
staffing function as you go along with
the module.
Why do we work? Of course our answers would be because we wanted to earn a

living right? We wanted to be compensated according to what we have performed in
the organization as well as we all wanted to be given promotion as we go along with
the process. One should know that success can only be earn if they have work
hard for it and undergone the process. Now let’s examine the functions and
importance of compensation/wages, performance evaluation, appraisal, employee
relations and movement.
WHAT IS COMPENSATION/WAGES AND PERFORMANCE EVALATION &

APPRAISAL?
Compensation/wages and performance evaluation are related to each other

because the employees’ excellent or poor performance also determines the
compensation given to them, after considering other internal and external factors like
the actual worth of the job, compensation strategy of the organization, conditions of
the labor market, cost of living and area wage rates, among others. Compensation
may come in different forms. It may be direct, indirect or nonfinancial.
75
Types of Compensation:
Direct Compensation Indirect Compensation Nonfinancial

Compensation
Worker’s salaries Benefits other than recognition programs
Incentive pays financial remunerations: enjoying management
Bonuses travel support
Commissions health ideal work environment
education convenient work hours
etc. assigned to rewarding
jobs
Compensation Guidelines
Compensation guidelines are influenced by the nature and environment of a

particular industry. For example, the pharmaceutical, banking,
telecommunications, and hotel industries offer attractive compensation packages.
The government also imposes regulations and restrictions on salaries of employees
like the minimum wage law. As of December, 2019 the minimum wage law for the
National Capital Region (NCR) is P537 per day. Meanwhile, the minimum wage for
other regions is slightly lower. The wage law is set to protect manual workers from
being taken advantage of by companies.
Compensation is usually time-based. The term salary refers to compensation given

to professionals on a monthly or semi-monthly basis. The term wage refers to
compensation given on a weekly or daily basis and usually applies to manual workers
such as carpenters, plumbers, electricians, and the like. Base pay or basic pay is
the fixed part of pay. It is the minimum payment for the tasks rendered by the
employee based on his or her position or job title.
Purposes of Performance Evaluation: Administrative and Developmental
Improving individual job performance through performance evaluation is just one

of the reasons why employees are subject to assessment on a continuous basis. There
are other purposes behind employee assessment that are beneficial to the company
and employees:
Administrative Purposes – These are fulfilled through appraisal/evaluation programs
that provide information that may be a basis for compensation decisions, promotions,
transfers and promotions. Human resource planning may also make use of it for
recruitment and selection of potential employees.
Developmental Purposes – These are fulfilled through appraisal/evaluation programs
that provide information about employees’ performance and their strength and
weaknesses that may be used as basis for identifying their training development
needs. Through this approach, the workers become more receptive to the
explanations given by the organization’s management regarding the importance of
having evaluations at regular intervals – that these are conducted to improve
their competencies in order to prepare them for future job assignments. Different
76
performance methods are used and depending on the information an evaluator
aims to find out.
Performance Appraisal Methods
Methods of evaluating workers have undergone development in order to adapt new

legal employment requirements and technical changes. Some appraisal methods
used today are the following:
Trait methods – performance evaluation method designed to find out if the employee
possesses important work characteristics such as conscientiousness, creativity,
emotional stability, and others.
Graphic rating scales – performance appraisal method where each characteristics to

be evaluated is represented by a scale on which the evaluator or rater indicates the
degree to which an employee possesses that characteristic.
Forced-choice method – performance evaluation that requires the rater to choose
from two statements purposely designed to distinguish between positive or negative
performance; for example; works seriously – works fast; shows leadership – has
initiative.
Behaviorally anchored rating scale (BARS) – a behavioural approach to performance
appraisal that includes five to ten vertical scales, one for each important strategy for
doing the job and numbered according to its importance.
Behaviour observation scale (BOS) – a behavioural approach to performance
appraisal that measures the frequency of observed behaviour.
WHAT IS EMPLOYEE RELATIONS?
Employee relations apply to all phases of work activities in organizations, and

managers, to be effective, must be able to encourage good employee relations
among all human resources under his or her care. Employees/workers are social
beings who need connections or relations with other beings-other
employees/workers-who are capable of giving them social support as they carry out
their tasks in the organization where working on a delicate task with others can be
comforting during times of stress, fears, or loneliness.
Social support is the sum total of perceived assistance or benefits that may result
from effective social employee relationships.
Barriers to good employee relations Ways to overcome barriers to good

employee relations
anti-social personality; refusal to develop a healthy personality to
share more about oneself to co- overcome negative attitudes and
employees; being a loner behavior
lack of trust in others find time to socialize with co-workers
selfish attitude; too many self-serving overcome tendencies of being too
motives dependent on electronic gadgets.
lack of good self-esteem develop good communication skills
and be open to others’ opinion
not a team player minimize cultural/subcultural
77
tension
being conceited
cultural/subcultural differences
lack of cooperation
communication problems; refusal to
listen to what others seek to
communicate
lack of concern for others’ welfare
Can you still add ways on how barriers to overcome good employee relations?
Do you agree that social support and effective employee relations always go together?
The following elements are considered in establishing and maintaining good employee
relations.
1. Drive for commitment. When a company fosters good relationship between
management and employees, the latter is most likely to become loyal and
committed to the organization.
2. Harmonization of terms and conditions of employment. Management should
ensure that employees are provided good work conditions and benefits
as stated in their employment contracts.
3. Emphasis on mutuality. Management must be inclusive and employees
must feel that managers are also a part of the work team.
4. Policies and practices for communication. Clear and honest
communication between employees and management is a vital component of
labor relations that will ensure continuous and harmonious relationship
among members of the company.
WHAT IS EMPLOYEE MOVEMENTS?
Employee movements are inevitable and are often the result of evaluation or
structural changes within an organization. An organization can move its
employees either vertically or horizontally. Vertical movement entails the movement
of employee from a lower position. Horizontal movements involve the transfer of an
employee to another department or position with similar responsibilities or status.
Promotion is a movement to a higher level or position. Companies have different
criteria on promotion. The usual criterion is a combination of tenure and meritorious
performance.
Promotion or career advancement is a process through which an employee of a
company is given a higher share of duties, a higher pay-scale or both. A promotion
is not just beneficial for employees but is also highly crucial for the employer or
business owners. It boosts the morale of promoted employees, increases their
productivity and hence improves upon the overall profits earned by the
organization.
Tenure refers to the number of years in the service of an employee while

meritorious performance refers to an excellent or outstanding performance of
an employee. Some companies may have a clear preference based on loyalty
of the employee or performance may have more weight on the basis
78
on how much the employee contributes to the achievement of corporate
goals.
Demotion is ―reverse‖ of promotion. Demotion is the lowering of a rank, reduction in
salary, status and responsibilities. It may be defined as the assignment of an
individual to a job of lower rank and pay usually involving lower level of authority and
responsibility.
Demotion may take place due to the following reasons:
a. Breach of discipline
A breach of discipline may attract demotion as a punishment. An
organization can work only if proper discipline is maintained. A punitive action
for such breach may be necessary so that people do not flout rules, regulation
etc. of the company.
b. Inadequacy of knowledge
A person may not be competent to perform his job properly. He may not be
able to meet job requirements. In such situation, demotion is necessary.
c. Unable to cope with change
Now-a-days, there is a rapid change in technology and methods of work. The
existing employees may not be able to adjust themselves as per the new
requirements. It may be due to lack of education, technical skill, ill health, old
age or other personal reasons. Under these circumstances new persons may
be needed to take up such jobs.
d. Organizational re-organization
Sometimes there may be organizational changes. It may be by either
combing the department or closing some departments. In such situations,
the number of position may no longer be necessary and other employee may
be posted to a lower position.
Transfer is a movement to another position but with the same level or scope of
responsibility. It can also mean a transfer to another branch or location but the
employee still occupies the same tasks. In some cases, an employee may have
another position but the level is still the same.
The last type of movement is separation or an employee’s departure from the
organization. It may take the following forms:
1. Resignation. This is an employee’s voluntary decision to leave the

organization. The usual reason for employee’s resignation is to look for
better opportunities in other companies and avail of higher salaries and
benefits.
2. Separation with authorized cause. More commonly known as layoff, this is
the company’s decision to terminate employees due to business reasons. One
of the more common reasons is redundancy, wherein the introduction of new
technology will duplicate some of the existing functions of certain jobs. The
current job holders of such functions will be given an appropriate
severance package when they leave the organization. The severance package
consists of a considerable monetary package to enable employees to
maintain their standard of living during the period that they are
unemployed.
79
3. Separation with just cause. This occurs when an employee is terminated due
to theft, fraud, and other serious offenses. In this case the employee does
not receive any severance pay from the company. Apart from being
terminated from the company, an employee who was found to have
committed grave offenses may also be subjected to legal sanctions. An
employee who receives an unfavorable evaluation at the end of his or her
probationary period can also be terminated.
4. Retirement. This refers to the end of a worker’s employment with the
company due to old age, illness, or infirmity. There is no prescribed age for
retirement, although many companies set the normal retirement age for
employees at 60 years old. Some companies, however, set their retirement age
at 65. The retiring employee is given a retirement package as mandated by
law along with other voluntary benefits from the company.
Now that you have learned about

compensation, performance appraisal
and employee relations and movement,
let us again keep in our mind these
important concepts by answering the
What’s More activity given below.
Activity No. 1. Complete the word being described by putting the missing letters
in the boxes.
C M E S T O
1. the money received by an employee from an employer as a salary or wages.
T I M T D
2. performance evaluation method designed to find out if the employee
possesses important work characteristics such as conscientiousness,
creativity, emotional stability, and others.
B I C P Y
3. It is the minimum payment for the tasks rendered by the employee based on
his or her position or job title.
E C T V P Y
4. a compensation package for executives of organizations which consists of
five components: basic salary, bonuses, stock plans, benefits and
perquisites.
S C L S P R
5. is the sum total of perceived assistance or benefits that may result
from effective social employee relationships.
80
Activity No. 2 Fill in the blanks by choosing the appropriate word or group of
words in the box.
Drive for commitment harmony

Employee relations fairness
Policies and practices for communication
1. It is the sound of things that go together, as for people, it is having a

smooth relation with one another.
2. It is a clear and honest communication between employees and
management which is a vital component of labor relations.
3. It is more likely of becoming loyal and committed to the
organization.
4. An essential component that contributes to the success of a
company.
5. It is an impartial and just treatment for behavior without favoritism
or discrimination.
Activity 3. Mix and Match. Given below are skills and characteristics of an
employee in an organization. Classify the word or statements if the latter falls on
various employee movements. Put in the boxes provided before the number a
star if the employee deserves promotion, sad face if for demotion, and
a
smiley face if it is for transfer.
1. Thinking outside the box always sets you apart from your co-workers.
2. You should never lie at work — more likely than not, your boss will
appreciate honesty.
3. An employee wanted his responsibilities to be reduced.
4. An employee committed a misconduct in the organization.
5. The organization open a new branch an one employee was shifted in the
place.
81
You have surpassed activities written
on this module, and read about the
What I Have details of the lesson, now, can you put
down on your notes the focus points of
Learned the lesson? Feel free to write them on
your activity notebook by following the
table given.
FOCUS POINTS
Complete the table by filling in what you have learned.

Types of Purpose of Types of Employee Elements of
Compensation Performance Movements Employee
Evaluation Relationships
In a five sentence paragraph, can you connect the relationship of these terms,
knowing their importance in the organization? (refer to the rubric given on task 2 of
the module)
Let us full your mind with
these interesting stories?
Can you also be like these
What I Can Do people, the time you work for
yourself?
TASK 1. READ AND TELL.
―It was in 2007, when I heard from a friend that there is a fashion retailer called
H&M. I was looking for a room to grow and a happy working environment. Thus,
submitted my application on the H&M official website. At the beginning, I was a
Full Time Sales Advisor at the accessories department. Shortly after joining, I was
given the opportunity to provide support for a new store opening; 9 months later,
became the Department Manager at the kid’s and ladies departments of the said
organization.‖
- Candy Choi
82
“I joined H&M in 2007, as a part-time Sales Advisor while studying in the
university. Upon graduation, I became as full-time Sales Advisor, and after
approximately 6 months, I seized an opportunity to become a Cash Office
Responsible. During this time, I had been very honest with my manager about my
wish to be able to work abroad. Shortly after this, invitations to support the store
opening in Japan and Turkey were offered to me. My advice is to always speak out
because there is so many opportunities at H&M.‖
- Ian Tong
Questions:
1. What lesson can we gain reading their stories?
2. What type of employee movement employed to their situation?
3. Is it rewarding for an employee to be promoted?
TASK 2. BUILD ME UP.
Below is a picture showing an example of a good employee relations.

Why is it important to maintain a
harmonious relationship between management
and employees in an organization? Build your
words of not less than 200 words on a clean sheet
of paper. Your answer will be rated according to
the following:
3 2 1
Main idea or Response rephrases the Response declares Writer’s main idea
opinion question while declaring writer’s main idea or opinion is not
the writer’s main idea or or opinion. clear
opinion.
Details of Writer shares at least 3 Writer share 1 or 2 Writer shares little
evidence clear examples and examples and or no existence and
evidence to support evidence to support examples to support
their idea or opinion their idea or opinion their answer
Organization, Writer’s response has a Writer’s response Response needs
grammar, clear beginning, middle, flows, but he stronger transitions.
usage and and end. Grammar, beginning, middle Grammar, usage
punctuation usage and punctuation or end is not clear. and punctuation
makes the writing Grammar, usage make the text
readable. and punctuation difficult to
shows readability. understand.
83
We’re one step away on the last part of
this learning module, can you get a
sheet of paper and answer this
Assessment assessment to yourself? Please be
guided on the policy of following your
integrity.
I. True or False. Answer T if the statement is correct and F if the statement is

wrong.
1. Employees feel that their salary must commensurate to the efforts exerted
in the performance of their job.
2. Performance evaluations done by companies never fail.

3. The purpose of performance evaluation is for decision-making related to
promotions, transfers and terminations
4. Employee appraisal is essential to ensure that employee performance

contributes effectively to the attainment of company goals.
5. Monetary rewards are also called intrinsic rewards.
6. The normal retirement age of Filipinos is set at 60 years old.
7. The basic salary in the Philippines is applied to all regions.
8. Employee movements are inevitable and are often the result of evaluation
or structural changes within an organization.
9. The nature of compensation is determined by the competency level and
skills of the employees alone.
10. Rewards may have a motivating effect to employees.
II. Choose the letter of the best answer. Write the chosen letter on a separate
sheet of paper.
1. Which form of separation is an employee’s voluntary decision to leave the

organization?
a. Resignation c. separation with authorized cause
b. Retirement d. separation with just cause
2. It is the movement to another position but with the same level or scope of
responsibility.
a. Demotion c. separation
b. Promotion d. transfer
3. Which among the following is NOT included?
a. Demotion c resignation
b. Promotion d. separation
4. Which of the following is a common reason for demotion?
a. Accuracy c. inefficiency
b. Congeniality d punctuality
5. Which refers to the end of a worker’s employment with the company due to
old age, illness or affirmity?
a. Resignation c. separation with authorized cauase
b. Retirement d. separation with just cause
84
Congratulations! You’re now on the last part,
please follow IATF guidelines when doing this
activity. If you will be out for a while, use face
mask as you will be ask to conduct an interview,
or you may use messenger as your tool in having
this activity.
Additional
Keep safe and God Bless!
Activities
Conduct and interview with your family members or neighbors working in any
organization. Record the process on how their company is dealing with their
employee movements with regards to the promotion. Take a picture and video of your
conversation with them. The following are the questions to be asked:
o What is your previous position before you achieved your
current position now?
o How long did it take before you achieved your current
position no?
o What are positive points that you have which made you
in that position?
o What advice can you give the students of today which
can help them get a better job in the future and lead
them someday to their promotion?
85
Senior High School

Quarter II
Module 11 & 12
Functions and Importance of Compensation,
Wages and Performance Evaluation, Appraisal,
Employee Relations and Movement and
Rewards System
Writer:
REGINA S. SIMBULAN
MT-II Balucuc HS, Apalit
Editors:
CHAIRMAN
JOENER MAGLALANG – MT- I
86
Let’s get started as you are about
to continue your understanding
on the other functions and
What I Need important part of staffing in
to Know management that will surely
excites you as everything is being
rewarded!
the subject Organization and Management. The scope of this module permits it to be
used in many different learning situations. The language used recognizes the diverse
vocabulary level of students. The lessons are arranged to follow the standard sequence
of the course. But the order in which you read them can be changed to correspond
with the textbook you are now using.
It will be focus on:

Lesson 2. Reward System

1. Define what is a reward system
2. Identify the different rewards system
3. Know the aims and purpose of reward system
What I Know
Choose the letter of the best answer. Write the chosen letter on a separate sheet of paper.
1. Which of the following should NOT be included?

a. benefits
b. incentives
c. praise
d. stock options
2. A non-monetary award given to individual employee or group/teams for
meritorious service and outstanding performance.
a. award
b. benefits
c. incentives
d. praise
3. These are rewards which pertain to money, finance, or currency.
a. award
b. monetary
c. non-monetary
d. reward
87
4. Trophies, medals, or certificate of recognitions are examples of
rewards?
a. award
b. monetary
c. non-monetary
d. reward
5. Stock options, incentives, benefits, pay/salary are what kind of rewards?
a. award c. non-monetary
b. monetary d. reward
6. It helps to attract and retain highly skilled workers and promote fairness
and equity by rewarded employees according to their contribution and
effort to the organization award.
a. communication c. contribution
b. fairness d. reward system
7. Which of the following should NOT be included?
b. incentive d. separation
8. Wynonna received a travel ticket from her company as for the work she
has done, what kind of reward did she received?
a. Extrinsic reward
b. Intrinsic reward
c. Monetary reward
9. Which type of reward should NOT belong to the group?
a. Incentive c. praise
b. Pay d. award
10. Rei Delphin received a recognition of excellence certificate from his
company. What kind of reward was given to him?
a. Extrinsic reward
b. Intrinsic reward
c. Monetary reward
11. What kind of reward is given if additional pay is provided by the
company?
a. Extrinsic reward
b. Intrinsic reward
c. Monetary reward
12. A regular employee was given a promotion because of good
performance, what kind of reward is given?
a. Extrinsic reward
b. Intrinsic reward
c. Monetary reward
13. Meal allowance, car incentives, free internet are examples of?
a. Extrinsic reward
b. Intrinsic reward
c. Monetary reward
14. Which does NOT belong to the group?
a. social relationship c. job satisfaction
b. personal growth d. achievement
15. Which among the following should be eliminated?
a. new car c. feeling of contentment

b. promotion d. fringe benefits
88
Lesson
2 REWARDS SYSTEMS
A research on effective rewards systems by the Center for Effective Organizations
revealed that rewards systems can influence six factors or areas that impact
organization effectiveness. These are:
attention and retention;

motivation of performance;
skills and knowledge;
culture;
reinforce and define structure; and
cost.
Let’s bring back the memories you

have. On this part, we will check
your understanding on how the
previous lesson connects to the topic
What’s In you are about to learn!
Write a character or skill of an employee that would serve as the basis of their
movements in the organization by filling in the boxes that corresponds to the four
types of employee movements.
P D
R E
O M
M O
O T
T I
I O
O N
N
TRANSFER
SEPARATION
89
You’ve done it well and now let’s
excite your thinking brain as you
open your eyes clearly in
checking all the words related to
What’s New our new topic!
LOOP ME OVER. Try to find the words in the boxes written either horizontally,
vertically and diagonally by putting them in the loop. One is given as your
sample guide.
Reward system inceentives salary benefits

Praise nonmonetary rewards monetary rewards awards
A M O N E T A R Y R E W A R D S A
B A E S Y A E E W J B A C A F L B
C B B T H A Y E E E A B C B G M C
D C U N U D E U N L D Y D C E N C
D Y I U U E E E U E A A E D A O D
E U I I I E F I U P B D F E D P E
F
E Q Y Q O I N C E N T I V E S Q
A E H H T Y R V O R C D G Q A R PP
A
C U I S U U I Y P E E Y H E L R A
A J O O I T R Y A E F U I D A S Y
A J P O U U W O W G D E J I R T G
G U E C E I G O A B D D S C Y U H
E U E Q E K G P R H A E K E A V I
A X R E E T H L D U D A L A B W J
E E W E E H U W S I F A M G C X K
1. Can you define each of the term?

2. Which among the words given attracted you most?
3. If given a chance to work in the organization, would salary be enough to
make you satisfied?
Maybe some of you will answer SALARY on question no. 2, but do you know that it is
not only the salary that satisfies an employee?
Did you find the activities enjoyable?
If yes, then let us add more on your
What is It cup so you may understand better
Having a work is not only a privilege. What makes an individual more satisfied and
contended is when they are treated equally and have the best motivation. This topic
will let you understand that, it is more exciting for a person if the company they are
90
working with have programs other than that of the compensation they received. So
let’s find out and discuss.
WHAT IS A REWARD SYSTEM?
A reward system helps to motivate employees to achieve high quality performance. It

helps to attract and retain highly skilled workers. Reward systems promote fairness
and equity by rewarded employees according to their contribution and effort to
the organization
Organizations offer competitive rewards system to attract knowledgeable and skilled

people and to keep them motivated and satisfied once they are employed in their firm.
Further, rewards promote personal growth and development and present fast
employee turnover. Management offer different types of rewards:
Extrinsic Rewards – these are rewards which pertain to money, finance, or currency.
They usually refer to as monetary rewards.
a. pay/salary – financial remuneration given in exchange for work performance
that will help the organization attain its goals; examples: weekly, monthly, or
hourly pay, piecework compensation, etc.
b. benefits – indirect forms of compensation given to employees/workers for the
purpose of improving the quality of their work and personal lives; health care
benefits, retirement benefits, educational benefits, and others are examples of
these.
c. incentives – rewards that are based upon a pay-for-performance philosophy; it
establishes a baseline performance level that employees or groups of employees
must reach in order to be given such reward or payment; examples: bonuses,
merit pay, sales incentives, etc.
d. executive pay – a compensation package for executives of organizations which
consists of five components: basic salary, bonuses, stock plans, benefits and
perquisites.
e. stock options – are plans that grant employees that right to buy a specific
number of shares of the organization’s stock at a guaranteed price during a
selected period of time.
Intrinsic Rewards – these are rewards which do not pertain to money, finance, or
currency; refer to nonmonetary rewards that are self-granted and which have a
positive psychological effect on the employee who receives them.
a. award – nonmonetary reward that may be given to individual employees

or groups/teams for meritorious service or outstanding performance;
trophies medals, or certificates of recognition may be given instead of
cash or extrinsic rewards.
b. Praise – a form of nonmonetary, intrinsic reward given by superiors to their
subordinates when they express oral or verbal appreciation for excellent job
performance.
Aims and Purpose of a Reward System
Armstrong & Murlis (2007) put forward number of aims of reward

management/system which are very helpful to understand what businesses want
to drive through these reward systems which are as follows:
To create total reward processes that are based on beliefs about what the
organization values and wants to achieve;
To reward the employees for the value they have created for the organization;
91
To bring into line the reward practices with the employee values and business
goals and objectives;
To develop the positive psychological contract and employment relationships
with the employees;
To reward right behaviours in order to deliver the positive message to the
employees that what organization expects from them in terms of outcomes and
behaviours;
To win the war of the talent by attracting and retaining the talented, skilled and
competent pool of employees that organization need to make the difference;
To gain the commitment and engagement of the employees by motivating them
through reward practices;
To cultivate and sustain the performance culture within the organization.
It’s truly amazing and rewarding when all
works have been recognized and praise. Can
What’s More you identify now how rewards are
differentiated? Take this activity and find it
out!
This part of the module will further increase your understanding on the lesson that
was provided with you on the mini lesson.
Activity No. 1 Identify the word given if it is Extrinsic (E) or Intrinsic (I) Reward. Write
your answers on a separate sheet of paper.
.
1. cash incentive 6. sense of achievement
2. leisure trip 7. new car
3. scholarship grant 8. promotion
4. feeling of contentment _9. work freedom or autonomy

5. recognition 10. Fringe benefits
Activity No. 2 COMPLETE ME. On the figure are types of rewards given to an
employee in the organization. Identify the words either Extrinsic or Intrinsic rewards
by placing them on the box provided.
Ext rinsic R ewards Int rinsic Rewards
1. 1.
2. 2.
3. 3.
4. 4.
5. 5.
6. 6.
Now that you have identified the difference of the two types of rewards, let us now test
your skills by completing the statement written on the What I Have Learned and
Assessment the module.
92
You are great! Now that you
understand the concept of this
module, can you now give your own
What I Have words about the lesson?
Learned
Let us test your understanding on the lesson by writing two or three

sentences to complete the following:
I realized that
I resolved that
Reward systems play a key role as they determine the employer-employee

relationships. The reward systems define what the employer is willing to give, which
has a direct impact on what employees are willing to contribute in exchange.
Compensation and benefits alone are no longer effective as motivating mechanisms
because they cannot create the employee engagement required to compete in today’s
complex and fast-moving business environment. To generate employment relationship
that is long lasting and difficult to imitate, organizations can adopt a more
comprehensive view of rewards.
Let us now full your cups as you

are given freedom to give words
of wisdom by completing this
What I Can Do concept map…
Based on what you have learned about the topic, can you find other terms or words
that can also be associated with the term reward system?
93
Questions:
1. Does reward system beneficial to both employees and employers?

2. If you will be working in an organization, what kind of rewards would you
like to receive?
3. Does the aim of rewards served its purpose?
We’re one step away on the last part of
this learning module, can you get a
sheet of paper and answer this
assessment to yourself? Please be
Assessment guided on the policy of following your
integrity.
I. Match the word of the Column to that of the word in Column B. Write the
letter of the correct answer on a separate sheet of paper.
Column A Column B
1. A form of nonmonetary, intrinsic reward A. nonmonetary
rewardgiven by superiors to their subordinates when they
express oral or verbal appreciation for excellent job B. monetary reward
performance.
2. A compensation package for executives
of organizations which consists of basic salary, C. reward
bonuses, stock plans, benefits and perquisites.
3. These are rewards which pertain to D. praise
money, finance or currency.
4. Gift, prize or recompense for merit, E. executive pay
service or achievement, which may have a motivating
effect on the employee.
5. Rewards which do not pertain to money,
finance, or currency: refer to intrinsic rewards that
are self-granted and which have a positive
psychological effect on the employee who receives
them.
II. Elimination. Four words are given in each number. Choose the term which
is not related to the other three. Write the letter of your answer on a space
provided before the number.
1. A. pay C. incentives
B. benefits D. award
2. A. praise C. recognition
B. salary D. award
3. A. pay C. personal growth

B. promotion D. formal recognition
4. A. social relationship C. job satisfaction
B. personal growth D. achievement

5. A. new car C. feeling of contentment
B. promotion D. fringe benefits
94
III. TRUE OR FALSE. Write TRUE if the statement is correct and FALSE
if the statement is wrong.
1. An employee is rewarded because of his/her exemplary

performance.
2. Rewards is given to gain the commitment and

engagement of the employee.
3. An individual or employee who makes mistakes most

of the time still deserve to have an award.
4. Rewards motivate employees more.
_5. Extrinsic rewards are self-granted and which have a

positive psychological effect on the employee who receives
them.
Congratulations! You’re now on the last part,

please follow IATF guidelines when doing this
activity. If you will be out for a while, use face
mask as you will be ask to conduct an interview,
or you may use messenger as your tool in having
this activity.
Keep safe and God Bless!
1. Research on the employee benefits given by a certain company (Company A) as

compared with the employee benefits given by another company (Company B).
If given the chance to be recruited by Company A or Company B, which
company would you prefer? Explain your choice.
2. Recall a past event in your life when you were praised by your parents,
teachers, or friends for accomplishing something. Did their praise or
positive remark have any effect on your psychological well-being?
Explain your answer.
95
Senior High School

Quarter II
Module 13
Leading
Writer:
LUCIO B. GOMEZ
MT-I, San Matias High School
IEditors:
CHAIRMAN
96
97
What I Need to Know
the Leading. The scope of this module permits it to be used in many different learning
situations. The language used recognizes the diverse vocabulary level of students. The
lessons are arranged to follow the standard sequence of the course. But the order in
which you read them can be changed to correspond with the textbook you are now
using.
The module is namely:

Lesson 1 – Leading

1. identify and explain the different styles of management within the
organization;
2. cite examples/instances that show the importance of communication in
managing people within the organization;
3. share with their experiences of the management of change and diversity
in the workplace;
4. relate the interrelationship of Filipino from foreign culture through
mapping
What I Know
Multiple Choice. Write the letter of your choice in your assessment notebook.
1. The Great Man theory is associated with which of the following approaches
to studying leadership?
a. skills
b. intelligences
c. styles
d. traits
2. According to Northouse (2007), which of the following sets of five traits are
recognised widely to be major leadership traits?
a. perseverance, resilience, integrity, empathy, masculinity

b. intelligence, resilience, determination, integrity, extroversion
c. intelligence, self-confidence, determination, integrity, sociability
d. extroversion, intelligence, self-confidence, integrity, resilience
3. What are the three core elements of Adair’s Action-Centred Leadership

Model?
98
a. people, task, leader
b. task, team, individual
c. follower, leader, task
d. team, task, leader
4. Oshagbemi and Gill (2004) provide evidence to suggest that different

leadership styles are needed across different hierarchical levels. Which of
the following styles was found to remain equally important and used across
lower, middle and senior managerial levels?
a. delegative
b. directive
c. participative
d. consultative
5. According to Katz (1974), what are the three core skills required from
managers at different hierarchical levels?
a. technical, human, conceptual

b. human, cognitive, technical
c. cognitive, conceptual, technical
d. economic, technical, conceptual
6. Which types of leadership remains underexplored through research?
a. leadership of teams
b. leadership in organisations
c. leadership of organisations
d. leadership at executive level
7. According to Gill (2006), what are the four key intelligences needed by a
leader?
a. emotional, ethical, cognitive, spiritual

b. cognitive, spiritual, emotional, moral
c. moral, ethical, cognitive, spiritual
d. cognitive, emotional, ethical, technical
8. According to Schein’s (2004) model of culture, what is the manifestation –

and hence observable aspect – of a group’s culture?
a. values
b. basic assumptions
c. beliefs
d. artefacts
9. A culture is usually recognized to be .
a. fixed
b. stable
c. evolving
d. stagnant
10. There are divergent views on whether a culture is manageable.

Which of the following views of culture assumes that it is manageable?
99
a. culture as a variable
b. culture as a shared sense of belonging
c. culture as a root metaphor
d. culture as a rulebook
11. Focusing on the symbolic nature of culture encourages us to see

leadership as a symbolic activity. Seen through this lens, what is the key
focus of leaders?
a. being role models

b. monitoring and rewarding
c. sense-making and meaning-making
d. creating and maintaining rituals
12. Which other leadership theory has been drawn on to explain and
explore the key role of leaders within a group’s culture and specifically in
relation to the group’s shared sense of belonging?
a. Implicit Leadership Theory

b. Path-Goal Theory
c. Leader-Member Exchange Theory
d. Social Identity Theory
13. Which of the following is NOT a characteristic of etic cultural research?

a. studying cultural characteristics across cultures
b. studying culture and leadership through the lens of natives
c. find universal leadership behaviors
d. compare effectiveness of leadership styles across cultures
14. Which of the following leadership theories has been most frequently
used as a theoretical framework in cross-cultural leadership research?
a. Implicit Leadership Theory

b. Path-Goal Theory
c. Leader-Member Exchange Theory
d. Social Identity Theory
15. Which of the following is NOT a critique of cross-cultural

leadership research?
a. overly complex conceptualisation of culture and leadership

b. misrepresentations of local cultures and perpetuation of stereotypes
c. false assumption of representative sampling
d. treatment of language as a neutral tool
100
Lesson
1 Leading
What’s In
Read through the Situation questions and then choose the response (only one)
from the corresponding Alternative Action statements that most appeals to you
or that you feel seems the most characteristic of you. In some cases none of the
responses may be appealing or characteristic of you. Nonetheless, please select
the statement that you prefer or feel suits you best.
Situation Alternative Action 1.
Your group is not responding lately to your friendly conversation and obvious
concern for their welfare. Their performance is declining rapidly.
A. Emphasize the use of uniform procedures and the necessity for task
accomplishment.
B. Make yourself available for discussion but do not push your involvement.
C. Talk with them and then set goals.
D. Intentionally do not intervene.
2. The observable performance of your group is increasing. You have been

making sure that all members were aware of their responsibilities and expected
standards of performance.
A. Engage in friendly interaction, but continue to make sure that all members
are aware of their responsibilities and expected standards of performance.
B. Take no definite action.
C. Do what you can to make the group feel important and involved.
D. Emphasize the importance of deadlines and tasks.
3. Members of your group are unable to solve a problem themselves. You have
normally left them alone. Group performance and interpersonal relations have
been good.
A. Work with the group and together engage in program solving.

B. Let the group work it out.
C. Act quickly and firmly to correct and redirect.
D. Encourage the group to work on the problem and be supportive of their
efforts.
4. You are considering a change. Your group has a fine record of

accomplishment. They respect the need for change.
A. Allow group involvement in developing the change, but do not be too

directive.
101
B. Announce changes and then implement with close supervision.
C. Allow the group to formulate its own directive.
D. Incorporate group recommendations, but you direct the change.
5. The performance of your group has been dropping during the last few
months. Members have been unconcerned with meeting objectives. Redefining
roles and responsibilities has helped it the past. They have continually needed
reminding to have their tasks done on time.
A. Allow the group to formulate its own direction.

B. Incorporate group recommendations, but see that objectives are met.
C. Redefine roles and responsibilities and supervise carefully.
D. Allow group involvement in determining roles and responsibilities but do not
be too directive.
6. You stepped into an efficiently run group. The previous leader tightly
controlled the situation. You want to maintain a productive situation, but
would like to begin having more time building interpersonal relationships
among members.
A. Do what you can do to make the group feel important and involved.
B. Emphasize the importance of deadlines and tasks.
C. Intentionally do not intervene.
D. Get the group involved in decision-making, but see that objectives are met.
7. You are considering changing to a structure that will be new to your group.
Members of the group have made suggestions about needed change. The group
has been productive and demonstrated flexibility.
A. Define the change and supervise carefully.

B. Participate with the group in developing the change but allow members to
organize the implementation.
C. Be willing to make changes as recommended, but maintain control of the
implementation.
D. Be supportive in discussing the situation with the group but not too
directive.
8. Group performance and interpersonal relations are good. You feel somewhat
unsure about your lack of direction in the group.
A. Leave the group alone.

B. Discuss the situation with the group and then you initiate necessary
changes.
C. Redefine goals and supervise carefully.
D. Allow group involvement in setting goal, but don’t push.
9. You have been appointed to give leadership to a study group that is far
overdue in making requested recommendations for change. The group is not
clear on its goals. Attendance at sessions has been poor. Their meetings have
turned into social gatherings. Potentially they have the talent necessary to
help.
A. Let the group work out its problems.

B. Incorporate group recommendations, but see that objectives are met.
C. Redefine goals and supervise carefully.
D. Allow group involvement in setting goals, but do not push.
102
10. Your group, usually able to take responsibility, is not responding to your
recent redefining of job responsibilities as a result of one member leaving the
city.
A. Allow group involvement in redefining standards but don’t take control.

B. Redefine standards and supervise carefully.
C. Avoid confrontation by not applying pressure, leave situation alone.
D. Incorporate group recommendations, but see that new job responsibilities
are met.
11. You have been promoted to a leadership position. The previous leader was
involved in the affairs of the group. The group has adequately handled its tasks
and direction. Interpersonal relationships in the group are good.
A. Take steps to direct the group towards working in a well-defined manner.

B. Involve the group in decision-making and reinforce good contributions.
C. Discuss past performance with the group and then you examine the need for
new practice.
D. Continue to leave the group alone.
12. Recent information indicates some internal difficulties among group

members. The group has a remarkable record of accomplishment. Members
have effectively maintained long range goals. The have worked in harmony for
the past year. All are well qualified for the tasks.
A. Try out your solution with the group and examine the need for new
procedures.
B. Allow group members to work it out themselves.
C. Act quickly and firmly to correct and redirect.
D. Participate in problem discussion while providing support for group
members
What’s New
Leader of the Band
Dan Fogelberg
A only child alone and wild, a cabinet maker's son

His hands were meant for different work
And his heart was known to none
He left his home and went his lone and solitary way
And he gave to me a gift I know I never can repay
A quiet man of music denied a simpler fate
He tried to be a soldier once, but his music wouldn't wait
He earned his love through discipline, a thundering velvet hand
His gentle means of sculpting souls took me years to understand
The leader of the band is tired and his eyes are growing old
But his blood runs through my instrument and his song is in my soul
103
My life has been a poor attempt to imitate the man
I'm just a living legacy to the leader of the band
My brother's lives were different for they heard another call
One went to…
What is It
Leadership Styles and Theories
The following are the early leadership theories given by Kreitner and Kinicki
(2013).
Trait Theory – a theory based on leader traits or personal characteristics

that differentiate leaders from followers, traits like intelligence, self-confidence,
assertiveness, high energy and activity level, task-relevant knowledge, honesty
and integrity, being charismatic, being a visionary, and others were proposed
as leadership traits by researchers from their 1940s to the present.
Behavioral Theory – a theory that focuses on the behaviour, action,

conduct, demeanour, or deportment of a leader instead of his or her personality
traits.
Studies on this theory began during the Second World War or in the
early 1940s because of the belief the leader’s behaviour affects work group
effectiveness. Further studies emphasized that since behaviour is learned,
leader behaviours can also be learned. In short, leaders are made and not born.
Contemporary Theories of Leadership
Fiedler Model – it is a situational leadership theory proposed by Fred

Fiedler, an organizational behaviour scholar..
The theory is based on the assumption that the leader’s effectiveness is

contigent or dependent on the extent to which a leader’s style is fitted to actual
situations in the organization’s internal and external environment.
Hersey-Blanchard Model – theory proposed by Paul Hersey and Ken

Blanchard.
The theory focused on subordinates’ readiness or extent to which the

said subordinates have the ability and willingness or accomplish a specific
work assignment.
Path-Goal Theory – a theory developed by Robert House which states that
the leader’s task is to lead his other followers or subordinates in achieving their
goals by providing them direction needed in order to ensure compatibility
104
of these said goals with the organization’s goals. House identified four
leadership behaviours:
1. directive leadership – where the leader gives specific guidelines to

followers so that task accomplishment would be easier;
2. supportive leadership – where the leader shows concern and friendliness
to subordinates;
3. participative leadership – where the leader asks for suggestions from
followers before decision-making;
4. achievement oriented leadership – where the leader sets the goals that
subordinates must try to achieve.
Modern Leadership Views
1. Transactional Leadership Model

2. Transformational Leadership Model
3. Charismatic Leadership Theory
4. Visionary Leadership Theory
5. Team Leadership Theory
6. Servant Leadership Theory
Communication
Communication applies to all management functions and its general

purpose for the organization to bring positive changes that influence
activities leading to the firm’s welfare.
Types of Communication
Verbal – through the use of oral and written words
Non-verbal – through body movements, gestures, facial expressions, eye

contact, and by touching
Formal – of communication takes place within prescribed, routine
organizational work arrangements
Informal – if communication is not defined by an organization’s hierarchical
structure.
Communication Networks in Organization
Chain Network – communication flows according to the usual formal chain

of command, downward and upward
Wheel Network – communication flows between a leader and other
members of their group/team.
All-channel Network – communication flows freely among all members of a
team.
105
Barriers to Communication
1. Filtering – the shaping of information communicated in order to make it

look good or advantageous to the receiver.
2. Emotions – the interpretation of communications which may be
influenced by extreme emotions felt by the receiver
3. Information Overload – there are too many pieces of information
received by an individual may have a negative effect on a person’s
processing capacity.
4. Defensiveness – the act of self-protection when people are threatened by
something or someone.
5. Language – could also hamper because words used may have different
meanings to different people belonging to different age, educational
background, or cultural group.
6. National Culture – may also cause problems in communication among
members of an organization, especially if it is multifunctional company.
Overcoming Communication Barriers
Using Feedback
Using Simple Language
Active Listening
Controlling Emotions
Observing Body Language
MANAGEMENT OF CHANGE AND DIVERSITY IN ORGANIZATIONS
Types of Change
Changes in People
People’s attitudes, values, wants and needs, expectations, perceptions,

and behaviours change as time goes by.
Change in Structure
Due to changing conditions/situations and changing strategies used,

organizational structures may also change according to work specialization,
departmentalization, change of command, span of control, centralization,
formalization and job redesign,. Among others.
Changes in Technology
Technology changes usually refer to changes in work processes and

methods used, introduction of new equipment and work tools, automation, or
computerization.
106
FILIPINO AND FOREIGN CULTURES IN ORGANIZATION
Three Primary Filipino Values
Social Acceptance – focuses on the desire of the Filipinos to be accepted and

treated well by others
Economic Security – emphasizes that one must have financial stability and that
he or she must be able to stand on his or her own two feet, without incurring
debt in order to meet his or her basic material needs.
Social Mobility – concerned with his or her desire to meet up the social ladder, to
another higher economic level, to a higher job position of respect in his or her
family or in the community where he or she lives or in the organizations where
he or she belongs.
What’s More
General Direction: Read the statements carefully. Shade the circle of your chosen answer.
1. According to the Attribution Theory of Leadership, there are many ways
in which an organization might be negatively impacted by a leader's
attributions. How might that organization be positively affected?
A false sense of security might develop in the organization through given

attributions.
Employees could be recognized and accurately placed within the organization

based on attributions.
The leader might develop an overly positive view of an employee on a day that
is not representative of that employee overall.
The leader's perspectives and assumptions could be incorrect about employees.
The leader could develop a negative opinion of an employee on a bad day.
2. According to Fiedler's Contingency Theory, which three elements

determine a leader's situational control?
Task structure, union relations, positioning power.
Task focus, leader/member relations, positioning power.
Task structure, leader/member relations, positioning power.
Task focus, management relations, bargaining power.
3. Which is the definition of participative leadership?

Sharing information between management and the group and working together
toward goal achievement.
Exhibiting personal concern for individuals or the group.
Giving specific direction, defining expectations, and assigning tasks to groups
or individuals.
107
Focusing on the tasks at hand, and letting the ends justify the means.
4. Which of the following is NOT correct regarding the attribution theory of

leadership?
People will try to understand why people do what they do.
People make assumptions as to why other people act in certain ways.
Assumptions about others' behavior are generally wrong.
A person's perspective is the foundation of the attribution theory of leadership.
Individuals interpret events or happenings around them, and this relates to

their thinking and behavior.
5. In the situational leadership model, which style would be appropriate

with followers who have the skills, ability and confidence to perform the
work?
Delegating
Participating
Selling
Telling
What I Have Learned
Leadership is the process of inspiring and influencing a group of people to

achieve a common goal
Communication is the exchange of information and understanding
Verbal communication refers to oral and written communication
Non-verbal communication refers to communication through body
movements, gestures, facial expressions, eye contact or body contact.
Organizational change is any situation of people, structure or technology in
organizations brought by external or internal forces which they encounter
Organizational diversity – the host of individual differences that make people
in organizations different from and similar to each other.
Culture is a set of beliefs and values about how a community should act and
do things
Organizational culture is a set of shared values and norms/standards for
behavior and expectations that influence the interaction of organization members
in order to achieve their set mission, vision, goals and objectives.
108
What I Can Do
Multiple Choice Quiz

General Direction: Shade the circle that corresponds to your answer.
1. You're a member of a work group with 3 other individuals. Three new

members are added to your group. The addition of these new members will
likely affect the group in which of the following ways?
a. Complexity of decision making is increased

b. Scheduling meetings will be easier because there are more
members to give input on the best time to meet
c. Less time will be needed to make decisions
d. all of the above
2. Joshua, a member of your dorm council, has been a very disruptive group
member-- speaking out of turn, dominating discussions, making
inappropriate remarks, and quarreling with other council members. What
steps should be taken to deal effectively with Joshua?
a. Confront Joshua about his disruptive behavior after the council

meeting
b. Expel Joshua from the council
c. Continue to allow Joshua to dominate conversation so he will
run out of steam
d. Challenge Joshua on every point he makes so he will realize
that he can't bully the council
3. Sarah is a devil's advocate. During group discussions she
a. attempts to convert group members to a pet cause or viewpoint

b. tries to motivate the group to be productive
c. monopolizes discussion and prevents others from expressing
their points of view
d. gently challenges prevailing viewpoints in a group to test and
evaluate their strength
4. In an 8 person group the possible number of relationships is
a. 186
b. 441
c. 1056
d. 11324
5. Which of the following is not a valid conclusions based on research about

the situational perspective on leadership effectiveness?
109
a. No single style of leadership will be effective in all situations
b. When the readiness level of followers is low, the participating
and delegating styles are most appropriate
c. Using the telling style with an able and talented worker will
seem like micromanaging and is likely to produce resentment
d. When the readiness level of followers is high, the participating
and delegating styles are most appropriate
6. Communication competence and leadership effectiveness interrelate in

which of the following ways?
a. the We-Not Me orientation of the communication competence

model is crucial for leadership effectiveness
b. the most effective leaders are those who put aside their ego
needs in favor of the group's goal
c. effective leaders try to empower group members and try not to
stand out as dominant and deserving of adoration
d. all of the above
7. The situational leadership perspective includes which of the following

leadership styles?
a. delegating
b. readiness
c. maturity
d. laissez-faire
8. Which of the following is not informal types of roles in small groups?
a. disruptive roles
b. explicit roles
c. maintenance roles
d. task roles
9. Pete plays the harmonizer-tension reliever role during group discussion on

an issue that provokes strong disagreement among members. As a
harmonizer-tension reliever, Pete
a. engages in horseplay and diverts attention from the group task

b. clarifies ideas for the group
c. maintains the peace; uses gentle humor
d. gently challenges prevailing points of view in the group
10. A group
a. is composed of no fewer than three individuals

b. is still a group even if members are primarily interested in
individual accomplishment while in the group
c. has no common purpose
d. cannot be successful in a highly individualist culture
110
Assessment
Multiple Choice. Choose the letter of the best answer.

1. The Great Man theory is associated with which of the following approaches to
studying leadership?
a. Skills
b. Intelligences
c. Styles
d. traits
2. According to Northouse (2007), which of the following sets of five traits are
recognized widely to be major leadership traits?
a. perseverance, resilience, integrity, empathy, masculinity

b. intelligence, resilience, determination, integrity, extroversion
c. intelligence, self-confidence, determination, integrity, sociability
d. extroversion, intelligence, self-confidence, integrity, resilience
3. What are the three core elements of Adair’s Action-Centered Leadership Model?
a. People, task, leader

b. Task, team, individual
c. Follower, leader, task
d. Team, task, leader
4. Oshagbemi and Gill (2004) provide evidence to suggest that different leadership
styles are needed across different hierarchical levels. Which of the following
styles was found to remain equally important and used across lower, middle
and senior managerial levels?
a. Delegative
b. Directive
c. Participative
d. Consultative
5. According to Katz (1974), what are the three core skills required from managers
at different hierarchical levels?
a. Technical, human, conceptual

b. Human, cognitive, technical
c. Cognitive, conceptual, technical
d. Economic, technical, conceptual
6. Which types of leadership remains underexplored through research?
a. Leadership of teams
b. Leadership in organizations
c. Leadership of organizations
d. Leadership at executive level
111
7. According to Gill (2006), what are the four key intelligences needed by a leader?
a. Emotional, ethical, cognitive, spiritual

b. Cognitive, spiritual, emotional, moral
c. Moral, ethical, cognitive, spiritual
d. Cognitive, emotional, ethical, technical
8. According to Schein’s (2004) model of culture, what is the manifestation – and

hence observable aspect – of a group’s culture?
a. Values
b. Basic assumptions
c. Beliefs
d. Artefacts
9. A culture is usually recognized to be .
a. Fixed
b. Stable
c. Evolving
d. Stagnant
10. There are divergent views on whether a culture is manageable. Which of

the following views of culture assumes that it is manageable?
a. Culture as a variable
b. Culture as a shared sense of belonging
c. Culture as a root metaphor
d. Culture as a rulebook
11. Focusing on the symbolic nature of culture encourages us to see

leadership as a symbolic activity. Seen through this lens, what is the key
focus of leaders?
a. Being role models

b. Monitoring and rewarding
c. Sense-making and meaning-making
d. Creating and maintaining rituals
12. Which other leadership theory has been drawn on to explain and explore
the key role of leaders within a group’s culture and specifically in relation to
the group’s shared sense of belonging?
a. Implicit leadership theory

b. Path-goal theory
c. Leader-member exchange theory
d. Social identity theory
13. Which of the following is NOT a characteristic of etic cultural research?
a. Studying cultural characteristics across cultures

b. Studying culture and leadership through the lens of natives
c. Find universal leadership behaviors
d. Compare effectiveness of leadership styles across cultures
112
14. Which of the following leadership theories has been most frequently
used as a theoretical framework in cross-cultural leadership research?
a. Implicit leadership theory

b. Path-goal theory
c. Leader-member exchange theory
d. Social identity theory
15. Which of the following is NOT a critique of cross-cultural

leadership research?
a. Overly complex conceptualization of culture and leadership
b. Misrepresentations of local cultures and perpetuation of stereotypes
c. False assumption of representative sampling
d. Treatment of language as a neutral tool
General Direction:
Read the following situations thoroughly. Shade the circle that best fit your
answer.
1. Anne coaches girls soccer. This season she is working with teams from two
different age groups, one team is for 8-9 year old girls, and the other is for 14-
16 year old girls. How can Anne apply situational leadership based on the
capacity of the followers?
Anne could keep her game strategies simpler during the early part of the
season when the teams are still learning.
Anne could defer to her assistant coach in areas where she has less
experience.
Anne could provide more specific instruction to the girls on the younger
team.
Anne could arrange her practice schedule to take advantage of the cooler
weather later in the evening.
113
2. Mike coaches boys baseball. During practice, Mike spends a lot of time
working with each of the boys on specific baseball skills. On game day,
however, Mike becomes very directive, giving rapid instructions to the boys.
This is an example of situational leadership based on the _ .
situation
capacity of the followers
capacity of the leader
institution
.
you.
114
References
Doris Schedlitz and Gareth Edwards. Studying Leadership: Traditional and

Critical Approaches”
Helena Ma. F. Cabrera, Anthony DC. Altarejos, Riaz Benjamin and Clarence
Darro B. Del Castillo. Örganization and Management”. P 84-100. Vibal Group
Inc. 2016
Hersey-Blanchard. “Model of Situational Leadership”
http://www.globalcup.com
http://www.quizizz.com
http://www.study.com
http://www.study.sagepub.com
Development Team of the Module
Writer: LUCIO B. GOMEZ – MT-I, San Matias High School

Editor: JANE P. VALENCIA, EdD – EPS – Mathematics
Reviewer: JANE P. VALENCIA, EdD – EPS – Mathematics
JONER G. MAGLALANG – MT-I Sta. Maria High School Macabebe
Illustrator: Layout
Artist: Language
Reviewer:
Management Team
ZENIA G. MOSTOLES, EdD, CESO V, Schools Division Superintendent

LEONARDO C. CANLAS, EdD, CESE. Asst. Schools Division Superintendent
ROWENA T. QUIAMBAO, CESE, Asst. Schools Division Superintendent
CELIA R. LACNALALE, PhD, CID Chief
JANE P. VALENCIA, EdD, Education Program Supervisor, Mathematics
JUNE E. CUNANAN, Education Program Supervisor/ Language Editor
RUBY M. JIMENEZ, PhD., Education Program Supervisor, LRMDS
115
Senior High School

Quarter II
Module 14
Different Controlling Methods and
Techniques
Writer:
CANDIDA M. FONACIER SST
II Caduang Tete National HC,
Macabebe
Editors:
CHAIRMAN
-I
116
What I Need to Know
the subject Organization and Management. The scope of this module permits it
to be used in many different learning situations. The language used recognizes the
The module contained this lesson: Different Controlling Methods and Techniques

1. Define controlling;
2. Discuss the control process;
3. Distinguish control methods and technique
4. Apply different control methods and techniques in accounting and
marketing
117
What I Know
Exploring Student’s Prior Knowledge
Direction: Choose the letter of the correct answer. Write the letter that corresponds
to your answer on a separate sheet of paper.
1. In what order do typically managers perform the managerial functions

a. Organizing, planning, controlling , leading
b. Organizing, leading, planning, controlling
c. Planning, organizing, leading, controlling
d. Planning, leading, organizing, controlling
2. What management function is performed when managers uses standards to
assess performance and then take corrective actions?
a. Planning
b. Organizing
c. Leading
d. Controlling
3. What is the first step in the control process?
a. Comparing actual performance with standards
b. Establishing standards
c. Measuring and reporting actual performance
d. Taking actions
4. Control function of management cannot performed without
a. Planning
b. Organizing
c. Leading
d. Controlling
5. Which of the following management functions are closely related?
a. Planning and organizing
b. Staffing and controlling
c. Planning and Controlling
d. Planning and staffing
6. Establishing standards, measuring and reporting actual performance,
comparing actual performance with standards and taking corrective actions
are the steps included in the process of
a. Planning
b. Organizing
c. Leading
d. Controlling
118
7. Which financial ratios test the organizations ability to pay short term
obligation?
a. Liquidity
b. Solvency
c. Activity
d. Profitability
8. Which of the following control methods prevent anticipated problem before it
happen?
a. Feedforward control
b. Feedback control
c. Concurrent Control
d. Budgetary Control
9. Which of the following control technique in which all operations are
planned in advance in the form of budgets and actual results are
compared with budgetary standards?
a. Audit
b. Budget Control
c. Financial Ratio
d. Feedforward Control
10.Concurrent control occurs when .
a. After the performance
b. During the performance
c. Before the performance
d. Anytime
11.Which financial ratios test to determine if the organization is carrying more
inventory than what it needs?
a. Profitability
b. Leverage
c. Activity
d. Liquidity
12.Which control methods that take place after an activity is done?
a. Concurrent
b. Feedforward
c. Budget Control
d. Feedback
13.What is a formal record of the financial activities of an entity?
a. Financial statement
b. Financial Budget
c. Financial Report
d. Financial System
14.Which control tool is used for identifying and measuring specific
performance gaps and areas for improvement?
a. Budget control
b. Benchmarking
c. Financial Control
d. Financial Ratios
119
15.Which among the steps in the control process where managers may correct
deviations?
a. Comparing actual performance with standards
b. Establishing standards
c. Measuring and reporting actual performance
d. Taking actions
120
Lesson: Different Controlling Methods and
Techniques
As you go through with this lesson, think of this question: What is control? Why
do you need to control? What are the different controlling methods and techniques?
How this methods and techniques will help you to achieve your goals?
What’s In
Not es t o t h e T eacher
The teacher must take into considerations the essential skills
needed in the development of this competency including the
background knowledge which may reinforce learning. This
module will help the learners link the gap of learning to achieve
mastery of the lesson
After strategies are set and plans are made, management’s primary task is to take
steps to ensure that these plans are carried out or if on a certain condition the
plans are to be modified. This is the point where function of controlling is being
carried out. And since management involves leading the activities of others, a major
part of the control function is making sure other people do what should be done.
Let’s have the story of the family of Lilian and Frank Gilbreth who were both
scientific management advocate. Having twelve children is not easy since, learn
how they control different situation and apply efficiency method at home who
believes a family can be run just like a factory.
Learn from Cheaper by The Dozen (Lilian and Frank Gilbreth)
Cheaper by the Dozen is a story about Gilbreth family, a family with a dozen
children. The parents Lilian and Frank manage to take care of their twelve kids
while instilling them with moral values through their family’s adventures. Frank
and Lillian are professional time management and efficiency experts, and they use
their knowledge and skills to run the household with efficiency in order to avoid
chaos. Charts are posted in various rooms to ensure the children complete and
121
mark off their personal chores each day such as digging up tree trunks or burning
leaves, and once accomplished they got awarded.
As happens in most families, the oldest children are put in charge of the youngest.
While Frank acts as the self-assumed leader of the family, the children recognize
that their mother Lillian, who also works professionally as a psychologist, is the
driving force behind the family. Mother never threatened, never shouted or became
excited, never spanked a single one of her children or anyone else.
As the children grow, they are taught to behave differently from children in smaller
households. For example, they all have to come running when the father whistles.
While this might seem autocratic, Frank made it a game and to place them quietly
upon assembly.
Schooling is also emphasized, both in the home and in educational institutions.

Frank is very creative in ways he can help his children learn about the world from a
very young age. He is always pushing the children to advance academically, staying
ahead of their peers. Frank does this by surrounding the children with educational
games and by creating learning opportunities for them. He is also very involved in
their school life, even going in to sit in on classes unexpectedly.
1. What does the story tells you?
2. Reflect on how the Gilbreth family runs their household.
What’s New
Let us make ourselves ready as we exercise our brain with this activity.
Control System at XYZ Company
XYZ Company is a large company engaged in assembling of air-conditioners.

Recently the company had conducted the ‘Time’ and ‘Motion’ study of their 100
workers in the assembly line. It was concluded that on an average, a worker can
assemble ten air-conditioners in a day. The target volume of the company in a day
is assembling of 1,000 units of air-conditioners. The company is providing
attractive allowances to reduce employee’s turnover and absenteeism. All the
workers are happy. Even then the assembling of air-conditioners per day is 800
units only. To find out the reason, the company compared actual performance of
each worker and observed through CCTV that some of the workers were busy in
122
gossiping. Immediately corrective actions have been taken by the management and
decided to redesign job to avoid employee gossiping.
1. What management function is discussed above?
2. What are the different steps taken by the management of XYZ Company
which is related to management function described above?
What is It
Controlling Defined
Controlling is a management function involves ensuring the work performance of

the organizations members are aligned with the organizations values and standards
through monitoring, comparing, and correcting their actions.
Why we need to Control?
To ensure that activities are completed in ways that lead to accomplishment of

organizational goals.
What are the Steps in the Control Process?
Control process involves the following steps shown in the figure.
Measuring and Comparing actual

Establishing Taking
reporting performance with actions
Standards
actual standards
Feedback
123
Establishing standards - This means setting up of the target which needs to be
achieved to meet organisational goals eventually. Standards indicate the criteria of
performance such as sales, unit produced and cost.
Measuring and reporting actual performance-The actual performance of the

employee is measured against the target. These include personal observation,
statistical reports, oral reports and written report.
Comparing the actual performance with standards- Determining the degree of

variation between actual performance and the standard.
Taking actions- involves the correction of deviations from the set standards.
Managers may correct deviations by modifying their plans, by improving the
training of employees, by firing inefficient subordinates, or by practicing more
effective leadership techniques.
Relationship between planning and controlling
Relationship between planning and control can be understood as follows:
Action
Planning Controlling
Process
1. Planning identifies actions and controlling ensures that actions are carried out.
2. Poor control system is followed by failure of plans and effective control system
reinforces the plans.
3. Controlling helps in revising or reframing the plans.
Types of Control
a. Feedforward control
b. Concurrent control
c. Feedback control
Feed forward Control-A control that prevents anticipated problems before actual
occurrence of the problems
124
Concurrent Control-A control that takes place while the monitored activity is in
progress
Feedback Control-A control that takes place after an activity is done.
Example control measures for employee Theft or Fraud
Feedforward Concurrent Feedback
Careful pre-hiring Openly communicate the Use the services of

screening cost of stealing professional investigator
Establish specific Use video surveillance if Redesign control

policies defining theft condition necessary measures.
and fraud and discipline
procedures
Financial Control
Financial control is the control of financial resources as they flow into the
organization, are held by the organization and flow out of the organization.
a. Budgetary Control
b. Ratio Analysis
A. Budgetary Control
Budgetary control is a technique of managerial control in which all operations are

planned in advance in the form of budgets and actual results are compared with
budgetary standards. Types of budget include cash flow or cash budget, capital
expenditure budget, sales budget, expenses budget, profit budget and production
budget.
Purpose of Budget
1. Helps managers coordinate resources and activity.

2. Helps define the established standards for control
3. Provide guidelines about the organization’s resources and expectations.
4. Enable the organization to evaluate the performance of managers and
organizational units.
B. Ratio Analysis refers to analysis of financial statements through

computation of ratios.
125
Objectives of Ratio Analysis
1. Standardized financial information for comparison

2. Evaluate current operations
3. Compare current performance with past performance
4. Study the efficiency of operations.
5. Study the risk of operations
Financial Statements represent a formal record of the financial activities of an

entity. These are written reports that quantify the financial strength, performance
and liquidity of a company.
Two statements for ratio analysis
1. Statement of Financial Position also known as the Balance Sheet presents

the financial position of an entity at a given date. It is comprised of the
following three elements: asset- something a business owns, liabilities-
something a business owes to someone, and owner’s equity or capital.
2. Income Statement, also known as the Profit and Loss Statement, reports
the company's financial performance in terms of net profit or loss over a
specified period. Income Statement is composed of income and expenses.
Financial Ratios
Objective Ratio Calculation Meaning
Liquidity Current ratio Test the organizations

ability to meet short
term obligations. A
higher ratio is better
because it shows ability
to pay current
obligations.
Acid test Ratio Test liquidity more

accurately when
inventories turnover
slowly or difficult to
sell. The higher ratio
the better.
Leverage Debt Ratio Measure organizations

ability to sustain
operation indefinitely.
A lower debt ratio is

more favourable than a
126
higher debt ratio
because it calculate
total liabilities as a
percentage of total asset
Activity Inventory Test to determine if the

Turnover organization is carrying
more inventory than
what it needs, the
higher the ratio the
more efficiently
inventory assets are
being used.
Profitability Profit margin Measures how much

Ratio profits are produced at
a certain level of sales.
Profit margin ratio

measures how well a
company manages its
expenses relative to its
net sales. That is why
companies strive to
achieve higher ratios.
Return on Measure the efficiency

investment of assets to generate
Ratio profits, a higher ratio is
more favourable
because it shows that
the business is more
effectively managing its
assets to produce
greater amounts of net
profit
Benchmarking for Best Practices
Benchmarking is an approach of measuring a company’s own services and

practices against those of recognized leaders in the industry in order to identify
areas of improvements.
A control tool for identifying and measuring specific performance gaps and
areas for improvement.
Benchmark: the standard excellence against which to measure and compare.
127
What’s More
Activity 1: XYZ Control Process
Based from the control system of XYZ Company identify the proper step in their
control process:
1. Establish standards :
2. Measure actual performance:
3. Compare actual performance with standards:
4. Taking actions :
Assessment 1: Steps in the Control Process
Identify the steps of controlling process applicable in the following cases:
1. Ella manager of Halika Food Products is observing the quality of their special
Ham. She realises that there is no need for any action to be taken as long as
variances are within the acceptable limits. A day later when she comes to
work she finds the situation opposite to that of the previous day. This time
variance was beyond the acceptable range and needed immediate action.
She called her employees and told them that this should not happen again.
2. In a garments company the manager is trying to find out the deviation
between the actual number of jeans produced and the desired number. He
already knows about the standard as the company has assigned him a
definite quantity of jeans to be produced.
3. Juan Dela Cruz wants to run his business in a different manner. He wants
to set standards to be achieved in both qualitative as well as quantitative
terms. He wants to judge the motivation, skill levels and satisfaction of the
employees. All these things will require qualitative standards. On the other
hand the company will have to set quantitative standards for the number of
units produced.
4. Liza prepares performance report of her sales representatives for the month
of May. She gathers all the necessary information to measure performance
like the number of unit sold as well as the market share of the product in
the market.
5. The manager of ABC fries and drinks notice some variances on their
collection day by day. The management decided to install CCTV camera to
monitor the activity of the store. Upon observation on the actual CCTV
footage they find out that there is a fraud commit by the cashier. Immediate
128
the manager call the attention of the concern personnel and corresponding
sanction imposed.
Activity 2: Name the Controlling Methods and Techniques
Direction: Identify what controlling method and technique is being described

below.
1. It is a technique of managerial control in which all operations are planned in

advance in the form of budgets and actual results are compared with
budgetary standards.
2. It is a control that takes place after an activity is done.
3. It is control that prevents anticipated problems before actual occurrence of
the problems.
4. It is the control of financial resources as they flow into the organization, are
held by the organization and flow out of the organization.
5. It is a control tool for identifying and measuring specific performance gaps

and areas for improvement.
6. It is a control that takes place while the monitored activity is in progress
7. This financial ratio is computed by dividing total debt to total assets.
8. It is a financial ratio that identifies the profits that various products are
generating.
9. This financial ratio is computed by dividing current asset to current
liabilities.
10. This refers to analysis of financial statements through computation of
ratios. _.
Assessment 2: Applying Controlling Methods and Techniques
Identify what controlling method or technique will be applicable in the following

cases. Justify your answer.
1. Mr. Guzman is working at M. Trading as a manager. He has created an

atmosphere of proper controlling in his department. In order to do so he
keeps himself aware about any dishonest behavior and takes an urgent
action immediately. Recently he has installed CCTV cameras to keep
awareness on the employees.
2. Good Angel souvenir sells shirts and different memorabilia to local tourist in
Baguio City own and manage by Mia Miguel. Good Angel plans to open
additional branch and decided to apply for a short term loan. Mia analyses
its financial statement to be able to know if loan will be granted. According
129
to her balance sheet she has 100,000 of current liabilities and 200,000 of
current assets.
3. AA Bakeshop is a business known for delicious cheese bread. The
automated system of baking ensures uniformity in processing, production
and quality assurance. The management team always conducted an actual
performance observation on their employee’s productivity and how efficiently
employees do their work. By doing this practice management believe that if
problem occur during actual observation correct it immediately.
4. Dindi’s Fastfood a small business of hamburger and fries, study the drive-
thru practices of their key competitors in order to adopt speedy and
accurate service to maximize efficiency, cut costs, and increase
profits,. Their competitors have consistent innovation on their drive-thru
operations such as number of windows, menu, and ordering approaches.
5. Canlas Motor Shop is store that selling parts and accessories for motorcycle
to the public. Last year Canlas had the best year in sales she has ever had
since she opened the business 3 years ago. Last year total sales were
1,000,000 and his net income after tax was 200,000. Mr. Canlas try to
determine the profits that various products can generate.
Activity 3: Let’s Compute Financial Ratio
1. Compute the liquidity ratio of Good Angel Souvenir store. It has 100,000
current liabilities and 200,000 current assets.
2. What will be the return on investment if a jewellery store net profit after tax
is 600,000 and its total assets is 3,000,000?
3. Compute the profit margin ratio of Mr. Canlas Motor Shop having total sales
of 1,000,000 net profit after tax of 300,000.
4. What will be the debt ratio of a fast food chain if it has total assets of
1,000,000 and total liabilities of 250,000?
5. During the year Danny Furniture reported a total cost of goods sold of
2,000,000 with an average of 1,000,000 worth of inventory. Compute the
inventory turnover of Danny Furniture.
Assessment 3: Financial Ratio Analysis
Compare the two business organizations who were both the leading native kakanin
store I one of the town in Pampanga. Determined which among the two is more
favourable in terms of financial ratios. Justify your answer
130
Particular Aling Pasing Aling Meding More Favourable
1. Liquidity ratio 1.45 1.75
2. Quick ratio 1.20 1.50
3. Profit margin ratio .20 or 20% .15 or 15%
4. Debt Ratio .45 or 45% .33 or 33%
5. Inventory turnover 3 2
What I Have Learned
FOCUS POINTS
Fill the spaces with correct word or phrases on the discussion about controlling
functions of management.
Controlling is a management function involves
The control process involves four steps which include
Relationship between planning and controlling can be understood as:
Types of control are:
Financial Control includes :
Benchmarking is a control tool :
131
What I Can Do
Having the knowledge on different controlling methods and techniques, let’s

help My Phone to solve the problem that they are experiencing by answering the
questions below.
My Phone is manufacturing mobile phones in the country. It had enjoyed a

substantial market share and also had a loyal customer following. But lately it has
been experiencing problems because its targets have not been met with regard to
sales and customer satisfaction. Also mobile market has grown tremendously and
new players have come with better technology and pricing. This is causing
problems for the company. It is planning to revise its controlling system and take
other steps necessary to remedy the problems it is facing.
Questions
1. Identify the benefits of the company derive from a good control system.
2. How can the company relate its planning with control in this line of business
to ensure that its plans are actually implemented and targets attained.
3. Give the steps in the control process that the company should follow to
remove the problems it is facing.
4. What techniques of control can the company use? In all the answers keep in
mind the sector of business the company is in.
Congratulations! You are now ready for an assessment.
132
Assessment
Directions: Choose the letter of the correct answer. Write the letter that
corresponds to your answer on a separate sheet of paper.
1. Miguel a manager of MotorSiklo, has established a monthly sales target

for his sales team. Which management functions best described Miguel
action?
a. Planning c. Staffing
b. Controlling d. leading
2. What is the best explanation for profitability ratio?
a. It measure the capacity of business to generate profit
b. It measures profit
c. It measure success
d. It measures data to perform calculation
3. Which of the following would be an example of a feedforward control by a
school?
a. Having students fill out evaluation forms about their teacher at the
end of the school year
b. Having a students take a standardized admission test
c. Issuing final grades at the end of the school year
d. Having the principal monitor the teacher performance by sitting on a
class discussion
4. You are working as a bookkeeper on a grocery store. The owner is trying
to implement control to deal with theft. You have been ask to provide the
sales and inventory figure for the month so he can determine whether the
controls they put have been effective. Once you provide them the data, what
is the next step in the control process?
a. Establishing standards
b. Measuring and reporting actual performance
c. Comparing actual performance with standards
d. Taking actions
5. Mr. Morato a sales manager of agricultural supplies sets target sales for
three months. Three months after the target sales are implemented; the
manager reviews the results to see whether the goal was achieved. Which
type of control is being implemented?
a. Feedback c. Feedforward
b. Concurrent d. Proactive
6. Which of the following statements is TRUE as it relates to the analysis of
the debt ratio?
a. The lower the ratio, the more debts the business owns as percent of
asset
133
b. The higher the ratio, the more debts the business owns as percent of
asset
c. The higher the ratio, the less capital the business own
d. The lower the ratio the more profit the company have.
7. Which of the following is the right formula for acid test ratio?
a. c.
b. d.
8. A company has current liabilities of 300,000 and a current asset of
600,000. What is its current ratio?
a. 1 b. 2 c. 3 d.4
9. Jenny manages 5 sales representatives that have missed their sales
target for the past two months. After reviewing each sales representative’s
performance record, Jenny adjusted the sales target to take additional
control measures into consideration. Why is this example of controlling?
a. Because somebody will get fired as a result of this analysis
b. Because Jenny acted as a leader
c. Because Jenny is managing his staff
d. Because Jenny looked at results and took appropriate action.
10. Your fast food business is trying to determine how competitive it is in
the market. Fast food A is just as good as your business, while Fast food
B is a much larger fastfood that can be considered as a leader in the
business considering its high revenue and sales. Which business should
you compare your business with in the case of best practices
benchmarking?
a. Fast food A because they are good as your business
b. Fast food B because you want to compare to the leader in the
business
c. Fast food B because in benchmarking, you should always compare
your business with the highest revenue and sales
d. Fast food A because if you compare your business of a similar size,
it is easy to detect the difference.
134
Let’s do this
1. Interview your parents or guardian regarding their preferred child

discipline control. Explain the similarities or differences in their methods.
2. Prepare your one week budget at home with the following format.
Seek assistance from any member of the family in charge for your
weekly budget and answer the questions that follow.
Category Weekly budget Actual Amount Difference
Income
Less: Expenses
Total
What did you realized on your weekly budget?
Does your weekly budget enough to cover the actual amount?
What do you do if ever there is a difference on the actual and

budgeted amount?
What are the different ways or methods on your budgetary control at

home?
135
136

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Senior High School

1. Analyze the nature of organizations and types of organization structures.

Exploring your Prior Knowledge about organization theories towards effective

1. It is usually represented with organizational charts and with position descriptions.

2. It pertains to the usual or old-fashioned ways of structure.

3. The following are an example of Traditional Organization except .

4. The following are an example of Modern Organization except:

5. It refers to the contemporary design theories.

7. The following are the advantages of a simple organizational design except _.

9. Teamwork and cooperation are two essential factors for an organization’s

What’s In Notes to the Teacher

Organizational Design is the process of aligning an organization’s structure

So they work independently

Source: https://www.greycampus.com/blog/project-management/common-types-of-organizational-structures-in-project-managementteam-network.html This type of organization is

- Have chain stores with subsidiaries, and

Modern organizational design theories include:

Matrix design refers to an organization design where specialists from different

Simple Organizational Design

Line & Staff Organizational Design

Divisional Organizational Design

What I Have Learned

1. What is the importance of having a right organizational design in a company?

1. Analyze the nature of organizations and types of organization structures.

1. It is an arrangement of people in an organization.

2. The organizing function of managers involves:

4. In a functional structure, communication generally occurs within each functional

5. It is the type of organization used when a company has purchasing departments

7. This organization structure violates the unity of command principle because of

8. It is a collection of independent, mostly single function enterprises that

9. A good organizational structure is _ for the expansion of business

10. One disadvantage of a functional structure is that:

Short Case for Discussion

Organization is a mechanism or structure which helps the activities to be

Differentiation in organization involves division of labor and specialization

MAJOR CHARACTERISTICS OF ORGANIZATION

PEOPLE STRUCTURE GOAL

The organizing process should result in a well-defined structure so that

An organization structure is a system made up of tasks to be accomplished, work

1) Vertical Structure – According to Bateman and Snell (2008), a vertical structure

1. E A N D S L M E P I T N R E T → It deals directly with the firm’s primary goods

2. S M E S N P A T A T R T F F D → It support the activities of the line departments

3. A P N A L F P R O T U A C H I N O C → It is where the subdivisions are formed

4. D A P P I V R I S O A I O C N H A L → It is where departments are formed based

5. A P P M A R O A X C T H R I → It is a hybrid form of departmentalization where

Summarize how authority operates in the different types of organizational structure.

What I Have Learned

1. Why is it important to have a structure within organization?

Make an Interview on one of your family members who work in a company.

Organization and Management

The module consists of one lesson,

After going through this module, you are expected

1. It is the process of identifying, attracting, hiring, and retaining people with

2. Its objective is to train and develop the existing personnel for

4. The financial and non-financial incentives which allow organizational workforce

6. The entity of an organization which main role if to execute appropriate staffing,

8. It refers to the reassignment of a higher level job to an internal employee with

14.The following are the functions of staffing EXCEPT:

Nature of Organizing Job Description Job Specification

Grouping tasks into