Learning Activity Sheet

Organization and Management

Quarter 2 – Week 3
A. Application of Organization Theories
B. Concept and Nature of Staffing

MELC: A. Apply organization theories for effective business management (ABM_AOM11-Ia-b-3).

B. Discuss the concept and nature of staffing (ABM_AOM11-Ia-b-3).

A. Organization Theories and their Applications

I. TRADITIONAL THEORIES
Traditional refers to the old and conventional way of doing things. In this context, these are the old-fashioned
way of designing the organization. Traditional theories include simple, functional, and divisional organizational
designs.

Simple Design
This organizational design is the most basic and is often used by business and firms which are just starting
out, thus it only has a few departments and each department has a number of subordinates reporting to a manager. In
this design, a manager has a wider span of control and is the central authority figure in the organization. In most cases,
the owner is also the manager, and controls most of the undertakings in the business. Since there are less number of
employees, they tend to perform multiple functions.
Shown in the table below are the advantages and disadvantages to consider if a manager would decide to use
this design.

Functional Design
In this design, departmentalization is the key, as related specialties or similar units are grouped together. The
departmentalization or grouping of work units may be based on the activities to be performed, skill or level of
expertise, the resources available, product or service offered and even the types of customers.
The table below tells about the advantages and disadvantages of using this design.

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Divisional Design
This design is usually used when the organization offers a variety of product lines or services. Each division is
independent and is being led by a top level manager, usually a vice president of the company. It has its autonomy to
conduct, has its own budget and marketing strategies.
Just like the other designs, it also has its own set of advantages and disadvantages.

II. MODERN THEORIES

Modern refers to the new and contemporary way of doing things. In this context, these are the new ways of
designing the organization. Modern theories include team design, matrix-project design, and boundary-less
organizational designs.

Team Design 2
This is an organizational design where the organization is comprised of various teams, each doing its part
which leads toward the achievement of a common goal. These teams carry on the task of accomplishing specific
projects with timeline to meet and specific goals to be achieved. The members of each team are valued regardless of
how big or small their assigned tasks may be. They are afforded with the freedom to decide and exercise autonomy
even without managerial approval, for as long as they achieve their targets, as they do not have supervisors.
The following are the advantages and disadvantages of this design.
Matrix-Project Design
The organizations sometimes venture into a project which requires the specialization or expertise of
employees from the various units or departments. These experts are grouped together to work on the realization of that
particular undertaking. They then have two superiors, thus, the presence of a double-chain of command: one from
their area manager and another from the project manager. These two will share authority over them as they work on
the project.
The following are the pros and cons that go along this design:

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Boundary-less Design
We have learned that an organization has vertical and horizontal structures that define the levels of authority,
the chain of command and communication pathways. The boundary-less design however, does not have a structure as
there is no departmentalization and no boundaries that set the organization and its employees from its customers,
suppliers, and other stakeholders, thus, information, communication and ideas are free-flowing. In this design,
flexibility, and adaptability are important criterions. This design makes use of technology to facilitate tasks which are
traditionally done like communication through the internet, virtual collaboration, and flexible working arrangements.
Employees may work across various countries or geographical locations with varying cultures, thus, a deep
commitment to work towards the organization’s goals and a strong set of core values is required for this design to
work.

Performance Task:
Direction: On a whole sheet of paper, copy the diagram below. Fill the boxes with the
required information.

Below are the Rubrics for your

work:

Content 15
Organization 10
Neatness 5
Total 30 Points
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B. The Nature of Staffing
Staffing is one of the functions of a manager where he/she attracts, selects, hires and maintains a number of
employees needed for a particular job. It is a function that makes sure that the positions in the organization are filled
with the qualified individuals who are chosen from among the pool of applicants.

It involves a procedure following an eight-step process. The table below illustrates the staffing procedure.

Human Resource Planning

Human resource planning is the process of identifying the right number of
people needed to do the job at a given time and making sure that the right
kind of people are hired into the organization who will effectively and
efficiently perform the tasks assigned to them.
It begins with conducting a human resource inventory where the current
capacity of company in terms of manpower is being accounted for. It is also
being done in anticipation of future vacancies due to expansion, transfer,
promotion, retirement or separation of employees.
The inventory maintains information about the employees’ name, education,
trainings, job experiences, records of previous employment, special skills,
and even languages spoken.

Recruitment
Recruitment is the process of attracting potential employees who meet the qualifications of the job. The organization
should aim to acquire an adequate number of applicants for it to be able to have a wide variety of applicants to choose
from.
Screening is also done in this process to narrow down the pool of prospective employees based on the job
specification. A job specification spells out the credentials needed by an employee to qualify for the job as described
in the job description. Job description, on the other hand, lists down the tasks and responsibilities of a certain job.

Selection
After screening the potential employees from the pool of applicants, selection comes in. It is the process of picking the
applicants who are most suited to fill the position with utmost consideration of his/her capabilities, skills, and other
credentials.
Selection involves interview, testing, contacting the applicants’ references for background check, diagnostic interview
with prospective immediate supervisor, and medical or physical examinations.

Orientation
After hiring the employee, he/she goes through an orientation to familiarize him/her with the company’s vision,
mission, history, policies, the work environment, and culture and he/she is being introduced to his/her co-workers,
superiors and/or subordinates. It could be informal, where the employee is taken to walk around to familiarize him/her
to the facilities and introduce him/her to his/her colleagues whom he/she will meet along the way. It could also be
formal which could take days in a designated venue with formal sessions.
Training and Development
Training is not only provided to the newly hired employee but to other employees as well to enhance capabilities and
provide updates on trends, new technology, or policies and programs of the organization.

Performance Appraisal
An employee must be assessed by the manager in terms of his/her work performance, whether he/she is doing well or
whether there is a need for improvement. This is also a process to determine whether the work performance of an
employees is still aligned with the organizational goals and his outputs are contributory to the achievement of the said
goal. It is also a basis for the company to give compensation and rewards.

Employment Decision 5
After assessing the employee’s performance, the management would decide whether to retain or remove him or her.
Management decisions could range from having the employee promoted, reassigned or terminated.

Separation
Some vacancies in the organization emanate from employee’s own decision whether to resign or retire due to some
reasons like age, adaptability to situations or health.