Business Studies | Organising

Organising is a crucial function of management that involves creating a structure of roles and responsibilities within an organization. This chapter covers the following key points:

1. Definition of Organising:
   • Organising is the process of identifying and grouping work to be performed, defining and delegating authority and responsibility, and establishing relationships for the purpose of enabling people to work most effectively together in accomplishing objectives.
2. Steps in the Process of Organising:
   • Identification and Division of Work: The total work is divided into manageable activities to avoid duplication of efforts and to ensure specialization.
   • Departmentalisation: Grouping similar activities into departments, divisions, or units.
   • Assignment of Duties: Allocating tasks to different job positions.
   • Establishing Reporting Relationships: Defining the hierarchical structure of the organization to ensure coordination among various levels.
3. Importance of Organising:
   • Clarity in Working Relationships: Establishes clear lines of authority and communication.
   • Optimum Utilisation of Resources: Ensures efficient use of all resources.
   • Adaptation to Change: Helps the organization adapt to changes in the environment.
   • Effective Administration: Facilitates better management and coordination of activities.
   • Expansion and Growth: Supports the growth and expansion of the organization by providing a clear structure.
4. Types of Organizational Structures:
   • Functional Structure: Grouping of jobs of similar nature under functional departments like production, marketing, finance, etc.
   • Divisional Structure: Creation of divisions based on product lines, geographical areas, or customer groups.
5. Advantages and Disadvantages of Functional Structure:
   • Advantages: Specialization, increased efficiency, better coordination within departments, and easy supervision.
   • Disadvantages: Functional empires, difficulty in inter-departmental coordination, and limited growth of general managers.
6. Advantages and Disadvantages of Divisional Structure:
   • Advantages: Focus on results, flexibility, and ease in adding new products or markets.
   • Disadvantages: Duplication of resources, increased costs, and potential conflicts among divisions.
7. Formal and Informal Organization:
   • Formal Organization: Deliberate and systematic grouping of activities and establishing a structure of authority relationships.
   • Informal Organization: Network of personal and social relationships arising spontaneously as people associate with one another.
8. Delegation of Authority:
   • Definition: Entrusting responsibility and authority to subordinates and creating accountability for performance.
   • Elements: Authority, responsibility, and accountability.
9. Importance of Delegation:
   • Effective Management: Helps managers to manage workload effectively.
   • Employee Development: Provides opportunities for employees to develop and take on greater responsibilities.
   • Motivation: Empowers employees and increases their job satisfaction.
10. Decentralization:
    • Definition: Systematic delegation of authority at all levels of management and in all departments.
    • Importance: Develops initiative among subordinates, promotes motivation, facilitates growth, and improves decision-making.

Assignments for CBSE Class 12 Business Studies Chapter: Organising

1. Assignment 1: Create an Organizational Structure
   • Design an organizational structure for a hypothetical company, including functional and divisional structures. Describe the roles and responsibilities within each department.
2. Assignment 2: Case Study on Delegation
   • Analyze a case study where delegation of authority improved organizational efficiency. Identify the key factors that contributed to the success of the delegation process.
3. Assignment 3: Compare Formal and Informal Organizations
   • Compare the characteristics, advantages, and disadvantages of formal and informal organizations. Provide examples from real-life organizations.

Conclusion of CBSE Class 12 Business Studies Chapter: Organising

Organising is a vital management function that lays the foundation for the effective functioning of an organization. By understanding the principles and processes of organizing, businesses can establish a clear structure, enhance coordination, and achieve their objectives efficiently.