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The chapter "Organising" in CBSE Class 12 Business Studies delves into the structure and process of organizing within an organization. Organising is the process of defining and grouping activities and establishing authority relationships among them to achieve organizational goals effectively.

Introduction

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.

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Questions and Answers for CBSE Class 12 Business Studies Chapter: Organising

Q1. What is organising? ANS: Organising is the process of defining and grouping activities, establishing authority relationships, and allocating resources to achieve organizational goals.

Q2. What are the steps involved in the organising process? ANS: The steps include identification and division of work, departmentalisation, assignment of duties, and establishing reporting relationships.

Q3. Why is organising important in an organization? ANS: Organising is important because it establishes clarity in working relationships, ensures optimum utilization of resources, helps in adapting to change, facilitates effective administration, and supports expansion and growth.

Q4. Describe the functional structure. ANS: A functional structure groups jobs of similar nature under functional departments like production, marketing, finance, etc., enhancing specialization and efficiency.

Q5. What are the advantages of a divisional structure? ANS: Advantages include a focus on results, flexibility, and ease in adding new products or markets.

Q6. Explain the difference between formal and informal organization. ANS: A formal organization is a deliberate and systematic grouping of activities with a defined structure of authority relationships, while an informal organization is a network of personal and social relationships arising spontaneously among people.

Q7. What is delegation of authority? ANS: Delegation of authority involves entrusting responsibility and authority to subordinates and creating accountability for performance.

Q8. How does delegation benefit an organization? ANS: Delegation benefits an organization by promoting effective management, employee development, and motivation.

Q9. Define decentralization. ANS: Decentralization is the systematic delegation of authority at all levels of management and in all departments.

Q10. What is the significance of decentralization? ANS: Decentralization is significant because it develops initiative among subordinates, promotes motivation, facilitates growth, and improves decision-making.

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