Chapter 5: Organising

Business Studies Part 1 • Class 12

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Chapter Analysis

Intermediate40 pages • English

Quick Summary

The chapter on Organising explains how this management function involves determining necessary tasks, grouping them into departments, and assigning authority amongst employees. It emphasizes the importance of an organisational structure, which can be functional or divisional, and how it facilitates coordination and productivity. The chapter also delves into delegation and decentralisation, highlighting their roles in empowering employees and promoting proactive decision-making.

Key Topics

  • Organisational Structure
  • Functional and Divisional Organisations
  • Delegation and its Importance
  • Decentralisation and its Effects
  • Importance of Organising
  • Formal vs. Informal Organisations

Learning Objectives

  • Explain the concept of organising.
  • Explain the process of organising.
  • Describe the importance of organising.
  • Understand the meaning, advantages, and disadvantages of functional organisational structure.
  • Distinguish between formal and informal organisations.
  • Explain the concept and importance of delegation and decentralisation.

Questions in Chapter

Identify the network of social relationships which arises spontaneously due to interaction at work.

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What does the term ‘Span of management’ refer to?

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State any two circumstances under which the functional structure will prove to be an appropriate choice.

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Draw a diagram depicting a functional structure.

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Which type of structure would you recommend for her expanded organisation and why?

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Why delegation is considered essential for effective organising?

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What is a divisional structure? Discuss its advantages and limitations.

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Additional Practice Questions

What is the role of organising in business management?

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Answer: Organising plays a crucial role in business management as it involves structuring the resources and processes to achieve business goals efficiently. It helps in the systematic allocation of jobs amongst the workforce, leading to increased productivity and clarity in working relationships.

Discuss the advantages and disadvantages of functional and divisional organisation structures.

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Answer: The functional structure promotes specialisation and efficiency through consolidated functions like HR, finance, etc. However, it may lead to poor communication and inflexibility. The divisional structure allows for flexibility and quicker decision-making by organizing based on products or regions but can increase costs due to duplication of roles.

How does decentralisation benefit an organisation?

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Answer: Decentralisation benefits an organisation by fostering decision-making at lower managerial levels, encouraging autonomy and innovation. It leads to quicker decisions, development of managerial talent, and reduces the burden on top management.

Explain the significance of delegation in an organisation.

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Answer: Delegation is significant as it empowers employees by entrusting them with authority and responsibility. It enhances employee confidence, motivation, and develops their managerial skills. It also allows managers to focus on higher-level tasks.

What are the main steps involved in organising?

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Answer: The main steps involved in organising are: identification and division of work, departmentalisation, assignment of duties, and establishing authority and reporting relationships. These steps help in the smooth functioning and coordination within an organisation.