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Chapter Hub

Organising

This chapter on Organising in Business Studies discusses the significance of effective organisation for achieving business goals, types of organisational structures, delegation, and decentralisation using Wipro as a key example.

Summary, practice, and revision
CBSE
Class 12
Business Studies
Business Studies - I

Organising

Author: Heide B. Malhotra

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More about chapter "Organising"

In the chapter 'Organising' from 'Business Studies - I' for Class 12, students explore the concept of organising, which involves structuring work within an organisation to meet strategic goals. The chapter outlines the steps involved in the organising process, including identifying and dividing work, departmentalisation, assignment of duties, and establishing authority and reporting relationships. It emphasizes the importance of clear communication and resource utilisation in adapting to a dynamic business environment. The chapter also analyzes various organisational structures such as functional and divisional setups, highlighting their advantages and disadvantages. Moreover, it discusses delegation and decentralisation, illustrating how distributing authority and empowering subordinates can lead to improved efficiency and company growth. Wipro's restructuring efforts exemplify these principles effectively.
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Organising in Business Studies - Class 12

Explore the importance of organising within business studies. This chapter delves into organisational structures, delegation, and decentralisation with real-world examples.

Organising refers to the process of defining and grouping activities and establishing authority relationships among roles in an organisation. It ensures that resources are utilised efficiently to achieve specified goals.
The steps in organising include: (1) Identification and division of work, (2) Departmentalisation, (3) Assignment of duties, and (4) Establishing authority and reporting relationships.
Organising is crucial as it leads to clarity in roles, efficient resource usage, specialization, and adaptability to changes, ensuring that an organisation can meet its objectives effectively.
Functional organisation is a structure where jobs of similar nature are grouped together under functional departments, allowing for operational efficiency and specialization in distinct areas like marketing, finance, or production.
Advantages of a functional structure include improved efficiency through specialisation, better control and coordination within departments, minimal duplication of effort, and ease of employee training within specific functional areas.
Disadvantages include potential conflicts between departments, focus on departmental goals over overall company objectives, coordination difficulties, and inflexibility in response to change.
Divisional organisation consists of separate units or divisions responsible for particular products or markets, allowing for flexibility and quicker decision-making while each division functions as a self-contained entity.
Benefits of a divisional structure include product specialisation, quicker decision-making due to autonomy, effective performance measurement for each division, and ease of expansion without disrupting existing operations.
Delegation involves transferring authority from a manager to subordinates, enabling efficient task management and allowing managers to focus on higher-priority activities while empowering employees to take responsibilities.
Decentralisation involves distributing decision-making authority throughout lower levels of management, whereas delegation refers to the assignment of authority for specific tasks or responsibilities to specific individuals.
Advantages of decentralisation include quicker decision-making, development of managerial talent, increased initiative among subordinates, and reduced burden on top management.
Formal organisation is structured by management to achieve specific tasks with defined authority and responsibility, while informal organisation arises from social interactions and relationships among employees with no official structure.
Authority defines who can give orders and make decisions within an organisation, establishing a clear hierarchy and ensuring orderly functioning as employees must know whom to report to.
Departmentalisation is the process of grouping similar jobs or functions together to ensure specialization and improve efficiency within an organization, based on criteria such as products, customers, or geography.
A business can adapt its structure by regularly reviewing and modifying its organisational design to suit the changing market dynamics, ensuring roles and responsibilities align with strategic objectives.
Span of management refers to the number of subordinates a manager can effectively supervise. A wider span often leads to less hierarchical levels and can enhance communication.
Effective organising can enhance employee motivation by providing clear roles, reducing redundancy, allowing for skill development, and fostering an environment where employees feel valued and can contribute meaningfully.
Wipro's restructuring to become more decentralised allowed it to enhance customer orientation and increase profitability by enabling each subsidiary to operate independently and respond quickly to market demands.
Challenges of decentralisation may include increased costs due to duplication of functions across divisions, potential conflicts between divisions over resource allocation, and dilution of control from top management.
Organising contributes to resource optimization by clearly defining roles and responsibilities, which helps prevent the overlapping of tasks and ensures that all resources—human, financial, and physical—are utilized to their fullest potential.
Organising is directly related to planning as it translates plans into action by structuring resources and activities in alignment with the objectives laid out in the planning phase.
Management can ensure effective coordination by establishing clear processes for communication, defining reporting relationships, and encouraging teamwork across different departments or divisions.
A functional structure provides training benefits by allowing employees to focus on a narrow range of tasks, leading to deeper expertise and skill development within their specific functional area.
Understanding both formal and informal organisations is crucial for managers as it aids in navigating the complexities of workplace dynamics, optimizing communication, and leveraging informal networks for better performance.

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