Quick and better decisions: The burden of managerial decisions does not lie in the hands of few individuals but gets divided among various persons which helps them to take better and quick decisions. 1. “Organising is the process of identifying and grouping the work to be performed, defining and delegating responsibility and authority and establishing relationships for the purpose of enabling people to work most effectively together in accomplishing objectives.”It refers to the process of defining and grouping the activities of an enterprise and establishing authority relationship among them. Arises by virtues of positions in management. ‘A manager is of the view that he is not responsible for the quality of work that he has delegated to his subordinate.’ Do you agree with his viewpoint? Dividing the whole enterprise according to the major products to be manufactured (like metal, plastic, cosmetics etc.) â¢nce the objectives and plans are laid down, management has to identify and establish productive relationships between various activities and resources for implementing plans. myCBSEguide | CBSE Papers & NCERT Solutions. (1), Which of the following arises from the responsibility? Thus, accountability is always of the person who delegates authority. Managerial Development: It means giving authority to the subordinates up to the lower level to take decisions regarding their work. 1. Chapter – 5 Organising Limited in scope: It is difficult to understand all human relationships in an enterprise as it places more emphasis on structure and work. The greater the span, the highly effective the manager. Difficult, as each functional manager has to report to the top management. Your IP: 126.96.36.199 According to Allen,â Decentralisation refers to systematic efforts to delegate to the lowest level, all authority except the one which can be exercised at central points.â. 3. An informal organization is that organization which is not established deliberately but comes into existence because of common interests, tastes and religious and communal relations. Better coordination: The elements of delegation â authority, responsibility and accountability help to define the powers, duties and answer ability related to various job positions which results in developing and maintaining effective coordination. 4. It refers to the structure of well defined authority and responsibility. More freedom of action due to less control by the top management. 3. Hence overall organizational objectives suffer. The organization structure can be defined as the frame work within which managerial and operating tasks are performed. Clarity in working relationship: It helps in creating well defined jobs and also clarifying the limits of authority and responsibility of each job. (A) Functional Structure: In functional structure activities are grouped and departments are created on the basis of specific functions to be performed. To register Online Tuitions on Vedantu.com to clear your doubts. It originates from within the formal organization as a result of personal interaction among employees. Unity of command through an established chain of command. â¢Functions: marketing, personnel, finance etc. It specifies the relationships between people, work and resources. It clearly defines the authority and responsibility of every individual. We are providing students with chapter wise CBSE Business Studies (BST) Class 12 notes. Advantages of the divisional structure are as follows: Save my name, email, and website in this browser for the next time I comment. Authority flows vertically as well as horizontally. For making the preparation of your business studies much more easier and effective, ncertbooks.guru has complied the best ever class 12 Business Studies notes especially for the users of our website. 2. 1. The authority granted to a subordinate can be taken back and re-delegated to another person. They exist together and there is a need for a balance between the two. activities of finance should be assigned to persons having qualifications and experience in finance e.g. Limits creativity of middle level and lower management, Promotes creativity and innovation at all the levels, A huge amount of workload on the top-level managers, Less workload as sharing of responsibility and authority is done, The scope of delegation is restricted as the power is concentrated in a few hands, The wider scope of delegation as the authority can be transferred, It is always easier to fix the responsibility since the mutual relationships or associations are precisely defined, It maintains the unity of command via an established chain of command, It furnishes stability to the establishment as there are particular regulations to guide the behaviour of the employees, All the pursuits are related to 1 product. 2. Identification & Division Of Work: - The Span of management to a large extent gives shape to the organization structure. Name the organisational structure, that promotes flexibility and initiative. Specialization: Better decision of labour takes place which results in specialization of functions and its consequent benefits. 1. It should have specific and definite tasks to be performed. In such an organization very little authority is delegated to managers at middle and lower levels. Key Notes for Business Studies Subject for CBSE Class 12 Students are given here. Development of Personnel: Sound organization encourages initiative and relative thinking on part of the employees. 5. They can thus utilize their time in more important and creative works instead of works of daily routine. - The departments are linked together and are interdependent. The structure provides a basis or framework for managers and other employers for performing their functions. - Division of work â specialization of efforts and skills + avoids duplication of work. Less freedom to take decisions due to more control by the superiors. Growth and Expansion: It facilitates growth and expansion as new divisions can be added without disturbing existing departments. For example, employees with similar interest in sports, films, religion etc. - Aims at achieving co-ordination and facilitate unity of action. Case Studies - (Chapter 5) Organizing, BST Class 12 Case Studies - (Chapter 5) Organizing, BST Class 12 Full Screen ... Rishu, Ashu and Ravi have decided to start a business of manufacturing toys. Accountability for the outcome of the assigned task. - Granting requisite authority to enable employees to perform the job satisfactorily. Difficult to fix responsibility on a particular department. It can be easily united, Performance can be easily evaluated and remedial action can be taken, It promotes expansion and growth, as new divisions can be added, The equipment cannot be completely utilised, Disagreement may arise between the divisional heads, This gives rise to duplication of effort among its various divisions. Students can solve NCERT Class 12 Business Studies Organising MCQs Pdf with Answers to know their preparation level. Narrow- as it is confined to a superior and his immediate and subordinate. It is available for free download here at BYJU'S. It is based on rules and procedures which are in written form. Quick solution of the problems â because the subordinates can speak without hesitation before the officers, it helps the officers to understand the problems of their subordinates. Thus, every organization is characterized by both. No organization can be completely centralized or decentralized. On this basis any unprofitable division can be closed. NCERT Solution for Class 12 Business Studies Chapter 5 - Organising is incorporated with all the questions provided in NCERT Books for 12th Class Business Studies Subject. Authority is that power which influences the conduct of others. Firm needs to balance the two. CBSE Class 12 Business Studies Responsibility is an attribute of the superior who delegates the work to his subordinate. Authority flows from top to bottom i.e. It is impersonal i.e. It makes the co-ordination easier at departmental level. Also growing companies which intend to add more lines of products in future adopt this structure. There are around 4-5 set of solved Business Studies Test Papers from each and every chapter. 4. Relieves the top executives from excess workload: The daily managerial works are assigned to the subordinates which leaves enough time with the superiors which they can utilize in developing new strategies. Helps in increasing managerial efficiency: Managers of one department are performing same type of function again and again which makes them specialized and improves their efficiency. As far as possible, it should define expected results along with the job. 3. © 2020 myCBSEguide | CBSE Papers & NCERT Solutions, Class 12 Business Studies Nature and Significance of Management Extra Questions, Extra Questions of Class 12 Business Studies Controlling, Class 12 Business Studies Staffing Extra Questions, Important Questions for Class 12 Financial Management Business Studies, Important Questions for Class 12 Directing Business Studies, Class 12 Business Studies Planning Extra Questions, Marketing Management Class 12 Business Studies Extra Questions, Financial Markets Important Questions for Class 12 Business Studies, Free Online Test Series for CBSE Students, Case Study based Questions Class 10 Mathematics, CBSE Class 10 English Sample Paper 2020-21, How to add Subjective Questions in Online Tests, The Best Mobile App for CBSE and NCERT Syllabus.
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