CBSE Class 12 Business Studies Organising

Chapter – V

Organising

Define “Organising” and enumerate 3 steps involved in the process of organising?

• Organising means identifying and grouping various activities into jobs and then sub grouping these jobs into sections and departments.
• It is bringing together financial, physical & human resources and establishing productive relations among them for achieving specific goals.

The organising process involves the following steps:

Division of work:

• 1st step – divide the work since one individual cannot do the entire work. If work is divided it leads to specialisation of work and skill.

Grouping Jobs and Departmentation:

• The 2nd step is to group similar jobs into departments, divisions or sections such as marketing, financing, manufacturing, etc.
• This brings about coordination and facilitates unity of effort.
• The departments so created are linked together on the basis of their interdependence.

Establishing authority relationships:

• 3rd step is to create an authority structure among various job holders This links the various job holders by authority-responsibility relationship.

Define Organising as a structure? Enumerate any three CONSIDERATIONS to be kept in mind while building an organisational structure. - 

Definition:

An organisation structure define:

• job positions,
• the roles assigned to them ;and
• the authority relationships among the various job positions.
• It facilitates work-flow in the organisation.

Considerations (any 3)

The following considerations should be kept in mind while building an organisation structure

Job design:

• Manager has to first design the jobs
• Then specify which task is to be included in each job
• Then decide which person will do which job

Departmentation:

• Once the jobs are defined they must be grouped together to form a department as coordination becomes easier if similar jobs are under one department and one manager.

Span of Control:

• After the departments are formed, how many people and jobs the manager will manage is the next decision. The manager is responsible for coordinating a particular number of jobs, which is called the span of control.

Delegation of Authority:

• As jobs have been assigned, some degree of authority is required to get the job completed.
• Explain how organising helps in “Specialization” and “Co-ordination”

Please refer to attached file for CBSE Class 12 Business Studies Organising