class 12 business studies Organising notes

 Organizing..... Short & Easy Notes for Board Exam

#1. What do you mean by organising?

> It is a group of people contributing their efforts toward the attainment of common goal. It is a process of identifying and grouping the work to be done and fix the authority, accountability, responsibility and duty to achieve the goal. It enables the people to work efficiently.

#2. Write the characteristics or features of organising.

• Group of individuals- organising comes into existence when a group of people combine their efforts and willingly contribute to achieve a common goal.
• Common purpose- every organising comes into existence on the basis of goal of the Enterprise.
• Chain of command- the superior and subordinate relationship established in an organisation is based on authority, which flows from higher level to lower level of management.
• Division of work- organising involves division of total worked into various activities and functions and assigning the task to different persons according to their skills ability and experiences.
• Plurality of persons- organisation is a group of many people who assemble to fulfill our common purpose. A single individual cannot create an organisation.

#3. Write the significance or importance of organising.

• Specialisation- the process of organising, promotes specialisation in the sense that various organisational activities are divided and grouped into convenient jobs on the basis of similarity.
• Role clarity- the process of organisation clearly defines the jobs of managers and non managers. What task and activities shall be carried out at a particular job clearly defines.
• Clarify authority and responsibility- the process of organising clarifies the authority of the managers of different departments. Each manager knows to whom can he order and for which task.
• Coordination- the organisation structure facilitates coordination in the sense that it clearly shows who can exercise authority over whom to bring harmony of work.
• It ensure optimum use of human resources- good organisation institutes and optimum use of human resources of the Enterprise.

#4. Write the steps involved in organising process.

• Identification and division of work- the first step in organising is identification and division of work. At this step, the total work is divided in two different activities.
• Grouping the job and departmentalization- at this stage, the activities of the same nature are grouped together and assigned to a particular department. For example, purchase of raw material, purchase of manufactured parts and all related to purchase, are given to the purchase department.
• Assignment of duties- at this stage, responsibility of each individuals or post is decided. For example, the Purchase Manager will be given the task of purchasing, if the sales manager will be given the task of selling, Etc.
• Establishing reporting relations- at this stage, when two or more than two persons worked for the attainment of common goals, their interrelationship must be defined very clearly. Everybody should know who is superior and who is subordinates. e.g, Purchase Manager will be the superior for all employees of the purchase department.

#5. What is formal organisation.

> it is consciously designed to enable the people in the organisation to work together to achieve the common goal.

#6. What is informal organisation.

> it referred to the relationship between the people in the organisation based on personal attitude, emotions, prejudice, likes, dislikes, etc.

 

#7. What is delegation? Importance?

> delegation is a process sharing of task and authority between a manager and his subordinates. It is a process of instructing responsibility and authority to other.

Following are its importance;

• Means of coordination
• Reduction in executive burden
• Increase the morale of subordinates
• Facility in expansion of business
• Development of subordinates

#8. What do you mean by decentralization? What are its feature or characteristics and importance?

> Decentralization is the process of transferring authority from higher level to lower level.

Following are its characteristics;

• Decentralization makes the role of subordinates important.
• It is a process to be applied in organisation from top to bottom.
• Subordinates also get participation in the decision making process.

Following its advantages and importance;

• Reduction in the burden of top executive
• Incentive to Young
• Increase morale and motivation.
• Sources of ability of capable managers.
• Easy to take decision.

#9. Write the difference between formal and informal organisation.

Formal organisation;

• It is established by the organisation
• Its objective to achieve organisational goals
• It moves downward.
• It is pre planned
• These organisations are make more permanent and long lasting.

Informal organisation;

• It is established naturally
• Its objective are satisfied social and cultural needs.
• It moves downward and horizontal
• It is not planned
• Organisations are comparatively short term

#10. Write the difference between authority, responsibility and accountability.

Authority; 

• write two command.
• Arises from formal position.
• It can be delegated.
• Flow downward from superior to subordinate.

Responsibility;

• Obligation to work.
• Arises from delegated authority.
• It cannot be delegated.
• Flow upward from subordinates to Superior.

Accountability;

• Answerability for outcome of the assigned work.
• Arises from responsibility.
• It cannot be delegated at all.
• Flow upward from subordinate to Superior.

#11. Difference between delegation and decentralization.

Delegation

• It refers to contraction of power
• It has Limited scope
• It is a routine function of managers
• It is suitable for small organisation
• Authority is given temporally to complete the task.

Decentralization

• It refers to distribution of power
• It has wider scope
• It is one time decision
• It is suitable for large organisation
• Authority is given permanently

POINTS;

1. Authority can be delegated.
2. Responsibility cannot be delegated.
3. Accountability can not be delegated.
4. According to Koontz and O Donnell there are seven steps in organising.
5. Wrong organisational structure prevent business performance up to the extend that it destroy it. This statement is given by Drucker.
6. Delegation of authority means decentralization.
7. Authority can never be completely delegated.
8. Decentralization means granting of authority.
9. No favouritism in formal organisation.
10. Informal organisation depend on sweet will of the employees.
11. There is no discipline in informal organisation.
12. Informal organising is automatically form.
13. In large organisation, delegation is mandatory.

THE END