Business studies chapter 5 class 12th (organising )

 Chapter 5

ORGANISING




It refers to the process of defining and grouping the activities of an enterprise and establishing authorities relationship among them


Features

  • Division of work
  • Coordination
  • Popularity of person
  • Common objective
  • Organisation is a machine of management


Importance

  • Benefits of specialisation
  • Clarity in working relationship
  • Optimum utilisation of resources
  • Adaptation of change
  • Effective administration
  • Development of personnel
  • Expansion of growth


CONCEPT

  1. Organising as a process:- IT includes getting information about adjective deciding various activity and grouping them, determining importance activity, alloying authority and responsibility  etc. The process of  organising has also to be changed according this change.
  2.  Organising as a structure of relationship:-this various post are created or established and the mutual relationship of employees working and various post their authority and responsibility are defined organisation as a structure of responsibility is called static element.


Organising process

 1. Identification division of work

  • :- the organising process being with identify the total work
  • The total work is divided into smaller units
  • Each unit of total work is called a job
  • This brings specialisation

2.Grouping the job and  departmentalisation:-

  •  the second step is grouping similar related jobs is to larger unit cal departments or division
  • this process of grouping is called apartment lization

3.Assignment of duty :-

  •  after dividing the organisation and specialised department IIT engineer working in their respective department is 
  • Assigned a duty
  • Matching to his skill experience and qualification
  • Employer sign duty by giving them a document called job description
  • Job description clarifies the content and responsibility related to job


4.Establishing reporting relationship

  • Mainly locating job not enough
  • so in the fourth step all individual are assigned summer 30 matching to the job they have to perform
  • this clarifies that from whom on individual has to take orders and to whom he she is accountable






Formal and informal organisation

  1. Formal organisation

Formal organisation refers to the organisation structure which is designed by a management to achieve organisation goals


Features

  1. It has define interrelationship
  2. It is based on rules and procedure
  3. It is based on division of work
  4. It is deliberate created
  5. It is impressional
  6. It is more stable


Advantages

  1. Easy to fix accountability
  2. No overlapping work
  3. Unit of command possible
  4. Easy to get goals
  5. Stability in organisations


 Limitation

  1. Delay in work
  2. Lack of incentive
  3. Mechanization of relative


2.Informal organisation

it refers to the natural grouping of people in the work situation to meet personal needs


Features

  1. Based on formal organisation
  2. It has no return rules and procedure
  3. Independent channel of communication
  4. It is not deliberated created
  5. It has no place on organisation chart
  6. It is personal
  7. It lacks stability


Advantages

  1. Faster speed
  2. Fulfills organisational objective


Limitations

  1. It created rumours
  2. It resists changes
  3. Pressure of grouping norsms



Organisation structure function and divisional


  • Meaning of organisation structure

It refers to dad framework within which all managerial and non managerial task are performed


Forms

  1. Functional organisation
  2. Divisional organisation
  3. Line organisation
  4. Line and staff organisation


1.Function organisation structure

it refers to the division of the wall enterprise according to the major activity to be performed by it

Advantages

  1. Benefit of specialisation
  2. Coordination in stablished
  3. Managerial efficiency in increased
  4. Minimum duplication of effort
  5. Training is facilitated
  6. Equal weight age to all function


Limitation

  1. Ignorance of organisation objective
  2. Difficulty in inter departmental coordination
  3. Conflict of interest
  4. Hurdle in complete development


  • Divisional organisational structure

it refers to the division of the wall enterprises on the basis of different products geographical area customer group etc.

Advantages

  1. Development of divisional heads
  2. Divisional result can be assessed
  3. Quick decision making
  4. Easy expansion


Limitation

  1. Conflict between divisional heads
  2. Duplicating of function
  3. Selfish attitude



Delegation And Decentralization


  • Delegation of authority: concept

It was the process of interesting responsibility and authorities and creating accountability of the person to whom work or responsibility has been handed over

  • Element of this delegation of authority

  1. First responsibility
  • It refers to the obligation of subordinate to properly perform the assigned duty
  • It follows upwards

2. Authority

  • it refers to the right of an individual to command his subordinate and take action with in the scope of his position
  • It follows from top to bottom


3. Accountability

  • It refers to unse ability for the final outcome of the assigned task
  • It follows upward



Process of the delegation

Assigning responsibility -> granting athority-> fixing accountability


Importance 

  1. Effective management
  2. Employees development
  3. Motivation of employees
  4. Facilitation of growth
  5. Basis of management hierarchy
  6. Better coordination


Decentralization

it refers to the situation which exist as a result of systematic delegation of authority throughout the organisation


Features

  1. It is an expanded version of delegation of authority
  2. It increase the significance of the role of subordinates
  3. It is a process which is applicable to the organisation as a whole
  4. It reduces the workload of senior officer
  5. Decisions are taken by those employees who are going to implement them
  6. Along with the authority even accountability is delegated


Importance

  1. Develop initiative among subordinate
  2. Develop managerial talent for future
  3. Quick decision making
  4. Relief to top management
  5. Facilitates growth
  6. Better control


 



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