BUSINESS STUDIES

XII (2023-24)

PART -1

VIDEO
NOTES
 MEANING
In general words, ORGANISING refers to
arranging everything in orderly form and making
most efficient use of resources

e.g. School plans to conduct sport day or annual

function. All teacher and students are assigned
different duties, various resources are
arranged and a coordinator is appointed whom
one report for the work done and pending.
This whole arrangement is called organising.

ORGANISING PROCESS
IDENTIFICATION AND DIVISION OF WORK

DEPARTMENTALISATION

ASSIGNMENT OF DUTIES

ESTABLISHING REPORTING
RELATIONSHIP
 IDENTIFICATION AND
#1 DIVISION OF WORK

This function begins with the division of total work

into smaller units. Each unit of total work is called a
job. And one person in an organisation must assign
only one job matching to his skills, qualification,
expertise, interest and experience it leads to
specialisation.

#2 DEPARTMENTALISATION

Here job of similar category are put under one department

common way of departmentation are.
Two ways of Departmentation
A. Functional Departmentation B. Divisional Departmentation

FUNCTIONAL DIVISIONAL
DEPARTMENTATION DEPARTMENTATION

Under this method job Under this method job related

related to common to one product are grouped
function are grouped under one department e.g. if
under one department. an organisation is producing
e.g. all the job related to Cosmetic & Medicine then
production are grouped production , sales and
under production marketing of cosmetics are
department grouped under one
department.
 #3 ASSIGNMENT OF DUTIES

Here different individuals are assign duties matching

to his skills and qualification employees are assign
duties by giving them a document called job
description it contains the responsibilities and duties
towards the job.

ESTABLISHING
#4 REPORTING
RELATIONSHIP

To perform the assigned job by the managers

individuals of need some authority. So in
fourth step of organising all the individuals
are assigned some authority matching to the
responsibility this leads to creation of
superior subordinate relationship the
individual having higher authority become the
superior and with less authority becomes
subordinates here managerial hierarchy gets
created and principle of scalar chain follows
this hierarchy.
 BUSINESS STUDIES
XII (2023-24)

PART -2

VIDEO
NOTES
 ORGANISATIONAL
PROCESS

Benefit in specialisation:- Due to division of

work each individual is specialised in his work

Role Clarity :- In the organising function Individuals

are assigned job responsibility and authority so the
role of every manger is clear

Optimum utilisation of resources:- In the organising

function there are very few chances of duplication of
work. Every individual is specialised about the work
hence resources are utilised carefully without any
wastage.

Coordination:- In any organisation every department

is linked with other department hence members of
each department coordinates with other departments.

Expansion and growth:- With optimum utilisation

of resources and proper division of work
companies can easily meet the challenges and
expand their business.
 ORGANISATIONAL
STRUCTURE

When the manager are performing organising

function an organisational structure gets
created automatically, which defines the job
position, the authority, responsibilities of
different employees.

SPAN OF MANAGEMENT

It means the number of subordinates can be

work under one supervisor.

NARROW SPAN OF WIDER SPAN OF

MANAGEMENT MANAGEMENT

A narrow span of control Wide span of control

is a management style means a manager can
where supervisors supervise and control
manage only a small effectively a large number
number of employees. of persons at a time
It Results Tall Structure It Results Flat Structure
 BUSINESS STUDIES
XII (2023-24)

PART -3

VIDEO
NOTES
 TYPES OF
ORGANISATIONAL
STRUCTURE
Functional Divisional
Structure Structure

When the job related to common Under this structure job

function are grouped under one related to one product are
department this types of
grouped under one
organisational structure is called
functional structure. department.

ADVANTAGES
(FUNCTIONAL STRUCTURE)

Specialisation:- When the activities are classified

as per the skills qualification, and activities
related to same function are grouped under same
department, it leads to specialisation.

Easy supervision:- The supervisor becomes

familiar with the type of task to be performed
because all the task are related to one
function only as a result he can easily
supervise and guide employees
Easy coordination:- All the department are inter-
dependent on each other function of one
department depends on other department so it
leads to easy coordination. e.g. production
department depends upon purchase department
for raw material.

Effective training:- It makes training of the

employees more easy as they trained in
limited types of skill i.e. employees of
production department are given training of
production technique only

DIS-ADVANTAGES
(FUNCTIONAL STRUCTURE)

A)The department become specialised in

their own way only they fail to see the
prospectus of whole organisation as a result
organisational goal can’t achieved

B)When department become too large then

coordination decrease and there is delay in
decision
C)The department heads start thinking about
their department this leads to conflicts among
various departments

D) When organisational goal is not achieved it

becomes very difficult to make any
department accountable for this because all
department are inter related.

E) In functional structure employees get raining

of one function only he is not able to perform
any other function i.e. inflexibility occurs.

ADVANTAGES
(DIVISIONAL STRUCTURE)

Product specialisation:- All the activities related

to one type of product are grouped under one
department this leads to product specialisation

Fast decision making:- One product has one

department so it takes less time in decision
making because there is no interference of other
departments.
Accountability:- You can easily fix accountability
in divisional structure here performance of
individual departments can easily assessed.

Flexibility:- employees are one department can

do different functions with in the department.

Expansion and growth:- New department can

easily introduced by addition of new department.
without affectively other departments.

DIS-ADVANTAGES
(DIVISIONAL STRUCTURE)

a)Each department focuses on their product only

they fail to see the prospectus of whole
organisation
b)Conflicts on allocation of resources among
differentdepartments
c)Divisional structure requires huge capital.
 BUSINESS STUDIES
XII (2023-24)

PART -4

VIDEO
NOTES
FORMAL ORGANISATION INFORMAL ORGANISATION

When the managers If the formal organization

are carrying organizing structure, individual are
process then as a result assigned various job
of organizing process positions while working at
those job position the
an organizational
individuals interact with
structure is created to each other and develop
achieve systematic some social and friendly
working and efficient groups in the organization.
utilization of This network of social and
resources. This type of friendly groups forms
structure is known as another structure in the
formal organizational organisation which is
structure. called informal
organisational structure

FORMAL ORGANISATION
ADVANTAGES DIS-ADVANTAGES

Systematic working
Delay in action
Follow Scalar Chain
Emphasis on work only
Achievement of
Ignores social needs of
organizational goal
employees
Coordination
No Correct Feedback
More Emphasis on work
 INFORMAL ORGANISATION

ADVANTAGES DIS-ADVANTAGES

Spread rumours
Fast communication
No systematic working
Fulfils social needs
May bring negative
Correct Feedback
results
Coordination
Organisational goal may
not achieved.
Unity & Togetherness
 BUSINESS STUDIES
XII (2023-24)

PART -5

VIDEO
NOTES
 DELEGATION OF
AUTHORITY

Delegation of authority means division of authority

and powers downwards to the subordinate
Delegation is about entrusting someone else to do
parts of your job
A manager can’t do all the work himself hence be
deliberately passes some of his responsibilities to
his subordinates manager also share some of his
authority with his subordinates so that
responsibilities can be carried out properly.

ELEMENTS OF
DELEGATION

RESPONSIBILY ACCOUNTABILITY
AUTHORITY

AUTHORITY MUST BE EQUAL TO RESPONSIBILITY

ACCOUNTABILITY CAN NEVER DELEGATED
 CENTRALISATION &
DECENTRALISATION

Centralisation refers Decentralisation Can

to concentration of be defined as even and
authority or power in systematic distribution
of authority at every
few hands. The
level of management
authority to make
here every employee
important decisions working at different
is retained by top levels gets some share
level managers in the authority.

A company should follow a mix policy of

centralisation and decentralisation.

RELATIONSHIP BETWEEN
DELEGATION &
DECENTRALISATION

1.Decentralisation is the extension of delegation.

In delegation the authority is shared between two

persons only. i.e. manager and subordinates
whereas in decentralisation many people at every
level are involved i.e. directors, production head,
production manager, supervisor, etc
2. Delegation is Necessary in every organisation but
decentralisation is not :-

Every manager has to share some authority to the

lower level to get work done from them no manager
is experts to do all the activities in the organisation
so delegation is necessary but decentralisations is
required when an organisation grows and expands.
When delegation is extended then it creates
decentralisation.

IMPORTANCE OF
DELEGATION
1.Motivation of employees
2.Employees development
3.Reduce work load of manager
4.Effective management
5.Facilitates organisational growth
6.Better coordination
Motivation of employees:- in delegation when manager
sharing his responsibilities and authority with the
subordinates it motivates employees to perform their best
ability this a kind of non-financial incentives.

Employees development:- As a result of delegation employees get

more opportunity to utilise their talents by doing the task of
manager employees develop their skills and they develop a
managerial talent for future

Reduce work load of manager:- In delegation manager are allowed

to share their responsibilities and work with their subordinates
which reduce the workload of managers

Effective management:- In the process of delegation managers pass

their routine work to the sub-ordinates so they are free to
concentrate on other important matters which helps them to take
correct decision on critical matters

Facilitates organisational growth:- In this process manager

delegate responsibility according to the qualification of
subordinates this leads to employees development and
organisation growth

Better coordination:- Decentralisation and delegation need

better coordination in process of sharing authority and
responsibility managers develop coordination to do so.
 BUSINESS STUDIES
XII (2023-24)

PART -6

VIDEO
NOTES
 DECENTRALISATION

Decentralisation Can be defined as even and

systematic distribution of authority at every level
of management here every employee working at
different levels gets some share in the authority.

IMPORTANCE OF
DECENTRALISATION

Develop initiative among subordinates.

Passing of authority at middle and lower
level : Show the trust and faith of top level in
their subordinates and this trust and faith
motivate the employees working at different
levels as they are allowed to take decision
without seeking the approval of superiors.
 IMPORTANCE OF
DECENTRALISATION
Develop Managerial talent for future: In decentralisation managers
working at lower and middle level also learn the art of making
decisions. They get the experience of performing activities of top
executive and learn to manage the authority given to them.

Quick decision making: In the decentralisation process, decision

making is not restricted in few hands only but decision-making
power is entrusted to all the manager who are taking actions or
performing the activities. This leads to faster decision.

Relief to top level management: In the process of decentralisation,

top level manager are not overburdened with the responsibilities and
authority as they systematically
pass the authority and responsibilities
at different level and they become free.

Facilitate growth: Decentralisation grants more autonomy to

lower level. This help to subordinates to do the work in the
manner best suited for their department. When each department
is doing their best then productivity increases. It leads to increase
in revenue.

Better control: In decentralisation employees working at

different levels take their own decision and they are
personally accountable for their decisions, they cannot pass
the blame to their superiors. With decentralisation better
control can be exercised through score card.
 DIFFERENCE BETWEEN
DELEGATION AND
DECENTRALISATION
BASIS DELEGATION DECENTRALISATION

GRANT OF Authority is granted by Authority is granted by

AUTHORITY immediate superior top level managers.

Almost all the employees

PARTIES Two parties are
in organisation are
INVOLVED
involved involved

JOB Delegation is It is one time

routine job decision

Less freedom of action More freedom of action

FREEDOM due to continuous due to periodic
OF ACTION approval, not
supervision by the
managers continuous supervision

It is a narrow in It is wider in
SCOPE scope scope

Price of securities are Price of securities

PRICE fixed by the depend upon
management of demand and
company supply factors

It is the responsibility It is responsibility of

RESPONSIBILITY of every manager top level manager

To increase the role of

PURPOSE Reduce the work load
subordinate and giving
of manager
them more autonomy
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