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Business Studies · Class 12 Commerce

Ch 5Organising — Class 12 Business Studies, concept-first.

Once plans have been laid down and objectives specified within them, the next step is to organise resources in a way that leads to the accomplishment of those objectives.

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Chapter contents

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Introduction

Once plans have been laid down and objectives specified within them, the next step is to organise resources in a way that leads to the accomplishment of those objectives.

5.1

Meaning

Organising is the process that turns a plan into action. Without it, even the best-laid plans remain ideas on paper. The textbook uses a familiar example to bring this to life.

5.2

Steps in the Process of Organising

The process of organising is not a single action but a sequence of logical steps. The textbook uses a simple example to show why this sequence matters: imagine twelve students told to unload books, st…

5.3

Importance of Organising

Organising is not just about putting things in order — it is the function that turns a collection of people and resources into a working, growing enterprise.

5.4

Organisation Structure

The organising process produces a concrete outcome: the organisation structure. This is the formal framework that defines how tasks are divided, who reports to whom, and how different parts of the ent…

5.5

Types of Organisation Structures

The structure an organisation adopts is not a one-size-fits-all decision. It depends directly on the nature and variety of activities the organisation performs.

5.6

Formal and Informal Organisation

Every enterprise has two structures running inside it at the same time. One is the formal organisation — the official, deliberately designed hierarchy of jobs, rules and reporting relationships that m…

5.6.1

Informal Organisation

Interaction among people at work gives rise to a network of social relationships among employees, and this is called the informal organisation.

5.7

Delegation

Delegation is the tool a manager uses to get work done through others. A manager, no matter how capable, cannot do every task alone — the sheer volume of work makes it impractical.

5.7.1

Importance of Delegation

Delegation is not just a way to reduce a manager's workload — it is the engine that makes an organisation run effectively.

5.8

Decentralisation

Decentralisation is about where decisions are made in an organisation. In some companies the top management takes all the decisions itself; in others this power is deliberately shared with even the lo…

5.8.1

Importance

Decentralisation is not just a mechanical transfer of authority down the hierarchy. It is a philosophy — a belief that people at lower levels are competent, capable, and resourceful.

Key Terms

- Organising – The process of identifying and grouping the work to be performed, defining and delegating responsibility and authority, and establishing relationships so that people can work together e…

Summary

- Organising is the process of defining and grouping activities and establishing authority relationships among them.

Very Short Answer Questions

Short Answer Questions

Long Answer Questions

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Sample & Board Papers

Sample papers and previous-year board questions for this subject.

+Show 11 questions11 questions
  1. Q1Statement I: Delegation is the entrustment of responsibility and authority to another, and the creation of accountability for performance. S…Preview
  2. Q2Differentiate between 'Delegation' and 'Decentralisation' on any four bases.Preview
  3. Q3Sushant was an able Project Manager at 'Keiro Ltd.' Sushant's Head, Naveen handed over a new project to Sushant. Sushant already had enough…Preview
  4. Q4The process that initiates implementation of plans by clarifying jobs and working relationships and effectively deploying resources for atta…Preview
  5. Q5'The process of organizing allows a business enterprise to accommodate changes in the business environment. It allows the organization struc…Preview
  6. Q6'The right of an individual to command his subordinates and to take action within the scope of his position' is called : (A) Decentralizatio…Preview
  7. Q7(a) 'Organisation's decision to opt for Functional Structure or Divisional Structure will vary with the nature and type of activities perfor…Preview
  8. Q8Differentiate between 'Authority' and 'Responsibility' on the basis of 'flow'. OR Distinguish between 'Responsibility' and 'Accountability'…Preview
  9. Q9Differentiate between 'Delegation' and 'Decentralisation' on any three bases.Preview
  10. Q10Which statement is not correct, with respect to 'Organisation Structure' ? (A) Ensures coordination among human and physical resources. (B)…Preview
  11. Q11Explain the following as significance of 'organising' function of management : (a) Benefits of specialisation (b) Clarity in working relatio…Preview