Commerce · Ch 10 — Organising
Importance of Organising
Importance of Organising
Why Organising Matters
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. Without proper organising, even the best plans remain on paper. As the NCERT Class 12 Business Studies chapter explains, the significance of organising arises from the fact that it helps a business survive, grow and adapt to a dynamic environment. The chapter highlights seven points that show the crucial role organising plays in any business enterprise.
1. Benefits of Specialisation
Organising leads to a systematic allocation of jobs among the workforce. Instead of everyone doing everything, each person is assigned a specific task on a regular basis. This does two things:
- It reduces the workload on any single individual.
- It enhances productivity because a worker who repeatedly performs the same job gains experience and becomes an expert in that area.
This repetitive performance of a particular task is what leads to specialisation.
2. Clarity in Working Relationships
Organising establishes clear lines of communication and specifies who reports to whom. This removes ambiguity in the transfer of information and instructions. When everyone knows their superior and their subordinates, a clear hierarchical order emerges.
This hierarchy helps in two critical ways:
- It enables fixation of responsibility — each person knows what they are accountable for.
- It specifies the extent of authority an individual can exercise.
3. Optimum Utilisation of Resources
Organising ensures that all resources — material, financial and human — are used properly. The key mechanism here is proper assignment of jobs, which avoids overlapping of work. When two people are not doing the same task unnecessarily, there is no duplication of effort.
Avoiding duplication prevents confusion and minimises wastage of resources and efforts, so that every rupee, every hour and every material is put to its best use.
4. Adaptation to Change
The business environment is never static — new competitors, technologies, laws and customer preferences keep emerging. Organising allows a business to accommodate these changes smoothly.
The organisation structure can be suitably modified — inter-relationships among managerial levels can be revised to pave the way for a smooth transition. This also provides much-needed stability to the enterprise, so it can continue to survive and grow in spite of changes.
5. Effective Administration
Organising provides a clear description of jobs and related duties. When every employee knows exactly what their job entails, confusion and duplication are avoided, and clarity in working relationships enables proper execution of work.
As a result, management of the enterprise becomes easy. This brings effectiveness in administration.
6. Development of Personnel
Organising stimulates creativity amongst the managers. Effective delegation allows managers to reduce their workload by assigning routine jobs to subordinates. This reduction is not only necessary because of the limited capacity of an individual — it also gives the manager time to develop new methods and ways of performing tasks, to explore areas for growth and to innovate, thereby strengthening the company's competitive position. Delegation also develops in the subordinate the ability to deal effectively with challenges and helps them realise their full potential.