Ch-5; Organising; Business Studies

Class 12; Ch-5; Organising; Business Studies; Full Chapter in Book Language

What is <b>Organizing</b> a means for?

Organizing is a means for translating plans into action.

Define <b>Organizing</b>.

Organizing can be defined as a process that initiates implementation of plans by clarifying jobs and working relationships and effectively deploying resources for attainment of organizational goals.

List the <b>4</b> steps in the <b>Process of Organizing</b>.

1. Identification and division of work<br>2. Departmentalization (Grouping of work)<br>3. Assignment of duties<br>4. Establishing reporting relationships

Explain <b>Identification and Division of Work</b> in the <b>Process of Organizing</b>.

The first step in the organizing process is to identify and divide the total work to be done in accordance with previously determined plan.<br>The work is divided into manageable activities so that duplication of efforts can be avoided and the burden of work can be shared among the employees.

What happens under <b>Departmentalization</b>?

After the identification and division of work, the next step is to group related and similar jobs under one department. Such grouping is known as <b>departmentalization</b>.<br>It facilitates specialization.

Mention the <b>3</b> popularly used bases of grouping under <b>Departmentalization</b>.

1. Function — on the basis of function like purchase, marketing, finance<br>2. Product — like appliances, clothes, cosmetics<br>3. Territory — like north, southwest

Explain <b>Assignment of Duties</b> after grouping activities into departments.

After grouping various activities into department, it is necessary to define the work of different job positions and to allocate work to various employees.<br>Each department is placed under the charge of an individual.<br>Duties should be charged to the member of each department on the basis of their skills and competencies.

What is important for effective performance under <b>Assignment of Duties</b>?

A proper match between <b>nature of job</b> and <b>ability of an individual</b> is very important for the effective performance.

Explain <b>Establishing Reporting Relationships</b> in the organizing process.

After assigning duties, the next step is to clearly define the authority and responsibility associated with each job.<br>Each individual should also know who he has to take order from and to whom he is accountable.<br>The establishment of such clear relationships helps to create a <b>hierarchical structure</b>, and principle of <b>scalar chain</b> follows this hierarchy. That is, <b>degree of authority</b> goes down from top to bottom in hierarchy.<br>It helps in <b>coordination</b> amongst various departments.

What does the <b>Principle of Scalar Chain</b> mean in the hierarchy?

Degree of authority goes down from top to bottom in hierarchy.

State the <b>7</b> points showing the <b>Importance of Organizing</b>.

1. Benefits of specialization<br>2. Clarity in working relationships<br>3. Optimum utilization of resources<br>4. Adaptation to change<br>5. Effective administration<br>6. Development of personnel<br>7. Expansion and growth

Explain <b>Benefits of Specialization</b> as an importance of organizing.

The process of organizing leads to a systematic allocation of jobs among the workforce.
Such division of work reduces the workload and increases productivity.
Repetitive performance of a particular work also leads to specialization.

Explain <b>Clarity in Working Relationships</b> as an importance of organizing.

Organizing establishes the working relationships, which clarifies the lines of communication and specifies who is to report to whom.<br>Each person knows his superior from whom he has to take orders.<br>This removes ambiguity in transfer of information and instructions.

What does <b>Optimum Utilization of Resources</b> ensure?

Organizing ensures optimum utilization of <b>human, financial, and material resources</b>.<br>In organizing, work is assigned as per ability and proper assignment of jobs avoids overlapping of work and also makes possible the best use of resources.<br>Avoidance of duplication of work helps in preventing confusion and minimizing the wastage of resources and efforts.

How does <b>Adaptation to Change</b> contribute to organizing?

An organization operates in a dynamic environment, and such an ever-changing environment poses both challenges and opportunities to the business.<br>The process of organizing helps the enterprise to adjust itself as per changes in the business environment.<br>It allows the organization structure to be suitably modified and revision of interrelated relationships amongst managerial levels to pave the way for a smooth transition.<br>It also provides stability to the enterprise so that it can continue to survive and grow in spite of changes.

Explain <b>Effective Administration</b> as an importance of organizing.

Organization provides a clear description of jobs and clarifies authority and responsibility relationship.<br>It helps to avoid confusion and duplication of efforts.<br>Clarity in working relationships enables proper execution of work and brings effectiveness in administration.

How does organizing contribute to <b>Development of Personnel</b>?

Organizing stimulates creativity among the managers through the use of <b>delegation of authority</b>.<br>Effective delegation allows the managers to reduce their workload by assigning routine to their subordinates.<br>It gives them time to concentrate on strategic issues and explore new areas for growth.<br>It also gives them opportunity to innovate which helps to strengthen the company's competitive position.<br>Delegation also develops the subordinate by giving them the ability to deal effectively with challenges and realizing their full potential.

Explain <b>Expansion and Growth</b> as an importance of organizing.

Organizing process creates favorable conditions for expansion and diversification of enterprises by enabling it to deviate from existing norms and take up new challenges.<br>It allows a business enterprise to add more jobs, departments, and even diversify their product line.<br>It helps in expansion and growth of business.<br>New geographical territories can also be added to current areas of operation and it will help increase customer base, sales, and profit.

Define <b>Organization Structure</b>.

Organization structure refers to the framework within which managerial and operating tasks are performed.

What does <b>Organization Structure</b> specify?

Organization structure specifies the relationship between people, work, and resources.

Why should an <b>Organization Structure</b> be subjected to periodic review?

As business operates in a dynamic environment, management must continuously review its plan and organization structure of the enterprise should also be subjected to periodic review to determine if modification is required.

What should be the nature of a good <b>Organization Structure</b>?

A good <b>organization structure</b> should be <b>dynamic</b> so that it can change and adjust as per situations and business environment.

What is the <b>Need for Organization Structure</b>?

A proper organization structure is essential to ensure a <b>smooth flow of communication</b>, <b>good coordination</b>, and a <b>better control</b> over business operations.<br>In case of a one-man show, business structure is not needed as all activities are performed by the owner himself. However, when the organization grows, it becomes difficult to coordinate the function and activities of the different members.

Mention the <b>2</b> <b>Benefits of Organization Structure</b>.

1. A proper organization structure ensures a good flow of communication and better control over the operations of a business enterprise.<br>2. It provides a framework that enables the enterprise to function as an integrated unit by coordinating the responsibilities of individuals and departments.

How is an <b>Organization Structure</b> created?

The structure of an organization is deliberately designed and planned. It is greatly influenced by <b>span of management</b>.<br><b>Span of management</b> refers to the number of subordinates that can be effectively managed by a superior.<br>This determines the levels of management in the structure. So managers must consider the span of management while creating the organization structure.

Mention the <b>2</b> types of <b>Organization Structure</b>.

1. Functional structure<br>2. Divisional structure

Define <b>Functional Structure</b>.

Functional structure refers to the grouping of jobs of similar nature under one department.
All related and similar functions are grouped in one department under one executive.
This department may be further divided into sections.

Which companies follow the <b>Functional Structure</b>?

Companies like <b>Britannia Industries</b>, <b>Bata</b>, etc. follow the functional structure.

State the <b>3</b> conditions indicating the <b>Suitability of Functional Structure</b>.

1. When the size of the organization is large<br>2. When organization has to carry out diversified activities<br>3. When the task requires a high degree of specialization

Explain <b>Functional Specialization</b> as an advantage of functional structure.

It promotes <b>specialization</b> since each department has to perform a specific function.<br>As employees perform similar tasks within a department, it improves their efficiency and they are able to gain specialization.

Explain <b>Avoids Duplication</b> as an advantage of functional structure.

It helps in avoiding duplication of efforts which leads to <b>economies of scale</b> and reduces the <b>cost of production</b>.

What does <b>Proper Attention</b> ensure in a functional structure?

Functional structure ensures that different functions get due attention.

List the <b>4</b> selected <b>Advantages of Functional Structure</b>.

1. Functional specialization<br>2. Avoids duplication<br>3. Ease in training<br>4. Proper attention

Explain <b>Ease in Training</b> as an advantage of functional structure.

It makes training of employees easier as focus is only on the <b>limited range of skills</b>.