ISC Commerce Class XII - Organising Notes

Vocabulary practice flashcards based on ISC Commerce Class XII lecture notes covering the meaning, importance, process, formal, and informal organisation.

Organising

The process of identifying and grouping various activities, bringing together physical, financial and human resources, and establishing authority relationships among job positions.

Organising (Theo Haimann definition)

The process of defining and grouping the activities of the enterprise and establishing the authority relationships among them.

Organisational Structure

The framework created by the organising function within which the enterprise functions and tasks and authority relationships are built.

Division of Work

The process of dividing total work into specific, compact, and convenient jobs containing related tasks to facilitate specialisation.

Grouping Jobs or Activities

The classification of related or similar jobs into manageable units such as departments, divisions, or sections placed under a manager.

Assigning Duties

The allocation of specific activity groups to the person best suited to perform them based on qualifications, experience, and aptitudes.

Delegation of Authority

The conferring of necessary authority to individuals to perform assigned jobs, creating superior-subordinate relationships and a chain of command.

Coordinating Activities

The process of synchronising the efforts and activities of different individuals and defining interrelationships between job positions.

Formal Organisation

The official structure of clearly defined activities, jobs, authority, and relationships deliberately designed by management to achieve enterprise goals.

Formal Organisation (Scott definition)

A system of coordinated activities of a group of people working towards a common goal under authority and leadership.

Informal Organisation

A natural network of social relationships and small groups based on friendship, common interests, and social interactions among employees.

Informal Organisation (Keith Davis definition)

The network of personal and social relationships not established or required by formal organisation.

Scalar Chain

The established line of authority and official communication flowing from top to bottom in a formal organisational structure.

Role Conflict

A limitation occurring in informal organisations when simultaneous membership in both formal and informal structures imposes contradictory demands.

Rumour (in Informal Organisation)

An unintended outcome of informal channels where unverified information spreads rapidly, especially when formal policies are ambiguous.