BUSINESS STUDIES MASTER

Simplifying Foundations of Business & Management for Class XI & XII

 

CLASS XII CHAPTER 5

: ORGANIZING- REVISION NOTES


1. MEANING OF ORGANISING

Definition: Organising means arranging people and resources in a planned way so that everyone knows their work, how to do it, and whom to report to in order to achieve organisational goals smoothly.

“Right Work → Right Person → Right Place.”
2. ORGANISING AS A PROCESS

Organising is the process of:

  • Bringing people and resources together
  • Dividing work into tasks
  • Assigning jobs to suitable people
  • Creating clear working relationships
Quick Acronym: BDAC

B – Bring resources together | D – Divide work | A – Assign duties | C – Create relationships

3. ORGANISING AS A STRUCTURE

Organising also creates the structure of the organisation. It:

  • Defines roles and responsibilities
  • Clarifies authority relationships
  • Groups similar activities
  • Avoids confusion in reporting
Memory Line 🎵
“Clear roles, clear power, clear chain —
Then the organisation runs like a train.”
4. THINGS TO KEEP IN MIND

Managers must think about:

  • Resources required
  • Efficient use of resources
  • Division of work
  • Authority and responsibility
Acronym: READ

R – Resources required | E – Efficient use | A – Assign work | D – Delegate authority

5. IMPORTANCE OF ORGANISING

Acronym: SCREDS

LetterMeaning
SSpecialization
CClear relationships
RResource utilization
EEmployee development
DDeals with change
SSupports growth
Memory Lyric 🎵
“Special skills and clear relation,
Better use of every station.
Employees grow and changes fit,
Organising makes business legit.”
6. STEPS IN ORGANISING PROCESS

Acronym: IDARE

LetterStep
IIdentification & division of work
DDepartmentalization
AAssignment of duties
RReporting relationships
EEstablish authority
Memory Song 🎵
“Identify work, divide it fair,
Group the tasks with proper care.
Give the job to people right,
Set the chain and power tight.”
7. ORGANISATION STRUCTURE

Definition: Organisation structure is the framework that shows relationships between people, tasks and authority in an organisation.

Span of Management vs Levels of Management

Span of Management: Number of subordinates a manager can supervise effectively.

Levels of Management: Different positions of authority in the organisation.

Memory Rule
“Wide Span → Few Levels | Narrow Span → Many Levels.”
8. TYPES OF STRUCTURES

Acronym: FD (Functional & Divisional)

1. Functional Structure

Jobs are grouped according to functions (Production, Marketing, Finance, HR).

“Same work together, experts forever.”

Best Suitable When: Large organisation, specialization needed, stable activities.

2. Divisional Structure

Organisation is divided based on Products, Regions, or Customers.

“One company, many mini companies.”

Best Suitable When: Multiple products, different markets, need quick decisions.

9. FORMAL VS INFORMAL

Formal Organisation (CRT)

C – Clear relationships | R – Rules and roles | T – Target oriented

Adv: Clear responsibility, Unity of command. Disadv: Slow communication.

Informal Organisation (SFG)

S – Social relations | F – Flexible communication | G – Group norms

Adv: Faster communication, Social satisfaction. Disadv: Rumors, Resistance to change.

10. DELEGATION & DECENTRALIZATION

Delegation: Downward transfer of authority while manager remains accountable.

“Authority goes down, accountability stays up.”

Elements of Delegation (ARA)

AAuthorityFlows ↓
RResponsibilityFlows ↑
AAccountabilityFlows ↑

Decentralization

Systematic delegation of decision-making authority to lower levels.

Importance (IQGRBD): Initiative, Quick decisions, Growth, Relief to top, Better control, Development of managers.

11. DELEGATION VS DECENTRALIZATION
Easy Trick: TD vs OD
Delegation (TD)Decentralization (OD)
Task delegationOrganisation-wide system
Temporary authorityPermanent authority
Individual levelEntire organisation

“Delegation gives work, Decentralization gives power.”

ULTRA QUICK EXAM RECALL
  • Organising Meaning: Arrange work & people
  • Process: BDAC
  • Importance: SCREDS
  • Steps: IDARE
  • Structures: FD
  • Delegation Elements: ARA

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