Organising | Class 12 | Chapter 5 | Business Studies

Rajat Arora2 minutes read

Organizing involves dividing tasks into departments based on nature, ensuring efficient resource utilization and clear working relationships for effective task management. Organization structures, such as functional or divisional, impact resource allocation and decision-making processes, with each having its advantages and challenges.

Insights

  • Organizing involves systematically dividing tasks into departments based on their nature, like production, sales, marketing, and finance, to ensure efficient resource utilization and avoid duplication.
  • The distinction between functional and divisional structures lies in their basis of division, specialization, cost-effectiveness, responsibility allocation, and decision-making processes, impacting organizational efficiency and goal attainment.

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Recent questions

  • What is the purpose of organizing in management?

    Efficiently divide tasks into departments for clear roles.

  • What are the benefits of a well-defined organization structure?

    Clear working relationships and efficient task management.

  • What is the significance of the span of management in organizational structure?

    Impact on resource allocation and organizational efficiency.

  • What are the differences between functional and divisional structures?

    Basis of division, specialization, and decision-making processes.

  • How does organizing contribute to an organization's growth?

    Fosters expansion, personal development, and future leaders.

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Summary

00:00

"Essential Steps in Organizing for Efficiency"

  • Chapter number five focuses on organizing, which is divided into two parts, similar to planning.
  • Organizing involves systematically dividing tasks into departments based on their nature, like production, sales, marketing, and finance.
  • The process of organizing includes identifying and dividing tasks according to a common plan to avoid duplication and ensure efficient resource utilization.
  • Grouping related jobs and creating departments based on functions or products are crucial steps in the organizing process.
  • Assigning duties to departments, individuals, and establishing reporting relationships are essential for effective organizing.
  • The individuals with maximum authority are considered top-level managers, while those with minimum authority are grouped as lower-level managers.
  • Specialization, role clarity, and effective administration are key benefits of organizing, leading to clear working relationships and efficient task management.
  • Organizing also allows for flexibility, personal development, and growth within an organization, creating future leaders and fostering expansion.
  • The organization structure defines the framework of an organization, including the relationship between people and resources, ensuring proper management and task allocation.
  • A well-defined organization structure is crucial for establishing clear relationships and ensuring efficient operations within an organization.

14:00

"Span of Management and Organizational Structures"

  • Span of Management refers to the number of subordinates effectively managed by a superior, impacting organizational structure and resource allocation.
  • Organization structures can be functional or divisional, based on either functions or products, with functional structures suitable for single-product enterprises.
  • Functional structures group similar jobs based on functions, aiding specialization, efficiency, coordination, and training effectiveness.
  • However, functional structures may lead to inefficiency, inflexibility, and conflicts of interest, hindering overall organizational goals.
  • Divisional structures organize departments by products, promoting product specialization, growth, flexibility, and initiative.
  • Advantages of divisional structures include product specialization, growth, flexibility, and quick decision-making, but they may require more resources and lead to conflicts.
  • Differences between functional and divisional structures lie in their basis of division, specialization, cost-effectiveness, responsibility allocation, and decision-making processes.
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