NCERT Class 12 Business Studies Organising

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Once the plans have been laid down and objectives specified therein, the next step is to organise resources in a manner which leads to the accomplishment of objectives. A critical issue in accomplishing the goals specified in the planning process is structuring the work of an organisation to adapt to the dynamic business environment. The activities of an enterprise must be organised in such a manner that plans can besuccessfully implemented. For planning to be fruitful a number of considerations like resources that will be needed, optimum utilisation of the same translation of work into attainable tasks, empowering the workforce to accomplish these tasks etc., need to be understood and dealt with properly. 

It is evident from the way Wipro has moved towards reaching for it’s goal of becoming a globally successful technology company, that organising plays a significant role in implementation of plans.What has Wipro done to become a  contending force among other globalgiants? Are there lessons to be learnt from Wipro’s approach? Wipro organised itself in a manner that  allowed customer orientation to dominateover other goals and diversified on the basis of product lines. It also modified the relationships within the management hierarchy to suit the goals.  

The management function of organising ensures that efforts aredirected towards the attainment of goals laid down in the planning function in such a manner that resources are used optimally and people are able to work collectively and effectively for a common purpose. Thus, it is in the context of effective management that the organisation function earns due importance. It is a means for translating plans into action. The organising function leads to the creation of an organisational structure which includes the designing of roles to be filled by suitably skilled peopleand defining the inter relationship  between these roles so that ambiguityin performance of duties can be eliminated. Not only is this important for productive cooperationbetween the personnel but also for clarification of extent of authority, as well as responsibility for results and logical grouping of activities.


Let us take an example to understand how organising takes place. Have you ever paid attention to how, the school fete which you enjoy so much, actually takes place? What goes on behind the scene to make it the desired reality you want? The whole activity is divided into task groups each dealing with a specific area like  the food committee, the decorationcommittee, the ticketing committee and so on. These are under the overall supervision of the official incharge of the event. Coordinatin  relationships are established among the various groups to enable smoothinteraction and clarity about each group’s contribution towards the event. All the above activities are a part of the organising function.

Multiple Choice

1. Which of the following is not an element of delegation?

 (a) Accountability

 (b) Authority

 (c) Responsibility

 (d) Informal organisation

2. A network of social relationship that arise spontaneously due to interaction at work is called:

  (a) Formal organisation

 (b) Informal organisation

 (c) Decentralisation

 (d) Delegation

3. Which of the following does not follow the scalar chain?

 (a) Functional structure

 (b) Divisional structure

 (c) Formal organisation

 (d) Informal organisation.

4. A tall structure has a

 (a) Narrow span of management

 (b) Wide span of management

 (c) No span of management

 (d) Less levels of management

5. Centralisation refers to

 (a) Retention of decision making authority

 (b) Dispersal of decision making authority

 (c) Creating divisions as profit centers

 (d) Opening new centers or branches

6. For delegation to be effective it is essential that responsibility be accompanied with necessary

 (a) Authority

 (b) Manpower

 (c) Incentives

 (d) Promotions

7. Span of management refers to

 (a) Number of managers

 (b) Length of term for which a manager is appointed

 (c) Number of subordinates under a superior

 (d) Number of members in top management

8. The form of organisation known for giving rise to rumors is called

 (a) Centralised organisation

 (b) Decentralised organisation

 (c) Informal organisation

 (d) Formal organisation

9. Grouping of activities on the basis of product lines is a part of

 (a) Delegated organisation

 (b) Divisional organisation

 (c) Functional organisation

 (d) Autonomous organisation

10. Grouping of activities on the basis of functions is a part of

 (a) Decentralised organisation

 (b) Divisional organisation

 (c) Functional organisation

 (d) Centralised organisation

Short Answer Type

1. Define ‘Organising’?

2. What are the steps in the process of organising?

3. Discuss the elements of delegation.

4. What does the term ‘Span of management’ refer to?

5. Under what circumstances would functional structure prove to be an appropriate choice?

6. Draw a diagram depicting a divisional structure.

7. Can a large sized organisation be totally centralised of decentralised? Give your opinion.

8. Decentralisation is extending delegation to the lowest level.


Long Answer Type

1. Why is delegation considered essential for effective organising?

2. What is a divisional structure? Discuss its advantages and limitations

3. Decentralisation is an optional policy. Explain why an organisation would choose to be decentralised.

4. How does informal organisation support the formal organisation?

5. Distinguish between centralisation and decentralisation.

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