CBSE Class 12 Business Studies Organising Worksheet Set 01 Solved

Download Class 12 Business Studies Worksheets for Chapter 5 Organising

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ORGANISING
 
1 Organising:
Organising is the process of defining and grouping the activities of the enterprise and establishing authority relationships among them. Theo Haimman.
 
2 Steps in the process of organising:
(a) Identification and division of work (b) Departmentalisation (c) Assignment of Duties (d) Establishing reporting relationships.
 
3 Importance:
(i) Benefits of specialisation, Clarity in working relationships, Optimum utilization of resources,
Adaptation to change, effective administration, Development of personnel and Expansion and growth.
 
4 Organisational structure
It is the framework within which managerial and operating tasks are performed. It can be functional or divisional. Functional structure groups activities on the basis of functions.
The advantages of such a structure are specialisation, better control, managerial efficiency and ease in training employees.
The disadvantages are functional empires, conflict of interest, inflexibility, and restriction in managerial development.
 
Divisional structure groups activities on the basis of products. The advantages are integration,product specialisation, greater accountability, flexibility, better coordination and more initiative. The disadvantages are departmental conflicts, costly process, ignoring of organisational interests, increase in requirements of general managers. Span of management is the number of subordinates under a superior.
 
5 Formal organisation is designed by the management to achieve organisational goals. Its advantages are fixation of responsibility, clarity of roles, unity of command and effective accomplishment of goals. Its disadvantages are procedural delays, inadequate recognition of creativity, limited in scope.
 
6 Informal organisation arises out of interaction amongst people at work. Its advantages are speed, fulfillment of social needs, fills inadequacies of formal structure. Its disadvantages are: disruptive
force, resistance to change and priority to group interests.
 
7 Delegation is the transfer of authority from superior to subordinate.
It has three elements: Authority, Responsibility and Accountability.
Authority: It refers to the right of an individual to command his subordinates and to take action within the scope of his position.
Responsibility: It is the obligation of a subordinate to properly perform the assigned duty. Importance of delegation is that it helps in effective management, employee development, motivation, growth and coordination.
Accountability: It implies being answerable for the final outcome.
 
8 Decentralisation is delegation of authority throughout the organisation.
Importance of decentralisation is that it helps in development of managerial talent, quick decision making reducing burden on top management, development of initiative, growth and better control.
 
9 Alliance Ltd. is engaged in manufacturing plastic buckets. The objective of the company is to manufacture 100 buckets a day. To achieve this, the efforts of all departments are co-ordinated, interlinked, authority responsibility and relationship is established among various job positions. There is clarity on who is to report to whom. Name the function of management discussed above.
Ans. The function of management discussed is Organising.
 
10 National Viritech Ltd. has grown in size. It was a market leader but with changes in business environment and with the entry of MNCs its market share is declining. To cope with the situation CEO starts delegating some of his authority to the General Manager, who also felt overburdened GM also disperses some of his authority to various levels throughout the organisation with Identify the concept of the approval of CEO. Identify the concept of management discussed above.
Ans. Decentralization.


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Free study material for Business Studies

Chapter 5 Organising Practice Sheet and Solutions for Class 12 Business Studies

Chapter Practice Questions for Class 12 Business Studies

Review targeted practice exercises for Class 12 Business Studies Chapter 5 Organising. Curated to match official CBSE guidelines, these downloadable PDF sheets support daily revision and core concept reinforcement.

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Built using the official NCERT book for Class 12 Business Studies, these practice materials provide reliable academic guidance. Pair your practice with our recommended NCERT solutions to master optimal problem-solving approaches.

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