WORKSHEET 22 BUSINESS STUDIES (CLASS 12)

 ORGANISING

 Organising is a process of identifying and grouping the work to be performed, defining and             delegating responsibility and authority and establishing relationships for the purpose of     enabling people to work most effectively together in accomplishing objectives’.
Organising can be defined as a process that initiates implementation of plans by assigning jobs and working relationships and effectively deploying the resources for attainment of identified and desired results or goals.

1.     Define ‘organising’ as a function of management. 

        Organising is the function of management, which coordinates the physical, financial and human resources and establishes productive relations among them for achievement of specific goals.

2.     Enumerate any two basis of departmentation in an organisation.

        Two basis of departmentation in an organisation are:
(i) Territories (north, south, east, west, etc).
(ii) Products (appliances, clothes, cosmetics, etc).

3.     ‘Organising is the process of defining and grouping the activities of the enterprise and establishing the authority relationship among them.’ In the light of this statement, explain the steps in the process of organising. 

Steps in the Process of Organising

(i)             Identification and division of work The organising function begins with the division of total work into smaller units. Each unit of total work is called a Job. The division of work into smaller jobs leads to specialisation because jobs are assigned to different individuals according to their qualifications and capabilities. The division of work and assignment of jobs leads to systematic working.

(ii)            Grouping the jobs and departmentalisation After division of work, related and similar jobs are grouped together and put under one department.
This can be done in the following two ways :
(a) Functional departmentation Under this method, jobs related to common functions are grouped under one department.
(b) Divisional departmentation Under this method, jobs related to one product are grouped under one department.

(iii)           Assignment of duties In this step, work is allocated to different individuals as per the knowledge and skills acquired by them.

(iv)          Establishing reporting relationship In this step, hierarchical structure is established for proper entrustment of authority and responsibility. The establishment of such clear relationships helps to create a hierarchical structure and helps in coordination amongst various departments.

4. Organising plays an important role in any business enterprise. Explain by giving any four reasons.

(i) Benefits of specialisation Organising leads to a systematic allocation of jobs amongst the work force. This reduces the work load as well as enhances productivity because of the specific workers performing a specific job on regular basis. By doing a job on regular basis, a worker gets experience in that area and leads to specialisation.
(ii) Clarity in working relationship The establishment of working relationships clarifies lines of communication and specifies ‘who reports to whom’. This removes ambiguity in transfer of information and instructions.
(iii) Optimum utilisation of resources Organising leads to the proper usage of all material, financial and human resources. The proper assignment of jobs avoids overlapping of work and also makes possible the best use of resources. Avoidance of duplication of work helps in preventing confusion and minimising the wastage of resources and efforts.
(iv) Expansion and growth Organising helps in the growth and diversification of an enterprise by enabling it to deviate from existing norms and taking up new challenges. In other words, sound organisation helps in taking the various activities under control and increases the capacity of the enterprise to undertake more activities.