Organising - Business Studies - Max Lino Payyampallil
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Max Lino PayyampallilOrganising - Business Studies - Max Lino Payyampallil
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Max Lino PayyampallilCBSE CLASS XII BUSINESS STUDIES
Organising
©
2020
Max Lino Payyampallil
Identifying and grouping different
activities in the organisation and
bringing together the physical, Financial
and human resources to establish most
protective relations for the achievement
of specific goal of organisation.
Organising can be defined as a process that initiates
implementation of plans by clarifying jobs and working
relationships and deploying resources for attainment of
identified and desired results.
Process
Of
Organising
Identification and division of
work
The work is divided into manageable activities so
that duplication can be avoided and the burden of
work can be shared among the employees.
Departmentalisation
Activities which are similar in nature are grouped
together. Sach sets facilitate specialisation. This
grouping process is called departmentalization.
Departments can be created using several criteria
as a basis.
Assignment of duties
Once departments have been formed, each of them is placed under
the charge of an individual. Jobs are then allocated to the members
of each department in accordance to their skills and competencies.
The work must be assigned to those who are best fitted to perform
it well.
Establishing reporting
relationships
Merely allocating work is not enough. Each individual should also
know who we have to take orders from and to whom he is
accountable. It helps to create a hierarchical structure and helps
in coordination among the various departments.
Importance
Of
Organising
Benefits of specialisation
Clarity in working relationships
Optimum utilisation of resources
Adaptation to change
Effective administration
Development of personnel
Expansion and growth
Organisationa
l Structure
Organisation structure is the outcome of the organising process.
The need for an adequate organisation structure is felt by an enterprise whenever it
grows in size or complexity.
Organisation structure is defined as the framework within which
managerial and operating tasks are performed.
It specifies the relationships between people, work and resources.
It allows correlation and coordination among human physical and financial
resources and is enables a business enterprise to accomplish decide
goals.
Span of management refers to the number of subordinates that can be effectively
managed by a superior. This determines the levels of management in the
structure. It gives shape to the organisational structure.
Organisational Structure
Functional Divisional
When the activities for jobs are grouped keeping in mind the functions of
the job then it is called functional structure.
Advantages
• Specialisation
• Easy supervision
• Easy coordination
Functional •
•
Increasing managerial efficiency
Effective training.
Disadvantages
Structure •
•
•
The departments become specialised in their on way only.
When departments became too large then the coordination decrease.
When the organisational goal is not achieved, then it becomes very
difficult to make anyone department accountable.
• Employees get training from one function only, i.e., the department to
which they belongs so they cannot be shifted to another department.
Suitability
• Size of the organisation is large.
• Has diversified activities and operations.
• High degree of specialisation.
When the organisation is large in size and is producing more than one
type of product then activities related to one product are grouped under
one department.
Advantages
• Product specialisation
•
•
•
Fast decision making
Accountability
Expansion and Growth.
Divisional
Disadvantges
•
•
Each department will require all the resources as each division will be
working as an independent unit.
Conflict on allocation of resources.
Structure
• Each department focuses on their product only and they fail to keep
themselves as a part of one common organisation.
Suitability
• Organisation producing multiple products.
• Organisation which require product specialisation.
• Growing companies which plant to add more lines of products in
future.
Basis Functional Structure Divisional Structure
Formation Based on functions Based on product line and
is supported by functions
Specialisation Functional Product
Responsibility Difficult to fix on a Easy
department
Managerial development Difficult, as each functional Easier, autonomy as well
manager has to report to as the chance to perform
the top management. multiple functions helps in
managerial development
Cost Functions are not Duplication is present and
duplicated hence, hence costly
economicals
Coordination Difficult Easy
Delegation
and
Decentralisation
Delegation
A process of entrusting responsibility and authority to the subordinates and
creating accountability on those employees who are entrusted with
responsibilityand authorities.
It is the downward transfer of authority from a superior to a subordinate.
It is a prerequisite to the efficient functioning of an organisation because it
enables a manager to use his time on high priority activities. Opportunities to
develop and exercise initiative.
Importance of delegation
Effective management
• Employee development
• Motivation of employees
• Facilitation of growth
• Basis of managerial hierarchy
• Better coordination
Elements of delegation
1. Responsibility.
Means the assigned to an individual. It includes all
physical and mental activities to be performed by the employees
at a particular job position.
2. Authority
Power to take decisions. To carry on the responsibility
every employee need to have some authority.
3. Accountability
Subordinates will be answerable for the the functions
inside the firm.
Basis Authority Responsibility Accountability
Meaning Right to Obligation to Answerability of
command perform an the outcome of
assigned task. the assigned
task.
Delegation Yes Not entirely Not at all
Origin Arises from Delegated Responsibility
formal position authority
Flow Downward Upward Upward
(Superior-
subordinate)
Decentralisation
Explains the manner in which decision-making responsibilities are
divided among hierarchical levels.
It refers to delegation of authority throughout all the levels of
organisation.
An organisation can never be completely centralised or
decentralized. As it grows in size and complexity, there’s a
tendency to move towards decentralized decision making. This
is because in large organisations those employees who are
directly and closely involved with certain operation tend to
have more knowledge about them than the top management
which may only be indirectly associated with individual
operations
Importance of decentralization
Develops initiative among subordinates.
Develops managerial talent for the future.
Quick decision making.
Relief to top management
Facilitates growth
Better control.
Basis Delegation Decentralisation
Nature Delegation is a Decentralisation is
compulsory act because optional policy decision. It
no individual can perform is done at the discretion of
or tasks on his own the top management.
Freedom of action More control by superiors Less control over
hence less freedom to executive hence greater
take on decisions. freedom of action.
Status It is a process followed to It is the result of the policy
share task decision of the top
management.
Scope It has narrow scope It has wider scope
Purpose To lessen the burden of To increase the role of the
the manager subordinates in the
organisation by giving the
more autonomy.
Thanks
A
Max Lino Payyampallil
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