Organising in Business Studies: Class 12 NCERT Explained Clearly

What is Organising and Why is it Important in Business?

Organising is the process of arranging resources and tasks in a structured way to achieve business objectives. In Class 12 NCERT Business Studies, organising is defined as grouping activities, assigning jobs, and delegating authority to ensure smooth workflow.

Importance of Organising:

• Clarity in roles: Each employee knows their responsibilities.
• Avoids duplication: Prevents overlapping of work.
• Efficient resource use: Ensures optimal utilisation of manpower and materials.
• Coordination: Harmonises efforts across departments.
• Facilitates growth: A clear structure supports expansion and change.

Organising helps businesses function smoothly by creating a framework where all parts work together effectively.

Key Steps in the Organising Process

The organising process involves several important steps that help structure a business effectively:

1. Identification of Activities: List all tasks needed to achieve goals. 2. Departmentalisation: Group similar activities together (e.g., marketing, finance). 3. Assignment of Duties: Allocate specific jobs to individuals or teams. 4. Delegation of Authority: Grant authority to perform tasks and make decisions. 5. Coordination: Ensure all departments and employees work harmoniously.

Each step builds on the previous one to create a clear organisational framework, which is essential for smooth operations and accountability.

Types of Organisational Structures: Functional vs Divisional

Organisational structures define how activities and authority are arranged. The two main types are:

Functional Structure

• Groups jobs based on similar functions like production, marketing, finance.
• Each department specialises in its function.
• Advantages:
• Occupational specialisation
• Better control within departments
• Efficient managerial use
• Disadvantages:
• Departments may focus more on their goals than organisational goals
• Coordination across departments can be difficult

Divisional Structure

• Organises divisions based on products, markets, or regions.
• Each division is multifunctional (has its own marketing, finance, etc.).
• Advantages:
• Product specialisation and accountability
• Faster decision-making
• Flexibility and easier expansion
• Disadvantages:
• Duplication of resources increases costs
• Divisional managers may prioritise their division over the company

How Organising Supports Managerial Development and Efficiency

Organising plays a crucial role in developing managers and improving business efficiency:

• Managerial Development:
• Functional structures provide expertise in one area.
• Divisional structures give managers experience in multiple functions, enhancing leadership skills.
• Efficiency:
• Clear job roles reduce confusion and overlap.
• Delegation empowers employees, speeding up decision-making.
• Coordination mechanisms ensure departments work towards common goals.

For example, in a divisional structure, a manager responsible for a product line handles production, marketing, and finance, gaining broad experience. This prepares them for higher leadership roles.

Real-Life Application: Organisational Structures in Indian Companies

Many Indian companies use organising principles to stay competitive:

• ONGC’s Structural Transformation: ONGC shifted from a functional to a more divisional structure to handle diverse operations efficiently.
• Swiggy’s Expansion Strategy: Swiggy organises training and resource planning carefully when entering new towns, showing the importance of organising in operations.

Students can observe organisational structures by reading business news and analysing how companies group activities and delegate authority. Understanding these real-world examples helps grasp the practical impact of organising.

Common Challenges in Organising and How to Overcome Them

Organising is not without challenges:

• Overemphasis on Departmental Goals: Departments may focus on their own targets, ignoring overall business objectives.
• Coordination Difficulties: Especially in functional structures, different departments may not communicate well.
• Inflexibility: Rigid structures can slow down decision-making.
• Cost Issues: Divisional structures can be expensive due to resource duplication.

Solutions:

• Promote a shared vision and organisational culture.
• Use cross-functional teams to improve communication.
• Allow flexibility in roles and processes.
• Balance cost and benefits when choosing structure.

By addressing these challenges, businesses can organise effectively for success.