Organising in Business Studies: A Complete Guide for Class 12 NCERT

What is Organising in Business Studies?

Organising is a fundamental function of management that involves assembling and coordinating various resources—human, financial, physical, and informational—to achieve organisational objectives. In Class 12 NCERT Business Studies, organising is defined as the process that initiates the implementation of plans by:

• Defining specific jobs
• Grouping similar activities
• Delegating authority
• Establishing clear relationships among people

This process creates an organisational structure that clarifies roles, responsibilities, authority, and reporting lines. For example, Wipro Technologies decentralised its management by creating subsidiaries for different product lines, empowering leaders and improving customer focus.

Organising transforms plans into action, ensuring resources are used optimally and employees work collectively towards common goals.

The Process of Organising: Step-by-Step

The process of organising involves several key steps that help structure work and resources effectively:

1. Identification and Classification of Activities: Break down the overall plan into smaller activities. 2. Grouping of Activities: Combine similar activities into departments or groups (also called departmentalisation). 3. Assignment of Duties: Allocate specific tasks to individuals or teams. 4. Delegation of Authority: Grant authority to employees to carry out their duties. 5. Establishing Reporting Relationships: Define who reports to whom to maintain order and accountability.

Each step ensures clarity and coordination. For instance, grouping activities by function (marketing, finance) or product line helps manage tasks efficiently.

Example:

If a company has to launch a new product, the organising process will divide tasks like market research, production, and sales into separate departments, assign duties, and delegate authority to managers in charge.

This systematic approach helps in smooth execution and goal attainment.

Importance of Organising in Business Management

Organising plays a crucial role in the success and growth of any business. Its importance can be summarised as follows:

• Facilitates Goal Achievement: By clearly defining roles and responsibilities, organising ensures everyone works towards common objectives.
• Optimum Utilisation of Resources: Avoids duplication and overlapping of work, saving time and costs.
• Creates Specialisation: Grouping similar activities allows employees to specialise and improve efficiency.
• Establishes Clear Authority: Delegation clarifies who has decision-making power, reducing confusion.
• Improves Coordination: Helps different departments and employees work together smoothly.
• Adaptability and Growth: A well-organised structure can adapt to changes and scale operations.

For example, Swiggy’s expansion strategy involved organising resources by training delivery partners and optimising kitchen operations, ensuring effective service in new towns.

Types of Organisational Structures: Functional vs Divisional

Organisations choose different structures based on their size, goals, and operations. The two main types are:

Example:

• A manufacturing company may use functional structure with departments like production and sales.
• Wipro uses divisional structure with subsidiaries focused on different product lines.

Choosing the right structure helps in better control and faster decision-making.

Formal and Informal Organisation: Understanding the Difference

In every workplace, two types of organisations exist simultaneously:

• Formal Organisation: The official, structured system defined by management. It includes defined roles, responsibilities, authority, and communication channels.

• Informal Organisation: The network of social relationships that develop naturally among employees through interactions, friendships, and shared interests.

Both organisations coexist and influence workplace culture. Managers should understand informal groups to maintain harmony and improve motivation.

Delegation and Decentralisation: Enhancing Organising

Delegation and decentralisation are key concepts that empower employees and improve organisational efficiency:

• Delegation: The process by which a manager assigns responsibility and authority to subordinates to perform specific tasks while retaining overall accountability.

• Decentralisation: The systematic delegation of authority throughout all levels of management, allowing lower-level managers to make decisions independently.

Importance:

• Speeds up decision-making
• Develops managerial skills
• Reduces burden on top management
• Encourages employee initiative

Example:

In a school drama society, the teacher delegates the task of costume management to a student leader (delegation). If the student leader is also empowered to make decisions on costume purchases without teacher approval, that shows decentralisation.