Mention the merits and demerits of the divisional structure. These are the Organizing class 12 Notes Business Studies prepared by team of expert teachers. Fulfillment of social needs – enhances job satisfaction which gives them a sense of belongingness in the organization. (2) Organizations which require high degree of functional specialization with diversified activities. It is based on rules and procedures which are in written form. - This helps in coordination. It refers to the network of social relationships which develops automatically. Free PDF download of Class 12 Business Studies Chapter 5 - Organising Revision Notes & Short Key-notes prepared by our expert Business Studies teachers from latest edition of CBSE(NCERT) books. It specifies the relationships between people, work and resources. It gives rise to duplicity of efforts among divisions & increases cost. The sWtudents will not miss any concept in these Chapter wise question that are specially designed to tackle Exam. 3. 1. CBSE. As far as possible, it should define expected results along with the job. Name the organisational structure that assists in managerial and operational efficiency. Selfish Attitude: Every division tries to display better performance and sometimes even at the cost of other divisions. This division of work into smaller units and repetitive performance leads to specialization. is already set a bench mark in the history of digital education by providing the most latest and accurate study material as per the respective boards. 1. Distinguish between Functional and Divisional structure on the following bases: (i) Formation (ii) Managerial development (iii) Responsibility (iv) Suitability. 4. structure that is designed by the management to accomplish organizational objectives.. - It specifies clearly the boundaries of authority & responsibility and there is a systematic coordination among the various activities to achieve organizational goals. Answer: The statement is incorrect as the principle of completeness of the responsibility is being violated in this case. The Span of management to a large extent gives shape to the organization structure. The main purpose of this organization, structure is getting psychological satisfaction. activities of finance should be assigned to persons having qualifications and experience in finance e.g. This determines the levels of management in the structure. C.A‘s. 1. ‘Organizing is the 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.’, Steps Involved in the Process of Organizing. 3. Relations among persons working on different posts are determined. According to Allen,‘ Decentralisation refers to systematic efforts to delegate to the lowest level, all authority except the one which can be exercised at central points.‟. In such an organization very little authority is delegated to managers at middle and lower levels. Thus organizing promotes specialization which in turn leads to efficient & speedy performance of tasks. Responsibility is an attribute of the superior who delegates the work to his subordinate. In formal organisation, flow of communication takes place through the scalar chain whereas under informal communication it can take place in any direction. Hence overall organizational objectives suffer. 3. Authority is delegated to the lower levels of management. Then marketing manager will be answerable for the work performance of his subordinates. You can also find Chapter 5 - Organising (Class Notes), BST, Class 12, CBSE | EduRev Notes ppt and other Commerce slides as well. It refers to the structure of well defined authority and responsibility. Difference between – Delegation and Decentralization. - Management must ensure that all the activities required to achieve organizational objectives are identified. All books are in clear copy here, and all files are secure so don't worry about it. An effective manager is recognized through his span of management. 5. Growth and Expansion: It facilitates growth and expansion as new divisions can be added without disturbing existing departments. Importance of the Delegation of Authority. Download Subhash Dey Business Studies For 12th Cbse File book pdf free download link or read online here in PDF. It creates rumours: All the persons in an informal organization talk careless and sometimes a wrong thing is conveyed to the other persons. Answer: Divisional structure promotes flexibility and initiative. Departmentalization: Describe the features of formal organisation? may form their own informal groups. Firm needs to balance the two. In this way the opportunity to take decisions helps in the development of the organization. Relation between Span of Management and Organization structure: Span of management refers to the number of subordinates that can be effectively managed by a superior. Performance & security by Cloudflare, Please complete the security check to access. It can be easily united, Performance can be easily evaluated and remedial action can be taken, It promotes expansion and growth, as new divisions can be added, The equipment cannot be completely utilised, Disagreement may arise between the divisional heads, This gives rise to duplication of effort among its various divisions. The approach followed by ‘Home Creations Ltd.’ to run their stores successfully is Decentralisation. Download revision notes for Organizing class 12 Notes and score high in exams. The authority stays concentrated only in few hands at the higher level of management. The superior-subordinate relationship is clearly defined in organizing. Clarity in working relationships enables proper execution of work which results ineffective administration. Cloudflare Ray ID: 5f7ad2275f411fb9 CBSE Class 12 Business Studies Ch – 5 Test Paper, Which of the following arises from delegation of authority? 3. CHAPTER – 5 More suitable for organisations engaged in production and distribution of a single product or a small number of products. It facilitates specialization. Clarity in working relationship: It helps in creating well defined jobs and also clarifying the limits of authority and responsibility of each job. - Aims at achieving co-ordination and facilitate unity of action.