{"id":42951,"date":"2019-06-21T07:16:19","date_gmt":"2019-06-21T07:16:19","guid":{"rendered":"https:\/\/cbselibrary.com\/?p=42951"},"modified":"2020-11-28T09:22:17","modified_gmt":"2020-11-28T03:52:17","slug":"plus-two-business-studies-notes-chapter-5","status":"publish","type":"post","link":"https:\/\/cbselibrary.com\/plus-two-business-studies-notes-chapter-5\/","title":{"rendered":"Plus Two Business Studies Notes Chapter 5 Organising"},"content":{"rendered":"
Organising<\/strong><\/p>\n Organising is one of the most important functions of management, which includes<\/p>\n Step in the Process of Organising<\/strong><\/p>\n 1) Division of Work: The first step in the process of organising involves identifying and dividing the work that has to be done. Division of work leads to specialisation! Importance of Organising<\/strong><\/p>\n Organisational Structure<\/strong><\/p>\n The organisation structure can be defined as the framework within which managerial and operating tasks are performed. It specifies the relationships between people, work and resources.<\/p>\n Span of Management: Span of management or span of control refers to the number of subordinates that can be effectively managed by a superior.<\/p>\n Types of Organisation Structures<\/strong><\/p>\n The organisational structure can be classified under two categories.<\/p>\n 1. Functional Structure: The functional structure is formed by grouping together the entire work to be done into functional departments. Eg. Production department, marketing department, etc.<\/p>\n <\/p>\n Advantages:<\/p>\n Disadvantages:<\/p>\n 2. Divisional Structure: Grouping of activities on the basis of different product manufactured are known as divisional structure of organisation. Each division has a divisional manager responsible for performance. Each division is multifunctional because within each division functions like production, marketing, finance etc. are performed together to achieve a common goal.<\/p>\n <\/p>\n Advantages:<\/p>\n Disadvantages:<\/p>\n Differences between Functional and Divisional Structure<\/strong><\/p>\n Functional Structure:<\/p>\n Divisional Structure:<\/p>\n Formal Organisation<\/strong><\/p>\n Formal organisation refers to an organisation structure which is deliberately created by the management to achieve the objectives. It is a system of well – defined job in terms of authority, responsibility and accountability.<\/p>\n Features:<\/p>\n Advantages:<\/p>\n Disadvantages:<\/p>\n Informal Organisation<\/strong><\/p>\n Informal organisation refers to relationship between individuals in the organisation based on interest, personal attitude, emotions, likes, dislikes etc. The network of social groups based on friendship is called informal organisation.<\/p>\n Features:<\/p>\n Advantages:<\/p>\n Disadvantages:<\/p>\n Difference between Formal Organisation and Informal Organisation<\/strong><\/p>\n Delegation of Authority<\/strong><\/p>\n Delegation means the granting of authority to subordinates to operate within the prescribed limits. It enables the manager to distribute his workload to others so that he can concentrate on important matters.<\/p>\n Elements of Delegation:<\/p>\n Importance of Delegation of Authority:<\/p>\n Difference between Authority, Responsibility and Accountability<\/strong><\/p>\n Decentralisation<\/strong><\/p>\n Decentralisation refers to a systematic dispersal of authority to the lower levels of the organisation. Here decision making authority is shared with lower levels in the organisation.<\/p>\n Centralisation and Decentralisation: An organisation is centralised when decision-making authority is retained by higher management levels whereas it is decentralised when such authority is delegated to lower levels of management. There must be a balance between centralisation and decentralisation.<\/p>\n Importance of Decentralisation:<\/p>\n Difference between Delegation and Decentralisation<\/strong><\/p>\n\n
\n2) Departmentation: The second step is to group similar or related jobs into larger units, called departments. The grouping of activities is known as departmentation.
\n3) Assignment of duties: The next step is to allocate the work to various employees according to their ability and competencies.
\n4) Establishing authority – responsibility relationship: The last step is creation of authority – responsibility relationship among the job positions. It helps in the smooth functioning of the organisation.<\/p>\n\n
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\n Formal organisation<\/td>\n Informal organisation<\/td>\n<\/tr>\n \n 1) It is deliberately created by top level management.<\/td>\n 1) It arises automatically as a result of social interaction among the employees.<\/td>\n<\/tr>\n \n 2) It has pre-determined purpose.<\/td>\n 2) It has no pre\u00addetermined purpose.<\/td>\n<\/tr>\n \n 3) It is highly rigid.<\/td>\n 3) It is more flexible.<\/td>\n<\/tr>\n \n 4) Communication is allowed through the scalar chain.<\/td>\n 4) Communication is allowed through all channels networks.<\/td>\n<\/tr>\n \n 5) Managers are leaders.<\/td>\n 5) Leaders are chosen voluntarily by the members.<\/td>\n<\/tr>\n \n 6) It is based on authority and responsibility.<\/td>\n 6) There is no authority and responsibility relationship.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \n
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\n Authority<\/td>\n Responsibility<\/td>\n Accountability<\/td>\n<\/tr>\n \n Right to command<\/td>\n Obligation to perform an assigned task<\/td>\n Answerability for outcome of the assigned task<\/td>\n<\/tr>\n \n Can be delegated<\/td>\n Cannot be entirely delegated<\/td>\n Cannot be delegated at all<\/td>\n<\/tr>\n \n Arises from formal position<\/td>\n Arises from delegated authority<\/td>\n Arises from responsibility<\/td>\n<\/tr>\n \n Flows downward from superior to subordinate<\/td>\n Flows upward from subordinate to superior<\/td>\n Flows upward from subordinate to superior<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \n