BUSINESS STUDIES — CLASS 12
Chapter 5: Organising (Comprehensive Board Exam Notes)
CBSE Board Exam Ready Strictly NCERT Aligned High-Yield Revisions
1. Meaning & Process of Organising
Meaning: Organising is the process of identifying and grouping the work to be performed, defining responsibility
and authority, and establishing relationships to enable people to work most effectively together in accomplishing
objectives.
NCERT Definition Keyword Check: Identification of work → Grouping of activities → Assignment of duties
→ Establishing reporting relationships.
Steps in the Organising Process (Sequence is Mandatory)
1. Identification and Division of Work: The total work is divided into manageable activities according to a
predetermined plan. This prevents duplication of effort and avoids overburdening employees.
2. Departmentalisation: Activities of a similar nature are grouped together into major departments (e.g.,
Production, Marketing, Finance, HR).
3. Assignment of Duties: Once departments are created, work is allocated to members based on their skills,
qualifications, and capabilities.
4. Establishing Reporting Relationships: Every individual knows from whom they have to take orders and to
whom they are accountable. This creates a clear hierarchy and scalar chain.
2. Importance of Organising
• Benefits of Specialisation: Systematic division of work into specific jobs leads to repeated performance,
resulting in maximum efficiency and specialisation.
• Clarity in Working Relationships: Clearly defines lines of authority and responsibility, eliminating ambiguity in
transfer of instructions.
• Optimum Utilisation of Resources: Proper allocation of jobs avoids overlap, waste of resources, and
duplication of work.
• Adaptation to Change: Enables an organisation structure to easily accommodate modifications arising from
dynamic economic/external environments.
• Effective Administration: Clear job descriptions and transparent reporting hierarchy prevent confusion and
administrative delays.
• Development of Personnel: Managerial delegation allows superiors to focus on strategic areas, while
subordinates acquire skills and decision-making confidence.
• Expansion and Growth: Allows enterprises to add more job positions, departments, and new product lines
seamlessly.
Class 12 Business Studies | Chapter 5: Organising Page 1 of 3
Chapter 5: Organising (Comprehensive Board Exam Notes)
CBSE Board Exam Ready Strictly NCERT Aligned High-Yield Revisions
1. Meaning & Process of Organising
Meaning: Organising is the process of identifying and grouping the work to be performed, defining responsibility
and authority, and establishing relationships to enable people to work most effectively together in accomplishing
objectives.
NCERT Definition Keyword Check: Identification of work → Grouping of activities → Assignment of duties
→ Establishing reporting relationships.
Steps in the Organising Process (Sequence is Mandatory)
1. Identification and Division of Work: The total work is divided into manageable activities according to a
predetermined plan. This prevents duplication of effort and avoids overburdening employees.
2. Departmentalisation: Activities of a similar nature are grouped together into major departments (e.g.,
Production, Marketing, Finance, HR).
3. Assignment of Duties: Once departments are created, work is allocated to members based on their skills,
qualifications, and capabilities.
4. Establishing Reporting Relationships: Every individual knows from whom they have to take orders and to
whom they are accountable. This creates a clear hierarchy and scalar chain.
2. Importance of Organising
• Benefits of Specialisation: Systematic division of work into specific jobs leads to repeated performance,
resulting in maximum efficiency and specialisation.
• Clarity in Working Relationships: Clearly defines lines of authority and responsibility, eliminating ambiguity in
transfer of instructions.
• Optimum Utilisation of Resources: Proper allocation of jobs avoids overlap, waste of resources, and
duplication of work.
• Adaptation to Change: Enables an organisation structure to easily accommodate modifications arising from
dynamic economic/external environments.
• Effective Administration: Clear job descriptions and transparent reporting hierarchy prevent confusion and
administrative delays.
• Development of Personnel: Managerial delegation allows superiors to focus on strategic areas, while
subordinates acquire skills and decision-making confidence.
• Expansion and Growth: Allows enterprises to add more job positions, departments, and new product lines
seamlessly.
Class 12 Business Studies | Chapter 5: Organising Page 1 of 3
