NCERT Solutions Class 12 Business Studies Chapter 5

NCERT Solutions Class 12 Business Studies Chapter 5 – Organising

In Class 12, the subject of Business Studies is an integral part of the Commerce curriculum. This curriculum is designed to teach you about business administration and management. Organising is the fifth chapter of the Business Studies syllabus for Class 12 NCERT.  The Class 12 Business Studies Chapter 5 NCERT Solutions are written in such a way that students will be able to get hold of topics quickly. These NCERT Solutions Class 12 Business Studies Chapter 5 will help the students prepare for the forthcoming board examinations. 

Business Studies Class 12 Notes Chapter 5- Organising is written in simple language with point-by-point explanations. Students can access a variety of additional study tools on the Extramarks website in addition to the Class 12 Business Studies Chapter 12 Notes. Students get access to all materials, including NCERT books, CBSE revision notes,  sample papers, past years’ question papers, and so on.

Key Topics Covered in Class 12 Business Studies Chapter 5 Notes

The key topics covered in Extramarks Class 12 Business Studies Chapter 5 notes include

Here’s the detailed information on each subtopic covered in NCERT Solutions Class 12 Business Studies Chapter 5 Organising.

Organising

Organising is a process that starts the implementation of plans by defining roles and working relationships, as well as effectively allocating resources to achieve the indicated and desired outcomes.

Organising is a process that involves coordinating human activities, gathering resources, and integrating them into a coherent whole that can be used to achieve specific goals.

Steps involved in the process of Organising

Organising includes a set of actions that must be completed in order to attain the intended result. Extramarks presents NCERT Solutions Class 12 Business Studies Chapter 5, which provide an overview of the steps involved in the process of Organising:

• Identification and Division of Work: The first stage in the organising process is to identify and divide the work that needs to be done according to previously established plans. The task is broken down into manageable actions to prevent duplication and distribute the staff’s workload.
• Departmentalisation: After the job has been broken down into tiny, manageable chunks, the activities that are similar in nature are grouped together. Specialisation is made easier using these sets. Departmentalisation is the term for this process of grouping.
• Assignment of Duties: It is important to define the responsibilities of distinct job titles and assign tasks to the appropriate people. After departments have been established, each is assigned to a certain person. The personnel of each department are then assigned jobs based on their abilities and competencies.
• Establishing Authority and reporting relationships: Each person should also be aware of who they must obey and to whom they are answerable.

Get on board with Extramarks and  leverage the access to NCERT Solutions Class 12 Business Studies Chapter 5, which will come in handy during your upcoming examination preparation.

Importance of Organising

The following points prepared by the subject matter experts at Extramarks highlight the important role that Organising plays in any business enterprise:

• Benefits of Specialisation: The process of organising results in a systematic distribution of positions among the workforce. Because a particular employee does a certain job on a regular basis, this decreases workload and increases productivity.
• The clarity in working relationships: The formation of working relationships establishes clear lines of communication and identifies who is responsible for what. This eliminates the ambiguity in the transmission of data and commands.
• Optimum utilisation of resources: Organising allows you to make the most use of all of your resources, including material, financial, and human. The correct assignment of jobs prevents work overlap and allows for the most efficient use of resources.
• Adaptation to Change: A business enterprise’s ability to adapt to changes in the business environment is enabled by the organising process. It provides for the appropriate modification of the organisation structure as well as the revision of inter-relationships among management levels, paving the way for a seamless transition.
• Effective administration: Organising gives a detailed definition of occupations and their responsibilities. This eliminates ambiguity and redundancy. The clarity in working connections allows for good task performance.
• Development of Personnel: Organising encourages managers to be more creative. Managers can lessen their burden by delegating ordinary tasks to their employees with effective delegation. Delegation reduces the burden not just because of an individual’s limited ability but also because it allows the management to create new methods and ways of accomplishing duties.
• Expansion and Growth: Organising allows a business to expand and diversify by deviating from established patterns and taking on new challenges.

Students can register at Extramarks to access various other study materials in addition to NCERT Solutions Class 12 Business Studies Chapter 5.

Organisation structure

The outcome of the organising process is the structure of the organisation. The enterprise’s profitability will expand as a result of a well-designed structure. An appropriate organisational structure is required to maintain a seamless flow of information and improve control over a corporate enterprise’s activities.

By controlling and coordinating the roles of employees and departments, an organisation’s structure offers the framework that enables the firm to function as an integrated entity.

Types of Organisation structures

Extramarks NCERT Solutions Class 12 Business Studies Chapter 5 provides students with easy and  well prepared notes on different types of organisational   structures. They are classified  into two categories:

1. Functional Structure: A functional organisation is created by grouping work of a similar kind under functional headings and organising these key functions into different departments. A coordinating head oversees all departments.

Advantages: 

• The duties are similar, fostering control and coordination within a department.
• It aids in the improvement of management and operational efficiency, resulting in an improved profit.
• It results in little duplication of work, resulting in economies of scale and cost reduction.
• Because the focus is primarily on a small set of abilities, it makes staff training easy.
• It ensures that distinct functions are given the attention they need.

Disadvantages: 

• The overall corporate goals are less important in a functional organisation than the goals pursued by a functional head.
• Because information must be shared between functionally distinct departments, it may cause coordination issues.
• When the interests of two or more departments are incompatible, a conflict of interests might occur.
• It can lead to rigidity because people with similar skills and knowledge bases develop a restricted viewpoint and find it difficult to appreciate diverse points of view.

Suitability: It is most suitable when the organisation is large, has a wide range of activities, and operations necessitate a high level of specialisation.

1. Divisional Structure: A divisional structure is a framework that divides work into various departments. Each department has its own leader, and there are no overlapping tasks in such a system. The work environment is well defined.

Advantages: 

• Managers and employees have several opportunities to advance within their departments and become product experts. It helps in enhancing the workforce  efficiency.
• The performance of each division or department may be tracked separately. It enables the top and bad performing sections to be identified.
• The divisions are self-contained, allowing them to make their own decisions, which speeds up the decision-making process. The ability to make quick decisions allows for speedier implementation, which is helpful to the company.
• Having a divisional structure allows you to create new divisions without affecting the activities of the organisation.

Disadvantages: 

• When it comes to allocating finances and resources, there might be disagreements amongst departments.
• Costs may grow as a result of task duplication between departments. There may be some activities that all departments share, and hiring different staff for each department to do these tasks might increase costs.
• There’s a danger that putting greater emphasis on enhancing specific departments would stifle the organisation’s overall growth.

Suitability: A divisional structure is suitable for businesses that manufacture a wide range of products with a diversity of productive resources. When a company expands and wants to hire more people, develop new divisions, and add additional management levels, it will choose to use a divisional structure.

Get on board with Extramarks and get access to NCERT Solutions Class 12 Business Studies Chapter 5, which will come in handy during your upcoming examination preparation.

Formal and Informal Organisation

Extramarks NCERT Solutions Class 12 Business Studies Chapter 5 are especially designed by the subject matter experts, and they provide  notes as desired by the students.. 

Formal Organisation

The term “formal organisation” refers to the framework created by management to fulfil a certain purpose. It clearly defines authority and responsibility boundaries, and it ensures that various activities are coordinated in order to achieve organisational goals.

Advantages: 

• Because mutual interactions are clearly defined, it is easy to assign accountability.
• There is no misunderstanding about what function each member is expected to play because responsibilities are clearly defined. This also aids in the reduction of effort duplication.
• A well-established chain of command is used to ensure command unity.
• It gives the company a sense of security.

Disadvantages:

• Because the established line of command must be followed, formal communication may cause procedural delays, lengthening the time it takes to make a decision.
• Because it does not allow any deviations from clearly drawn out policies, poor organisational procedures may not offer enough acknowledgement of innovative potential.
• Because an organisation focuses a greater emphasis on structure and labour, it isn’t easy to comprehend the human ties inside it.

Informal Organisation

The informal organisation is formed when individuals interact at work and develop a “network of social interactions among workers.” Informal organisations have no written rules, are flexible in form and scope, and lack set communication routes.

Advantages: 

• Prescribed communication channels are not followed. As a result of the unstructured organisation, information is disseminated more quickly and feedback is received more quickly.
• It assists participants in meeting their social requirements and allows them to meet like-minded people. This improves their job happiness by giving them a sense of belonging in the company.
• It aids in the achievement of organisational goals by compensating for shortcomings in the formal structure.

Disadvantages: 

• When an informal organisation spreads rumours, it becomes a destructive force that works against the formal organisation’s best interests.
• If the informal organisation rejects the changes, management may struggle to execute them. Resistance to change can stifle or stifle growth.
• It forces members to adhere to the expectations of the group. This can be damaging to the organisation if the group’s norms are incompatible with the organisation’s goals.

Get on board with Extramarks and get access to NCERT Solutions Class 12 Business Studies Chapter 5, which will come in handy during your upcoming examination preparation.

Delegation

Delegation can be defined as the downward transfer of authority from a superior to a subordinate. It is a requirement for an organisation’s efficient operation since it allows management to focus on high-priority tasks. It also satisfies the subordinate’s desire for recognition while also allowing them to grow and exercise initiative. Extramarks NCERT Solutions Class 12 Business Studies Chapter 5 provides a pointwise explanation of the topic.

Elements of Delegation:

• Delegation gives a person the authority to command or control a subordinate. This allows them to make judgments about what needs to be done and who will be responsible for accomplishing it. The chain of command begins at the top of the organisation and ends at the bottom. The delegation of authority aids in the maintenance of discipline and compliance.
• The section when the subordinate has to stick to the work at hand is called responsibility. The subordinate should do an excellent job on the assigned task. A subordinate’s responsibility is to his superior.
• The superior must be held responsible for the results of the task that he has delegated to his subordinate. The superior should maintain track of the subordinate’s job and ensure that it is completed successfully.

Importance of Delegation:

• Managers are able to work more effectively as a result of employee empowerment since they have more time to focus on essential issues.
• Delegation aids in the development of future managers. Employees are empowered by delegation because it allows them to put their abilities to use, gain experience, and advance to higher positions.
• Employees’ self-esteem and confidence grow as a result of their job responsibilities. They are motivated and strive to enhance their performance.
• Delegation aids an organisation’s expansion by offering a ready workforce to take on leadership roles in new endeavours.
• Delegation of authority creates superior-subordinate relationships, which are the foundation of the management hierarchy. The degree and flow of power determine who has to report to whom.

Students can register at Extramarks to access various other study materials in addition to NCERT Solutions Class 12 Business Studies Chapter 5.

Decentralisation

The division of decision-making tasks among hierarchical levels is referred to as decentralisation. Simply put, decentralisation refers to the delegation of authority at all levels of a company. Lower levels share decision-making authority and, as a result, are closest to the sites of action. NCERT Solutions Class 12 Business Studies Chapter 5 by Extramarks explains decentralisation.

Importance of Decentralisation:

• Decentralisation encourages subordinates to be self-sufficient and confident.
• It is a method of management education as well as a chance for trained personnel to put their skills to use in real-world scenarios.
• Decisions are made at the levels closest to the action points, and because there is no need for permission from many levels, the process is significantly faster. Information is also less likely to be corrupted because it does not have to go via extensive routes.
• Because they are given the freedom to act and decide within the constraints specified by the superior, decentralisation reduces the degree of direct control conducted by a superior over the actions of a subordinate.
• Productivity levels rise as each department strives to outperform the others, and the organisation is able to earn greater profits, which may be utilised for expansion.
• Decentralisation allows for evaluation of performance at each level, and departments may be held individually accountable for their outcomes.

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NCERT Solutions Class 12 Business Studies Chapter 5 Organising NCERT Solutions 

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By referring to Extramarks NCERT Solutions Class 12 Business Studies Chapter 5, students can easily understand the Nature and Significance of Management.f

Key Features of NCERT Solutions Class 12 Business Studies Chapter 5

Students must study all previous concepts in order to do well in the exam. As a result, NCERT Solutions Class 12 Business Studies Chapter 5 provides a detailed answer to all questions. Extramarks is the best option for a variety of reasons:

• It covers all the chapter end questions along with their comprehensive answers explained in detailed with appropriate examples.

• These notes have been prepared as per the  latest CBSE guidelines.
• The solutions are prepared by faculty experts in the field of Business Studies.
• These notes will prove beneficial for students during their final revision and  clarify all their doubts ahead of the exam.