Tuesday, 19 June 2018

CBSE Class 12 - Business Studies - What is Organizing and its importance? (Q and A) (#cbsenotes)(#eduvictors)

Organizing and its importance

(Q and A)

CBSE Class 12 - Business Studies - What is Organizing and its importance? (Q and A) (#cbsenotes)(#eduvictors)

Q1: Define organising.

Answer: Organising can be defined as a process that initiates implementation of plans by clarifying jobs, working relationships and effectively deploying resources for attainment of identified and desired results.

Therefore, it is a process, which coordinates human efforts, assembles resources and integrates both into a unified whole to be utilized for achieving specified objectives.

Q2: What is the significance of organising as a function to management?

Answer: Organising as a function to management leads to—

• Creation of organisational structure with suitable personnel.

• Designing specific roles to eliminate ambiguity.

• Defining inter-relationship among personnel for productive cooperation.

• Clarifying authority and responsibility for results and logical grouping of activities.

Q3: What are the steps involved in the process of organising?

Answer: In order to complete the organising function fo managemtn, the following steps are taken:

1. Identification and division of work.

2. Departmentalisation.

3. Assignment of duties.

4. Establishing reporting relations.

1. Identification and division of work.
At this step, the total work is divided into various activities, for eg. various activities of a shoe manufacturing company can be purchase of raw material, production, stocking of goods, research, advertisement, sales etc.

2. Departmentalisation.
The activities of the same nature are grouped together and assigned to a particular department. It is known as grouping, for e.g., advertisement and sales can be given to the markating department.

3. Assignment of duties.
At this stage, the responsibility of each individual or post is decided. E.g., the purchase manager will be given the task of purchasing goods, the sales manager will be given the work of sale of goods etc. while assigning duties, it is important to match nature of the work and the capabilities of the person to whom the work is given.

4. Establishing reporting relations.
Each individual should also know from whom he has to take orders and to whom he is accountable. It helps in coordination among various departments.

Q: List down the importance of organising.

Importance of Organising

1. Benefits of specialization:
In organizing every individual is assigned a part of total work and not the whole task. This division of work into smaller units and repetitive performance leads to specialization. Thus organizing promotes specialisation which in turn leads to efficient & speedy performance of tasks.

2. Clarity in working relationship:
It helps in creating well defined jobs and also clarifying the limits of authority and responsibility of each job. The superior-subordinate relationship is clearly defined in organizing.

3. Effective Administration:
It provides a clear description of jobs and related duties which helps to avoid confusion and duplication. Clarity in working relationships enables proper execution of work which results in effective administration.

4. Optimum utilization of resources:
The proper assignment of jobs avoids overlapping/duplication of work. This helps in preventing confusion and minimizing the wastage of resources and efforts.

5. Adoption to Change: 
A properly designed organizational structure is flexible which facilitates adjustment to changes in workload caused by change in external environment related to technology, products, resources and markets.

6. Development of Personnel: 
Sound organization encourages initiative and relative thinking on part of the employees. When managers delegate their authority, it reduces their workload so they can focus on more important issues related to growth & innovation. This also develops the subordinates’ ability and helps him to realize his full potential.

7. Expansion and growth: 
It helps in growth & diversification of an enterprise by adding more job positions, departments, product lines, new geographical territories etc.

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