Meaning

In general words, Organising refers to arranging

everything in orderly form and making most efficient
use of resources
e.g. School plans to conduct sport day or annual
function. All teacher and students are assigned
different duties, various resources are arranged and a
coordinator is appointed whom one report for the
work done and pending. This whole arrangement is
called organising.

NCERT
For planning to be fruitful a number of considerations like resources that will be needed, optimum
utilisation of the same translation of work into attainable tasks, empowering the workforce to accomplish
these tasks etc.
It is a means for translating plans into action
Organising essentially implies a process which coordinates human efforts, assembles resources and
integrates both into a unified whole to be utilised for achieving specified objectives.
 Organising Process

ID AE

Identification and Assignment of Establishing

Departmentalisation reporting
Division of work duties
relationship
 KEY WORDS

Organising Process
a) Identifying and division of work or activities
b) Grouping the activities
c) Creating departments
d) Assigning duties
e) Giving or assigning responsibility or authority
f) Creating a framework within which operational and managerial activities are performed
g) Creating superior subordinates’ relationship
h) Creating managerial hierarchy
i) Determining style of working of an organisation
j) Creating relationship between authority and responsibility
1. Identification and Division of work:- This function begins with the
division of total work into smaller units. Each unit of total work is called
a job. And one person in an organisation must assign only one job
matching to his skills, qualification, expertise, interest and experience it
leads to specialisation.

2. Departmentalisation:- Here job of similar category are put under one

department common way of departmentation are.
Two ways of Departmentation
A. Functional Departmentation B. Divisional Departmentation

SUNIL PANDA COMMERCE CLASSES

 WAYS OF DEPARTMENTATION

Functional Departmentation
Under this method job related to common
function are grouped under one department.
e.g. all the job related to production are grouped
under production department

Divisional Departmentation
Under this method job related to one product
are grouped under one department e.g. if an
organisation is producing to production , sales
and marketing of cosmetics are grouped under
one department
SUNIL PANDA COMMERCE CLASSES
3. Assignment of duties:- Here different individuals are assign
duties matching to his skills and qualification employees are
assign duties by giving them a document called job description
it contains the responsibilities and duties towards the job.

4. Establishing reporting relationship:- To perform the assigned

job by the managers individuals of need some authority. So in
fourth step of organising all the individuals are assigned some
authority matching to the responsibility this leads to creation of
superior subordinate relationship the individual having higher
authority become the superior and with less authority becomes
subordinates here managerial hierarchy gets created and
principle of scalar chain follows this hierarchy.
It create a hierarchal structure and helps in coordination
amongst various departments.

SUNIL PANDA COMMERCE CLASSES

 Importance/ Significance of Organising

Benefit in specialisation

Role Clarity Coordination

Optimum utilisation of resources Expansion and

growth
 Importance/ Significance of Organising

1. Benefit in specialisation:- Due to division of work each

individual is specialised in his work

2. Clarity in Working Relationship :- In the organising

function Individuals are assigned job responsibility and
authority so the role of every manger is clear.
This removes ambiguity in transfer of information and
instructions. It helps in creating a hierarchical order
3. Optimum utilisation of resources:- In the organising function there are very few chances of duplication of
work. Every individual is specialised about the work hence resources are utilised carefully without any
wastage

The proper assignment of jobs avoids overlapping of work and also makes possible the best use of
resources. Avoidance of duplication of work helps in preventing confusion and minimising the wastage of
resources and efforts.

4. Coordination:- In any organisation every development is

linked with other department hence members of each
department coordinates with other departments.

5. Expansion and growth:- With optimum utilisation of

resources and proper division of work companies can easily
meet the challenges and expand their business.
 Organisational Structure
When the manager are performing organising function an organisational structure gets created
automatically, which defines the job position, the authority, responsibilities of different employees.
Framework within which managerial and operative task are performed

NCERT
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.
 Span of management
It means the number of subordinates can be work under one supervisor.

Narrow Span of Management

A narrow span of control is a management style

where supervisors manage only a small number
of employees.
It Results Tall Structure

Wider Span of Management

Wide span of control means a manager can

supervise and control effectively a large number
of persons at a time

It Results Flat Structure

SUNIL PANDA COMMERCE CLASSES
 Types of organisational Structure
When the job related to common function are grouped under one
department this types of organisational structure is called functional
Functional structure.
Structure
a) Division of work as per functions

b) Specialisation in every function (Occupational specialisation)

NCERT
FUNCTIONAL STRUCTURE: IT IS c) Grouping of similar nature of jobs
MOST SUITABLE WHEN THE SIZE OF
THE ORGANISATION IS LARGE, HAS d) Uniproduct or single or one type of product manufacturing
DIVERSIFIED ACTIVITES AND company
OPERATIONS REQUIRE A HIGH
DEGREE OF SPECIALISATION e) Economical & Difficult to find any one Accountable
(IT LEADS TO OCCUPATIONAL
SPECIALISATION) f) Limited types of Training (Inflexible)

g) Minimal duplication of effort

h) It ensures that different functions get due attention.

 Advantages of Functional Structure

Specialisation:- When the activities are classified as per the skills qualification, and activities related to
same function are grouped under same department, it leads to specialisation.
Easy supervision:- The supervisor becomes familiar with the type of task to be performed because all the
task are related to one function only as a result he can easily supervise and guide employees
Easy coordination:- All the department are inter-dependent on each other function of one department
depends on other department so it leads to easy coordination. e.g. production department depends upon
purchase department for raw material.
It helps in managerial efficiency:- Manager of one department are performing same type of function again
and again which makes them specialised and improves their efficiency.
Effective training:- It makes training of the employees more easy as they trained in limited types of skill i.e.
employees of production department are given training of production technique only
 Disadvantages of Functional Structure

a) The department become specialised in their own way only they fail to see the prospectus of whole
organisation as a result organisational goal can’t achieved
b) When department become too large then coordination decrease and there is delay in decision
c) The department heads start thinking about their department this leads to conflicts among various
departments.
d) if organisational goal is not achieved it becomes very difficult to make any department accountable for
this because all department are inter related.
e) In functional structure employees get raining of one function only he is not able to perform any other
function i.e. inflexibility occurs.
 Types of organisational Structure
Under this structure job related to one product are grouped under one
Divisional department.
Structure
a) Division of work as per product

NCERT b) Grouping of jobs related to common products

Each division is
c) Specialisation in each product
multifunctional because
within each division d) Multiproduct manufacturing companies
functions like production,
marketing, finance, e) Organisations adding more lines of products
purchase, etc., are
performed together to f) Organisations planning for expansion and diversification
achieve a common goal.
Each division is self g) Easy to fix accountability
contained as it develops
h) Flexible
expertise in all functions
related to a product line. i) Easy to Add More product
 Advantages of Divisional Structure

Product specialisation:- All the activities related to one type of product are grouped under one department
this leads to product specialisation
Fast decision making:- One product has one department so it takes less time in decision making because
there is no interference of other departments.
Accountability:- You can easily fix accountability in divisional structure here performance of individual
departments can easily assessed.
Flexibility:- employees are one department can do different functions with in the department.
Expansion and growth:- New department can easily introduced by addition of new department. without
affectively other departments.

Disadvantages of Divisional Structure

a) Each department focuses on their product only they fail to see the prospectus of whole organisation
b) Conflicts on allocation of resources among different departments
c) Divisional structure requires huge capital.
 Formal & Informal Organisation

Formal Organisation Informal Organisation

When the managers are carrying organizing In informal organization structure, individual are
process then as a result of organizing process an assigned various job positions while working at those job
organizational structure is created to achieve position the individuals interact with each other and
systematic working and efficient utilization of develop some social and friendly groups in the
resources. This type of structure is known as organization. This network of social and friendly groups
formal organizational structure. forms another structure in the organisation which is
called informal organisational structure
a) Official organisation/ Focus on work
a) Gets created automatically / Network of social
b) Follows scalar chain for communication relationship

c) Main purpose is achieving organisational goal b) For psychological satisfaction and social needs of
employees
d) Includes functional and divisional structure
c) Does not follow scalar chain
e) creates intentionally by manager
d) Includes all recreational activities
 FORMAL ORGANISATION
NCERT
It specifies clearly the boundaries of authority and responsibility and there is a systematic coordination among
the various activities to achieve organisational goals.
ADVANTAGES
There is no ambiguity in the role that each member has to play as duties are specified. This also helps in avoiding
duplication of effort.
Unity of command is maintained through an established chain of command
It is easier to fix responsibility
It provides stability to the organization
LIMITATIONS
procedural delays as the established chain of command has to be followed which increases the time taken for
decision making.
It is difficult to understand all human relationships in an enterprise as it places more emphasis on structure and
work. Hence, the formal organisation does not provide a complete picture of how an organisation works.

SUNIL PANDA COMMERCE CLASSES

 INFORMAL ORGANISATION
NCERT
Interaction among people at work gives rise to a ‘network of social relationships among employees’ called the
informal organisation. Here people interact beyond their officially defined roles.
Informal organisation has no written rules, is fluid in form and scope and does not have fixed lines of
communication.
It emerges spontaneously and is not deliberately created by the management
It has no definite strucure or form because it is a complex network of social relationships among members.
ADVANTAGES
Prescribed lines of communication are not followed. Thus, the informal organisation leads to faster spread of
information as well as quick feedback.
It helps to fulfill the social needs of the members and allows them to find like minded people.
LIMITATIONS
It spreads rumours, it becomes a destructive force and goes against the interest of the formal organisation.
It pressurises members to conform to group expectations. This can be harmful to the organisation if the norms
set by the group are against organisational interests.

SUNIL PANDA COMMERCE CLASSES

Advantages of Formal Organisation

Systematic working

Follow Scalar Chain

Achievement of organizational goal

Coordination

More Emphasis on work

 Disadvantages of Formal Organisation

04

03
No Correct Feedback
02
Ignores social needs of
employees
01 Emphasis on work
only

Delay in action
Advantages of Informal Organisation Disadvantages of Informal Organisation

01 Fast communication Spread rumours

01

02 Fulfils social needs No systematic working

02

03 Correct Feedback May bring negative results

03

04 Coordination

Unity & Togetherness

05
 DELEGATION OF AUTHORITY
Delegation of authority means division of authority and powers downwards to the subordinate
Delegation is about entrusting someone else to do parts of your job
A manager can’t do all the work himself hence be deliberately passes some of his responsibilities to his
subordinates manager also share some of his authority with his subordinates so that responsibilities can be
carried out properly.
a) Sharing of authority and responsibility between superior/subordinates (immediate subordinate)
b) Includes two level only
c) Main purpose is to reduce the burden or workload of manager
d) Routine activity

NCERT
Delegation refers to the downward transfer of authority from a superior to a subordinate. It is a
prerequisite to the efficient functioning of an organisation because it enables a manager to use his time
on high priority activities.
delegation does not mean abdication. The manager shall still be accountable for the performance of the
assigned tasks. Moreover, the authority granted to a subordinate can be taken back and redelegated to
another person.
 ELEMENTS OF DELEGATION

RESPONSIBILY AUTHORITY ACCOUNTABILITY

Authority must be equal to Responsibility

Accountability can never delegated

NCERT
In conclusion, it can be stated that while authority is delegated, responsibility is assumed, accountability is
imposed. Responsibility is derived from authority and accountability is derived from responsibility.
 RELATIONSHIP BETWEEN DELEGATION & DECENTRALISATION
1. Decentralisation is the extension of delegation:- In delegation the authority is shared between two
persons only. i.e. manager and subordinates whereas in decentralisation many people at every level
are involved i.e. directors, production head, production manager, supervisor, etc.

2. Delegation is Necessary in every organisation but decentralisation is not :- Every manager has to
share some authority to the lower level to get work done from them no manager is experts to do all
the activities in the organisation so delegation is necessary but decentralisations is required when an
organisation grows and expands. When delegation is extended then it creates decentralisation.
 Importance of Delegation
1. Motivation of employees
2. Employees development
01 3. Reduce work load of manager
4. Effective management
06 IMPORTANCE
02 5. Facilitates organisational growth
OF 6. Better coordination
DELEGATION
05 03 Involvement of 2 level/ people
Reduce workload & Narrow scope

04 Compulsory Less Autonomy

Responsibility of every manager
 Importance of Delegation

Motivation of employees:- in delegation when manager sharing his

responsibilities and authority with the subordinates it motivates
employees to perform their best ability this a kind of non-financial
incentives.

Employees development:- As a result of delegation employees get more

opportunity to utilise their talents by doing the task of manager
employees develop their skills and they develop a managerial talent for
future

Reduce work load of manager:- In delegation manager are allowed to

share their responsibilities and work with their subordinates which
reduce the workload of managers
 Importance of Delegation

Effective management:- In the process of delegation managers pass their

routine work to the sub-ordinates so they are free to concentrate on
other important matters which helps them to take correct decision on
critical matters

Facilitates organisational growth:- In this process manager deligate

responsibility according to the qualification of subordinates this leads to
employees development and organisation growth

Better coordination:- Delegation need better coordination in process of

sharing authority and responsibility managers develop coordination to do
so.
 DECENTRALISATION

Decentralisation Can be defined as even and systematic distribution of

authority at every level of management here every employee working at
different levels gets some share in the authority.

NCERT
Decentralisation explains the manner in which decision making responsibilities are divided among
hierarchical levels. Put simply, decentralisation refers to delegation of authority throughout all the levels
in the organisation.
In other words decision making authority is pushed down the chain of command. When decisions taken by
the lower levels are numerous as well as important an organisation can be regarded as greatly
decentralised
 Decentralisation (KEY WORDS)
a) Involvement of all levels
b) Autonomy/Belief in subordinates/systematic dispersal of authority to all level
b) Evenly distribution of authority at every level
c) Main purpose is involvement of employees, giving more responsibility to employees at every level
d) Allows freedom of operations and independent decision making at every level.
e) Responsibility of Top level Managers
f) More Freedom of Action
 Importance of Decentralisation

Develop initiative among subordinates. Passing of authority at middle and lower level

Develop managerial talent

for future Facilitates growth

Quick decision making Better control

Relief to top level management

Develop initiative among subordinates. Passing of authority at middle
and lower level : Show the trust and faith of top level in their
subordinates and this trust and faith motivate the employees working
at different levels as they are allowed to take decision without seeking
the approval of superiors.

Develop Managerial talent for future: In decentralisation managers

working at lower and middle level also learn the art of making decisions.
They get the experience of performing activities of top executive and
learn to manage the authority given to them.

Quick decision making: In the decentralisation process, decision making

is not restricted in few hands only but decision-making power is
entrusted to all the manager who are taking actions or performing the
activities. This leads to faster decision.
Relief to top level management: In the process of decentralisation, top
level manager are not overburdened with the responsibilities and
authority as they systematically pass the authority and responsibilities
at different level and they become free.

Facilitate growth: Decentralisation grants more autonomy to lower level.

This help to subordinates to do the work in the manner best suited for
their department. When each department is doing their best then
productivity increases. It leads to increase revenue.

Better control: In decentralisation employees working at different levels

take their own decision and they are personally accountable for their
decisions, they cannot pass the blame to their superiors. With
decentralisation better control can be exercised through score card.
 Difference between delegation and decentralisation
Basis Delegation Decentralisation
Parties Two parties are involved Almost all the employees in organisation are
involved involved
Job Delegation is routine job It is one time decision
Freedom of Less freedom of action due to More freedom of action due to periodic
action continuous supervision by the approval, not continuous supervision
managers
Scope It is a narrow in scope It is wider in scope
Responsibilit It is the responsibility of every manager It is responsibility of top level manager
y
Purpose Reduce the work load of manager To increase the role of subordinate and
giving them more autonomy
Grant of Authority is granted by immediate Authority is granted by top level managers.
authority superior
 LIKE | SHARE | COMMENT
DOWNLOAD SPCC APP CUET LIVE CUET 2025 PREMIUM COURSE