Class 12 Business Studies - BIHAR
Organising
The chapter Organising in Class 12 Business Studies explores the second vital function of management, which involves identifying and grouping activities, establishing authority-responsibility relationships, and mobilizing resources to achieve organizational goals. For Bihar School Examination Board (BSEB) students, mastering this chapter is essential as it forms the bridge between planning and directing. Board exams frequently test concepts like the organizing process, formal and informal organizations, functional and divisional structures, delegation, and decentralization through both objective questions and long-answer descriptive problems.
Start Learning FreeKey Concepts
Organising Process
A systematic step-by-step procedure starting from identification and division of work, grouping similar tasks into departments, assigning duties, and finally establishing reporting relationships.
Functional Structure
An organizational design where jobs are grouped and departments are created based on major functions of the business such as production, marketing, finance, and human resources.
Divisional Structure
An organizational structure created by grouping activities on the basis of products or services offered, or geographical territories, commonly used by multi-product companies.
Delegation of Authority
The transfer of authority and decision-making power from a superior to a subordinate, consisting of three core elements: authority, responsibility, and accountability.
Decentralization
The systematic dispersal of authority to make decisions at all levels of the management hierarchy, reducing the burden on top management and empowering lower-level employees.
Important Formulas
Board Exam Info
In the Bihar (BSEB) Class 12 Business Studies examination, the chapter 'Organising' generally carries around 8 to 12 marks. Questions usually include objective (multiple-choice) questions, short-answer questions (worth 2 or 3 marks) regarding functional versus divisional structures or delegation versus decentralization, and long-answer descriptive questions (worth 5 marks) detailing the steps in the organizing process.
Frequently Asked Questions
What is the main difference between functional and divisional structures?
A functional structure groups jobs by specific business functions like production or sales, making it economical for single-product firms. A divisional structure groups units by product lines or regions, making it ideal for multi-product companies seeking flexibility and growth.
Can responsibility be delegated?
No, responsibility cannot be entirely delegated. While authority and accountability can be shared or passed down, the ultimate responsibility for completing a task always remains with the superior who assigned it.
What is the difference between delegation and decentralization?
Delegation is a bilateral process between a specific superior and subordinate restricted to lower levels of workload sharing, whereas decentralization is a policy decision by top management that systematically pushes decision-making authority across all levels of the organization.
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