Class 12 Business Studies - KERALA
Organising
The chapter Organising in Class 12 Business Studies under the Kerala SCERT syllabus explores the second crucial function of management. It deals with identifying and grouping activities, defining roles, establishing authority-responsibility relationships, and delegating power to achieve organizational goals efficiently. For board exams, this chapter is high-scoring and frequently tests your understanding of organizational structures, delegation vs. decentralization, and the distinction between formal and informal organizations. Mastering this chapter helps you understand how businesses structure their operations to translate plans into reality.
Start Learning FreeKey Concepts
Organising Process
The step-by-step procedure of identifying work, departmentalizing activities, assigning duties, and establishing reporting relationships.
Formal and Informal Organisation
Formal organisation refers to the officially designed structure with clear roles, while informal organisation arises spontaneously from personal social interactions among employees.
Delegation
The transfer of authority and responsibility from a superior to a subordinate, consisting of authority, responsibility, and accountability.
Decentralisation
The systematic dispersal of authority to the lower levels of management, turning every lower-level unit into a decision-making center.
Functional and Divisional Structure
Functional structure groups jobs by major functions like production and sales, whereas divisional structure groups units around product lines or geographic regions.
Important Formulas
Board Exam Info
In the Kerala (SCERT) Class 12 Business Studies examination, the 'Organising' chapter typically carries around 8 to 12 marks. Students can expect direct 1-mark objective questions, 2-mark definitions, 4-mark short answers (often differentiating functional vs. divisional structures or formal vs. informal organisations), and 8-mark essay-type questions focusing on the steps in organising, delegation, or decentralisation.
Frequently Asked Questions
What is the difference between delegation and decentralisation?
Delegation is a process between one superior and a subordinate involving the transfer of authority for a specific task. Decentralisation is a broader policy decision by top management to push down authority to the lowest levels of the organisation.
Can accountability be delegated?
No, accountability cannot be delegated. While a manager can delegate authority and responsibility to a subordinate, the ultimate responsibility for the outcome still rests with the manager.
When is a divisional structure preferred over a functional structure?
A divisional structure is preferred when an enterprise produces a multi-product line or operates in diverse geographical areas, as it promotes flexibility, product specialization, and divisional accountability.
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