Class 12 Business Studies - MAHARASHTRA

Organising

The chapter Organising in Class 12 Business Studies under the Maharashtra State Board (MSBSHSE) focuses on the second crucial function of management. It explores how managers identify and group activities, assign duties, establish reporting relationships, and allocate resources to achieve organizational goals effectively. Students will learn the step-by-step organizing process, the importance of structure, and the differences between formal and informal organizations. Delegation of authority, decentralization, and the principles of span of management are also extensively covered. This chapter carries significant weightage in board exams and forms the backbone of practical management case studies.

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Key Concepts

Organising Process

A systematic procedure involving identification and division of work, departmentalization, assignment of duties, and establishing reporting relationships.

Organization Structure

The framework within which managerial and operating tasks are performed; broadly classified into functional structure and divisional structure.

Delegation of Authority

The downward transfer of authority from a superior to a subordinate, consisting of three elements: authority, responsibility, and accountability.

Decentralization

The systematic delegation of authority at all levels of management, giving lower-level managers more autonomy in decision-making.

Formal vs Informal Organisation

Formal organization is deliberately designed by management with official lines of authority, while informal organization arises spontaneously out of social interactions among employees.

Important Formulas

Responsibility = Authority (They must be co-extensive)
Accountability = Responsibility cannot be delegated
Total Delegation = Authority + Responsibility + Accountability
Span of Management = Number of subordinates reporting directly to a superior

Board Exam Info

In the Maharashtra State Board (MSBSHSE) Class 12 Business Studies examination, the 'Organising' chapter typically carries around 8 to 12 marks with options. Common question types include distinction between formal and informal organization, advantages and disadvantages of functional vs. divisional structures, principles of delegation, and case-study-based application questions.

Frequently Asked Questions

Delegation is a process between one superior and one subordinate limited to task sharing, whereas decentralization is a policy decision by top management to push authority down to lower levels across the entire organization.

Delegation is a process between one superior and one subordinate limited to task sharing, whereas decentralization is a policy decision by top management to push authority down to lower levels across the entire organization.

Can accountability be delegated?

No, accountability cannot be delegated. Even though a manager delegates authority and assigns responsibility to a subordinate, the ultimate responsibility for the final outcome remains 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 accountability.

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