Class 12 Business Studies - MP
Organising
The chapter Organising in Class 12 Business Studies (MPBSE) deals with the process of identifying and grouping work to be performed, defining responsibility and authority, and establishing relationships. It bridges the gap between planning and execution by translating plans into action. Students will learn about organisational structures (functional and divisional), delegation of authority, decentralization, and the formal and informal organization. This chapter is vital for board exams as it tests both theoretical understanding and practical application through case studies, helping students understand how enterprises structure their workforce to achieve objectives efficiently.
Start Learning FreeKey Concepts
Organising Process
The systematic process of identifying work, departmentalizing activities, assigning duties, and establishing reporting relationships.
Functional Structure
An organisational design where jobs are grouped based on major functions like production, finance, marketing, and human resources.
Divisional Structure
Grouping activities based on product lines or geographical regions, where each division is a multi-functional unit.
Delegation
The transfer of authority from a superior to a subordinate, consisting of three elements: Authority, Responsibility, and Accountability.
Decentralization
The systematic dispersal of authority to make decisions at all levels of management, pushing decision-making power down the chain of command.
Formal and Informal Organisation
Formal organisation is deliberately designed by management with official lines of authority, whereas informal organisation emerges spontaneously from social interactions.
Important Formulas
Board Exam Info
In the MPBSE Class 12 Business Studies board exam, the 'Organising' chapter typically carries around 6 to 8 marks. Questions usually include objective-type questions, short-answer questions (3 marks) differentiating between functional and divisional structures or formal and informal organisations, and long-answer/case-based questions (4-5 marks) focusing on delegation, decentralization, or the organizing process.
Frequently Asked Questions
What is the difference between delegation and decentralization?
Delegation is a process between one superior and one subordinate limited to task sharing, while decentralization is a policy decision by top management to push decision-making authority down to lower levels.
Can responsibility be delegated?
No, responsibility cannot be entirely delegated. While authority can be passed on, the ultimate accountability for the task remains with the superior.
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, growth, and accountability.
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