Page 1
ORGANISING
CHAPTER
5
It’s not quite there yet, but the goal is certainly within
reach. One of India’s largest IT solutions providers,
Wipro T echnologies, is taking on the likes of IBM and
Accenture in its effort to be included among the largest
and most successful technology services companies in
the world.
Restructuring Wipro was considered the
most important step in becoming a global giant,
driven by the goal towards improved customer-
orientation.
During the past few months, Wipro separated
itself into several subsidiaries by product line:
telecommunications, engineering, financial
services, etc. Each subsidiary brings in about $300
million in annual earnings and is self-sufficient
with their own accounting books, personnel and
administrative functions.
Wipro shifted from a centralised to
decentralised management system. All
responsibilities for growth lay with the
management of each entity.
“We tried to de-layer the organisation and
empower our business leaders with a much higher
degree of growth responsibility,” said Premji. “We
removed an entire layer [of executives]”.
Way T o Go, Wipro!
Adapted from an article by Heide B. Malhotra
for Epoch Times Washington D.C.
LEARNIN G
OBJECTIVES
Once the plans have been laid down
and objectives specified therein, the
next step is to organise resources
in a manner which leads to the
accomplishment of objectives. A
After studying this chapter you
should be able to:
n Explain the concept of
organising;
n Explain the process of
organising;
n Describe the importance of
organising;
n Explain the meaning, advantages
and disadvantages of functional
organisation;
n Explain the meaning, advantages
and disadvantages of divisional
organisation;
n Explain the meaning, advantages
and disadvantages of formal and
informal organisation;
n Distinguish between formal and
informal organisation;
n Explain the concept of
delegation and decentralisation;
n Describe the importance of
delegation and decentralisation;
and
n Distinguish between delegation
and decentralisation.
critical issue in accomplishing the
goals specified in the planning
process is structuring the work of an
organisation to adapt to the dynamic
business environment. The activities
Ch_05.indd 109 08-08-2022 09:50:36
Rationalised 2023-24
Page 2
ORGANISING
CHAPTER
5
It’s not quite there yet, but the goal is certainly within
reach. One of India’s largest IT solutions providers,
Wipro T echnologies, is taking on the likes of IBM and
Accenture in its effort to be included among the largest
and most successful technology services companies in
the world.
Restructuring Wipro was considered the
most important step in becoming a global giant,
driven by the goal towards improved customer-
orientation.
During the past few months, Wipro separated
itself into several subsidiaries by product line:
telecommunications, engineering, financial
services, etc. Each subsidiary brings in about $300
million in annual earnings and is self-sufficient
with their own accounting books, personnel and
administrative functions.
Wipro shifted from a centralised to
decentralised management system. All
responsibilities for growth lay with the
management of each entity.
“We tried to de-layer the organisation and
empower our business leaders with a much higher
degree of growth responsibility,” said Premji. “We
removed an entire layer [of executives]”.
Way T o Go, Wipro!
Adapted from an article by Heide B. Malhotra
for Epoch Times Washington D.C.
LEARNIN G
OBJECTIVES
Once the plans have been laid down
and objectives specified therein, the
next step is to organise resources
in a manner which leads to the
accomplishment of objectives. A
After studying this chapter you
should be able to:
n Explain the concept of
organising;
n Explain the process of
organising;
n Describe the importance of
organising;
n Explain the meaning, advantages
and disadvantages of functional
organisation;
n Explain the meaning, advantages
and disadvantages of divisional
organisation;
n Explain the meaning, advantages
and disadvantages of formal and
informal organisation;
n Distinguish between formal and
informal organisation;
n Explain the concept of
delegation and decentralisation;
n Describe the importance of
delegation and decentralisation;
and
n Distinguish between delegation
and decentralisation.
critical issue in accomplishing the
goals specified in the planning
process is structuring the work of an
organisation to adapt to the dynamic
business environment. The activities
Ch_05.indd 109 08-08-2022 09:50:36
Rationalised 2023-24
110 Business Studies
of an enterprise must be organised
in such a manner that plans can be
successfully implemented.
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., need to be understood and dealt
with properly.
It is evident from the way Wipro
has moved towards reaching for
it’s goal of becoming a globally
successful technology company,
that organising plays a significant
role in implementation of plans.
What has Wipro done to become a
contending force among other global
giants? Are there lessons to be learnt
from Wipro’s approach?
Wipro organised itself in a manner
that allowed customer orientation to
dominate over other goals and diversified
on the basis of product lines. It also
modified the relationships within the
management hierarchy to suit the goals.
The management function of
organising ensures that efforts are
directed towards the attainment
of goals laid down in the planning
function in such a manner that
resources are used optimally and
people are able to work collectively
and effectively for a common purpose.
Thus, it is in the context of effective
management that the organisation
function earns due importance. It is
a means for translating plans into
action.
The organising function leads to the
creation of an organisational structure
which includes the designing of roles
to be filled by suitably skilled people
and defining the inter relationship
between these roles so that ambi
guity in performance of duties
can be eliminated. Not only is this
important for productive cooperation
between the personnel but also for
clarification of extent of authority,
as well as responsibility for results
and logical grouping of activities.
Meaning Let us take an example to understand
how organising takes place. Have
you ever paid attention to how, the
school fete which you enjoy so much,
actually takes place? What goes on
behind the scene to make it the
desired reality you want? The whole
activity is divided into task groups
each dealing with a specific area like
the food committee, the decoration
committee, the ticketing committee
and so on. These are under the
overall supervision of the official in
charge of the event. Coordinating
relationships are established among
the various groups to enable smooth
interaction and clarity about each
group’s contribution towards the
event. All the above activities are a
part of the organising function.
Organising essentially implies a
process which coordinates human
efforts, assembles resources and
integrates both into a unified whole
Ch_05.indd 110 08-08-2022 09:50:36
Rationalised 2023-24
Page 3
ORGANISING
CHAPTER
5
It’s not quite there yet, but the goal is certainly within
reach. One of India’s largest IT solutions providers,
Wipro T echnologies, is taking on the likes of IBM and
Accenture in its effort to be included among the largest
and most successful technology services companies in
the world.
Restructuring Wipro was considered the
most important step in becoming a global giant,
driven by the goal towards improved customer-
orientation.
During the past few months, Wipro separated
itself into several subsidiaries by product line:
telecommunications, engineering, financial
services, etc. Each subsidiary brings in about $300
million in annual earnings and is self-sufficient
with their own accounting books, personnel and
administrative functions.
Wipro shifted from a centralised to
decentralised management system. All
responsibilities for growth lay with the
management of each entity.
“We tried to de-layer the organisation and
empower our business leaders with a much higher
degree of growth responsibility,” said Premji. “We
removed an entire layer [of executives]”.
Way T o Go, Wipro!
Adapted from an article by Heide B. Malhotra
for Epoch Times Washington D.C.
LEARNIN G
OBJECTIVES
Once the plans have been laid down
and objectives specified therein, the
next step is to organise resources
in a manner which leads to the
accomplishment of objectives. A
After studying this chapter you
should be able to:
n Explain the concept of
organising;
n Explain the process of
organising;
n Describe the importance of
organising;
n Explain the meaning, advantages
and disadvantages of functional
organisation;
n Explain the meaning, advantages
and disadvantages of divisional
organisation;
n Explain the meaning, advantages
and disadvantages of formal and
informal organisation;
n Distinguish between formal and
informal organisation;
n Explain the concept of
delegation and decentralisation;
n Describe the importance of
delegation and decentralisation;
and
n Distinguish between delegation
and decentralisation.
critical issue in accomplishing the
goals specified in the planning
process is structuring the work of an
organisation to adapt to the dynamic
business environment. The activities
Ch_05.indd 109 08-08-2022 09:50:36
Rationalised 2023-24
110 Business Studies
of an enterprise must be organised
in such a manner that plans can be
successfully implemented.
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., need to be understood and dealt
with properly.
It is evident from the way Wipro
has moved towards reaching for
it’s goal of becoming a globally
successful technology company,
that organising plays a significant
role in implementation of plans.
What has Wipro done to become a
contending force among other global
giants? Are there lessons to be learnt
from Wipro’s approach?
Wipro organised itself in a manner
that allowed customer orientation to
dominate over other goals and diversified
on the basis of product lines. It also
modified the relationships within the
management hierarchy to suit the goals.
The management function of
organising ensures that efforts are
directed towards the attainment
of goals laid down in the planning
function in such a manner that
resources are used optimally and
people are able to work collectively
and effectively for a common purpose.
Thus, it is in the context of effective
management that the organisation
function earns due importance. It is
a means for translating plans into
action.
The organising function leads to the
creation of an organisational structure
which includes the designing of roles
to be filled by suitably skilled people
and defining the inter relationship
between these roles so that ambi
guity in performance of duties
can be eliminated. Not only is this
important for productive cooperation
between the personnel but also for
clarification of extent of authority,
as well as responsibility for results
and logical grouping of activities.
Meaning Let us take an example to understand
how organising takes place. Have
you ever paid attention to how, the
school fete which you enjoy so much,
actually takes place? What goes on
behind the scene to make it the
desired reality you want? The whole
activity is divided into task groups
each dealing with a specific area like
the food committee, the decoration
committee, the ticketing committee
and so on. These are under the
overall supervision of the official in
charge of the event. Coordinating
relationships are established among
the various groups to enable smooth
interaction and clarity about each
group’s contribution towards the
event. All the above activities are a
part of the organising function.
Organising essentially implies a
process which coordinates human
efforts, assembles resources and
integrates both into a unified whole
Ch_05.indd 110 08-08-2022 09:50:36
Rationalised 2023-24
Organising 111
to be utilised for achieving specified
objectives.
Organising can be defined as a
process that initiates implementation
of plans by clarifying jobs and
working relationships and effectively
deploying resources for attainment
of identified and desired results
(goals).
StepS in the p roceSS of
o rganiSing Organising involves a series of steps
that need to be taken in order to
achieve the desired goal. Let us try
and understand how organising
is carried out with the help of an
example.
Suppose twelve students work for
the school library in the summer
vacations. One afternoon they are
told to unload a shipment of new
releases, stock the bookshelves, and
then dispose of all waste (packaging,
paper etc). If all the students decide
to do it in their own way, it will result
in mass confusion. However, if one
student supervises the work by
grouping students, dividing the work,
assigning each group their quota and
developing reporting relationships
among them, the job will be done
faster and in a better manner.
From the above description, the
following steps emerge in the process
of organising:
(i) Identification and division
of work: The first step in the
process of organising involves
identifying and dividing the
work that has to be done in
accordance with previously
determined plans. The work
is divided into manageable
activities so that duplication
can be avoided and the burden
of work can be shared among
the employees.
(ii) Departmentalisation: Once
work has been divided into small
and manageable activities then
those activities which are similar
in nature are grouped together.
Such sets facilitate specialisation.
This grouping process is
Organising is the process of identifying and grouping the work to
be performed, defining and delegating responsibility and authority,
and establishing relationships for the purpose of enabling people to
work most effectively together in accomplishing objectives.
Louis Allen
Organising is the process of defining and grouping the activities of the
enterprise and establishing authority relationships among them.
Theo Haimman
Definition of Organising
Ch_05.indd 111 08-08-2022 09:50:36
Rationalised 2023-24
Page 4
ORGANISING
CHAPTER
5
It’s not quite there yet, but the goal is certainly within
reach. One of India’s largest IT solutions providers,
Wipro T echnologies, is taking on the likes of IBM and
Accenture in its effort to be included among the largest
and most successful technology services companies in
the world.
Restructuring Wipro was considered the
most important step in becoming a global giant,
driven by the goal towards improved customer-
orientation.
During the past few months, Wipro separated
itself into several subsidiaries by product line:
telecommunications, engineering, financial
services, etc. Each subsidiary brings in about $300
million in annual earnings and is self-sufficient
with their own accounting books, personnel and
administrative functions.
Wipro shifted from a centralised to
decentralised management system. All
responsibilities for growth lay with the
management of each entity.
“We tried to de-layer the organisation and
empower our business leaders with a much higher
degree of growth responsibility,” said Premji. “We
removed an entire layer [of executives]”.
Way T o Go, Wipro!
Adapted from an article by Heide B. Malhotra
for Epoch Times Washington D.C.
LEARNIN G
OBJECTIVES
Once the plans have been laid down
and objectives specified therein, the
next step is to organise resources
in a manner which leads to the
accomplishment of objectives. A
After studying this chapter you
should be able to:
n Explain the concept of
organising;
n Explain the process of
organising;
n Describe the importance of
organising;
n Explain the meaning, advantages
and disadvantages of functional
organisation;
n Explain the meaning, advantages
and disadvantages of divisional
organisation;
n Explain the meaning, advantages
and disadvantages of formal and
informal organisation;
n Distinguish between formal and
informal organisation;
n Explain the concept of
delegation and decentralisation;
n Describe the importance of
delegation and decentralisation;
and
n Distinguish between delegation
and decentralisation.
critical issue in accomplishing the
goals specified in the planning
process is structuring the work of an
organisation to adapt to the dynamic
business environment. The activities
Ch_05.indd 109 08-08-2022 09:50:36
Rationalised 2023-24
110 Business Studies
of an enterprise must be organised
in such a manner that plans can be
successfully implemented.
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., need to be understood and dealt
with properly.
It is evident from the way Wipro
has moved towards reaching for
it’s goal of becoming a globally
successful technology company,
that organising plays a significant
role in implementation of plans.
What has Wipro done to become a
contending force among other global
giants? Are there lessons to be learnt
from Wipro’s approach?
Wipro organised itself in a manner
that allowed customer orientation to
dominate over other goals and diversified
on the basis of product lines. It also
modified the relationships within the
management hierarchy to suit the goals.
The management function of
organising ensures that efforts are
directed towards the attainment
of goals laid down in the planning
function in such a manner that
resources are used optimally and
people are able to work collectively
and effectively for a common purpose.
Thus, it is in the context of effective
management that the organisation
function earns due importance. It is
a means for translating plans into
action.
The organising function leads to the
creation of an organisational structure
which includes the designing of roles
to be filled by suitably skilled people
and defining the inter relationship
between these roles so that ambi
guity in performance of duties
can be eliminated. Not only is this
important for productive cooperation
between the personnel but also for
clarification of extent of authority,
as well as responsibility for results
and logical grouping of activities.
Meaning Let us take an example to understand
how organising takes place. Have
you ever paid attention to how, the
school fete which you enjoy so much,
actually takes place? What goes on
behind the scene to make it the
desired reality you want? The whole
activity is divided into task groups
each dealing with a specific area like
the food committee, the decoration
committee, the ticketing committee
and so on. These are under the
overall supervision of the official in
charge of the event. Coordinating
relationships are established among
the various groups to enable smooth
interaction and clarity about each
group’s contribution towards the
event. All the above activities are a
part of the organising function.
Organising essentially implies a
process which coordinates human
efforts, assembles resources and
integrates both into a unified whole
Ch_05.indd 110 08-08-2022 09:50:36
Rationalised 2023-24
Organising 111
to be utilised for achieving specified
objectives.
Organising can be defined as a
process that initiates implementation
of plans by clarifying jobs and
working relationships and effectively
deploying resources for attainment
of identified and desired results
(goals).
StepS in the p roceSS of
o rganiSing Organising involves a series of steps
that need to be taken in order to
achieve the desired goal. Let us try
and understand how organising
is carried out with the help of an
example.
Suppose twelve students work for
the school library in the summer
vacations. One afternoon they are
told to unload a shipment of new
releases, stock the bookshelves, and
then dispose of all waste (packaging,
paper etc). If all the students decide
to do it in their own way, it will result
in mass confusion. However, if one
student supervises the work by
grouping students, dividing the work,
assigning each group their quota and
developing reporting relationships
among them, the job will be done
faster and in a better manner.
From the above description, the
following steps emerge in the process
of organising:
(i) Identification and division
of work: The first step in the
process of organising involves
identifying and dividing the
work that has to be done in
accordance with previously
determined plans. The work
is divided into manageable
activities so that duplication
can be avoided and the burden
of work can be shared among
the employees.
(ii) Departmentalisation: Once
work has been divided into small
and manageable activities then
those activities which are similar
in nature are grouped together.
Such sets facilitate specialisation.
This grouping process is
Organising is the process of identifying and grouping the work to
be performed, defining and delegating responsibility and authority,
and establishing relationships for the purpose of enabling people to
work most effectively together in accomplishing objectives.
Louis Allen
Organising is the process of defining and grouping the activities of the
enterprise and establishing authority relationships among them.
Theo Haimman
Definition of Organising
Ch_05.indd 111 08-08-2022 09:50:36
Rationalised 2023-24
112 Business Studies
called departmentalisation.
Departments can be created
using several criteria as a basis.
Examples of some of the most
popularly used basis are territory
(north, south, west, etc.) and
products (appliances, clothes,
cosmetics etc).
(iii) Assignment of duties: It is
necessary to define the work
of different job positions and
accordingly allocate work
to various employees. Once
departments have been formed,
each of them is placed under
the charge of an individual.
Jobs are then allocated to the
members of each department in
accordance to their skills and
competencies. It is essential
for effective performance that a
proper match is made between
the nature of a job and the
ability of an individual. The work
must be assigned to those who
are best fitted to perform it well.
(iv) Establishing authority and
reporting relationships: Merely
allocating work is not enough.
Each individual should also know
who he has to take orders from
and to whom he is accountable.
The establishment of such clear
relationships helps to create a
hierarchal structure and helps
in coordination amongst various
departments.
i Mportance of o rganiSing Performance of the organising
function can pave the way for a
smooth transition of the enterprise
in accordance with the dynamic
business environment. The
significance of the organising
function mainly arises from the fact
that it helps in the survival and
growth of an enterprise and equips
it to meet various challenges. In
order for any business enterprise to
perform tasks and successfully meet
goals, the organising function must
be properly performed. The following
points highlight the crucial role that
organising plays in any business
enterprise:
(i) Benefits of specialisation:
Organising leads to a systematic
allocation of jobs amongst the
work force. This reduces the
workload as well as enhances
productivity because of the
specific workers performing a
Your school must have various societies for extra-curricular
activities like the dramatics society, the quiz club, the economics
society, the debating society and so on. Observe and list the way
they have organised their activities using division of labour, chain of
communication and the levels they have adopted for reporting on
work. How far is this similar to the process you have read about?
Think About It
Ch_05.indd 112 08-08-2022 09:50:36
Rationalised 2023-24
Page 5
ORGANISING
CHAPTER
5
It’s not quite there yet, but the goal is certainly within
reach. One of India’s largest IT solutions providers,
Wipro T echnologies, is taking on the likes of IBM and
Accenture in its effort to be included among the largest
and most successful technology services companies in
the world.
Restructuring Wipro was considered the
most important step in becoming a global giant,
driven by the goal towards improved customer-
orientation.
During the past few months, Wipro separated
itself into several subsidiaries by product line:
telecommunications, engineering, financial
services, etc. Each subsidiary brings in about $300
million in annual earnings and is self-sufficient
with their own accounting books, personnel and
administrative functions.
Wipro shifted from a centralised to
decentralised management system. All
responsibilities for growth lay with the
management of each entity.
“We tried to de-layer the organisation and
empower our business leaders with a much higher
degree of growth responsibility,” said Premji. “We
removed an entire layer [of executives]”.
Way T o Go, Wipro!
Adapted from an article by Heide B. Malhotra
for Epoch Times Washington D.C.
LEARNIN G
OBJECTIVES
Once the plans have been laid down
and objectives specified therein, the
next step is to organise resources
in a manner which leads to the
accomplishment of objectives. A
After studying this chapter you
should be able to:
n Explain the concept of
organising;
n Explain the process of
organising;
n Describe the importance of
organising;
n Explain the meaning, advantages
and disadvantages of functional
organisation;
n Explain the meaning, advantages
and disadvantages of divisional
organisation;
n Explain the meaning, advantages
and disadvantages of formal and
informal organisation;
n Distinguish between formal and
informal organisation;
n Explain the concept of
delegation and decentralisation;
n Describe the importance of
delegation and decentralisation;
and
n Distinguish between delegation
and decentralisation.
critical issue in accomplishing the
goals specified in the planning
process is structuring the work of an
organisation to adapt to the dynamic
business environment. The activities
Ch_05.indd 109 08-08-2022 09:50:36
Rationalised 2023-24
110 Business Studies
of an enterprise must be organised
in such a manner that plans can be
successfully implemented.
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., need to be understood and dealt
with properly.
It is evident from the way Wipro
has moved towards reaching for
it’s goal of becoming a globally
successful technology company,
that organising plays a significant
role in implementation of plans.
What has Wipro done to become a
contending force among other global
giants? Are there lessons to be learnt
from Wipro’s approach?
Wipro organised itself in a manner
that allowed customer orientation to
dominate over other goals and diversified
on the basis of product lines. It also
modified the relationships within the
management hierarchy to suit the goals.
The management function of
organising ensures that efforts are
directed towards the attainment
of goals laid down in the planning
function in such a manner that
resources are used optimally and
people are able to work collectively
and effectively for a common purpose.
Thus, it is in the context of effective
management that the organisation
function earns due importance. It is
a means for translating plans into
action.
The organising function leads to the
creation of an organisational structure
which includes the designing of roles
to be filled by suitably skilled people
and defining the inter relationship
between these roles so that ambi
guity in performance of duties
can be eliminated. Not only is this
important for productive cooperation
between the personnel but also for
clarification of extent of authority,
as well as responsibility for results
and logical grouping of activities.
Meaning Let us take an example to understand
how organising takes place. Have
you ever paid attention to how, the
school fete which you enjoy so much,
actually takes place? What goes on
behind the scene to make it the
desired reality you want? The whole
activity is divided into task groups
each dealing with a specific area like
the food committee, the decoration
committee, the ticketing committee
and so on. These are under the
overall supervision of the official in
charge of the event. Coordinating
relationships are established among
the various groups to enable smooth
interaction and clarity about each
group’s contribution towards the
event. All the above activities are a
part of the organising function.
Organising essentially implies a
process which coordinates human
efforts, assembles resources and
integrates both into a unified whole
Ch_05.indd 110 08-08-2022 09:50:36
Rationalised 2023-24
Organising 111
to be utilised for achieving specified
objectives.
Organising can be defined as a
process that initiates implementation
of plans by clarifying jobs and
working relationships and effectively
deploying resources for attainment
of identified and desired results
(goals).
StepS in the p roceSS of
o rganiSing Organising involves a series of steps
that need to be taken in order to
achieve the desired goal. Let us try
and understand how organising
is carried out with the help of an
example.
Suppose twelve students work for
the school library in the summer
vacations. One afternoon they are
told to unload a shipment of new
releases, stock the bookshelves, and
then dispose of all waste (packaging,
paper etc). If all the students decide
to do it in their own way, it will result
in mass confusion. However, if one
student supervises the work by
grouping students, dividing the work,
assigning each group their quota and
developing reporting relationships
among them, the job will be done
faster and in a better manner.
From the above description, the
following steps emerge in the process
of organising:
(i) Identification and division
of work: The first step in the
process of organising involves
identifying and dividing the
work that has to be done in
accordance with previously
determined plans. The work
is divided into manageable
activities so that duplication
can be avoided and the burden
of work can be shared among
the employees.
(ii) Departmentalisation: Once
work has been divided into small
and manageable activities then
those activities which are similar
in nature are grouped together.
Such sets facilitate specialisation.
This grouping process is
Organising is the process of identifying and grouping the work to
be performed, defining and delegating responsibility and authority,
and establishing relationships for the purpose of enabling people to
work most effectively together in accomplishing objectives.
Louis Allen
Organising is the process of defining and grouping the activities of the
enterprise and establishing authority relationships among them.
Theo Haimman
Definition of Organising
Ch_05.indd 111 08-08-2022 09:50:36
Rationalised 2023-24
112 Business Studies
called departmentalisation.
Departments can be created
using several criteria as a basis.
Examples of some of the most
popularly used basis are territory
(north, south, west, etc.) and
products (appliances, clothes,
cosmetics etc).
(iii) Assignment of duties: It is
necessary to define the work
of different job positions and
accordingly allocate work
to various employees. Once
departments have been formed,
each of them is placed under
the charge of an individual.
Jobs are then allocated to the
members of each department in
accordance to their skills and
competencies. It is essential
for effective performance that a
proper match is made between
the nature of a job and the
ability of an individual. The work
must be assigned to those who
are best fitted to perform it well.
(iv) Establishing authority and
reporting relationships: Merely
allocating work is not enough.
Each individual should also know
who he has to take orders from
and to whom he is accountable.
The establishment of such clear
relationships helps to create a
hierarchal structure and helps
in coordination amongst various
departments.
i Mportance of o rganiSing Performance of the organising
function can pave the way for a
smooth transition of the enterprise
in accordance with the dynamic
business environment. The
significance of the organising
function mainly arises from the fact
that it helps in the survival and
growth of an enterprise and equips
it to meet various challenges. In
order for any business enterprise to
perform tasks and successfully meet
goals, the organising function must
be properly performed. The following
points highlight the crucial role that
organising plays in any business
enterprise:
(i) Benefits of specialisation:
Organising leads to a systematic
allocation of jobs amongst the
work force. This reduces the
workload as well as enhances
productivity because of the
specific workers performing a
Your school must have various societies for extra-curricular
activities like the dramatics society, the quiz club, the economics
society, the debating society and so on. Observe and list the way
they have organised their activities using division of labour, chain of
communication and the levels they have adopted for reporting on
work. How far is this similar to the process you have read about?
Think About It
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Organising 113
specific job on a regular basis.
Repetitive performance of a
particular task allows a worker
to gain experience in that area
and leads to specialisation.
(ii) Clarity in working relation
ships: The establishment of
working relationships clarifies
lines of communication and
specifies who is to report to
whom. This removes ambiguity
in transfer of information
and instructions. It helps in
creating a hierarchical order
thereby enabling the fixation of
responsibility and specification
of the extent of authority to be
exercised by an individual.
(iii) Optimum utilisation of
resources: Organising leads to
the proper usage of all material,
fin ancial and human resources.
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.
(iv) Adaptation to change: The
process of organising allows
a business enterprise to
accommodate changes in the
business environment. It allows
the organisation structure to be
suitably modified and the revision
of interrelationships amongst
managerial levels to pave the
way for a smooth transition.
It also provides much needed
stability to the enterprise as it
can then continue to survive
and grow inspite of changes.
(v) Effective administration:
Organising provides a clear
description of jobs and related
duties. This helps to avoid confusion
and duplication. Clarity in working
relationships enables proper
execution of work. Management
of an enterprise thereby becomes
easy and this brings effectiveness
in administration.
(vi) Development of personnel:
Organising stimulates creativity
amongst the managers. Effective
delegation allows the managers
to reduce their workload by
assigning routine jobs to their
subordinates. The reduction in
workload by delegation is not
just necessary because of limited
capacity of an individual but also
allows the manager to develop new
methods and ways of performing
tasks. It gives them the time to
explore areas for growth and the
opportunity to innovate thereby
strengthening the company’s
competitive position. Delegation
also develops in the subordinate
the ability to deal effectively with
challenges and helps them to
realise their full potential.
(vii) Expansion and growth: Organ
ising helps in the growth and
diversification of an enterprise
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