Business Studies for Class 12 Chapter 5 Organising Index Terms

Learn CBSE Business Studies Index Terms for Class 12, Chapter 5 Including Definitions and Meanings

1. Organising – Organising includes appointing assignments, gathering tasks into offices, designating authority, and distributing assets across the association. During the organising process, administrators coordinate employees, assets, procedures, and policies to work with the objectives distinguished in the plan.

2. Organisation Structures – Organisation structures are a framework that frames and guides how certain business activities are directed to accomplish the objectives of an association or a business entity. These business exercises or business activities can incorporate roles, responsibilities, and rules.

The organisation structure or a hierarchical design additionally decides how information and data flow between management levels within the organisation. For instance, in a centralised organisation structure, decisions made are flown from the top management to the lower level management and bottom level management. In a decentralised organisation structure, the decision-making power is disseminated among different levels of the organisation or within the business.

Having an organisational structure permits organisations to stay proficient and centred.

3. Departmentalisation – Departmentalisation is an organisational structure or a hierarchical design that isolates or separates individuals into various groups, and departments in predetermined criteria. These departments have their own authority and work together to finish responsibilities. With huge or confounded projects, various divisions or departments might cooperate and work together.

4. Delegation – Delegation is the process of transferring authority and responsibility to subordinates in an organisation. Delegation provides an individual with the power to direct or command a subordinate. This enables them to make decisions regarding what needs to be done and who will be doing that. The chain of command starts at the top level of management and ends at a lower level of management. As authority is delegated, it helps in maintaining discipline and obedience.

5. Authority – Authority is portrayed as the regulated and legitimate power innate in a task job or position that permits the holder of the task to play out their obligations or responsibilities viably. It is appointed authoritatively and lawfully. Authority implies a specific approval acquired from an individual’s higher official and in view of which an individual is qualified to accomplish the work in an association. It is significant for managerial capacities. Without power, no individual can complete his obligations with full liability.

This incorporates the option to screen a circumstance, commit reserves, issue requests, and request them to have complied. It is trailed by responsibility for one’s acts and disappointments in executing activities. Also, genuine authority frequently implies that authority is perceived by the point.

6. Responsibility – Responsibility is the commitment of a subordinate to perform the appointed duty appropriately. It emerges from a superior-subordinate relationship on the grounds that the subordinate will undoubtedly perform the duty doled out to him by his boss. Obligation streams upward.

In other words, responsibility is the part where the subordinate has to adhere to the given task. The duty provided should be performed by the subordinate properly. The responsibility of a subordinate is towards his superior.

7. Accountability – Accountability entails being accountable and answerable for one’s economic or business activity to the higher authorities. Accountability originates due to responsibility and which can not be delegated. Accountability flows from the lower-level management to the top-level management, that is, from the subordinate to the superior.

8. Functional Structure – Functional structure requires grouping and organising activities that are of similar nature. Under functional organisation, each group functions separately and specialises in their work. Financial structure is suitable for organisations that are large and which have various functions.

In other words, a functional organisational design is a structure used to coordinate employees, and they are grouped depending on their particular abilities and knowledge. It is a vertically structured organisation with all divisions regarding jobs, from the President to the Finance department and Sales departments, to client care, to representatives doled out to one service or product.

9. Divisional Structure – Divisional organisation structure, in which various departments are created on the basis of products, territory, or region, is called a divisional structure. Each unit has a divisional manager, who is responsible for the performance and has authority over their division. Each division is further divided into functional units like production, sales, finance, etc. The divisional head is solely responsible for the profit or loss of the division.

10. Formal Organisation – A formal organisation is an association with a decent arrangement of rules of intra-association structures and procedures. They have a decisive spot in the association because of a clear-cut structural layout of the hierarchy that is inborn in any conventional association.

11. Informal Organisation – Informal organisations are those types of organisations that do not have a defined hierarchy of authority and responsibility. In such organisations, the relationship between employees is formed based on common interests, preferences, and prejudices.

12. Span of Management – The term span of management refers to the number of subordinates a manager is able to handle efficiently. It determines the nature and structure of an organisation. There are two types of spans of management: they are the narrow span of management and the wide span of management.

The span of management is dependent on various factors such as leadership, control, decentralisation extent in an organisation, nature of work, and the working ability of the subordinates.

13. Centralisation – Centralisation alludes to an arrangement whereby the decision-making powers are given to a couple of leaders at the highest point of the hierarchical construction. Decisions are made at the top and imparted to the lower level of management for execution.

14. Decentralisation – Decentralisation refers to a type of organisational structure where the decision-making responsibilities and the conduct of day-to-day operations are handed over to middle and lower-level managers. This process is called delegation of authority. Decentralisation allows the top management to focus on creative ideas to improve the business.

15. Line Organisation – Line organisation is the simplest organisation structure, and it also happens to be the oldest organisation structure. It is also known as a scalar or military or departmental type of organisation.

In this type of organisational structure, the authority is well defined, and it flows vertically from the top to the hierarchy level to the managerial level and subordinates at the bottom and continues further to the workers till the end. There is a clear division of accountability, authority, and responsibility in the line organisation structure.

16. Line and Staff Organisation – Line and staff organisation is an improved version of the line organisation. In line and staff organisation, the functional specialists are added in line. The staff is for assisting the line members in achieving the target effectively.

17. Project Organisation – A project organisation is a temporary form of organisation structure that is formed to manage projects for a specific period of time. This form of organisation has specialists from different departments who are brought together to develop a new product.

18. Matrix Organisation – Matrix organisation is the latest form of organisation that is a combination of functional and project organisation. In such organisations, there are two lines of authority, the functional part of the organisation and the project management part of the organisation, and they have a vertical and horizontal flow of authority, respectively.

We hope that the offered Business Studies Index Terms for Class 12 with respect to Chapter 5: Organising will help you.

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