CHAPTER - 5

ORGANISING
MEANING:-
To organise a business is to provide it with everything useful to its functioning: raw materials, machines and tools, capital and
personnel.
PROCESS OF ORGANISING
Sabse phele identify karke divide karna work ko, jo logo me kam divide hua hai unka group banake department allot karna,
phir unko duties assign karna, duties assign karne ke baad unke kam ki reporting relationship establish karna.
IMPORTANCE/SIGNIFICANCE OF ORGANISING:
C O C Game Ek BAar mein Duba Deta hai
C - Clarity in working relationship: In the organising function, it is clearly defined that what all and how much power and
authority is enjoyed by different individuals or managers.
O - Optimum utilisation of resources: In the organising function there are few chances of duplication of work or over lapping of
work because the jobs are assigned to different individuals by clearly defining the job in job description document.
C - Coordination and effective administration: In the organising function, the similar and related jobs are grouped under one
department which leads to unification of efforts and harmony in work.
E - Expansion and Growth: With optimum utilisation of resources and proper division of work and departmentation, companies
can easily meet the challenges and can expand their activities in a prescribed manner.
B - Benefits in specialization: In organising, every individual is assigned a part of total work and not the whole task.
A – Adoption to change: Whenever the changes take place in the business environment then with the help of organising
function these changes can be adopted systematically.
D - Development of Personal: Delegation of authority is an important part of organising by delegating the routine the managers
can concentrate to develop new methods and ways of performing job.
ORGANISATIONAL STRUCTURE
Meaning:-
Network of job position, responsibility and authority at different levels.
Span of management:-
How many employee or subordinates can be effectively managed by one manager.
FUNCTIONAL STRUCTURE
Where the activities and job are grouped keeping in mind the function or job then it is called functional structure.
Advantages:-
Due to Easy Occupation India Is Promoted
D - Due attention to different function
E - Easy and effective training
O - Occupational specialisation
I – It leads to minimum duplication of efforts
I – Increases managerial & operational efficiency
P - Promote control and coordination within department
Disadvantages:-
PPC is Difficult
P - Places less importance to overall objective of organisation.
P - Problems of coordination
C - Conflict of interest
I – Inflexibility
D - Difficult to fix accountability
DIVISIONAL STRUCTURE:-
Division related to product is grouped under one department.
Advantages:-
PF Account is For Every one
P - Product specialization
F - Fast decision making
A – Accountability

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 CHAPTER - 5

F - Flexibility
E - Expansion and growth
Disadvantages:-
MPC
M - More resources required
P - Product focus department
C - Conflict
FORMAL ORGANISATION:-
Systematic working and efficient utilization of resources.
Advantages:-
2G/3G SCAM mein CM kabhi Nahi phas sakte hai
S - Systematic working
C - Coordination
A – Achievement of organsational objective
M - More emphasis on work
C - Creation of chain of command
N - No overlapping of work
Disadvantages:-
DIE
D - Delay in action
I – Ignore Social and employees
E - Emphasis on work only
INFORMAL ORGANISATION:-
Advantage:-
Fata Fat Class over
F - Fast communication
F - Fulfills social needs
C - Correct feedback
Disadvantages:-
No More Sense full baate
N- No systematic working
M- May bring negative results
S- Spread rumuors
DELEGATION
A process of entrusting responsibility and authority to the subordinates and creating accountability on those employees who
are entrusted responsibility and authority.
ELEMENT OF DELEGATION/PROCESS OF DELEGATION
There are three elements of delegation:
♦ Responsibility: Responsibility means the work assigned to an individual. Responsibility is the obligation of the
subordinate, it arises from superior subordinate relationship and it flows upward.
♦ Authority: Authority means power to take decision. It arise or originate from an individual’s position. It refers to right
take decision. It is restricted by law and rules and regulations. It arises from scalar chain. It flows downward.
♦ Accountability: Accountability means subordinate will be answerable for the non-completion of the task; creating
accountability is the third and final step of delegation process. It refers to answerable. It cannot be delegated or
passed. It is enforced through regular feedback. It flows upward.
Importance:-
bache BEER peene Me Bahut interested rehete hai
B - Better coordination: In delegation systematically responsibility and authority is divided and employees are made
answerable for non compliance of task.
E - Effective management: In the delegation process managers pass routine work to the subordinates. So they are free to
concentrate on other important matters.

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 CHAPTER - 5

E - Employees development: As a result of delegation employees get more opportunities to utilise their talents.
R - Reduce the work load of manager: In the process of delegation, the managers are allowed to share their responsibilities and
work with the subordinates which helps the managers to reduce their work load.
M - Motivation of employee: In the delegation when the manager is sharing his responsibility and authority with the
subordinates it motivates the subordinates as they develop the feeling of belongingness and trust.
B - Basis of management hierarchy: Delegation establishes superior subordinate relation ship which is the base for hierarchy of
managers.
F -Facilitates organisational growth: In the process of delegation when the managers are passing their responsibility and
authority to the subordinate they keep in mind the qualification and capability of all the subordinate.
CENTRALISATION AND DECENTRALISATION:-
Centralization refers to concentration of power or authority in few hands i.e. top level.
Decentralisation can be defined as even and systematic distribution of authority at every level of management.
Relation between delegation and decentralisation
Decentralisation is extension of delegation. In delegation, we multiply the authority with two, whereas in decentralization the
authority is multiplied by many because systematic delegation taking place at every level will result in evenly distribution of
authority and responsibility at every level and result in decentralization.
Delegation is necessary in every organisation but decentralisation is optional
Importance of Decentralisation
DID Pura Bekar, faltu, Reality show Off program hai
D - Develop initiative among subordinates: Passing of authority at middle and lower level shows the trust and faith of top level
in their subordinate and this trust and faith motivate the employees.
D - Develop managerial talent for feature: In the decentralisation managers working at lower and middle level also learn the
art of making decisions.
B - Better control: In decentralisation employees working at different levels take their own decision and they are personally
accountable for the decision.
F - Facilitates growth: Decentralisation grants more autonomy or freedom to lower level. This increases productivity and
revenue.
R – Relief to top management: In the process of decentralization, top level management are not overburdened with the
responsibilities and authority as they pass to the different level.
Q - Quick decision making: In the decentralisation process, decision making is not restricted in few hands only but decision
making power is entrusted to all managers who are taking actions or performing the activities.

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