Chapter 5 of Class 12 Business Studies is all about Organising, which is one of the most essential functions of management. Once planning is done, the next step is to organise resources, duties, and responsibilities in a way that helps the organisation run smoothly. This chapter teaches how to divide work, group it into departments, assign duties, and establish authority. It’s a very practical topic and is directly useful in any business or professional setting.
I’ve chosen to write about this topic because most students either mug up the points or ignore the flow of logic in this chapter. But trust me, once you understand the idea behind “organising”, it becomes one of the easiest and most scoring chapters in Business Studies. It’s not just about definitions and headings – it shows how real businesses are structured. Whether it’s a shop, a coaching centre, or a startup, everyone needs to know who does what, who reports to whom, and how different departments work together. That’s what this chapter is all about, and I want to break it down in a way that feels easy and relatable.
What is Organising?
Organising is the process of identifying and grouping activities, assigning them to employees, and establishing authority relationships among them. In simple words, it is about deciding who will do what, how the work will be divided, and who will be responsible to whom.
After planning, every business needs to implement the plan. And for that, the organisation must be ready with teams, roles, and systems. That is where organising helps.
Steps in the Process of Organising
- Identification of Activities – First, the total work is divided into different activities. For example, in a business, activities may include buying, selling, marketing, accounting, etc.
- Grouping of Activities – Similar activities are grouped together into departments. For example, marketing-related work goes to the marketing department.
- Assignment of Duties – Once departments are made, specific duties are assigned to individuals as per their skills and experience.
- Establishing Authority and Responsibility Relationships – A proper hierarchy is made so that everyone knows who reports to whom and who is responsible for what.
Importance of Organising
- Clear Roles and Responsibilities – Everyone knows their job clearly which avoids confusion
- Specialisation – People work in areas they are good at
- Efficient Use of Resources – Human and physical resources are used properly
- Coordination – Different departments and teams work in harmony
- Growth and Expansion – A well-organised structure supports future growth
Let’s take an example. In a coaching centre, there are teachers, counsellors, marketing people, and admin staff. Organising helps in deciding how these people will work together, who handles student queries, who prepares study material, and who manages fees. Without organising, the entire setup can fall into chaos.
Delegation of Authority
Delegation is when a manager gives part of his work to a subordinate. It includes three main elements:
- Authority – The power to take decisions
- Responsibility – The obligation to complete the task
- Accountability – Answerable for the final result
Delegation makes the work faster and helps in developing managerial skills in juniors. But the final responsibility always stays with the person who delegates the task.
Decentralisation
Decentralisation means giving decision-making power to lower levels of management. It is an extension of delegation but at a larger scale.
For example, in a national company, the head office may allow state-level offices to take independent decisions about sales targets, local hiring, or budgeting. This saves time and encourages more local-level involvement.
| Basis | Delegation | Decentralisation |
|---|---|---|
| Scope | Narrow (between 2 persons) | Wide (organisation level) |
| Control | Manager controls the subordinate | Top management controls overall system |
| Freedom | Less | More |
