This can be achieved in a better manner through clear division of activities in various departments as done under functional structure. It determines the nature and structure of an organisation. What are the steps in the process of organising? Once the head is accountable for the revenues and costs of their own department, it becomes easier to gauge the actions of each. Free PDF download of NCERT Solutions for Class 12 Business Studies Chapter 5 - Organising solved by expert teachers on CoolGyan as per NCERT (CBSE) Book guidelines. The divisional structure is recommended for the following reasons: 1. The extent of achievement of organisational objectives as well as the contribution of each department in meeting, the over all objectives can be ascertained. Employees also get the chance to perform well and improve their skills. Thus, certain degree of authority and control must be retained at the top level management so as to maintain integrity of the organisation. While assigning the duties it must be ensured that the best suited and proficient person is selected for the work. It encourages cooperation between the people and maintains a peaceful environment at work. (ii)Managerial Competence: Once the authority is delegated to the managers at lower levels, it provides them the needed opportunity to develop themselves. Following are a few factors that explain why an organisation would choose to be decentralised. This unofficial interaction provides a sense of belongingness among the employees towards the organisation and towards each other. Decentralisation helps analyse the performance of every department and also determine how each one of them are helping the organisation in fulfilling the objectives. It helps in reducing the work load on the manager so that manager can give focus on areas that needs more attention. On the other hand, under decentralisation this concept is extended and the authority is distributed at not just one but multiple levels. Informal organisation do not follow a scalar chain as they arise out of informal relationship among the workers and managers. Following are the factors of informal organisation that support the working of formal organisation. 1. In course of time, such a manager may gain power and in a bid to assert his independence may ignore organisational interests. A network of social relationship that … Here, each division has to take care about its profit and loss and is responsible for its own work. (v) Facilitates Growth Decentralisation awards greater autonomy to the lower levels of management as well as divisional or departmental heads. For this the superior, through regular feedbacks and supervision ensures that the subordinate performs the tasks properly and satisfactorily. It is available for free download here at BYJU'S. By contributing to their well being, it helps in increasing their productivity. Can the production manager blame the foreman if he is not able to achieve the desired target? (i) Authority It refers to the right of an individual to command his subordinates and to take action within the scope of his position. (i) Departmental Conflicts: Strife may arise among various divisions with regard to decisions and actions of organisation such as those relating to allocation of funds and resources. Under each department work is allocated to different members as per their skill and ability. 6. superior commands authority over the subordinates. Both decentralisation and delegation relate to downward delegation of authority and responsibility. Span of management depends on various factors such as ability of the manager in terms of leadership, control, etc., extent of decentralisation followed in the organisation, working ability of the subordinates, nature of work, etc. (ii) Develops Managerial Talent for the Future Formal training plays an important part in equipping subordinates with skills that help them rise in the organisation, but equally important is the experience gained by handling assignments independently. It would slow down the decision-making process for the organisation. A major change that needs to be adopted is a move towards decentralisation. How is functional structure different from a divisional structure? These ncert book chapter wise questions and answers are very helpful for CBSE board exam. There can be rise in cost due to duplication of work among departments. What is divisional structure? It can be achieved in a smooth way by arranging a proper division of activities among various departments under functional structure. Its business was very good till 1991. It allows the workers to form informal relations outside the organisation. Each division would have its own divisional manager who would supervise the whole unit and would have the authority for it. It is economical as duplication of work is minimised. Easy to fix responsibility for performance. Based on these product lines, the organisation has four divisions that report to the managing director. Draw a diagram depicting a functional structure. 2020 Applect Learning Systems Pvt. Give your opinion. For example, a company dealing with varied products have divisional heads such as clothing, shoes and electronics. Each of the divisions can then have further functional departments such as, under shoes, there will be resource inputs, advertising, production, sales, etc. For example, if the manager delegates the basic work to the subordinate he can put his mind into exploring ways to improve efficiency. Scope of delegation is limited as power is concentrated in a few hands. It arises from a superior-subordinate relationship because the subordinate is bound to perform the duty assigned to him by his superior. Class 12 NCERT Solutions. It provides sound knowledge and understanding of all important concepts covered in each chapter in the Class 12 Maths NCERT textbook. It provides them with the opportunity to gain experience and thereby, develop the skills and knowledge to face new challenges. Decentralisation helps in analysing and evaluating the performances of each department separately. (i) To overcome the limitations of formal organisation, the management should encourage workers to interact and socialise with each other through get together outings. 5. It gives them a higher degree of autonomy to take initiative. 4. Find NCERT solutions for class 12 solved completely by academic professionals after thorough research and extensive review to present the best of solutions.. Students of CBSE rely on NCERT solutions for textbook questions. The organisation gains from the increased overall performance and thereby, grows. (ii) Social Needs It helps to fulfill social needs of the members and allows them to find like minded people. 3. On the other hand, formal organisation refers to a formal system based on superior-subordinate relationship. This also helps in taking corrective actions in case of poor performance. There are two types of span of management 1) Narrow 2) Wide. Decentralisation refers to the dispersal of the decision making power among the middle and lower level managers. (iii) Organisational Objectives It contributes towards fulfilment of organisational objectives by compensating for inadequacies in the formal organisation e.g., feedbacks on new policies etc can be tested through informal network.

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