Organising Class 12 Notes

8 minute read
Organising Class 12 Notes

Organising is indeed one of the most important functions of management. In the language of business and management, it is a relationship built between people, work and resources in an organisation that is hence used to achieve the common objectives or goals of the organisation as a whole. In this blog on Organising class 12 notes, we will be giving you important study notes on one of the chapters of Business Studies Organising Class 12. It is an important part of commerce subjects, so read this blog till the end if you want to know more about organising class 12 notes. 

Must Read: Business Studies Class 12 Project

What is Organising?

Before taking this blog on organising class 12 notes any further, let us first understand what organising actually means. Organising is that function of business management that deals with identifying and grouping different activities in the organisation. Simultaneously, it also deals with bringing together the physical, financial, and human resources required and established to achieve organisational goals. As per Fayol, “To organise a business is to provide it with everything useful to its functioning; raw materials, machines and tools, capital and personnel.”

Organising Process

After understanding what organising actually is, it is now time to reveal the organising process in this blog on organising class 12 notes. According to NCERT, the organising process has 4 vital and important steps:

  • Identification and division of work 
  • Departmentalisation 
  • Assignment of duties
  • Establishing reporting relationships

Importance of Organising 

Any theory topic and our organising class 12 notes in incomplete without mentioning the importance of the topic. Here is the importance of organising:

  • Benefits of specialization: Since a portion of the total work is allocated to each worker and not the entire job or assignment, the division of work into smaller units and repetitive output contributes to specialization, which therefore encourages specialization. In turn, specialization leads to productive & rapid task efficiency.
  • The clarity in working relationships: Organizing is essential because it helps to build well-defined roles and also to explain the boundaries of each job’s authority and obligation.
  • Optimum utilisation of resources: Proper job allocation prevents job overlap/duplication, which helps prevent confusion and minimise waste of resources and efforts.
  • Adaptation to change: Organising indeed enables a well-designed organizational structure that is flexible and facilitates adjustment to changes in workload caused by technology, products, resources and markets-related changes in the external environment.
  • Effective administration: Organizing provides a clear description of jobs and related tasks that helps to avoid confusion and duplication, and this clarity in working relationships allows work to be properly executed, resulting in effective management.
  • Development of personnel: On the part of the staff, the sound organization encourages initiative and relative thinking. It reduces their workload when managers delegate their authority to concentrate on more important growth & innovation issues. 
  • Expansion and growth: good organising also contributes to an enterprise’s growth & diversification by adding more jobs, departments, line managers, product lines, new geographical territories, etc.

Also Read: Top Business Studies Courses You Can’t Afford to Miss

Organisational Structure

Moving ahead with our blog on Organising class 12 notes, let us now look upon what is an organisational structure? In simple words, the organisational structure is a structure that clearly depicts and tells us the relationship among all the persons/departments working in the organisation. This structure hence provides a basis of the framework for the top management and line managers and also for the other employees to perform their required and needful functions. It can also be defined as the framework within which managerial and operating tasks are performed. While farming the organisational structure, the considerations to be kept in mind are as follows:

  • Job design
  • Span of management
  • Delegation of authority
  • Departmentation

Types of Organisation Structure

According to the chapter of Organising class 12 notes, there are 2 types of organisational structure namely: 

  • Functional Structure: in this structure, the activities or jobs or tasks are grouped keeping in mind the functions of that particular task or job. 
Advantages DisadvantagesSuitability
Easy supervision.
Increases managerial efficiency.
Easy coordination.
Effective training.
Helps in cost reduction.
It brings similarity in the task that is being performed remote control and coordination.
Departments become specialised
in their own way only. 
As and when departments
start to grow, the
coordination decreases.
In cases when the
goals are not met, it
becomes very difficult to
make any one department
The new or existing employees
get training of one function only of the department to which they belong to.
-Deviation in Interest.
-Lack of coordination.
The functional organisational structure
is most suitable if and when
the size of the organisation is large
and has diversified activities or operations and hence need or require a high degree of specialisation. 
  • Divisional structure: According to this structure of an organisation in our organising class 12 notes, when the organisation is a big or large organisation and is producing more than one product, then the activities related to product A are grouped together or clubbed under one department and a similar thing is done for the rest of the products. 
-Helps in
product specialisation.
-Helps in expansion and growth.
-Helps in fast decision

-The biggest disadvantage is that
each department or the division will be requiring all the resources independently or
-Conflicts may arise due to
the allocation of resources
between different departments.
-Each department focuses solely on its departmental goals and fails to maintain itself as part of a common organization.
-The divisional structure of an
the organisation is suitable for those organisations that produce multiple products 
-Requires product specialisation
-Is planning to add more line of products in future.

Do Read: Creative Courses After 12th Commerce

Formal vs Informal Organisation

Let us take our blog on Organisation class 12 notes a step further by discussing formal and informal types of organisation.

  • A formal organisation is a type of organisation where an organisational structure is created while the managers are carrying the organising process to achieve systematic working condition and efficient utilisation of resources.
Achievement of organisational objectives
Systematic working
No overlapping of work
More emphasis on work
Creation of chain of command
Delay in action
Emphasis on work and duty only
Ignores the social needs of employees
  • On the contrary, an informal organisation is a type of organisation where the organisational structure is basically a network of personal and social relations which is not established by the formal organisation. 
Fast communication
Fulfils the social needs of the employees
Correct feedbacks
Spreading of rumours
No systematic working
Sometimes may bring negative results also.
More emphasis laid down on individual interest

Must Read: Syllabus for Business Studies Class 12th


According to the chapter of Organising class 12, delegation or delegation of authority is a process through which the responsibilities and authority are entrusted to the subordinates and accountability is created on those employees who have entrusted the responsibility and authority. The importance of delegation is: 

  • Employee development
  • Improves the motivation of the employees
  • Facilitation of growth
  • Effective management
  • Basis of management hierarchy
  • Better coordination

Elements of Delegation 

There are 3 elements of the delegation which we will be discussing in a while in this blog on organising class 12 notes.

Responsibility AuthorityAccountability
Responsibility means the work that is assigned to
an employee or to an individual.
It also includes the mental
and physical activities that are to be performed and completed by the employees. 
Authority refers to the
assigned power to take
Authority is required when it comes to carrying on the responsibilities of the employees. 
Accountability means or refers to that the subordinates will be answerable for the non-completion of the job or task.

Importance of Delegation

  • Employee development: It will provide opportunities for employees in order to help them develop their skills so as to handle complex tasks and hence, improve their career prospects.
  • Motivation of employees: It builds confidence and motivation when one receives responsibility and authority from superiors.
  • Better Coordination: Accountability and responsibility bring clarity and avoids duplication that leads to better coordination.
  • Basis of management hierarchy: The basis of management is provided by flow of authority, degree and responsibility.
  • Effective management: Sharing responsibilities with subordinates allows
    managers to concentrate on important matters.
  • Facilitation of growth: Subordinates get trained for new projects and ventures when they receiver responsibility from superior trains.


  • The top-level management retains all the power and authority of decision-making.
  • The higher management takes all the decisions in a centralised manner.
  • It may disrupt the production efficiency and discourage departments and employees hence, the organisation cannot be completely centralised. So, there is a balance between centralisation that is needed.


The blog on organising class 12 notes cannot be completed without mentioning decentralisation and its importance. In simple words, decentralisation is a process which refers to the manner in which the decision-making responsibilities of the organisation are being divided among the hierarchical levels of the organisation. The importance of decentralisation is:

  • It develops initiative among the subordinates
  • It helps in developing the managerial talent for the future. 
  • It helps in quick decision making in the organisation 
  • Relief to the top management is given 
  • It facilitates growth in the organisation 
  • It offers better control. 

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What is the concept of organizing?

Organising function comes after planning. The concept of organising involves allocating resources, departmentalise work, demarcate authority, and distribute responsibilities through the firm. The complicated process includes the collaboration of several factors.

What are the steps of organising?

The main steps under organising includes identification of work, grouping of work, establishment of hierarchy, delegation of authority, and coordination.

What are the 5 principles of organizing?

The 5 principles of organising includes the principles of specialisation, functional definition, span of control, scalar chain, and the principle of unity of command.

With this, we come to the end of this blog on organising class 12 notes. Hope these notes will help you to fetch some extra marks in your exam and will come in handy for that last moment revision before the exams. For more such awesome reads and revision/study notes on different subjects, stay tuned with the study abroad experts at Leverage Edu. If you wish to seek career advice or want to pursue business administration or any other related field, get in touch with our experts. Sign up for a free session today!

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