- Meaning – Organising is arranging resources and coordinating activities to achieve goals.
- Implements Plans – It helps in putting plans into action effectively.
- Defines Roles – It assigns duties, authority, and responsibility clearly.
- Uses Resources Efficiently – Ensures optimum use of human and physical resources.
- Ensures Coordination – Promotes teamwork and avoids confusion in work.
Topics
Principles and Functions of Management
Nature and Significance of Management
- Concept of Management
- Objectives of Management
- Importance of Management
- Management as an Art, Science and Profession
- Levels of Management
- Functions of Management
- Coordination as an Essence of Management
- Management as an Art
- Management as a Science
- Management as a Profession
- Overview of Nature and Significance of Management
Principles of Management
- Concept of Management Principles
- Significance of Management Principles
- Henry Fayol's Administrative Theory of Management
- Frederick Winslow Taylor's Scientific Management Theory
- Standardisation and Simplification of Work
- Overview of Principles of Management
Business Environment
- Concept of Business Environment
- Importance of Business Environment
- External Factors> Natural Environment
- Impact of Government Policy Changes on Business with Special Reference to Liberalization, Privatization and Globalization in India
- External Factors> Economic Environment
- Overview of Business Environment
Planning
- Planning
- Limitation of Planning
- Planning Process
- Objective of Single Use and Standing Plans
- Strategy of Single Use and Standing Plans
- Policy of Single Use and Standing Plans
- Single Use and Standing Plans - Method Rule
- Budget and Programme
- Types of Plans
- Overview of Planning
Organising
- Organising
- Structure of Organisation
- Concept of Delegation of Authority
- Elements of Delegation
- Importance of Delegation of Authority
- Concept of Decentralization
- Importance of Decentralization
- Steps in the Process of Organising
- Overview of Organising
Staffing
- Staffing
- Staffing as a Part of Human Resource Management
- Evolution of Human Resource Management
- Staffing Process
- Staffing - Recruitment Process
- Steps in Employee Selection Process
- Concept of Training and Development
- Importance of Training and Development
- Methods of Training
- Overview of Staffing
Directing
- Directing
- Principles of Directing
- Elements of Directing
- Concept of Supervision
- Importance of Supervision
- Function of a Supervisor
- Concept of Motivation
- Importance of Motivation
- Maslow’s Hierarchy of Needs
- Motivation - Financial and Non Financial Incentives
- Concept of Leadership
- Importance of Leadership
- Leadership Styles
- Communication
- Elements of the Communication Process
- Importance of Communication in Business
- Formal and Informal Communication
- Barriers to Communication
- How to Overcome the Barriers
- Overview of Directing
Controlling
- Controlling
- Features of Controlling
- Relationship Between Planning and Controlling
- Techniques of Managerial Control
- Responsibility Accounting
- Management Audit
- Overview of Controlling
Business Finance and Marketing
Financial Management
- Concept of Financial Management
- Role and Objectives of Financial Management
- Financial decisions - investment
- Financial Decisions - Financing and Dividend
- Concept of Financial Planning
- Importance of Financial Planning
- Concept of Capital Structure
- Concept of Fixed and Working Capital
- Factors Affecting Fixed and Working Capital Requirements
- Overview of Financial Management
Marketing
- Concept of Financial Market
- Types of Financial Markets
- Money Market in India
- Capital Market in India
- Kinds of Capital Market
- Methods of Floatation in the Primary Market
- Stock Exchange
- Securities and Exchange Board of India (SEBI)
- Distinction Between Capital Market and Money Market
- National Stock Exchange of India (NSE)
- Overview of Marketing
Consumer Protection
- Concept of Consumer Protection
- Consumer Protection Act 1986 (COPRA)
- Concept of Consumer
- Responsibilities of Consumers
- Legal Redressal Machinery Under Consumer Protection Act 1986
- Remedies Available to the Consumer Under Consumer Protection Act 1986
- Consumer Awareness
- Role of Consumer Organisations and NGO's
- Legal Protection to Consumers
- Overview of Consumer Protection
Estimated time: 76 minutes
CBSE: Class 12
Definition: Organising
- Organising can be defined as a process that initiates the implementation of plans by clarifying jobs and working relationships and effectively deploying resources for the attainment of identified and desired results (goals).
- Organising is the process of identifying and grouping the work to be performed, defining and delegating responsibility and authority, and establishing relationships for the purpose of enabling people to work most effectively together in accomplishing objectives. -Louis Allen
- Organising is the process of defining and grouping the activities of the enterprise and establishing authority relationships among them. - Theo Haimman
CBSE: Class 12
Key Points: Concept of organising
CBSE: Class 12
Key Points: Steps in the Process of Organising
- Identification and Division of Work – Work is divided into small and manageable tasks to avoid duplication.
- Departmentalisation – Similar activities are grouped together into departments for specialisation.
- Assignment of Duties – Tasks are assigned to employees according to their skills and abilities.
- Establishing Authority and Reporting Relationships – Clear authority and hierarchy are created so employees know whom to report to and who is responsible.
CBSE: Class 12
Key Points: Importance of Organising
- Benefits of Specialisation – Division of work improves efficiency and productivity.
- Clarity in Working Relationships – Clearly defines authority, responsibility, and reporting lines.
- Optimum Utilisation of Resources – Ensures proper use of human, financial, and material resources.
- Adaptation to Change – Helps the organisation adjust to changes smoothly.
- Effective Administration – Clear job roles make management easier and systematic.
- Development of Personnel – Encourages delegation, creativity, and skill development.
- Expansion and Growth – Supports business growth and diversification.
CBSE: Class 12
Key Points: Organisation Structure
- Organisation structure is the framework within which managerial and operational tasks are performed.
- It is the outcome of the organising process and defines relationships between people, work, and resources.
- It ensures proper coordination of human, physical, and financial resources to achieve goals.
- Span of management refers to the number of subordinates a superior can effectively manage and determines management levels.
- A proper structure ensures smooth communication and better control in the organisation.
CBSE: Class 12
Key Points: Types of Organisation Structures> Functional Structure
- Functional structure groups similar or related jobs into separate departments like production, marketing, finance, and HR.
- It promotes specialisation, as employees perform similar tasks and become experts in their field.
- It improves efficiency, control, and coordination within each department.
- It reduces duplication of work and lowers cost due to economies of scale.
- It may create coordination problems and conflicts between departments due to different interests.
- It is most suitable for large organisations requiring a high degree of specialisation.
CBSE: Class 12
Key Points: Types of Organisation Structures> Divisional Structure
- Divisional structure is formed by creating separate divisions based on product lines or categories.
- Each division is headed by a divisional manager who is responsible for its performance and profit or loss.
- Every division is multifunctional, performing functions like production, marketing, and finance within itself.
- It promotes product specialisation and develops managerial skills for higher positions.
- It ensures better accountability as revenues and costs can be easily identified for each division.
- It allows flexibility, quick decision-making, and easy expansion by adding new divisions.
- It may lead to higher costs and conflicts between divisions due to duplication of activities and competition for resources.
CBSE: Class 12
Difference Between Functional and Divisional Structure
| Basis | Functional Structure | Divisional Structure |
|---|---|---|
| Formation | Based on functions | Based on product lines |
| Specialisation | Functional specialisation | Product specialisation |
| Responsibility | Difficult to fix responsibility | Easy to fix responsibility |
| Managerial Development | Limited growth opportunities | Better development due to autonomy |
| Cost | Economical, no duplication | Costly due to duplication |
| Coordination | Difficult in multi-product firms | Easier within each division |
CBSE: Class 12
Definition: Formal Organisation
- The formal organisation is a system of well-defined jobs, each bearing a definite measure of authority, responsibility and accountability. - Louis Allen
- Formal organisation is a system of consciously coordinated activities of two or more persons toward a common objective. - Chester Barnand
CBSE: Class 12
Key Points: Formal Organisation
- Meaning – Formal organisation is the structure designed by management to achieve specific goals.
- Clear Authority and Responsibility – It clearly defines who reports to whom and specifies duties.
- Based on Rules and Procedures – Work is carried out according to fixed rules and guidelines.
- Coordination of Activities – Ensures proper coordination and integration of departmental efforts.
- Advantages – Fixes responsibility, avoids duplication of work, maintains unity of command, and provides stability.
- Limitation – Delay in Communication – Following the chain of command may slow down decision-making.
- Limitation – Rigid Structure – Gives less importance to creativity and human relationships.
CBSE: Class 12
Definition: Informal Organisation
- An informal organisation is an aggregate of interpersonal relationships without any conscious purpose but which may contribute to joint results. - Chester Barnand
- Informal organisation is a network of personal and social relations not established or required by the formal organisation but arising spontaneously as people associate with one another. - Keith Davis
CBSE: Class 12
Key Points: Informal Organisation
- Meaning – Informal organisation is a network of social relationships that develops naturally among employees.
- Origin – It arises from personal interactions within the formal organisation.
- No Fixed Structure – It has no written rules, fixed hierarchy, or definite communication channels.
- Advantages – Fast Communication – Information spreads quickly and feedback is received faster.
- Social Satisfaction – Fulfils social needs and gives employees a sense of belonging.
- Disadvantages – Rumours and Resistance – May spread rumours and oppose management changes.
- Group Pressure – Members may be pressured to follow group norms, even if against organisational interests.
CBSE: Class 12
Difference Between Formal and Informal Organisation
| Basis | Formal Organisation | Informal Organisation |
|---|---|---|
| Meaning | Structure created by management. | Network of social relationships. |
| Origin | Based on rules and policies. | Arises from social interaction. |
| Authority | Based on position. | Based on personal qualities. |
| Behaviour | Guided by rules. | No fixed behaviour pattern. |
| Communication | Through scalar chain. | Free flow in any direction. |
| Nature | Rigid. | Flexible. |
| Leadership | Managers are leaders. | Leaders are chosen by group. |
CBSE: Class 12
Definition: Delegation
- Delegation is the process a manager follows in dividing the work assigned to him so that he performs that part which only he because of his unique organisational placement, can perform effectively and so that he can get others to help with what remains. - Louis Allen
- Delegation of authority merely means the granting of authority to subordinates to operate within prescribed limits. - Theo Haimman
CBSE: Class 12
Key Points: Delegation
- Meaning – Delegation is the downward transfer of authority from a superior to a subordinate.
- Need for Delegation – A manager cannot perform all tasks alone due to heavy workload.
- Improves Efficiency – It allows managers to focus on important tasks and achieve organisational goals.
- Employee Development – Provides subordinates with recognition, responsibility, and opportunities to develop initiative.
- Accountability Remains – Even after delegation, the manager remains accountable for the final performance.
CBSE: Class 12
Key Points: Elements of Delegation
| Basis | Authority | Responsibility | Accountability |
|---|---|---|---|
| Meaning | Right to command. | Obligation to perform an assigned task. | Answerability for the outcome of the assigned task. |
| Delegation | Can be delegated. | Cannot be entirely delegated. | Cannot be delegated at all. |
| Origin | Arises from formal position. | Arises from delegated authority. | Arises from responsibility. |
| Flow | Flows downward from superior to subordinate. | Flows upward from subordinate to superior. | Flows upward from subordinate to superior. |
CBSE: Class 12
Key Points: Importance of Delegation
- Effective Management – Reduces manager’s workload and allows focus on important tasks.
- Employee Development – Helps employees develop skills and prepares them for higher positions.
- Motivation of Employees – Builds confidence, trust, and self-esteem among subordinates.
- Facilitates Growth – Creates trained employees who can handle expansion and new projects.
- Basis of Management Hierarchy – Establishes superior–subordinate relationships and clear reporting lines.
- Better Coordination – Clearly defines authority, responsibility, and accountability, reducing confusion and duplication of work.
CBSE: Class 12
Definition: Decentralisation
- Decentralisation refers to systematic effort to delegate to the lowest level all authority except that which can be exercised at central points. - Louis Allen
- Everything which goes to increase the importance of a subordinate’s role is decentralisation, everything that goes to reduce it is centralisation. - Henri Fayol
CBSE: Class 12
Key Points: Decentralisation
- Meaning – Decentralisation refers to the delegation of decision-making authority to lower levels of management.
- Sharing of Authority – Decision-making power is distributed throughout different levels of the organisation.
- Opposite of Centralisation – In centralisation, authority remains with top management; in decentralisation, it is delegated downward.
- Suitable for Large Organisations – As organisations grow in size and complexity, decentralisation becomes necessary.
- Balance Required – No organisation is completely centralised or decentralised; a balance between both is essential.
CBSE: Class 12
Key Points: Importance of Decentralisation
- Develops Initiative – Encourages self-reliance and confidence among subordinates by giving them decision-making power.
- Develops Managerial Talent – Provides practical experience and prepares employees for higher positions.
- Quick Decision Making – Decisions are taken at lower levels, leading to faster action and better adaptability.
- Relief to Top Management – Reduces workload of top managers, allowing them to focus on important policy matters.
- Facilitates Growth – Promotes departmental autonomy and healthy competition, increasing productivity and expansion.
- Better Control – Makes it easier to evaluate performance and fix accountability at each level.
- Requires Balance – Should be balanced with centralisation to avoid misuse and ensure unity in major policy decisions.
CBSE: Class 12
Difference Between Delegation and Decentralisation
| Basis | Delegation | Decentralisation |
|---|---|---|
| Nature | Compulsory transfer of authority by a manager. | Optional policy decision by top management. |
| Freedom of Action | Less freedom for subordinates. | Greater freedom for lower levels. |
| Status | A process of sharing tasks and authority. | Result of a policy decision. |
| Scope | Limited to superior and immediate subordinate. | Wider scope across organisation levels. |
| Purpose | Reduces the manager’s workload. | Increases the autonomy and role of subordinates. |
