# Organising Notes, Class 12 Business Studies | SwaVid Organising, NCERT Class 12 Business Studies: notes with key ideas, definitions, common mistakes and 3 quick checks with worked answers. Canonical: https://www.swavid.com/cbse/class-12/business-studies/chapter/organising Source: https://www.swavid.com/cbse/class-12/business-studies/chapter/organising # Organising ## Key definitions ## Key ideas ## Common mistakes ## Quick checks ## Keep going ## Questions parents ask ## Class 12 Business Studies on SwaVid ### Meaning and steps in organising ### Importance of organising ### Organisation structure ### Functional structure ### Divisional structure ### Delegation and its elements ### Decentralisation ### Next chapter ### Related chapter ### All chapters SwaVid › CBSE › Class 12 › Business Studies › Organising Notes written by SwaVid from the NCERT textbook. Class 12 Business Studies, Chapter 5. Key ideas, definitions and common mistakes. CBSE does not print marks for a single chapter. Short answer. This chapter explains organising as a management function that defines roles, groups activities, and allocates resources to achieve planned goals. Students learn how organizational structures are designed and how authority is shared through delegation and decentralisation. Source: NCERT Business Studies Part I (Reprint 2026-27) , Chapter 5, Organising Organising is the process of identifying and grouping work, defining responsibilities, and establishing reporting relationships. The steps comprise identification and division of work, departmentalisation, assignment of duties, and establishing reporting relationships. Organising provides benefits of specialisation, clarity in working relationships, and optimum utilisation of resources. It also aids adaptation to change, effective administration, development of personnel, and expansion and growth. Organisation structure is the framework within which managerial and operating tasks are performed. It is dictated by the span of management, which refers to the number of subordinates that a superior can effectively manage. A functional structure groups activities on the basis of functions like production, marketing, finance, and human resources. It promotes occupational specialisation and managerial efficiency but may lead to functional empires and inter-departmental conflicts. A divisional structure groups activities on the basis of product lines, where each division operates as an autonomous unit with its own functional heads. It aids product specialisation and accountability but may increase operating costs due to duplication of resources. Delegation is the downward transfer of authority from a superior to a subordinate. Its three elements are authority, responsibility, and accountability. While authority and responsibility can be shared, ultimate accountability cannot be delegated. Decentralisation refers to the systematic dispersal of decision-making authority to the lowest levels throughout the organisation. It is an optional management philosophy that reduces top management burden and develops managerial talent for the future. Try each question first. Then tap it to see the answer. Identify the delegation relationship: the supervisor was given responsibility and authority by the production manager. Apply the principle of absoluteness of accountability. Delegating work to the foreman does not relieve the supervisor of final answerability to the production manager. Yes, because accountability is absolute and cannot be delegated. Identify the basis of grouping jobs: the company operates separate units around distinct product lines. Each unit contains its own functional facilities and functions as an autonomous profit centre. A structure grouping activities by product line is a divisional structure. Divisional structure Identify the relationship between authority and responsibility. The executive has been given responsibility without matching authority to take decisions on discounts and travel. For effective delegation, authority must be commensurate with responsibility. Authority was withheld; parity of authority and responsibility is violated, making the assigned task difficult to achieve. Staffing . Directing . The 11 chapters of Class 12 Business Studies . CBSE does not give marks to one chapter. It prints marks for units or parts, and the chapter list page shows them all. No. They are written by SwaVid from the NCERT textbook. The CBSE curriculum is the reference for what is assessed. Staffing. SwaVid is an AI tutor for Indian students in Classes 6 to 12. It finds the earlier ideas a child missed, then teaches today’s chapter. Start free to see how it works. - Ch 5 NCERT book - 80 marks, theory paper - 3 quick checks - Believing that accountability can be delegated to a subordinate . Remember the principle of absoluteness of accountability. A manager can pass on authority and assign responsibility, but remains fully answerable to their own superior for the completed task. - Treating delegation and decentralisation as the same concept . Treat delegation as an essential individual technique to get work done through a subordinate, while decentralisation is a wider policy decision affecting all levels across the enterprise. - Selecting a divisional structure for a single-product enterprise . Recommend a functional structure for a company producing a single line of goods. A divisional structure is suited when an enterprise produces multiple diversified products requiring independent functional setups. ## Key Links - [CBSE](https://www.swavid.com/cbse) - [Class 12](https://www.swavid.com/cbse/class-12) - [Business Studies](https://www.swavid.com/cbse/class-12/business-studies/chapters) - [Start free →](https://www.swavid.com/signup) - [All 11 chapters](https://www.swavid.com/cbse/class-12/business-studies/chapters) - [NCERT Business Studies Part I (Reprint 2026-27)](https://ncert.nic.in/textbook.php) - [Open notes](https://www.swavid.com/cbse/class-12/business-studies/chapter/staffing) - [Open notes](https://www.swavid.com/cbse/class-12/business-studies/chapter/directing) - [Class 12 Business Studies](https://www.swavid.com/cbse/class-12/business-studies/chapters) - [Start free →](https://www.swavid.com/signup)