Exam Tomorrow · Class 12 Business Studies · Chapter 5

Organising Quick Revision

Get structure, delegation and decentralisation clear before the exam.

60-second revision

  • Organising identifies and divides work, groups related activities, assigns duties and establishes reporting relationships.
  • Functional structure groups jobs by functions; divisional structure groups activities around products, territories or markets.
  • Delegation involves assignment of responsibility, grant of authority and creation of accountability.
  • Decentralisation is the systematic dispersal of decision-making authority to lower levels.

Keywords to remember

division of work · departmentalisation · authority · responsibility · accountability · decentralisation

Common mistakes

  • Responsibility can be assigned and authority delegated, but ultimate accountability of the superior cannot simply disappear.
  • Delegation and decentralisation are related but not identical; decentralisation is a broader organisational policy of dispersing authority.

Important questions

  1. Explain the steps in the organising process.
  2. Differentiate functional and divisional structures.
  3. Explain the elements and importance of delegation.

Quick MCQ check

Question 1: Organising usually begins with:

  • Identification and division of work
  • Selection
  • Price fixation
  • Advertising

Explanation: Work must first be identified and divided before it can be grouped and assigned.

Question 2: Which is NOT an element of delegation?

  • Authority
  • Responsibility
  • Accountability
  • Advertising

Explanation: Delegation involves authority, responsibility and accountability.

Question 3: A structure based on departments such as finance, marketing and HR is:

  • Divisional
  • Functional
  • Informal only
  • Matrix by default

Explanation: Functional structure groups similar specialised functions together.

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