Match the following:

A – iii), B – iv), C – i), D – ii)

The correct answer is option 3- A – iii), B – iv), C – i), D – ii).

* Leads to specialisaiton- Importance of organisation. Organising can be defined as a process that initiates implementation of plans by clarifying jobs and working relationships and effectively deploying resources for attainment of identified and desired results (goals). The following points highlight the crucial role that organising plays in any business enterprise:

(i) Benefits of specialisation: Organising leads to a systematic allocation of jobs amongst the work force. This reduces the workload as well as enhances productivity because of the specific workers performing a specific job regularly. Repetitive performance of a particular task allows a worker to gain experience in that area and leads to specialisation.

(ii) Clarity in working relationships: The establishment of working relationships clarifies lines of communication and specifies who is to report to whom. This removes ambiguity in transfer of information and instructions. It helps in creating a hierarchical order thereby enabling the fixation of responsibility and specification of the extent of authority to be exercised by an individual.

(iii) Optimum utilization of resources: Organising leads to the proper usage of all material, financial and human resources. The proper assignment of jobs avoids overlapping of work and also makes possible the best use of resources. Avoidance of duplication of work helps in preventing confusion and minimizing the wastage of resources and efforts.

(iv) Adaptation to change: The process of organising allows a business enterprise to accommodate changes in the business environment. It allows the organisation structure to be suitably modified and the revision of inter-relationships amongst managerial levels to pave the way for a smooth transition. It also provides much needed stability to the enterprise as it can then continue to survive and grow despite changes.

(v) Effective administration: Organising provides a clear description of jobs and related duties. This helps to avoid confusion and duplication. Clarity in working relationships enables proper execution of work. Management of an enterprise thereby becomes easy and this brings effectiveness in administration.

(vi) Development of personnel: Organising stimulates creativity amongst the managers. Effective delegation allows managers to reduce their workload by assigning routine jobs to their subordinates. The reduction in workload by delegation is not just necessary because of the limited capacity of an individual but also allows the manager to develop new methods and ways of performing tasks. It gives them the time to explore areas for growth and the opportunity to innovate thereby strengthening the company’s competitive position. The delegation also develops in the subordinate the ability to deal effectively with challenges and helps them to realize their full potential.

(vii) Expansion and growth: Organising helps in the growth and diversification of an enterprise by enabling it to deviate from existing norms and taking up new challenges.

* Functional and divisional- Types of organisation structure. Organisational structure is the framework within which managerial and operating tasks are performed. It can be functional or divisional. Functional structure groups activities on the basis of functions. The advantages of such a structure are specialisation, better control, managerial efficiency and ease in training employees. The disadvantages are functional empires, conflict of interest, inflexibility, and restriction in managerial development. Divisional structure groups activities on the basis of products. The advantages are integration, product specialisation, greater accountability, flexibility, better coordination and more initiative. The disadvantages are departmental conflicts, costly process, ignoring of organisational interests, increase in requirements of general managers.

* It has narrow scope- Delegation. It has narrow scope as it is limited to superior and his immediate subordinate.

* Reporting relationship- Step of organising Process. Organising is the process of defining and grouping activities and establishing authority relationships among them. Process: the process of organising consists of the following steps: (a) Identification and division of work (b) Departmentalisation (c) Assignment of Duties (d) Establishing reporting relationships.