Cheat sheet · Class 12 · CBSE · Commerce Business Studies
Organising cheat sheet
The whole chapter on one page: key formulas, facts and the points to remember, for quick revision before a test.
CBSE Class 12 · Business Studies
Cheat sheet
Chapter 5Organising
Delegation transfers authority, never accountability.
1. Process
- Identify and divide work → departmentalise → assign duties → establish reporting relationships.
2. Structures
| Structure | Grouping | Suits |
|---|---|---|
| Functional | by function (production, finance) | single product, large firm |
| Divisional | by product/region | multi-product firms |
Formal organisation
deliberate structure, official rules.
Informal organisation
social relations, grapevine.
3. Delegation
- authority
- responsibility
- accountability
Accountability can't be delegated.
4. Decentralisation
Systematic delegation to the lowest levels; an optional policy decision. Helps quick decisions and develops managers.
5. Key Points
- Span of management shapes the structure.
- Delegation is compulsory; decentralisation optional.
- Authority flows down; accountability flows up.
- Informal groups can help or hinder.
Remember: Process | functional vs divisional | delegation elements
Organising: questions and notes
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