NCERT Class 12 Business Studies Business Studies-I: Chapter 5 — Organising
This chapter, 'Organising,' from NCERT Class 12 Business Studies (Business Studies-I), explains the crucial management function of organizing resources to achieve planned objectives. It details the process of organizing, its importance, and introduces different organizational structures like functional and divisional. The chapter also delves into formal versus informal organizations and the concepts of delegation and decentralization. Using Wipro's restructuring as a case study, it illustrates how effective organizing, including de-layering and empowering business leaders, is vital for adapting to dynamic environments and achieving global success. The chapter emphasizes that organizing translates plans into action by coordinating human efforts and resources for optimal utilization and collective effectiveness.
Quick info
| Board | CBSE / NCERT |
|---|---|
| Class | Class 12 |
| Subject | Business Studies |
| Book | Business Studies-I |
| Chapter | Chapter 5 — Organising |
| Language | English |
| PDF type | NCERT Textbook |
| Session | CBSE 2026 |
| Reading time | 4 minutes |
| Word count | 765 |
Learning outcomes
- Explain the concept and process of organising.
- Describe the importance of organising.
- Explain functional and divisional organisations, including their advantages and disadvantages.
- Differentiate between formal and informal organisations.
- Explain delegation and decentralisation and their importance.
- Distinguish between delegation and decentralisation.
Vocabulary
| Word | Meaning |
|---|---|
| Organising | The management function that establishes relationships between activities and resources to achieve objectives. |
| Organisational structure | The framework that outlines roles, responsibilities, and authority relationships within an organisation. |
| Functional organisation | An organisational structure based on specialised functions or departments. |
| Divisional organisation | An organisational structure based on product lines, geographical areas, or customer groups. |
| Formal organisation | The structure of the organisation defined by management, specifying authority and responsibility. |
| Informal organisation | A network of personal and social relationships that arise spontaneously as people associate within the formal structure. |
| Delegation | The assignment of responsibility and authority to another person, typically a subordinate. |
| Decentralisation | The systematic delegation of authority at all levels of management except the top level. |
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Practice questions
- What is the primary goal of the organising function? Answer: To coordinate human efforts, assemble resources, and integrate them to achieve organisational objectives.
- Give an example of a functional department in a company. Answer: Marketing department, Finance department, Production department.
- What is the key difference between delegation and decentralisation? Answer: Delegation is the assignment of authority by a superior to a subordinate, while decentralisation is the systematic delegation of authority throughout all levels of management.
Practice MCQs
Q1. Which management function follows planning and sets the stage for execution?
Explanation: Organising is the management function that follows planning and involves structuring resources and activities to achieve objectives.
Q2. Wipro Technologies restructured itself by separating into subsidiaries based on:
Explanation: Wipro separated into subsidiaries based on product lines like telecommunications, engineering, and financial services to improve customer orientation and achieve global success.
Q3. An organisational structure based on specialized functions is known as:
Explanation: Functional organisation groups jobs based on similar functions or tasks performed.
Q4. Which of the following is NOT an advantage of decentralisation?
Explanation: Decentralisation often leads to varied policies at different levels as authority is dispersed, unlike centralised systems which aim for uniformity.
Q5. The network of personal and social relationships arising spontaneously within an organisation is called:
Explanation: Informal organisation refers to the social relationships and networks that emerge naturally among employees.
Frequently asked questions
What is the core purpose of the organising function in business?
The organising function aims to coordinate human efforts, assemble resources, and integrate them to achieve the objectives laid down in the planning function, ensuring optimal utilization of resources.
How did Wipro's restructuring contribute to its goal of becoming a global giant?
Wipro restructured by separating into subsidiaries based on product lines and shifting to a decentralised management system, empowering business leaders and improving customer orientation, which helped it compete globally.
What are the main types of organisational structures discussed in the chapter?
The chapter discusses functional organisation (based on specialized functions) and divisional organisation (based on product lines, geography, or customers).
What is the difference between formal and informal organisations?
A formal organisation is deliberately designed by management to achieve objectives, defining authority and responsibility, while an informal organisation is a network of personal and social relationships that arise spontaneously.
What is delegation and how does it differ from decentralisation?
Delegation is the assignment of authority and responsibility by a superior to a subordinate. Decentralisation is the systematic delegation of authority at all levels of management below the top level.
Why is organising considered important for implementing plans?
Organising creates an organisational structure that clarifies roles, defines interrelationships, assigns authority and responsibility, and logically groups activities, which is essential for the successful implementation of plans.
Related resources
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Topics covered
NCERT Class 12 Business Studies — Business Studies-I — Chapter 5 — Organising. Verified by NCERT Help Editorial Team. Reviewed on 29 Jul 2026. Last updated 10 Aug 2026.