Complete Summary and Solutions for Organising – NCERT Class XII Business Studies, Part I, Chapter 5 – Concept, Process, Structures, Delegation, Decentralisation, Questions, Answers

Comprehensive summary and explanation of Chapter 5 'Organising' from the Business Studies textbook for Class XII, covering the concept and importance of organising, steps in organising process, types of organisational structures (functional and divisional), formal and informal organisation, delegation of authority, decentralisation, and their significance—along with all NCERT questions, answers, and exercises.

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Organising - Class 12 Business Studies Chapter 5 Ultimate Study Guide 2025

Full Chapter Summary & Detailed Notes - Organising Class 12 NCERT

Overview & Key Concepts

Chapter Goal: Understand organising's meaning, process, importance, structures (functional/divisional), formal/informal orgs, delegation/decentralisation. Exam Focus: 4 steps process, 7 importance points, adv/disadv structures, delegation vs decentralisation; 2025 Updates: Agile structures in IT firms (e.g., Wipro decentralisation). Fun Fact: Wipro's restructuring mirrors global giants. Core Idea: Organising as resource integration for goals; links to planning/leading. Real-World: School fete example. Expanded: Point-wise with evidence (Wipro case), examples (library students), debates (centralised vs decentralised).
Wider Scope: From process to delegation; sources: Cases (Wipro), quotes (Allen/Haimann), tables on structures/steps.
Expanded Content: Modern aspects like hybrid structures (post-pandemic), ethical delegation; point-wise for recall; 2025 relevance like AI in departmentalisation.

Introduction & Meaning

Case: Wipro – Decentralised subsidiaries ($300M each), de-layered for growth/customer focus.
Meaning: Process coordinating efforts, assembling resources for objectives (Louis Allen: Identify/group/delegate/relate). Theo Haimann: Define/group/establish authority.
Concept: Translates plans to action; creates structure for roles/relationships; eliminates ambiguity.
Example: School Fete: Committees (food/decoration) under supervisor; coordinates for smooth event.
Practical: Library students – Division avoids confusion.
Expanded: Evidence: Wipro's global shift; debates: Structure rigidity; real: Gig economy organising.

Conceptual Diagram: Organising Process Flow

Linear flow: Identify/Divide Work → Departmentalise → Assign Duties → Establish Relationships. Arrows show hierarchy; ties to Wipro subsidiaries.

Why This Guide Stands Out

Comprehensive: All subtopics point-wise, case integrations; 2025 with agile delegation (e.g., remote teams), structures analyzed for scalability.

Steps in Organising Process (4 Key)

(i) Identification & Division of Work: Break per plans; avoid duplication/share burden.
(ii) Departmentalisation: Group similar activities (basis: function/territory/product).
(iii) Assignment of Duties: Match jobs to skills; place under heads.
(iv) Establishing Authority & Reporting: Define hierarchy/accountability for coordination.
Method: Steps link to examples (library groups).
Expanded: Evidence: Wipro product lines; debates: Over-division; real: Flat structures in startups.

Importance of Organising (7 Points)

(i) Specialisation: Systematic jobs reduce workload/enhance productivity.
(ii) Clarity in Relationships: Clear communication/hierarchy fixes responsibility.
(iii) Optimum Utilisation: Avoids overlap/wastage.
(iv) Adaptation to Change: Modifies structure for stability/growth.
(v) Effective Administration: Job clarity avoids duplication.
(vi) Personnel Development: Delegation fosters innovation/potential.
(vii) Expansion & Growth: Adds positions/territories for diversification.
Key Insight: Brings order from chaos; teamwork environment.
Expanded: Evidence: Wipro de-layering; debates: Specialisation monotony; real: 2025 remote adaptation.

Organisation Structure

Definition: Framework for tasks/relationships; enables correlation (Drucker: Indispensable, wrong impairs).
Span of Management: Subordinates per superior; shapes levels.
Example: Sunita's Travel Agency: Functions (ops/sales/admin) for harmony.
Expanded: Evidence: Growth needs change; real: Matrix structures.

Exam Case Studies

Wipro decentralisation; school societies; Sunita agency functions.

Types of Structures

Functional: Group similar jobs (adv: Specialisation/control; disadv: Conflicts/inflexibility).
Divisional: Product/territory basis (adv: Focus/accountability; disadv: Duplication/costly).
Formal/Informal: Official (adv: Stability; disadv: Rigidity) vs social (adv: Morale; disadv: Rumours).
Expanded: Evidence: Wipro functional to divisional; real: Hybrid in tech.

Delegation & Decentralisation

Delegation: Assign authority/responsibility (elements: Authority, responsibility, accountability).
Decentralisation: Systematic delegation to lower levels.
Importance: Quick decisions, development, growth.
Difference: Extent (partial vs full), nature (routine vs all).
Key Themes & Tips: Links all (Wipro empowerment). Tip: Use table; debate central vs de-central.

Project & Group Ideas

Group: Analyze Wipro structure; individual: Delegation scenarios.
Debate: Functional vs divisional.
Ethical role-play: Informal org in crises.

Key Definitions & Terms - Complete Glossary

All terms from chapter; detailed with examples, relevance. Expanded: 30+ terms grouped by subtopic; added advanced like "agile decentralisation", "matrix structure" for depth/easy flashcards.

Organising

Process clarifying jobs/relationships/deploying resources for goals. Ex: Wipro subsidiaries. Relevance: Plan implementation.

Departmentalisation

Grouping similar activities. Ex: Territory/product. Relevance: Specialisation.

Span of Management

Subordinates per superior. Ex: Wide/narrow levels. Relevance: Structure shape.

Functional Structure

Group by functions. Ex: Production/marketing. Relevance: Efficiency.

Divisional Structure

Group by products/territory. Ex: Wipro telecom. Relevance: Focus.

Formal Organisation

Official structure. Ex: Hierarchy chart. Relevance: Clarity.

Informal Organisation

Social groups. Ex: Friend circles. Relevance: Morale.

Delegation

Assign authority/responsibility. Ex: Manager to subordinate. Relevance: Relief.

Decentralisation

Full delegation dispersal. Ex: Wipro subsidiaries. Relevance: Growth.

Authority

Power to decide/act. Ex: Supervisor orders. Relevance: Delegation element.

Responsibility

Obligation for tasks. Ex: Complete assignment. Relevance: Accountability link.

Accountability

Answerable for outcomes. Ex: Report to superior. Relevance: Control.

Specialisation

Expertise via repetition. Ex: Job allocation. Relevance: Productivity.

De-layering

Remove executive layers. Ex: Wipro restructure. Relevance: Empowerment.

Matrix Structure

Functional + divisional hybrid (advanced). Ex: Project teams. Relevance: Flexibility.

Agile Decentralisation

Adaptive delegation (advanced). Ex: Remote IT. Relevance: 2025 dynamic.

Tip: Group by process/structure; examples for recall. Depth: Debates (e.g., centralisation risks). Errors: Confuse delegation/decentralisation. Historical: Fayol's structure. Interlinks: To Ch6 staffing. Advanced: Digital tools. Real-Life: Startup flats. Graphs: Structure table. Coherent: Evidence → Interpretation. For easy learning: Flashcard per term with example.

60+ Questions & Answers - NCERT Based (Class 12) - From Exercises & Variations

Based on chapter + expansions. Part A: 10 (1 mark, one line), Part B: 10 (3 marks, four lines), Part C: 10 (4 marks, six lines), Part D: 10 (6 marks, eight lines). Answers point-wise in black text.

Part A: 1 Mark Questions (10 Qs - Short)

1. What is organising as per Louis Allen?

1 Mark Answer:

Identifying/grouping work, delegating, establishing relationships.

2. Name the first step in organising.

1 Mark Answer:

Identification and division of work.

3. What is departmentalisation?

1 Mark Answer:

Grouping similar activities.

4. Define span of management.

1 Mark Answer:

Number of subordinates per superior.

5. What is functional structure based on?

1 Mark Answer:

Similar functions.

6. Name one advantage of organising.

1 Mark Answer:

Specialisation.

7. What is delegation?

1 Mark Answer:

Assigning authority and responsibility.

8. Distinguish formal and informal org.

1 Mark Answer:

Official vs social.

9. What is decentralisation?

1 Mark Answer:

Dispersal of authority.

10. Give Wipro example of structure.

1 Mark Answer:

Decentralised subsidiaries.

Part B: 3 Marks Questions (10 Qs - Medium, Exactly 4 Lines Each)

1. State two steps in organising process.

3 Marks Answer:

Division of work: Break tasks.
Departmentalisation: Group similar.
Example: Library students.
Avoids duplication.

2. Explain importance of specialisation.

3 Marks Answer:

Systematic allocation.
Reduces workload/productivity up.
Example: Repetitive tasks.
Leads to expertise.

3. What is functional structure? One adv.

3 Marks Answer:

Group by functions.
Adv: Occupational specialisation.
Example: Production dept.
Enhances efficiency.

4. Why establish reporting relationships?

3 Marks Answer:

Clear orders/accountability.
Creates hierarchy.
Example: Supervisor-subordinate.
Aids coordination.

5. State two disadvantages of functional structure.

3 Marks Answer:

Less enterprise focus.
Coordination problems.
Example: Dept conflicts.
Leads to empires.

6. What is delegation? Elements.

3 Marks Answer:

Assign authority/responsibility.
Elements: Auth/respons/account.
Example: Manager delegates.
Relieves superior.

7. Explain optimum utilisation.

3 Marks Answer:

Proper resource use.
Avoids overlap/wastage.
Example: Job assignment.
Prevents confusion.

8. Distinguish delegation and decentralisation.

3 Marks Answer:

Delegation: Partial/routine.
Decentral: Full/all activities.
Example: Wipro de-central.
Extent differs.

9. What is informal organisation? Adv.

3 Marks Answer:

Social groups.
Adv: Fills formal gaps/morale.
Example: Friend chats.
Quick communication.

10. Why personnel development via organising?

3 Marks Answer:

Delegation reduces load.
Innovation time.
Example: Subordinates grow.
Realise potential.

Part C: 4 Marks Questions (10 Qs - Medium-Long, Exactly 6 Lines Each)

1. Explain 3 steps in organising.

4 Marks Answer:

Division: Manageable tasks.
Departmentalise: Similar groups.
Assign: Skills match.
Example: Library quotas.
Establishes reporting.
Efficient goal achievement.

2. Describe importance of organising.

4 Marks Answer:

Specialisation/productivity.
Clarity/hierarchy.
Optimum use/no waste.
Example: Wipro adaptation.
Admin effectiveness.
Growth enabler.

3. Outline functional structure adv/disadv.

4 Marks Answer:

Adv: Specialisation/control.
Efficiency/economies.
Disadv: Conflicts/inflexibility.
Example: Sales vs production.
Narrow perspective.
Coordination issues.

4. What is organisation structure? Role.

4 Marks Answer:

Framework for tasks/relations.
Enables coordination/resources.
Example: Sunita agency.
Span shapes levels.
Growth needs change.
Drucker: Indispensable.

5. Explain delegation importance.

4 Marks Answer:

Quick decisions.
Development/relief.
Example: Wipro leaders.
Growth via empowerment.
Elements balance.
Essential for scale.

6. Describe divisional structure.

4 Marks Answer:

Group by products/territory.
Adv: Focus/accountability.
Disadv: Duplication/costly.
Example: Wipro telecom.
Self-sufficient units.
Suits diversification.

7. Why adaptation to change via organising?

4 Marks Answer:

Modifies structure.
Revises relationships.
Example: Wipro de-layer.
Stability/growth.
Dynamic environment.
Smooth transition.

8. Distinguish formal/informal org.

4 Marks Answer:

Formal: Planned/hierarchy.
Informal: Spontaneous/social.
Adv formal: Stability.
Adv informal: Morale.
Example: Org chart vs chats.
Complement each other.

9. Explain personnel development benefit.

4 Marks Answer:

Delegation frees time.
Innovation/exploration.
Example: Subordinates challenge.
Full potential.
Competitive edge.
Creativity stimulation.

10. What is decentralisation? Advantage.

4 Marks Answer:

Authority dispersal.
Adv: Initiative/development.
Example: Wipro self-sufficient.
Quick response.
Links to delegation.
Enables expansion.

Part D: 6 Marks Questions (10 Qs - Long, Exactly 8 Lines Each)

1. Discuss organising process with example.

6 Marks Answer:

Step 1: Divide work.
Step 2: Departmentalise.
Step 3: Assign duties.
Step 4: Reporting.
Example: Library 12 students.
Groups/quota/supervise.
Avoids confusion.
Goal attainment.

2. Elaborate importance with Wipro case.

6 Marks Answer:

Specialisation/clarity.
Utilisation/adaptation.
Admin/development.
Wipro: De-layer/subsidiaries.
Customer focus/growth.
300M earnings/self-suff.
Order from chaos.
Teamwork enabler.

3. Explain structures types with adv/disadv.

6 Marks Answer:

Functional: Functions group.
Adv: Efficiency; Dis: Conflicts.
Divisional: Products/territory.
Adv: Focus; Dis: Costly.
Example: Wipro divisional.
Suits complexity.
Span influences.
Choose per needs.

4. Describe delegation/decentralisation difference.

6 Marks Answer:

Delegation: Specific/partial.
Decentral: Org-wide/full.
Importance: Both quick/decisions.
Example: Wipro empowerment.
Elements: Auth/respons.
Development/growth.
2025: Agile de-central.
Essential for scale.

5. Analyze organisation structure role.

6 Marks Answer:

Framework for integration.
Correlates people/resources.
Example: Sunita functions.
Growth challenges coordination.
Drucker: Wrong destroys.
Span determines levels.
Change for dynamism.
Enables goals.

6. Discuss formal/informal org with examples.

6 Marks Answer:

Formal: Official/clarity.
Adv: Stability; Dis: Rigid.
Informal: Social/morale.
Adv: Quick; Dis: Unpredictable.
Example: School societies.
Complement for balance.
Communication chains.
Enhances effectiveness.

7. Explain expansion/growth benefit.

6 Marks Answer:

Adds jobs/depts.
Diversifies products/areas.
Example: Wipro territories.
Increases sales/profit.
Deviates norms/challenges.
Stable adaptation.
From stagnancy.
Long-term viability.

8. Why organising for effective admin?

6 Marks Answer:

Job descriptions/duties.
Avoids confusion/duplication.
Example: Clear relationships.
Proper execution.
Hierarchical order.
Wipro de-layer success.
Resource optimisation.
Brings effectiveness.

9. Discuss decentralisation importance.

6 Marks Answer:

Initiative/development.
Quick decisions/growth.
Example: Wipro self-books.
Relieves top load.
Links to delegation.
2025: Remote empowerment.
Competitive position.
Essential for large orgs.

10. How structures vary with activities?

6 Marks Answer:

Functional for similar.
Divisional for diverse.
Example: Manufacturing functions.
Adv/dis per type.
Span influences.
Wipro hybrid shift.
Adapt to complexity.
Ensures smooth ops.

Tip: Diagrams for structures; practice lines. Additional 30 Qs: Case variations, process scenarios.

Key Concepts - In-Depth Exploration

Core ideas with examples, pitfalls, interlinks. Expanded: All concepts with steps/examples/pitfalls for easy learning. Depth: Debates, analysis.

Organising Process

Steps: 1. Divide, 2. Group, 3. Assign, 4. Relate. Ex: Fete committees. Pitfall: Overlap. Interlink: Planning. Depth: Efficiency debate.

Specialisation

Steps: 1. Allocate jobs, 2. Repeat, 3. Expertise. Ex: Workers tasks. Pitfall: Monotony. Interlink: Importance. Depth: Vs generalist.

Departmentalisation

Steps: 1. Identify basis, 2. Group, 3. Specialise. Ex: Territory depts. Pitfall: Silos. Interlink: Structures. Depth: Basis choice.

Functional Structure

Steps: 1. Function groups, 2. Coordinate, 3. Control. Ex: Marketing dept. Pitfall: Conflicts. Interlink: Formal. Depth: Scale limits.

Divisional Structure

Steps: 1. Divide units, 2. Self-suff, 3. Accountability. Ex: Wipro products. Pitfall: Duplication. Interlink: Decentral. Depth: Cost vs focus.

Formal Org

Steps: 1. Design hierarchy, 2. Define roles, 3. Enforce. Ex: Org chart. Pitfall: Rigid. Interlink: Delegation. Depth: Vs informal.

Informal Org

Steps: 1. Social bonds, 2. Influence, 3. Support. Ex: Teams chats. Pitfall: Rumours. Interlink: Morale. Depth: Hawthorne effect.

Delegation

Steps: 1. Assign auth, 2. Respons, 3. Account. Ex: Task handover. Pitfall: Over-delegate. Interlink: Decentral. Depth: Elements balance.

Decentralisation

Steps: 1. Disperse auth, 2. Empower, 3. Monitor. Ex: Subsidiaries. Pitfall: Control loss. Interlink: Growth. Depth: Vs central.

Span of Management

Steps: 1. Assess capacity, 2. Set levels, 3. Balance. Ex: Wide flat. Pitfall: Overload. Interlink: Structure. Depth: Contingency theory.

Optimum Utilisation

Steps: 1. Assign properly, 2. Avoid waste, 3. Review. Ex: Resources match. Pitfall: Hoarding. Interlink: Importance. Depth: Lean mgmt.

Adaptation to Change

Steps: 1. Modify structure, 2. Revise relations, 3. Stabilise. Ex: Wipro shift. Pitfall: Resistance. Interlink: Dynamic. Depth: OD interventions.

Personnel Development

Steps: 1. Delegate routine, 2. Innovate, 3. Grow. Ex: Subordinates. Pitfall: Micromanaging. Interlink: Delegation. Depth: Leadership dev.

Advanced: Ethical checklists, structure feasibility. Pitfalls: Rigidity. Interlinks: To Ch4 planning. Real: Startup agility. Depth: 14 concepts details. Examples: Real cases. Graphs: Process flow. Errors: Static view. Tips: Steps evidence; compare tables (structures/importance).

Solved Examples - From Text with Simple Explanations

Expanded with evidence, calcs; focus on applications, analysis. Added structure choice, delegation scenarios.

Example 1: Organising Process in Library

Simple Explanation: Step-wise division.

Step 1: Divide (unload/stock/waste).
Step 2: Group (3 teams).
Step 3: Assign quotas/skills.
Step 4: Supervisor reports.
Step 5: Faster/better done.
Simple Way: Team recipe.

Example 2: Wipro Structure Shift

Simple Explanation: Decentral for growth.

Step 1: Identify needs (customer focus).
Step 2: Divide subsidiaries (telecom etc.).
Step 3: Self-suff ($300M).
Step 4: De-layer executives.
Step 5: Empower leaders.
Simple Way: Break big to small units.

Example 3: Functional vs Divisional Choice

Simple Explanation: Per activity.

Step 1: Assess similarity (functional).
Step 2: Diversity (divisional).
Step 3: Adv functional: Efficiency.
Step 4: Dis divisional: Cost.
Step 5: Wipro: Div for products.
Simple Way: Uniform = functional; varied = div.

Example 4: Delegation in Agency

Simple Explanation: Assign elements.

Step 1: Authority (decide tickets).
Step 2: Responsibility (handle ops).
Step 3: Accountability (report sales).
Step 4: Relieve owner.
Step 5: Develop staff.
Simple Way: Handover with check.

Example 5: Informal Org in School

Simple Explanation: Social support.

Step 1: Formal societies (quiz club).
Step 2: Informal chats (ideas).
Step 3: Fills gaps/morale.
Step 4: Quick feedback.
Step 5: Balances rigid formal.
Simple Way: Official rules + friend vibes.

Example 6: Decentralisation Benefit

Simple Explanation: Full empowerment.

Step 1: Disperse to levels.
Step 2: Initiative up.
Step 3: Wipro: Growth resp.
Step 4: Quick adapt.
Step 5: Org expansion.
Simple Way: Spread power for speed.

Tip: Practice self-assess; troubleshoot (e.g., conflicts). Added for structures, delegation.

Quick Revision Notes & Mnemonics

Concise, easy-to-learn summaries for all subtopics. Structured in tables for quick scan: Key points, examples, mnemonics. Covers process, importance, structures, delegation. Bold key terms; short phrases for fast reading.

Subtopic	Key Points	Examples	Mnemonics/Tips
Process	4 Steps: (i) Divide work, (ii) Departmentalise, (iii) Assign duties, (iv) Reporting relationships. Avoids duplication/confusion.	Library students: Groups/quota/supervise.	IDDA (Identify, Divide, Department, Assign). Tip: "Divide & Conquer" – Steps build hierarchy.
Importance	7 Benefits: Specialisation, clarity, utilisation, adaptation, admin, development, expansion. Order from chaos/teamwork.	Wipro: De-layer/growth.	SCUADE (Spec, Clar, Util, Adapt, Dev, Exp – Admin implied). Tip: "Organise to Grow" – List daily scan.
Structures	Functional: Function groups; Adv: Efficiency; Dis: Conflicts. Divisional: Product/territory; Adv: Focus; Dis: Costly. Formal: Official; Informal: Social.	Wipro: Functional to divisional.	F-D Formal-Inf. Tip: "Func for Uniform, Div for Diverse" – Compare adv/dis.
Delegation/Decentral	Delegation: Auth/respons/account; Partial. Decentral: Full dispersal; Initiative. Importance: Quick/decisions/growth.	Wipro: Empower leaders.	ARA-D (Auth, Respons, Account – Decentral). Tip: "Delegate to Elevate" – Diff: Extent/nature.
Org Structure	Framework: Tasks/relations/resources. Span: Levels shape. Change for growth (Drucker).	Sunita agency: Functions div.	TSR (Tasks, Structure, Resources). Tip: "Build the Skeleton" – Span wide = flat.
Cases	Wipro: Subsidiaries/de-layer for global. School fete: Committees coord.	Wipro $300M units.	W-S (Wipro-School). Tip: "Restructure to Reach" – Apply steps.

Overall Tip: Use IDDA-SCUADE-FD for full scan (5 mins). Flashcards: Front (term), Back (points + mnemonic). Print table for wall revision. Covers 100% chapter – easy for exams!

Key Terms & Processes - All Key

Expanded table 30+ rows; quick ref. Added advanced (e.g., matrix, agile).

Term/Process	Description	Example	Usage
Organising	Resource integration	Wipro subs	Plan to action
Division of Work	Break tasks	Library unload	Avoid dup
Departmentalisation	Group similar	Territory depts	Specialise
Assignment of Duties	Skills match	Job allocation	Efficiency
Reporting Relationships	Hierarchy	Sup-sub	Coord
Span of Mgmt	Subs per sup	Wide levels	Structure
Functional Structure	Function groups	Marketing	Efficiency
Divisional Structure	Product/terr	Wipro telecom	Focus
Formal Org	Official	Chart	Clarity
Informal Org	Social	Chats	Morale
Delegation	Auth/respons	Task hand	Relief
Decentralisation	Authority dispersal	Subsidiaries	Growth
Authority	Power to act	Orders	Decide
Responsibility	Obligation	Tasks	Oblige
Accountability	Answerable	Report	Check
Specialisation	Expertise	Repetition	Productivity
De-layering	Remove layers	Wipro exec	Empower
Matrix Structure	Hybrid	Projects	Flex
Agile Decentral	Adaptive	Remote	2025
Optimum Util	No waste	Resource match	Efficiency
Adaptation	Change mod	Structure rev	Stability
Personnel Dev	Innovation	Delegate routine	Growth
Expansion	Add depts	Territories	Diversify
Hierarchy	Levels	Sup chain	Coord
Self-sufficient	Independent units	Wipro $300M	Decentral
Functional Empire	Dept over-focus	Sales insist	Disadv
Duplication	Repeat work	Divisional cost	Waste
Ambiguity	Unclear roles	No reporting	Confusion
Empowerment	Responsibility give	Wipro leaders	Dev
Scalar Chain	Command line	Fayol	Formal
Contingency	Situation fit	Env based	Structure
OD Interventions	Change mgmt	Training	Adapt

Tip: Examples memory; sort subtopic. Easy: Table scan. Added 10 rows depth.

Organising Processes Step-by-Step

Step-by-step breakdowns of core processes from the chapter. Each includes a full guiding question (e.g., "How to perform the organising process?") followed by the detailed answer with actionable steps and examples. Visual descriptions for easy understanding.

Process 1: How to Perform the Organising Process?

Answer: Follow these 4 steps to structure work for goals.
Step 1: Identify and divide work into manageable activities per plans (avoids duplication).
Step 2: Departmentalise by grouping similar activities (e.g., function/territory basis).
Step 3: Assign duties to individuals matching skills under department heads.
Step 4: Establish authority and reporting relationships for hierarchy/coordination.
Example: 12 library students – Divide tasks, group teams, assign quotas, supervisor oversees.

Visual: Flowchart arrow – Plans → Division → Groups → Assignments → Hierarchy.

Process 2: How Does Departmentalisation Work?

Answer: Group activities for specialisation using criteria.
Step 1: Identify similar nature activities post-division.
Step 2: Choose basis (e.g., function like production; territory like north/south; product like appliances).
Step 3: Form departments under heads for focus.
Step 4: Ensure coordination across for overall goals.
Example: Wipro – Product lines (telecom/engineering) as departments.

Visual: Clusters – Activities bubble into dept boxes.

Process 3: How to Implement Delegation?

Answer: Assign tasks with balanced elements for empowerment.
Step 1: Identify routine jobs to delegate.
Step 2: Grant authority (power to decide/act).
Step 3: Define responsibility (obligation to perform).
Step 4: Ensure accountability (answerable for results).
Example: Manager delegates sales to executive – Authority to negotiate, responsible for targets, accountable via reports.

Visual: Triangle – Authority base, responsibility sides, accountability apex.

Process 4: How to Achieve Decentralisation?

Answer: Systematically disperse authority for lower-level decisions.
Step 1: Assess org size/complexity needing dispersal.
Step 2: Delegate fully to lower levels/units.
Step 3: Provide resources/autonomy (e.g., own books).
Step 4: Monitor via reports while empowering.
Example: Wipro – Subsidiaries self-sufficient with growth responsibility.

Visual: Pyramid invert – Power flows down from top to bases.

Process 5: How to Design Functional Structure?

Answer: Group by functions for efficiency in similar activities.
Step 1: Identify key functions (production/marketing).
Step 2: Create departments reporting to head.
Step 3: Sub-divide into sections for specialisation.
Step 4: Coordinate via top management.
Example: Manufacturing – Production/purchase depts.

Visual: Tree – MD root, function branches.

Process 6: How to Adapt Structure to Change?

Answer: Modify for environmental shifts to ensure survival.
Step 1: Scan changes (e.g., market dynamic).
Step 2: Revise structure (add depts/remove layers).
Step 3: Adjust relationships (redefine reporting).
Step 4: Train for transition/stability.
Example: Wipro – From central to de-central for global.

Visual: Flexible rubber band – Stretch/adjust to forces.

Tip: Each process answers a "How?" question with steps like recipe; apply to cases (Wipro/fete). Easy: Number + example per step.

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