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Chapter 5 discusses the concept of organizing within a company, highlighting its meaning, importance, and various structures. It outlines the steps involved in organizing, the benefits of specialization, and the differences between formal and informal organizations. Additionally, it covers delegation of authority and the distinctions between centralization and decentralization, emphasizing their significance in effective management.

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Vaishnavi Nigam
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0% found this document useful (0 votes)
45 views5 pages

Wa0008.

Chapter 5 discusses the concept of organizing within a company, highlighting its meaning, importance, and various structures. It outlines the steps involved in organizing, the benefits of specialization, and the differences between formal and informal organizations. Additionally, it covers delegation of authority and the distinctions between centralization and decentralization, emphasizing their significance in effective management.

Uploaded by

Vaishnavi Nigam
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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### ** Keywords & Sentences for All Topics in Chapter 5 (Organizing)**

---

### **1. Meaning of Organizing**

**Keywords:** Structure, Authority, Responsibilities, Coordination, Resource


allocation

**Sentences to Identify:**

- *"The company structured departments to ensure smooth functioning."*

- *"Duties and responsibilities were assigned to employees for efficiency."*

---

### **2. Steps in the Process of Organizing**

**1. Identification & Division of Work** → Specialization, Efficiency

*"Tasks are divided into different roles to avoid duplication of effort."*

**2. Departmentalization** → Grouping similar activities, Functional units

*"The company created separate departments for marketing, production, and


finance."*

**3. Assignment of Duties** → Job roles, Responsibility distribution

*"The HR manager allocated specific tasks to recruitment and training officers."*

**4. Establishing Reporting Relationships** → Authority structure, Hierarchy

*"Employees know who they report to and who gives them instructions."*
---

### **3. Importance of Organizing**

**Benefits of Specialization** → Efficiency, Expertise

*"Employees focus on specific tasks, improving overall productivity."*

**Clarity in Working Relationships** → Defined roles, Less confusion

*"Clear authority structure helps in smooth workflow and decision-making."*

**Optimum Utilization of Resources** → No wastage, Maximum productivity

*"Resources like manpower and finances are used efficiently."*

**Adaptation to Changes** → Flexibility, Quick response

*"A well-structured organization adapts easily to new market trends."*

**Effective Administration** → Systematic functioning, Control

*"Managers can easily monitor performance and implement corrective actions."*

**Development of Personnel** → Growth opportunities, Career advancement

*"Proper role allocation helps employees develop their skills and take on bigger
roles."*

**Expansion & Growth** → Structured scaling, Smooth business growth

*"With an organized setup, the company expanded internationally."*

---
### **4. Types of Organizational Structures**

**1. Functional Structure** → Department-based, Specialized roles

*"All marketing activities are handled by the marketing department."*

**Advantages:** Specialization, Efficiency, Coordination within departments

**Disadvantages:** Lack of inter-departmental coordination, Rigid structure

**2. Divisional Structure** → Product/Geography-based, Self-contained units

*"The company has separate divisions for cars, motorcycles, and trucks."*

**Advantages:** Product-focused, Accountability, Flexible growth

**Disadvantages:** Costly, Duplication of resources, Less coordination

---

### **5. Formal & Informal Organization**

**Formal Organization** → Defined structure, Hierarchical, Official rules

*"Employees follow official reporting relationships and procedures."*

**Informal Organization** → Unofficial relationships, Social interactions, No


structure

*"Colleagues discuss work problems casually over lunch."*

**Importance of Informal Organization:** Faster communication, Motivation, Team


bonding
**Limitations of Informal Organization:** Rumors, Resistance to change, No control

---

### **6. Delegation of Authority**

**Elements of Delegation:**

**1. Authority** → Right to make decisions

*"The manager gives subordinates the power to approve purchase orders."*

**2. Responsibility** → Duty to perform assigned tasks

*"The team leader is responsible for completing the project on time."*

**3. Accountability** → Answerability for outcomes

*"Even after delegation, the manager remains accountable for final results."*

**Importance of Delegation:** Reduces workload, Employee development, Faster


decision-making

---

### **7. Decentralization vs. Centralization**

**Centralization** → Decision-making at top level, Uniformity

*"The head office controls all major decisions for all branches."*

**Decentralization** → Authority delegated to lower levels, Flexibility


*"Branch managers take independent decisions based on local market needs."*

**Importance of Decentralization:** Faster decision-making, Reduces workload,


Encourages innovation

---

**Quick Tip:** Look for **these keywords in case studies** to **identify the right
concept quickly!** Let me know if you need more help!

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