Organising — Part 2: Formal and Informal Organisation, Delegation and Decentralisation: visual lesson, CBSE Class 12 Business Studies

Lesson

Organising: people and authority

Part 2 — formal and informal organisation, delegation and decentralisation.

In this lesson you will

Compare formal and informal organisation with their merits and limits
Explain delegation and its elements: authority, responsibility and accountability
Explain decentralisation and its importance
Distinguish between delegation and decentralisation

Part 2 at a glance

Diagram

Table of features of formal organisation: designed by management, written rules, authority from position, and communication through the official chain
Formal organisation	Feature
Origin	Deliberately designed by top management
Rules	Written rules, procedures and job descriptions
Authority	Comes from the position held
Communication	Through the official chain (scalar chain)

Diagram

How informal organisation grows