Importance of Organizing

Organizing does the following:

· Ensures optimum utilisation of human resources: Every enterprise appoints employees for the conduct of various business activities and operations. They are given the work according to their qualifications and experience. Organizing ensures that every individual has the job position for which he is best suited.

· Facilitates coordination: It acts as a means of bringing coordination and integration among the activities of individuals and departments of the enterprise. It establishes clear-cut relationships between operating departments and brings proper balance in their activities.

· Facilitates division of work: Different departments are created for division of work, specialization and orderly working of the enterprise. Similarly, delegation relieves top level managers from routine duties.

· Ensures growth, expansion and diversification: Reasonable Organisation structure facilitates expansion/diversification of an enterprise. Organisation structure has in-built capacity to absorb additional activities and also effective control of them. A business enterprise brings diversification in its activities within the framework of its Organisation.

· Stimulates creativity: Organisation provides training and self-development facilities to managers and subordinates through delegation and departmentalization. It also encourages initiative and creative thinking on the part of managers and others.

· Facilitates administration: Effective administration of business will not be possible without the support of reasonable organisation structure. Delegation, departmentalization and decentralisation are the tools for effective administration.

· Determines optimum use of technology: Reasonable Organisation structure provides opportunities to make optimum use of technology. It facilitates proper maintenance of equipment and also meets high cost of installation.

· Determines individual responsibility: Responsibility is an obligation to do the assigned work. In such Organisation, the manager finds it easy to pinpoint individual responsibility when the work is spoilt.

Fundamental concept of organizing:

Ø DIFFERENTIATION: It means that an organization is composed of units that work on specialized tasks using different work methods and requiring employees with unique competencies.

Ø INTEGRATION: It means that the various units must be put back together so that work is coordinated.

NATURE OF organizing:

1. Group of Persons

2. Common Objectives

3. Division of Work

4. Cooperative Efforts

5. Communication

6. Central Authority

7. Rules & Regulations

8. Dynamic Element

õ Group of Persons: An organization is a group of people working together for the achievement of common objectives. The group may be large or small. An organization is a system of cooperative relationships of two or more persons.

õ Common Objectives: Every organization has a common objectives distinct from personal objectives of the members. The common goal is the basis of cooperation among the members. The objectives of the organization are usually are made explicit

õ Division of Work: An organization comes into existence when the total task is divided into the members of the group. Division of work is necessary not only because one individual cannot do all the work but specialization results in efficiency and effectiveness.

õ Cooperative Efforts: The members of an organization are willing to help each other for the achievement of desired goals. Cooperative relationships are stabilized both vertically and horizontally among different units of the organization:

õ Communication: People who form an organization communicates with each other in order to integrate or coordinate there efforts. The structure must be such that people can perform together efficiently.

õ Central Authority: In an organization, there is a central directing authority which controls the concerted efforts of the group. The chain of authority- responsibility relationships is known as the chain of command.

õ Rules and Regulations: For the orderly and systematic working of the members, rules and regulations are laid down and enforced by the central authority.

õ The Dynamic Element: An organization is not a mere mechanical structure but a living organism arising out of the sentiments, attitudes, and behavior of people. The people are the material of construction that holds the structure together and gives it vitality.