10 Importance of Organizing | Free Management Blogs

Importance of Organizing

What is Organising?

Organizing is the process of identifying, bringing the required resources together such as men, money, material, machine and method, grouping and arranging them properly for achieving the objectives.

In planning, the management decides what is to be done in future whereas organizing function decides the ways and means to achieve what has been planned. This function is important for execution of the plans which have been prepared by top level management people. 

The synchronization and combination of workforce, physical, financial and information resources are established in the process of organizing.

Definitions of Organising:

The term ‘organization’ is used to denote the structure. It is a unit or a group of people who come together to achieve a common goal whereas ‘organizing’ is a process and a function.

According to Koontz and O’Donnell: 
“Organization involves the grouping of activities necessary to accomplish goals and plans, the assignment of these activities to appropriate departments and the provision of authority, delegation and co-ordination.”

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Importance of Organizing

1) Facilitates Administration as well as Operation

Organizing process leads to identify and to group the activities. Grouping and assigning the activities is the task of administration whereas processing according to it is operational activity. 

Thus, organizing facilitates administration as well as operation of the organization. Due to proper grouping of the tasks and the employees, there is increase in production and reduction in wastage. Duplication of work is restricted and effective delegation becomes possible.

2) Brings Specialization

Organizational structure is a network of relationships in which the work is divided into units and departments. This division of work helps in bringing specialization in various activities of organization.

Specialization in activities leads to increase in organizational efficiency.

3) Defines the Jobs Properly

Organizational structure helps in putting right men on right job which can be done by selecting people for various departments according to their qualification, skill and experience.

This is helping in defining the jobs properly which clarifies the role of every person.

4) Clarifies Authority and Responsibility

Organizational structure defines the role to every manager. This can be done by delegating the authority to every manager and clarifying the way he has to exercise those powers. So that misuse of powers does not take place.

Well defined jobs and responsibilities helps in bringing efficiency into managers working. This helps in increasing productivity.

5) Establishes Coordination

This function helps in establishing co-ordination among different departments of organization. It creates clear cut relationships among positions and ensures mutual co-operation among individuals.

Coordination or synchronization between all departments and different level of managers is important for smooth functioning of organizational activities.

6) Helps for Effective Administration

This function determines different positions, departments, activities and the roles are clearly structured. The utmost care is taken while placing right person in right job with right authorities and responsibilities.

It is achieved through division of work and delegation of authorities. This all leads to efficient and effective administration.

7) Helpful for Growth and Diversification

The growth of every organization depends on its smooth and efficient functioning. Clearly defined roles and responsibilities, coordination among all levels of management personnel and use of appropriate control techniques bring efficiency at work place and organization grows well. This is possible only when the organization structure is well- defined

8) Creates Sense of Security

Organizational structure clarifies the job positions. It clearly states the duties and responsibilities of everyone. Everyone can work accordingly.

Clarity in jobs and powers helps in increasing mental satisfaction and it creates sense of security among the employees.

9) Scope for Innovation

Organizing function clears the roles and activities to be performed. Employees can work by using their new ideas. This provides enough space to the manager to develop talent and flourish the knowledge. This scope for innovation into adopting new changes in methods of work is possible only through a set of organizational structure.

10) Helps in Optimum Utilization of Resources

This function provides different jobs to different employee according to the job specification. Due to this, specialization of work becomes possible. This right workforce utilizes other resources at its optimum level so that desired results are achieved within defined period. 

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