Organizing is the function of the management which follows the first function of management i.e. planning. It is a function that brings together the human, physical, and financial resources of the organization. The synchronization of all three resources is essential to derive the results. Therefore, the ‘organization function facilitates the achievement of results.
According to Chester Barnard, “Organizing is a function by which the concern is able to define the role positions, the jobs related and the co-ordination between authority and responsibility. Hence, a manager always has to organize in order to get results.”
Why is organizing essential?
(1) Benefits of Specialisation: While organizing, every activity is subdivided into a host of sub-tasks. For performing these subtasks, competent people are appointed who eventually convert into experts by doing a specific job over and over. In this way, utmost work is accomplished in the least span of time and the organization is the ultimate gainer of such specialization.
(2) Clarity in Working Relationship: Organising makes a clear cut picture of the working relations among employees. It specifies a clear line of reporting. This in turn makes the communication clear, effective, and productive. Moreover, such clarity in a working relationship also helps in fixing accountability.
(3) Optimum Utilisation of Resources: Under the process of organizing the whole work is divided into a variety of miniature activities. There is a certain employee deputed for performing a different job. By doing so, there is no possibility of an activity being left out or unnecessary duplicating. Consequently, there is the best possible utilization of all the existing resources (physical, financial as well as human) in the organization.
(4) Adaptation to Change: The organizing process makes the organization capable of adapting to any change associated with the position of the employees. This becomes possible only because of the fact that there is a clear Scalar chain of authority for the manager’s right from the top to the bottom. Whenever a managerial position falls vacant, it is straight away filled up by promotion. Since every subordinate is well aware of the working of his senior, there is no difficulty for his taking up the new position.
(5) Effective Administration: It has normally been observed that there is always a condition of doubt about the authority of the managers among themselves. The process of organizing makes a clear mention of each and every activity of every manager and also of their extent of authority. One and all also know to whom they are accountable. Consequently, efficient administration sees the light of the day.
(6) Development of Personnel: Under the process of organizing, a delegation of authority is practiced. This is done not because of the restricted capacity of any individual, but also to realize new techniques of work. It provides opportunities for taking decisions for the subordinates. By taking advantage of this situation, they try to find out the latest techniques and implement them. Subsequently, it helps them to grow and develop and also in career and succession planning.
(7) Expansion and Growth: The process of organizing allows the employees the freedom to take decisions which helps them to grow. They are relentlessly ready to face new challenges. This situation can aid in the development of the enterprise. This helps in escalating the earning capacity of the enterprise which in turn helps its growth and development.
Steps in organizing
When done efficiently, organizing tends to follow the pattern and steps outlined below:
1. Identification of activities – All those activities which need to be performed in a concern shall have to be identified first. Prima facie, it is extremely important to prepare a list of tasks to be done. F or example, preparation of accounts, making sales, record keeping, quality control, inventory control, etc. All these activities have to be grouped and classified into units.
2. Departmentally organizing the activities – In this step, the manager tries to combine and group similar and related activities into units, divisions or departments. This organization of dividing the whole concern into independent units and departments is called departmentation.
3. Classifying the authority – Once the departments are made, the manager likes to classify the powers and their extent to the managers. This activity of giving a rank in order to the managerial positions is called hierarchy. The top management is into the formulation of policies, the middle-level management into departmental supervision, and lower-level management into the supervision of foremen. The clarification of authority help in bringing efficiency in the running of a concern. This helps in achieving efficiency in the running of a concern. This helps in avoiding wastage of time, money, effort, in avoidance of duplication or overlapping of efforts and this helps in bringing smoothness in a concern’s working.
4. Co-ordination between authority and responsibility – Relationships are established among various groups to enable smooth interaction toward the achievement of the organizational goal. Each individual is made aware of his authority and he/she knows whom they have to take orders from and to whom they are accountable and to whom they have to report. A clear organizational structure is drawn and all the employees are made aware of it.