You are on page 1of 6

Organizing Function of Management

Organizing means determining who does what and who

reports to whom. There are countless examples in history of well-
organized enterprises successfully competing against, and in some
cases defeating, much stronger but less-organized frms. A well-
organized frm generally has motivated managers and employees
who are committed to seeing the organization succeed. esources
are allocated more e!ectively and used more e!iciently in a well-
organized frm than in a disorganized frm.
3 ) Organizing is the function of management which
follows planning. "t is a function in
which the synchronization and combination of human, physical and
fnancial resources
ta#es place. All the three resources are important to get results.
Therefore, organizational
function helps in achievement of results which in fact is important
for the functioning of
a concern. According to Chester Barnard, $Organizing is a function
by which the
concern is able to defne the role positions, the %obs related and the
co- ordination
between authority and responsibility. &ence, a manager always has
to organize in order
to get results.
4 ) A manager performs organizing function with the help
of following steps'-
1. Identifcation of activitie ! All the activities which have to be
performed in a
concern have to be identifed frst. (or example, preparation of
accounts, ma#ing
sales, record #eeping, )uality control, inventory control, etc. All
these activities have
to be grouped and classifed into units.
". #e$artmenta%%& organizing t'e activitie ! "n this step, the
manager tries to
combine and group similar and related activities into units or
departments. This
organization of dividing the whole concern into independent units
and departments is
called departmentalization.
3. (%aif&ing t'e aut'orit& ! Once the departments are made,
the manager li#es to
classify the powers and its extent to the managers. This activity of
giving a ran# in
order to the managerial positions is called hierarchy. The top
management is into
formulation of policies, the middle level management into
departmental supervision
and lower level management into supervision of foremen. The
clarifcation of
authority helps in bringing e!iciency in the running of a concern.
This helps in
achieving e!iciency in the running of a concern. This helps in
avoiding wastage of
time, money, e!ort, in avoidance of duplication or overlapping of
e!orts and this
helps in bringing smoothness in a concern*s wor#ing.
4. (o!ordination )et*een aut'orit& and re$oni)i%it& !
elationships are
established among various groups to enable smooth interaction
toward the
achievement of the organizational goal. +ach individual is made
aware of his
authority and he,she #nows whom they have to ta#e 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.
+ )
The process of organizing consists of the following steps:
1. #etermining t'e activitie to )e $erformed to ac'ieve
t'e o),ective of t'e organization.
". Identifcation of ma,or function to *'ic' t'ee
activitie re%ate.
3. -rou$ing and u)!dividing t'e activitie *it'in eac'
function on t'e )ai of imi%arit& or re%atedne.
4. .ta)%i'ing re%ation'i$ among individua% and
/ ) 0 e$oni)i%it&1
esponsibility is t'e o)%igation of a subordinate to perform the
assigned duties. -hen a subordinate accepts duties, he has to
perform those duties in the manner desired by the superior. .uties
are assigned to subordinates when a manager has to share the
wor# with them.
2ut'orit& 1
3'en a $eron i given certain dutie to $erform1 'e mut
)e given necear& aut'orit& a%o. Otherwise, he will not be
able to do the wor#.
2ccounta)i%it&4 (responsible for what they do and must be able to
give a satisfactory reason for it)
Accountability means answerability. That is, each person has to
report to his superior how the wor# has been done and how
authority has been used.
5 ) (%aifcation of Organization
Organizations are basically classifed on the basis of relationships.
There are two types of
organizations formed on the basis of relationships in an
6 ) /. Forma% Organization ! This is one which refers to a
structure of well defned
%obs each bearing a measure of authority and responsibility. "t is a
determination by which people accomplish goals by adhering to
the norms laid
down by the structure. This #ind of organization is an arbitrary set
up in which
each person is responsible for his performance. (ormal
organization has a formal
set up to achieve pre- determined goals.
7 ) ". Informa% Organization ! "t refers to a networ# of
personal and social
relationships which spontaneously originates within the formal set
up. "nformal
organizations develop relationships which are built on li#es,
disli#es, feelings and
emotions. Therefore, the networ# of social groups based on
friendships can be
called as informal organizations. There is no conscious e!ort made
to have
informal organization. "t emerges from the formal organization and
it is not based
on any rules and regulations as in case of formal organization.
89: ;:<=: >?@>:9A
Im$ortance of Organizing Function
/. B$ecia%ization ! Organizational structure is a networ# of
relationships in which
the wor# is divided into units and departments. This division of
wor# is helping in
bringing specialization in various activities of concern.
0. 3e%% defned ,o) ! Organizational structure helps in putting
right men on right
%ob which can be done by selecting people for various departments
according to
their )ualifcations, s#ill and experience. This is helping in defning
the %obs
properly which clarifes the role of every person.
1. (%arife aut'orit& ! Organizational structure helps in
clarifying the role
positions to every manager 2status )uo3. This can be done by
clarifying the
powers to every manager and the way he has to exercise those
powers should be
clarifed so that misuse of powers does not ta#e place. -ell defned
%obs and
responsibilities attached helps in bringing e!iciency into managers
wor#ing. This
helps in increasing productivity.
4. (o!ordination ! Organization is a means of creating co-
ordination among
di!erent departments of the enterprise. "t creates clear cut
relationships among
positions and ensures mutual co- operation among individuals.
&armony of wor#
is brought by higher level managers exercising their authority over
activities of lower level manager.
Authority responsibility relationships can be fruitful only when
there is a formal
relationship between the two. (or smooth running of an
organization, the coordination
between authority- responsibilities is very important. There should
co- ordination between di!erent relationships. 5larity should be
made for having
an ultimate responsibility attached to every authority. There is a
$Authority without responsibility leads to ine!ective behavior and
without authority ma#es person ine!ective.6 Therefore, co-
ordination of
authority- responsibility is very important.
7. .Cective adminitration ! The organization structure is
helpful in defning the
%obs positions. The roles to be performed by di!erent managers are
8pecialization is achieved through division of wor#. This all leads
to e!icient and
e!ective administration.
9. -ro*t' and diverifcation ! A company*s growth is totally
dependant on how
e!iciently and smoothly a concern wor#s. +!iciency can be
brought about by
clarifying the role positions to the managers, co-ordination
between authority and
responsibility and concentrating on specialization. "n addition to
this, a company
can diversify if its potential grows. This is possible only when the
structure is well- defned. This is possible through a set of formal
:. Bene of ecurit& ! Organizational structure clarifes the %ob
positions. The roles
assigned to every manager are clear. 5o- ordination is possible.
Therefore, clarity
of powers helps automatically in increasing mental satisfaction and
thereby a
sense of security in a concern. This is very important for %ob-
;. Bco$e for ne* c'ange ! -here the roles and activities to be
performed are clear
and every person gets independence in his wor#ing, this provides
enough space to
a manager to develop his talents and <ourish his #nowledge. A
manager gets
ready for ta#ing independent decisions which can be a road or path
to adoption of
new techni)ues of production. This scope for bringing new
changes into the
running of an enterprise is possible only through a set of
organizational structure.
Organizing is the function of management that involves developing
an organizational structure and allocating human resources to
ensure the accomplishment of ob%ectives. The structure of the
organization is the framewor# within which e!ort is coordinated.
The structure is usually represented by an organization chart,
which provides a graphic representation of the chain of command
within an organization. .ecisions made about the structure of an
organization are generally referred to as organizational design