ORGANIZING members are involved in the performance of
departmental activities.
Organizing is the function of management
which follows planning. It is a function in which
the synchronization and combination of human,
physical and financial resources takes 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 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.
CHARACTERISTICS OF ORGANIZNG
1. Organising is a basic function and a sub-
process of management:
Organising constitutes an essential element in
the main process of management. Organising
is done in relation to all other functions of
management. The organising function follows
the function of planning and the other functions
of management follow organising. Thus,
organising is a sub-process of management.
2. Organising is a continuous process:
An organisation is a continuing entity. The
need for organising function is felt whenever
new activities or functions are introduced, or
existing functions and activities are re-shuffled
in the organisation.
3. Organising is a function of all managers:
The management function of organising is
practised by all the managers in the
organisation. The nature and importance of the
organising function, however, may vary with
different managers. Middle-level managers are
significantly involved in organising their
departmental activities as a large number of
4. Organising involves coordination:
In order to create a balance and structure in
the organisation, the activities of members
need to be well-coordinated.
5. Goal-oriented:
Organising is designed on the basis of
objectives and it aims at achieving them
smoothly.
6. Group effort:
Organising deals with group efforts that are
made for attaining common goals.
7. Establishes authority-responsibility
relationship:
Organising establishes authority- responsibility
relationship among the organisational
members.
PROCESS OF ORGANIZING
1. Identification of Activities
Determine the tasks that must be performed to
achieve the established objectives. Activities
and jobs are building blocks of any
organization. The activities to be performed
depends upon the objectives, nature and size
of the enterprise.
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. Groupings of Activities
In 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 departmentation.

3. Assignment of Duties
Once the departments are made, the manager
likes to classify the powers and its extent to the
managers. This activity of giving a rank 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
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
achievment 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.
IMPORTANCE OF ORGANIZING
1. Specialization
Organizational structure is a network of
relationships in which the work is divided
into units and departments. This division
of work is helping in bringing
specialization in various activities of
concern.
2. Well defined jobs
Organizational structure helps in putting
right men on right job which can be done
by selecting people for various
departments according to their
qualifications, skill and experience. This
is helping in defining the jobs properly
which clarifies the role of every person.
3. Clarifies authority
Organizational structure helps in
clarifying the role positions to every
manager (status quo). This can be done
by clarifying the powers to every
manager and the way he has to exercise
those powers should be clarified so that
misuse of powers do not take place.
Well defined jobs and responsibilities
attached helps in bringing efficiency into
managers working. This helps in
increasing productivity.
4. Co-ordination
Organization is a means of creating co-
ordination among different departments
of the enterprise. It creates clear cut
relationships among positions and
ensure mutual co-operation among
individuals. Harmony of work is brought
by higher level managers exercising
their authority over interconnected
activities of lower level manager.
Authority responsibility relationships can be
fruitful only when there is a formal relationship
between the two. For smooth running of an
organization, the co-ordination between
authority- responsibility is very important. There
should be co-ordination between different
relationships. Clarity should be made for
having an ultimate responsibility attached to
every authority. There is a saying, “Authority
without responsibility leads to ineffective
behaviour and responsibility without authority
makes person ineffective.” Therefore, co-
ordination of authority- responsibility is very
important.
5. Effective administration
The organization structure is helpful in
defining the jobs positions. The roles to be
performed by different managers are
clarified. Specialization is achieved through
division of work. This all leads to efficient
and effective administration.
6. Growth and diversification
A company’s growth is totally dependant on
how efficiently and smoothly a concern
works. Efficiency can be brought about by
clarifying the role positions to the
managers, co-ordination between authority
and responsibility and concentrating on
specialization. In addition to this, a
company can diversify if its potential grow.
This is possible only when the organization
structure is well- defined. This is possible
through a set of formal structure.
7. Sense of security
Organizational structure clarifies the job
positions. The roles assigned to every
manager is clear. Co-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 job-
satisfaction.
8. Scope for new changes
Where the roles and activities to be
performed are clear and every person gets
independence in his working, this provides
enough space to a manager to develop his
talents and flourish his knowledge. A
manager gets ready for taking independent
decisions which can be a road or path to
adoption of new techniques of production.
This scope for bringing new changes into
the running of an enterprise is possible only
through a set of organizational structure.
PRINCIPLES OF ORGANIZING
The success of any organization depends on
it’s principles. Basic principles should be
observed.
1. Unity of objective
if the aim is one to all employees and
manager. Objectives must be mutually
supportive and collectively contributing to
overall common objectives then success will
follow.
2. Simplicity
The observance of this principle requires that
the management must, as far as possible,
design a simple organizational structure. A
simple structure facilitates a better
understanding of superior- subordinate
relationships; and provides background for
better co-operation among people.
3. Flexibility
While designing the organizational structure,
the management must provide for in-built
devices within the structure itself; which would
facilitate changes in the organizational
structure to be effected as and when
environmental factors-internal and/or external-
so demand.
3. Division of work
proper departmentalization (each department
has it’s own function and job)
4. Functional definition
when duties of every one i The above stated
principle implies that the role (or job) of each
individual and of each department of the
enterprise must be suitably defined, in terms of
the-work content, the authority and facilities
required for job performance and the
relationship of the job with those of others, in
the enterprises defined.
5. Optimum Departmentation
According to the principle of optimum
departmentation, departments in an
organization must be so created and
maintained-as to facilitate the best attainment
of the common objectives of the enterprise.
6.Span of management
managers have long time to direct a number of
executives. implies that there is a limit to the
number of subordinates; whose work could be
effectively managed (controlled or supervised)
by a superior.
7. Adequate and Delegation
By the principle of adequate delegation, we
mean that each managerial position be
provided with adequate (or necessary or
requisite) authority-to enable the holder of the
position i.e. the manager to cope successfully
with the requirements of his job.
8.Scalar Chain Principle
the chain of command or line ofauthority must
be clarified, everysubordinate should know his
superior.
Scalar chain implies a chain of superiors-
ranging from the highest rank to the lowest
rank-in an organization. The scalar chain forms
the base of authority-responsibility
relationships among managers and
subordinates, in the organisation; thus
promoting mutual understanding among
superiors and subordinates at different levels of
the organization.
As a principle of organization, scalar chain
principle requires its incorporation into the
design of the organisation, for ensuring smooth
running of the enterprise life.
9.Unity of command and unity of direction
one superior and no confusion The above-
sated principle implies that an employee must
receive orders and instructions, only from one
superior, at a time. The observance of this
principle is desirable for reasons of removing
doubts and confusions from the mind of the
employees; and for facilitating exact fixation of
responsibility on individuals for the results
expected of them.
10.Authority and Responsibility
they should co-exist, found together.
The authority-level principle implies that
managers at particular levels in the
management hierarchy must decide only those
matters which fall within the purview of the
authority vested in their managerial positions.
TYPES OF ORGANIZING / STRUCTURE
Organizations can be structured in various
ways, with each structure determining the
manner in which the organization operates and
performs. An organization’s structure is
typically represented by an organization chart
(often called simply an “org chart”)—a diagram
showing the interrelationships of its positions.
This chart highlights the chain of command, or
the authority relationships among people
working at different levels. It also shows the
number of layers between the top and lowest
managerial levels. Organizational structure
also dictates the span of control or the number
of subordinates a supervisor has. An
organization with few layers has a wide span of
control, with each manager overseeing a large
number of subordinates; with a narrow span of
control, only a limited number of subordinates
reports to each manager. The structure of an
organization determines how the organization
will operate and perform.
Functional Structure
The functional structure is based on an
organization being divided up into smaller
groups with specific tasks or roles.
Each department has a manager or director
who answers to an executive a level up in the
hierarchy who may oversee multiple
departments.
An advantage of this structure is employees
are grouped by skill set and function, allowing
them to focus their collective energies on
executing their roles as a department.

For example, a company could have a group
working in information technology, another in
marketing and another in finance.
a director of marketing who supervises the
marketing department and answers to a vice
president who is in charge of the marketing,
finance and IT divisions.
Divisional Structure
Larger companies that operate across several
horizontal objectives sometimes use a
divisional organizational structure.
Larger companies that operate across several
horizontal objectives sometimes use a
divisional organizational structure.
This structure allows for much more autonomy
among groups within the organization. One
example of this is a company like General
Electric. GE has many different divisions
including aviation, transportation, currents,
digital and renewable energy, among others.
Under this structure, each division essentially
operates as its own company, controlling its
own resources and how much money it spends
on certain projects or aspects of the division.
Additionally, within this structure, divisions
could also be created geographically, with a
company having divisions in North America,
Europe, East Asia, etc.
This type of structure offers greater flexibility to
a large company with many divisions, allowing
each one to operate as its own company with
one or two people reporting to the parent
company’s chief executive officer or upper
management staff. Instead of having all
programs approved at the very top levels,
those questions can be answered at the
divisional level.
Matrix Structure
The matrix structure is a type of
organizational structure in which individuals are
grouped by two different operational
perspectives at the same time; this structure
has both advantages and disadvantages but is
generally best employed by companies large
enough to justify the increased complexity.
In a matrix structure, the company is organized
by both product and function. Product lines are
managed horizontally and functions are
managed vertically. This means that each
function—e.g., research, production, sales, and
finance—has separate internal divisions for
each product. In matrix organizations, the
company is grouped by the perspectives it
deems most appropriate. Common
organizational perspectives include function
and product, function and region, or region and
product. In an organization grouped by function
and product, for example, each product line will
have management that corresponds to each
function. If the organization has three functions
and three products, the matrix structure will
have nine (3×3) potential managerial
interactions. This example illustrates how
inherently complex matrix structures are
compared to other, more linear structures.
Proponents of matrix management argue that
this structure allows team members to share
information more readily across task
boundaries, which addresses the silo problem
of functional management. Matrix structures
also allow for specialization, which can
increase depth of knowledge and and enable
individuals to be assigned according to project
needs.s