Organizing

Organizing is the establishment of the framework within which activities are to be performed. The terms
organize and organization refer to the systematization of interdependent parts into One unit. Organizing
requires bringing the many functional units of an enterprise into a coordinated structure and assigning
authority and responsibility to individuals. Organizing efforts include motivating people to work together
for the good of the company.

Organization usually involves the establishment of functional divisions, departments, sections, or branches.
These units are created to permit specialization of labor. A manufacturing firm, for example, usually
consists of three fundamental units: manufacturing, marketing, and administration. Within these units,
departments are formed according to the nature, location, and amount of work, the degree of specialization,
and the number of employees.

Management assigns work to each organizational unit created. An effective division of work among
employees is vital in attaining company objectives. Also important are the relationships among managers
and between superiors and subordinates.

Control

Control is management's systematic effort to achieve objectives. Activities are continually monitored to
see that results stay within desired boundaries. Actual results of each activity are compared with plans, and
if significant differences are noted, remedial actions may be taken. Figure 1-1 illustrates the control
process, using top management as an example. Similar relationships exist at all management levels within
the organization.

The concept of control in business differs from that used in engineering, where controls are designed to
work continuously, to use physical measures as their information inputs, and to work largely independently
of human decision making. Thermostats and fuses are simple examples of engineering controls. In
contrast, the control process in business always includes a human decision maker. In addition, the
information on which control actions are based includes financial information, and the control activity is
periodic rather than continuous.

The concept of control in business also differs from that used in military and police work, in which the
need for coercive force is always possible, although undesirable, in achieving control. In business, control
is achieved through others” actions only with their cooperation.