A sound organizing facilitates administration, promotes specialization, encourages growth, and stimulates creativity. It can contribute to the success of an organization. Hence, the significance of organizing may be discussed as below:
1)Efficient administration: Organizing is an important and the only tool to achieve enterprise goals. A sound organizing helps the management in many ways. It defines various activities and their authority relations in the organizational structure. It can avoid confusion and delays as well as duplication of work and overlapping of effort. It is the mechanism by which management directs, controls, and coordinates the various activities in the enterprise.
2)Optimum use of human resources: Sound organizing ensures that every individual is placed on the job for which he is best suited. Such matching of jobs and individuals helps in better use of human talent. It also provides the benefits of specialization, which results in economy of operations and reduction in cost.
3)Growth and diversification: A sound organizing contributes to the growth and diversification of the enterprise through decentralization and divisionalization. Through organization management can multiply its strength and undertake more actives. That is why many small firms have grown and become big.
4) Optimum use of new technology: A sound organizing is flexible. It has the capacity of absorbing changes in the environment. Hence, it provides for optimum use of technological improvements.
5)Coordination and communication: Organizing is an important means of creating coordination and communication among different departments of the enterprise. Different jobs and positions are welded together by structural relationship. It also specifies are welded together by structural relationship. It also specifies the channels of communication among different members of the enterprise.
6)Training and development: A sound organizing provides a good scope for the development of managerial ability through proper delegation of authority and decentralization. It provides responsibility, sufficient freedom to the supervision and creative thinking in different levels.
7)Productivity and job satisfaction: A sound organizing is based on democratic and participative management. Hence, the entire organizational environment is favorable for productivity and job satisfaction.
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