Significance or importance of organizing

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.

Principles’ of organizing

Organizing is one of the major functions of management. The success or failure of the organization depends upon sound and efficient organizational structure. Hence, there is a need to follow certain principles of organizing to formulate and develop sound and efficient organization. These principles are as follows:

Unity of objectives

The goals of the organization influence the organization structure. Hence, the goals and objectives must be clearly defined for the entire organization, for each department and even for each position in the organization structure. If there is contradiction among the various levels of objectives, then entire goals of the organization cannot be achieved.

Specialization

The total task in an organization should be divided in such a manner that every person is confined to a single job. This leads to specialization. An employee repeatedly performing a specific single job becomes an expert in that job. The work assigned should be according to his abilities and aptitude. Then he can work with greater economy and efficiency.

Span of control

Span of control represents a numerical limit of subordinates to be supervised or controlled by a manager. As there is a limit to the number of subordinates that can be supervised effectively. However, the exact number of subordinates will vary depending upon the nature of job, competence of the manager, quality of subordinates.

Exception

Each manager should make all decisions within the limitation of delegated authority. However, only exceptionally complex matters should be referred to the higher levels for their decision. This will enable the executives at higher levels to devote time to more important and crucial issue.

Scalar principle

This principle sometimes known as the “chain of command”. It is unbroken line of authority from the top level to the bottom of an organization. It makes clear about who will work under whom. The chain of command should be short and clear which makes decision making and communication more effective.

Unity of command

The principle of command suggests that an employee should have one and only one boss. Each subordinate should have only one supervisor whose command he has to obey. Directions from several superiors may result in confusion, chaos, conflict and indiscipline.

Delegation of authority

Proper authority should be delegated at all levels of management. The authority delegated should be equal to responsibility so as to enable each manager to accomplish the task assigned to him

Organizing and staffing function

The organizing means different things to different people. It is used widely to mean a structure of relationship, a process, a group of people, and a function of management, organizing is the basic function of management. By organizing, a manager achieve organizational goals. Organization as a process integrates and coordinates the efforts of human, financial, technological and other resources. As a group of people organizing contributes their efforts towards attainment of common goals.

Once a manager has set goals and developed a workable plan, the next management function is to organize people and other resources necessary to carry out the plan. The organizing function creates a structure of task and authority relationships. It also involves assigning activities, dividing work into specific jobs and tasks, and specifying who has the authority to accomplish certain task. Another major aspect of organizing is grouping activities into departments or some other logical subdivision. In essence organizing is the process of creating organizational structure that enables the organization to function effectively as a cohesive whole.

Effective organizing can provide a number of benefits. First, the process of organizing helps to clarify the specialized tasks and performance expectations for each person. Second, it produces appropriate authority structure with accountability to support planning and control throughout the organization. Thirds, it creates channels of communication that support decision-making and control. Fourth, the organizing process establishes a logical flow of work group. Fifth, it develops a division of labor that avoids the misuse of resources, conflict, and duplication of effort. Sixth, it creates coordinating, mechanisms in diversified activities. Finally, organizing produces focused work efforts that are logically and efficiently related to a common goal.