Importance of Organizing – Organizing | Principles of Management

Importance of Organizing

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 take place.

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 the right men on the 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 does not take place. Well defined jobs and responsibilities attached helps in bringing efficiency into managers working. This helps in increasing productivity.

4) Co-ordination

The organization is a means of creating co-ordination among different departments of the enterprise. It creates clear cut relationships among positions and ensures mutual co-operation among individuals. Harmony of work is brought by higher-level managers exercising their authority over interconnected activities of lower-level managers. Authority responsibility relationships can be fruitful only when there is a formal relationship between the two.

For the smooth running of an organization, the co-ordination between authority- responsibility is very important. There should be coordination between different relationships. Clarity should be made for having the ultimate responsibility attached to every authority. There is a saying, “Authority without responsibility leads to ineffective behavior and responsibility without authority makes person ineffective.” Therefore, the co-ordination of authority- responsibility is very important.

5) Effective administration

The organization structure is helpful in defining the job positions. The roles to be performed by different managers are clarified. Specialization is achieved through the division of work. This all leads to efficient and effective administration.=

6) Growth and diversification

A company’s growth is totally dependent 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 growth. 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 is 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 work, this provides enough space for 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 the 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 structures.

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