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Organizing or organization is the second step of the management function. It follows planning. Before we head into the complexities of it, let us discuss that term in brief to get a clear idea. Once the analysts and planners have come up with a suitable business plan, the next stage is to organize it. The only way to organize the plan is to execute it and establish an organization. An organization is an organised company. And organization depends wholly on the directions of the plan. Hence, it is safe to say that ‘organizing’ and ‘organization’ are conceptually the same.

Introduction to Organizing

A sound organization is a pre-requisite for the success of that business. It is also the foundation upon which you can construct the entire management structure. Organizing involves the identifying of various activities that can help in realising the corporate goals. It also includes the identification of those activities which help in the execution of the business plan. In simple words, organizing refers to all those collective actions that focus on creating an organization. This organization is crucial to be able to achieve the ultimate objectives.

However, this management function provides a framework of management for purposive and cooperative action by many people. This will lead to the successful implementation of plans. Thus, it is the basic process of combining human, financial and other resources for the benefit of the enterprise.

According to E. H. Schein, “An organization is a rational coordination of the activities or roles of a number of people for the achievement of some common explicit purpose or goal, through division of labour and function, and through a hierarchy of authority and responsibility.”

The Elements

Elements of organizing refer to the people who concern themselves with the organization. Thus, these elements are crucial and necessary not only for the existence of the organization but also for its success. Therefore, the important elements are as follows:

  • Workers and employees
  • Shareholders and partners
  • Customers
  • Public and Government

The Steps in Organizing

  1. Clear definition of objectives. The first step in this process is to decide and prepare on its objectives in very clear terms. This will, therefore, help in determining the stability and basic features of the organization.
  2. Identification of activities. The entire work is broken down into smaller units which are further broken down into component activities that all the employees should perform.
  3. Grouping of activities. The third step is to group all the activities. In this stage, the closely-related and similar activities form one common group or division. These activities have further categories that form sections. However, the grouping of activities lies on the basis of production, finance and personnel etc.
  4. Allotment of/assigning activities. The next step is to assign these group activities to various management positions. However, these positions could be the production manager or the finance manager. It could also be the marketing manager or any other manager of the organization. In addition, the operating level of management is responsible for the process of distributing the activities.
  5. The delegation of authority. In order to execute a task, employees require the authority to go ahead. Independence and power to make decisions are also crucial. Therefore, the lack of delegation of authority will lead to a standstill business operation.
  6. Establishing structural relationship or coordination of various enterprise activities. Finally, it is important to define the relationship among the people in the enterprise. It is also important to establish coordination among the people working in different departments. And it is also important to establish coordination among the people at different levels of the enterprise. Moreover, this coordination will help them work with greater harmony in the prevailing environment.

Importance of a Sound Process

A sound organization process refers to the most appropriate organization design. Discussed below are some of the most important reasons to have a sound organizing process.

  • The sound organization promotes growth and helps the process of development. Developments such as expansion and diversification should not consume a lot of effort, time and monetary resources.
  • The management will become all the more effective and efficient.
  • There will be better cooperation and coordination among all the levels of the organization.
  • The sound organization of business activities also tends to avoid duplication of activities.
  • It also helps in inducing independent and creative thinking.
  • A sound organization process relieves executives from the routine work. This is possible through the proper division of labour. Consistent delegation and a clear job definition are also contributing factors to this.
  • It ensures optimum utilization of resources (human, monetary and physical) in the best way possible.
  • It also enables the management to respond accurately to any changes in the day-to-day operations.

Principles of Organizing

A principle is a rule that you can apply to a problem or problems while organizing. Discussed below are some of the more essential principles of organization.

  1. The principle of an objective. Devising a common goal for the business as a whole and ensuring that organization focuses on achieving the goal.
  2. The principle of specialization. The organization process or process of organizing should be set up in a way that every employee has to work with their specialised skills and knowledge.
  3. Principle of coordination. There should be an agency which coordinates activities of various departments. However, the absence of this principle could lead to inconsistency and inefficiency.
  4. Principle of definition. Definition of the scope of authority and responsibility should be clear and unambiguous. Thus, every person should identify and know his work, responsibilities and authorities.
  5. Principle of span of control. Span of control answers “how many subordinates can a supervisor effectively supervise?”. Therefore, the number of subordinates should be such that the supervisor should be able to control all their works efficiently.
  6. Principle of balance. The assignment of work should be such that every employee has only as much work as he can perform. If one person is over-working and the other is under-working, then the balance of the organization’s activities will suffer. Hence, the work should be assigned in a manner that all employees can give their best.
  7. Principle of uniformity. Assignment and allocation of work within the organization should be uniform.

Hence to conclude, let us briefly discuss the requisites of an efficient organizing/organization process.

  • Able organisers
  • Sound business policies and strategies
  • Proper supervision and effective control
  • Cooperation and coordination between the employees of different levels
  • Effective personnel organization

This was our article on planning. For more such articles, keep following us here!

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