According to Chester Barnard, “Organizing is a function by which the concern is able to define the role positions, the jobs related and the co-ordination between authority and responsibility. Organizing facilitates development of the organizational structure which becomes a tool for the management to achieve plans. Management Study Guide is a complete tutorial for management students, where students can learn the basics as well as advanced concepts related to management and its related subjects. These two are apparent benefits. This further helps in fixation of responsibility and also specifies the dimensions of authority which an individual can exercise. Prohibited Content 3. Organising provides fuller and efficient use of all human, physical and financial resources. It is a function in which the synchronization and combination of human, physical and financial resources takes place. ADVERTISEMENTS: The importance of organising becomes clear with the help of the following points: (1) Benefits of Specialisation: ADVERTISEMENTS: Under organising all the activities are subdivided into various works or jobs. Importance of Organizing in Business Management Performance of the organizing function can pave the way for a smooth transition of the enterprise in accordance with the dynamic business environment. The significance of the organizing function mainly arises from the fact that it helps in the survival and growth of an enterprise and equips it to meet various challenges. It is a function in which the synchronization and combination of human, physical and financial resources takes place. It is a function in which the synchronization and combination of human, physical and financial resources takes place. Hence, the significance of organizing may be discussed as below: QUANTITATIVE TECHNIQUES FOR DECISION MAKING, TECHNIQUES FOR IMPROVING GROUP DECISION MAKING, ADVANTAGES AND DIS-ADVANTAGES OF GOOD DECISION MAKING, METHODS OR TECHNIQUES FOR CRISIS HANDLING, CONCEPT, TYPES AND PROBLEM SOLVING STRATEGIES. A good organisational structure flexible enough to tackle such tides yet rigid enough to hold firm to hold steady to its objectives becomes the kingpin during such times. ManagementStudyHQ . Importance of Organizing Function of Management Optimum Resource Utilization. Businesses run on defined relationships were certain people do things which other people shouldn’t and don’t do. According to the internal and external environment, the organization of business management varies, but the significance of this process stays the same. It is built on blood and sweat and brawn and brain. more job positions, departments, new product lines and also new geographical territories etc. Performance of the organizing function can pave the way for a smooth transition of the enterprise in accordance with the dynamic business environment. The creation of this single unit from multiple units is the result of organizing. This concept is central to the other principles of organizing. Uploader Agreement. Before uploading and sharing your knowledge on this site, please read the following pages: 1. Proper allocation of jobs helps in avoiding overlapping of work and ensures optimum use of resources without any wastage. How Can Communication Increase the Efficiency of Management? This helps to avoid confusion and duplication. Please login to your, Environmental Protection Policy Of India : An Introduction.........(part - I). The working and the objectives of all the departments should culminate into the achieving the objective of the business. All rights reserved. The more pertinent ones are : Specialization either in the form of function or divisions/regions is seen throughout all business entities. Subscribe to our newsletter to receive new updates from us in your mailbox. Organizing: Importance As A Function Of Management The word organizing is derived from the word 'organism', which means that all sub-units of a main unit have a definite relationship with the main unit. Modern day function of organizing involves the process of creating functional structures within the business whereby the business is divided on the basis of function and is organised in that fashion. In order to ensure smooth functioning of the enterprise, organising suitably modifies the organisational structure and various inter-relationships existing in the enterprise. The principle applies here too where you work and business exploit this quite well these days. Effective delegation allows managers to assign jobs of routine nature to their subordinates. Clarifies authority - Organizational structure helps in clarifying the role positions to every manager … Formal Organization vs Informal Organization: A Comparative View. Huge Collection of Essays, Research Papers and Articles on Business Management shared by visitors and users like you. Optimum Utilization of Resources 4. It can contribute to the success of an organization. That is to say, a factory worker should not be getting orders from all managers from sales to marketing, but should only be getting commands from a production manager or someone in production directly above him. Delegation Of Authority Is Based Upon Division Of Labour In Organizational Management. When an organization plans its activities, it is able to have a … © copyright 2020 QS Study. Clarity in working relationships enables proper execution of work. Accountability and Responsibility through the entire structure facilitates the process of understanding what went wrong and were and thereby rectifying and reorganizing it. At this juncture let’s have a glance at its many benefits. (This is unless the CEO gives you an instruction). Organizing is the function of management which follows planning. Decentralization as the process of distributing powers across the structure ensures its healthiness and steadiness and Delegation by a superior to a subordinate eases the workload and get things done. Organising helps in establishing working relationship and clearly defines the lines of communication and also specifies who is to report to whom. The following points highlight the importance of organising in an organisation: Under organising, the whole work is systematically allocated and divided into different parts. for increasing sales and profit. Organising creates structure of an organisation. Thanks for sharing this valuable information to our vision. Ask any businessman and he would tell you that business is not a result of on the spot decisions and perfect awe striking ideas that come out of nowhere to take the newly emerged tycoon to success. this helps the top management to know about the performance of employees. Assumption and limitations The work of one department has to perfectly align and complement the work of the other. Organizing can thus be simply understood as a function involving the process of bringing together resources of diverse nature and putting them together in such a manner that the system works. Optimum utilization of resources: Organizing leads to the proper usage of all material, financial and human resources. 10K Thus, organizing is a process by which the manager brings order out of chaos, removes conflict among people over work or responsibility sharing and creates an environment suitable for teamwork.

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