Courses
Courses for Kids
Free study material
Offline Centres
More
Store Icon
Store

Organizing: Importance and Key Steps

Reviewed by:
ffImage
hightlight icon
highlight icon
highlight icon
share icon
copy icon
SearchIcon

Organizing in Every Aspect of Life

Organizing is the establishment of an effective authority relationship that is created among the selected group of persons who are assigned in doing a specified work. Organizing is the process of dividing the group into sections and departments. These were the definitions of organization in the genre of management. While the scope of the organization is present in every hemisphere of life. Starting from organizing one’s life to organizing a house party, the word ‘organizing’ is common in every sphere. 

In this section, we will expand our knowledge in this field of the organization. Our zone is restricted to talk about the organization in management only. How does the corporate structure work with organizing being the essence of it? We will discuss all these in good detail.  

Organizing Meaning

Organizing is a process of structuring the essential relationships among the people, tasks, and other activities. This is done in a way that the organization’s resources are integrated and are coordinated to accomplish the objectives efficiently and effectively.

The Organization is defined as a –

  • Structure

  • Process

As in a Structure:

Organization structures the corporate in a vertical and horizontal manner. This is the set of relationships among the people who perform various tasks and duties. The task conducted in the organization is divided into units, people in every unit are assigned a predetermined task and this defines their relationship in the organization while they maximize the welfare of the organization and work on their own personal goals. 

The organization structure chalks out the division of work and shows the linkage of different activities and functions. Organizing also displays the hierarchy relationship between the levels of authority structure. The organization structure emphasizes the positions of the people working in the corporate. This is done by defining the relation between jobs at various levels and people working in this job. 

As in a Process:

The process defines the way the structure is designed. The structure is a static concept that establishes relationships all around the organization. This first design the concept of the organization and then establishes the relationship.  The process is a dynamic concept that defines the structure where needed. 

The structure defines how work is divided into various positions, groups, and departments, while the process defines the strata how the structure is designed. 

Process of Organizing 

The process of organizing involves the following steps:

  1. Determining the Objectives:

The organization is built up for a particular objective or goal. Tasks are determined to achieve this goal. If the organization is set up for exporting goods and services then the type of goods and services determines the nature of the products to be exported, the sources of procurement. Hence, determining the objective is the first step towards the process of organizing. 

  1. Division of Activities:

The whole task cannot be managed by a single person; hence, division of labor comes in this next step of processing. The work is divided and assigned in a particular way. Division of work leads to specialization, and the benefits of dividing are as follows:

  • Greater Output.

  • Efficiency.

  • Trains the less-skilled workers. 

  1. Grouping the Activities:

After assigning the works, people performing equal and similar functions are grouped under one head. Departments like sales, finance, accounting, etc. are filled with people who are shrewd in performing similar activities. Departmentalization is done in this step. People are grouped according to their expertise. 

  1. Authority and Responsibility:

A department is managed by this principle of ‘Authority and Responsibility’. Departmental heads are authorized to supervise the department and the efficiency of that particular department becomes the responsibility of that head. This is ensured that the head matches the quality expectancy of the department. Again, the head has the authority to get the work done by his departmental members. Thus, the responsibility and authority of the delegate to members of the department. 

  1. Coordination of Activities:

Conflicts exist in the departments, but the void that hurdles the objective is to coordinate the activities to achieve the organizational goals. Conflicts can be resolved through co-ordination as all the departments share all the resources optimally. 

  1. Re-Organizing:

With the constant appraisal of the organizing process, the changes in structure can be made to the changes in the external factors as well. 

FAQs on Organizing: Importance and Key Steps

1. What is meant by organizing in management?

Organizing is a core function of management that involves arranging and structuring work to accomplish organisational goals. It is the process of defining roles, grouping tasks, assigning authority, and allocating resources so that everyone can work together effectively.

2. Why is the organizing function so important for a business?

Organizing is crucial because it provides a clear framework for operations. Its importance lies in:

  • Benefits of specialisation: It ensures that the right person is assigned the right job, leading to higher efficiency.
  • Clarity in working relationships: It defines who reports to whom, preventing confusion and conflict.
  • Optimum utilisation of resources: It helps in avoiding duplication of work and wastage of resources.
  • Adaptation to change: A well-designed organisational structure is flexible and can adapt to changes in the business environment.

3. What are the main steps in the process of organizing?

The organizing process typically follows four key steps: First is the Identification and Division of Work, where the total work is divided into specific jobs. Second is Departmentalisation, where similar jobs are grouped together. Third is the Assignment of Duties, where roles are allocated to individuals. Finally, Establishing Reporting Relationships creates a clear hierarchy of who is accountable to whom.

4. What is the main difference between a functional and a divisional organisational structure?

The main difference lies in how activities are grouped. A functional structure groups jobs based on common functions, such as marketing, finance, and production. In contrast, a divisional structure groups jobs based on separate product lines, services, or geographic areas. Functional structures promote specialisation, while divisional structures focus on results for specific units.

5. How does delegation differ from decentralisation?

While both involve sharing authority, their scope is different. Delegation is the process where a manager assigns authority and responsibility to a subordinate for a specific task. It is a necessary process in any organisation. Decentralisation, on the other hand, is a wider concept where top management systematically distributes authority to middle and lower levels. It is an optional policy decision that reflects a philosophy of management.

6. Why do informal organisations often form within a formal structure?

An informal organisation emerges naturally from the personal and social relationships among employees, rather than being officially designed by management. It exists within the formal structure because people interact, form friendships, and develop their own social networks and communication channels (like the 'grapevine') to satisfy their social needs, which the formal structure does not always address.

7. What are the three essential elements of delegation?

The three essential elements of delegation are:

  • Authority: The power or right to give commands, take action, and make decisions.
  • Responsibility: The obligation of a subordinate to properly perform the assigned duty.
  • Accountability: Being answerable for the final outcome of the assigned task. Accountability cannot be delegated.

8. What is 'span of management' and how does it affect an organisation's shape?

The span of management, also known as the span of control, refers to the number of subordinates a manager can effectively supervise. A narrow span results in a 'tall' organisational structure with many management levels, while a wide span creates a 'flat' structure with fewer levels. The ideal span depends on factors like the complexity of the work and the capability of the manager and employees.