Explain any five points of importance of organizing. - Organisation of Commerce and Management

Answer in Brief

Explain any five points of importance of organizing.

Describe the importance of organizing

Explain the importance of organizing.



Importance of Organizing:
Organizing is concerned with grouping and assigning the organizational activities among different departments and workforce. The importance of organizing can be stated as follows:

  1. Facilitates Administration as well as Operation:
    The organizing process leads to identify and to group the activities. Grouping and assigning the activities is the task of administration whereas processing according to it is operational activity.
    Thus, organizing facilitates administration as well as the operation of the organization. Due to the proper grouping of the tasks and the employees, there is an *increase in production and reduction in wastage. Duplication of work is restricted and effective delegation becomes possible.
  2. Brings Specialization:
    Organizational structure is a network of relationships in which the work is divided into units and departments. This division of work helps in bringing specialization in various activities of the organization. Specialization in activities leads to an increase in organizational efficiency.
  3. Defines Jobs Properly:
    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.
  4. Clarifies Authority and Responsibility:
    Organizational structure defines the role of every manager. This can be done by delegating the authority to every manager and clarifying the way he has to exercise those powers. So that misuse of powers does not take place. Well defined jobs and responsibilities help in bringing efficiency into managers working. This helps in increasing productivity.
  5. Establishes Coordination:
    This function helps in establishing co-ordination among different departments of the organization.
    It creates clear cut relationships among positions and ensures mutual co-operation among individuals. Coordination or synchronization between all departments and different levels of managers is important for the smooth functioning of organizational activities.
  6. Helps for Effective Administration:
    This function determines different positions, departments, activities, and roles that are clearly structured. The utmost care is taken while placing the right person in the right job with the right authorities and responsibilities. It is achieved through the division of work and delegation of authorities. This all leads to efficient and effective administration.
  7. Helpful for Growth and Diversification:
    The growth of every organization depends on its smooth and efficient functioning. Clearly defined roles and responsibilities, coordination among all levels of management personnel, and the use of appropriate control techniques bring efficiency at the workplace, and organization grows well. This is possible only when the organization structure is well- defined.
  8. Creates Sense of Security:
    Organizational structure clarifies the job positions. It clearly states the duties and responsibilities of everyone. Everyone can work accordingly. The clarity in jobs and powers helps in increasing mental satisfaction and it creates a sense of security among the employees.
  9. Scope for Innovation: The organizing function clears the roles and activities to be performed. Employees can work by using their new ideas. This provides enough space for the manager to develop talent and flourish the knowledge. This scope for innovation into adopting new changes in methods of work is possible only through a set of organizational structures.
  10. Helps in Optimum Utilization of Resources:
    This function provides different jobs to different employees according to the job specification. Due to this, the specialization of work becomes possible. This right workforce utilizes other resources at its optimum level so that desired results are achieved within a defined period.
Concept: Functions of Management
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Chapter 2: Functions of Management - Exercise [Page 35]



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