Importance of organizing

(1) Benefits of specialization:

Organizing leads to systematic allocation of jobs amongst the work force which reduces the workload and enhances productivity. Repetitive performance of a particular task leads to specialization.

(2) Clarity in working relationships:

The establishment of working relationships clarifies lines of communication and specifies who is to report to whom, creating hierarchical order, fixation of responsibility and extent of authority of authority to be exercised by an individual.

(3) Optimum utilization of resources:

Organizing leads to:

  1. Proper usage of all material, financial and human resources;
  2. avoids duplication of works;
  3. prevents confusion and minimize the wastage of resources and efforts.

(4) Adaptation to change:

Organizing allows accommodating changes in business environment, to modify organization structure and to revise the inter-relationships amongst managerial levels for smooth transition.

(5) Effective administration:

Organizing provides clear description of jobs and related duties which helps to avoid confusion and duplication. Clarity in working relationships enables proper execution of work and brings effectiveness in administration.

(6) Development of personnel:

Organizing stimulates creativity amongst the managers by effective delegation. Reduction in workload allows the managers to develop new methods and ways of performing tasks. It gives them time to explore areas for growth and the innovation.

 (7) Expansion and growth:

Organizing helps in the growth and diversification of an enterprise by enabling it to deviate from existing norms and taking up new challenges.

Thus, organizing is a process by which the manager brings order out of chaos, removes conflicts among people over work and creates an environment suitable for teamwork.

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