About Lesson
Meaning of organizing
Organizing is defined as the process of groping activities and resources in a logical and appropriate fashion. In the study of management, organizing can therefore be regarded as a process of management concerned with change or growth of structure. It involves shaping the organization as it grows changes or shrinks.
Importance of organizing
According to Allen, sound organization can contribute to the success of an enterprise in the following ways;
- Facilitate administration. Sound organization contributes to effective management. It enables smooth operation of the enterprise by providing a framework within which management can perform the functions of planning, directing, controlling, etc.
- Makes growth and development and diversification possible. Growth and diversification become possible due to systematic division of work and consistent delegation of authority. An ideal organization would provide the flexibility and strength necessary for meeting new demands.
- Permits optimum use of resources. A sound organization helps in the optimum utilization of technological innovations and human resources. It avoids duplication of work and overlapping of efforts. Optimum use of technological improvements can be made through a sound structure manned with efficient employees.
- Encourages good human relations. In a sound organization, every individual is assigned the job for which he is best suited. The assignment of right jobs to right persons improves job satisfaction and interpersonal relations
- Stimulates initiative and creativity. A well-designed organization demands creative effort, encourages innovation and permits extensive delegation and decentralization. A sound organization also helps in the continuity of the firm by providing scope for the training and development of executives.
- Facilitates coordination. Organization is an important means of unifying and integrating individual efforts. It helps in putting balanced emphasis on different activities and in establishing effective relationships between the different departments or divisions of the enterprise. It also provides efficient channels for communication between different groups.