Organizing || Organizational Structure And Design || Bcis Notes


Organizing is the process of combining together all the organizational resources and establishing productive relations among them.

According to Theo Haiman, “Organizing is the process of defining and grouping the activities of the enterprise and establishing the authority relationship among them”.

According to Stoner, Freeman, and Gilbert, “Organizing is the process of arranging and allocating work, authority, and resources among an organization’s members so that they can achieve the organization’s goals”.

Nature of Organizing
The major feature associated with the nature of organizing is as follows:
1. Identification of activities
Every enterprise establishes for the achievement of definite objectives. For the attainment of determined objectives, it is essential to identify various types of activities need to perform for the achievement of objectives. When a number of objectives planned for the enterprise are more, the number of activities of the enterprise will be more.

2. Grouping of activities
All the identified activities of an enterprise must be classified on the basis of common nature and should be put in one group or subgroup. This part of organizing involves creating departments and sections for specific work such as production, marketing, finance, human resources, etc. This is helpful to maintain co-ordinate and exercise control over activities.

3. Accumulation of resources
Resources are essential for the smooth functioning of an enterprise. Accumulation of required resources is one of the components of organizing. These resources involve manpower, materials, machines, money, technology, etc

4. Defining a hierarchy of position
Organizing involves a formal structure in which a hierarchy of authority of each member is clearly defined. The hierarchy of authority is formed on the basis of the degree of responsibility and accountability. It clarifies the role of each individual from top to the subordinate level.

5. Assignment of jobs
The total works of an enterprise are divided into small units on the basis of their common nature. Each work is assigned to different individuals on the basis of their skills, ability, and experience. The assignment of the right jobs to the right persons develops the practice of specialization and efficiency among them.

6. Establishing authority and responsibility relationship
For the systematic functioning of the managerial function, it is essential to establish the authority and responsibility relationship of all the employees from top-level to subordinate levels. Similarly, on the basis of their responsibility proper authority should be given. The parity between authority and responsibility encourages employees to do the assigned job

7. Evaluation of performance
Organizing also involves evaluation of actual performance achieved within the stipulated time. After some time of implementation of the plan, it is essential to evaluate the actual work completed.

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