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Importance of Organizing

Organizing is important because of the following reasons:

1.    Facilitates administration :

If all the activates are performed by the top managers, they will be overburdened to concentrate on strategic matters. It is essential that part of ht workload is shared by middle and lower level managers. Top executives will be relieved of managing routine affairs and can concentrate on company’s effective will be relieved of managing routine affairs and can concentrate on company’s effective administration. The basic elements of organizing (division of work, grouping of activities, distribution of authority and co-ordination) provide for better administration by the top management.

2.    Growth and diversification :

A well- organized institution is adaptive to change and responsive to growth and diversification. It can multiply its operations.

3.    Creates synergies:

Division of work provides the benefits of synergies. Synergy means the total task achieved by a group of people is more than the sum total of their individual achievements.

4.    Establishes accountability:

Unless each person knows his boss and subordinates, the organizations cannot function efficiently. Establishing limitations in the area of operations defines each person’s accountability to his immediate boss which gears the organization towards its overall goals.

5.    Optimum use of technology :

It is the age of technological developments. Therefore, organizations not having well-developed technology will not be able to compete in the market. Well- organized structures enable the organizations to optimally use and update their technology to remain competitive in the market.

6. Facilitates communication:

Communication is the essence of organization. Efficiency of the organization depends upon how well the organizational members communicate with each other. A well-designed system of communication (vertical and horizontal) is facilitated through effective organizing efforts of top executive.

7. Facilitates creativity:

Creativity means creating something new. It is developing new ways o doing existing things. A sound organization enables the top management to improve the ways of doing things by delegating routine affairs to people down the scalar chain. Creativity creates a sense of achievement in the managers in a well- organized structure that provides moral boost for further creative thinking.

8. Improves inter personal relationships:

A sound organization structure ensures that the workload is divided into well defined jobs and assigned to each individual according to his abilities and skills.  Placing the right person at the right job ensures job satisfaction and morale boost up of employees. This improves inter-personal relationships of people working in the organization.

9. Facilitates coordination:

Well defined objectives and plans can fail if organizational activities are  not coordinated in  a unified direction. A well designed organization structure brings order and system in its activities. It coordinates the work of people at different levels in different departments. People work along pre-defined dimensions and harmonies individual goals with organizational goals.

10. Facilitates teamwork:

Though all individuals are responsible for specific tasks assigned to them, they work collectively as a team and optimize the use of scarce organizational resources to achieve the organizational goals. Organization, thus facilities teamwork.

11. Facilitates control:

Organization provides sound direction to people’s activities and ensures that they work according to plans. This facilitates control and achievement of organizational goals.

12. Increase in output:

Sound organization divides activities into various departments (production, marketing etc.). These departments specialize in their tasks and increase the organizational output.

13. Optimum allocation of resources:

Ordaining promotes optimum allocation of resources as they are allocated over different areas (production marketing, personas etc.) in order of their priority. People are assigned hobs that they are best suited for. All work activities are assigned to different people. There is no duplication of work.

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