Sunday, August 9, 2009

Importance of organizing

Importance of organizing

  1. Benefits of specialization: In organizing, each work is divided into smaller jobs and one individual is assigned only one job according to his qualification. Such division of work leads to specialization.
  2. Clarity in working relationships: Organising function clearly defines the authority or power enjoyed by every individual. Everyone knows very clearly to whom he can give orders and from whom he has to receive orders. This also helps in the creation of managerial hierarchy.
  3. Optimum utilization of resources: Organising helps in proper usage of men, material and money. Jobs are properly assigned, so there is no confusion or duplication. This helps in minimizing the wastage of resources.
  4. Adaptation to change: Organising function helps in the creation of different departments and managerial hierarchy. This structure helps in adapting and adjusting to the activities in response to the changes in the external environment.
  5. Effective administration: Organizing function provides a clear description of jobs, there is no confusion and duplication. Every individual knows his role and position very clearly. Thus, management becomes easy and this brings effectiveness in administration.
  6. Development of Personnel: through organizing structure, mangers reduce their workload by assigning their routine jobs to their subordinates. This allows the manager to develop new methods and ways to perform the job. This also gives them the opportunity and time to innovate and thus help in strengthening the company’s competitive position. Such delegation also develops the subordinate by giving them the ability to handle challenges and to realize their full potential.
  7. Expansion and growth: With optimum utilization of resources, proper division of work and departmentation, companies can easily meet the challenges and can expand their activities in a planned manner. They can easily add more job positions, departments, and even diversify their product lines. New geographical areas can also be added to increase sales and profits.

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