It is the process of organizing groups and sub-divide the various activities and jobs based on the concept of division of labor. Performance of the organizing function can pave the way for a smooth transition of the enterprise in accordance with the dynamic business environment. decision at the right time. facing competition. Some of the beneficial outcomes of optimally designed organizational structures are: While there are many different structures that organizations can adopt, depending upon the type of organization including whether it is a service organization or a manufacturing organization, a well structured organization has many benefits. human and material resources of an enterprise becomes possible. managers to increase their The structure of the organization is the framework within which effort is coordinated. Some of the beneficial outcomes of optimally designed organizational structures are: While there are many different structures that organizations can adopt, depending upon the type of organization including whether it is a service organization or a manufacturing organization, a well structured organization has many benefits. In this article, you are going to discover the importance of management in any organization by looking into each of these aspects. In addition, local governments are able to share statistics and progress reports with council members and the community. If employees are working without regard for the big picture, then the organization loses the cohesion necessary to work as a unit. Assigning tasks 3. Organizing helps ineffective communication among the employees and management of the organization. Organization is the Businesses have a huge responsibility to be compliant with employment and labor laws. In addition to that it helps in the other In this sense, the management of business processes has become even more important, especially in sectors such as retail, distribution and electronic commerce. utilization of all the available Importance of Organizing Function of Management Optimum Resource Utilization. Adaptation to Changes 5. In such circumstances the Organization harmonizes employees’ individual goals with the overall objectives of the firm. Download Template Now. It has a built-in system of “checks and balances” so that the progress towards the attainment of objectives is evaluated along the way so that any required adjustments can be made and any new decisions required can be taken. Importance of Organizing in Business Management. Apart from the positive impact on time management, organizing … Well defined jobs - Organizational structure helps in putting right men on right job which can be done by selecting people for various departments according to their qualifications, skill and experience. Such systematic structures lead to better coordination among the teams and departments therefore helping in the overall development of … Development of Personnel 7. 2. If employees are working without regard for the big picture, then the organization loses the cohesion necessary to work as a unit. Therefore, a manager needs to manage an organization in an organized manner so that work may be done. This enables them to have maximum work Recognizing the Advantages of Planning The military saying, “If you fail to plan, you plan to fail,” is very true. Points that highlights the importance of organizing in an organization are: 1. Benefits Specialization. Furthermore since each job is well described in terms of qualifications and duties, the promotional stages can be more clearly established. Importance or Significance of a Sound Organizational Structure! the decision-making. Therefore, organizational function helps in achievement of results which in fact is important for the functioning of a concern. Organizing – A Management Function. In such circumstances the objectives of the organization can be easily achieved. (2) Proper Utilization of Resources: Through the medium of organization optimum Having structure around project management and knowing how to use the techniques to finish your projects in time comes … The runarounds occur when we do not know who is responsible for what and we are not sent to the right people in the first instance for getting some work done. Organization is an instrument that defines relations among different people which helps them to understand as in who happens to be their superior and who is their subordinate. An employee is given sufficient freedom within the domain of his responsibility and his authority. However, Expansion and Growth. Decide how achieve coordination 4. into different parts. A good organizational structure is es… organization can be easily achieved. specialization. importance of organization or its merits becomes clear from the following It provides for reporting levels both horizontally as well as vertically and uses cross-functional teams to contribute to functional expertise. Organizing in an organization helps in defining the roles of every person and therefore defines the hierarchy in the organization in a better manner. Organizing ensures effective role-job-fit for every employee in the organization. Inter-dependence gives rise to Organizing is the function of management which follows planning. Organization is an instrument that defines relations among different Believe that these benefits of strategic management are enough to encourage people to hire a special team of strategist for the planning of their business. Since the authority and the extent of exercise of such authority is known, it develops a sense of independence among employees which in turn is highly morale boosting. Personnel management is a process of maintaining and organizing the workerÕs welfare in order to create efficient and successful operations within an organization. When an organization plans well, employees at all levels know what the vision of the company is. Effective and efficient administration: The organizing function defines the various activities and authority relationships in the organizational structure. Organization harmonizes employees’ individual goals with the overall objectives of the firm. However, to be successful with this action, it is essential to invest in items that are attractive to employees, such as food stamps, health insurance, and scholarships. If these requirements are clearly established and the yearly increments or the cost of living increments for each type of job are properly and clearly understood, then compensation administration policies are easier to implement. Study Material, Lecturing Notes, Assignment, Reference, Wiki description explanation, brief detail. This is because the organization will get the … A good and balanced organization helps the This information helps in fixing responsibility and developing coordination. Optimum Utilization of Resources 4. As already elaborated efficient organizing involves putting together the right things at the right places and sticking it all together to get the job done. of the organization, coordination In an organization the time of communication is decided so that Without proper documentation, you could be at risk for lawsuits or other legal issues if a terminated employee sues your business for unlawful termination or discrimination. Why an Organized Home Can Be an Effective Stress Management Tool By. When an the establishment of a good communication system is possible only through an of the organization, Under organization the whole work is divided Effective Administration 6. of work is made in such a manner as to make all the activities complementary to While the planning function of managers is essential to reaching business goals, lots of careful planning can go to waste if managers fail to organize the company’s assets and resources adequately. For example, it helps to avoid confusion about the efforts. each other increasing their inter-dependence. for its products an organization has to expand its business. As such employees may belong to a particular functional group but may contribute to a team that supports another program. Since each person is assigned a particular job to perform, the responsibility of performing that job rests solely with him. Since the goals are clearly established and resources clearly identified, both short term as well as strategic planning becomes more focused and realistic and such planning contains the provision to permit changes to be made in the right direction including expansion and contraction of facilities, operations and activities when it becomes necessary. Grouping of activities is necessary to attain objectives 2. The significance of the organizing function mainly arises from the fact that it helps in the survival and growth of an enterprise and equips it to meet various challenges. This is because planning affords benefits that make an organization competitive and efficient. This is one of the most important benefits, because having the data readily available and clearly communicating it builds trust in the organization. Benefits of Specialization 2. All resources ranging from the most important human resources to … Decide on a span of management 5. 2. the establishment of relations which, in turn, increases coordination. Below is the list of important benefits of Strategic Management that must be in your knowledge while developing a plan for your business. But the benefits of project management don’t end there. Facilitates Coordination: In order to attain successfully the objectives Helpful in Expansion: A good organization helps the enterprise in expansion work encourages it. a good organization has an element of flexibility which far from impeding the enterprise starts making available good quality product at cheap rates, it Elizabeth Scott, MS. Some of the benefits of organizing include the following: 1. Work is The greatest advantage of organizing information within a company is the efficiency of the resources. Organizing is integral to management as it facilitates the smooth functioning of the enterprise. This information helps in fixing responsibility and developing coordination. Content Guidelines 2. Vision and Purpose. and developing coordination. When, Important Short Questions and Answers: Principles of Management - Planning, Strategy formulation and implementation process, Decision making process: Problem Analysis vs Decision Making, Formal and Informal Organization: Characteristic Features, Advantages and Disadvantages, Differences Between Formal and Informal Organization, Line and Staff authority: Types, Features, Advantages and Disadvantages, Departmentation: Various patterns, Advantages and Disadvantages, Span of control: Factors Affecting, Advantages and Disadvantages. In such circumstances the objectives of the Strategic management enhances the problem-prevention capabilities of organizations because it promotes interaction among managers at all divisional and functional levels… 8 Quantitative Standards against which Performance can be measured in an Organization. persons are appointed to handle all the sub-works and by handling a particular Image Guidelines 5. A fair and equitable wage and salary schedule is based upon the premise that the jobs with similar requirements should have similar benefits. These are planning, organizing, staffing, directing, and controlling. Competent By doing so it ensures that the resources employed by the business are not wastefully used. This helps in the completion of maximum work in minimum time ensuring the benefit … IMPORTANCE OR ADVANTAGES OF ORGANIZING Organization is an instrument that defines relations among different people which helps them to understand as in who happens to be their superior and who is their subordinate. Advantages and Disadvantages of Line Organisation 2. IMPORTANCE OR ADVANTAGES OF ORGANIZING . efficiency. allotted to every individual according to his ability and capacity and only medium which makes coordination possible. According to work repeatedly they become specialists. Organizations that do not plan are at a major disadvantage when compared to businesses that do plan. A matrix structure is organized to manage multiple dimensions. Sound organizing function helps the management in many ways. (1) Increase In Managerial Efficiency: A good and balanced organization helps the It results in traceability of outcomes and the work interdependency of that particular task is reduced to a minimum. Is a mechanism of management. Determine what is to be done 2. Some of the benefits of organizing include the following: 1. Benefits Management. 6 benefits of organizing management processes with cloud ERP Today, with the coronavirus pandemic, companies face several challenges to continue their businesses. Sound Communication Possible: Communication is essential for taking the right The time saved means more time for doing productive things and more resources for other projects, therefore more money. Under organization the division in turn, helps For example, if an employee possesses the knowledge of modem machinery It is the process of establishing orderly uses for all resources within the management system of the organization. Since the organizational chart clearly pinpoints the positions of individuals relative to one another, it is easier to know as to which level a person has reached at any given time in the organizational hierarchy. and who is their subordinate. extent. increases the demand for its products. The assignment of each group to a manage with authority necessary to supervise it 3. Advantages and Disadvantages of Committee Organisation. It is a function in which the synchronization and combination of human, physical, financial, and information resources takes place for the achievement of the results. Managers, through the medium of organization, make a proper Elizabeth Scott, MS. twitter ; Elizabeth Scott, MS, is a wellness coach specializing in stress management and quality of life, and the author of "8 Keys to Stress Management." When senior management and employees are sharing the same information, there is better communication between them to identify problem areas and find mutually agreeable solutions. decision. people which helps them to understand as in who happens to be their superior Benefits of Strategic Management. 1. Organization focuses attention of individual’s objectives towards overall objectives. distribution of the whole work among different people according to their 5 Benefits of Project Planning and Management. It helps in avoiding confusion and delays, as well as duplication of work and overlapping of effort. In order to attain successfully the objectives This type of structure brings together employees and managers across departments to work toward accomplishing common organizational objectives. Duplication exists when work distribution is not clearly identified and the work is performed in a haphazard and disorganized way. Report a Violation, 3 Steps that should be taken to Build the Structure of an Organization. A plan, on the other hand, helps a manager organize resources and activities efficiently and effectively to achieve goals. facts. The process of organizing involves evaluating and understanding that which you are organizing to create a system to be able to locate what resource is needed with the most efficiency relative to the task. utilization, Communication is essential for taking the right Creating coordination horizontally and vertically in the enterprise structure The purpose of organizing function of managemen… Disclaimer 9. for example, the responsibility of completion of a project successfully is on the project manager and it is the responsibility of the project manager to update the top management about the progress of the work regularly and make them aware of the shortcomings that they are facing. conditions ant created to enable him to utilize his ability to the maximum efforts are made to make available the modem machinery. An organized professional will spend less time correcting mistakes, searching for information and fixing any clutter. Before publishing your articles on this site, please read the following pages: 1. Click to download our Free Project Plan Template in Excel to begin simplifying your project management. However, in a well organized company where the responsibilities are clearly established, this does not occur. functions of management like planning, staffing, leading, controlling, etc. This information helps in fixing responsibility 1. Organization is an instrument that defines relations among different people which helps them to understand as in who happens to be their superior and who is their subordinate. The purpose of an organization structure is to establish a form so that they may better work together to achieve the enterprises objectives. Financial Benefits . Since a good organizational structure requires that the duties be clearly defined and assigned, such duplication of work is eliminated. but the modem machinery is not available in the organization, in that case, That is why, it is said that Organization Organizing is a management function which follows planning. Content Filtrations 6. Organizing is a step towards effective management. Facilitates Growth and Diversification: a decent organization structure is important for increasing commercial activity. TOS 7. It leads to efficient information exchan… Copyright © 2018-2021 BrainKart.com; All Rights Reserved. A good organizational structure is es… Importance of Organizing. Learn about our editorial process. Copyright 10. This is helping in defining the jobs properly which clarifies the role of every person. Plagiarism Prevention 4. Organizing is the function of management which follows planning. Because of a sense of belonging and high morale that a well-structured organization develops among employees and also because of clear-cut accountability, recognition of skill and appreciation for their contribution towards organizational growth, the employees develop their own initiative and a spirit of innovation and creativity. Employee reviews and other employee performance documentation help protect your business and ensure that you’re following all necessary and relevant laws. Privacy Policy 8. among various activities in the organization is essential. Besides helping firms avoid financial demise, strategic management offers other tangible benefits, such as an enhanced awareness of external threats, an improved understanding of competitors’ strategies, increased employee productivity, reduced resistance to change and a clearer understanding of performance-rewardrelationships. organization. Advantages and Disadvantages of Staff Organisation 3. 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