What is Organizing Function of Management?

Organizing is a function of management which represents thorough planning. It is responsible for the integration and harmonization of primary resources of any organization including human resources, physical resources, and financial resources since each of them is necessary to achieve results.

Per Chester Barnard, “Organizing is a function by which the concern is able to define the role positions, the jobs related and the co-ordination between authority and responsibility.” Therefore, every manager always should organize in order to achieve desired results.

Steps Involved in Organizing Function of Management

Following steps are usually performed by a manager for organizing function:-

Identification of activities

All the concerned activities need to be performed should be identified, this would aid in further steps of organizing. Few instances of such activities include accounts, sales, record, quality control, inventory, working capital management, expansion activities, promotional activities etc.

Departmentally organizing the activities

This step involves management of the activities identified in the prior step, these activities should then be grouped and categorized into appropriate departments or functions or units. This division of the whole concern into different functions or departments is called departmentalization.

Classifying the authority

After the activities are clearly departmentalized, authorities need to be classified pertaining to the managers of different departments. This step is primarily about creating an effective hierarchy which can facilitate proper functioning or departments and organization. Higher management should be responsible for the formulation of policies, the mid-level hierarchy is responsible for department level management and junior level management into direct supervision of executioners. The delineation of authority brings in the clarity of the roles and efficiencies in the processes. This also ensures better utilization of time, money, and efforts, also avoiding duplication of efforts.

Co-ordination between authority and responsibility

Synchronization amongst these different departments and groups are then build upon to enable clear communication, further helping in working towards the organizational goals. Every individual should be aware of his roles and responsibilities and who they are reporting to and to whom are they accountable to. A fair organizational structure is mapped and all the employees are communicated about the same.

Importance of Organizing Function of Management


As already discussed, organizational structure is a system of associations in which the work is divided into particular units and departments. These departments of work should be formed in such a manner so as to house specialized activities and desired personnel who are suited to these roles. Thus, helping in building different specializations in different activities of organizations.

Well defined jobs

Organizational structure aims at allocating right resource on right activity which is done by selecting right people for appropriate departments based on their qualifications, skill, and experience. Thus, helping in clearly defining the roles of every person.

Clarifies authority

As already said, organizational structure also helps in clarifying the roles, authorities, and responsibilities associated with every position, then communicated to every manager. There is also a need to communicate the way one can exercise his/ her authority in order to prevent any misuse of powers. This helps in boosting overall productivity of the resources and the organization.


Co-ordination amongst the departments is an important aspect of any organizing function. Smooth co-ordination ensures utilization of right skills completely and avoids any overlapping of efforts and quality output. Clear cut relationship protocols amongst departments ensure mutual co-operation among individuals as well.

The co-ordination between authority- responsibility is necessary, for the effective functioning of any organization. It has been rightly said, “Authority without responsibility leads to ineffective behavior and responsibility without authority makes person ineffective.”

Effective administration

Effective administration can only follow a clearly defined organizational structure. Therefore, everything from defining roles and responsibilities to ensuring Co-ordination amongst departments and encouraging specialization ultimately helps in building a smooth, simple and effective administration.

Growth and diversification

A well-defined organizational structure governed by a well thought out set of formal structures, is necessary for further growth and diversification. A smoothly executing concern can only look forward to growing rather than worry about keeping existing operations in place.

The sense of security

A smoothly running and growing organization is always a great place to work, it also imbibes a sense of security amongst the employees that everything is going in right direction and they can concentrate on their work rather worrying about their job security.

Scope for new changes

Once an organization is correctly aligned and executing fine, it gives a room for positive new changes that can be implemented in order to achieve better work-life balance, better quality output, closer client interaction, lower attrition etc. These changes can be internal, not directly related to the product or product improvisation measures. Anyways, a positive change brings in the refreshing sense to employees and the clientele of the organization and is considered a welcome step.