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What is Organizing Function of Management?

Ask any businessman and he would tell you that business is not a result of on the spot decisions and perfect awe striking ideas that come out of nowhere to take the newly emerged tycoon to success. That’s something movies show you and make you believe in. Frankly, businesses are built on much more. It is built on blood and sweat and brawn and brain. Success is always the child of meticulous work done by a business man and out of the important functions a successful businessman does, Organizing becomes an important managerial function.

A business is a composite whole of many parts. It is a single entity made out of multiple coordinate interdependent entity. The creation of this single unit from multiple units is the result of organizing. Organizing can thus be simply understood as a function involving the process of bringing together resources of diverse nature and putting them together in such a manner that the system works.


Giving it a more formal definition, “Organizing is the process of identifying and grouping the work to be performed, defining and delegating responsibility and authority, and establishing relations for the purpose of enabling people to work most effectively together in accomplishing objectives” – Louis Allen.

It is a process that transcends the nature of the resources. It involves process such as bringing in a new machine into the factory, making sure the staff is competent to work it, getting permit for the machine etc. It is a mother function incorporating multiple functions and is the backbone of a successful business holding it steady and upright. At this juncture let’s have a glance at its many benefits

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Principles of Organizing Function of Management

Like all functions there are certain fundamental rules or principles to be understood while Organizing too. The more pertinent ones are :

Principle of Specialization

Specialization either in the form of function or divisions/regions is seen throughout all business entities. A particular department specializes in what is assigned to it or a branch of region specializes in things confined to that region. This is based on the principle of specialization.

Principle of Unity of Objectives

Even though the business may have various functional branches or department, these departments have to be organised on the basis of a central planned goal or objective. The working and the objectives of all the departments should culminate into the achieving the objective of the business.

Principle of Coordination

In order for the work of all departments to lead to the achievement of the objectives of the business as a whole, there requires the discharge of a very important function in a very efficient manner, which is Coordination. The work of one department has to perfectly align and complement the work of the other.

Scalar Chain

The scalar chain is a very important concept and principle central to Organizing. It is a concept that depicts the hierarchal positioning of all the employees and details who does what and who controls what and who coordinates what and much more. This concept is central to the other principles of organizing.

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Unity of Command

Ever been in a situation where you Mom asks you to do something and Dad says something else. Well it’s a problematic pickle and the same would exist in a business if not for this principle. This principle states that a subordinate should only be reporting to and getting orders from one superior at a time. That is to say, a factory worker should not be getting orders from all managers from sales to marketing, but should only be getting commands from a production manager or someone in production directly above him. (This is unless the CEO gives you an instruction). The employee is obliged to follow the production side managers or (the CEO).

Delegation and Decentralization

Distinct yet often confused concepts which are central to organizing. Decentralization as the process of distributing powers across the structure ensures its healthiness and steadiness and Delegation by a superior to a subordinate eases the workload and get things done. On a detailed difference between both which is not the issue here, reference to an earlier article be made.

Accountability and Responsibility

Accountability and Responsibility through the entire structure facilitates the process of understanding what went wrong and were and thereby rectifying and reorganizing it. This thus becomes pertinent as a principle.

These principles are apart from those like the principle of flexibility, that of balance and proper structuring etc. These are as central to the ones mentioned above.

Importance of Organizing Function of Management

Optimum Resource Utilization

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. By doing so it ensures that the resources employed by the business are not wastefully used. All resources ranging from the most important human resources to a simple eraser would be optimally used if the organizing process is carried out with heart and vigor.

Adapting to Change

Change is the only thing that’s constant. This statement is something that applies across everything from the environment to the human condition and businesses too. A business environment composed of the customers, the world and the workers never remain constant and changes and keeps on changing. Adapting to such changes is pertinent for success. A good organisational structure flexible enough to tackle such tides yet rigid enough to hold firm to hold steady to its objectives becomes the kingpin during such times.

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Modern day function of organizing involves the process of creating functional structures within the business whereby the business is divided on the basis of function and is organised in that fashion. This over the years have brought about the obvious benefit of specialisation. Its just how nature and humans work. You do something long enough, hard enough wanting to do and you get better at it. The principle applies here too where you work and business exploit this quite well these days.

Defined Relationships

Ever done something you really weren’t supposed to do. Well once in a while in normal life its fine, but not always and definitely not always in businesses. Businesses run on defined relationships were certain people do things which other people shouldn’t and don’t do. This allows for determining how does what and ensuring that it is done by the person who can do it best. Plus, it also helps in identify who started the mess when you do something you aren’t supposed to.

Effective Administration and Personnel Development

These two are apparent benefits. of the above mentioned two benefits. Join the lines as to how from the foregoing elaborations.

Organizing is thus a very important function facilitated by principles derived from long years of practice and experience and its importance to a business cannot be overstated.

Image credit: Ron

About Sonia Kukreja

I am a mother of a lovely kid, and an avid fan technology, computing and management related topics. I hold a degree in MBA from well known management college in India. After completing my post graduation I thought to start a website where I can share management related concepts with rest of the people.