Organizing (management)

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Organizing is the establishment of effective authority relationships among selected work, persons and work places in order for the group to work together efficiently. Or the process of dividing work into sections and departments.


The organizing of information could be seen since humans began to write. Prior to that, history was passed down only through song and word.[citation needed] As can be seen with religion, books and spoken word, science (through journals and studies) organizing not only is history, but also supports the communication of history.


The following are the important characteristics of organization.

  • Specialization and division of work. The entire philosophy of organization is centered on the concepts of specialization and division of work. The division of work is assigning responsibility for each organizational component to a specific individual or group thereof. It becomes specialization when the responsibility for a specific task lies with a designated expert in that field. The efforts of the operatives are coordinated to allow the process at hand to function correctly. Certain operatives occupy positions of management at various points in the process to ensure coordination.
  • Orientation towards goals. Every organization has its own purposes and objectives. Organizing is the function employed to achieve the overall goals of the organization. Organization harmonizes the individual goals of the employees with overall objectives of the firm.
  • Composition of individuals and groups. Individuals form a group and the groups form an organization. Thus, organization is the composition of individual and groups. Individuals are grouped into departments and their work is coordinated and directed towards organizational goals.
  • Continuity. An organization is a group of people with a defined relationship in which they work together to achieve the goals of that organization. This relationship does not come to end after completing each task. Organization is a never ending process.
  • '"FLEXIBILITY.'" The organizing process should be flexible so that any change can be incorporated easily. It ensures the ability to adapt and adjust the activities in response to the change taking place in the external environment. The programs, policies and strategies can be changed as and when required if the provision for flexibility is made in the organizing process.


  • Helps to achieve organizational goal. Organization is employed to achieve the overall objectives of business firms. Organization focuses attention of individuals objectives towards overall objectives.
  • Optimum use of resources. To make optimum use of resources such as men, material, money, machine and method, it is necessary to design an organization properly. Work should be divided and right people should be given right jobs to reduce the wastage of resources in an organization.
  • To perform managerial function. Planning, Organizing, Staffing, Directing and Controlling cannot be implemented without proper organization.
  • Facilitates growth and diversification. A good organization structure is essential for expanding business activity. Organization structure determines the input resources needed for expansion of a business activity similarly organization is essential for product diversification such as establishing a new product line. it also stimulates creativity in managers by organizing.
  • Humane treatment of employees. Organization has to operate for the betterment of employees and must not encourage monotony of work due to higher degree of specialization. Now, organization has adapted the modern concept of systems approach based on human relations and it discards the traditional productivity and specialization approach.


Organizing, in companies point of view, is the management function that usually follows after planning. And it involves the assignment of tasks, the grouping of tasks into departments and the assignment of authority with adequate responsibility and allocation of resources across the organization to achieve common goals. Organizing involves the establishment of an intentional structures of roles through determination and enumeration of the activities required to achieve the goals of an enterprise and each part of it,the grouping of these activities, the assignments of such groups of activities to managers,the delegation of authority to carry them out,and provision for coordination of authority and informal relationships,horizontally and vertically,in the organisation .


The framework in which the organization defines how tasks are divided, resources are deployed, and departments are coordinated.

  1. A set of formal tasks assigned to individuals and departments.
  2. Formal reporting relationships, including lines of authority, decision responsibility, number of hierarchical levels and span of managers control.
  3. The design of systems to ensure effective coordination of employees across departments.

Work specialization[edit]

Work specialization (also called division of labor or job specialization) is the degree to which organizational tasks are sub-divided into individual jobs. It may increase the efficiency of workers, but with too much specialization, employees may feel isolated and bored. Many organizations enlarge jobs or rotate assigned tasks to provide greater challenges.

Chain of command[edit]

Chain of command is the vertical lines of a command structure that is used for the purposes of overall responsibility and accountability in the achieving of stated goals and objectives through the use of orders one direction and reports of compliance in the other direction. Chain of command differs from horizontal lines in an organization which are basically the communication and coordinating lines of the organization. Chain of command(also referred to as 'scalar principle') states that a clear , unbroken chain of command should link every employee with someone at a higher level, all the way to the top of the organisation.

Authority, responsibility, and accountability[edit]

  • Authority is a manager's formal and legitimate right to make decisions, issue orders, and allocate resources to achieve organizationally desired outcomes.
  • Responsibility means an employee's duty to perform assigned task or activities.
  • Accountability means that those with authority and responsibility must report and justify task outcomes to those above them in the chain of command.


Delegation is the transfer of authority and/or responsibility to others, often lower in position. Delegation can improve flexibility to meet customers’ needs and adapt to competitive environments. Possible reasons for delegation: 1. Efficiency - many people can complete a task faster than one/few 2. Specialization - delegating simple tasks allows more important/complex tasks to be completed by the most qualified 3. Training - delegating a task to a trainee so that they may learn from experience

Types of authority (and responsibility)[edit]

Line authority managers have the formal power to direct and control immediate subordinates. The superior issues orders and is responsible for the result and the subordinate obeys and is responsible only for executing the order according to instructions.

Functional authority is where managers have formal power over a specific subset of activities. For instance, the Production Manager may have the line authority to decide whether and when a new machine is needed but the Controller demands that a Capital Expenditure Proposal is submitted first, showing that the investment will have a yield of at least x%; or, a legal department may have functional authority to interfere in any activity that could have legal consequences. This authority would not be functional but it would rather be staff authority if such interference is "advice" rather than "order".

Staff authority is granted to staff specialists in their areas of expertise. It is not a real authority in the sense that a staff manager does not order or instruct but simply advises, recommends, and counsels in the staff specialists' area of expertise and is responsible only for the quality of the advice (to be in line with the respective professional standards etc.) It is a communication relationship with management. It has an influence that derives indirectly from line authority at a higher level.

Line and Staff Authority is the combination of Line organization and Staff organization. Such organization follows both the principles of scalar chain of command and there is a provision for specialized activities to be performed by staff officers who act in an advisory capacity

Span of management[edit]


  • Direct single relationship.
  • Direct group relationships.
  • Cross relationship.

Factors influencing larger span of management.

  1. Work performed by subordinates is stable and routine.
  2. Subordinates perform similar work tasks.
  3. Subordinates are concentrated in a single location.
  4. Subordinates are highly trained and need little direction in performing tasks.
  5. Rules and procedures defining task activities are available.
  6. Support systems and personnel are available for the managers.
  7. Little time is required in non-supervisory activities such as coordination with other departments or planning.
  8. Managers' personal preferences and styles favor a large span.

Tall versus flat structure[edit]

  • Tall - A management structure characterized by an overall narrow span of management and a relatively large number of hierarchical levels. Tight control. Reduced communication overhead.
  • Flat - A management structure characterized by a wide span of control and relatively few hierarchical levels. Loose control. Facilitates delegation.

Centralization, decentralization, and formalization[edit]

  • Centralization - The location of decision-making authority near top organizational levels.
  • Decentralization - The location of decision-making authority near lower organizational levels.
  • Formalization - The written documentation used to direct and control employees.


Departmentalization is the basis on which individuals are grouped into departments and departments into total organizations. Approach options include:

  1. Functional - by common skills and work task
  2. Divisional - common product, program or geographical location
  3. Matrix - combination of Functional and Divisional
  4. Team - to accomplish specific tasks
  5. Network - departments are independent providing functions for a central core breaker

Importance of organizing[edit]

  • Organizations are often troubled by how to organize, particularly when a new strategy is developed
  • Changing market conditions or new technology requires a change
  • Organizations seek efficiencies through improvements in organizing
  • it ensures that objectives are accomplished.

See also[edit]


Coase, Ronald (1937). "The Nature of the Firm" Economica, 4(16), pp. 386–405. Handy, Charles (1990). Inside Organizations: 21 Ideas for Managers. London: BBC Books. ISBN 978-0-563-20830-3. Handy, Charles (2005). Understanding Organizations (4th ed.). London: Penguin Books. ISBN 978-0-14-015603-4. Hewlett, Roderic. (2006). The Cognitive leader. Rowman & Littlefield Pub Inc.