Meaning, importance and process of organising

The essentials

Organising is the process of identifying and grouping the work to be performed, defining and delegating responsibility and authority, and establishing relationships so that people can work together effectively to achieve objectives. It creates the framework within which plans are carried out.

Key points

• Steps in the process: identification and division of work (dividing the total work into manageable activities), departmentalisation (grouping similar activities into departments), assignment of duties (giving jobs to people according to their abilities), and establishing reporting relationships (making clear who reports to whom).
• Importance: benefits of specialisation, clarity in working relationships, optimum utilisation of resources (avoiding duplication), adaptation to change, effective administration, development of personnel (delegation frees managers and develops subordinates), and expansion and growth.
• Departments may be formed by function (production, sales, finance), by product, or by territory.

Exam tips

• Remember the order: identify and divide work, departmentalise, assign duties, establish reporting relationships.
• If a case talks about avoiding duplication of work and wastage of resources, the importance is optimum utilisation of resources.

Common mistakes

• Confusing organising (arranging work and authority) with staffing (finding people for jobs).
• Putting 'assignment of duties' before departmentalisation. Departments must be formed first.