Reading: The Organizing Function

Business Management for Every Enterprise

Unit 2

The Organizing Function

Organizing

Organizing is done by determining what tasks are to be done, who is to do them, how the tasks are to be grouped, who reports to who, and where to decisions are to be made.

The process of identifying and grouping the work to be performed, defining and delegating responsibility and authority, and establishing relationships for the purpose of enabling people to work most effectively together to accomplish objectives

Defining Organizational Structure

Organizing – The process of creating an organization’s structure

Organizational Structure – The formal framework by which job tasks are divided, grouped, and coordinated

Organizational Design – Process of developing or changing an organization’s structure.
- This process involves six key elements

Organizational Structure

Organization structure: The formal system of task and authority relationships that control how people coordinate their actions and use resources to achieve organizational goals

Defines how tasks are divided, resources are deployed, and departments are coordinated
- Set of formal tasks assigned
- Formal reporting relationships

Organization Design

Organization design: the process which managers select and manage aspects of structure and culture so that an organization can control the activities necessary to achieve its goals.

The design of systems is to ensure effective coordination of employees across departments. Organization structure design is critical in assisting organizations in adapting to an ever-changing business environment.

Organization can be managed and changed through the process of organizational design.

Importance of Organizing

Focus on, and facilitate the attaining of objectives.

Arrangements of positions and jobs with the hierarchy.

Define responsibilities and line of authority of all levels.

Creating relationships that will reduce friction.