Importance of Organizing in Business Management - QS Study
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Importance of Organizing in Business Management

Performance of the organizing function can pave the way for a smooth transition of the enterprise in accordance with the dynamic business environment. The significance of the organizing function mainly arises from the fact that it helps in the survival and growth of an enterprise and equips it to meet various challenges.

The following points highlight the crucial role that organizing plays in any business enterprise:

(i) Benefits of specialization: Organizing leads to a systematic allocation of jobs amongst the work force. This reduces the workload as well as enhances productivity because of the specific workers performing a specific job on a regular basis. Repetitive performance of a particular task allows a worker to gain experience in that area and leads to specialization.

(ii) Clarity in working relationships: The establishment of working relationships clarifies lines of communication and specifies who is to report to whom. This removes ambiguity in transfer of information and instructions.

Optimum utilization of resources: Organizing leads to the proper usage of all material, financial and human resources. The proper assignment of jobs avoids overlapping of work and also makes possible the best use of resources.

Adaptation to change: The process of organizing allows a business enterprise to accommodate changes in the business environment. It allows the organization structure to be suitably modified and the revision of inter-relationships amongst managerial levels to pave the way for a smooth transition.

Effective administration: Organizing provides a clear description of jobs and related duties. This helps to avoid confusion and duplication. Clarity in working relationships enables proper execution of work.

Expansion and growth: Organizing helps in the growth and diversification of an enterprise by enabling it to deviate from existing norms and taking up new challenges.

Thus, organizing is a process by which the manager brings order out of chaos, removes conflict among people over work or responsibility sharing and creates an environment suitable for teamwork.