Introduction to Management

Chapter Summary

Organizing is an important managerial function. If managerial planning focuses on deciding what to do, organizing focuses on how to do it. Thus, after a manager has set goals and developed a workable plan, the next managerial task is to organize people and groups to carry out the plan.

Organizing is the process of identifying and grouping the work to be performed, defining and delegating authority, and establishing relationships to enable people to work together to achieve the organization's objectives. In essence, organizing involves the grouping of activities and resources in a logical fashion.

The various approaches to the division and coordination of work activities and resource allocation fall under two broad categories: the classical closed systems and the open systems. Closed systems involve sets of interacting elements operating without any exchange with the environment in which they exist. Open systems consists of sets of elements that interact with each other and with the environment, and whose structure evolves over time as a result of these interactions.

The span of management refers to the number of subordinates who report directly to a specific manager. According to Graicunas, what counts is the number of relationships among those who report to a manager, not the number of people who report to him. Spans of management have a direct affect on the number of hierarchical levels in an organization. A tall structure consists of many hierarchical levels with narrow spans of control, whereas a flat structure contains fewer hierarchical levels.

The process of organizing consists of six steps - defining the firm's objectives, framing supporting objectives and policies, identifying and classifying the required activities, grouping the activities according to the available human and material resources, delegating authority, and horizontal and vertical coordination of the various groups in the organization.

Effective organizing has many benefits. It helps individuals clearly visualize the tasks they are expected to accomplish. It supports planning and control activities. Organizing also creates channels of communication and helps in maintaining the logical flow of work activities. The process of organizing ensures efficient use of resources and helps avoid conflicts and duplication of effort. It coordinates diverse activities and builds harmonious relationships among members of the organization. The process of organizing helps managers to focus on tasks that are logically related to a common goal.

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