What is the Organizing Function of Management?

Cite this article as:"What is the Organizing Function of Management?," in The Business Professor, updated April 6, 2020, last accessed October 25, 2020, https://thebusinessprofessor.com/lesson/what-is-the-organizing-function-of-management/.

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What is the Organizing Function of Management?

Organizing is the process of assembling the people, organizing resources, and distributing the planned work necessary to carry out the manager’s plan. Organizing is driven by goals identified during the managerial planning process.

Organizing includes developing an “organizational structure” that allows for the efficient execution of tasks to complete objectives and obtain goals. Decisions concerning the structure of an organization are known as “organizational design.”

Much of the organizing activity concerns developing an organizational structure for how to assemble individuals into a hierarchy of reporting and authority. The organizational structure specifies reporting relationships, delineates formal communication channels, and describes how separate actions of individuals are linked together. General responsibilities in this regard include:

  • Firm Activities – Determine the necessary activities and classify them.
  • Grouping – Group company activities into workable departments.
  • Responsibility – Assign authority and responsibility to subordinate managers.
  • Relationships – Develop a working relationship between superiors and subordinates within the department or sub-unit.
  • Rules – Create policies, procedures, and a plan for supervision.

Designing an organizational structure generally begins with an organization chart identifying the division of individuals within the organization and the hierarchy of authority and reporting. There are numerous methods for organizing individuals, including by function, product, geography, or customer.

Within the organization, individuals will carry on specific activities in furtherance of organizational objectives. Part of organizational design includes developing work responsibilities and processes for individuals. This responsibility is generally referred to as “job design”.

Job design concerns allocating work responsibilities for the greatest efficiency in completion. This might include allocating responsibilities based upon knowledge, experience, physical or cognitive ability, etc. Job specialization generally increases efficiency. However, it must be balanced against the need to continually motivate employees.

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