Organizing creates management. Organizing is a grouping of activities necessary to accomplish group’s goals. In order to accomplish goals, carry out plans, and make it possible for employees and managers to work efficiently, an intentional structure is designed. This intentional structure designs and specifics role of persons fitted in the organization chart. An activity must be organized before it is performed. Organizing is the process of establishing activity-authority relationship of an enterprise. It is a second function of the manager, first being planning.
Organizing process involves:
(i) Determination of activities
(ii) Grouping of activities
(iii) Assignment of activities
(iv) Delegation of authority
(v) Unification of all assigned activities (Coordination)
An organization is a social institution. It is a system 2 relationship in an undertaking. An organization may also be referred to as an enterprise itself. It is an intentional structure of roles for persons along with their authority. It is a cooperation of two or more persons.
When an individual alone is unable to perform or compete an activity he brings into being an organization. Organization is the result of three limitations of an individual:
(1) Skill limitation
(2) Physical limitation
(3) Time limitation
These limitations compel him to make an organization to get the work done. Organization comes into being when two or more persons get together to get the work done It continues to survive as long as it has a goal or goals to’ accomplish. After one goal is accomplished the other must appear or the organization will or should come to an end.
It may be defined in different ways as follows:
1. It is a system of welt-defined jobs with a definite measure of authority, responsibility, and accountability, the whole consciously designed.
2. It is more or less arbitrary structure to which an individual must adjust. It tells the worker to obey orders and work cooperatively with others.
3. It is the reflection of organization chart.
4. Formal organization is the creation of management.
It is what people do in terms of needs, emotions, and attitudes not in terms of procedures and regulations. Here people work together because of their personal likes and dislikes. Informal groups may exist within format organization. It has no place in the organization chart. It is a group which emerges as a result of emotions, friendship, nearness and harmonious hobbies and thinking.