From: Group3

To Teacher: Souvanny Rattanavong

Subject: Essential of Management

Report on Organizing

 Definition of Organizing

Organizing is the establishment of effective authority relationships among

selected work, persons and work places in order for the group to work together
efficiently. Or the process of dividing work into sections and departments.
Therefore, it is a process which coordinates human efforts, assembles resources
and integrates both into a unified whole to be utilized for achieving specified
objectives.
Organizing is the second key management function, after planning, which
coordinates human efforts, arranges resources and incorporates the two in such
a way which helps in the achievement of objectives. It involves deciding the
ways and means with which the plans can be implemented.

 Types of Organizing

1. Functional Organization
In a functional structure, a common configuration, an organization is
divided into smaller groups by areas of specialty (such as IT, finance,
operations, and marketing). Communication generally occurs within each
functional department and is transmitted across departments through the
department heads. Functional departments are said to offer greater
operational efficiency because employees with shared skills and knowledge
are grouped together according to the work they do.
2. Divisional Organization
 This type of organization often resembles a Functional Organization.
The team members work in different departments. This setup splits the
employees into segments based on products, markets, or services. This
design focuses on service lines like products, customers, area, and time.
Since they operate as small organizations, they're called “self-contained
structures.” So, they work independently on divisional goals. But all
divisions collectively meet the organizational policies and business
objectives.
3. Matrix Organization
This one is the combination of a projectized and functional
organization. This hybrid organization overcomes the limitations of each
organization. Here, both the functional and project managers share their
respective authorities. This type of organization is most useful when
workers must share available resources. The combination achieves high
efficiency and better usage of available resources. Also, they adapt better to
the changing trends.

 Steps of Organizing

1) Considering of plans and goals

Organizational plans and goals influence organization and outcomes.
The objectives and activities that the organization currently have or are
likely to have in the future are determined by the program. Some basic
objectives and some general activities tend to be relatively stable over the
long term, for example since inception. Business companies will continue to
make profits. and in this effort, the company will continue to use human and
non-human (material) resources.
2) Determining the work activities necessary to achieve the objectives.
It is necessary to determine the functional activities that are necessary
to achieve the objectives of the organization. Initially, it is essential to
prepare a list of tasks to do. Therefore, it is necessary to classify tasks into
two types: continuous tasks and one-time jobs for all, for example including
hiring, training, and record keeping. Such works may include assembly,
machining, transportation, storage, inspection, sales, advertising, etc.
3) Classifying and grouping activities
 The classification and grouping of similar activities using a
homogeneous approach is based on the concept of division of labor and
expertise.
To accomplish tasks that are similar in nature different jobs. The
necessary processes or skills must be put together to achieve the
organization's objectives.
4) Preparing assignments and delegations
After identifying the activities necessary to achieve the objectives,
categorize and group these activities into main areas of operation, and select
departmental structure. Management will delegate activities to persons who
are appropriately authorized, while at the same time as together to get the
job done.
5) Designing a Hierarchy of Relationships This final step requires the
determination of the vertical and horizontal operational relationships of the
organization as a whole. The result is that this step is ‘Getting everything
together'.

 Why Organizing is important

Organization is important because it helps to reduce the stress from the daily
and chronic chaos in your life. Being organized helps you to manage the
overwhelm you feel because you have too much to do, you do not have the
time, and you don’t know where to begin. Organization helps you to find what
you are looking for, get to appointments on time, and get things done.
Organizing fits in with efficient time management. Managers must organize
in a number of ways. Some which are:
1. Setting up their departments in terms of human effectiveness and apparatus
(computers, and so on) for the best outcome.
2. Developing databases that can be accessed by the least experienced person in
the department.
3. Having a schematic of every function in their departments.
4. Every day assessing efficiency and effectiveness of every phase of the
company in grid form prepared by each manager of every department in the
company and given to the senior executive or manager (to be done at the
supervisory level as well and provided to each manager of each department).
 5. Know every aspect of the department or firm in order to determine the
weakest point in order to make improvements.
6. Financial Management: Organization is the root of a stable financial
management program. Without a system that monitors receivables and track
cash flow, balances can go unpaid without notice. Staying on top of how much
money is going in and out can help you adjust what’s necessary to reduce
spending and increase sales.
The list is virtually never ending, but the above are generally the foundations
of good management organization.

 Advantage and disadvantages of Organizing

 Advantages

1) It groups employees based on functional skills for a higher degree of

performance.
2) Employees have experience in the same field, resulting in higher output.
Also, they deliver high-quality services and results.
3) Accountability is evident, as the roles and responsibilities are clearly defined.
4) Hierarchy is visible and no need for multiple reporting
5) No duplication of work as each department is different. Also, the job
description is clear.
6) Career path for the staff is clear and visible

 Disadvantages
1) Employees get bored with the routine and lose enthusiasm.
2) It limits the management skills of functional managers. Hence, they face
restrictions on their growth path and remain specialists. So they're not prepared
for top management posts.
3) Departments are more concerned with their departmental goals and therefore
may be less responsive to the organization’s overall objectives.
4) Hiring costs are too high as high-skilled employees cost more.
5) It causes conflicts in making critical decisions as a result of bureaucratic
hierarchy. Functional managers have full authority and may make arbitrary
decisions.
 Conclusion

Organizing involves the establishment of a sound organization structure so

that work is carried out as planned. The purpose of organizing is for people to
coordinate with each other and to work for the achievement of organizational
goals.
The function of organizing is to arrange, direct, coordinate, and control the
activities of an enterprise. In other words, organizing is the function through
which management directs, coordinates, and controls business operations.

 Referent

 https://businessjargons.com/organizing.html
 https://www.economicsdiscussion.net/management/organizing/what-is-
organizing-in-management/32438
 https://courses.lumenlearning.com/wmopen-
introbusiness/chapter/organizing/
 https://courses.lumenlearning.com/wmopen-
introbusiness/chapter/organizing/
 https://www.licenter.org/blog/2019/2/12/5-reasons-why-being-organized-
is-important-for-business-owners