importance of organization or its merits becomes clear from the following Organization is an instrument that defines relations among different people which helps them to understand as in who happens to be their superior and who is their subordinate. In this article, you are going to discover the importance of management in any organization by looking into each of these aspects. Advantages and Disadvantages of Functional Organisation 4. In addition, local governments are able to share statistics and progress reports with council members and the community. people which helps them to understand as in who happens to be their superior It is the process of organizing groups and sub-divide the various activities and jobs based on the concept of division of labor. This information helps in fixing responsibility and developing coordination. Organization is the In this sense, the management of business processes has become even more important, especially in sectors such as retail, distribution and electronic commerce. Organizing helps ineffective communication among the employees and management of the organization. It is the process of establishing orderly uses for all resources within the management system of the organization. human and material resources of an enterprise becomes possible. As such employees may belong to a particular functional group but may contribute to a team that supports another program. A matrix structure is organized to manage multiple dimensions. A plan, on the other hand, helps a manager organize resources and activities efficiently and effectively to achieve goals. Copyright © 2018-2021 BrainKart.com; All Rights Reserved. Disclaimer 9. Sound organizing function helps the management in many ways. This is one of the most important benefits, because having the data readily available and clearly communicating it builds trust in the organization. But the benefits of project management don’t end there. Furthermore since each job is well described in terms of qualifications and duties, the promotional stages can be more clearly established. the decision-making. Facilitates Growth and Diversification: a decent organization structure is important for increasing commercial activity. This helps in the completion of maximum work in minimum time ensuring the benefit … (BS) Developed by Therithal info, Chennai. It is a mechanism of management which is shown by specialization, division of labour, transparency in work, adaptability, effective administration and most of all by eminent leadership at work with the required skill. ADVERTISEMENTS: After reading this article you will learn about the advantages and disadvantages of different types of organisation:- 1. The purpose of an organization structure is to establish a form so that they may better work together to achieve the enterprises objectives. Duplication exists when work distribution is not clearly identified and the work is performed in a haphazard and disorganized way. Therefore, organizational function helps in achievement of results which in fact is important for the functioning of a concern. The 1. It leads to efficient information exchan… Before publishing your articles on this site, please read the following pages: 1. For example, if an employee possesses the knowledge of modem machinery of the organization, coordination In order to meet the increasing demand This type of structure brings together employees and managers across departments to work toward accomplishing common organizational objectives. Plagiarism Prevention 4. Financial Benefits . A good and balanced organization helps the Elizabeth Scott, MS. twitter ; Elizabeth Scott, MS, is a wellness coach specializing in stress management and quality of life, and the author of "8 Keys to Stress Management." only medium which makes coordination possible. It results in traceability of outcomes and the work interdependency of that particular task is reduced to a minimum. Sound Communication Possible: Communication is essential for taking the right the establishment of relations which, in turn, increases coordination. That is why, it is said that … Inter-dependence gives rise to The runarounds occur when we do not know who is responsible for what and we are not sent to the right people in the first instance for getting some work done. managers to increase their Because of a sense of belonging and high morale that a well-structured organization develops among employees and also because of clear-cut accountability, recognition of skill and appreciation for their contribution towards organizational growth, the employees develop their own initiative and a spirit of innovation and creativity. for its products an organization has to expand its business. Effective and efficient administration: The organizing function defines the various activities and authority relationships in the organizational structure. Since a good organizational structure requires that the duties be clearly defined and assigned, such duplication of work is eliminated. However, in a well organized company where the responsibilities are clearly established, this does not occur. Since the organizational chart clearly pinpoints the positions of individuals relative to one another, it is easier to know as to which level a person has reached at any given time in the organizational hierarchy. a good organization has an element of flexibility which far from impeding the This is because planning affords benefits that make an organization competitive and efficient. Since the goals are clearly established and resources clearly identified, both short term as well as strategic planning becomes more focused and realistic and such planning contains the provision to permit changes to be made in the right direction including expansion and contraction of facilities, operations and activities when it becomes necessary. For example, it helps to avoid confusion about the efforts. Image Courtesy : images.flatworldknowledge.com/carpenter/carpenter-fig07_001.jpg. work repeatedly they become specialists. When, Important Short Questions and Answers: Principles of Management - Planning, Strategy formulation and implementation process, Decision making process: Problem Analysis vs Decision Making, Formal and Informal Organization: Characteristic Features, Advantages and Disadvantages, Differences Between Formal and Informal Organization, Line and Staff authority: Types, Features, Advantages and Disadvantages, Departmentation: Various patterns, Advantages and Disadvantages, Span of control: Factors Affecting, Advantages and Disadvantages. Organization focuses attention of individual’s objectives towards overall objectives. Some of the benefits of organizing include the following: 1. Importance or Significance of a Sound Organizational Structure! (2) Proper Utilization of Resources: Through the medium of organization optimum distribution of the whole work among different people according to their Some of the beneficial outcomes of optimally designed organizational structures are: While there are many different structures that organizations can adopt, depending upon the type of organization including whether it is a service organization or a manufacturing organization, a well structured organization has many benefits. It helps in avoiding confusion and delays, as well as duplication of work and overlapping of effort. Decide how achieve coordination 4. Well defined jobs - Organizational structure helps in putting right men on right job which can be done by selecting people for various departments according to their qualifications, skill and experience. Advantages and Disadvantages of Line Organisation 2. The process of organizing involves evaluating and understanding that which you are organizing to create a system to be able to locate what resource is needed with the most efficiency relative to the task. Image Guidelines 5. Adaptation to Changes 5. Optimum Utilization of Resources 4. IMPORTANCE OR ADVANTAGES OF ORGANIZING . This information helps in fixing responsibility Development of Personnel 7. Learn about our editorial process. Managers, through the medium of organization, make a proper Competent (1) Increase In Managerial Efficiency: A good and balanced organization helps the Determine what is to be done 2. IMPORTANCE OR ADVANTAGES OF ORGANIZING Organization is an instrument that defines relations among different people which helps them to understand as in who happens to be their superior and who is their subordinate. It is a function in which the synchronization and combination of human, physical, financial, and information resources takes place for the achievement of the results. Work is Some of the benefits of organizing include the following: 1. all the useful information reaches the officers concerned which. Effective Administration 6. Besides helping firms avoid financial demise, strategic management offers other tangible benefits, such as an enhanced awareness of external threats, an improved understanding of competitors’ strategies, increased employee productivity, reduced resistance to change and a clearer understanding of performance-rewardrelationships. In such circumstances the objectives of the organization can be easily achieved. specialization. According to The greatest advantage of organizing information within a company is the efficiency of the resources. An employee is given sufficient freedom within the domain of his responsibility and his authority. Creating coordination horizontally and vertically in the enterprise structure The purpose of organizing function of managemen… Expansion and Growth. Privacy Policy 8. Organizations that do not plan are at a major disadvantage when compared to businesses that do plan. of work is made in such a manner as to make all the activities complementary to When senior management and employees are sharing the same information, there is better communication between them to identify problem areas and find mutually agreeable solutions. Advantages and Disadvantages of Committee Organisation. Content Filtrations 6. Apart from the positive impact on time management, organizing … That is why, it is said that Organization Copyright 10. As already elaborated efficient organizing involves putting together the right things at the right places and sticking it all together to get the job done. decision at the right time. An organized professional will spend less time correcting mistakes, searching for information and fixing any clutter. On the other hand, but the modem machinery is not available in the organization, in that case, Decide on a span of management 5. 2. Helpful in Expansion: A good organization helps the enterprise in expansion work encourages it. 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. Organizing is a step towards effective management. Some of the beneficial outcomes of optimally designed organizational structures are: While there are many different structures that organizations can adopt, depending upon the type of organization including whether it is a service organization or a manufacturing organization, a well structured organization has many benefits. allotted to every individual according to his ability and capacity and While the planning function of managers is essential to reaching business goals, lots of careful planning can go to waste if managers fail to organize the company’s assets and resources adequately. While the planning function of managers is essential to reaching business goals, lots of careful planning can go to waste if managers fail to organize the company’s assets and resources adequately. Is a mechanism of management. in turn, helps functions of management like planning, staffing, leading, controlling, etc. facts. 5 Benefits of Project Planning and Management. This information helps in fixing responsibility and developing coordination. the establishment of a good communication system is possible only through an These are planning, organizing, staffing, directing, and controlling. Organization is an instrument that defines relations among different people which helps them to understand as in who happens to be their superior and who is their subordinate. into different parts. Without a plan, managers are set up to encounter errors, waste, and delays. Under organization the division To answer this question, we need to go back to the drawing board – to the essential functions of management. Believe that these benefits of strategic management are enough to encourage people to hire a special team of strategist for the planning of their business. Organizing ensures effective role-job-fit for every employee in the organization. Organizing is the function of management which follows planning. A good organizational structure is es… facing competition. facing competition. When an Click to download our Free Project Plan Template in Excel to begin simplifying your project management. utilization, Communication is essential for taking the right persons are appointed to handle all the sub-works and by handling a particular Organizing is a management function which follows planning. managers, Through the medium of organization optimum conditions ant created to enable him to utilize his ability to the maximum Elizabeth Scott, MS. and developing coordination. All resources ranging from the most important human resources to … It is a function in which the synchronization and combination of human, physical and financial resources takes place. Performance of the organizing function can pave the way for a smooth transition of the enterprise in accordance with the dynamic business environment. In such circumstances the Organizing – A Management Function. Such systematic structures lead to better coordination among the teams and departments therefore helping in the overall development of … Importance of Organizing. This is helping in defining the jobs properly which clarifies the role of every person. of the organization, Under organization the whole work is divided This enables them to have maximum work Since each person is assigned a particular job to perform, the responsibility of performing that job rests solely with him. 2. Benefits of Specialization 2. 6 benefits of organizing management processes with cloud ERP Today, with the coronavirus pandemic, companies face several challenges to continue their businesses. Organizing in an organization helps in defining the roles of every person and therefore defines the hierarchy in the organization in a better manner. into different, A good organization helps the enterprise in When an organization plans well, employees at all levels know what the vision of the company is. Organization is an instrument that defines relations among different organization. The time saved means more time for doing productive things and more resources for other projects, therefore more money. Without proper documentation, you could be at risk for lawsuits or other legal issues if a terminated employee sues your business for unlawful termination or discrimination. If these requirements are clearly established and the yearly increments or the cost of living increments for each type of job are properly and clearly understood, then compensation administration policies are easier to implement. Recognizing the Advantages of Planning The military saying, “If you fail to plan, you plan to fail,” is very true. Importance of Organizing Function of Management Optimum Resource Utilization. Benefits Specialization. Assigning tasks 3. Fact checked by. organization can be easily achieved. efforts are made to make available the modem machinery. among various activities in the organization is essential. The assignment of each group to a manage with authority necessary to supervise it 3. ability. Study Material, Lecturing Notes, Assignment, Reference, Wiki description explanation, brief detail. Benefits of Strategic Management. Organizing is the function of management which follows planning. However, Clarity in Working Relationships 3. However, to be successful with this action, it is essential to invest in items that are attractive to employees, such as food stamps, health insurance, and scholarships. A good organizational structure is es… Personnel management is a process of maintaining and organizing the workerÕs welfare in order to create efficient and successful operations within an organization. Since the lines of communication and flow of authority are clearly identified on the organizational chart, the inter­communication is both clearer and easier and it eliminates ambiguity. It has a built-in system of “checks and balances” so that the progress towards the attainment of objectives is evaluated along the way so that any required adjustments can be made and any new decisions required can be taken. Employee reviews and other employee performance documentation help protect your business and ensure that you’re following all necessary and relevant laws. Prohibited Content 3. Strategic management enhances the problem-prevention capabilities of organizations because it promotes interaction among managers at all divisional and functional levels… utilization of all the available enterprise starts making available good quality product at cheap rates, it Below is the list of important benefits of Strategic Management that must be in your knowledge while developing a plan for your business. for example, the responsibility of completion of a project successfully is on the project manager and it is the responsibility of the project manager to update the top management about the progress of the work regularly and make them aware of the shortcomings that they are facing. The importance of organizing is as under: Advantage of Specialization: Organizing helps in the classification of jobs systematically amongst the workforce, which helps in the reduction of workload, as well as improved productivity. 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