IMPORTANCE OF ORGANISING

The organisation is one of the most important functions of management. In the language of business and management, they are the relationships built between the people, tasks, and resources. They thus are used to achieve the overall goal or goals of the organisation as a whole.. This is an important part of the commerce topic, so if you want to know more about the importance of business organisation for your notes, read these notes all the way through.

What is the meaning of organising?

An Organisation is a procedure of grouping and identifying the work that has to be defined, performing and delegating authority and responsibility and initiating the relationships to enable different people to work most effectively in a group or together to accomplish the target.

According to Henry Fayol, “organising a business means providing everything useful for its smooth functioning such as personnel, raw material, capital and tools.

Importance Steps of Organisation Process

After understanding what organisation now is the time to reveal the organisational process. According to the class syllabus, the organisational process consists of 4 crucial steps:-

• Division and Identification of work 
• Departmentalisation 
• Establishing reporting relationships
• Assignment of duties

So, let us discuss the points mentioned above briefly.

1. Division and Identification of work: The whole task to be performed must be divided into specific tasks according to a predetermined plan. 

Task = A set of related work that a person can perform. It should be definite. He should define the expected outcome and the task as much as possible. 

– Division of work → Specialisation of effort and technology + Avoid duplication of work. 

 – Management must ensure that all activities necessary to achieve the organisation’s objectives are identified.

2. Departmentalisation: Departments must be further divided into divisions, sections, or wings, and placed under the direction of the department head for organised management. This makes specialisation easier. Departments are interconnected and interdependent with each other. – Aims to achieve coordination and promote the integration of behaviour. Delegation can be done based on:

• Functions: personnel, marketing, finance etc.  
• Products: chemicals, Textiles, power division etc.  
• Territories: northern, central, western, eastern etc.

3. Assigning Duties: – Define the responsibilities of various job positions and assign tasks accordingly.

• Once a department has been constituted, it delegates the charge to a certain person.
• Jobs should be assigned based on qualification and skills.
• People’s qualifications, experience, ability, and aptitudes should match their responsibilities.

For example, financial activities should be allocated to individuals with financial qualifications and experience, such as C.A.s.

4. Establishing Reporting Relationships: – Granting the requisite power to the competent authorities to perform their job. Superior, subordinate relationships between various persons and job positions are established so that everyone understands who to take commands from and who to issue orders. It creates a management hierarchy (i.e., a chain of command from the top manager to the lowest level employee). This facilitates coordination.

What is the importance of a business organisation?

The various importance of organisation are mentioned below:-

1. Benefits of specialisation: Each individual is assigned a portion of the whole task, not the entire task. This division of labour becomes a smaller unit, and repetitive work leads to specialisation. In this way, organisations encourage specialisation, which leads to efficient and rapid task completion.

2. Clarity in a working relationship: It helps create well-defined jobs and clarify the limits of authority and responsibility of each job. 

3. Effective Administration: It provides a clear description of jobs and related duties, which helps to avoid confusion and duplication. The clarity in working relationships enables the proper execution of work, resulting in an effective administration. 

4. Optimal use of resources: The correct assignment of tasks avoids duplicate / double work. Correct assignment of work avoids confusion and minimises wasted resources and effort.

5. Adapt to change: A well-designed organisational structure is flexible and facilitates adaptability to workload changes caused by changes in the external environment from a technology, product, resource, and market perspective.

6. Human Resources Development: A good organisation promotes employee initiative and relative thinking. When an administrator delegates authority, it reduces the workload and allows you to focus on more important issues related to growth and innovation. This also develops the skills of his subordinates and helps him reach his full potential.  

7. Expansion and growth: It helps in the growth & diversification of an enterprise by adding more job positions, product lines, departments, new geographical territories etc.

Conclusion

In the above chapter, we have studied the importance of organisation as organising a business providing everything useful for its smooth functioning such as personnel, raw material, capital and tools. We also learnt that the major steps to step up an organised business are Division and Identification of work, Departmentalisation, Establishing reporting relationships, and assignment of duties. The organisation has to follow curtains protocols for easy and smooth business flow. There is an important organisational behaviour of a business as it helps us predict and understand the life and future of an organisation.