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Nature of Organizing

These are some important nature of organizing explained below:

1. Process
2. Structure
3. Dividing and Grouping Activities
4. Accomplishment of Goals
5. Authority Responsibility Relationship
6. Human and Material Aspects

Process

The organization is a process of defining, arranging, and grouping the activities of an enterprise and establishing the authority relationships among the persons performing these activities. It is the framework within which people associate for the attainment of an objective.

The framework provides the means for assigning activities to various parts and identifying the relative authorities and responsibilities of those parts. In simple terms, the organization is the process by which the chief executive, as a leader, groups his men in order to get the work done.

Structure

The function of organizing is the creation of a structural framework of duties and responsibilities to be performed by a group of people for the attainment of the objectives of the concern. The organizational structure consists of a series of relationships at all levels of authority.

An organization as a structure contains an “identifiable group of people contributing their efforts towards the attainment of goals.” It is an important function of management to organize the enterprise by grouping the activities necessary to carry out the plans into administrative units, and defining the relationships among the executives and workers in such units.

Dividing and Grouping Activities

Organizing means the way in which the parts of an enterprise are put into working order. In doing such, it calls for the determination of parts and integration of one complete whole into the other. In fact, the organization is a process of dividing and combining the activities of an enterprise.

Activities of an enterprise are required to be distributed between the departments, units, or sections as well as between the persons for securing the benefits of division of labor and specialization, and are to be integrated or combined for giving them a commonness of purpose.

L. Urwick defines an organization as: ‘determining what activities are necessary to any purpose and arranging them as groups which may be assigned to the individual.

Accomplishment of Goals

An organizational structure has no meaning or purpose unless it is built around certain clear-cut goals or objectives. In fact, an organizational structure is built-up precisely because it is the ideal way of making a rational pursuit of objectives.

Haney defines an organization as: “a harmonious adjustment of specialized parts for the accomplishment of some common purpose or purposes”.

Authority Responsibility Relationship

An organization structure consists of various positions arranged in a hierarchy with a clear definition of the authority and responsibility associated with each of these.

An enterprise cannot serve specific purposes or goals unless some positions are placed above others and given authority to bind them by their decisions. In fact, the organization is quite often defined as a structure of authority-responsibility relationships.

Human and Material Aspects

The organization deals with the human and material factors in business. The human element is the most important element in an organization. To accomplish the task of building up a sound organization, it is essential to prepare an outline of the organization which is logical and simple.

The manager should then try to fit in suitable men. Henry Fayol says in this connection: “see that human and material organization are suitable” and “ensure material and human order”.

From these features of organization, it emerges that an organization is essentially an administrative ‘process’ of determining what activities are necessary to be performed for the achievement of objectives of an enterprise, dividing and grouping the work into individual jobs

A ‘structure’ of positions arranged in a hierarchy with defined relationships of authority and responsibility among the executives and workers performing these tasks for the most effective pursuit of common goals of the enterprise.

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