Organizing a business involves assigning activities and grouping people into an organizational structure to accomplish objectives. The arrangement of work, or organization structure, requires clear objectives and coordination across the organization. Objectives must be specific, challenging and provide meaning and direction, while coordination ensures alignment between organizational, departmental, subunit and individual goals through teamwork. Both formal and informal organization structures emerge, with the formal structure designed by management and displayed in charts, and the informal comprising relationships between employees.

1. ORGANIZING THE
BUSINESS

2. ORGANIZE
Organizing is the management function of
assigning activities and grouping people
(Designing and Developing a Blueprint or
structure) so that the firm’s objectives can be
accomplished.

3. Organization Structure
The arrangement of work to be done in a
business. Managers need to keep the following
issues in mind when organizing the business:
1. Clear Objectives
2. Coordination

4. Organization Structure
Clear Objectives
=> Clearly stated, meaningful, specific, and
challenging.
• The objectives must give meaning to the
business and what it is attempting to
accomplish.
• The objectives could be multiple (Like, profit,
market share, human resource development) of
a business that provides the direction for those
organizing the firm.

5. Organization Structure
Coordination
• Coordination must be in Organizational,
Departmental, Subunit and Individual
Objectives.
• They all must fit together. Team Work must be
there. Should not underestimate the group
members.

6. Formal and
Informal Organizations

7. Formal Organization
• The management designed official structure of
the business.
• The formal organization is displayed in the
organization chart, the graphical representation
of the formal structure of the business

8. Informal Organization
The network of personal and social
relationships that emerges when people
work together.