Organizing involves determining, grouping, and arranging activities to achieve objectives. It defines activities and establishes authority relationships through departmentalization based on functions. An organizational chart illustrates all positions and their formal reporting relationships. Centralization concentrates decision-making at higher levels while decentralization delegates authority lower down. Span of control refers to the number of employees a manager can effectively oversee. Authority is the right to perform tasks while responsibility is the obligation to do so. Both formal and informal organization structures exist within a company.

1. FUNCTION OF
ORGANIZING

2.  It is the process of:
 determining
 grouping
 arranging of various activities
necessary for the achievement of
objectives

3.  It is the process of:
 defining and
 grouping the activities of the enterprise
and
 establishing authority relationship among
them.

4.  Helps management to be effective.
 Helps the organization (company) to grow
and expand.
 Helps in maximum use of resources.
 Helps in development in the lower level of
management.

5.  Identification and Division of
Work
 Based on specialization
 Departmentation
 Based on functions
 Assigning of Duties
 Based on workers’ efficiency
 Establishing Reporting
Relationships
 Who is my boss? To whom should
I report?

6.  Shows all the positions in an organization and
their formal relationships to one another.
 It is illustrated in the form of an
ORGANIZATIONAL CHART.

7.  Centralization
 Concentration of authority of decision
making at higher or top levels of
management.
 Decentralization
 Systematic effort to delegate to the lowest
levels all authority except that which can
only be exercised at central points.

8.  Also called as “Span of Control”.
 It is the span of supervision which depicts
(shows) the number of employees that can be
handled and controlled effectively by a single
manager.
 Types of Span of Control:
 Wide Span of Control – a manager can supervise
and control effectively a large group of persons at
one time.
 Narrow Span of Control – the work and authority is
divided amongst many subordinates and a
manager does not supervise and control a very
big group of people under him.

9.  Authority
 Right to perform or command.
 Responsibility
 Obligation to perform assigned
activities
 Related to ACCOUNTABILITY.

10.  Involves the assignment to others of the
authority for particular functions, tasks, and
decisions.

11.  Employees at all levels in the organization are
given the power to do their job.
 Closely linked to MOTIVATION and CUSTOMER
SERVICE
 Giving authority to make decisions to front-line
staff.
 Encouraging employee feedback.

12.  Formal
 Refers to a structure of well-
defined jobs each bearing a
measure of authority and
responsibility.
 Has a formal set up to achieve
pre-determined goals.
 Informal
 Refers to a network of personal
and social relationships which
spontaneously (naturally)
originates within the formal set
up.
 Emerges from the formal
organization and it is not based
on any rules and regulations.