Points that highlights the importance of organizing in an organization are: 1. Benefits of Specialization 2. Clarity in Working Relationships 3. Optimum Utilization of Resources 4. Adaptation to Changes 5. Effective Administration 6. Development of Personnel 7. Expansion and Growth.

Organising helps in the smooth functioning of a business in accordance with the dynamic business environment.

It helps in the growth and survival of an enterprise and enables it to meet various challenges.


The following points highlight the importance of organising in an organisation:

1. Benefits of Specialization:

Under organising, the whole work is systematically allocated and divided into different parts. Right man is put at the right job. It increases the efficiency of workers and motivates them to put their best into the work. Repetitive performance of a specific job on a regular basis helps a worker gain experience and gets specialized in that job. As a result, organising leads to specialization.

2. Clarity in Working Relationships:

Organising helps in establishing working relationship and clearly defines the lines of communication and also specifies who is to report to whom. This further helps in fixation of responsibility and also specifies the dimensions of authority which an individual can exercise.

3. Optimum Utilization of Resources:

Organising provides fuller and efficient use of all human, physical and financial resources. Proper allocation of jobs helps in avoiding overlapping of work and ensures optimum use of resources without any wastage.

4. Adaptation to Changes:


Organising helps business enterprises to adjust to the environmental changes. In order to ensure smooth functioning of the enterprise, organising suitably modifies the organisational structure and various inter-relationships existing in the enterprise. Moreover, it also provides stability in the enterprise so that it continues to grow and survive inspite of changes.

5. Effective Administration:

Organising helps in bringing about administrative efficiency because:

(i) It leads to specialization which brings effectiveness in administration.

(ii) It clarifies centres of authority & power and thus results in proper execution of work.


(iii) It provides a clear description of jobs and related duties which results in avoiding duplication of work.

6. Development of Personnel:

Organising creates structure of an organisation. That structure provides a basis or framework for assigning and performing various functions efficiently. Effective delegation allows managers to assign jobs of routine nature to their subordinates.

The reduction in workload enables the managers to develop new methods and techniques of performing the jobs efficiently and to explore new areas for the growth of an organisation. On the other hand, delegation develops an ability among the subordinates to deal effectively with the challenges and also helps them grow to realize their full potential.

7. Expansion and Growth:

Organising promotes growth and diversification of an enterprise. It enables the enterprise to take up new challenges e.g. more job positions, departments, new product lines and also new geographical territories etc. for increasing sales and profit.