2. Theo Haiman --
“Organizing is the process of defining and grouping the
activities of the enterprise and establishing the authority
relationship among them.”
3. Nature of Organizing
● Identification of activities
● Grouping of activities
● Accumulation of resources
● Defining hierarchy of positions
● Assignment of jobs
● Establishing authority and responsibility relationship
● Evaluation of performance
4. Identification of Activities
● Enterprise must perform different activities to achieve
definite objectives.
● It is one of important component of organizing
● The activities of enterprise depend on its nature and size.
5. Grouping of Activities
● Identified activities must be classified on the basis of
common nature and should be put at one group or
subgroup.
● Involves creating departments and sections for specific
works such as production, marketing, finance, human
resources etc.
● Department may be sub divided into sections and
individual jobs.
● It is helpful to maintain coordination and exercise control
over activities.
6. Accumulation of Resources
● Resources are essential for smooth functioning of an
enterprise.
● Resources involve manpower, materials, machines,
money, technology etc.
● Availabitity of needet resources facilitate for uniform and
smooth performance of the enterprise which if supportive
to produce quality products and to provide quality service
in time.
7. Defining Hierarchy of Position
● Hierarchy of authority is formed on the basis of degree of
responsibility and accountability.
● It clarifies the role of each individual from top to the
subordinate level.
● Higher level job needs more skill, experience and
responsibility.
● Chain of command is implemented to see the progress of
work of respective subordinates.
8. Assignment of jobs
● Total works of an enterprise is divided into small units on
the basis of their common nature.
● Each work is assigned to different individuals on the basis
of their skill, ability and experience.
● Assignment of right jobs to the right persons developss the
practice of specialization and efficiency among them.
● Minimizes wastage of materials, breakdown of machines
and equipments and supervision cost.
9. Establishing Authority and
Reponsibility Relationship
● For systematic functioning of managerial function it is
essential to establish authority and responsibility
relationship of all the employees from top level to
subordinate levels.
● Job responsibility should be given to the employees on the
basis of their skill and efficiency.
● ~ly, proper authority should be given on the basis of level
of responsibility.
10. Evaluation of Performance
● Organizing involves evaluation of actual performance
achieved within stipulated time.
● After implementation of plan it is essential to evaluate
actual work completed.
● Facilitates to compare acutal work completed with planned
estimation and to take corrective measures if actual work
completed it not in accordance of planned work.
● It is helpful to meet determined objectives within time
defined