Once plans are formulated, the next step is that of organizing. Organizing is the process of establishing harmonious authority-respon­sibility relationships among the members of the enterprise.

The network of authority-responsibility relationships is known as organization struc­ture. Such a structure serves as the framework within which people can work together effectively for the accomplishment of common objectives.

Organizing is an important element of management because it is through organizing that a manager brings together the material and human resources required for the achievement of desired goals. Accord­ing to Fayol “to organize a business is to provide it with everything useful to its functioning—raw materials, tools, capital and personnel.”

Accord­ing to Oliver Sheldon “organization is the process of so combining the work which individuals and groups have to perform with the facilities necessary for its execution that the duties so performed provide the best channels for the efficient, systematic, positive and coordinated applica­tion of available efforts.”


A sound organization helps to avoid duplica­tion of work and overlapping of effort. However, an organization struc­ture is not an end in itself. It should, therefore, be designed to fit into the needs and objectives of the particular enterprise.

The process of organizing consists of the following steps:

(a) determining and defining the activities required for the achieve­ment of organizational goals;

(b)grouping the activities into logical and convenient units;


(c) assigning the duties and activities to specific positions and people;

(d) delegating authority to these positions and people;

(e) fixing responsibility for performance; and

(f) Coordinating horizontal and vertical relationships throughout
the organizations.


Thus, organizing is the process by which the structure and alloca­tion of-jobs are determined.