It involves designing, structuring, and coordinating the work components to achieve organizational goal. It is the process of determining what tasks are to be done, who is to do, how the tasks are to be grouped, who reports to whom, and where decisions are to be made. A key issue in accomplishing the goals identified in the planning process is structuring the work of the organization. Organizations are groups of people, with ideas and resources, working toward common goals. The purpose of the organizing function is to make the best use of the organization's resources to achieve organizational goals. Organizational structure is the formal decision-making framework by which job tasks are divided, grouped, and coordinated. Formalization is an important aspect of structure. It is the extent to which the units of the organization are explicitly defined and its policies, procedures, and goals are clearly stated. It is the official organizational structure conceived and built by top management. The formal organization can be seen and represented in chart form. An organization chart displays the organizational structure and shows job titles, lines of authority, and relationships between departments.
The steps in the organizing process include:
1. Review plans
2. List all tasks to be accomplished
3. Divide tasks into groups one person can accomplish a job
4. Group related jobs together in a logical and efficient manner
5. Assign work to individuals
6. Delegate authority to establish relationships between jobs and groups of
jobs.