Question

Six Mark Question:
With the help of any four points, explain the crucial role that organising plays in an enterprise.

Answer 1

Organizing is the process of defining and grouping activities and establishing authority relationships among them.

The organizing function helps in the growth and survival of an enterprise in a dynamic environment by providing the following benefits:

Benefits of Specialization

1-It facilitates the systematic allocation of work. This reduces the workload as well as enhances productivity, as each task is repetitively performed by a worker which helps him to gain experience and attain specialization.

Clarity in Working Relationships

2-The establishment of working relationships clarifies the lines of communication and specifies who is accountable to whom.

Thus, there is no confusion regarding the performance of work, fixation of responsibility and communication.

3-Optimum Utilization of Resources

It leads to proper usage of all materials, financial and human resources by proper assignment of jobs. Assignment of jobs to workers reduces duplication of work, prevents confusion, minimizes wastages and allows the best possible use of resources.

4-Adaptation to Change

It facilitates modification in organizational structure and revision of inter-relationships among people in order to adapt to environmental changes.

It also helps to provide stability and growth, despite external changes occurring in the business environment.

5-Effective Administration

It gives a clear description of the duties and responsibilities of each individual. This helps to avoid confusion regarding work and avoids duplication of activities. Thus, it helps in bringing efficiency in administration.

6-Development of Personnel

It stimulates creativity amongst the managers. Effective delegation allows the managers to reduce their workload by assigning routine jobs to their subordinates.

This helps subordinates to develop newer skills and - ability to deal effectively with emerging challenges. Thus, it helps in the development of personnel.

7-Expansion and Growth

It helps in the growth and diversification of an enterprise by adding more, job positions, departments and new lines of product.

This helps in increasing sales volume and profits of the enterprise.