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Organizing includes the allocation of tasks to staff, preparing resources needed for implementation and the creation of appropriate conditions for individual and team work in the organization. An important activity related to the function of the organization is to select and design the organizational structure.

Shaping of the organizational structure[edit]

Shaping the organizational structure of the company includes the following six components:

  • Workplace design - a definition of the tasks and responsibilities of the employee, or the scope of its expertise,
  • Grouping of jobs - joining in a logical and efficient way of workplaces and employees. It is the creation of divisions or departments, by aggregation of similar activities.
  • Establishing chain of command - that is, to determine the relationship of subordination between the different positions,
  • Separation of powers between the different positions - a determination of power between superiors and subordinates, establishing the range of power and delegation of responsibilities (tasks)
  • Coordination of activities - the process of integrating the tasks and activities of separate organizational units in order to efficiently achieve the objectives,
  • Differentiation of positions - creating clear distinction between linear and staff positions.

Organizing involves selection of appropriate conditions and measures, and their proper place in space and time. This process is related to the creation and improvement of the functioning of companies, is a continuous, permanent in nature and encompasses organizational structure and organizational processes, often requires high level of formalization.

Formalization involves determining patterns of human behaviour in the organization, regardless of whether it is working alone or in groups. It is a process in which all the goals and structure of organized activities in a way is documented in written and graphic form and communicated to employees.

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