Organizing

The organizing function has to do with structuring the business and the jobs that work toward the goals the business is setting out to accomplish. You may do this structuring in your household, where each family member has certain responsibilities, and there may be a reporting relationship so that each member knows whom to report to with respect to their accomplishment or lack thereof. If one were to chart this, "Mom" or "Dad" would be in a box at the top, and the names of the children would be in boxes underneath and have a direct-line relationship to either Mom or Dad.

Obviously, most businesses have more than a few people, so the representation of the structure of the firm and decisions related to how it is organized become extremely important to the success of the firm. Organizing is important because it helps prevent duplication of tasks, which can be a cause for inefficiencies within the organization.