Once a plan has been established, managers must decide how to allocate human, physical, and economic resources within the organization to achieve organizational objectives with minimal expenditure. These steps, which are performed by a manager, refers to the organizing function.
Organizing is usually done in three distinct steps. First, managers must create an organizational structure or chain of command. The chain of command details the hierarchical relationship of reporting employees in the organization. This is normally presented as an organizational chart. In this stage, human capital is distributed throughout the organization depending on their skills, knowledge, or experience. The second stage of the organizing function is known as organization design. In this stage, managers define the structure of the organization in terms of departments. Managers must decide what is the best way to group or classify jobs into departments that will results in improved efficiency, employee productivity, and meet organizational objectives. There are several different ways to departmentalize jobs within an organization, such as geographical locations, functions, products, or consumer-base.
The final stage of organizing is known as job design. Job design is the way that an individual job or a set of tasks is organized to achieve specific objectives. It determines the responsibilities of a particular job: what the job entails, how it is done, the order in which it is done, etc. In the past, job design focused on dividing labor and specialization. However, modern management studies have shown that job design that considers the welfare of employees is more effective in enhancing the well-being and performance of company employees (Daniel et al., 2017). Google is one company that showcases the credibility of this assertion.
Leading calls for managers to influence and motivate their employees. Effective managers inspire their employees to be enthusiastic about working towards achieving organizational goals. Ideally, a manager who is also a good leader can inspire others to take actions that will positively impact the organization and pave way for the company to achieve its objectives.
Leadership within an organization is a social and informal exertion of influence. Whereas directing is telling employees how to perform their duties accurately, leadership is about inspiring them to do it. To be an effective leader, managers must first understand the attitudes, perspectives, personalities, values, emotions, and motivations of their employees. Studies into motivation and motivation theories could be a good place for managers to start when they want answers to questions such as ‘Who is a Good Manager?’ and ‘When are Specific Leadership Styles Appropriate?’