The organizing function is the management process of identifying or establishing jobs, positions and chain of command. Organization should facilitate the communication needed to make good decisions at all levels of the operation. Organizing is also inventorying physical and financial resources, identifying skills and talents among employees, and physically arraying these resources for efficient use. How the business is organized is fundamental to communication within the business, the delegation of authority, the risk management plan of the overall business, and the process of supporting good decisions. The whole point of organization and organizational charts is to make the operation run smoothly and efficiently.
Every decision made by any manager is based on information.
The business organization provides for information flow. Note that in each example there is a two way flow. Lead the group in developing an organizational chart for their businesses. Staffing and directing is personnel management. Staffing is the process of identifying and placing people in positions, while directing involves identifying employee strengths and weaknesses, and matching positions with the most suitable personnel.