In this video, we're going to talk a little bit about organizations and the organizing process. An organization is a group of people who work together toward common goals. An organization is also the structure that strengthens the ability of people to work more effectively together in pursuing common objectives. Organizations exist because of group of people working together can achieve more than one person working alone. Members of an organization often look to it as a source of personal satisfaction such as companionship, accomplishment and status. Firms organized because without some sort of organization to work place would be total chaos. The overriding value of an organization is its ability to make more of effective use of human resources. Employees working together in a sensible organizational structure have a greater sense of purpose in teamwork and accomplish more than employees in disjointed organizations. So are all organizations formal? No, they're not far from it. Informal organizations or groups often exist within formal organizations like corporations. As a general rule, whenever there are 15 or more workers at the same level, there will be some sort of informal organization with its own norms for how members should behave. A norm is a standard of social behavior that is typical or expected of a group. For example, at apartment may have norms that dictate members will always be 15 minutes early for every meeting. Anyone showing up later than that would be reprimanded by the group in some way. An organizational system works best when formal and informal organizations are blended together. It's easy to see why that is the case. A corporation would benefit greatly from having an informal group of employees who take pride in never being late for clocking out early. In our personal lives, organizing means putting things into some sort of structure order, whether it's cleaning up your inbox by putting emails and folders, or straightening up your desk, you probably organize things all the time. Then in a business sense, organizing is a little more specific. Organizing is the process of analyzing and arranging the pattern of work relationships that allow members to collaborate and coordinate to meet organizational goals. Among the five basic management functions, planning always comes first and organizing should always come second. Organizing follows planning because the organizational structure provides the framework for carrying out the plan. During the organizing process managers coordinate employees, resources, policies and procedures to facilitate the goals identified in the plan. The basic goal of the organizing process is to establish a systematic division of work that will enable the organization to meet its goals. Think of it this way, imagine you are a general who's about to attack the enemy. First, you plan what you want your forces to do, and then you organize them to carry out the plan. You can't succeed without doing both in order. The organizing process follow these steps which should be performed in order. First, identify all of the important tasks that must be performed to accomplish organizational objectives. Next, divide the tasks in some units that can be performed by one person. Each unit or group of activities is called a job. Third group related and similar jobs together logically and put them in one department. This departmentation or grouping of jobs can be done in different ways which will talk about a little later on. In the fourth step, relationships are established between the various jobs in groups of jobs so that everyone knows what they're responsible for. An important part of this stage is assigning each individual the authority they need to perform their job. Assigning authority creates superior subordinate relationships and clarifies who reports to whom. This in turn creates a manager or hierarchy or chain of command for the organization.