1. Benefits of specialization: In organizing every individual is assigned a
part of total work and not the whole task. This division of work into smaller
units and repetitive performance leads to specialization. Thus organizing
promotes specialisation which in turn leads to efficient & speedy
performance of tasks.
2. Clarity in working relationship: It helps in creating well defined jobs and
also clarifying the limits of authority and responsibility of each job. The
superior-subordinate relationship is clearly defined in organizing.
3. Effective Administration: It provides a clear description of jobs and
related duties which helps to avoid confusion and duplication. Clarity in
working relationships enables proper execution of work which results in
effective administration.
4. Optimum utilization of resources: The proper assignment of jobs avoids
overlapping/duplication of work. This helps in preventing confusion and
minimizing the wastage of resources and efforts.
5. Adoption to Change: A properly designed organizational structure is
flexible which facilitates adjustment to changes in workload caused by
change in external environment related to technology, products, resources
and markets.
6. Development of Personnel: Sound organization encourages initiative
and relative thinking on part of the employees. When managers delegate
their authority, it reduces their workload so they can focus on more

important issues related to growth & innovation. This also develops the
subordinates’ ability and helps him to realize his full potential.
7. Expansion and growth: It helps in growth & diversification of an
enterprise by adding more job positions, departments, product lines, new
geographical territories etc.