Organization is the backbone of the management; it helps the enterprise in its progress and prosperity. Today, organization has become more important than ever before because of the many advantages it offers to the modern-day complex society.

l.          Encourages specialization. Specialization is the direct result of organization, which helps in increasing the productivity and efficiency.

2.         Eliminates the problem of duplicating and overlapping. Proper and clear division and delegation of authority and responsibility avoid duplication and overlapping.

3.         Brings order and cohesiveness. Determining a clear line of authority will bring in order in the concern. Everything in its place and a place for everything can be introduced by organizing the concern.

4.         Improves administration. Administrative policies and day-to-day operation of the enterprise wil1 become effective and functional with proper organization.

5.         Stimulates creative thinking. A good organization provides maximum opportunity for creative people to develop their ideas for the benefit of the concern. It also provides the ways and means of doing things in a better way.

6.         Facilitates effective communication. With the clear definition of authority, an organization can develop the most efficient channels of communication.

7.         Helps in providing a balanced emphasis on various activities. Organization, by clearly defining the importance of activities through divisions, departmentation, etc. gives more priority for urgent and important problems. Routine problems can be decided at the lower or middle level. Managing change, managing crisis, managing credibility become easy through proper organization.

8.         Helps to build up and expand the enterprise. An organized enterprise can build up a team of executives and workers who can develop much faster. Organized team effort helps in expanding the firm. Today, every organization is expanding the firm. Today, every organization is expanding smoothly into unimaginably large-sized units because of organized effort.

9.         Helps in the smooth delegation of authority. When executives delegate authority downwards, that can get the things done smoothly. It also helps in fixing responsibility for task. A good organization clearly defines the authority, responsibility and relationship.