The purpose of organizing is to establish lines of authority. A line of appropriate authority creates order within the company. This is necessary in order to prevent chaos where everybody is trying to do everything at once. To create synergism, departments and individuals need to work together in a coordinated effort resulting in higher efficiency. In effect, three people working together can do more work than ten people working separately. Another benefit of organizing the business is more efficient communication and reduced conflict by ensuring that authority and responsibility.
