How do you organize your Library in Itunes?

I just have a bunch fo songs in there. I would like to organize them (e.g. by genre). I see that I can tranfer these files to playlists. However, I see no way to synch the playlists witht the Ipod. If I can't do that, I would like to know some other way of organizing the library, even if it is as simple as creating folders in it (which is a pretty good idea come to think about it). thanks for your assistance.How do you organize your Library in Itunes?
Click Music in Itunes. And then click the Genre on the right bar. If you dont see genre, right click the bar and then click genre.