In the light of various principles of organization, the management should proceed to organize.
Various Steps involved in process of organization
Organizing consist of various steps. They are
- Defining objectives
- Enumeration of functions
- Classification of activities
- Placement of Individuals
- Assigning authority for action
1. Definition of the Objectives: A business enterprise, to be successful in its venture, must have well defined objectives. Therefore, definition of the objectives is the foremost step in the process of organization. It consists of deciding as to why the proposed organization is set up and what will be the nature of the work, or what jobs will have to be accomplished, etc.
2. Enumeration of the Functions: The next step is the division of the job into essential functions. For instance, the work of a trading concern may be divided into purchasing, financing, marketing, etc.
3. Classification of Activities: Having divided the total job into various main functions, the manager should then classify the various main functions into various sub-functions. These sub-functions should be classified and various connected functions should be grouped and,assigned to a single department. For instance, the various activities connected with production can be grouped and classified as production department.
4. Placement of Individuals: The next step is placing the right person in the right position. Each employee should be assigned with a specific part of the work and he should be made responsible for it.
5. Assignment of Authority for Action: Each staff member of the unit, to discharge his duties, must be entrusted with the necessary authority or power. Otherwise, he cannot discharge his duties effectively i.e., he cannot accomplish the job assigned to him.