Main steps involved in the process of organizing an Organisation are: 1. Identification and Division of Work 2. Departmentalisation 3. Assignment of Duties 4. Establishing Reporting Relationships!
The process of organising starts with the identification and division of work. The whole work is to be divided into manageable activities so that duplication is avoided and work can be completed as per predetermined goals.
Departmentalisation refers to the process of grouping the activities of similar nature under same departments. This facilitates specialisation and coordination in the organisation.
Following are the various ways of departmentalisation:
(i) On the basis of functions:
Numerous activities are grouped into different departments on the basis of various functions. For example, Purchase Department for purchase functions, Finance Department for financing activities etc.
(ii) On the basis of type of products manufactured:
In this case, activities are grouped into different departments on the basis of products manufactured or produced by organisation. For example, textile division, food division etc.
(iii) On the basis of territory:
Here, activities are grouped into offices/branches on the basis of four directions (or locations) North, East, West, South (NEWS) e.g., Southern Zone, Eastern Branch etc.
Once the departments have been formed; the next step is to assign the work to the employees according to their skills and competencies. In order to ensure effective performance in an organization, it is essential that a balance is created between the nature of a job and ability of the employee responsible for that job.
Establishing responsibility relationships in an organisation structure implies the allocation of authority and responsibility among employees of the enterprise in such a way that each person should know who is responsible to whom and for what.