5 important Process of a sound Organisation (Managerial function)

The process of organisation may be described as the managerial function. It involves a rational division of work into groups of activities and tying together the position representing grouping of activities so as to achieve a rational, well coordinated; and orderly structure for the accomplishment of goals. Important- steps involved in this process include:

1. Determination of objectives:

This is the first step in building up an organisation. This process involves in deciding as to why the proposed organisation is to be set up and what will be its nature of work to be accomplished through the organisation.


2. Division of activities:

Then the total work of the organisation is sub-divided into essential activities, e.g. the work of an industrial concern may be divided into the major functions like purchasing, marketing, production, finance, personnel, advertising and publicity, etc.

3. Grouping of activities:

The activities that similarly related are grouped into divisions and departments, and the departmental activities are further sub-divided into small groups. Functions like sales, production, finance, etc. are made the basis of geographical areas, types of customers, equipments used, processes adopted, etc.


4. Job assignments:

In this step, specific job assignments are made to different subordinates in accordance with their specialization and professional experience for ensuring on certainty of job performance.

5. Delegation of authority:

Delegation is the entrustment of responsibility and authority to another and the creation of accountability for performance.