The most important function of management is organization. Organization denotes a group of people who are co-operating under the direction of leadership for the accomplishment of a common end. It is a group of persons created intentionally to perform different types of activities to achieve the desired end of the enterprise. The organization process involves the following steps:

(a) The first step in building organizational structure is to establish the objective of the enterprise as a whole.

(b) The next step of the manager is to identify and enumerate the total activities involved for attainment of the objective.

(c) The next step is to group various activities and assign it to respective jobs.


(d) After assignment of activities to various jobs, next step is to allot properly qualified personnel to these jobs.

(e) To get the work done there should be proper delegation of authority.

(f) Bringing of co-ordination and integration of various activities for the attainment of the single and unified objective.