4 important steps in an organisation

a. Determination and enumeration of activities:

The required activities are spelled out from the objectives of the enterprise. The total work, operating the managerial, is broken down into component activities that are to be performed by all personnel. The breakdown of activities is carried as far down as to determine the job of each individual.

b. Grouping and assignment of activities:


Correlated and similar activities are grouped into divisions or department first. And these divisional or departmental activities are further divided into sections and jobs.

Enterprise functions like sales, production or finance, the products manufactured and territorial regions is made on the basis of geographical areas, types of customers, equipments used, processes adopted of constituent parts of the major enterprise function.

c. Allocation of fixed duties to definite persons:

Definite job assignments are made to different subordinates for ensuring certainty of work performance. These job assignments are first made to different management members who, in turn, allocate the jobs among their subordinates.


Along with the allocation of duties of different positions, make any systematic recruitment and selection, job requirements are first ascertained by the allocation of duties to different positions, and on the basis of job descriptions, job specifications are prepared.

In accordance with job specifications which indicate qualifications and experience expected from candidates for different posts, positions are filled by selection, training and placement of individuals.

d. Delegation of authority:

Corresponding to the nature of duties, commensurate authority must be granted to the subordinates for enabling them to make adequate work performance. As authority without responsibility is a dangerous thing, so responsibility without authority is an empty vessel.