Steps involved in organizing as a function of management:
1. Identification of activities: All the activities which have to be performed have to be identified first.
For example, preparation of accounts, making sales, record keeping, quality’ control, inventory control, etc. All these activities have to be grouped and classified into units.
2. Departmentally organizing the activities: In this step, the manager tries to combine and group similar and related activities into units or departments.
3. Classifying the authority: Once the departments are made, the manager likes to classify the powers and its extent to the managers. This activity of giving a rank in order to the managerial positions is called hierarchy. This helps in achieving efficiency in the running of a concern. This helps in avoiding wastage of time, money, effort, in avoidance of duplication or overlapping of efforts.
4. Co-ordination between authority and responsibility: Relationships are established among various groups to enable smooth interaction toward the achievement of the organizational goal. Each individual is made aware of his authority and he/she knows who they have to take orders from and to whom they are accountable and to whom they have to report.