What are the different elements or steps of organizing?

In order to complete the organizing function of management, following steps are taken:

(1) Identification and Division of Work:

The first step of organizing is the identification and division of work. At this step, the total work is divided into various activities.

For example, the various activities of a mobile phone manufacturing company can be like this (i) purchase of raw material, (ii) purchase of manufactured parts, (iii) Production, (iv) stocking of goods, (v) research, (vi) advertisement, (vii) sales, (viii) financial arrangement, (ix) maintenance of accounts, (x) correspondence, (xi) arrangement of employees, etc.

(2) Departmentalization:

The departmentalization of activities starts once the various activities have been designed to achieve the objectives of the company. The activities of the same nature are grouped together and assigned to a particular department (It is known as grouping.) e.g., purchase of raw material, purchase of manufactured parts, etc. are given to the purchase department.

And production, stocking the goods, research activities is given to the production department. Similarly, advertisement and sales can be given to the marketing department and the financial arrangements, maintenance of accounts and correspondence can be put in the charge of finance department.

The grouping of activities and departmentalization has been shown in the following diagram where the objective of the company is to produce mobile phones.

(i) If the said mobile phone producing company has its own textile business also, first of all two divisions of the company will be created, e.g., Mobile Phone Division and Textile Division. Then in every division the activities will be determined and later on the work of grouping activities and departmentalization will be completed.

(ii) The above process undertaken in respect of the manufacturing for single product is called functional and for more products it is called divisional departmentalization.

(3) Assignment of Duties:

At this stage, the responsibility of each individual or post is decided, e.g., the purchase manager will be given the task of purchasing goods, the sales manager will be given the work of sale of goods, the advertising manager will be given the work of advertisement and in the same way the finance manager will be given the responsibility of making financial arrangements.

While assigning these duties, it is important to match the nature of the work and the capabilities of the person to whom the work is given.

(4) Establishing Reporting Relations:

When two or more than two persons work for the attainment of common goals their interrelationship must be defined very clearly. Everybody should know as to who is his superior and subordinate?

For example, the purchase manager will be the superior for all the employees of the purchase department; they will receive orders from him and will also be responsible to him.