Q.What are the steps in the process of organising?
Concept understanding — Organising Process Steps
Organising Process Steps: From Chaos to Coordination
Think about the last time you helped plan a family gathering. First, someone had to decide what needed to happen — food, seating, entertainment. Then came the question of who would bring the drinks, who would arrange the chairs, and when everything should be ready. Without this sequence, the event would descend into confusion. That sequence is exactly what the organising process is about, but applied to a business or any formal group.
In management, organising is the function that arranges resources — people, materials, money — into a structured pattern so that the organisation's goals can be achieved efficiently. The process of organising is not a single step; it is a series of logical steps that build upon each other. NCERT textbooks lay out these steps clearly, and understanding them in order is crucial for any exam.
The Five Steps of the Organising Process
1. Identification and Division of Work
The very first step is to look at the total work that needs to be done and break it down into smaller, manageable parts. This is called division of work. For example, if a company wants to manufacture furniture, the total work includes designing, cutting wood, assembling, painting, quality checking, and selling. Each of these becomes a separate task.
Why does this matter? No single person can do everything. Dividing work allows specialisation — each person becomes good at one thing, which increases efficiency and speed. This step answers the question: What needs to be done?
2. Departmentalisation
Once work is divided into tasks, similar tasks are grouped together into departments or units. This grouping is called departmentalisation. Common bases for grouping include:
- Function — marketing, finance, production, human resources
- Product — a separate department for each product line (e.g., soaps, detergents, cosmetics)
- Territory — North India division, South India division
- Customer — retail customers, wholesale customers, government clients
The purpose is to coordinate related activities under one head. This step answers: How should tasks be grouped?
In small organisations, departmentalisation may be informal. But as an organisation grows, formal departments become essential to avoid chaos. NCERT emphasises that the choice of departmentalisation depends on the nature of the business and its size.
3. Assignment of Duties
Now that departments exist, each department's work must be assigned to specific individuals. This step involves matching jobs with people. The manager decides who will do what, based on each person's skills, experience, and availability.
For instance, in the production department, one worker may be assigned to cutting wood, another to assembling, and a third to painting. Each person gets a clear set of duties. This step answers: Who will do what?
Assignment of duties must be clear and unambiguous. If two people are told to do the same task without coordination, confusion and conflict arise. NCERT warns that overlapping duties are a common source of inefficiency.
4. Establishing Reporting Relationships
This is the step that creates the hierarchy or chain of command. Once duties are assigned, it must be clear who reports to whom. Every person (except the top manager) has a superior, and every manager (except the lowest-level worker) has subordinates.
This step creates the organisational structure — a pyramid where authority flows downward and accountability flows upward. For example, a worker reports to a supervisor, the supervisor reports to the department head, and the department head reports to the general manager. This step answers: Who is answerable to whom?
Without clear reporting relationships, instructions get lost, and no one knows who has the authority to make decisions.
5. Coordinating Activities
The final step is to ensure that all the divided and assigned work actually fits together smoothly. Coordination is not a one-time action; it is an ongoing effort to harmonise the efforts of different departments and individuals.
For example, the production department must coordinate with the sales department — if sales promises delivery by a certain date, production must have the goods ready. Similarly, finance must coordinate with all departments to ensure budgets are followed. This step answers: How do we ensure everything works together?
NCERT treats coordination as the essence of management, but in the organising process specifically, it is the step that ties all previous steps together. Without coordination, even the best division of work and departmentalisation will fail.
Why This Sequence Matters
The steps are not arbitrary. Each step logically leads to the next. You cannot assign duties before you know what the duties are (step 1). You cannot assign duties to a department that hasn't been formed yet (step 2). You cannot establish reporting relationships without knowing who is doing what (step 3). And coordination is meaningless if the structure isn't already in place.
In exams, you may be asked to list these steps in order, or to explain what happens if one step is skipped. The key is to remember that organising is about creating order out of potential chaos — and these five steps are the blueprint for doing that.
A Quick Memory Aid
Think of the acronym D-D-A-R-C:
- D — Division of work
- D — Departmentalisation
- A — Assignment of duties
- R — Reporting relationships
- C — Coordination
Or simply remember the sequence as: Break it down, group it, give it to someone, tell them who's in charge, and make sure it all fits.
The process of organising follows a logical sequence of four steps, as laid down in the NCERT Class 12 Business Studies chapter. It begins with identification and division of work — the total work is identified and divided into manageable activities in line with the plans, so that duplication is avoided and the burden of work is shared.
Next comes departmentalisation, in which activities that are similar in nature are grouped together into departments (for example, on the basis of territory or products) to facilitate specialisation. The third step is assignment of duties — the work of each job position is defined and jobs are allocated to employees according to their skills and competencies, so that the right person does the right job. The fourth step is establishing authority and reporting relationships, where each individual is told whom they take orders from and to whom they are accountable, creating a clear hierarchical structure.
The steps in the process of organising are: (1) identification and division of work, (2) departmentalisation, (3) assignment of duties, and (4) establishing authority and reporting relationships.
Organising follows a sequence of four logical steps — identifying and dividing the work, departmentalisation, assignment of duties, and establishing authority and reporting relationships — that together create a clear structure for achieving organisational goals.
The process of organising is not a single act but a deliberate, step-by-step method that managers follow to build a workable structure. Think of it as the blueprint for how a company will function — without it, tasks overlap, responsibilities blur and confusion reigns. The NCERT Class 12 Business Studies chapter lays out four steps in a clear, logical order, each one flowing naturally into the next.
It begins with identification and division of work. The work that has to be done is identified and divided into manageable activities in accordance with previously determined plans. For example, if the goal is to manufacture and sell furniture, the work is divided into activities like purchasing raw materials, production, quality checking, marketing and accounting. This division prevents duplication of effort and shares the burden of work among employees.
Once the work is divided, the next step is departmentalisation — grouping activities that are similar in nature into departments or units. Such grouping facilitates specialisation. The chapter notes that departments can be created using several criteria, the most popular being territory (north, south, west, etc.) and products (appliances, clothes, cosmetics, etc.).
Departmentalisation is what makes specialisation possible: once similar jobs sit together under one head, the people in that department become experts in their narrow area of work.
After grouping, the third step is assignment of duties. The work of different job positions is defined and jobs are allocated to the members of each department according to their skills and competencies. It is essential for effective performance that a proper match is made between the nature of a job and the ability of an individual — the work must be assigned to those who are best fitted to perform it well.
The fourth step is establishing authority and reporting relationships. Merely allocating work is not enough; each individual must also know who he has to take orders from and to whom he is accountable. The establishment of such clear relationships creates a hierarchical structure and helps in coordination among the various departments.
These four steps are the complete process as given in the CBSE/NCERT textbook. Note that establishing authority and reporting relationships is the step that transforms a collection of individuals into a coordinated organisation — it gives the structure its backbone.
The process of organising involves four steps: (1) identification and division of work, (2) departmentalisation, (3) assignment of duties, and (4) establishing authority and reporting relationships — together creating a structure where everyone knows their role and to whom they answer.
Showing the 12 most recent of 33 on this concept.
- CBSE 2026Set 66/1/11 markMCQQ.Organising is the process that initiates implementation of plans by clarifying jobs and working relationships and effectively deploying resources for attainment of identified and desired results. Organising process thus involves a series of steps that need to be taken in order to achieve the desired goal. Arrange the steps of the process of organizing in the correct order : (A) Identification and Division of work, Assignment of duties, Departmentalisation, Establishing authority and reporting relationships (B) Identification and Division of work, Assignment of duties, Establishing authority and reporting relationships, Departmentalisation (C) Departmentalisation, Identification and Division of work, Establishing authority and reporting relationships, Assignment of duties (D) Identification and Division of work, Departmentalisation, Assignment of duties, Establishing authority and reporting relationship
›Reveal solutionSolution
The correct sequence of organising steps is: Identification and Division of work → Departmentalisation → Assignment of duties → Establishing authority and reporting relationships.
Organising is the bridge between planning and execution. Once objectives are set, someone has to translate them into a working structure—deciding who does what, how tasks cluster together, and who reports to whom. The process unfolds in a logical sequence, each step building on the previous one.
The first step is Identification and Division of work. Before anything else, management must identify all the activities necessary to achieve the organisation's goals and then divide this total work into manageable chunks. This division is guided by the principle that no individual can perform all tasks; work must be broken down according to specialisation, skill requirements, and logical groupings. For instance, a manufacturing firm identifies production, marketing, finance, and human resource activities as distinct areas of work.
Once the work is identified and divided, the next step is Departmentalisation. Here, similar or related activities are grouped together into departments or divisions. This grouping can be done on various bases—by function (sales, production), by product (electronics division, textiles division), by territory (northern region, southern region), or by customer type (retail clients, corporate clients). Departmentalisation creates a framework within which people will work, making coordination easier and accountability clearer.
With departments in place, the organisation moves to Assignment of duties. Now that we know which activities belong to which department, specific jobs are allocated to specific individuals based on their qualifications, skills, and experience. Each person is given a clear set of responsibilities. A sales executive is assigned client acquisition, a production supervisor is given shop-floor oversight, and so on. This step ensures that every task has an owner.
The final step is Establishing authority and reporting relationships. Once duties are assigned, the organisation must define who has the authority to make decisions, who supervises whom, and who reports to whom. This creates the chain of command—the formal lines of authority that run from top management down to the lowest level. It clarifies accountability and ensures that coordination happens smoothly. Without this step, even well-assigned duties can lead to confusion and conflict.
ImportantThe sequence is cumulative: you cannot assign duties before you know which departments exist, and you cannot establish reporting relationships before you know who is doing what.
Looking at the options, only option D follows this natural, logical flow: first identify and divide the work, then group it into departments, then assign specific duties, and finally establish the authority structure that ties it all together.
✓Final answerThe correct order of organising steps is (D) Identification and Division of work → Departmentalisation → Assignment of duties → Establishing authority and reporting relationships, as each step logically depends on the completion of the one before it.
- CBSE 2026Set 66/3/11 markMCQQ.Match the step of the process of organising given in Column-I with its explanation given in Column-II : Column-I 1. Departmentalisation 2. Establishing authority and reporting relationships 3. Identification and division of work 4. Assignment of duties Column-II(i) Each individual is told who he has to take orders from and to whom he is accountable(ii) The work is divided into manageable activities so that duplication can be avoided and burden of work can be shared among the employees(iii) Work of different job positions is defined and work allocated to various employees in accordance with their skills and competencies(iv) Activities of a similar nature are grouped together, which facilitates specialization Choose the correct option from the following : (A) 1-(i), 2-(ii), 3-(iii), 4-(iv) (B) 1-(iv), 2-(i), 3-(ii), 4-(iii) (C) 1-(iv), 2-(i), 3-(iii), 4-(ii) (D) 1-(ii), 2-(iii), 3-(i), 4-(iv)
›Reveal solutionSolution
The correct sequence matches departmentalisation with grouping similar activities (iv), establishing authority with defining reporting lines (i), identification and division of work with breaking work into manageable parts (ii), and assignment of duties with allocating work based on skills (iii) — making option (B) correct.
Organising is the management function that transforms plans into action by creating a structure of roles and relationships. Managers build this structure through a systematic process, moving from the broad task of dividing work to the specific task of telling each person exactly what they must do and to whom they report.
The process begins with identification and division of work, the foundational step where managers look at the total work to be done and break it into distinct activities. This prevents duplication — imagine if two people unknowingly worked on the same report — and ensures the workload is shared sensibly across the organisation. The explanation in (ii) captures this perfectly: work is divided into manageable activities to avoid duplication and share the burden among employees.
Once work is divided, the next logical step is departmentalisation. Here, activities of a similar nature are brought together into departments or units. If you have identified tasks related to selling, advertising, and customer service, you group them into a Marketing Department; tasks involving hiring, training, and payroll go into Human Resources. This grouping facilitates specialisation because people in each department develop deep expertise in their area. Statement (iv) describes exactly this: activities of a similar nature are grouped together to enable specialisation.
After departments are formed, the organisation needs a skeleton of authority — who reports to whom, who can give orders, who is accountable for results. This is establishing authority and reporting relationships. Every individual must know their place in the hierarchy: a sales executive reports to the sales manager, who reports to the marketing head, and so on. This clarity prevents confusion and ensures smooth coordination. Explanation (i) matches this step: each individual is told who he has to take orders from and to whom he is accountable.
NoteAuthority flows downward (the power to command), while accountability flows upward (the obligation to answer for results). Establishing these relationships creates the formal chain of command.
The final step is assignment of duties, where the organisation moves from structure to individual roles. Each job position is defined in detail — what tasks, what responsibilities, what standards — and then work is allocated to specific employees based on their skills and competencies. You wouldn't assign accounting work to someone trained in engineering, nor creative design to someone whose strength is data analysis. Statement (iii) describes this: work of different job positions is defined and allocated according to skills and competencies.
ImportantThe sequence is deliberate: you cannot assign duties (step 4) before you know what departments exist (step 1), and you cannot establish reporting relationships (step 2) before you have divided the work (step 3). Each step builds on the previous one.
Matching the columns:
- 1. Departmentalisation → (iv) grouping similar activities for specialisation
- 2. Establishing authority and reporting relationships → (i) defining who reports to whom
- 3. Identification and division of work → (ii) dividing work to avoid duplication and share burden
- 4. Assignment of duties → (iii) allocating work based on skills and competencies
✓Final answerThe correct match is 1-(iv), 2-(i), 3-(ii), 4-(iii), making option (B) the right answer. This sequence reflects the logical flow of organising: divide the work, group similar tasks, establish who commands whom, and finally assign specific duties to individuals based on their abilities.
- CBSE 2026Set MARCH1 markQ.What is Organisation?
›Reveal solutionSolution
Organisation = a structured framework of duties and authority relations to achieve goals.
In this GSEB Class-12 Commerce organising question, organisation is the management function of identifying and grouping activities, assigning duties, delegating authority and creating coordination among people so that the enterprise works as a unified whole toward common objectives.
✓Final answerOrganisation is the arrangement of activities, people and authority-responsibility relationships that enables goals to be achieved efficiently.
- CBSE 2026Set MARCH1 markMCQQ.The first step in organising process is ____________.(a) Departmentalisation(b) Assignment of duties(c) Identification and division of work(d) Establishing reporting relationships
›Reveal solutionSolution
The correct option is (c) Identification and division of work. It is the first step, followed by departmentalisation, assignment of duties and establishing reporting relationships.
✓Final answer(c) Identification and division of work.
The organising process has four steps in this order: (1) Identification and division of work — the total work is divided into smaller manageable activities to avoid duplication; (2) Departmentalisation — similar activities are grouped into departments; (3) Assignment of duties — jobs are allotted to suitable people; (4) Establishing reporting relationships — authority-responsibility links are fixed. Since the work must be identified and divided before it can be grouped or assigned, option (c) is the correct first step, as per the Karnataka 2nd PUC Business Studies syllabus.
- CBSE 2026Set ANNUAL1 markMCQQ.Assertion (A): Organisation is unnecessary. Reason (R) : Organisation gives birth to corruption.(a) Both A and R are correct and R is the correct explanation of A.(b) Both A and R are correct but R is not the correct explanation of A.(c) A is correct but R is incorrect.(d) Both A and R are incorrect.(a) Both A and R are correct and R is the correct explanation of A.(b) Both A and R are correct but R is not the correct explanation of A.(c) A is correct but R is incorrect.(d) Both A and R are incorrect.
›Reveal solutionSolution
Both the Assertion and the Reason are false, so the correct option is "Both A and R are incorrect."
Assertion A says "Organisation is unnecessary" — this is false. Organising is one of the essential functions of management: it identifies and groups activities, assigns them to individuals/departments, and establishes authority-responsibility relationships. Without organising, there would be duplication of work, unclear reporting lines, and chaos — large-scale, coordinated business activity would be impossible.
Reason R says "Organisation gives birth to corruption" — this is also false. Sound organisation structure, with clearly defined authority, responsibility and accountability at each level, is actually one of the main safeguards AGAINST corruption and malpractice, because it makes it easy to trace who is responsible for a decision or lapse. Corruption is more a failure of ethics/control within an organisation, not a necessary consequence of having one.
Since both the Assertion and the Reason are factually wrong, the correct option is that both are incorrect.
✓Final answerBoth A and R are incorrect — organisation is necessary for any sizeable enterprise, and a well-designed organisation structure helps prevent, rather than cause, corruption.
- CBSE 2026Set ANNUAL1 markQ.Which step in the process of organising deals with grouping similar activities together which helps employee become specialised ?
›Reveal solutionSolution
The step is Departmentalisation.
The process of organising has the following steps:
- Identification and division of work.
- Departmentalisation — grouping similar or related activities into units/departments (e.g., production, sales, finance), which lets employees in each department specialise in a narrow set of activities, improving efficiency and making coordination and performance evaluation easier.
- Assignment of duties to specific individuals/positions.
- Establishing reporting relationships, so each person knows whom to report to and who reports to them.
Grouping activities by similarity so that "employees become specialised" is exactly the purpose of Departmentalisation.
✓Final answerDepartmentalisation is the correct answer.
- CBSE 2025Set 66/1/11 markMCQQ.Organising provides a clear description of jobs and related duties. This helps to avoid confusion and duplication. The point of importance of organizing described above is : (A) Adaptation to change (B) Effective administration (C) Development of personnel (D) Expansion and growth
›Reveal solutionSolution
A clear description of jobs and duties that prevents confusion and duplication points to Effective administration — the ability to run operations smoothly through well-defined roles and responsibilities.
When an organization lays out exactly what each job entails and what duties belong to whom, it creates a framework where everyone knows their territory. Think of it as drawing clear boundary lines on a map: each person understands where their responsibilities begin and end, and there's no ambiguity about who handles what task.
This clarity serves a very specific purpose in management. Confusion arises when two people think the same task is the other's responsibility, or worse, when both attempt the same work simultaneously. Duplication wastes time, effort, and resources — imagine two departments independently preparing the same report, or two managers issuing conflicting instructions to the same team. A well-organized structure with defined job descriptions eliminates these inefficiencies.
The term that captures this benefit is effective administration. Administration, at its core, is about the smooth execution of plans and policies. When roles are clear, instructions flow through proper channels, accountability is established, and work proceeds without the friction of overlapping duties or gaps in responsibility. Managers can coordinate activities more easily because they know exactly which levers to pull and who is responsible for each outcome.
NoteThe other options address different benefits of organizing: adaptation to change refers to flexibility in structure, development of personnel relates to growth opportunities and specialization, and expansion and growth concerns the ability to scale operations. None of these directly address the elimination of confusion and duplication.
The question zeroes in on a very practical, day-to-day advantage. Clear job descriptions and duty allocation create an administrative machinery that runs without constant clarification, without stepping on toes, and without the chaos of undefined responsibilities. This is the essence of effective administration — the organization functions as it should, with minimal friction and maximum clarity.
✓Final answerThe point described — avoiding confusion and duplication through clear job and duty descriptions — represents Effective administration (Option B), as it enables smooth, coordinated execution of organizational activities.
- CBSE 2025Set 66/2/11 markMCQQ.'The process of organizing allows a business enterprise to accommodate changes in the business environment. It allows the organization structure to be suitably modified to pave the way for a smooth transition.' The point of importance of organizing function of management highlighted in the above lines is : (A) Benefits of specialization (B) Clarity in working relationships (C) Optimum utilization of resources (D) Adaptation to change
›Reveal solutionSolution
Organizing creates a flexible structure that can be modified when the business environment shifts, enabling smooth transitions during change. The answer is (D) Adaptation to change.
The question describes organizing as a function that helps a business accommodate changes and allows the structure to be modified for a smooth transition. This points directly to the dynamic, responsive nature of organizing rather than its static benefits.
Let's see why each option does or doesn't fit what the passage emphasizes.
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Understanding what the passage highlights
The key phrases are "accommodate changes in the business environment" and "suitably modified to pave the way for a smooth transition." Both speak to the organization's ability to respond and adjust when external or internal conditions shift — new technology, market disruptions, regulatory changes, or growth phases.
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Evaluating option (A): Benefits of specialization
Specialization means dividing work so that individuals or departments focus on specific tasks, building expertise and efficiency. While organizing does enable specialization by defining roles clearly, the passage says nothing about expertise, efficiency gains, or task division. It talks about change and modification, not about becoming better at fixed tasks.
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Evaluating option (B): Clarity in working relationships
Clarity in working relationships refers to well-defined reporting lines, authority, and responsibility — who reports to whom, who decides what. Organizing certainly provides this, but again, the passage doesn't mention reporting structures, authority, or reducing confusion. It focuses on the ability to modify the structure, not on making the current structure clear.
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Evaluating option (C): Optimum utilization of resources
Optimum utilization means deploying human, financial, and physical resources efficiently to avoid waste and duplication. Organizing does help allocate resources better, but the passage doesn't discuss efficiency, resource allocation, or waste reduction. The emphasis is on flexibility and transition, not on getting the most out of what you have right now.
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Evaluating option (D): Adaptation to change
Adaptation to change is the organization's capacity to adjust its structure, roles, and processes when the environment demands it. The passage explicitly says organizing "allows a business enterprise to accommodate changes" and that the structure can be "suitably modified" for a "smooth transition." This is a direct match: organizing is being praised for making the organization adaptable and responsive, not rigid.
TipWhen a question quotes a passage and asks which point of importance is highlighted, look for the dominant theme in the language used — here, "accommodate changes," "modified," and "smooth transition" all signal flexibility and responsiveness, which is adaptation to change.
✓Final answerThe correct option is (D) Adaptation to change.
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- CBSE 2025Set ANNUAL1 markMCQQ.The organisational steps are (A) 2 (B) 4 (C) 6 (D) 8
›Reveal solutionSolution
The organising process has 4 steps — option (B).
In Business Studies, organising is treated as a process made up of four clear steps:
- Identification and division of work — the total work is divided into manageable activities to avoid duplication.
- Departmentalisation — similar activities are grouped together into departments or units.
- Assignment of duties — each department's work is allotted to employees according to their competence.
- Establishing reporting relationships — the superior–subordinate links are fixed so everyone knows whom to report to and who reports to them.
These four steps convert a plan into a working structure, which is why the answer is four. This is a standard BSEB Inter (Bihar Class 12) Business Studies fact, consistent with the NCERT/CBSE treatment of the Organising chapter.
✓Final answer(B) 4 — the four steps are division of work, departmentalisation, assignment of duties and establishing reporting relationships.
- CBSE 2025Set ANNUAL1 markMCQQ.The first step of organising process is - A) Departmentalisation B) Identification and division of work C) Reporting D) Assignment of duties
›Reveal solutionSolution
The organising process starts with identification and division of work.
The organising process has a definite sequence: (1) identification and division of work, (2) departmentalisation, (3) assignment of duties, and (4) establishing reporting relationships. The very first step is to identify the total work to be done and split it into smaller, manageable activities so duties can later be assigned.
Departmentalisation, assignment of duties and reporting all come after this first step.
✓Final answerB) Identification and division of work
- CBSE 2025Set ANNUAL1 markQ.Mention the meaning of 'organisation'.
›Reveal solutionSolution
Organisation is the structure of grouped activities, assigned duties and authority relationships set up to achieve goals.
'Organisation' refers to the framework of relationships that results from organising. It involves identifying and grouping the activities to be performed, assigning duties to individuals, and establishing authority-responsibility relationships among them, so that people can work together systematically towards common objectives.
✓Final answerOrganisation is the deliberate arrangement of grouped activities, assigned duties and clear authority relationships to accomplish the goals of the enterprise.
- CBSE 2025Set ANNUAL1 markMCQQ.The process of dividing the work into manageable activities and grouping them based on their nature is ..................(a) Departmentalisation(b) Identification and division of work(c) Assignment of duties(d) Establishing authority and responsibility relationship
›Reveal solutionSolution
Dividing work into manageable activities and then grouping those activities by their nature is called Departmentalisation.
The organising process has four broad steps:
- Identification and division of work — the total work is broken down into smaller, manageable activities so no single individual is overburdened and duties can be clearly assigned.
- Departmentalisation — once work is divided into activities, similar and related activities are grouped together on the basis of their nature (e.g., all selling-related activities form the marketing department, all production activities form the production department). This groups work into logical units for better coordination and specialised handling.
- Assignment of duties — each individual/group is given a specific task matching their capability.
- Establishing reporting relationships — authority and responsibility relationships are defined so everyone knows whom to report to.
Because the question specifically describes both "dividing work into manageable activities" AND "grouping them based on their nature," it is describing the departmentalisation step of organising, which groups the divided activities into departments.
✓Final answerDepartmentalisation.
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