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Commerce · Ch 10 — Organising

Steps in the Process of Organising

10.2

Steps in the Process of Organising

The process of organising is not a single action but a sequence of logical steps. The textbook uses a simple example to show why this sequence matters: imagine twelve students told to unload books, stock shelves, and dispose of waste. If each student works in their own way, the result is chaos. But if one student supervises, groups the others, divides the work, assigns quotas, and sets up reporting relationships, the job gets done faster and better. That contrast — confusion versus coordinated effort — is the entire reason the steps exist.

The process unfolds in four distinct steps.

1. Identification and division of work

This is the first step. The total work to be done is identified based on the plans already made. It is then divided into smaller, manageable activities. The purpose is twofold: to avoid duplication of effort and to share the burden of work among employees. No single person does everything; instead, the whole task is broken into parts that can be handled separately.

2. Departmentalisation

Once the work is divided into small activities, those activities that are similar in nature are grouped together. This grouping is called departmentalisation. The benefit is that it facilitates specialisation — employees working on similar tasks become more skilled at them. Departments can be created using different bases. Two commonly used bases mentioned in the textbook are:

  • Territory — for example, north, south, west zones.
  • Products — for example, appliances, clothes, cosmetics.

The choice of basis depends on the nature of the organisation and its objectives.

3. Assignment of duties

After departments are formed, each department is placed under the charge of an individual. Jobs are then allocated to the members of each department. The key principle here is that the allocation must match the nature of the job with the ability of the individual. Work should be assigned to those best fitted to perform it well. This step is essential for effective performance — a mismatch between job and skill leads to inefficiency.

4. Establishing authority and reporting relationships

Merely allocating work is not enough. Every individual must know from whom they take orders and to whom they are accountable. This step creates clear relationships up and down the hierarchy. The textbook states that such clarity helps create a hierarchical structure and aids coordination among various departments. Without it, an employee might receive conflicting instructions or have no one to report to, causing confusion. …