Organization in a formal sense refers to a collective group of persons engaged in pursuing specified objectives. Behavioral scientists and sociologists view Organisation as comprising human relationships in a group activity. It is referred to as the social system encompassing all formal relations. Another way of looking at Organisation is to consider it as an essential function of management. In an operational sense, Organisation can be considered as consisting of divisions of work among people and coordination of their activities towards some common objectives.
The steps involved in the process of an organization are:
(i) Determination of Objectives: Organisation is usually associated with defining objectives. Therefore, it is necessary for the management to identify the objectives before beginning any activity. It will assist the management in the selection of men and materials and with their help, it can attain its objectives. Objectives also act as the strategy for the management and the workers. They give unity of direction in the organization.
(ii) Identification and Grouping of Activities: When the members of the groups are to unite their efforts effectively there must be an appropriate division of the main activities. Each job should be properly classified and grouped. This will facilitate the group to know what is expected of them as members of the group and will help in avoiding any duplication of efforts. For example, the total activities of an individual industrial organization can be separated into major functions, like production, purchasing, marketing, and financing, and each such function is further subdivided into various jobs. The job assigned may be classified and grouped to ensure the useful achievement of the additional steps.
(iii) Allotment of Duties: Once the activities are categorized and grouped into various jobs categorizing and grouping the activities into various jobs, they should be allocated to the employees so that they can carry them out effectively. Each individual should be given a particular job to do according to his ability and made responsible for that. He should also be given sufficient authority to do the job assigned to him.
(iv) Developing Relationships: Since various individuals work in the same organization it is the duty of the management to lay down the structure of relationships in the organization. Everybody should clearly know to whom he is accountable. This will facilitate the smooth functioning of the enterprise by facilitating the delegation of responsibility and authority.
(v) Integration of Activities: Integration can be accomplished in the entire activities in the following ways:
(a) Through authority relationships – horizontally, vertically, and laterally.
(b) Through organized information or communication systems and with the help of effective coordination integration can be accomplished. This will enable the enterprise to achieve unity of objectives, teamwork, and team spirit by the integration of different activities.