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Once the necessary plans and objectives are formulated, the organizational process can be started. Every type of activity has to be grouped into workable units of similar activities. All the work has to be classified, employees identified and an arrangement made for the assignment of work to the employees. Terry states that organization is the establishment of effective behavioral relationships among selected work places so that their groups can work together efficiently.

The logical steps in the process ·of organization are as follows:

  • Determine and formulate objectives, strategies, plans and policies.
  • Determine the activities involved to accomplish the objectives.
  • Grouping of similar activities into tasks, sections and departments.
  • Define responsibility and accountability for every person.
  • Delegate the required authority to perform the task.
  • Integration of activities through authority relationships and communication networks.
  • Provide adequate physical facilities to perform the tasks effectively.