1. Division of work: - Organizing depends on the way the work is divided among the workers. And, for effective management function proper and effective division making is necessary. It makes an organization to run smoothly.
2. Departmentation: - Activities having similar characteristics and purpose are grouped under one hand a department is created. Here will be a single plan for all those activities. The department is managed and headed by a manager who is known as a departmental manager.
3. Hierarchy: - A hierarchy of authority establishes a relationship among employees so that they know the boundaries of their responsibilities and reporting relationship. There must be a line of authority and hierarchy of authority in organization. Authority always flows downward from upward.
4. Coordination: - Coordination is the process of establishing linkage among activities, people, department and unit. Better coordination promotes co-operation and understanding among people, activities and department. Organization believes that only co-ordinate effort can achieve organizational goal.
5. Allocation of resources: - Organization has limited resources (money, men, material and information). And, they must be allocated rationally among different departments, divisions and units. There must be minimum wastage of resources.
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