Under organizing, the authority and responsibility of each individual is decided. It is also decided who will report to whom.
- Divisional heads, sub-divisional heads and skill based heads are finalized and then all the heads are given power and responsibilities so that they can perform their work well.
- In addition to this, the post of each person is also clarified. His role, authority and responsibility in the organization is also decided
- Over and above all these, the power and responsibilities are divided and balanced among employees of various posts.
- Doing so gives every employee a clear picture of his roles and the contribution – he has to make to achieve business goals. Moreover, this also removes any confusion regarding every individual’s role in the organization.
- Hence, distribution of authority and responsibility is the base of an organization.