Principles of organizing

1.       Clarity of objectives

2.       Division of work

3.       Unity of command (One boss should give command to one sub-ordinate)

4.       Unity of direction (One boss should direct to one cub-ordinate)

5.       Scalar chain (It is the chain of command, information, authorization from upward to downward)

6.       Span of control (Number of subordinate under one superior must be limited to a manageable number. It depends upon a person’s experience)

7.       Departmentation

8.       Decentralization: - Decentralization is the distribution of authority throughout the organization so that every employee get sufficient authority to perform his/her task. It is the process of pushing down decision making authority to the lower level of management.

9.       Separation of line and staff function: - Line function related with decision making. Line function plays decisive role in decision making. Staff function has no right in decision making. They play an advisory role in decision making. Departmental manager such as marketing, production, financial manager have line function and experts or specialists such as human resource manager, different experts and legal advisor have staff function.

10.   Authority and responsibility: - Authority is the right to make decision, to command others and issue order. Responsibility is the obligation to perform assigned task. There must be balance between authority and responsibility. Authority must be delegated on the basis of responsibility.

11.   Simplicity: - Organizational structure must be very simple. It must be easy to understand. What are the jobs to be performed, what the position is created, what is the relation between authority and responsibility must be very simple and easy to understand.

12.   Flexibility: - Organizational structure must be flexible. It should be rigid. It should be adaptable or adjustable with changing environment.