The organisation provides a framework where duties are identified, define tasks are allotted to suitable persons, and interrelationships of personal are made certain and the joint efforts made by different persons become more productive, effective and economical if a well-knit organization is provided by the management and the purpose of establishing an organization, this is to enable its personnel to work more effectively as a unit and no wonder organisation serves as the backbone of management and it is very foundation of most of the steps of operating management.

Organising can be defined as “Organisation is a harmonious adjustment of specialised parts or the accomplishment of common purpose or purposes” by Haney. The organisation is the process of identifying and grouping the work performed, defining and delegating responsibility and authority and establishing a relationship to enable people to work together in accomplishing common objectives.


1. Division of work

The setting of an organisation involves division of the total work into various activities and functions and assigning the tasks to different persons according to their skill, ability and experience.

2. Chain of command

The superior-subordinate relationship established in an organisation is based on the authority which flows from the higher levels of management to the immediately lower of management and thereby forming a hierarchical chain and is known as the chain of command.

3. Plurality of Persons

The organisation is a group of many persons who assemble to fulfil a common purpose and a single individual cannot create an organisation.

4. Common Objectives

There are various parts of an organisation with different functions to perform but all move in the direction of achieving a general objective.

5. Group of people

An organisation comes into existence when a group of people combine their efforts for some common purpose and willingly contribute towards their common endeavour.

6. Common Purpose

Every organisation comes into existence based on goals of the enterprise which are separate from the personal goals of the people employed and it is the common purpose of the organisation which provides the basis of cooperation among its members.

7. Vertical and Horizontal Relationships

An Organisation creates cooperative relationships between different departments and divisions as well as between superiors and subordinates. The duties and responsibility of superiors and subordinates in each department or division are also unified to serve the purpose of their joint efforts.

8. Organising is a universal process

Organising is needed both in business and also in non-business organisations and nor only this, an organisation will be needed where two or more than two people work jointly. Therefore, an organisation has the quality of universality.

9. Dynamics of organisation

Besides the structural relationships among people which are based on their activities and functions, there exists an organising interaction based on sentiments, attitudes and behaviour of individuals and groups and they are subject to change from time to time.

According to Chester Bernard, Communication, Cooperation and Spirit of service and common objectives are the main elements of the organisation.