BASIC CONCEPTS OF ORGANIZATION

1. Steps in Organizing Business Organization

 Outlining the objectives
 Identification and enumeration of activities
 Assigning the duties and responsibilities
 Delegating the authority
 Establishing authority relationship
2. Types of Organization
 Formal Organization
 Informal Organization
3. Principles of Organization
 Principles of Objective
 Principles of coordination
 Principles of efficiency
 Principles of Unity of Direction
 Principles of Unity of Command
 Principles of Specialization
 Scalar Principle
 Short Chain of Command
 Authority and Responsibility
 Principle of Delegation
 Principle of Balance
 Principle of Change
4. Departmentation
 Is dividing the large and monolithic functional organization into smaller, flexible
administrative units