(i) Identification and Division of Work: The first step of organising is the identification and division of work. At this step, the total work is divided into various activities. Every activity is placed under the supervision of a separate manager.

(ii) Departmentalisation: At this stage, the activities of the same nature are grouped together and assigned to a particular department, e.g., purchase of raw material, purchase of manufactured parts, etc. are given to the purchase department. And production, stocking the goods, research activities are given to the production department.

(iii) Assignment of Duties: At this stage, the responsibility of each individual or post is decided. While assigning these duties, it is important to match the nature of the work and the capabilities of the person to whom the work is given.

(iv) Establishing Reporting Relations: When two or more than two persons work for the attainment of common goals their inter-relationship must be defined very clearly.